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**Exhibit      10.23**

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| A. | There                shall be established for each manager an account on TVA's books in                the                name of the manager.  Each manager's account may consist of a                1979-1980 Subaccount, and such additional calendar year subaccounts                as TVA                may establish from time to time. |
|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | From                time to time the Board or the Board's designee, in the sole discretion                of                the Board or its designee, shall determine the amount, if any, to                be                credited to each individual manager's account.  Amounts so                credited prior to January 1, 1981, shall be credited to the 1979-1980                Subaccount.  Amounts so credited during subsequent calendar                years shall be credited to the respective calendar year                subaccount. |
|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| C. | The                Board (or its designee) may consider such factors as the following                in                determining the amounts to be                credited: |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1. | meritorious                performance; |
|--------|----|-----------------------------------------|

|   | 2. | the                feasibility of providing a basic management-wide pension credit,                taking                into account each manager's basic                salary; |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | providing                TVA managers with total compensation equivalent to prevailing rates                in                corporate, professional, and other public                organizations; |
|--------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 4. | the                need to use pension credits for recruitment                purposes; |
|--------|----|-----------------------------------------------------------------------------------------|

|   | 5. | lost                annual leave; and |
|--------|----|---------------------------------------|

|   | 6. | such                other factors as may be deemed                appropriate. |
|--------|----|--------------------------------------------------------------------------------|

| D. | Interest                on the balance of each subaccount in each manager's account shall be                credited to each subaccount at the end of each month through                March 31, 1996, and at the end of each business day                thereafter. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| E. | Beginning                effective April 1, 1996, in lieu of the interest provided in 2.D                above, each manager may elect to have all or a portion of their account                adjusted by the return as of the end of each business day in accordance                with the funds selected by the manager under procedures established                by the                Recordkeeper, provided, however that each manager who retired prior                to                January 1, 1996, and who is owed payments under this plan shall                continue to receive payments calculated based on accrued interest                and not                return.  TVA is not responsible for the effect of decisions by                any manager who elects to receive the return provided                herein.  Such decisions shall be the sole responsibility of the                manager. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| A. | Retirement |
|----|------------|

|   | 1. | Upon                a manager's retirement the balance of each of the manager's subaccounts                shall, as elected by the manager                pursuant to section 3.A.2., be paid to the manager in a                lump sum or in 5, 10, or 15 annual                installments. |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a. | As to the subaccounts                the manager has elected to receive in a lump sum, the balance in                each                subaccount, including all accrued interest and return, shall be paid                to                the manager not later than the last day of the first full calendar                month                following retirement. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b. | As to the subaccounts                the manager has elected to receive in installments, the balance                in each subaccount shall be paid in the following                manner.  On the last day of the first full calendar month                following retirement the manager shall be paid a sum equal to balance                in                the subaccount divided by the number of annual installments elected                by the                manager pursuant to section 3.A.1 including all accrued interest and                return.  Further installments shall be paid on the same date in                each of the succeeding years.  The amount of each installment                shall be determined by dividing the balance                in |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 2. | A                manager's election of a retirement benefit pursuant to section 3.A.1.a.                or                3.A.1.b. filed before January 1, 1981, shall apply to amounts                credited to the manager's 1979-1980 Subaccount and is irrevocable                and                effective pursuant to the terms of this plan in effect at the time                the                election was filed.  Effective on and after January 1,                1981, prior to TVA crediting any amount to a manager's current calendar                year subaccount, each manager may irrevocably elect in writing to                have the                balance of the manager's current year subaccount paid to the manager                pursuant to either section 3.A.1.a. or 3.A.1.b.  In the absence                of an election, the balance of the manager's subaccount shall be                paid                pursuant to section 3.A.1.a.  Notwithstanding any other                provision of this plan, each manager as of January 1, 1996, may make                a one-time irrevocable election in accordance with the conditions                established by the Senior Vice President, Human Resources, to change                any                election of retirement benefit executed prior to that                date. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3. | Any                manager whose account balance is $25,000 or less at the time he or                she                retires shall be paid that balance in a lump sum not later than the                last                day of the first full calendar month following                termination. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| B. | Termination Prior to Retirement                - Upon the termination for any reason (other than disability) of                a manager                who does not have five years of TVA service, the balance of the manager's                account, including accrued interest and return, shall be paid to                the                manager in a lump sum not later than the last day of the first full                calendar month following the                termination. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | Death Benefits                - Upon receipt of proper proof of the death of a manager who shall                have                died in service, or a former manager who had been receiving payments                under                section 3.A.1.b. above, the balance remaining in the manager's account,                including accrued interest and return, shall be paid in a lump sum                to such                person or persons, if any, as the manager shall have nominated by                written                designation filed with the Treasurer prior to the manager's                death.  In the absence of any designation of beneficiary,                payment shall be made in the following order of                precedence: |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1) | to                the widow or widower of the                manager, |
|--------|----|-----------------------------------------------------------------------|

