JOHNSON CITY, TN – Today the Tennessee Valley Authority Board of Directors held a public listening session at the James and Nellie Brinkley Center in Johnson City. Mike Knotts, CEO of the Tennessee Electric Cooperative Association, addressed the board during the listening session, and a readout of his comments is below.

James and Nellie Brinkley Center | Johnson City, TN | 2:00 p.m. EST

 

Good afternoon. My name is Mike Knotts, and I serve as the CEO of the Tennessee Electric Cooperative Association. I appear here today on behalf of TECA’s 25 member power companies who collectively serve consumers in six of the seven states TVA calls home. We are still searching for that one farmhouse across the border in Alabama to make it 7 for 7!

TECA’s members own and operate over $6 billion in assets, and their wholesale power bills comprise over 25% of TVA revenues. Cooperatives are private sector entities focused making life better for our members and the rural and suburban communities where they live work and play. At the last listening session, I encouraged you to consider that the cooperative business model, specifically the 62 generation and transmission cooperatives across America, were the only benchmark that aligns with BOTH TVA’s operations AND mission. But the 49 distribution electric cooperatives you call customers have a lot to offer you as well. 

Today, I would like to offer you some reassurance about a major initiative TVA is currently engaged in. 

I understand that you will hear an update during tomorrow’s board meeting on the progress of TVA’s Integrated Resource Plan. This is a tremendously important endeavor, and I can understand how important its successful completion is to all of you. I am serving as a member of the IRP Working Group and have been involved in the process since the beginning.  

Let me assure you, the process is working and it is working well.  

TVA is to be commended for putting a diverse group of stakeholders in the room and listening to their input. Far from entering the process with foregone conclusions – we have painstakingly considered scenario after scenario, strategy after strategy, consulted with industry experts, challenged your planners, pondered the future of the global economy, invited thought leaders to share their vision of the future and debated with your economists. This has taken a significant investment of time and energy from the members of the working group.  

The end result will be a framework to help this board – and future boards – make sound decisions. It will not tie your hands but serve as light to guide your way

A colleague of mine recently asked me to explain what we were doing. After a long dissertation full of technical jargon, I could see that his eyes were glazing over, so I explained the IRP was a lot like the weather forecast. The weatherman doesn’t make the sun shine or bring the clouds and the rain, and he doesn’t always get it right. That doesn’t stop us from checking to see if we need an umbrella before we leave home or if we will need shorts or sweaters tomorrow.  

Please know that I believe the TVA staff, the working group and all of the external experts involved in the IRP are producing a useful tool. I look forward to its completion and your adoption of its use. 

On behalf of TECA and our member cooperatives, we remain ready to work with you to ensure that TVA’s strategic direction remains focused on what is best for the people we jointly serve.  They deserve nothing less. Thank you. 

TUPELO, MS – Today the Tennessee Valley Authority Board of Directors held a public listening session at the Cadence Bank Center in Tupelo, Miss. Mike Knotts, CEO of the Tennessee Electric Cooperative Association, addressed the board during the listening session, and a readout of his comments is below.

Cadence Bank Center | Tupelo, MS | 2:00 p.m. CST

 

Good afternoon. My name is Mike Knotts, and I have the pleasure of serving as the CEO of the Tennessee Electric Cooperative Association.  I appear here today on behalf of the 25 local power companies who collectively serve consumers in Tennessee, Kentucky, Virginia, North Carolina, Georgia, and Mississippi. TECA’s members own and operate over $6B in assets, and their wholesale power bills comprise over 25% of TVA’s revenues.  

Cooperatives are unique among the TVA “family” of entities because co-ops are private companies, not government entities. Co-ops are owned by our specific, individual customers instead of a unit of government or even the public at large. This private-sector perspective brings a unique point of view and important context to the challenges we face. But because we are not for profit, we share in TVA’s purpose and labor every day to make our communities a better place. Electric co-ops empower rural and suburban Tennessee to grow and thrive, and our communities are smarter, healthier, more productive, and better connected because of electric co-ops. 

We urge each of you, as you exercise your fiduciary duty to TVA, to actively seek the advice and counsel of your private sector, cooperative partners. 

TVA and the 153 local power companies (co-op and municipal alike) have traditionally focused on our own core competencies…generation and transmission for TVA, and distribution for the LPCs. Each of the three competencies require unique skill sets and expertise. 

 So while the needs of today are beginning to blur the lines between generation and distribution, TVA and your cooperative partners remain inexorably linked through our history, common mission, and contractual relationship. 

It is that shared mission I ask you to consider today. 

Good organizations take the time to benchmark themselves against their peers, to evaluate the quality and effectiveness of its efforts. In the case of TVA, those peers are usually other large investor-owned utilities. I believe that many of the decisions you will consider tomorrow will be based on data that takes into account a comparison of this type.  

