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Report File
Date Issued
Submitting OIG
Tennessee Valley Authority OIG
Agencies Reviewed/Investigated
Tennessee Valley Authority
Report Number
2024-17486
Report Description

The Office of Inspector General determined risks to Tennessee Valley Authority resulting from lower-than-expected demand by a manufacturer was not considered and actions to address cost overruns were not fully implemented.  Specifically, the manufacturer’s monthly demand averaged approximately 10 megawatts (MWs) of the planned 160 MWs, which could impact TVA’s ability to recover the costs incurred to support the manufacturer.  In addition, analyses conducted by TVA identified causes for cost overruns and action plans were developed to mitigate the risk of cost overruns on future transmission projects.  However, we determined seven of eleven actions had not been implemented through process changes and actions.

Report Type
Inspection / Evaluation
Agency Wide
Yes
Number of Recommendations
2
Questioned Costs
$0
Funds for Better Use
$0
Report updated under NDAA 5274
No

Open Recommendations

This report has 2 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1 Yes $0 $0

We recommend the Senior Vice President, Commercial, Communications, and Customer Affairs, in conjunction with the Senior Vice President, Economic Development, develop a plan for future business arrangements with industrial customer to mitigate the risk of TVA not fully recovering infrastructure costs for the additional capacity.

2 No $0 $0

We recommend the Vice President, Transmission Planning and Projects, ensure outstanding actions to mitigate the risk of future transmission cost overruns are completed and process changes documented.

Tennessee Valley Authority OIG