[Senate Hearing 113-785]
[From the U.S. Government Publishing Office]
S. Hrg. 113-785
HEARING ON THE NOMINATIONS OF VIRGINIA
T. LODGE AND RONALD A. WALTER TO BE
MEMBERS OF THE BOARD OF DIRECTORS OF
THE TENNESSEE VALLEY AUTHORITY
=======================================================================
HEARING
BEFORE THE
COMMITTEE ON
ENVIRONMENT AND PUBLIC WORKS
UNITED STATES SENATE
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
__________
NOVEMBER 13, 2014
__________
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COMMITTEE ON ENVIRONMENT AND PUBLIC WORKS
ONE HUNDRED THIRTEENTH CONGRESS
SECOND SESSION
BARBARA BOXER, California, Chairman
THOMAS R. CARPER, Delaware DAVID VITTER, Louisiana
BENJAMIN L. CARDIN, Maryland JAMES M. INHOFE, Oklahoma
BERNARD SANDERS, Vermont JOHN BARRASSO, Wyoming
SHELDON WHITEHOUSE, Rhode Island JEFF SESSIONS, Alabama
TOM UDALL, New Mexico MIKE CRAPO, Idaho
JEFF MERKLEY, Oregon ROGER WICKER, Mississippi
KIRSTEN GILLIBRAND, New York JOHN BOOZMAN, Arkansas
CORY A. BOOKER, New Jersey DEB FISCHER, Nebraska
EDWARD J. MARKEY, Massachusetts
Bettina Poirier, Majority Staff Director
Zak Baig, Republican Staff Director
C O N T E N T S
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Page
NOVEMBER 13, 2014
OPENING STATEMENTS
Cohen, Hon. Steve, U.S. Senator from the State of Tennessee...... 1
Boxer, Hon. Barbara, U.S. Senator from the State of California... 2
WITNESSES
Lodge, Virginia T., Nominated by President Obama to be a Member
of the Board of Directors of the Tennessee Valley Authority.... 3
Prepared statement........................................... 4
Responses to additional questions from Senator Boxer......... 5
Walter, Ronald A., Nominated by President Obama to be a Member of
the Board of Directors of the Tennessee Valley Authority....... 5
Prepared statement........................................... 6
Responses to additional questions from Senator Sessions...... 7
HEARING ON THE NOMINATIONS OF VIRGINIA T. LODGE AND RONALD A. WALTER TO
BE MEMBERS OF THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY AUTHORITY
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THURSDAY, NOVEMBER 13, 2014
U.S. Senate,
Committee on Environment and Public Works,
Washington, DC.
The committee met, pursuant to notice, at 11:19 a.m. in
room 406, Dirksen Senate Building, Hon. Barbara Boxer (chairman
of the committee) presiding.
Present: Senator Boxer.
Senator Boxer. The committee is in order.
I apologize, we are running late. Both sides are having
their leadership elections right now, so this is going to be a
very unusually easy hearing for both of you.
Representative Cohen, I am going to call on you first.
Thank you so much for being here from the Ninth District, and
you are here to introduce Mr. Walter. So please proceed.
OPENING STATEMENT OF HON. STEVE COHEN,
A MEMBER IN THE U.S. CONGRESS FROM THE STATE OF TENNESSEE
Mr. Cohen. Thank you, Senator. I appreciate the courtesy in
allowing me to come and appear today.
Indeed, it is in my perspective an honor to be associated
with Ron Walter, as it would be a credit to the TVA to be
associated with Mr. Walter as well. He has been a model citizen
to the city of Memphis.
And while he does have some political background, having
worked with one of my predecessors, Congressman Harold Ford,
Sr., in the 1980's, his life has not been as a political man,
but a civic man. If you look through his vitae, he has been a
member of the board or the president or chairman of the board
of almost every important community and civic organization of
the city of Memphis.
His life is one of moral rectitude and probity that would
be the envy of anyone. He will do a great service to the TVA if
he is affirmed. He has intellect and he has character and
independence of judgment.
So I introduce to you my constituent and as fine a person
as I know to serve on this board or any other board, Mr. Ron
Walter.
