IN MIDST OF RAISING POWER RATES, AUDIT OF TVA FINDS EXCESSIVE SPENDING ON PLANES

In the midst of informing electric companies such as Volunteer Energy that rates to purchase power will go up, Tennessee Valley Authority (TVA) is explaining excessive purchases. An internal audit determined the $17.7 million TVA spent on two corporate planes was not justified. The TVA Office of the Inspector General has found TVA’s reasons for buying an $11.2 million jet and a $6.4 million turboprop did not justify the purchases. The audit says the U.S. government-owned electric utility may have also violated federal code in improper justifications for its aircraft use. The audit says TVA did not provide documentation of any cost, safety, reliability or time efficiency comparisons before buying the planes. TVA Executive Vice President for Operations Mike Skaggs says say he did not believe TVA was in noncompliance of federal codes, but management has learned from the audit its flight-justification procedure needed to be more detailed.



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