TVA averts debt crisis, won't ask Congress to raise borrowing cap
By Dave Flessner, Chattanooga Times Free Press - bio
CHATTANOOGA, TN (Times Free Press) -
Congress will have to again raise the U.S. debt ceiling next month for the United States to pay its debts, but the debt cap for one federal agency appears to no longer be a problem -- at least for the foreseeable future.
The Treasury Department estimates the federal government will max out its borrowing authority by mid-October as the U.S. debt hits its $16.4 trillion limit. But the Tennessee Valley Authority, the federal utility which has its own $30 billion debt cap, won't be asking Congress to raise its borrowing authority for at least the next decade.
The debt cap Congress put on the TVA a generation ago probably won't be the problem agency officials worried it would be just a few years ago. With the growth of electricity demand slowing, TVA should be able to reduce its net borrowing within a couple of years and shave nearly $5 billion off its debt over the next decade.
TVA's debt is projected to peak in 2015 about $3.5 billion below the $30 billion limit and then begin to decline, according to spending plans adopted last month by the TVA board.