Nashville, TN – The Tennessee Valley Authority board has approved increasing the utility chief executive's compensation by nearly a half million dollars.
The increase comes a month after the largest power rate increase in three decades took effect.
Meeting in Nashville, board members approved improving President and CEO Tom Kilgore's compensation from about $2.7 million to $3.27 million, effective with the next fiscal year.
Kilgore's base salary of $650,000 has remained the same since he became CEO in 2006. He said after the meeting he would not decline the board's decision to raise it to $850,000.
On Oct. 1, TVA put an effective 20 percent electricity rate increase into effect, raising the average residential monthly power bill by between $15.80 and $19.80.
(Copyright 2008 by The Associated Press. All Rights Reserved.)