TVA Statement on Office of Inspector General’s Report on the Watts Bar Nuclear Plant Unit 2 Estimate to Complete

May 29, 2012

On Tuesday, May 29, TVA’s Office of the Inspector General issued an inspection report regarding the Watts Bar Nuclear Plant Unit 2 construction. TVA is providing the following statement in response to the IG report:

We agree with the report’s fundamental findings and recommendations.

Our board of directors recently approved the continued construction of Watts Bar Nuclear Unit 2. The action came following a seven-month construction review, detailing the cost and time estimates to complete the facility. 

We knew the 2007 detailed scoping, estimating and planning for Watts Bar Unit 2 was aggressive but believed it was doable. We have learned, however, the execution and progress reports at the site were not adequate. We also know that initial estimates were incomplete, risk allowances were too small and site leadership ineffective.

We have taken corrective steps.

New management is in place at the site. There is a high-confidence cost estimate and schedule. The project is moving forward with a newly organized and aligned project structure. We are focused on improved performance by key contractors. The board will be provided with detailed updates on progress toward completion of Watts Bar Unit 2.

Completion of Unit 2 at Watts Bar is an integral part of achieving TVA’s balanced energy mix and our vision to provide clean, reliable power at low, competitive rates.

At Watts Bar Unit 2, as well as TVA’s entire nuclear fleet, safety and quality are the top priorities.

 Media Contact   Ray Golden, Chattanooga,             (423) 751-8400       or             423-509-5242       TVA Media Relations, Knoxville,             (865) 632-6000