Summary: A January 1977 court order halted completion of the Tellico Dam because it would destroy the habitat of the snail darter, an endangered species. GAO examined various alternatives associated with this issue and issued a report in October 1977, "The Tennessee Valley Authority's Tellico Dam Project--Costs, Alternatives, and Benefits." If the project were not completed, some expenditures already made would provide benefits such as land, roads, and bridges and economic stimulation from workers' salaries. Alternatives involving a compromise between completing the project and the continued existence of the snail darter in the Little Tennessee River did not seem possible. A low or intermediate dam would threaten the darter's survival and also reduce benefits. Abandoning the project without removing at least a portion of the dam would also threaten the darter's survival. If the Tellico reservior were completed, it would provide recreation, shoreline development, and flood control benefits. The project could also provide navigation and electric power generation. Some of the Tennessee Valley Authority's (TVA) estimates of benefits were questioned. The Chairman of the Board of TVA should provide to the Congress detailed remaining cost and benefit information on the Tellico project and its alternatives. TVA should also obtain suggestions on developing alternatives. No action should be taken on legislation to exempt the project from the Endangered Species Act of 1973 until the Congress has assessed updated information.
