Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (August 2007)
14 slides from Tennessee Valley Authority's corporate update, Aug 1, 2007
Slide 1: 0
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Slide 2: Watts Bar Nuclear Plant Unit 2 Completion Studies
Watts Bar Nuclear Plant Unit 2 Completion Studies TVA Board Meeting August 1, 2007 1
Slide 3: Agenda
Watts Bar Nuclear Plant Unit 2 Agenda Power Supply Assessment Detailed Scoping, Estimating, and Planning (DSEP) Project Environmental Review Project Benefits and Risks 2
Slide 4: Power Supply Assessment
Power Supply Assessment 7000 6000 5000 4000 MW's Demand 3000 Growth 2000 1000 0 2008 2009 2010 2011 2012 2013 3
Slide 5: Power Supply Assessment: Levelized All-In Cost of Generating Options
Power Supply Assessment $/MWh Levelized All-In Cost Of Generating Options $90 CF = Capacity Factor Assumed $78 $80 $70 $58 $57 $60 $55 $50 $44 Variable $40 Fixed $30 $20 CF CF CF CF CF $10 92% 92% 87% 87% 50% $0 Watts Bar Nuclear New Nuclear- Pulverized Coal-PC Super Critical Combined Cycle Unit 2 $
Slide 6: Why Nuclear? The Carbon Factor
Why Nuclear? The Carbon Factor EPRI Comparative Costs in 2010-2015 vs. WBN2 Levelized Cost of Electricity, $/MWh 120 110 Biomass IGCC 100 Wind (32.5% capacity factor) 90 80 NGCC ($8/MMBtu) 70 NGCC ($6/MMBtu) 60 New Nuclear 50 Pulverized Coal 40 WBN2 Rev. June 2007 30 0 10 20 30 40 50 Cost of CO2, $/
Slide 7: DSEP Project: Purpose
Watts Bar Nuclear Plant Unit 2 DSEP Project Project Purpose • Define Scope • Develop Licensing Strategy • Determine Material Condition of WBN2 • Define Schedule and Cost for Completion & Start-up • Determine Project Risk • Reduce Uncertainty in Completion Cost Estimate and Schedule Duration • To Pro
Slide 8: DSEP Project: Results
Watts Bar Nuclear Plant Unit 2 DSEP Project DSEP Results • DSEP study provided a thorough analysis. • Plant equipment and materiel condition good. • DSEP inspections revealed no significant issues. • Project risks are manageable. • Licensing • Staffing • Equipment • Mitigation plans for risks develo
Slide 9: DSEP Project: Cost and Schedule
Watts Bar Nuclear Plant Unit 2 DSEP Project Project Cost and Schedule Total Completion Capital Cost Estimate $2.49B (Year of Expenditure Dollars) Project Schedule Duration 60 mos. Project Peak Engineer & Craft Staffing 2,300 Confidence Cost/Schedule High Net Dependable Capacity Rating 1,180 8
Slide 10: Environmental Review
Environmental Review • Final Supplemental Environmental Impact Statement (FSEIS) was issued June 22, 2007. • Preferred Alternative--Complete and Operate WBN-2. – No significant environmental impacts. – Provides for use of an existing asset, reduces potential for impacts, and provides more flexibilit
Slide 11: Project Benefits and Risks
Project Benefits and Risks Benefits • Reduces the overall delivered cost of power • Avoids 6 - 8 million tons CO2 per year • Lowest fuel cost option • Fastest option to meet baseload power needs • Costs 35% less than next alternative Risks • Licensing complexity could impact cost and schedule • Near
Slide 12: Completion Study Summary
Completion Study Summary •Extensive study yielded no significant issues. •No significant environmental impacts. •Payback in 12 years from the beginning of the project. •Watts Bar Unit 2 would provide the valley with 1,180 MW of clean, safe, and reliable low-cost generation by 2013. 11
Slide 13: Board Actions Requested
Board Actions Requested • Authorization to resume all activities to complete and startup Watts Bar Unit 2. • Delegation of authority to the Chief Executive Officer to approve any procurement contract for goods and services required for execution of the project. 12
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