The Tennessee Valley Authority board of directors at its meeting Thursday approved performance measures for the agency that support the call for excellence throughout TVA by new President and CEO Bill Johnson.
“We are serving the people of the Tennessee Valley, and we must do that to the best of our ability,” Mr. Johnson told the board in his first TVA board meeting since being named president and CEO.
“We must try continuously to improve everything we do, always striving for excellence, both financially and operationally, and focusing on the right priorities – safety and reliability throughout our operations,” he said. “The goal is to be better today than yesterday, better tomorrow than today.”
Fiscal year 2013 performance measures include safety, financial health, power plant performance, transmission system reliability and environmental responsibility. These drive a system of performance measures that reach down to individual work groups and employees, according to Johnson.
“I am impressed with the dedication and capability of TVA employees. Working with our customers, we will safely deliver low-cost, cleaner energy that helps communities in the region attract and keep good jobs,” Mr. Johnson told the eight-member board, which includes four directors who were sworn in during January: Lynn Evans of Memphis; Peter Mahurin of Bowling Green, Ky.; Mike McWherter of Jackson, Tn., and Joe Ritch of Huntsville, Ala.
Mr. Johnson explained that the utility’s diverse mix of energy sources, which enables it to generate power reliably and economically under a variety of conditions, was critical during three recent refueling outages at its nuclear plants. TVA increased generation at its natural gas and coal plants to meet power needs and was able to avoid buying higher-cost energy from other utilities.
Having a more balanced portfolio follows the strategic direction established in TVA's long-term energy plan, known as its Integrated Resource Plan. The plan was developed in collaboration with TVA partners and stakeholders, and accepted by the board in 2011. Mr. Johnson reported that TVA will begin updating the IRP in 2013 and will again engage its stakeholders.
Mr. Johnson also reported on several challenges TVA faces, including emerging from the Nuclear Regulatory Commission’s heightened level of oversight as a result of its 2011 “red” finding at Browns Ferry Nuclear Plant, completing Watts Bar Nuclear Plant Unit 2 on time and within budget, bringing the Raccoon Mountain Pumped Storage Plant back online, and complying with increasingly stringent environmental regulations.
Chief Financial Officer John Thomas reviewed results for the fiscal year’s first quarter, which ended Dec. 31. Total operating revenue remains essentially on plan with sales relatively flat, total revenues consistent with the prior year and net income down. Higher off-system sales were offset by lower sales to directly served industrial customers.
In addition to receiving the President’s Report, the board also approved new committee assignments for the board’s five standing committees.