Mr. Speaker, Glenn McCullough steps down today as the 12th and last full-time Chairman of the Tennessee Valley Authority Board. I have worked with thousands of people during my years in Congress., Chairman McCullough has been one of the…
Mr. Speaker, Glenn McCullough steps down today as the 12th and last full-time Chairman of the Tennessee Valley Authority Board.
I have worked with thousands of people during my years in Congress., Chairman McCullough has been one of the kindest and most honorable with whom I have had the privilege to work.
Glenn McCullough, in my opinion, has been an outstanding Chairman for TVA. He has had the extremely difficult job of attempting to balance all kinds of competing interests, and he has done the job well.
He has done great things for the environment and the employees at TVA while still remembering that many TVA ratepayers and low-income people also need help, too.
Chairman McCullough is a man of high integrity who should be remembered as one of the finest Chairman TVA has ever had. He has worked as hard as possible for the people of the Valley, and this Nation is a better place today because of his service.
I would like to call to the attention of my colleagues and other readers of the Record the following article from the May 16 edition of the Knoxville News Sentinel.
Departing Chairman Says Utility Still Faces Financial, Environmental
Challenges
(By Duncan Mansfield)
Departing Chairman Glenn McCullough said the Tennessee
Valley Authority is stronger than when he arrived in 1999,
but the nation's largest public utility still faces
financial, environmental and competitive challenges.
Tougher soot and smog requirements on coal-fired power
plants could cost TVA $4 billion to $5 billion beyond the $6
billion it has already spent or committed for pollution
controls.
Rising fuel prices for its fleet of fossil plants, gas
turbines and nuclear stations could force further cost-
cutting and a likely electric rate increase that would affect
some 8.5 million people receiving TVA power in Tennessee and
six surrounding states.
Yet as McCullough nears the end of his term on Wednesday,
May 18, as the 12th and final full-time chairman in the 72-
year history of TVA, he remains optimistic about TVA's
future.
``I think TVA will continue to be a high performer,''
McCullough told The Associated Press in a recent interview in
his 12th floor office at TVA headquarters in Knoxville.
McCullough, 50 was mayor of his hometown of Tupelo, Miss.--
TVA's first member city--when he was appointed to an
unexpired term on the three-member TVA board in 1999 by
President Clinton. In 2001, President Bush elevated
McCullough, backed by then-Senate Majority Leader Trent
Lott, R-Miss., to chairman.
During his tenure, TVA changed its Tennessee River
watershed plan to improve recreational use, set rising peak-
power demand records, adopted a rate increase in 2003 to pay
for coal plant pollution controls and developed the first
commercial wind farm in the Southeast.
TVA also reduced a nearly $28 billion long-term debt by
$1.8 billion. In doing so, the agency eliminated hundreds of
jobs and put one of its twin headquarters towers in Knoxville
up for sale as surplus. The tower sale is pending, and the
payroll stands at 12,700--compared to more than 30,000 in the
1980s.
The self-financing government agency with a $7 billion
budget also took heat over extravagant travel and
entertainment spending by executives but moved quickly to
crack down with new internal policies.
However, McCullough said the boldest actions were the 2001
write-off of $3.4 billion in
non-producing assets, including three unfinished nuclear
reactors, and the $1.8 billion decision to restart a
mothballed reactor at the Browns Ferry station in Alabama by
2007.
``It was a good business decision, not an easy one,'' he
said of the write-offs, while the gamble on the Browns Ferry
reactor--60 percent complete--could pay off in meeting
baseload demand through 2014.
``All of those things kind of roll off the tongue, but I
tell you, there are thousands of people that did their job
better so that TVA could have record generation and record
clean air and record economic growth and record debt
reduction,'' McCullough said.
Looking ahead, McCullough said a rate increase, which has
become rare in recent years at TVA, seems inevitable because
of rising fuel costs that can't be controlled.
``I think the future board will have to determine what
rates need to be and when adjustments are necessary,'' he
said. ``I don't know how much, and I don't know when.''
McCullough doesn't know if he will be on an expanded part-
time board that is being created after he leaves. Senate
Majority Leader Bill Frist, R-Tenn., pushed the board
restructuring to make the group more open and responsive. The
White House has yet to name nominees.
McCullough sees plenty of opportunities and challenges
ahead for them.
TVA is working with two national consortiums studying
designs and licensing for the next generation of nuclear
plants, while TVA assesses the feasibility of using its
unfinished Bellefonte nuclear plant in Alabama as a possible
project site.
Meanwhile, TVA continues to review efficiencies and costs
of new ``clean coal'' technologies for its fossil fleet.
McCullough believes coal and nuclear should remain the
foundation of TVA's power system.
``We are also looking at the business model,'' McCullough
said. ``There could be some opportunities for TVA to do joint
ventures with perhaps other utilities or other entities that
make good business sense.''
He cited TVA's deal set up a few years ago to buy power
from the Red Hills Power Plant and Mississippi Lignite Mining
Co. near Ackerman, Miss., as an example of a successful joint
venture.
Meanwhile, growing private and commercial development along
the Tennessee River continues to stir resentment among the
families of former residents displaced by TVA's hydroelectric
dam projects in the 1930s and '40s.
McCullough is sympathetic to a point. ``Land in the valley
is almost sacred. That is a characteristic of the South that
I am frankly proud of--`Don't mess with the land.' I
understand that,'' he said.
``But if you look on the TVA seal, you see the words
`Progress Through Resource Development,' '' he said. ``And
you can't make progress without some development.''
McCullough said he is looking forward to going home to
Tupelo and spending time with his wife, Laura, and two
teenage sons, and weighing his career options.
More low-key than his predecessors, McCullough said being
chairman of TVA, like being mayor of Tupelo, was ``a
wonderful opportunity to make a positive difference.''
``I didn't ask to come to TVA, and I didn't ask to be
chairman. But I was asked to do this job, and it was a unique
opportunity,'' he said. ``If you get it right, if you make
good decisions and fulfill the mission of TVA, then the
people of the valley can be better off for generations to
come. And that can be satisfying.''