All Reports

As part of our annual audit plan, the OIG (Office of the Inspector General) audited the Oak Ridge, Tennessee, electric system for compliance with the power contract with the Tennessee Valley Authority (TVA) for the period July 2007 through June 2009. Key contract provisions included (1) proper reporting of electric sales, (2) nondiscrimination in providing power, and (3) use of electric revenue for approved purposes. For fiscal year (FY) 2009, Oak Ridge provided power to approximately 16,000 customers that resulted in electric sales revenue of approximately $52 million.

As part of our annual audit plan, we reviewed the inspection and maintenance programs for TVA's transmission lines and structures.

The OIG audited Sevier County Electric System's compliance with the power contract between the TVA and Sevier, a power distributor based in Sevierville, Tennessee, for the period July 2008 through June 2010. For fiscal year 2010, Sevier provided power to approximately 54,000 customers that resulted in revenues of approximately $134 million.Our audit found Sevier generally complied with the contract provisions for (1) proper reporting of electric sales, (2) nondiscrimination in providing power, and (3) use of electric revenue for approved purposes.

The OIG audited Warren Rural Electric Cooperative Corporation's (WRECC) compliance with its power contract with TVA. WRECC is a power distributor based in Bowling Green, Kentucky. For fiscal year 2010, WRECC provided power to approximately 60,000 customers that resulted in revenues of approximately $157 million. WRECC also owns and/or operates nonelectric businesses including a security system and monitoring service division, a propane sales subsidiary, and a natural gas distribution subsidiary, and partially owns a nonelectric bill processing company.

Marshall Miller & Associates, Inc. (Marshall Miller) was hired by the Office of Inspector General (OIG) to review the sampling and monitoring plans prepared by the Tennessee Valley Authority (TVA) for its Kingston Fossil Plant located in Harriman, Tennessee, following an ash release that occurred on December 22, 2008.

TVA OIG retained Marshall Miller & Associates, Inc. (Marshall Miller) to conduct a peer review of the Stantec Consulting Services, Inc. (Stantec) report on geotechnical exploration and slope stability for the Ash Disposal Areas 2 and 3 at the Johnsonville Fossil Plant.

TVA OIG retained Marshall Miller & Associates, Inc. (Marshall Miller) to conduct a peer review of the Stantec Consulting Services, Inc. (Stantec) report on geotechnical exploration and slope stability for the gypsum stack at the Widows Creek Fossil Plant.

TVA OIG retained Marshall Miller & Associates, Inc. (Marshall Miller) to conduct a peer review of the Stantec Consulting Services, Inc. (Stantec) documents for proposed improvements to the stability of the Northeast Dike of the Ash Disposal Area No. 2 of the Johnsonville Fossil Plant. Based on Marshall Miller's technical review, Stantec used generally accepted methods and practices to design the stability improvements.

This review was initiated because of questions raised during congressional testimony following the Kingston Ash Spill in December 2008. The objectives of this review were to determine whether the Tennessee Valley Authority (TVA) has (1) performed groundwater monitoring as prescribed by the permits and (2) found levels of constituents monitored that exceeded regulatory limits and, if so, implemented any required corrective actions.During our review, we found that in some instances TVA was not performing monitoring as prescribed by the permits.

The Office of the Inspector General reviewed the IT controls for granting and monitoring non-nuclear contractor access to TVA Assets, including general network access. The OIG found TVA's controls over processes for managing and tracking non-Nuclear contractor logical and physical access need to be strengthened to reduce the risk of loss or compromise of sensitive TVA data and physical assets.