OPENING STATEMENT OF HON. BARBARA BOXER,
U.S. SENATOR FROM THE STATE OF CALIFORNIA
Senator Boxer. Thank you so much, Congressman, and you are
free to go. I know you have other things to attend to.
I want to begin by welcoming both of our nominees, Virginia
Lodge and Ronald Walter, who have been nominated to serve as
members of the TVA, the board of directors of the Tennessee
Valley Authority. I appreciate both of you, your commitment to
public service.
TVA has an essential responsibility to communities it
serves, including providing power to approximately 9 million
people. TVA should be a leader, in my view, in providing
reliable power, but also reducing the dangerous air pollution
our children and our families are forced to breathe. I urge you
to continue TVA=s increased focus on clean and renewable
energy.
It is also important that TVA focus on the management of
waste from its coal-fired plants. It has been almost 6 years
since the tragic coal ash disaster at the TVA Kingston fossil
plant in Tennessee. TVA must remain committed to reducing the
dangers associated with coal ash ponds and ensuring that
neighboring communities are kept safe. As nominees, I would
like to hear how you will make sure this remains a top priority
for the board of directors.
Another important area is the safety of nuclear power
plants operated by TVA. Unfortunately, in recent years, the NRC
has identified safety problems at TVA's nuclear power plants.
Potential safety concerns cannot be ignored and must be
addressed quickly, especially in the wake of the Fukushima
nuclear disaster. And I want to share with both of you the fact
that we had to close down a very large nuclear power plant, San
Onofre, in California, because it was leaking radioactive,
water with radioactivity in it. And it had to do with the re-
engineering of the plant that was not well done.
So, caution, a cautionary tale. You are dealing with
elements here that are very dangerous. I know you know that.
TVA has an important mandate, to be a national leader in
technological innovation, in low cost power and in
environmental stewardship. And I know, I read the charge, it
was such a visionary act when it was created. So you are going
to be part of history, if I have anything to say about it, and
I look forward to hearing from you.
So why don't we start with you, Ms. Lodge.
[The prepared statement of Senator Boxer follows:]
Statement of Hon. Barbara Boxer, U.S. Senator
from the State of California
Ms. Lodge and Mr. Walter, thank you for being here today.
The Tennessee Valley Authority is a unique component of
government. It has a long, 80-some year history of providing
electricity to the good folks in Tennessee and some of the
surrounding states.
Because of this, I know that you are being affected by the
relentless onslaught of rules against the utility industry by
the President's EPA. It started with Utility MACT a few years
ago; then came the 316(b) Water Rule this past year. Now
climate change regulations are on the drawing board and a
reduction in the ozone standard is in the works.
All of these regulations carry an enormous price tag:
Utility MACT is estimated to cost about $100 billion to
implement, and one recent study by NERA Economic Consulting
estimated the climate change regulations for existing sources
will cost between $350 billion and $500 billion to implement.
From an economic standpoint, these rules translate into
millions of lost jobs across the economy, and they are coming
at a time when Americans are increasingly wary of our economy's
health. It's the No. 1 political issue.
The American people do not want more environmental
regulations that increase energy costs and threaten job
creation. In fact, Americans have consistently put
environmental issues at the bottom of their priority list.
Gallup's most recent poll, from just before the elections, had
climate change listed as the very lowest priority among voters.
This makes sense.
The impact of these rules on the consumer cost and the
reliability of our electric system are two of the key things
that TVA needs to evaluate on these rules. Just last week the
North American Electric Reliability Corporation issued an
alarming report that the EPA's existing power plant rule may
have a negative impact on electricity reliability. TVA needs to
evaluate how its specific region will be affected so that the
people who live there know how EPA's policies are going to
affect them. This is especially true given your exposure to
nuclear, which EPA claims its rules will help while industry
assures us they will not.
I know many people believe that the bulk of the costs
imposed by the new climate change rules are going to be offset
by efficiency improvements and savings generated from relying
more heavily on natural gas. But efficiencies that save money
don't need to be mandated, and we need look no further than our
friends at the Sierra Club to understand the direction the EPA
is headed on natural gas.
