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Showing posts from September, 2014

Have TVA Bond Payments Violated the TVA Act?

TVA’s pension costs were $539,000,000 in 2013. The pension costs of TVA employees are part of the costs to operate, maintain and administer TVA’s power properties. TVA collected $539,000,000 from ratepayers to cover those costs in 2013, but made no payment to cover its pension costs for 2013. However, TVA paid $2.4 billion for redemptions and maturities of TVA bonds in 2013. TVA also incurred a $1.4 billion interest expense in 2013, most of which must have been paid to TVA bondholders. These actions by TVA have contributed to the underfunded status of TVARS. It appears that TVA's failure to pay its pension costs is in conflict with the TVA Act and TVA’s 10-k report filed with the Securities and Exchange Commission (SEC). The TVA Act mandates that principal and interest be paid from revenues “after deducting all costs to operate, maintain and administer its power properties.” TVA’s 2013 10-k states that “costs of operating, maintaining, and administering TVA's power pr...

TVARS Election Results

TVARS News Troyani Wins TVARS Board Election In the recent election for a director vacancy on the TVA Retirement System Board, employees voted to re-elect Tony Troyani. His new three-year term will run from Nov. 1, 2014, to Oct. 31, 2017. Of the 4,227 votes cast, Troyani received 2,298 (54.36 percent). Steve Ellis received 1,929 votes (45.64 percent).