This paper constitutes corporate governance practices in a quasi-public federal organisation. The Tennessee Valley Authority (TVA) is faced with major challenges in the semi-governmental sector with deregulation. Corporate governance is the series of checks and balances that support the administration of separation between ownership and control of an organisation. “Fundamentally, governance is about stewardship of someone else’s property” (Matheson, 2010). TVA is the largest state owned electric utility in the South-eastern part of the United States. The company provide other services like flood control, navigation, agricultural, economic and industrial development. The company supplies electricity to more than 160 municipalities and cooperative …show more content…
Initially, federal appropriations funded all TVA operations. Appropriations for the TVA power program ended in 1959, and appropriations for TVA’s environmental stewardship and economic development activities were phased out by 1999. TVA is now fully self-financing, funding operations through electricity sales and power system bond financing. TVA makes no profit and receives no tax money. Today, TVA’s power service territory includes most of Tennessee and parts of Alabama, Georgia, Kentucky, Mississippi, North Carolina and Virginia, covering 80,000 square miles and providing electricity to more than 9 million people at prices below the national average. TVA sells electricity to 155 local power companies and 57 directly served industries and federal facilities. During September, 2011 - Site Selection magazine has named the Tennessee Valley Authority one of the top 10 North American utilities for achievement in economic development for the sixth straight …show more content…
TVA supplies electricity to over seven million people in a power service area covering 80,000 square miles, including most of Tennessee and parts of Mississippi, Alabama, Georgia, North Carolina, Virginia, and Kentucky. It markets about one-half of the total Federal production of electricity amounting to 159,571 million kWh in 2000.10 The power system as of September 30, 2000 included twenty-nine hydroelectric plants, eleven fossil plants, five operating nuclear units in three sites, one pumped storage hydroelectric plant, and four gas turbine plants. Fuel sources are predominantly fossil (63 percent), nuclear (31 percent), and hydro (6 percent).11 Year 2000 revenues totalled $6.7 billion and book value assets were $33.2