The former head of Progress Energy Inc. in Raleigh, N.C., has been named president and chief executive officer of the Tennessee Valley Authority.

The TVA board of directors announced the appointment of William D. Johnson Monday morning. Johnson, 58, was chairman, president, and chief executive office of Progress Energy, an electric utility, from October 2007 to July 2012, a TVA press release said.

He will start at TVA, an $11 billion federal agency, on Jan. 1. Johnson will succeed Tom Kilgore, 64, who has served as TVA’s first president and CEO since 2006, the press release said.

TVA Board Chair Bill Sansom said in a Monday press conference at TVA’s Knoxville headquarters: “We are very fortunate to have someone of Bill Johnson’s caliber as TVA’s next president and CEO. Bill is a seasoned CEO with deep experience leading a company with a diverse energy portfolio—from coal and gas to nuclear, hydro and renewables. TVA will benefit from his strong leadership skills, deep industry expertise, and ability to drive employee engagement.”

According to Sansom, Johnson’s annual compensation will include a $950,000 salary and potential other compensation of $3 million. It  may be awarded based on short- and long-term incentives tied to performance goals and retention incentives, the press release said.

“I am excited and honored to be selected to lead this organization in its mission of providing low-cost and ever cleaner energy, and promoting stewardship of the resources of the Tennessee Valley,” Johnson said. “I am particularly pleased to be following in the footsteps of Tom Kilgore, an outstanding leader whom I have long admired.”

Johnson was with Progress Energy (previously CP&L) in a number of roles since 1992, including president and chief operating officer of Progress Energy, group president for Energy Delivery, president and chief executive officer for Progress Energy Service Company LLC, and general counsel and secretary for Progress Energy Inc. He was instrumental in the merger between Progress and Duke Energy, the press release said.

Prior to that, Johnson was a partner with the Raleigh office of Hunton and Williams, where he specialized in the representation of utilities.

Johnson served as vice chair and on the executive committee of the Edison Electric Institute and was chairman of the board of directors of the Nuclear Energy Institute. He was also a member of the boards of directors of the Institute of Nuclear Power Operations, Nuclear Electric Insurance Limited, and other community and charitable organizations.

He has a a bachelor’s degree in history from Duke University and a law degree from the University of North Carolina at Chapel Hill.

Kilgore will continue to lead TVA until Johnson’s arrival, and then support his smooth transition into the federal agency, the press release said. Johnson will work from TVA’s headquarters in Knoxville.

The Tennessee Valley Authority is a corporation owned by the U.S. government, and it provides electricity to nine million people in parts of seven southeastern states.