Tennessee Valley Authority (TVA) board has authorized the purchase of as much as 2,000 megawatts of renewable and clean energy by 2011 as part of TVA’s plan to have 50% of its power supply from clean and renewable energy sources by 2020. TVA may enter into contracts as early as June 1, 2009 with some of the renewable or clean energy suppliers that provided competitive responses to a request for proposals issued in December 2008. Renewable energy sources include wind, hydro, solar or biomass.

Johnson City, Tenn., the Board authorized TVA president and chief executive officer Tom Kilgore Kilgore discussed the latest quarterly fuel cost adjustment that was effective, April 1, 2009 resulting in a 7% decrease in TVA’s average wholesale rates. Combined with a 6% decrease January 1, 2009 TVA has now rolled back almost 90% of the 17% fuel cost adjustment that went into effect October 1, 2008. While savings will vary across the TVA, the April 1, 2009 fuel cost adjustment will mean that residential consumers can expect a decrease on their monthly power bills that ranges from about $4 to $9, depending on how much electricity they use.

“It is our goal to reduce TVA’s environmental footprint by increasing the renewable and clean energy resources in our generation mix,” said Kilgore. “Renewable energy and energy efficiency will be part of our clean energy portfolio that has zero or near-zero carbon emissions, which will help reduce the impacts of climate change.”

Kilgore said TVA will negotiate contracts that are “competitive with forecasted electricity market prices over the term of the contract.” Contract terms will be up to 20 years.

TVA received more than 60 responses to its request for proposals to provide clean and renewable energy by June 2011. TVA notified the responders who met the criteria and is continuing discussions with them.

In his report to the board, Kilgore also said the effects of the drought are continuing into 2009.

For the first three months of this year, rainfall in the eastern part of the Tennessee Valley is below normal and slightly less than rainfall during January 2008 to March 2008. Runoff – the water that reaches streams and reservoirs – is slightly higher so far this year than it was during first three months of 2008, but is still below normal. The tributary reservoirs still need 4 to 8 inches of rain to reach normal summer levels.