Michael Brune, the group's Executive Director, recently
said that ``Natural gas is a dirty fossil fuel. It's not a
bridge. It's a gangplank. There's no way to build an economy
fueled by clean energy that includes natural gas.''
The great work this Committee has done over the years
revealing the deep collusion that goes on between environmental
groups and the EPA should confirm to us that the Agency's next
move will be on the route of squeezing natural gas out of the
energy mix.
EPA is underestimating the true impacts of its
environmental rules to convince the American people that they
aren't as bad or extreme as they really are.
We know better. The vision of our country under aggressive
environmental policies like the ones being crafted by EPA is a
gloomy one, and the questions of reliability and economic
impact need to be fully evaluated and deeply understood by this
Committee and the Congress. This is what I plan to focus on in
the coming months, and I look forward to better understanding
how these things will affect TVA and its customers.
STATEMENT OF VIRGINIA T. LODGE, NOMINATED BY PRESIDENT OBAMA TO
BE A MEMBER OF THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY
AUTHORITY
Ms. Lodge. Thank you, Chairman Boxer.
I am honored to have been nominated by President Obama to
serve on the Tennessee Valley Authority Board of Directors.
When I moved to Tennessee 36 years ago, I knew little about
TVA other than history and government classes. What I learned
quickly was how crucially important it was and is to the
region. There was almost no one from my generation or older who
doesn't have a vivid memory of TVA lines being run to their
homes or their businesses and the life-changing effect it had.
My mother-in-law's family lives in a small town called Gold
Hill in Chambers County, Alabama. My father-in-law's family
lives and runs a cast iron foundry in another small town, South
Pittsburgh, Tennessee. It would be impossible to overState the
important role that TVA has held and continues to hold in their
worlds.
Being commissioner of the Tennessee Department of Human
Services for 8 years gave me valuable experience in the
complexities of operating a large public entity. Perhaps at
least as valuable was the experience of traveling to all 95
counties in Tennessee, visiting DHS offices and meeting with
local businesses and community leaders.
Much like our sister States in the region, these
communities spoke of the need for economic development, the
need for jobs, and the need to keep electricity rates low, both
to attract business and to help the poor, especially the
elderly, disabled and young children. We worked with TVA on
weatherization and LIHEAP projects, which made dramatic
improvements in the lives of our neediest citizens.
The greatest reward of being commissioner is the ability to
effect changes in public policy to improve the lives of our
citizens and their communities. Serving on the TVA board would
offer that same benefit.
Since leaving State government, I have had the opportunity
to experience the corporate sector. I was brought into my
current company, FSI, as it was struggling to survive. There
had been no strategic planning to guide the development and
operation in the way that successful business require. We were
able to turn the company around, make it profitable and
continue to grow it.
I learned in both government and private business that the
cornerstone of success is to gather good and unbiased data, set
clear goals and use the data to inform important decisions
about what resources will get you to those goals most
efficiently.
If confirmed, I pledge to work closely with you, my fellow
board members and the staff of TVA to promote TVA's mission to
keep rates low, aid in economic development and work toward
addressing environmental issues. I appreciate your
consideration of my nomination and thank you for the
opportunity to be here today.
[The prepared statement of Ms. Lodge follows:]
Statement of Virginia T. Lodge, Nominated by President Obama to be a
Member of the Board of Directors of the Tennessee Valley Authority
Good morning, Chairman Boxer, Ranking Member Vitter, and
distinguished members of the Committee. I am honored to have
been nominated by President Obama to serve on the Tennessee
Valley Authority Board of Directors
When I moved to Tennessee, thirty-six years ago, I knew
little about TVA other than from history and government
classes. What I learned quickly was how crucially important it
was and is to the region. There is almost no one from the
region, my generation and older, who doesn't have a vivid
memory of TVA lines being run to their home or business and the
life changing effect it had. My mother-in-law's family lives in
the small town of Gold Hill, Alabama in Chambers County. My
father-in-law's family lives and runs a cast iron foundry in
another small town, South Pittsburgh, Tennessee. It would be
impossible to overState the important role that TVA has held
and continues to hold in their worlds.
