Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — FY2008 Earnings Presentation
19 slides from Tennessee Valley Authority's earnings presentation, Nov 4, 2008
Slide 1: President's Report
President’s Report
Slide 2: 2008 Hard Spots
2008 Hard Spots Large unit outages Continuing drought Coal prices increased Rates increased due to high fuel costs Market turmoil
Slide 3: Drought Impacts: Replacement Power Costs
$569 M $465 M 2008 Drought Impacts Replacement Power Costs
Slide 4: 2008 Hard Spots
2008 Hard Spots Large unit outages Continuing drought Coal prices increased Rates increased due to high fuel costs Market turmoil
Slide 5: Natural Gas, Crude Oil and Coal Prices
Jan Feb Mar Apr May Jun Jul Aug Sep Oct === Natural Gas —— Crude Oil =—= Composite Coal
Slide 6: 2008 Hard Spots
2008 Hard Spots Large unit outages Continuing drought Coal prices increased Rates increased due to high fuel costs Market turmoil
Slide 7: 2008 Hard Spots
2008 Hard Spots Large unit outages Continuing drought Coal prices increased Rates increased due to high fuel costs Market turmoil
Slide 8: Market Turmoil
Market Turmoil Number of Months from Inception of Crisis to Full Recovery Past Stock Market Declines (S&P 500 Index) Courtesy of Cliffwater, LLC October 1987 Crash 2000-02 Internet Bubble 2007-08 Credit Crisis 1973-74 Bear Market -46% 2007-2008 crisis S&P 500 return depicted is from October 9, 2007
Slide 9: 2008 Highlights
2008 Highlights TVA turned 75! Best safety record in 5 years Browns Ferry 2 completed a 393-day run Browns Ferry 1 had a 268 day continuous run and saved customers $800 million nuclear units were at full power more than 300 days Bull Run scrubber is 98% complete (in service in 2009) Kingston scrubbe
Slide 10: 2008 Highlights
2008 Highlights Record runs for smaller coal plants: • Five sites set records for all units • 12 units set individual records • 2 records are still in progress 99.999% reliable power delivery for 9th year Purchase agreement for Chattanooga Office Issued TVA Environmental Policy Strong economic devel
Slide 11: Energy Education
Energy Education Photos courtesy of The Carthaginian
Slide 12: Performance Metrics
Performance Metrics
Slide 13: Rainfall and Runoff
Rainfall and Runoff 76% 47% (Eastern Valley) Fiscal Year 2008 Results
Slide 14: Generation
Generation Fiscal Year 2008 Results 56% 98% 97% 379% 116% Totals Plan 185.6 Actual 179.8 97% of Normal
Slide 15: Power Sales
Power Sales Fiscal Year 2008 Results 97% 104% 97% Totals Plan 179.4 Actual 176.3 98% of Normal
Slide 16: Financials
Financials Fiscal Year 2008 Results 102% 103%
Slide 17: Financials
Financials Fiscal Year 2008 Results 108% 104% 96% 102%
Slide 18: Monthly Bill Comparisons
Monthly Bill Comparisons n Includes customer charges, but excludes taxes n Annual averages calculated for those with seasonal rates 1,000 kWh per Month Residential Service
Slide 19: Market Price Comparisons
Market Price Comparisons Natural Gas $0 $5 $10 $15 Oct-08 Nov-08 Dec-08 $/mmBtu $0 $10 $20 $30 $40 Oct-08 Nov-08 Dec-08 $/mmBtu $0 $20 $40 $60 $80 $100 Oct-08 Nov-08 Dec-08 $/MWh $0 $20 $40 $60 $80 Oct-08 Nov-08 Dec-08 $/ton Aug Oct 10/23/2008 Composite Coal Fuel Oil Electricity
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