TVA offers incentives to cut staff, expenses
America's biggest public utility will get smaller this year.
The Tennessee Valley Authority, seeking to cut $500 million a year in operating expenses, outlined plans Wednesday to encourage many of its 12,600 employees to resign or retire early from jobs not deemed essential by utility managers.
TVA officials said staff cuts are needed to bring the utility's costs and rates more in line with neighboring utilities and to offset an expected four-year decline in electricity sales.
"In order to perform our mission, we must curtail our spending and focus on internal cost management," utility spokesman Duncan Mansfield said. "We will continue with our core business, but some things we will stop doing."
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