Might I suggest to you that size alone is not the only measure for determining who is similar? Mission must also be considered as key factor. While TVA is unique as a government entity with the multi-faceted purposes of energy, environmental stewardship, and economic development – please hear me say that TVA is not alone in its mission to deliver wholesale energy at the lowest feasible cost while working to make the region the best place in the country to live, work and play.

Generation and Transmission Cooperatives share this purpose – 100%. And all across America, there are G&T’s who serve their communities in the way TVA serves our region. They collectively own and operative dams with hydroelectric generation, nuclear power plants, coal and gas facilities, and many G&Ts are aggressively promoting the implementation of renewable energy into the grid. In fact, TVA’s first CEO counted over 15 years of prior experience at one of the nation’s largest G&Ts -Oglethorpe Power Corporation in Georgia.  

Co-op G&T’s should be an important source of resources, collaboration, benchmarking, and comparison for TVA staff and for you in your role as a Board member – particularly in the coming months and years as you seek new and innovative ways to fulfill our shared mission.  

On behalf of TECA and our member cooperatives, we remain ready to work with you to ensure that TVA’s strategic direction remains focused on what is best for the people we jointly serve. They deserve nothing less. Thank you. 

CHATTANOOGA, TN – Today the Tennessee Valley Authority Board of Directors held a public listening session at the Chattanooga Convention Center. Trent Scott, vice president of communications for the Tennessee Electric Cooperative Association, addressed the board during the listening session, and a readout of his comments is below.

Chattanooga Convention Center | Chattanooga, TN | 2:00 p.m. EST

 

Good afternoon. My name is Trent Scott, and I serve as Vice President of Communications for the Tennessee Electric Cooperative Association. TECA represents 25 consumer-owned electric co-ops that deliver power to 3 million homes and businesses.

In 1965 my father – Norman Scott – went to work for Southwest Tennessee Electric Membership Corporation, a TVA-served co-op in west Tennessee. He began his career as a groundman and worked his way up, retiring in 2004 as a district manager.

As a child, I remember sitting at my father’s desk following a storm. He would use Post-it Notes to keep track of power outages. These notes didn’t have GPS coordinates or addresses – just a name. He knew where each and every person lived, which substation breaker they were on and how the reports from the crews impacted them.

Today, this same task is performed by outage management software that aggregates data in real-time to pinpoint the location of damage to the grid.

We no longer live in a Post-it Note world.

Ours is an industry that evolves at a rapid pace.

Increasingly, critical areas of our economy, from education to healthcare, commerce to communication, even transportation, depend on reliable and affordable electric energy.

And while much has changed, a lot remains the same. Electric co-ops and TVA share a commitment to innovation, service, and boldly investing in our communities.

In 1983 my dad received this – a commemorative Coke bottle celebrating TVA’s 50th Anniversary. It reads “50th Anniversary, TVA, 1933–1983, Shaping Tomorrow Today.”

Much to the chagrin of my mother, this lived in my parent’s china cabinet. There in the dining room, next to grandma’s silver, was this TVA Coke bottle. My dad loved this industry and the opportunity it provided him to serve his community.

This year, TVA celebrates its 90th anniversary, and the slogan “Shaping Tomorrow Today” printed on this now 40-year-old bottle of Coke, could not be more profound.

The decisions we make today have lasting impacts.

There are great opportunities facing the Tennessee Valley, but with those come very real challenges.

As this board works to solve those challenges, let me encourage you to view co-ops as partners.

Tennessee’s electric co-ops provide TVA with well over $3 billion of revenue each year, but our partnership can represent much more. We can be a source of capacity as well. Whether it be energy efficiency and demand response programs or added flexibility to develop our own generation, electric co-ops are ready to work alongside TVA to solve the Valley’s energy needs.

We value our partnership, we share your commitments, and we’ve been here since the beginning. We want to help you “Shape Tomorrow Today.”

Thank you

NORRIS, TN – Today the Tennessee Valley Authority Board of Directors held a public listening session at the Norris Middle School in Norris, Tenn. Mike Knotts, CEO of the Tennessee Electric Cooperative Association, addressed the board during the listening session, and a readout of his comments is below.

Norris Middle School | Norris, TN | 2:00 p.m. EST

 

Good afternoon to each of you. My name is Mike Knotts, and I serve as the CEO of the Tennessee Electric Cooperative Association and represent the 25 local utilities serving nearly 3 million people who depend on their cooperative to power their community.

It is a real pleasure to be here and celebrate 90 years of TVA’s history together with you. This history is OUR history, tightly intertwined with that of the local cooperatives and cities that have connected TVA to the millions of people and business over the years.

There is no denying that the connection between TVA, local power companies, and the residents of the Tennessee Valley have made an indelible impact on the lives of generations of Americans. Our story is unique in American history. And while the issues of the day and the challenges we face may look different in 2023 than they did in 1933, we should take pride in knowing that we have literally changed history through our unchanging mission of the last 90 years. We have a great story to tell.

