The General Accounting Office (GAO) conducted a study of employment practices at the Tennessee Valley Authority (TVA) to determine if practices for employing and advancing disabled veterans comply with applicable legislation. The study found that TVA's plans describing its Disabled Vererans' Affirmative Action Program were meeting regulatory requirements in fiscal year 1986. TVA has had mixed results in achieving the objectives identified in the plans. Because of declines in TVA's work force (a 42 percent reduction from 1980 to 1986), TVA's ability to hire and advance disabled veterans may have been affected. TVA has implemented activities aimed at achieving the following plan objectives: (1) providing awareness training to supervisory personnel; (2) establishing an advisory committee of handicapped employees partly composed of disabled veterans; (3) providing guidance to managers and supervisors on how they could modify jobs to accommodate disabled veterans' abilities; and (4) adopting Uniform Federal Accessibility Standards to ensure barrier-free design in TVA facilities. The Disabled Veterans' Affirmative Action Program plan objectives that TVA has not been successful in implementing included the following: (1) increasing the number of disabled veterans on its employment register; (2) increasing disabled veterans' advancement opportunities within TVA through career planning and an upward mobility program; and (3) providing placement opportunities both within and outside TVA for disabled veterans scheduled for reductions-in-force. The TVA has recently hired a disabled veteran to head a new veretans' affairs unit to deal with all veterans' issues. (KC)