Knotts addresses TVA board

Florence, AL – Today the Tennessee Valley Authority Board of Directors held a public listening session at the Marriott Shoals Hotel Conference Center. Mike Knotts, CEO of the Tennessee Electric Cooperative Association, addressed the board during the listening session, and a readout of his comments is below.

Marriott Shoals Hotel Conference Center | Florence, AL | 2:00 p.m. CST

 

Good afternoon. My name is Mike Knotts, and I serve as the CEO of the Tennessee Electric Cooperative Association.

I appear here today on behalf of TECA’s 25 member local power companies who collectively serve consumers in 6 of the 7 states TVA calls home. Cooperatives are private sector, not for profit companies and TECA’s members own and operate over $6B worth of assets. Their power bills comprise over 25% of TVA’s revenues – nearly $3 billion. In most cases, that wholesale power bill constitutes between 70-80% of the cooperative’s total revenue.

In your role as a fiduciary for TVA, I’d like to ask you to think through that last statistic with me. Right now, in your mind, imagine for yourself if three-quarters of TVA’s costs were spent on just one thing?

How much attention would you devote to understanding that single cost driver? How much would you task TVA’s management to become subject matter experts and obsess over that one expenditure? I imagine it might be the first item on your agenda, every meeting.

Given that short exercise, I think you can better understand that for TVA’s local power company customers, it’s not just good business to fully understand TVA’s operations, finances, and governance processes. It is essential for our survival.

I think you can better understand why organizations like TECA and TVPPA spend so much time and effort seeking to understand your vision.

And I think you can better understand why the decisions you make about wholesale electric rates aren’t just about seeing a spreadsheet balance or satisfying bond covenants. It’s about real impact on our local communities.

So I urge you to engage directly with your customers, hear our questions, and heed our counsel.

You know, Just like TVA, local power companies are built on the hard work, sweat, and determination of some wonderful people. In fact, even though our business is so capital intensive, employing people is one of the biggest expenses an electric co-op undertakes.

So as I conclude, I’d like to ask you to join me in acknowledging the sacrifices paid by group of people who have earned one of the most prestigious titles in our industry. “Lineworkers.”

Despite extensive training and well-designed precautions, line work is dangerous and sometimes the worst can happen. Just one month ago in Bean Station, Tenn., a fine man named Nate left his home to provide electricity to his community – just as he has done for years.

Nathan Potter suffered an accident that day that took his life. He leaves behind an inspiring legacy of faith and dedication to his family and friends. He also leaves behind a grieving wife, three young daughters, and a devastated community of fellow lineworkers.

On behalf of Appalachian Electric Cooperative and all of TECA’s members, please join me in a dedicating a moment of your time and your prayers to honoring these brave men and women who serve us so honorably.

Thank you.