The automatic federal spending cuts set to start taking effect Friday could result in $23 million in budget cuts at the Tennessee Valley Authority, a spokesman said Wednesday.

But the federal spending cuts—also referred to as sequestration—would probably not lead to temporary layoffs at the public utility, TVA spokesman Duncan Mansfield said. The federal cuts would trim $85 billion from defense and domestic spending for the rest of the fiscal year.

“We anticipate that we would not have to do furloughs, and we would be able to manage that through head count attrition,” Mansfield said. “At this point, we are not seeing an immediate impact.”

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