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.
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