TVA and Power Politics

Abstract

The passage of the Tennessee Valley Authority (TVA) Revenue Bond Act in 1959 ended a quarter of a century during which the Authority was dependent upon Congressional appropriations to supply the capital investment for its growing electric power facilities. This development marked the first appearance of consensus in the long conflict over the role of TVA in the national economy. The consensus emerged from an impasse between TVA's lack of support in Congress—the result of its narrow geographical limits, its identification with a single political party, and the growing industrialization of states on its borders—and the inability or unwillingness of its opponents to have TVA sold to private investors—the result of intensive support for the Authority among an active few in Congress, the unified nature of the TVA power system, and the huge amounts of power which TVA supplied to defense installations. The resolution of this impasse by authorizing TVA to sell revenue bonds on the public market suggests that in an open political arena like the Congress a stable consensus on policy may arise despite the most ardent efforts of the main contenders to achieve other solutions. Indeed, conflict among independent political forces may well achieve solutions meeting a far wider range of preferences than would be the case if the decision were made by any single official. Since maintenance of adequate Congressional support is a perennial problem for federal agencies, it will be instructive to review the shifting basis of support for TVA in Congress and draw from this experience the appropriate lessons.