TVA meets with board seeking improvements

The March 7 meeting of the Holly Springs Board of Aldermen once again was aswarm with people calling for an improved response of the Holly Springs Utility District to weather-related outages.

Representatives with the Tennessee Valley Authority were on the agenda and were backed up by representatives from a number of agencies interested in seeing improved reliability of power supply. Those present at the meeting included a number of representatives for TVA, and individuals representing Rep. Trent Kelley’s office, the public service commission, and TVPPA (Tennessee Valley Public Power Association.

TVA also provided security for the meeting as did Holly Springs Police Department that had five officers present. Melanie Farrell, vice-president of external strategy and regulatory oversight with TVA, presented a review of HSUD’s storm response, including requirements for financial reporting and areas for improvement for the operational performance and system condition at HSUD. She specifically cited HSUD’s response to the April 2022 thunderstorm and the Jan. 31 ice storm.

There were prolonged customer outages during these two storms.

Farrell said an information gathering following these two events made TVA aware of the overall condition of HSUD’s system. Rolling out information in stages and the conditions were “unacceptable to us,” she said.

“While direct management of the electric system operations is outside TVA’s direct regulatory authority, TVA felt an obligation to share with the mayor and board these significant areas for improvement to enable HSUD to operate and manage the system in a safe and reliable manner.

“The local power company’s operation is the responsibility of the local power company governing body.”

The Holly Springs mayor and board of alderman is the local governing body of HSUD.

She cited public complaints of long delays in power restoration during those two events.

The Public Service Commission also received numerous calls regarding the performance of the utility and allegations of preferential treatment, she said.

TVA received 171 complaints from HSUD customers through TVA’s Compliant Resolution Program during the April 2022 outages. TVA received an additional 1,376 complaints during the January/February 2023 ice storm, Farrell said.

She called the number of complaints “unprecedented.”

By comparison, in a typical year TVA receives approximately 500 complaints over its seven-state region from 153 local power companies.

It generates power for 10 million customers over the Tennessee Valley covering some 80,000 square miles.

TVA works in partnership with 153 local power companies, including HSUD, to provide safe, clean, reliable power.

While HSUD exercises local control, it is subject to TVA’s regulatory authority.

Farrell said significant weather events created prolonged power outages over the last 12 months and there were reliability issues at HSUD.

She cited unsafe working conditions during the order of restoring power during the April storm.

Farrell also cited delinquent financial reporting requirements by HSUD as an issue, specifically failure to submit required financial reports.

In TVA’s report to the city issued Friday, March 3, 11 contributing factors and a list of 14 areas of improvement were in the report.

“While outside TVA’s direct authority, we feel these will allow you to provide safe and reliable service,” Farrell said.

TVA will provide best practices related to storm response vegetation management. TVA’s regulator staff is available to meet with HSUD to discuss regulatory requirements with the city and HSUD. TVPPA, through Distributors Insurance, is offering to provide resources to HSUD to perform a system assessment at no cost to HSUD, she said.

“We urge you to engage these immediately,” Farrell said. “We encourage you to make a response plan for these suggested areas of improvement in 45 days. TVA would like to make the report available to the public by the end of the week.”

The aldermen and mayor’s response followed.

Ward 2 alderman Andre Jones asked about a local rate adjustment implemented by TVA.

Farrell said that originates from the local power distributor, not TVA.

“Does TVA vote on it?” he asked.

Farrell said TVA reviews the request and insures a rate increase is warranted, before approving a local rate adjustment.

Gipson asked about a special assessment by TVA in 2018.

Farrell said she had no information in hand.

Gipson said Derrick McGill with TVA said the rate increase was on the TVA side.

“My concern today is the clear need of the Holly Springs system to investigate safety concerns and investments needed,” Farrell said.

She said she believes safety was not foremost in HSUD’s response to the storm events.

Gipson said she campaigned on safety and that Holly Springs neighbors had challenges during outages, too.

“Are you able to send help?” asked Ward 1 alderman Bernita Fountain.

Farrell said field staff accountants, contract support and third party contract support are types of the support provided historically.

Gipson said the previous administration was late on reporting requirements and HSUD has spent the majority of its time catching up on those reports.

Inventory was inadequate, Gipson said.

“We had to clear up what was already there,” the mayor alleged.

Farrell said the last significant regulatory issue from HSUD was closed out in 2019 and celebrated in 2020.

The current administration took office July 1, 2020.

“We are referring to the current delinquent reports (the 2021 and 2022) reports,” Farrell said.

Jones asked about the best practices report.

“Derrick McGill (with TVA) provides the vegetation report and storm recovery best practices,” Farrell said.

Gipson said there were issues with vegetation management when she took office.

Jones asked when a meeting with TVPPA and the board of aldermen can be arranged.

Ward 4 alderman Patricia Merriweather was anxious to get on with the task of studying HSUD operations and management.

“I would like an overall assessment, looking at all components of HSUD - not piecemeal,” she said. “I need it broken down to understand where the shortcomings are, what we are doing to fix it or if it is fixed.

“What is our plan?” she asked. “That will be my recommendation. This is the first step. We promised constituents we would create a plan of action. We are a mayor and board who care about our constituents. We are moving in a corrective manner. What are we going to do about it?

“TVA is the (electricity) vendor. Number one is to get a general manager. We are looking to get viable candidates who can lead this department. I really would like for us to have a working session as we did in the beginning when we came in. They took us step-by-step then.”

Ward 3 alderman Colter Teel expressed dismay.

“I’m not very hopeful, to be honest,” he said. “Two years…I feel like I’ve been here 30 years. We’ve talked about it and nothing has been done. You can’t even call out there to give an outage report.

“I’m not hopeful. We have done nothing to show for what we have done. I’m tired of talking. Mayor Gipson, I’m asking for your resignation.”

“How long have you been with TVA?”

Farrell said over 20 years.

“How many times have you had to come into the city and do this?” Teel asked.

“This is the first time TVA has had to come and address not only the financial but the operational side for the conditions we have been made aware of,” Farrell said.

“This did not happen overnight,” Merriweather said. ”It’s got to start with a full assessment of financial support.”

Jones responded.

“I want it to be very clear, this system has been neglected for years,” he said. “I’m eager to find a date for a meeting with TVPPA and take corrective action.”

Alderman at large Dexter Shipp, who arrived at the meeting late, asked Farrell what were TVA’s concerns.

“Lack of control of vegetation, making sure lines are not energized (when working), to engage work on this sytem,” said Farrell

Jones asked if a meeting with TVA for March 21 is still scheduled.

Attorney John Keith Perry said the report from TVA was only received Friday (March 3), insufficient time for the city to read over it. He requested 14 days to read over the report.

Perry recommended a special meeting be arranged with TVA for further communications.

Farrell said the meeting would concern how to get resources lined up for HSUD and said she will provide a full report to be shared by the board.

“The city needs to make sure the board of aledrmen’s response to the assessment is also provided,” Farrell said.

Shipp asked if TVA would make a full assessment of the system to see what needs to be replaced.

Farrell said TVPPA would come in to work that out in full detail.