|   | 2) | if                there is no widow or widower, to the child or children of the manager                and                descendants of deceased children by                representation, |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 3) | if                none of the above, to the parents of the manager or the survivor                of                them, |
|--------|----|---------------------------------------------------------------------------------------------------------------------------|

|   | 4) | if                none of the above, to the duly appointed legal representative of                the                estate of the manager, |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------|

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|   | 5) | if                none of the above, to the person or persons entitled to it under                the laws                of the domicile of the manager at the time of                death. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | Financial                Hardship - In the event of a financial hardship, a manager may apply                to withdraw all or part of the total amount credited to the Manager's                account.  The withdrawal shall be granted upon a determination                of the Committee, in the Committee's sole discretion that the amount                withdrawn is reasonably required to satisfy the hardship                need.  This determination shall be final and conclusive as to                all parties.  A financial hardship shall mean immediate and                heavy financial needs occurring in the personal affairs of a manager                such                as: |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 1) | need                for housing; |
|--------|----|----------------------------------|

|   | 2) | need                for the education of the manager, the manager's spouse, or                children; |
|--------|----|---------------------------------------------------------------------------------------------------------|

|   | 3) | need                due to destruction of property; |
|--------|----|-----------------------------------------------------|

|   | 4) | need                due to accident, sickness, or temporary disability affecting the                manager                or any member of the manager's immediate                family; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 5) | need                due to a death in the manager's immediate                family. |
|--------|----|--------------------------------------------------------------------------------------|

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| E. | Lump-Sum                Cash Out of Certain Accounts - TVA may in its sole discretion pay                any                retired manager whose account balance on January 1, 1996, is $25,000                or less, the entire amount of that balance in a lump                sum. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| A. | The                Board shall have control over and responsibility to oversee the general                administration of the plan; the Board or the Board's designee shall                approve all credits to managers' accounts.  The Board shall                authorize all amendments to the plan.  The Committee shall                approve all hardship withdrawals. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B. | As                requested, each Vice President shall annually recommend amounts to                be                credited to the account of each manager within that office, based                on the                factors listed in 2.C. above.  In making such recommendations,                Vice Presidents shall describe the basis for                them. |
|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| C. | The                Treasurer shall maintain an account in the name of each manager and                credit                to each account interest, return, and such other amounts as may be                approved.  The Treasurer shall make payments to managers and                beneficiaries pursuant to this                plan. |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| D. | The                Senior Vice President, Human Resources, shall have sole and exclusive                responsibility for resolving any dispute regarding this plan as it                affects                any manager below the level of Vice President.  The Board shall                have exclusive responsibility for resolving any such dispute as it                affects                any Vice President.  The decisions of the Board or the Senior                Vice President, Human Resources, as appropriate, in these matters                and the                decision of the Board or the                Board's |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| E. | As                necessary, the Office of the General Counsel shall provide legal                advice                pertaining to the plan. |
|----|-------------------------------------------------------------------------------------------------------------------------------------------------|

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000007421