Support The Green Power Switch

The time-sensitive information below outlines suggested changes proposed by the Tennessee Valley Authority (TVA) with regards to the Green Power Switch Generation Partners program which currently encourages home owners and businesses to install photovoltaic (solar) panels, a renewable energy source, to generate power. While this information is technical, the bottom line is that we need to contact TVA (contact info at the bottom) to show our support of the Green Power Switch (GPS) Generation Partners program.

Mike Leonard
US Green Building Council
Chair, Middle Tennessee Chapter

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TVA Generation Partners update:

As you know TVA reimburses local power providers 15 cents per kwh for solar.  This is a trail program set to expire Dec. 31st.  They are strongly considering reducing that to about 10 cents.  TVA says that the base rate of 7.5 plus the Green Switch premium of 2.6 equals 10.1 cents. Additionally they would remove the $500 reimbursement to the owner after commissioning.  This reduction in perceived value of photovoltaic power would be a blow to PV in Tennessee.  We have no state incentives for residential or new commercial.  The federal $2,000 incentive is all that would remain.  There would be no incentive to join Generation Partners.  The sole incentive for churches, schools, non-profits and government buildings would be removed.

Even though $25 billion in debt remains, 30 years later, from the last nuclear expansion, TVA plans further nuclear expansion.

The quarterly board meeting is Wednesday, Aug. 1st.   The main point is that PV generation compares favorably to supplemental natural gas, diesel, and spot market power during the portion of peak loading that coincides with solar generation.  The green tags or carbon credits, that TVA keeps in the GP 10 yr contract has a value.  The unknown financial risk of carbon emission is mitigated through PV generation.  Other positive values to Photovoltaic generation are:

1          Green Power Switch Premium

2          Green Tag (Carbon Credit)

3          Reduce Peak Loading

4          Displace Diesel/Nat Gas “Fuel Surcharges”

5          Pollution/emissions avoidance.

6          Less Dependence on Water for generation and thermal cooling of coal and nuclear plants

7          Transmission & Distribution Construction Savings

8          Line losses and hot spots in T&D will be positively impacted. (7%)

9          Power Plant Construction Avoidance

10        Risk Avoidance (Wheeling, pollution, EPA fines, construction overruns)

11        National security is enhanced.

12        Positive Health Effects

13        Conservation of water resources required for thermal cooling of fossil and nuclear turbines.

14        Elimination of risk on futures trading of natural gas derivatives.

The estimated value of these benefits to ratepayers and TVA are between 20 and 30 cents.  Jeff Christian with Oak Ridge National Laboratories has provided some supporting documentation.  The model Jeff is proposing would pay a home with 50% efficiency based on national DOE HERS averages a premium of 30 cents for generating clean energy.  Solar and wind generation should be IMPROVED and valued even more than it currently is because of these for reaching contributions.

You may contact the following people at TVA that have primary responsibility for this program to let them know of your support for the Generation Partners Program and your desire to see the program expanded.

Jim Keiffer, Senior Vice President of Marketing , (615) 232-6061, jdkeiffer@tva.gov

Kate Jackson, Executive Advisor on Alternate Energy Policy to CEO Tom Kilgore,
1-865-632-3141, kjjackson@tva.com