Being Commissioner of the Tennessee Department of Human
Services for 8 years gave me valuable experience in the
complexities of operating a large, public entity. Perhaps at
least as valuable was the experience of traveling to all
ninety-five counties in Tennessee visiting the DHS offices and
meeting with local business and community leaders. Much like
our sister states in the region, these communities spoke of the
need for economic development, the need for jobs and the need
to keep electricity rates low both to attract business and to
help the poor ,especially the elderly, disabled and young
children. We worked with TVA on weatherization and LIHEAP
projects which made dramatic improvements in the lives of our
neediest citizens. The greatest reward of being a Commissioner
is the ability to effect changes in public policy to improve
the lives of our citizens and their communities. Should I be
confirmed, serving on the TVA Board would offer that same
benefit.
Since leaving State government, I have had the opportunity
to gain experience in the corporate sector. I was brought in to
my current company, FSI, as it was struggling to survive. There
had not been strategic planning to guide the development and
operation in the way that successful businesses require. We
were able to turn the company around, make it profitable and
continue to grow it. I learned in both government and private
business that the cornerstone for success is to gather good and
unbiased data, set clear goals, and use the data to inform
important decisions about what resources will enable you to
achieve those goals most effectively.
If confirmed, I pledge to work closely with you, my fellow
board members and the staff of TVA to promote TVA's mission to
keep rates low, aid in economic development, and work toward
addressing environmental issues.
I appreciate your consideration of my nomination and thank
you for the opportunity to be with you today.
Responses by Virgina T. Lodge to Additional Questions
from Senator Boxer
Question 1. Will you commit to visiting Bellefonte Nuclear
Plant as a TVA Board Member and meeting with local community
and business leaders about the role of TVA in the county and
the plant's impact?
Response. If confirmed as a TVA Board Member, I will want
to visit the Bellefonte Nuclear site and commit to engaging
with local community leaders and ratepayers.
Question 2. As electricity demand rises in the Tennessee
Valley region, will you also commit to examining the costs and
benefits associated with completion and operation of one or
more nuclear reactors at the Bellefonte Nuclear Plant?
Response. If confirmed, I commit to examining the costs and
benefits of a fully operating Bellefonte Nuclear Plant.
Senator Boxer. Thank you.
Mr. Walter.
STATEMENT OF RONALD A. WALTER, NOMINATED BY PRESIDENT OBAMA TO
BE A MEMBER OF THE BOARD OF DIRECTORS OF THE TENNESSEE VALLEY
AUTHORITY
Mr. Walter. Madam Chairman, I am enormously honored to be
nominated by President Obama to serve on the Board of Directors
of TVA.
I thank my good friend, Congressman Cohen, who brought me
to the attention of the President, the congressional Black
Caucus and others who have supported my nomination.
I also thank my wonderful wife of 27 years, 5 months and 1
day, who is seated behind me, Mary Ann Walter. I also thank you
for your consideration as I appear before you to seek your
approval.
My entire adult working life, I have been fortunate to have
had great opportunities in both the public and private sectors.
In 1980, I was hired by Memphis Light, Gas and Water, TVA's
largest customer, as assistant to the president. One of my
first assignments was working with TVA representatives on a
conservation project in a challenged urban area of Memphis.
This joint venture taught low-income residents how to insulate
their homes efficiently and inexpensively, helping them achieve
conservation and financial savings.
Also in this project, supplies were bought where possible
at local businesses to benefit the community. So in a very
small way, this was a seed planted in the neighborhood to grow
and nurture economic development. This experience gave me a
great appreciation of the outreach of TVA and had a significant
impact on me. In later years, as MLGW vice president of
customer relations, I communicated and worked with key
stakeholders dealing with budgets, developing strategic
initiatives and carrying out departmental and corporate
objectives. I learned much about government and business from
that assignment.
Fine tuning my business skills and work with government
continued at WREG TV, the CBS affiliate in Memphis, where I
serve as president and general manager. I am proud to add, it
is the No. 1 station in Memphis. Managing this station requires
budget achievement, evaluation of new technologies, interfacing
with the FCC, creation and implementation of short and long
term goals, problem solving and teamwork.
