Operating and maintenance costs at the TVA are higher than most comparable utilities, even though the federal utility is able to borrow money at lower rates than other privately owned utilities, a report says.

According to a 41-page audit of TVA finances released today, TVA’s Inspector General said the utility “fares poorly” in containing its operating and maintenance expenses. TVA ranks among the bottom third of electric utilities in the South in its operating and maintenance expenses, the audit found.

“TVA is seeking to reduce non-fuel operating and maintenance costs but has made limited progress to date,” the audit said.

Operating costs per kilowatt-hour of electricity generated at TVA have flattened over the past three years from the increases in the previous five years, the Inspector General said.

“In our judgment, TVA’s overall financial performance for this assessment period was adequate; however, the agency faces several significant financial challenges,” the report said.

Read more in tomorrow’s Times Free Press.