exhibit10-18.htm


    
      

      

    

     

    Exhibit
      10.18



    VEHICLE
      ALLOWANCE GUIDELINES

    


    


    PURPOSE

    


    TVA’s
      Vehicle Allowance Guidelines were developed to provide an adequate and cost
      effective way to reimburse Officers and key managers whose job responsibilities
      require extensive business related travel.

    


    


    EFFECTIVE
      DATE

    


    The
      Vehicle Allowance Guidelines will be effective April 1, 2006.

    


    


    ELIGIBILITY

    


    Officers
      and key managers who meet one or more of the following requirements are eligible
      to receive a vehicle allowance:

    
      
        	
                •  

              	
                Engage
                  in extensive business-related travel during the year (13,000 miles
                  or
                  more).

              


      

      
        	
                •  

              	
                Serve
                  in a position that is subject to frequent call-out at any day or
                  hour.

              


      

      
        	
                •  

              	
                As
                  otherwise approved by the President & COO and CAO & EVP,
                  Administrative Services.

              


      



    Vehicle
      allowances are granted on a “business need” basis and must be approved jointly
      by the President and COO and CAO & EVP, Administrative
      Services.

    


    


    GUIDELINES

    


    TVA
      provides a flat-dollar bi-weekly allowance to be used toward the purchase or
      lease of a vehicle, operating fees, excess mileage, maintenance, repairs,
      accidents and insurance.  This bi-weekly allowance is considered a
      taxable benefit and will be subject to withholding and any other applicable
      taxes.  Employees who receive a vehicle allowance are eligible to
      receive mileage reimbursement for business travel at the same rate established
      for those who use their own vehicle in lieu of an “assigned vehicle” (currently
      12.5 cents per mile).  Employees who receive a vehicle allowance shall
      not use a TVA Wright Express (WEX) card or Visa Gold card for fuel
      purchases.

    


    Officers
      and key managers who receive a vehicle allowance are not eligible to have a
      TVA
      vehicle assigned to them for business related travel.

    


    The
      following rate schedule serves as a guide to be used when determining vehicle
      allowance amounts.

    


    


    Vehicle
      Allowance Rate Schedule

    


    
      	
               

              Positions

               

            	 	
              Bi-Weekly

              Vehicle

              Allowance

            	 	
              Annual

              Vehicle

              Allowance

            
	 	 	 	 	 	 
	
              Chief
                Officers/Executive VPs

            	 	
              $450

            	 	
              $11,700

            	 
	
              Nuclear
                Site VPs/Nuclear Plant Managers

            	 	
              $450

            	 	
              $11,700

            	 
	
              Other
                Officers

            	 	
              $350

            	 	
              $9,100

            	 
	
              Key
                Managers

            	 	
              $250

            	 	
              $6,500

            	 
	 	 	 	 	 	 


    


    
      
              

                  March
            22,
            2006      
    

        
        

      

      
         

        
          

        

      

      
        
        

      

    


    APPROVAL
      AUTHORITIES

    


    All
      vehicle allowances for Officers and key managers, other than for the President
      and COO and CAO & EVP, Administrative Services, will be approved jointly by
      the President and COO and CAO & EVP, Administrative Services.

    


    Exceptions
      that fall outside the guidelines will be approved jointly by the President
      and
      COO and CAO & EVP, Administrative Services.

    


    


    ROLES
      AND RESPONSIBILITIES

    


    
      Vice
        President, Human Resources

      
        	
                •  

              	
                Recommends
                  all vehicle allowances to the President and COO and CAO & EVP,
                  Administrative Services.

              


      

      
        	
                •  

              	
                Resolves
                  disputes as it affects employees who receive a vehicle
                  allowance.

              


      

      
        	
                •  

              	
                Implements
                  amendments to the Guidelines to reflect changes in organizational
                  and
                  reporting authorities.

              


      

      


      Compensation
        and HR Planning

      
        	
                •  

              	
                Develops
                  and interprets the Guidelines.

              


      

      
        	
                •  

              	
                Develops
                  amendments and corresponding changes to processes and procedures
                  related
                  to the Guidelines.

              


      

      
        	
                •  

              	
                Conducts
                  periodic reviews of the Guidelines and recommends appropriate
                  changes.

              


      

      


      Disbursement
        Services

      
        	
                •  

              	
                Makes
                  appropriate vehicle allowance
                  payments.

              


      

      
        	
                •  

              	
                Maintains
                  records and supporting documentation applicable to all employees
                  who
                  receive a vehicle
                  allowance.

              


      




    
      
              

                  March
            22,
            2006