The Tennessee Valley Authority promised Aug. 31 to treat Memphians better if it were kept as an energy provider for the next two decades, but community activists who have long battled for increased transparency and accountability say they doubt TVA will change its ways.
As Memphis Light, Gas and Water continues discussions on whether to leave TVA, sign a short-term contract or commit to a long-term contract, TVA Chief Executive Officer Jeff Lyash addressed concerns consistently brought up by activists and local leaders about the agency’s alleged mistreatment of low-income communities in the past.
Two weeks ago, Memphis Light, Gas and Water revealed its list of vendors to potentially replace an 80-year partnership with TVA before staff ultimately concluded that a 20-year contract with TVA that renews each decade would still yield the cheapest energy prices for Memphis customers. Following a 30-day public comment period, staff for the Memphis utility will issue another recommendation to the utility’s board for consideration before heading to the Memphis City Council.
At the Memphis utility’s Aug. 31 board meeting, Lyash told board members that a renewing, 20-year contract with TVA would allow it to commit to zero-carbon in 2050; diversify its energy portfolio, which includes natural gas; allow for energy burden support for low-income communities; and support an increased presence in Memphis; among other benefits. In total, TVA said a long-term contract would provide $1.3 billion in benefits over the next 10 years.
“In order to do that, it takes the long-term commitment by the provider with TVA to invest the capital in this new technology, and it takes long-term commitment by the customers to be able to do that affordably and reliably, ” he said.