UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13, 15(d), or 37 of the Securities Exchange Act of 1934
Date of
Report (Date of earliest event reported): February 5, 2009
TENNESSEE
VALLEY AUTHORITY
(Exact
name of registrant as specified in its charter)
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A
corporate agency of the United States created by an act of
Congress
(State
or other jurisdiction of incorporation or organization)
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000-52313
(Commission file
number)
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62-0474417
(IRS
Employer Identification No.)
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400
W. Summit Hill Drive
Knoxville,
Tennessee
(Address
of principal executive offices)
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37902
(Zip
Code)
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(865) 632-2101
(Registrant’s
telephone number, including area code)
None
(Former
name or former address, if changed since last report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
o Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
o Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
o Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
o Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment
of Certain Officers; Compensatory Arrangements of Certain Officers.
On
February 5, 2009, TVA announced that Preston Swafford, TVA’s Executive Vice
President of Fossil Power Group, was appointed Chief Nuclear Officer and
Executive Vice President, TVA Nuclear. Mr. Swafford is replacing
William R. Campbell, who was named Senior Vice President of Fleet Engineering,
reporting to the Chief Operating Officer (“COO”). Anda Ray, TVA’s
Senior Vice President of Office of Environment and Research, was appointed the
Project Executive for the environmental remediation of the ash spill at Kingston
Fossil Plant, reporting directly to the Chief Executive Officer
(“CEO”). Additionally, Bob Deacy was named Construction Executive for
the recovery at Kingston as well as ash and gypsum remediation efforts at all
coal plants. Mr. Deacy reports directly to the CEO on all
issues related to Kingston, and to the COO on all other
matters.
Item 8.01
Other Events.
On
February 6, 2009, Tom Kilgore, TVA’s President and Chief Executive Officer, gave
an interview in which he discussed the potential cost of TVA’s response to the
December 22, 2008 failure of a dike at an ash pond at TVA’s Kingston Fossil
Plant (the “Kingston Event”). Mr. Kilgore stated that while the
estimates of the cost of TVA’s response to the Kingston Event are still
preliminary, the cost is expected to be hundreds of millions of
dollars. Actual costs that TVA incurs in connection with its response
to the Kingston Event may be substantially higher than any preliminary estimates
due to a variety of factors. For example, the actual costs that TVA
incurs will depend to a significant extent on the corrective action plan that is
ultimately followed by TVA. In addition, any preliminary estimates do
not include any costs associated with litigation arising from the Kingston
Event. The costs associated with litigation could be
substantial. Any preliminary estimates also do not cover any costs to
modify TVA’s facilities or operating procedures to comply with any legislative
or regulatory changes that may be enacted or adopted as a result of the
attention given to the Kingston Event. Furthermore, any preliminary
estimates do not cover any costs that TVA may incur to remove substances in the
river bottom sediment that predated the Kingston Event and might be disturbed by
dredging activities. TVA continues to develop its preliminary
estimates of the cost and anticipates having a more fully developed range of
estimates to include in its Quarterly Report on Form 10-Q for the period ended
December 31, 2008, which TVA plans to file with the Securities and Exchange
Commission no later than February 17, 2009.
On
January 20, 2009, TVA filed a Current Report on Form 8-K with the Securities and
Exchange Commission in which TVA reported that the United States District Court
for the Western District of North Carolina issued its decision in the lawsuit
brought by North Carolina against TVA alleging that TVA’s operation of its
eleven coal-fired power plants in the states of Tennessee, Alabama, and Kentucky
constitute public nuisances. The court held that emissions from the
Bull Run Fossil Plant (“Bull Run”), the Kingston Fossil Plant (“Kingston”), the
John Sevier Fossil Plant (“John Sevier”), and the Widows Creek Fossil Plant
(“Widows Creek”)
constitute
a public nuisance and ordered TVA to take certain actions related to these
plants. TVA was already in the process of performing or planning to
perform some of the actions ordered by the court. For example, the
court’s instructions with respect to Bull Run and Kingston are consistent with
TVA’s current operating procedures and construction schedule, and the
modernization of the two Widows Creek flue gas desulfurization systems
(“scrubbers”) is complete or nearly complete. The court’s order would
require TVA to accelerate its schedule at John Sevier by adding scrubbers and
selective catalytic reduction systems (“SCRs”) by 2011, when the current
schedule calls for doing so by 2015. In addition, the court’s order
would require TVA to add scrubbers and SCRs at the six small units at Widows
Creek by December 31, 2013 (the largest two units already have scrubbers and
SCRs), and TVA’s current plans do not include installation of these controls on
the small units. TVA currently estimates that the total cost of
taking all of the actions required by the court would be approximately $1.8
billion through TVA’s fiscal year 2014. Of this amount, TVA was
already planning to spend approximately $0.8 billion before the court issued its
order. On January 28, 2009, TVA asked the court to clarify one aspect
of its order dealing with the schedule at John Sevier. TVA is currently
reviewing the decision and considering its alternatives.
The cost
estimates in this report are forward-looking statements. Numerous
factors could cause actual results to differ materially from those in the
estimates. Several of these factors are set forth in TVA’s Annual
Report on Form 10-K for the fiscal year ended September 30, 2008, and in other
filings TVA makes from time to time with the Securities and Exchange
Commission. TVA undertakes no obligation to update any
forward-looking statement to reflect developments that occur after the statement
is made.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
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Date:
February 9, 2009
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Tennessee
Valley Authority
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(Registrant)
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/s/
Kimberly S. Greene
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Kimberly
S. Greene
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Chief
Financial Officer and Executive
Vice
President, Financial Services
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