TVA's Coal Procurement Practices--More Effective Management Needed

摘要

The Tennessee Valley Authority is one of the largest coal-buying utilities in the Nation. Coal costs are a major expense to TVA and thus affect power rates. The coal purchasing program should be managed more effectively in order to keep down coal costs. TVA has purchased a great deal of its coal during times that were least favorable for buying coal. Consequently, TVA paid premium prices. The lack of a long-range comprehensive plan for buying coal has led to other problems as well. GAO points out problems TVA has had with respect to its coal-buying practices and recommends that a long-range plan for coal purchases be developed and that procurement practices be improved. (Author)