The Tennessee Valley Authority, the nation’s largest public utility, is under scrutiny as experts and advocacy groups push for greater transparency and better decision-making processes.

A recent report by the American Council on Renewable Energy (ACORE) highlights concerns about TVA’s governance, lack of oversight, and energy planning strategies. As the demand for electricity rises, the report suggests that Congress should reform TVA’s structure to improve its operations.

TVA’s Unique Governance Structure

Unlike other utilities that report to state utility commissions, TVA operates as a federal corporation. It is overseen by a board of directors appointed by the President and confirmed by the U.S. Senate. This means TVA does not have to seek state approval when planning new power generation projects or infrastructure changes.

The lack of state regulatory oversight has raised concerns about TVA’s decision-making transparency. Advocates argue that without external review, TVA’s policies and projects may not always prioritize cost efficiency, customer benefits, or clean energy initiatives.

Rising Demand for Power

TVA serves over 9 million people across seven states, including Kentucky, Tennessee, Alabama, and Mississippi. As the region’s population grows and industries expand, electricity consumption is increasing.

In January 2025, TVA recorded a new power demand high of over 35,000 megawatts during a severe winter storm. The utility had to borrow power from neighboring grids and request that customers voluntarily reduce their usage.

Major drivers of rising power demand include:

Expansion of data centers that require high electricity consumption

New battery manufacturing facilities

Growing electrification of homes, vehicles, and industries

To meet these demands, TVA has been investing heavily in infrastructure upgrades, spending hundreds of millions of dollars on power plant improvements in 2024.

Challenges and Calls for Reform

Despite these investments, TVA has faced criticism for its handling of power supply issues, particularly after implementing rolling blackouts in December 2023 when fossil fuel power plants failed during extreme cold.

The ACORE report recommends several reforms to increase TVA’s transparency and efficiency, including:

Better Transmission Planning – TVA’s closed-door decision-making process for planning power transmission should be replaced with more stakeholder involvement.

Stronger Federal Oversight – The report suggests that TVA should be placed under the Federal Energy Regulatory Commission (FERC) to ensure better regulatory compliance.

Independent Advisors for the TVA Board – The TVA board, made up of part-time members, lacks an independent body to verify the information provided by TVA’s management. The report suggests hiring consultants or staff to improve board decision-making.

TVA’s Response

TVA spokesperson Scott Fiedler stated that the utility was not consulted for the report but emphasized that TVA is conducting a transparent planning process. He confirmed that a finalized Integrated Resource Plan (IRP) would be released in spring 2025.

What’s Next?

As TVA moves forward with new power projects and investments, pressure for reforms is expected to grow. Congress may consider legislative actions to increase accountability and improve TVA’s decision-making process.

By addressing concerns related to transparency, governance, and energy planning, TVA can ensure that it meets the growing energy needs of the region efficiently and sustainably.