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TVA miscalculated how far $300M fiber budget would go, audit finds

Staff File Photo / TVA was unable to make full use of its helicopter fleet to install new fiber optic cables, creating one of the reasons the $300 million program had to reduce its scope to stay within budget, an audit found.
Staff File Photo / TVA was unable to make full use of its helicopter fleet to install new fiber optic cables, creating one of the reasons the $300 million program had to reduce its scope to stay within budget, an audit found.

The Tennessee Valley Authority had to reduce the scope of a 10-year, $300 million fiber optic expansion to fit within a budget that was based on faulty assumptions, an audit found.

While TVA originally aimed to add 3,500 miles of fiber optic lines along its 16,000-mile system of transmission lines, it now aims to add around 1,900 miles of cable, according to the report published Tuesday by the TVA Office of the Inspector General.

The TVA board approved the project in 2017 for the purpose of modernizing a communications network in use since 1988. The expansion is upgrading links between TVA’s power plants and the 153 local utilities that purchase and distribute the agency’s electricity. The program also aims to assist with integration of new power sources.

The fiber expansion initially aimed to add new lines across 31 routes, though that figure was reduced to 19 routes as of January, the audit found. The expansion is scheduled for completion in October 2027.

(READ MORE: TVA to clarify nuclear position with Trump administration, new CEO says)