As Tennessee Valley Authority (TVA) falls behind the debt-reduction goals itset out in 1997, the US General Accounting Office (GAO) urged Congress to countTVA’s alternative financing method as debt. The GAO made this recommendationin a congressional report released at the end of June.

TVA’s alternative arrangements for refinancing new power plants resultedin long-term obligations similar to debt, but are not counted toward its federallyset $30 million debt cap. Although TVA reduced its