A Century-Old Company The Government Owns Wants To Solve A Big Energy Problem

The Biden administration wants the United States to triple the global supply of nuclear power, with American-designed reactors running on fuel enriched in the West. The goal: Usurp Russia’s near monopoly on atomic energy exports, and keep China from gaining control of yet another green energy industry.

But there’s one big problem: The U.S. isn’t even building any more reactors at home.

After nearly 15 years of billion-dollar cost overruns and delays, the utility giant Southern Company just hooked the second of two new reactors at a power plant in Georgia up to the grid this week — the only two atomic energy units built from scratch in the U.S. in decades. Developers are shopping around all kinds of novel designs for new-age nuclear plants. Yet few utilities can afford — or persuade investors to put up the cash for — projects that can take a decade or more to complete.

Luckily for President Joe Biden, the federal government owns a massive power utility specifically designed to deploy large-scale infrastructure that remains out of reach for the market’s invisible hand. But building new megaprojects means borrowing money — and Congress hasn’t bothered to adjust the utility’s credit limit for inflation in 45 years.

Established almost exactly 91 years ago to electrify rural parts of the American South too poor to attract profiteering utilities, the Tennessee Valley Authority today generates and sells power to 153 local distributors that serve 10 million people in Tennessee and the surrounding region. The TVA’s seven reactors, spread out between three nuclear power plants, churned out 43% of its electricity in the past few months.

The TVA functions like any other independent power company. But the New Deal-era state