(WBIR, AP) The Tennessee Valley Authority said 750 employees have retired or resigned through a voluntary incentive program.

Another 1,000 vacant positions are being eliminated and more cuts are on the way, according to the TVA. This is the largest staff reduction the federal utility has undergone in more than 20 years.

Cuts are also planned in TVA's nuclear program and involuntary layoffs are expected later this year. The cuts are being made so staffing levels and electric rates will align better with other utilities as power consumption growth slows.

TVA spokesperson Duncan Mansfield said the company wants a $500 million reduction in annual expenses by next year.

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

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