TVA stays ‘in lockstep’ with energy needs
GUNTERSVILLE — Tennessee Valley Authority interim CEO Mike Skaggs knows that as north Alabama grows in population, so too will the demand for more electricity.
Alabama House Speaker Nathaniel Ledbetter greeted the board in person May 21 and spoke about how future electrical demand would have to be met by TVA.
“North Alabama is projected to grow 33% in the next 10 years,” he said.
Skaggs said TVA does not want to get ahead of its generating needs and have capacity that is not being used, but to stay in “lockstep” with the needs as they arise.
“We have to stay focused on the demand as it arises,” he said immediately following the board meeting, which was held for the first time in Marshall County.
As the demand rises, so too does the net income for TVA. During the board meeting it was reported that the authority had a strong first half of its fiscal year, with a reported net income of $658 million. That strong first half also comes after TVA recommended a rate increase in September 2025.
Skaggs said TVA will continue to use a mixed portfolio of energy – hydro, nuclear, gas, coal and so forth – so if one input increases in cost, it won’t affect consumers as much since there are other forms of energy available.
Skaggs hit the ground running in the month he has been serving as interim CEO, meeting with Congressional leaders, TVA employees and large customers.
He said the fact finding has helped him get his bearings on the things TVA needs to do immediately and in the future.
Skaggs said it’s important to get the most the authority can out of the existing generating facilities as they plan to add new production. It’s a lengthy process to plan new generating capability, especially when dealing with nuclear.
He feels TVA is well positioned for the future.
He did note additional nuclear power has to be part of TVA’s future because it is clean and reliable energy.
In a prepared statement issued following the meeting, TVA stated ongoing construction at Allen, Cumberland, Kingston, New Caladonia, Shawnee and Vonore should add 3,770 megawatts of new capacity.
“This expansion is needed to support the valley’s growing industrial base and fast-growing communities,” a TVA news release stated.
A few north Alabama leaders in the public listening session earlier in the day had lobbied TVA for support for a natural gas line to serve Athens, Huntsville and Scottsboro with a TVA gas-fired generating plant in Jackson County.
Skaggs did not rule it out. He said in the agency’s evaluations of future energy needs, the board would consider whether the gas generating plant was needed.
