All Reports

In June 2019, the Tennessee Valley Authority (TVA) completed an Integrated Resource Plan and recommended the expansion of solar generating capacity by up to 14,000 megawatts (MW) by 2038. According to TVA’s fiscal year 2020 Sustainability Report, TVA set a sustainability aspiration to achieve 10,000 MW of solar generation by 2035. To help achieve this goal, TVA purchased 3,000 acres to construct an estimated 200 MW solar facility in Lawrence County, Alabama.

The Tennessee Valley Authority’s (TVA) Power Supply Plans (PSPs) combine optimized capacity and generation plans that balance load and power supply and provide detailed dispatch and generation forecasts used in resource decisions, budgeting, and analysis. PSPs incorporate key planning assumptions, including load and commodity forecasts, fleet characteristics, and other inputs, applying least cost planning methodology.

We performed an audit of costs billed to the Tennessee Valley Authority (TVA) by GE Vernova International, LLC (GEVI) for parts and services for the covered units at the Allen Combined Cycle Plant as part of a long-term service agreement under Contract No. 11930. Our audit objective was to determine if costs were billed in compliance with the contract’s terms. Our audit scope included about $48.5 million in costs billed from January 1, 2021, through March 31, 2024.

According to Tennessee Valley Authority (TVA) Standard Programs and Processes 26.003, Community Contributions, TVA helps enable a better quality of life in the communities it serves (1) through its work in energy, the environment, and economic development and (2) by supporting educational and community goals. Much of TVA’s giving activity supporting educational and community goals is administered under formally established programs, including the Community Contributions and Community Care Fund programs.

The Tennessee Valley Authority (TVA) performs an annual cost of service study that, according to Commercial Energy Solutions Standard Programs and Processes 21.7.3, Cost of Service, “is used to estimate the cost to TVA of serving particular classes of customers and to compare that cost to the estimated revenue derived from those classes. The analysis may be used to derive, evaluate, initiate, or justify rate actions.”

At the request of the Tennessee Valley Authority’s (TVA) Supply Chain, we examined the cost proposal submitted by a company for engineering and construction services in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the company’s cost proposal was fairly stated for a contract with expenditures up to $25 million.

At the request of the Tennessee Valley Authority (TVA) Supply Chain, we examined the contractor’s cost proposal for work in connection with the validation phase of TVA’s Small Modular Reactor and Clinch River Nuclear project. Our examination objective was to determine if the cost proposal was fairly stated for a planned contract with expenditures up to $25 million.

We are pleased to present our report for the period April 1, 2024, to September 30, 2024. In this semiannual period, our audit, evaluation, and investigative activities identified more than $48.4 million in questioned costs; funds put to better use; recoveries, fees, and fines; and opportunities for the Tennessee Valley Authority (TVA) to improve its programs and operations.

Proper practices and procedures can reduce the number of accidents resulting from an inadvertent release of hazardous energy, according to the Occupational Safety and Health Administration. The Tennessee Valley Authority’s Safety Procedure 18.613, Clearance Procedure to Safely Control Hazardous Energy Using Group Tagout, establishes minimum TVA-wide clearance requirements, while Power Operations Standard Programs and Processes 10.015, Coal and Gas Clearance Procedure, governs the clearance process at gas sites.

In keeping with its responsibilities under the Inspector General Act of 1978, as amended, the OIG monitored the audit of TVA's fiscal year 2024 financial statements performed by Ernst and Young LLP (EY) to assure their work complied with Government Auditing Standards. Our review of EY's work disclosed no instance in which the firm did not comply in all material respects with Government Auditing Standards.