City, MLGW ask for a say in dispute over TVA’S lines
The city of Memphis and Memphis, Light Gas and Water filed briefs in a regulatory dispute between the Tennessee Valley Authority and four local power companies who are looking to leave the federal power provider and want to use its transmission lines.
The four utilities have sought clarity from the Federal Energy Regulatory Commission on whether federal regulations allow for them to leave TVA and then have TVA use its vast transmission network to bring them power from a competing power source. TVA maintains that its transmission lines are only for local power companies that buy power directly from TVA.
Both the city and MLGW filed motions to intervene in the regulatory dispute on Monday, saying the outcome is of great interest. For years, Memphis and MLGW have considered leaving TVA for power elsewhere. During that time, there’s been considerable debate of whether Memphis would have to build its own transmission lines or it could just force TVA to bring it power. If TVA were forced to bring Memphis power, that would lower the cost of leaving TVA.
“The outcome of this proceeding could determine whether MLGW and other LPCS that are similarly situated with Petitioners are entitled to open-access, non-discriminatory and comparable transmission service from TVA,” MLGW said in its filing.
Other notable filers in the FERC case Monday included the group $450 M for Memphis, which is run by businessman Karl Schledwitz and Jim Gilliland, Jr. The pair have pushed for Memphis to examine leaving TVA since the middle of 2020.
Nuclear Development, a company owned by Chattanooga businessman Franklin Haney, also filed a motion to intervene. Haney’s company has pitched Memphis on leaving TVA, using TVA’S transmission lines and then buying power from an unfinished nuclear plant.
TVA, for its part, pushed back against the FERC dispute.
“Since 1933, TVA and LPCS have built a strong public power model that continues to serve the Tennessee Valley region today. As a public power provider, TVA built an extensive utility system designed to provide safe, clean, reliable, and low cost power to the local power companies, which benefits consumers and Valley businesses and economic development,” TVA said in a statement. “The action that Petitioners are seeking threatens to undermine the value of the public power model to the detriment of businesses and LPCS and runs counter to the public interest.”
Samuel Hardiman is a watchdog reporter who covers Memphis city government, politics and the pandemic response for The Commercial Appeal. He can be reached by email at samuel. hardiman@commercialappeal.com or followed on Twitter at @samhardiman.