The Tennessee Valley Authority: The Cost of Power

The Tennessee Valley Authority: The Cost of Power

  • Case
  • Teaching Notes
Abstract

The Tennessee Valley Authority (TVA) must make a strategic decision to ensure sufficient power generation while at the same time continuing to provide affordable power to a growing number of customers in its service area. Complicating the decision is that TVA is faced with replacing a significant part of their existing power generation capability. Potential sources of new power generation include the construction of nuclear, natural gas, coal, and renewable energy production plants or the purchase of power needs from other electricity producers. The power generation options have highly differing costs, expected cash flows, and useful lives. Moreover, any construction decision is constrained by a limited capital budget. Not simply a financial decision, any strategy must also consider the political, social, and environmental impacts of ...

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles