The KNS has a report on the current drought situation in Tennessee. In case you hadn't noticed, it's dire.

One thing that caught my eye was the article's sub-head which says "no major effect on TVA". TVA says in the article there won't be any power shortages or other significant impact.

That's not what they told the Chattanooga Times Free Press. In our report on the drought at Facing South last week, the Chattanooga paper said the drought had cost TVA $300 million so far.

Even though they only get 10% of their power from hydro, it's their cheapest source and production is down 32%. Runoff into TVA reservoirs is down 39%, so it could get worse. TVA has to make it up somewhere, either buying it on open markets or burning more coal.

So remember this KNS quote when TVA comes crying to the ratepayers again next year looking for another rate increase. (They're already laying the groundwork.) And note that TVA does not mention conservation anywhere in their statements to the KNS. Because what company would ever urge their customers to use less of their product?