Senator claims TVA has lost millions - WAFF-TV: News, Weather and Sports for Huntsville, AL

TN Senator claims TVA has lost millions

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NASHVILLE, TN (WAFF) -

A Tennessee lawmaker claims that President Obama's announcement about possible plans to sell TVA will end up costing people across the southeast.

The claims were made by U.S. Senator Lamar Alexander out of Tennessee. He said the public announcement has ended up costing the utility company hundreds of millions of dollars. He says that loss will ultimately end up being passed on to customers.

Alexander claims TVA bonds lost almost $500 million dollars in value after the President revealed the possible plans last month. He claims this is largely due to the fact that people are uncertain about the company's future.

Alexander said at a Senate hearing Wednesday that he believes President Obama should have discussed the plans privately with TVA officials before announcing it publicly.

TVA sells bonds to help raise money to pay off debt and pay for work on their plants. Since the bonds have lost value, according to Alexander, they won't be worth as much when they are sold.

TVA's board has to approve any rate hikes. Local utilities, such as Huntsville Utilities, have to ask for permission to raise their own rates in order to makeup for any TVA hikes.

U.S. Officials said no decision has been made to sell TVA. Meanwhile, Alexander said that most people in the southeast region opposing selling the company.

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