Contract for Nuclear Parts and Engineering Services

We audited $249million of costs for parts and services for Browns Ferry Nuclear Plant paid by TVA to a contractor from January1, 2000, through May31, 2006. We found the contractor overbilled TVA about $960,000 because the contractor had not always included discounts on prices it billed TVA as required by the contract. TVA management is working with the contractor to determine what impact, if any, a previous verbal agreement regarding the contract discount structure may have on the amount owed to TVA. Summary Only