Dec 08 2004

SHELBY ANNOUNCES REFORM OF TVA

President Signs Consolidated Appropriations Bill into Law

U. S. Senator Richard C. Shelby (R-Ala.), a member of the Senate Appropriations Committee, announced today that President Bush signed into law the Consolidated Appropriations Act for Fiscal Year 2005. Included in this legislation are provisions that will restructure the board of the Tennessee Valley Authority (TVA).

Senator Shelby said, "I am pleased that this important language to modernize TVA has been included in the Consolidated Appropriations Act. In the history of TVA, an Alabamian has never served as a member of the board. I am hopeful that this expansion from three board members to nine will provide Alabama and other member states with an opportunity to be represented. In addition, the restructuring of the TVA board will provide for increased accountability and oversight of TVA."

Specifically, the provision will do the following:

 

  • Creates a nine-member, part-time TVA board comprised of individuals with management expertise.
  • Board members will continue to be nominated by the President and confirmed by the Senate.
  • At least seven of the nine Board members must be residents of the TVA service territory.
  • Board members will serve five-year terms, instead of the current nine-year terms.
  • The new Board will hire a Chief Executive Officer (CEO) to manage the day-to-day operations.
  • These members shall affirm support for the objectives and missions of TVA, including being a national leader in technological innovation, low-cost power, and environmental stewardship.
Also included in the Consolidated Appropriations Act is a provision that will improve TVA’s financial reporting and disclosures and increase the transparency of TVA’s operations by requiring them to submit to the Securities and Exchange Commission’s (SEC) disclosure process.