TVA Board Adopts Strategic Plan to Meet Competitive Future
Jan. 14, 2004
The TVA Board today approved a strategic plan that provides a framework for what TVA needs to do to preserve its core mission and remain financially sound in a more competitive business environment.
The plan also gives TVA guidance on making power supply investment decisions and establishing annual budgeting priorities, according to Senior Vice President of Strategic Planning and Analysis Theresa Flaim. She presented the plan to the Board at a meeting in Knoxville.
“The strategic plan is TVA’s road map for future success,” said TVA Chairman Glenn McCullough Jr. “It describes the kind of future we need to anticipate and examines what actions we must take to adapt to changes in the electric utility industry. Implementing the plan now will help TVA remain strong for years to come.”
Under the new plan, TVA will concentrate on four areas to prepare for a more competitive market. Those are:
- Developing new, more highly differentiated prices and services and customer contract terms that more closely tie the cost and risk of each product TVA provides to its terms and conditions.
- Addressing the wide range of issues related to wholesale market design and transmission pricing.
- Accelerating debt reduction to increase financial flexibility, with a target of $3 billion to $5 billion over 10-12 years.
- Maintaining and operating company assets to continue to meet supply obligations safely and reliably.
“TVA’s mission of serving the power needs of the people of the Tennessee Valley, being good stewards of the land and river system and promoting economic development remains unchanged,” said TVA Director Skila Harris. “As they have done throughout the history of TVA, employees of TVA must find new ways to do business and carry out our mission as we meet the future challenges of a competitive environment.”
Before the Board was asked to approve the strategic plan, a draft plan issued Oct. 1 was provided to the public, customers, employees, members of Congress and other stakeholders for comment. Most comments affirmed the plan’s general direction and recommendation to accelerate debt reduction, according to Flaim.
”The strategic planning process has done a lot to educate the leadership about where TVA needs to be financially,” said TVA Director Bill Baxter. “Now we are going to make debt reduction an even higher priority than it has been in the past, and we are placing a strong emphasis on cost reduction during the current fiscal year.”
Read background material on the TVA Strategic Plan and the final text.
TVA is the nation’s largest public power provider and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seen southeastern states.
Media Contact:
Gil Francis, Knoxville (865-632-8031) or TVA News Bureau, Knoxville (865-632-6000)
