Report: TVA Executives Pocket More Than $3 Million for Fossil Fuel Deployment
Report: TVA Executives Pocket More Than $3 Million for Fossil Fuel Deployment Center for Biological Diversity
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Executives at Tennessee Valley Authority Receive $89.7 Million in Pay and Bonuses
WASHINGTON— Executives at the Tennessee Valley Authority have taken home $89.7 million in pay and bonuses over the past four years, $3 million of which is tied to decisions to deploy new fossil fuels, according to a report released today by the Center for Biological Diversity.
“Perverse Pay: Bonuses at the Tennessee Valley Authority Fuel Gas-Filled Future” found that TVA operates under a compensation structure that has incentivized executives to plan one of the country’s largest gas buildouts this decade. That’s despite the worsening climate emergency, unreliability of fossil fuel energy, and jacked-up energy prices.
New Performance Metrics for TVA’s Board
Today’s report outlines new performance metrics the federal utility’s nine-member board should adopt so executives can be rewarded instead for promoting renewable and resilient energy and advancing environmental justice.
“TVA’s board is handing out gold stars for mediocrity when it should be demanding A-plus work on a fossil-free future,” said Gaby Sarri-Tobar, energy justice campaigner at the Center and lead author of the report. “It’s atrocious that ratepayers are paying millions for TVA executives to continue burdening families with pollution, high energy bills, and deadly pipelines for decades to come. The board should toss out bonuses that keep the top brass in the fossil fuel past and adopt new metrics to prioritize renewable energy, resilience, and environmental justice.”
TVA: Largest Federal Utility in the Nation
TVA is the largest federal utility in the nation, generating electricity for more than 10 million customers in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina, and Virginia.
CEO Jeff J. Lyash is the country’s highest-paid federal employee and earned more from fossil fuel-related bonuses in 2021 and 2022 than the president of the United States did in annual salary.
Under Lyash’s direction, TVA has approved 5,000 megawatts of new gas and planned for more than 150 miles of new gas pipeline across Tennessee. TVA has also approved the first rate hike in four years, implemented rolling blackouts for the first time in TVA’s 90-year history after the failure of several coal and gas plants, and trucked millions of tons of toxic coal ash through Black neighborhoods in Memphis.
Construction of Kingston Gas Plant
Lyash recently approved the construction of the Kingston gas plant and its accompanying 122-mile-long pipeline, instead of a renewable energy alternative. He ignored the Environmental Protection Agency’s request for a supplemental environmental review after the utility failed to address gaps in its cost and emissions analyses. With this new gas plant, Lyash could see a bonus of up to $400,000.
Incentivizing Renewable Energy
TVA’s current bonus structure awards fossil fuel deployment but offers no incentives for renewable energy. Today’s report outlines new performance metrics like a renewable portfolio standard aligned with federal clean energy goals that the board can adopt to incentivize executives and staff to meet annual clean energy targets. Bonus pay should also be tied to expanding access to distributed energy resources like rooftop and community solar, demand response, and energy efficiency, today’s report says.
TVA is currently 57% fossil-fueled; solar and wind make up only 4% of TVA’s entire energy mix.
Impact on Communities
TVA’s policies have hit communities hard, disproportionately burdening communities of color and low-wealth residents who experience some of the highest energy burdens in the country, with some paying monthly electricity bills upwards of $200. New performance metrics geared towards environmental justice, like rewarding decreases in the number of shutoffs and equitably deploying distributed renewables in low-income communities, would incentivize executives to keep costs low and tackle the compounding climate and energy justice crises.
SDGs, Targets, and Indicators
1. Which SDGs are addressed or connected to the issues highlighted in the article?
- SDG 7: Affordable and Clean Energy
- SDG 9: Industry, Innovation, and Infrastructure
- SDG 11: Sustainable Cities and Communities
- SDG 13: Climate Action
- SDG 16: Peace, Justice, and Strong Institutions
2. What specific targets under those SDGs can be identified based on the article’s content?
- SDG 7.2: Increase the share of renewable energy in the global energy mix
- SDG 9.4: Upgrade infrastructure and retrofit industries to make them sustainable
- SDG 11.6: Reduce the environmental impact of cities
- SDG 13.2: Integrate climate change measures into national policies, strategies, and planning
- SDG 16.5: Substantially reduce corruption and bribery in all their forms
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
- Percentage of renewable energy in TVA’s energy mix
- Number of new gas approvals and gas pipelines planned by TVA
- Rate hikes implemented by TVA
- Number of rolling blackouts experienced by TVA customers
- Amount of toxic coal ash trucked through Black neighborhoods in Memphis
- Compliance with Environmental Protection Agency’s request for supplemental environmental review
- Percentage of fossil-fueled energy in TVA’s energy mix
- Energy burdens experienced by communities of color and low-wealth residents
- Number of shutoffs experienced by TVA customers
- Deployment of distributed renewables in low-income communities
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators | |||
|---|---|---|---|---|---|
| SDG 7: Affordable and Clean Energy | Increase the share of renewable energy in the global energy mix | Percentage of renewable energy in TVA’s energy mix | |||
| SDG 9: Industry, Innovation, and Infrastructure | Upgrade infrastructure and retrofit industries to make them sustainable | Number of new gas approvals and gas pipelines planned by TVA | |||
| SDG 11: Sustainable Cities and Communities | Reduce the environmental impact of cities | Rate hikes implemented by TVA | Number of rolling blackouts experienced by TVA customers | Amount of toxic coal ash trucked through Black neighborhoods in Memphis | |
| SDG 13: Climate Action | Integrate climate change measures into national policies, strategies, and planning | Compliance with Environmental Protection Agency’s request for supplemental environmental review | |||
| SDG 16: Peace, Justice, and Strong Institutions | Substantially reduce corruption and bribery in all their forms | Percentage of fossil-fueled energy in TVA’s energy mix | Energy burdens experienced by communities of color and low-wealth residents | Number of shutoffs experienced by TVA customers | Deployment of distributed renewables in low-income communities |
Copyright: Dive into this article, curated with care by SDG Investors Inc. Our advanced AI technology searches through vast amounts of data to spotlight how we are all moving forward with the Sustainable Development Goals. While we own the rights to this content, we invite you to share it to help spread knowledge and spark action on the SDGs.
Fuente: biologicaldiversity.org
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