The Tennessee Valley Authority board of directors welcomed four new members at its first meeting of the year today at TVA’s Chattanooga Office Complex.
TVA President and CEO Bill Johnson welcomed new directors Kenneth Allen, A.D. Frazier, Skip Thompson and Jeff Smith, noting they were joining TVA at a time of considerable change within the utility industry.
“Even as change occurs and our industry evolves, TVA’s historic mission of service endures,” said Mr. Johnson. “And in 2018, we continue to see improvement in how we deliver on our mission of low-cost, highly reliable energy, responsible environmental stewardship and promoting job growth and investment in the Valley.”
Preceding the meeting, board members and TVA leadership listened to members of the public who shared their opinions and concerns on these and other topics. And to ensure that stakeholders with diverse points-of-view continue to provide input on TVA’s policies and direction, the Board voted during their meeting to re-authorize the Federal Advisory Committee Act charters of two long-standing advisory councils: the Regional Resource Stewardship Council and the Regional Energy Resource Council.
Past recommendations from the FACA council members have influenced TVA’s continued investment in a cleaner, more diverse generation and transmission system, which directly impacted financial performance in the first three months of FY18. Fuel and purchased power costs were down 14 percent, contributing to increased net income even when effective electric rates remain two percent below 2013 levels, and residential and overall rates are lower than those paid by 70 percent Americans served by the top 100 utilities.
“Our continued focus on effectively running our business and managing our debt according to our long-term financial plan is the best way we can ensure that our rates remain among the lowest in the country,” said John Thomas, chief financial officer.
Mr. Johnson noted that the average retail power rate in the Tennessee Valley has moved from 37 to 29 in the U.S. over the last five years, even while investing billions of dollars to modernize facilities and improve environmental quality. The average Valley homeowner pays 16.7 percent less per kilowatt-hour than the national average – more than two full cents per kWh.
Additional Q1 FY18 achievements highlighted to the board include:
Reduced operating and maintenance expenses approximately eight percent from Q1 FY17.
Supplied 54 percent of the Valley’s energy needs from carbon-free sources.
Completed installation of emissions controls at Gallatin and Shawnee Fossil Plants, and retired the Johnsonville Fossil Plant after 66 years of service.
Partnered with state and local agencies to draw 20,600 new or retained jobs and $5 billion in capital investment – not counting the recent 4,000 jobs, $1.6 billion Toyota-Mazda announcement at a TVA-certified megasite near Huntsville, Alabama.
During the meeting, the board also acted to: