TVA CUSTOMERS ASK COURT REQUIRE DOE PAYMENT
An organization of Tennessee
Valley Authority industrial customers said it has joined the
TVA in asking a court to prevent the U.S. Department of Energy
from witholding contracted payments to TVA.
    The Tennessee Valley Industrial Committee said it is
seeking permission to intervene in TVA's federal district court
lawsuit requesting DOE be enjoined from witholding payments due
under "minimum demand" provisions of the TVA's contract to
supply electricity to uranium enrichment facilities at Oak
Ridge, Tenn., and Paducah, Ky.
   
    Such provisions obligate TVA to make available a certain
amount of power and the customer -- in this case the DOE --
agrees to pay the fixed costs associated with that amount of
power whether is is used or not.
    The committee represents 27 large, energy-intensive
industries with operations in the TVA service area. These
industries, like DOE, are served directly by TVA as opposed to
going through a local distributors.
    The TVA has said DOE's intention, announced last week, to
withhold increasing percentages of its electric bill will
result in a revenue shortfall of about 250 mln dlrs and force
an about six pct rate increase to all other customers.
 Reuter
