§831m–1 Tennessee Valley Authority Least-cost Planning Program

Summary

Tennessee Valley Authority must run a least-cost planning program that compares all ways to meet electric needs, including new power plants, energy conservation and efficiency, and renewable energy. The plan must aim to give reliable service at the lowest total system cost. It must consider operational needs like diversity, reliability, dispatchability, and other risks. It must be able to verify that efficiency savings actually happen and last over time. Supply and demand options must be treated the same. “System cost” means all direct, measurable net costs over a resource’s life, such as making and moving energy, using it, handling waste, meeting environmental rules, and, for imported energy, keeping access to foreign supplies. TVA must let its distributors suggest cost‑effective efficiency, rate incentives, and renewable ideas and must help them plan and carry out those options. Help can include materials, training, one-on-one support, money, equipment loans, and studies. Before adding any major new energy resource, TVA must allow public review and comment and must describe the action in its annual report to the President and Congress. TVA is not subject to the least-cost planning rules in section 2621(d) or to any similar rule tied to TVA’s power dealings with the Southeastern Power Administration.