The Glasgow Electric Plant Board will keep the Tennessee Valley Authority as its power supplier.
EPB directors voted unanimously on the decision, in a meeting this morning, Tuesday, Jan. 9, 2007. As a result, the EPB has retracted a notice, canceling its contract for power purchases with TVA.
EPB notified TVA in 2003, it would shop around for a better deal but disappointments in EPB’s search for a cheaper, more flexible supplier of wholesale electric power, led them back to TVA.
This morning’s decision was forced to a head by TVA’s recent announcement to charge the EPB very large “re-integration fees,” if the utility did not agree to retract its cancellation notice by tomorrow, Wednesday, Jan. 10, 2007.
TVA estimated these fees at more than $22 million. The EPB felt the risk of facing these fees, was just too large.
In a similar situation, Warren Rural Electric recently made the same decision to keep TVA as its power supplier.