Dear John: In answer to your letter of November twenty-fourth concerning the Tennessee Valley Authority, I would first like to affirm your understanding of arrangements which have been made with the Tennessee Valley Authority for review by the President of its annual construction program. As was indicated at the time of debate on the financing bill, I will submit to the Congress each year my recommendations concerning this program for the ensuing fiscal year, starting with the fiscal year 1961.1
The new plant in Western Kentucky about which you have inquired, is to be located in an area where it could best serve the existing system and where coal is readily and economically available.2 While I can understand your concern about expansion of the TVA area, I am sure you realize that the new legislation places rather severe restrictions on the power service area of the Corporation.3 I would doubt that the simple location of a plant which is providing additional power for that system would either add to or detract from any pressures for geographical expansion. As a matter of fact, I am told that even the addition of this power unit will not meet all the anticipated power demands within this TVA area itself.
Concerning your suggestion that the site be reviewed by the Congress, you may recall that as finally enacted, the financing bill specifically exempted from the requirement for Congressional review the first power project to be built after enactment of the legislation.4 In the light of this mandate I do not believe it would be appropriate to prohibit TVA from proceeding with work on this first new site.
You may be assured of my intention to require continuing close review of TVA’s development plans. I am satisfied that the arrangements which have been worked out for this review will prove to be ample.
With warm regard, Sincerely
