This could cause serious problems. Operating reserve margins are expected to fall dangerously short in the U.S. over the next decade. Complicating matters, few bulk transmission additions are planned in the next 10 years, which will make it increasingly difficult to deliver purchased power. The bottom line is that the electricity needed to fuel continued economic growth in the U.S. may fall seriously short of the nation's requirements. Right now, construction of another nuclear plant or coal-fired facility might not produce the return on investment their shareholders demand.
Surplus capacity is unsold inventory.
At TVA, of course, we don't have shareholders demanding that they get a high return on their investment. We have the public. So, while TVA doesn't build facilities for power production greater than the requirements of our service area, we do operate with a reasonable margin to avoid a power shortage to our customers. At TVA, we see it as our public responsibility to continue to provide a reliable power supply to meet the Valley's growth demands. And for this reason alone, they deserve their place in the deregulated marketplace of the next century.