The Tennessee Valley Authority's (TVA) transmission planning process includes assessing the capacity of the transmission system to reliably deliver power from generation resources to customer loads. Due to the importance of ensuring TVA’s transmission system can accommodate its generation strategy and ensure adequate system margins to allow for reliable customer supply, we performed an evaluation to determine if TVA’s plans for transmission capacity support (1) planned generation additions and (2) demand growth. We determined TVA’s plans for transmission capacity account for generation additions and demand growth; however, we identified an increased risk to Transmission Planning and Projects’ ability to execute these plans. These included (1) gaps between budgeted funding levels and forecasted spending needed to support TVA’s planned generation and demand growth through fiscal year 2029 and (2) some transmission projects that were forecast to exceed approved cost and/or time frames, which could impact the ability of Transmission Planning and Projects to support generation additions or demand growth.
Open Recommendations
Recommendation Number | Significant Recommendation | Recommended Questioned Costs | Recommended Funds for Better Use | Additional Details | |
---|---|---|---|---|---|
1 | Yes | $0 | $0 | ||
We recommend the Vice President, Transmission Planning and Projects, work with Financial Operations and Performance to develop a strategy to align their forecasted spend and funding. | |||||
2 | No | $0 | $0 | ||
We recommend the Vice President, Transmission Planning and Projects, continue to identify opportunities to improve project estimation and execution. |