Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (May 2014)
40 slides from Tennessee Valley Authority's corporate update, May 8, 2014
Slide 1: Board Meeting, Memphis, May 8, 2014
BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 1
Slide 2: Chairman's Report
CHAIRMAN’S REPORT BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 2
Slide 3: Allen Fossil Plant
Allen Fossil Plant MM
Slide 4: Proposed Committee Roster
CHAIRMAN’S REPORT 4 PROPOSED COMMITTEE ROSTER Audit, Risk, and Regulation People and Performance Lynn Evans, Chair Barbara Haskew, Chair Marilyn Brown Lynn Evans Mike McWherter Pete Mahurin Joe Ritch External Relations Nuclear Oversight Richard Howorth, Chair Bill Sansom, Chair Marilyn Brown Marilyn
Slide 5: President's Report
Bill Johnson President & CEO PRESIDENT’S REPORT BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014
Slide 6: Board Meeting
BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014
Slide 7: Tupelo, Mississippi
Tupelo, Mississippi 7
Slide 8: Slide 8
Slide 9: Connected to the Mississippi River
Connected to the Mississippi River
Slide 10: Tennessee River System
Tennessee River System 10
Slide 11: Energy | Environment | Economic Development
Energy | Environment | Economic Development 11
Slide 12: TVA Strategic Imperatives
TVA Strategic Imperatives RATES: maintain low rates ASSET PORTFOLIO: meet reliability STEWARDSHIP: expectations & provide be responsible stewards a balanced portfolio DEBT: live within our means Operation Objectives 12 12
Slide 13: Energy | Environment | Economic Development
Energy | Environment | Economic Development 13
Slide 14: Green First
eens FIRST
Slide 15: Right Solutions
right solutions i 15
Slide 16: Energy | Environment | Economic Development
Energy | Environment | Economic Development 16
Slide 17: Energy | Environment | Economic Development
Energy | Environment | Economic Development 17
Slide 18: Energy | Environment | Economic Development
Energy | Environment | Economic Development 18
Slide 19: Energy | Environment | Economic Development
Energy | Environment | Economic Development 19
Slide 20: Partnerships Resulted in Jobs and Capital Investment
Energy | Environment | Economic Development Partnerships Resulted in… • 33,000 jobs created and retained • Capital Investment of $5.2 billion 20
Slide 21: Energy | Environment | Economic Development
Energy | Environment | Economic Development 21
Slide 22: Energy | Environment | Economic Development
Energy | Environment | Economic Development 22
Slide 23: Energy | Environment | Economic Development
Energy | Environment | Economic Development 23
Slide 24: President's Report
PRESIDENT’S REPORT BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014
Slide 25: External Relations Committee
COMMITTEE EXTERNAL RELATIONS BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 25
Slide 26: Audit, Risk, and Regulation Committee
COMMITTEE AUDIT, RISK, AND REGULATION BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 26
Slide 27: End-User Exemption Under Dodd-Frank Act
EXTERNAL RELATIONS COMMITTEE 27 AUDIT, RISK, AND REGULATION COMMITTEE END-USER EXEMPTION UNDER DODD-FRANK ACT MAY 8, 2014
Slide 28: Finance, Rates, and Portfolio Committee
COMMITTEE FINANCE, RATES, AND PORTFOLIO BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 28
Slide 29: Financial Performance Update
FINANCE, RATES, AND PORTFOLIO COMMITTEE 29 FINANCE, RATES, AND PORTFOLIO COMMITTEE FINANCIAL PERFORMANCE UPDATE MAY 8, 2014
Slide 30: Summary
FINANCE, RATES, AND PORTFOLIO COMMITTEE | FISCAL YEAR-TO-DATE FINANCIAL UPDATE 30 SUMMARY Net Income: $504M better than plan and $419M better than Last Year Base Revenues (+$312M to plan) • Colder weather resulting in 12% more degree days Operating Expenses (+$12M to plan) • Fuel expense unfavorable
Slide 31: Weather Drives Higher Sales
FINANCE, RATES, AND PORTFOLIO COMMITTEE | FISCAL YEAR-TO-DATE FINANCIAL UPDATE 31 WEATHER DRIVES HIGHER SALES FYTD 14 Heating °Days were 12% above normal 383 Heating °Days -44 FYTD14 13 FYTD13 Cooling °Days -41 -100 -50 0 50 100 150 200 250 300 350 400 FYTD14 Var to Bud FYTD13 '14 v '13 GWh Budget A
Slide 32: Q2 Summary Income Statement
FINANCE, RATES, AND PORTFOLIO COMMITTEE | FISCAL YEAR-TO-DATE FINANCIAL UPDATE 32 Q2 SUMMARY INCOME STATEMENT Net Income favorability due to higher revenues and less routine spend FYTD14 Q2 FYTD14 Q2 Variance FYTD 13 '14 v '13 ($ millions) Budget Actual Fav/(Unfav) Actual Fav/(Unfav) Operating Reven
Slide 33: Q2 Summary Cash-Flow Statement
FINANCE, RATES, AND PORTFOLIO COMMITTEE | FISCAL YEAR-TO-DATE FINANCIAL UPDATE 33 Q2 SUMMARY CASH-FLOW STATEMENT FYTD14 Var to Bud FYTD13 '14 v '13 $ millions Budget Actual Fav/(Unfav) Actual Fav/(Unfav) Cash Flow from Operating Activities $ 1,210 $1,426 $ 216 $ 1,148 $ 278 Cash Flow used in Investi
Slide 34: Second Quarter Summary
FINANCE, RATES, AND PORTFOLIO COMMITTEE | FISCAL YEAR-TO-DATE FINANCIAL UPDATE 34 SECOND QUARTER SUMMARY Higher Sales for Local Power Companies • Colder weather with some growth Operating Expense • Productivity increases • Fuel cost unfavorable to budget with higher sales Financial • Net Income bett
Slide 35: Supplement to DZNPS Maintenance and Modifications Contract
FINANCE, RATES, AND PORTFOLIO COMMITTEE 35 FINANCE, RATES, AND PORTFOLIO COMMITTEE SUPPLEMENT TO DZNPS MAINTENANCE AND MODIFICATIONS CONTRACT MAY 8, 2014
Slide 36: Background
FINANCE, RATE, AND PORTFOLIO COMMITTEE 36 BACKGROUND • Day & Zimmerman NPS (DZNPS) performs managed task projects for nuclear utilities • At TVA, DZNPS performs a broad scope of nuclear plant modifications and maintenance work, including both capital projects and O&M tasks • DZNPS tends to provide n
Slide 37: Recommendation
FINANCE, RATE, AND PORTFOLIO COMMITTEE 37 RECOMMENDATION Increase the total value of the DZNPS contract by $350 million, and extend the contract term by two years
Slide 38: Combined Heat and Power Project
FINANCE, RATES, AND PORTFOLIO COMMITTEE 38 FINANCE, RATES, AND PORTFOLIO COMMITTEE COMBINED HEAT AND POWER PROJECT MAY 8, 2014
Slide 39: Nuclear Oversight Committee
COMMITTEE NUCLEAR OVERSIGHT BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 39
Slide 40: People and Performance Committee
COMMITTEE PEOPLE AND PERFORMANCE BOARD MEETING M e m p h i s , Te n n e s s e e May 8, 2014 40
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