MARCH 14, 1997

Chairman Chafee, Ranking Member Baucus, and all Members of the Committee, thank you for coming.

It is my honor to introduce to you a fellow Tennessean who is not a newcomer to this committee. Johnny Hayes was first appointed to the post of Director of the Tennessee Valley Authority by the President in 1993. Mr. Hayes came to TVA at a critical time in its history, and, should the Committee reconfirm him to the Board of Directors, will serve through another critical time in the history of the Agency. Mr. Hayes has proven himself a capable member of the Board of TVA, and the President and Vice President clearly have a great deal of confidence in his ability to meet the coming challenges posed to TVA by utility deregulation and the increasing challenges of management of the precious land and water resources of seven states.

Before his appointment to the Board, Mr. Hayes served as Commissioner of Employment Security, and later as Commissioner of Economic and Community Development for our home state of Tennessee. Before entering public service, Mr. Hayes was an independent businessman of considerable achievement, and is still active in a truly impressive list of community building initiatives, either through his church or through public service organizations.

Mr. Hayes continues to be active in the economic development of our state, especially the smaller communities. It is in this capacity that he has become so highly respected within TVA. He has overseen countless economic development projects, which have provided the critical knowhow or capital for a myriad of small business ventures, the lifeblood of many communities in Tennessee and throughout the Valley. Mr. Hayes has also overseen the advent of something we can all appreciate as we again approach our yearly appropriations cycle, as TVA will soon move all of their community and small business development financing from of the responsibility of the taxpayer and into the fully self-financed power accounts.

Mr. Chairman, I trust that the Committee members will see fit to accept the President's high recommendation and reconfirm Mr. Hayes to the Board of the Tennessee Valley Authority. His expertise and his experience will serve the Agency and the State of Tennessee well in coming years, as it has since 1993. Thank you very much.