Tellico Dam

Tellico Dam is a concrete gravity and earthen embankment dam on the Little Tennessee River that was built by the Tennessee Valley Authority (TVA) in Loudon County, Tennessee. Planning for a dam structure on the Little Tennessee was reported as early as 1936 but was deferred for development until 1942. Completed in 1979, the dam created the Tellico Reservoir and is the last dam to be built by the Tennessee Valley Authority.

Unlike the agency's previous dams built for hydroelectric power and flood control, the Tellico Dam was primarily constructed as an economic development and tourism initiative through the planned city concept of Timberlake, Tennessee. The development project aimed to support a population of 42,000 in a rural region in poor economic conditions.

Referred to as a pork barrel, the Tellico Dam is the subject of several controversies regarding the need of its construction and the impacts the structure had on the surrounding environment. Inundation of the Little Tennessee required the acquisition of thousands of acres, predominantly multi-generational farmland and historic sites such as the Fort Loudoun settlement and several Cherokee tribal villages including Tanasi, the origin of Tennessee's name. Most of the acreage around the final lakeshore, originally seized through eminent domain, was sold to private developers to create retirement-oriented golf resort communities such as Tellico Village and Rarity Bay.

The Tellico Dam project was also controversial because of the risk it was believed to pose to the endangered snail darter fish species. Environmentalist groups took the TVA to court as a means to halt the project and protect the snail darter. The court action delayed the final completion of the dam for over two years. In the 1978 case Tennessee Valley Authority v. Hill heard by the Supreme Court of the United States, the court ruled in favor of the environmental groups and declared that the completion of Tellico Dam was illegal. However, the dam was completed and filling of the reservoir commenced in November 1979, after the project was exempted from the Endangered Species Act with the passing of the 1980 public works appropriations bill by the United States Congress and signed by President Jimmy Carter.

The Tennessee Valley Authority (TVA) is a federally owned electric utility company created by U.S. Code Title 16, Chapter 12A, the Tennessee Valley Authority Act of 1933. Despite its shares being owned by the federal government, TVA operates like a private corporation, and receives no taxpayer funding. The TVA was formally established in 1933 as part of programs under the New Deal.

The agency was initially tasked with modernizing the Tennessee Valley region, using experts in economic development, engineering, planning, and agriculture. Nonetheless, the TVA focused primarily on electricity generation, flood control, and combatting human and economic problems.

In 1936, TVA began studies for hydroelectric dam sites as part of its Unified Development of the Tennessee River (UDTR) plan. Early TVA plans suggested the construction of a dam along the Little Tennessee River at its mouth at the Tennessee River adjacent to Bussell Island. This later became known as the Fort Loudoun Extension, an expansion of the adjacent Fort Loudoun Dam. However, the project was canceled on October 20, 1942, due to a lack of federal funding resulting from financial constraints imposed by US involvement in World War II.

In 1959, the TVA reapproved development of the Fort Loudoun Extension, now called the Tellico Project. The justification for the project was to improve the economic conditions of the Little Tennessee watershed, through land and recreational development. This project, which encompassed acreage in Loudon, Blount, and Monroe counties, became known as the City of Timberlake Plan, named for journalist Henry Timberlake, who explored the Cherokee villages that once occupied the area. Timberlake, the TVA's ambitious attempt at creating a city from scratch, had a projected population of 42,000. The project was promoted as a demonstration of economic development for the rural poor, transforming the Little Tennessee Valley into a thriving urban center. The Tellico Dam would provide a large reservoir for recreation and for freight transport to proposed industrial sites with access to the Tennessee River through a canal. The dam would not produce electricity, but the canal would enable an additional 23 MW of power generation at the Fort Loudoun Dam by diverting flow from the Little Tennessee River. The Timberlake project was initially supported with congressional aid and investment from the American aerospace manufacturing company, the Boeing Corporation. In 1974, the Tennessee state legislature unsuccessfully proposed a bill seeking to incorporate the Timberlake area into a city. Boeing determined that the project was not economically feasible and withdrew in 1975; the plans never fully materialized.