Taking time to reflect on this is important. Electric cooperatives innately understand and appreciate the history TVA is celebrating today because we helped shape it – both in the Valley and across the country.

When TVA was formed it was given its unique multi-faceted mission because of the specific needs of this part of the country. But, a much broader problem existed across all corners of rural America. The problem was universal rural electrification. Though cities like Memphis or Chattanooga or Knoxville had enjoyed electricity for decades, other communities and farms, like where we stand here in Norris, did not.

The solution to the national problem came in the form of the cooperative. Self-owned, private corporations that are built for the benefit of its customers. Governed by its owners. Founded on seven bedrock principles and focused on the local community. While cooperatives were not a new idea – the seven cooperative principles were first enumerated during the industrial revolution in England – cooperatives were the right idea then and continue to be the relevant idea today.

Today, TECA members serve consumers across the state of Tennessee, covering almost 75% of the state’s land mass. In addition, these same 25 utilities also serve significant portions of Kentucky, Virginia, North Carolina, and Georgia – as well some circuits in Alabama and Mississippi.  If you are keeping count, yes, that is all seven states. Collectively, these 25 locally-owned utilities provide TVA approximately 25 percent of its revenues – well over $3B dollars per year.

You know, each of the grainy, black and white photos hanging in this room has its own story to tell and lessons to be learned. I’m particularly fond of that one (gesturing to the right), as it bears a striking resemblance to my late grandmother.

And as we all know to be true, those who do not learn from the past are most certainly doomed to repeat it. So, allow me to encourage each of you to learn from the achievements we recognize today.

But let me also encourage each of you look forward – with purpose and passion – knowing that your role on this Board is important and meaningful to millions of people. Our future won’t be told though grainy, black and white photos. Our future is being determined in real time in 4k video, and our inter-connected world allows it to be seen by anyone, anywhere, anytime.

Please know that your electric cooperative customers stand shoulder to shoulder with you, and are ready to work with you to ensure that TVA’s strategic direction remains focused on what is best for the people we jointly serve. Yesterday, today, and tomorrow.

Please call on me anytime I can be of assistance to you.

 

 

Muscle Shoals – Today TECA CEO Mike Knotts addressed the TVA Board of Directors during a public listening session in Florence, Alabama. A readout of Mr. Knotts comments are below.

Marriott Shoals Hotel Conference Center | Florence, AL | 2:00 p.m. CST

 

Good afternoon. My name is Mike Knotts, and I have the pleasure of serving as the CEO of the Tennessee Electric Cooperative Association.  I appear here today on behalf of the 25 local power companies who are members of TECA, and we would like to share our most sincere congratulations to each of you who have been newly appointed, as well as those of you who are continuing your service on the Board.

The President of the United States has appointed you, the United States Senate has confirmed you, and now the people of the Tennessee Valley will rely upon your judgement and discernment. Your role is important, and the decisions you make will have lasting impacts on the communities and individuals that we jointly serve.

Delivering power requires three components – generation, transmission, and distribution – and each of these three parts require unique skill sets and expertise. As you have undoubtedly already learned plenty about, the way energy is delivered in the Tennessee Valley is unique compared to the rest of the country.

TVA’s role is that of a generation and transmission entity, with 153 locally owned and controlled entities serving the role of distributing power to the end-use consumer. This allows both TVA and the local power companies to focus on core competencies. This more distributed model – rather than a vertically integrated structure that delivers all three components in a single entity –  is not what is unique, however.

It is TVA’s ownership and multifaceted purposes that make TVA unique. TVA is a federal corporation whose assets are owned by the U.S. Treasury rather than shareholders or its customers, a G&T utility, a steward of natural resources, a provider of navigation and flood control, a regulatory body with the powers of a state Public Utility Commission, and even a police force – these many different roles are what make TVA unique.

This structure has positives and negatives for sure, but is undeniable that TVA’s mission has changed the face of the Tennessee Valley and continues to offer significant advantages that result in economic health, environmental benefits, and a focus on the needs of individuals and businesses in our communities.

Among the 153 local power companies served by TVA, TECA represents 25 cooperatively owned utilities that serve consumers in Tennessee, Kentucky, Virginia, North Carolina, Georgia, and Mississippi. And collectively, our cooperatives’ member-owners fund 25 percent of TVA’s revenues.

Unlike some of our other friends and colleagues in the local power company community, and TVA itself, electric cooperatives are private corporations. We are not units of government, and our private-sector viewpoint brings unique perspective and important context to the joint challenges we face.

But because we are not for profit, we share in TVA’s mission of service and desire to make our communities a better place.

On behalf of all of TECA’s member cooperatives, we stand ready to work with you and ensure that TVA’s strategic direction remains focused on what is best for the people we jointly serve.  Thank you for your time and attention.