Caucus eyes legislation to recover TVA money

MONTGOMERY - The 20 Tennessee Valley legislators who formed a caucus in 2005 to lobby for common goals said they will sponsor legislation in 2009 to recover about $6 million the Tennessee Valley Authority pays in lieu of taxes each year to non-TVA counties.

The caucus said in a statement released Tuesday that its 2009 legislative agenda will include sponsoring bills to return TVA money to north Alabama counties, including Colbert, Lauderdale, Franklin and Lawrence, that get their electricity from TVA.

"We're a strong bipartisan group, united by the common goal of looking out for the best interests of north Alabama, and that's what we will continue to do next session," said state Rep. Mike Curtis, D-Greenhill.

House members, in the just-completed special session, sponsored a resolution calling for an end to about $6 million in payments to non-TVA counties.

A law has been on the books for 30 years that allows non-TVA entities to share the in-lieu-of-taxes money that TVA pays counties, even if some are not serviced by the federal utility.

Curtis said caucus counties in the TVA service area deserve a greater share of money that TVA pays to Alabama. In other counties, local taxes paid by power companies go to local county treasuries.

The $6 million in TVA money named in the proposed legislation goes to 14 non-TVA counties that do not allow alcoholic beverage sales.

"Fair is fair, and it doesn't make sense for our counties to subsidize dry counties with TVA in-lieu-of-tax funds," said Rep. Marcel Black, D-Tuscumbia.

Tennessee Valley legislators recently created county development commissions that get additional TVA money for approved projects. Projects may include education, economic development, fire protection, public and mental health, conservation, promoting literacy, recreation, art appreciation, senior services and promoting Alabama-produced agricultural commodities, the caucus said.

"These are funds generated by local consumers, and they address needs in our communities, such as economic development, which provides better job opportunities," said Rep. Tammy Irons, D-Florence.

The legislation will likely be introduced when the regular session begins next winter.

The TVA caucus formed three years ago to address issues affecting the Tennessee Valley area such as TVA in-lieu-of money and protecting the Tennessee River from inter-basin transfers, the caucus said.

Dana Beyerle can be reached at (334) 264-6605.