The Tennessee Valley Authority has said that it plans to reduce its workforce and cut spending by $500 million in a year.

The nation`s largest public utility company has also asked employees to retire early or resign in an effect to offset some its budget.

The Chattanooga Times Free Press reported this week that severance packages are being offered to all non-nuclear employees who have been with the company for at least a year.

TVA officials say they hope the offer helps the utility limit or avoid major layoffs later this year when the utility plans to close more coal plants and limit other operations.

TVA supplies power to about 9 million people in Tennessee, Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.

(AM 1180/Chattanooga Times Free Press)