Allocation of the Tennessee Valley Authority Projects

Abstract

The various theories applicable to the allocation of costs of a multiple purpose water control project, and the procedure followed by the Tennessee Valley Authority in allocating the cost of its first three dams to navigation, flood control, and power, are presented in this paper. It is shown that a large difference in the allocation of the comm on costs of a project affects to a much lesser degree the proportions of the total cost charged to the individual purposes. Consequently, the final allocations are approximately correct, within reasonable limits, regardless of the exact method adopted.