TVA's inspector general released a report that said the utility's leaders withheld information about the construction of Watts Bar Unit 2, according to The Associated Press.
In April, TVA President Tom Kilgore announced that crews needed more time and money to complete the project.
TVA leaders asked the utility board for as much as $2 billion more to complete Watts Bar 2 and moved the completion date from this year to 2015.
The additional $1.5 or $2 billion for the project will bring the new total to $4 or $5 billion, leaders said.
A few weeks later, former TVA Chairman David Freeman criticized the request for more time and more money and spoke out against nuclear power.
The Times Free Press reported Thursday that leaders ignored problems with the project.
TVA officials responded to this situation and released a plan for completion of the project.
"We knew the 2007 detailed scoping, estimating and planning for Watts Bar 2 was aggressive but believed it was doable," TVA's statement said. "We have learned, however, the execution and progress reports at the site were not adequate. We also know that initial estimates were incomplete, risk allowances were too small and site leadership was ineffective."
The statement also said that leaders have taken corrective action and that new management is in place on the site.
The completion of Watts Bar 2 is "an integral part" of TVA's balanced energy portfolio, also according to the TVA statement.