Energy Right Program Payments

We determined market value payments (MVPs) to distributors for installed water heaters and heat pumps were generally applied correctly and total invoice amounts were generally accurate, including adjustments to applicable invoices. However, (1) the energy right ? Information System (erIS) does not provide the means to document and track adjustments, (2) some MVPs were paid without complete and/or accurate erIS information, (3) no verification occurred to ensure MVPs were made to distributors as approved by CS&M district specialists, and (4) distributors' noncompliance with certain energy right ? Program process/documentation requirements increased TVA's financial risks. Management agreed with the findings and is taking corrective actions.