Tom Kilgore, CEO of the Tennessee Valley AuthorityTVA President and CEO Tom Kilgore, in reporting TVA performance to the Tennessee Valley Authority board members Thursday, gave what he called a failing grade to the utility's nuclear group.
"I gave it a D. We did not make our original construction and startup timetable dates for Watts Bar Nuclear Plant, and that's unacceptable," he said.
Thursday's board meeting was the last one of 2011, and Kilgore's report on the year's accomplishments included his grading of TVA performance toward reaching goals set earlier this year and in 2010.
Kilgore told the board he graded the utility's performance based on its goals. He gave TVA rates a C. Energy efficiency, cleaner air, reliability and responsibility all received A's and B's, he said.
Kilgore himself didn't get a grade - either from the board or himself. The board chose not give him a raise for 2012, nor a bonus. Board members attributed the situation to the federal salary freeze.
"While TVA compensation is based on market comparisons, we realize the CEO's current compensation is near the bottom of industry rankings," TVA Chairman Denny Bottoroff said. "Nonetheless, in keeping with the federal salary freeze, we are not adjusting the CEO's salary; neither are we adjusting his at-risk performance pay opportunity for fiscal year 2012."
Kilgore's total base salary and annual performance incentive in 2011 tallied $2.7 million. Kilgore made no comment at the meeting about not getting a salary increase.
Kilgore's $2.7 million compensation that was approved Thursday does not include deferred compensation, including pension, according to TVA spokesman Duncan Mansfield.
One of TVA's key goals is to produce low-cost electricity, but the utility's rates rank 40th in the nation rather than in the top 25 percent where it traditionally had been.
"I give this a C," Kilgore told the board.
His grade for TVA's energy-efficiency program was a B-, but added that "we need more clarity around this issue."