My volunteer life includes service on community, State and
regional boards, ranging from higher educational institutions,
including my alma mater, Clark University in Worcester,
Massachusetts, hospitals, and civil rights groups to charitable
entities whose goals are the meet the needs of the people. This
board work and these professional experiences have one thing in
common: a focus on and a good understanding of the operations
and compliance with rules and regulations that govern them.
When institutional challenges are faced, sound solutions
must be sought. Quite often, there are no easy fixes or
shortcuts. Board members must work hard and smart as they
evaluate matters and render decisions. Objectivity and
independence are essential.
Board members of TVA have similar responsibilities as they
ponder TVA's diverse challenges, such as choosing and
developing alternate power sources, dealing with pension
reform, debt reduction, rates, river management and protecting
the environment and generation of power. As a successful person
in business and a community servant, I feel, if approved, I can
assist TVA in these and other tasks.
Finally, as a fourth generation Memphian and a fourth
generation member of the Tennessee Valley, it is my belief that
TVA must be preserved for future generations. I welcome the
opportunity to serve on this board, should I be approved by
you.
Thank you.
[The prepared statement of Mr. Walter follows:]
Statement of Ronald A. Walter Nominated by President Obama to be a
Member of the Board of Directors of the Tennessee Valley Authority
Madam Chairman, ranking member Vitter and distinguished
members of the Committee, I am enormously honored to be
nominated by President Obama to serve on the board of directors
of the Tennessee Valley Authority. I thank Congressman Cohen,
who brought me to the attention of the President, the
congressional Black Caucus and others who have generously
supported my nomination. I also thank you for your
consideration as I appear before you to seek your consent and
approval.
My entire adult working life, I have been fortunate to have
great opportunities in both the public and private sectors.
In 1980, I was hired by Memphis Light Gas and Water
Division (MLGW)--TVA's largest customer--as Assistant to the
President. Prior to that, I defined TVA as a complex and large
wholesaler of power, which in fact it primarily is. However,
one my first assignments at MLGW enhanced that perception. I
was assigned to work with TVA field representatives on a
conservation project in a challenged urban area of Memphis.
This joint venture between TVA and MLGW showed low-income
residents how to insulate their homes efficiently and
inexpensively, helping them achieve consumption and financial
savings thereby improving their well-being.
We also bought supplies, where possible, at local
businesses to benefit the community. In a very small way, this
was a seed planted in the neighborhood to grow and nurture
economic development. This experience gave me a greater
appreciation of the outreach of TVA and had a significant
impact on me.
Working at MLGW really opened my eyes. Through my later
experience there as Vice President of Customer Relations, I
communicated and worked with key utility stakeholders:
customers, company colleagues, the media, community and
political leaders and others. I dealt with budgets, and
developed strategic initiatives and executed departmental plans
as well as worked with the management team in carrying out the
company's greater objectives. I learned much about government
and business from that assignment.
Fine tuning my business skills and work with government
continued in my role at WREG-TV, the CBS Affiliate in Memphis,
Tennessee, where I serve as President and General Manager.
Managing this television station, which is the No. 1 station in
the Memphis Television Market, requires my team and me to
achieve budgets, evaluate new technologies, manage professional
staffs, interface with the FCC, create and implement short and
long-term goals and solve difficult problems. It is a
deliberate team effort.
My extensive volunteer life includes service on community,
State and regional boards, ranging from universities and
colleges, hospitals and civil rights groups to charitable
entities whose goals are to meet the needs of people. My board
and work experiences have this in common: a keen focus on and a
good understanding of operations and compliance with rules and
regulations that govern them.
There is no doubt that in my volunteer and professional
work, institutional challenges are faced and sound solutions
are sought. Quite often, there are no easy fixes or short cuts.
Board members and staff must work hard and smart as they
properly evaluate matters and render decisions. Objectivity and
independence are essential.
Board members of TVA have similar responsibilities as they
consider TVA's diverse challenges such as choosing and
developing alternative power sources, dealing with pension
reform, debt reduction, rates, river management, and protecting
the environment in the generation of power. As a successful
businessman and a community servant, I feel I can assist this
venerable organization in these and other tasks.
