TVA Realignment Supports Competitive Rates, Energy Priorities

February 9, 2012

KNOXVILLE, Tenn. – The Tennessee Valley Authority announced Thursday an organizational realignment to deliver on its Vision to be a leader in providing low cost, cleaner energy.

"We know what it takes to compete in the energy segment,” said President and CEO Tom Kilgore. “The Valley needs clean, low cost and reliable energy to attract and retain jobs that benefit all of our customers; and we have to be agile enough to adjust to a changing business environment.

“In 2012 our focus is on low, competitive rates that we will achieve through improved performance on our key priorities. The first of those priorities is to minimize increases in rate pressures, especially in the difficult economic times we have today. As our sales go down, the pressure on our rates goes up. We must work to reduce those pressures.”

The leadership transition that is occurring with Bill McCollum’s announcement of plans to retire as chief operating officer led to an evaluation of how to align the organization to support operational goals and business priorities more efficiently. In tough times, organizations must do their work with fewer resources, Kilgore said.

“We are aligning our business into functional teams focused on energy generation and energy delivery. Nuclear generation and construction will be separate groups reporting directly to the CEO. There should be no doubt as to the importance of nuclear in our energy mix,” he said.

The new Generation organization will encompass TVA’s generation assets, including coal, natural gas, renewables and hydroelectric power. The Energy Delivery organization will focus on customers reliably receiving TVA energy and on TVA’s relationship with distributors.

“We are basically redistributing the responsibilities that were under the office of the chief operating officer. Everyone on the executive management team will pick up additional responsibilities. As we align these units with our business, the key is safe, quality performance by our people and that comes from focused leadership,” Kilgore said.

One example is the new leadership teams at Watts Bar Nuclear Plant Unit 2 and Bellefonte Nuclear Unit 1.

“We are putting in place a highly skilled, experienced team in nuclear construction and project management as we develop our completion plan for Unit 2 at Watts Bar,” said Mike Skaggs, senior vice president of nuclear construction. “These steps also ensure we have a strong leadership team in place to keep an appropriate focus on the planning phase at Bellefonte.”         

Kilgore said, “For the past 18 months, we have been working to align our priorities with our Vision and Integrated Resource Plan. We have made progress, and now we are shifting into high gear with TVA’s operational team better aligned to our core business.

“From the plants, to the transmission system, to the financial and other support teams, everyone at TVA will be focused on the business of providing reliable and cleaner energy at low, competitive rates,” Kilgore said.

The Tennessee Valley Authority, a corporation owned by the U.S. government, provides electricity for business customers and distribution utilities that serve 9 million people in parts of seven southeastern states at prices below the national average. TVA, which receives no taxpayer money and makes no profits, also provides flood control, navigation and land management for the Tennessee River system and assists utilities and state and local governments with economic development.

NOTE:  (Organization chart related to this release can be viewed here.)  

Media Contact

Travis Brickey, Knoxville, (865) 632-6263
TVA Media Relations, Knoxville, (865) 632-6000

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New Organizational Chart