Runyon, facing difficult times as 9th chief of TVA, will be sworn in today

Runyon, facing difficult times as 9th
chief of TVA, will be sworn in today

PHIL WILLIAMS
Staff Writer

KNOXVILLE — Former Nissan
auto executive Marvin Runyon will be
sworn in today as the ninth TVA
chairman, faced with the task of con-
vincing skeptics he can save the em-
battled federal utility.

Runyon, 63, was confirmed last
month by the U.S. Senate to head the
TVA despite criticism that he has no
expertise in electrical power genera-
tion, flood control or other matters
handled by the agency.

"There are a lot of unanswered
questions as he takes office," said
Mark Seigel, executive director of the
Tennessee Valley Energy Coalition, a
citizens watchdog group. He is also a
steering committee member of the
TVA Board Appointment Coalition, an
umbrella group for a number of citi-
zens organizations.

"There is widespread disillusion-
ment with TVA as an agency in the
valley. The challenge to him is to ad-
dress the serious management prob-
lems TVA has in a way that will re-
store confidence in the agency and
demonstrate an openness to listening
to the people throughout the valley."

The outdoor swearing-in ceremony
is scheduled for 8 a.m. CST on the pla-
za between the twin towers of the
TVA headquarters here in Knoxville.
It will follow an early morning break-
fast with union leaders representing
TVA workers.

Rain turning to snow — a winter
storm watch for some four inches of
snow has been issued for East Tennes-
see today — could force the ceremo-
nies to be moved indoors.

Northern Alabama District Judge
E.B. Haltom Jr. is scheduled to ad-
minister the oath of office to Runyon.
TVA Directors Charles H. (Chili)
Dean Jr. and John B. Waters also will
participate in the ceremony.

Following the ceremony, Runyon is
scheduled to attend a reception for
TVA employees in Knoxville and then
fly to similar gatherings in Chattanoo-
ga and Muscle Shoals, Ala., sites of
major TVA facilities. He is scheduled
to deliver speeches in all three cities.

Runyon, president and chief execu-
tive officer of Nissan Motor Manufac-
turing Corp. USA until his appoint-
ment as chairman of the three-mem-
ber TVA board, takes control of TVA
in one of the agency's most turbulent
times in its 54-year history.

A regional study panel last year
concluded that TVA suffers from a
host of problems throughout its net-
work because of an "endemic lack of
a workable structure, management,
accountability and adequate compen-
sation."

The most pressing problem facing
TVA is its nuclear program. It began
as an ambitious idea to generate pow-
er from 17 nuclear plants, but has
turned into a near-disaster with eight
units canceled outright, four others on
hold and the five operational plants
shut down because of safety concerns.

The utility now serves 7 million
people in seven states and TVA pre-
dicts the demands for its energy will
continue to rise. TVA had planned to
meet that demand through the now-
stalled nuclear program and now
must restart the plants and find alter-
native energy sources.

Some lawmakers have proposed
that the agency sell its energy produc-
tion facilities to private companies.
Others have proposed a restructuring
of the entire management structure,
beginning with the TVA board.

"Runyon is coming into a very
tough situation at TVA, where they
are spending about 60% of their bud-
get on a nuclear program that has not
produced a lot of electricity since
1985," Seigel said. He added that the
nuclear program has caused power
rates to double since 1980.

"It's an open question as to what he
will actually do."

Runyon, who has declined to an-
swer specific policy questions until he
has learned more about TVA, has said
he hopes to bring Japanese methods
of sharing major decision with em-
ployees, known as "participatory
management," to the federal utility.

His speech today is expected to fol-
low that line.

"I think that the people who are
doing the job know the most about
that job, and you should have input
from those people before decisions
are made that are going to affect
those jobs," Runyon said late last year
to a Huntsville, Ala., audience.

While his management ideas may
have been formed in a 44-year career
with Ford and Nissan, Runyon said:
"These ideas will work in any busi-
ness setting where they are applied
with commitment, even a public utili-
ty."

Runyon fills a vacancy on the
board created by the resignation of
Richard Freeman in February 1986.
TVA directors serve nine-year terms.