Tennessee Valley Authority - Assessment of the 10-Year Business Plan: Statement of Linda M. Calbom, Director, Resources, Community, and Economic Development Accounting and Financial Management (Paperback)

OCLC Number: 44036044 Excerpt: ... cash disbursements through 2007 than would have been necessary to purchase a comparable amount of power from other utilities. The costs of complying with new environmental regulations. Known environmental costs alone total an estimated $ 500 million to $ 600 million. In addition, costs for complying with a proposed environmental regulation that is likely to be implemented before 2007 could amount to another $ 450 million to $ 500 million, some of which would be incurred before 2007. The cost of nonpower programs that, to date, have been funded primarily through appropriations. The plan assumes that TVA will continue to receive appropriations for its nonpower programs, such as flood control and navigation. While this assumption was reasonable when the plan was developed, these appropriations, which amounted to $ 70 million in fiscal year 1998, have been steadily declining since 1994 and are expected to be substantially reduced or discontinued beginning in fiscal year 2000. TVA estimates that these additional costs will total at least $ 1 billion over the remaining life of the plan and will likely be higher. We assessed 10 goals and assumptions TVA made about the future in Most Goals and developing the 10-year plan. Based on economic forecasts, comparisons Assumptions of the with TVA's results of past operations, and the opinions of industry experts, we concluded that seven of the goals and assumptions were achievable or Plan Are Achievable or reasonable, two were unachievable, and one was uncertain. The goals and Reasonable, but Debt assumptions we assessed, and our conclusions about each, are summarized Reduction and Some in table 1 and are discussed in our April 1999 report. A discussion of the two goals we found unachievable and the assumption we found uncertain Others Are Not is included below. Page 6 GAO / T-AIMD-99-295