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Controversial Former Progress Energy CEO Appointed to Head TVA
http://blog.cleanenergy.org/2012/11/05/controversial-former-progress-energy-ceo-appointed-to-head-tva/
Controversial Former Progress Energy CEO Appointed to Head TVA
November 5th, 2012 Clean Energy, Utilities Dr. Stephen A. Smith
Todays appointment of former Progress Energy CEO William Johnson as the new CEO of the Tennessee Valley Authority (TVA) is raising the eyebrows of clean energy advocates across the region, including here at SACE. Though willing to maintain an open mind, Im surprised that TVAs Board would hire Mr. Johnson with his controversial past.
Of course, Im referring to the sudden removal of Johnson by the Duke Energy Board in July just hours after his appointment as CEO of the company following the merger with Progress Energy. This highly unusual series of events sent shockwaves through the utility industry, setting off regulatory hearings and triggering considerable back and forth between the two companies. While we may never know the full story of why Johnson was so abruptly dismissed, there are some known facts which would make one question whether or not he is the best fit to lead TVA.
Under Johnsons leadership, Progress Energy Florida (PEF) chose to self-manage an upgrade project at its troubled Crystal River 3 (CR3) nuclear reactor located north of Tampa, FL as opposed to bringing in outside experts. Progress chose a do it yourself approach to a complex steam generator upgrade that led to major cracks in the containment vessel. Progress Energys attempts to repair the cracks have led to further damage to the containment structure. Duke Energy had such a lack of confidence in the numbers that Progress Energy reported, the utility commissioned an independent report itself to evaluate the costs, which was recently released to the Florida Public Service Commission you can find the full report here.
The reactor has been offline since September 2009 and, if successfully repaired, will cost at least $1.5 billion to repair and wont be back in service until 2016. Customers are already paying $300 million per year for replacement power. The critically damaged reactor is now commonly referred to as the Humpty Dumpty reactor. Johnson oversaw the companys failed decision to self-manage the steam generator upgrade, rather than have experienced vendors execute the upgrade. He has been accused of failing to communicate the seriousness of the reactors problems leading up to the Duke-Progress merger, low balling the cost to make needed repairs and doggedly wanting to repair the reactor despite mounting evidence that shutting it down may be the better fiscal decision for ratepayers in Florida.
<snip>
Controversial Former Progress Energy CEO Appointed to Head TVA
November 5th, 2012 Clean Energy, Utilities Dr. Stephen A. Smith
Todays appointment of former Progress Energy CEO William Johnson as the new CEO of the Tennessee Valley Authority (TVA) is raising the eyebrows of clean energy advocates across the region, including here at SACE. Though willing to maintain an open mind, Im surprised that TVAs Board would hire Mr. Johnson with his controversial past.
Of course, Im referring to the sudden removal of Johnson by the Duke Energy Board in July just hours after his appointment as CEO of the company following the merger with Progress Energy. This highly unusual series of events sent shockwaves through the utility industry, setting off regulatory hearings and triggering considerable back and forth between the two companies. While we may never know the full story of why Johnson was so abruptly dismissed, there are some known facts which would make one question whether or not he is the best fit to lead TVA.
Under Johnsons leadership, Progress Energy Florida (PEF) chose to self-manage an upgrade project at its troubled Crystal River 3 (CR3) nuclear reactor located north of Tampa, FL as opposed to bringing in outside experts. Progress chose a do it yourself approach to a complex steam generator upgrade that led to major cracks in the containment vessel. Progress Energys attempts to repair the cracks have led to further damage to the containment structure. Duke Energy had such a lack of confidence in the numbers that Progress Energy reported, the utility commissioned an independent report itself to evaluate the costs, which was recently released to the Florida Public Service Commission you can find the full report here.
The reactor has been offline since September 2009 and, if successfully repaired, will cost at least $1.5 billion to repair and wont be back in service until 2016. Customers are already paying $300 million per year for replacement power. The critically damaged reactor is now commonly referred to as the Humpty Dumpty reactor. Johnson oversaw the companys failed decision to self-manage the steam generator upgrade, rather than have experienced vendors execute the upgrade. He has been accused of failing to communicate the seriousness of the reactors problems leading up to the Duke-Progress merger, low balling the cost to make needed repairs and doggedly wanting to repair the reactor despite mounting evidence that shutting it down may be the better fiscal decision for ratepayers in Florida.
<snip>
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Controversial Former Progress Energy CEO Appointed to Head TVA (Original Post)
bananas
Nov 2012
OP
Angry Dragon
(36,693 posts)1. Why when people rape the taxpayers are they not thrown in prison??
Fraud, SEC violations
Sancho
(9,067 posts)2. unbelievable...
ROBROX
(392 posts)3. COOK THE BASTARDS
My first reactor job was in 1975. There were established practices which required plans to complete all tasks. It looks like GOP people got involved and COOKED the process with plans to SAVE money. Basically a political process does not work in a commercial process.
It is so sad that many people will have to pay the bill for a commercial failure. I hope th criminals are punished and not allowed to escape to damage other peoples future. Maybe they were VULTURE CAPITALISTS???
bananas
(27,509 posts)5. k&r - and welcome to DU! nt
secondvariety
(1,245 posts)4. Typical-
the greasy turds always float to the top.
Uncle Joe
(58,355 posts)6. Kicked and recommended.
Thanks for the thread, bananas.