Wamp Criticizes Severance Package For Former TVA Executive

Chattanooga (AP) -- US Representative Zach Wamp criticized the Tennessee Valley Authority for paying $1.6 million in a severance package to a top executive who left the utility after three years.

Wamp said the payment to Chief Financial Officer Michael Rescoe leaves a sour taste in the mouth of ratepayers who had two rate increases in the past year.

Wamp said that TVA needs to recognize that it is a quasi-government agency.

Rescoe left in November to take a similar position at Travel Services conglomerate.

He signed a contract guaranteeing he would receive two years' compensation if his position changed. Tom Kilgore was the agency's first CEO as part of a change in the management hierarchy.

Rescoe's agreement was disclosed last week with TVA's announcement of $10.5 million in bonuses for executives this year.

Copyright 2006 by the Associated Press. All rights reserved.