And finally, as fourth-generation resident of the Tennessee
Valley, it is my belief that TVA must be preserved for future
generations, and I welcome the opportunity to serve on this
board, if confirmed. Thank you again for holding this hearing.
I look forward to taking your questions.
Responses by Ronald L. Walters to Additional Questions
from Senator Sessions
Question 1. Will you commit to visiting Bellefonte Nuclear
Plant as a TVA Board Member and meeting with local community
and business leaders about the role of TVA in the county and
the plant'simpact?
Response. In my experience, community input and close-up
exposure are valuable factors in making business decisions. If
confirmed, I would gladly visit the Bellefonte Nuclear site and
meet with ratepayers and area leaders to gather their important
counsel.
Question 2. As electricity demand rises in the Tennessee
Valley region, will you also commit to examining the costs and
benefits associated with completion and operation of one or
more nuclear reactors at the Bellefonte Nuclear Plant?
Response. If confirmed, I commit to analyze the costs and
benefits of TVA completing construction work on the Bellefonte
Nuclear Plant.
Senator Boxer. To me, as I look over your dedication, I
don't question it, so I am very excited that you are willing to
take this on.
So I just want to make sure, with a yes or a no, do you
share my view, and if you don't, please explain why, that
making sure that your priorities are low-cost energy and safe,
clean energy, those would be what you look for?
Mr. Walter. Yes.
Ms. Lodge. Yes.
Senator Boxer. Because that is key, and I don't see those
conflicting at all, by the way. I think they really do go hand
in hand. Here is the reason. If you just focus on low cost
energy but you don't look at safe energy and something happens,
the cost to clean up is going to be absolutely enormous.
So I am going to ask you two questions, which are official
questions. Do you agree, if confirmed, actually it is three, do
you agree, if confirmed, to appear before this committee or
designated members of this committee and other appropriate
committees of the Congress and provide information, subject to
appropriate and necessary security protection, with respect to
your responsibilities? Ms. Lodge?
Ms. Lodge. I do.
Senator Boxer. Mr. Walter.
Mr. Walter. Yes, I do.
Senator Boxer. Second, do you agree to ensure that
testimony, briefings, documents and electronic and other forms
of communication of information are provided to this committee
and to its staff and other appropriate committees in a timely
manner?
Ms. Lodge. I do.
Mr. Walter. Yes, I do.
Senator Boxer. And last, do you know of any matters which
you may or may not have disclosed that might place you in any
conflict of interest if you are confirmed?
Ms. Lodge. I do not.
Mr. Walter. No, I do not.
Senator Boxer. Well, the reason there are not more people
here is not a lack of interest. I can tell you that. We feel it
is very important to fill these slots because you can't operate
an organization as great as TVA with empty slots. We tried hard
to work with the Republicans on the committee, but what turned
out to be a small, a shorter meeting, turned out to be a longer
one. Even my meeting is still going on with my leadership but I
ran out to do this.
So they are not here. So we are going to do this. We are
going to keep the record open for how long for the questions?
Staff. Friday at 5 o'clock and they need to be back Monday
at 5 o'clock.
Senator Boxer. OK, so we are going to get your questions to
them?
Staff. We will get them to you Friday at 5 o'clock.
Senator Boxer. Friday at 5, you will get the questions. And
then you, do you agree to get those back to us very quickly, by
Monday?
Mr. Walter. Yes.
Ms. Lodge. Yes.
Senator Boxer. OK. Well, welcome, congratulations on these
nominations. It is such a strange time in between Congresses.
The gavel is going to change right here, and as I have said
before, elections have consequences, and I grabbed that one
back from James Inhofe and I am going to hand it back. But I am
working on not grabbing it too tight, because that is what he
did to me.
[Laughter.]
Senator Boxer. But right now I have it, and I am proud to
have held it for 8 years. I welcome you here and I hope that
you get these nominations confirmed as soon as possible.
Because we need you.
Thank you. We stand adjourned.
[Whereupon, at 11:33 a.m., the committee was adjourned.]
[all]