TVA Employees Deliver Another Year of Successful Service to the Valley
TUPELO, Miss. ― The Tennessee Valley Authority Board of Directors today recognized TVA employees’ service on behalf of the people of the Tennessee Valley over the past year during its quarterly business meeting in Tupelo, Mississippi – the first city to contract with TVA for electric service more than 85 years ago.
“When President Franklin Roosevelt visited Tupelo just after it became the ‘First TVA City,’ he commented that Tupelo Water and Light’s partnership with TVA was a ‘remarkable business success,’” said TVA President and CEO Bill Johnson. “Working in continued partnership with local power companies, TVA employees delivered their own ‘remarkable business success’ over the past year.”
“Through their efforts, TVA’s power rates are more competitive, our energy is more reliable and cleaner, we are managing our debt and we continued to invest in a strong economic future for the region.”
Among the past year’s achievements noted by the board, the TVA team:
- Produced more than half of the Valley’s energy needs from carbon-free sources for the entire fiscal year.
- Achieved a nearly 50 percent reduction in carbon emissions since 2005 – almost twice the national average and on track to achieve a 60 percent reduction by 2020.
- Had its best year ever of transmission reliability while achieving its 19th consecutive year of 99.999 percent reliability.
- Successfully delivered the highest 24-hour energy demand in TVA’s history during extreme cold in January.
- Completed the Allen Combined Cycle plant in Memphis, one of the most advanced and efficient gas-fired, steam turbine generation plants in the U.S.
- Finished environmental upgrades at the Shawnee fossil plant near Paducah, Ky.
- Finalized the first of three extended power uprates at the Browns Ferry nuclear plant that will collectively deliver an additional 465 megawatts of carbon-free energy to the Valley.
- Worked with local power companies to install community solar programs that are now available to 14 percent of the Valley’s population.
- Effectively managed the Tennessee River system to prevent significant flooding from several large rain events while generating $12 billion in economic benefit from recreational opportunities.
- Helped add or retain more than 65,000 jobs and more than $11 billion in capital investment to the area, earning TVA its 13th consecutive “Top 10 Utilities” economic development honors from Site Selection magazine.
- Assisted with the restoration of power in North Carolina after Hurricane Florence struck the east coast, volunteered at more than 650 community events and participated in 170 stewardship programs.
TVA also achieved a net income of about $1.1 billion in FY18 while reducing its debt by about $1.7 billion. Detailed financial results will be included in TVA’s 10-K filing, which will be publicly available on the morning of Nov. 15 on TVA’s website. TVA will conduct a call on Nov. 15 with investors and news media to review the 10-K and the year’s performance.
“FY18 marks the conclusion of the fifth year of TVA long-range financial plan and the continued focus on simultaneously reducing operational costs, investing in the efficiency of our generation and transmission system, and working to lower debt is becoming more evident,” said TVA Chief Financial Officer John Thomas. “We achieved higher revenues with lower expenses while reducing our debt to its lowest level in 25 years, all while maintaining retail power rates that remain lower than three-quarters of the U.S.”
In recognition of the collective work of employees, the board approved the FY18 performance and compensation package, including “at-risk” pay earned through achieving specific financial, operational and personal goals in TVA’s short-term incentive programs, and approved CEO compensation for FY19.
In other business, the board:
- Approved the accelerated payment of regulatory assets, which will help maintain rates as low as feasible for the future.
- Provided an update on the results of the pilot public listening session held the day before the board meeting.
- Accepted a U.S. Department of Defense award for support of military reserves and the National Guard.
- Recognized the service of Board Director Eric Satz, whose term ends this year.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving nearly 10 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation.