Jeff Lyash, the CEO of the Tennessee Valley Authority (TVA), will retire by September after nearly six years in the role, the utility announced on Friday.
During his tenure, which spanned a growing seven-state service area, Lyash faced both successes and challenges. TVA has made notable moves in nuclear energy, including a proposal to build a small modular reactor, and set a goal to retire all its coal-fired plants by 2035. Additionally, TVA worked on establishing an electric vehicle charging network and maintained its retail electricity rates at about 80% lower than the national average, with industrial rates at 95% lower.
However, Lyash’s leadership has also faced criticism, especially from clean energy advocates. Under his direction, TVA planned to replace some aging coal plants with natural gas plants, a move that has drawn criticism from both environmental groups and the U.S. Environmental Protection Agency. Despite having a board with a Biden-appointed majority, TVA’s energy goals fell short of the former president’s target of a carbon-free energy sector by 2035.
In December 2023, TVA had to implement rolling blackouts over two days after its coal and natural gas units went offline during extreme cold weather. This situation led to changes in the system, which likely helped keep it running during a recent cold snap earlier this month when demand reached new highs.
In a statement on Friday, Lyash expressed his appreciation for TVA, saying, “TVA truly is a special place – created more than 90 years ago to improve the quality of life for more than 10 million people across this region. That mission of service continues to be our focus today.”
His retirement announcement comes after a period of scrutiny under President Donald Trump. In 2020, Trump dismissed the TVA board chairman and another board member, and called for Lyash to be replaced, proposing a cap on the CEO’s salary at $500,000.
In response to criticism, TVA highlighted that its CEO compensation ranks in the bottom quartile of the power industry. Lyash’s total pay for the 2024 budget year exceeded $10.5 million, which included pension and performance-based incentives worth millions. TVA also emphasized that it operates without federal taxpayer funding, relying instead on revenue from electricity customers.
Trump had previously pushed TVA to abandon plans to hire foreign workers for IT roles. However, during the 2020 campaign and the pandemic, TVA was largely out of Trump’s focus. As Trump has returned to office, the utility has not been involved in his political agenda. TVA spokesperson Scott Brooks clarified that Lyash’s decision to retire was unrelated to the administration or politics, noting that Lyash began discussing retirement with board members in the fall. According to a November SEC filing, Lyash is 63 years old.
Brooks also pointed out that TVA has worked under 20 presidential administrations since its founding in 1933, serving 15 different presidents, each with their own priorities.