Laura Smith

The committee reviewed the FY26 Audit Plan presented by PricewaterhouseCoopers and discussed the recommendation for the approval of the external auditor and related fees. Additionally, the committee addressed topics discussed during an executive session and covered miscellaneous business items.

The meeting focused on an operational update regarding Winter Storm Fern, including discussions on infrastructure, vegetation management, and the implementation of LiDAR technology for risk prioritization. An update on an ongoing independent after-action review was provided. The Board approved significant vegetation management service contracts to enhance response capabilities, resolutions recognizing staff and designating a Lineman Appreciation Day, and a request for unclaimed funds from the state. Furthermore, a comprehensive list of purchases and contracts exceeding the established threshold was reviewed and approved, and the Board ratified actions taken by the Civil Service Board.

The committee discussed updates regarding the Integrity Line, receiving a report on two closed investigations. An internal audit overview was presented, resulting in the approval of a modification to the Internal Audit Plan to include a storm expenditure audit due to environmental risks. The committee reviewed audit reports on environmental safety and operations, noting the remediation of Q1 audit observations. Additionally, the committee approved a new five-year contract with Baker Tilly for internal audit and consulting services, with a not-to-exceed amount of $7,000,000.

The Board meeting included updates on the independent review of Winter Storm Fern, an assessment of the storm's impact, and discussions on grid hardening. Key actions included approving a five-year contract for IT support services, authorizing engineering services for an underground system study, and allocating TVA Community Care matching funds for low-income customer bill assistance. Furthermore, the Board approved various purchases and contracts for materials, supplies, and services, ratified actions taken by the Civil Service Board regarding personnel rules, and recognized employees and linemen for their contributions.

The meeting included a safety presentation on spring driving and an update from the legal committee regarding the acceptance of the quarterly legal department report. Legal counsel provided a status report on the independent after-action review of winter storm Fern, noting that the final report is expected by mid-June and suggesting the appointment of a dedicated staff member to manage the implementation of recommendations. The CEO provided an update on recent spring storm response efforts and the progress of the four-pillar improvement program, which covers emergency management, communications, restoration estimation, and resiliency. The board discussed the need for a damage prediction model, enhancements to the emergency response plan, and the formalization of storm duty roles for employees.