Statement Regarding Recent Inspector General Report on Fixed-Wing Aircraft

TVA has reviewed and responded to the Office of the Inspector General’s audit report on our fixed-wing aircraft purchases and use. While we disagree with the OIG’s conclusions in some areas, we agree their audit findings do support the need to improve documentation and recordkeeping for our processes.

“Safely fulfilling our mission across an 80-thousand square mile service area, as well as inspecting TVA facilities and engaging stakeholders outside that area, while maintaining fiscal responsibility requires us to appropriately document the business justifications of our resources, including aircraft,” said Mike Skaggs, TVA Executive Vice President of Operations. “Safety and cost were the key factors used to make the correct decisions on obtaining the aircraft, and we appreciate the OIG’s recommendations that will allow us to better document those decisions.”

Audited aircraft were purchased to allow safe and timely travel to smaller airports throughout the Tennessee Valley that are not served by commercial airlines. Key safety performance characteristics were a deciding factor when selecting a jet aircraft over a turboprop - operating cost differences were only seven percent per mile. A focused purchase process resulted in $2.8 million in savings below fair market value for two aircraft.

TVA’s flight scheduling and recordkeeping system contributed to a number of the OIG’s questions and concerns. We are currently procuring a new software system to address this shortcoming, and are improving other processes and procedures consistent with the OIG’s recommendations.