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Final Environmental Assessment

Rate Change Proposal

Modification of Rate Structure for Pricing of Wholesale Electricity to Distributors Within the TVA Power Service Area

TVA has proposed restructuring its wholesale electric power rates to better align them with the current cost of service and the competitive market that surrounds TVA. This final Environmental Assessment and Finding of No Significant Impact present TVA’s analysis of the effects of several different alternatives for revising the current rates. TVA’s goal is to continue to supply affordable, reliable electric power to the distributors and consumers in the region at the lowest feasible rates.

TVA considered a No Action Alternative and five action alternatives that represented the potential range of alternatives and their effects on consumer classes. Each alternative evaluated as a change in TVA policy is termed a rate change, which would reallocate cost recovery among different customer classes but not increase total TVA revenue compared with current rates.


The complete text of the final EA and FONSI is available in the following documents (PDF files, require Adobe Acrobat Reader).

Table of Contents (212 kb)

List of chapters, sections, tables, and figures.


Chapter 1 – Purpose, Need and Background for the Proposed Action(s) (300 kb)

The purpose of the proposed action; background on TVA’s role in the power supply region, TVA rate setting authority, policies and procedures, current rate structure and pricing of electricity, and relationship of proposed actions to current conditions.


Chapter 2 – Alternative Rate (Structure) Changes (168 kb)

Five action alternatives and the No Action alternative; TVA’s preferred alternative; comparison of environmental impacts of alternatives; and environmental commitments.


Chapter 3 – Affected Environment and Existing Conditions (160 kb)

The scope of environmental issues and descriptions of the existing physical and socioeconomic environment of the TVA region.


Chapter 4 – Environmental Consequences (288 kb)

Framework for the environmental impact analyses and description of impacts to resource areas.


Chapter 5 – List of Preparers (104 kb)

Preparers of various sections of the document and their contribution.


Chapter 6 – Supporting Information (112 kb)

Literature cited; glossary, acronyms and abbreviations.


Appendix A (844 kb)

Letter with attachment mailed to distributors on February 20, 2003


Appendix B (264 kb)

Methodology and results from socioeconomic modeling


Appendix C (160 kb)

Methodology and results from energy use modeling


Finding of No Significant Impact (156 kb)


For more information

For more information, write to Bruce Yeager, Tennessee Valley Authority, 400 W. Summit Hill Dr. WT 8C, Knoxville, TN 37902. Requests for the document or information may also be sent via e-mail to tvainfo@tva.gov (Attn.: Bruce Yeager).


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