Energy Alabama, Center for Biological Diversity, and Appalachian Voices Call for Inspector General Investigation into TVA’s Membership in Utility Air Regulatory Group

Energy Alabama, the Center for Biological Diversity, and Appalachian Voices are calling on the Tennessee Valley Authority (TVA) Office of Inspector General (OIG) to open an investigation into TVA’s membership in and use of ratepayer dollars for the Utility Air Regulatory Group (UARG) and other unincorporated trade groups including the Utility Solid Waste Activities Group (USWAG), and Utility Water Act Group (UWAG).

To view the full document calling for the investigation, click here.

In a letter to the TVA OIG, advocates are voicing serious concerns about the use of ratepayer dollars for use in litigation and/or lobbying by UARG and its sister organizations. Any such activities would be in direct violation of TVA’s board-approved policy, which stated, “These organizations will not lobby on behalf of TVA or represent TVA in litigation without specific authorization to do so”.

TVA has repeatedly claimed the dues paid to UARG and related groups have not been used for litigation or lobbying. TVA’s own records demonstrate that its 2017 UARG dues were substantially higher than what UARG claimed went to technical expenses. TVA paid $462,967 to UARG in 2017, almost double the $265,721 UARG claimed was spent on technical expenses.

A reasonable observer can only conclude the difference of TVA’s dues were in fact spent on lobbying and/or litigation, which UARG described as “legal” expenses. TVA either gave permission to use ratepayer money for legal expenses or UARG broke its agreement with TVA.

In light of the facts outlined above, TVA appears to be in direct violation of the policy adopted by the TVA Board of Directors on November 10, 2016.

Therefore, TVA either provided specific authorization to UARG to lobby or litigate on its behalf, while refusing to disclose such authorization to the public, or TVA has violated its Board of Directors’ directive.

“What troubles us the most is that TVA forced its customers to make political speech by taking money from their utility bills and using it for DC-based lawyers,” said Daniel Tait, Chief Operating Officer of Energy Alabama. “Most Alabamians don’t like an arm of the federal government taking their money meant to keep the lights on in order to sue another arm of the federal government.”

“UARG and its secretive affiliates sue the federal government on behalf of polluters with the sole goal of weakening bedrock environmental protections,” said Howard Crystal, Senior Attorney at the Center for Biological Diversity.  “It’s appalling that TVA customers are being forced to subsidize these dirty efforts through their rate payments, which put utility profits above the public interest.”

TVA’s stated mission is to improve the quality of life throughout the Tennessee Valley through the integrated management of the region’s resources. This mission makes no provision for using ratepayer money to fund lobbying and/or litigation activities in the pursuit of regulatory rollbacks.

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