Distributors for the nation’s largest public utility signed onto what amounted to “never-ending” contracts that unfairly tied them to power generated by the Tennessee Valley Authority, a lawyer argued Thursday as she represents environmental groups in a lawsuit.
Southern Environmental Law Center lawyer Amanda Garcia spoke in Memphis federal court in response to TVA’s motion to have a judge make a ruling without going to trial. TVA said three environmental groups have no standing to sue after TVA reached long-term agreements with many local power distributors in its seven-state region.
U.S. District Judge Thomas L. Parker did not make a decision during the hourslong hearing, which included references to a federal law created 50 years ago, longstanding TVA rules, technical language and energy industry jargon. Timing on a decision was not immediately clear.
The lawsuit filed in August 2020 argued the 20-year deals signed by most of TVA’s customers lock the power distributors into exclusive contracts with the TVA and “will forever deprive distributors and ratepayers the opportunity to renegotiate with TVA to obtain cheaper, cleaner electricity,” the SELC has said.
The plaintiffs — Protect Our Aquifer, Energy Alabama and Appalachian Voices — have members that distribute power in their communities. They allege the deals hurt the ability of local power companies to seek out and use renewable power such as solar energy from sources outside the TVA. The deals replaced existing agreements of varying lengths, or followed expiring ones. Contracts require a 20-year notice to terminate, and they renew each year.