U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

Aurora Transmission Project

Report Information

Date Issued
Report Number
2024-17486
Report Type
Inspection / Evaluation
Description
The Office of Inspector General determined risks to Tennessee Valley Authority resulting from lower-than-expected demand by a manufacturer was not considered and actions to address cost overruns were not fully implemented.  Specifically, the manufacturer’s monthly demand averaged approximately 10 megawatts (MWs) of the planned 160 MWs, which could impact TVA’s ability to recover the costs incurred to support the manufacturer.  In addition, analyses conducted by TVA identified causes for cost overruns and action plans were developed to mitigate the risk of cost overruns on future transmission projects.  However, we determined seven of eleven actions had not been implemented through process changes and actions.
Joint Report
No
Agency Wide
Yes (agency-wide)
Questioned Costs
$0
Funds for Better Use
$0
View report on Oversight.gov

Recommendations

We recommend the Senior Vice President, Commercial, Communications, and Customer Affairs, in conjunction with the Senior Vice President, Economic Development, develop a plan for future business arrangements with industrial customer to mitigate the risk of TVA not fully recovering infrastructure costs for the additional capacity.

We recommend the Vice President, Transmission Planning and Projects, ensure outstanding actions to mitigate the risk of future transmission cost overruns are completed and process changes documented.