Time to Choose Facts, not Wishful Thinking
As Memphis considers its options for a provider of electricity in the future, we believe TVA’s public power model is the best value and most affordable option.
We are committed to making sure Memphians have all the facts, despite distractions of promises of savings that can’t be guaranteed or, most likely, delivered.
You may see information in the media and on the internet with “studies” touting figures like $450 million a year in savings by leaving TVA. We think these claims are a distraction from the truth and from the transparent, public process being conducted by Memphis and MLGW.
TVA will continue to respect the process toward a decision on the future power needs of Memphis. However, we feel it’s important to speak out about these false and misleading claims.
It’s unfortunate that a small number of people with specific financial interests continue to attempt to mislead the people of Memphis.
This information on “savings” conveniently ignores the value of TVA to MLGW and the people of Memphis. It also leaves out key findings from Siemens in the PSAT process that MLGW and the City of Memphis commissioned.
Siemens conservatively estimates MLGW’s costs for leaving TVA at $7.7 billion. In addition, $560 million is needed to build a new transmission system and upgrade local transmission systems. These costs will be passed to the City of Memphis and MLGW rate payers.
The misleading figures on predicted savings also don’t account for other benefits of TVA public power:
- $70 million in annual benefits directly to the community, including economic development and community programs
- Additional $22.5 million savings per year MLGW would get by signing the long-term power agreement and the availability of $15 million in solar benefits
- Prepay options which could be negotiated up to $1 billion in the first year under the agreement
Any “savings” estimates mentioned by this special interest group are nothing more than speculation. TVA’s investment in the Memphis community is proven and reliable – just as it has been for the past 85 years.
As we have stated from the beginning, we are committed to the PSAT process and to ensuring that accurate information is provided so that Memphis can make the best decision for reliable and affordable power. This is a big decision and it’s important to make it based on facts and reality, not wishful thinking from those who will not pay the consequences for an unwise choice.