Press Mention WATE.com November 30, 2004
SACE Quoted
Watchdog group concerned over future TVA bonuses
In this mention
A WATE news report examines TVA's $45 million employee bonus program amid the utility's billions in debt and recent rate hikes affecting Southern customers. Stephen Smith of the Southern Alliance for Clean Energy supports employee bonuses but expresses concern that TVA may be using them to justify future executive bonuses. The article compares TVA's bonus structure to other regional utilities and notes TVA's ongoing debt reduction efforts.
He says he supports the employee bonuses but questions whether this is the utility's way of setting up the outrageous bonuses that executives may get later
Stephen A. Smith
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Full transcript
December 1, 2004
Watchdog group concerned over future TVA bonuses
November 29, 2004
By YVONNE NAVA
6 News Anchor/Reporter
KNOXVILLE (WATE) -- While customers across the South are paying more after a TVA rate hike, employees are getting $45 million in bonuses though the utility is billions in debt. And a Watchdog group concerned over future TVA bonuses says it's concerned about bonuses to come.
TVA receives no tax money. It depends solely on rate payers. And nearly 13,000 TVA employees got bonuses, averaging more than $3,500.
The bonuses went only to employees, not executives. Those bonuses ranged from 4.3 percent to 7.5 percent of annual pay, depending on the employee's work area.
TVA spokesman John Moulton says the bonus is part of a winning performance pay out for employees who met their target goals for the 2004 fiscal year.
Moulton says the awards give employees incentives to improve the performance of the company and when employees do well, TVA wins by saving money.
6 News made calls Monday to find out if other utility companies have bonus programs for their employees. KUB doesn't have a work incentive program but conducts yearly performance reviews. If employees do well, they get raises.
The Lenoir City Utilities Board doesn't have a bonus incentive program but during the holidays, employees get a $25 Christmas gift that they sign back over to the company to go to a local charity.
6 News also talked Monday to Stephen Smith with the watchdog group Southern Alliance for Clean Energy. He says he supports the employee bonuses but questions whether this is the utility's way of setting up the outrageous bonuses that executives may get later.
TVA says it will continue to reduce its debt but it still has to run a company and that means expenses.
In 2003, TVA raised rates, cut staffing by 600 positions and promised to cut extravagant spending habits detailed in an audit.
The TVA Board of Directors will meet Tuesday morning in Coleman, Alabama.