Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — 2007 TVIC Spring Meeting
9 slides from Tennessee Valley Authority's conference presentation, May 10, 2007
Slide 1: TVA Financial Update
TVA Financial Update 2007 TVIC Spring Meeting John Hoskins May 10, 2007 1
Slide 2: FY2007 Financial Hardspots
FY2007 Financial Hardspots Winter (Dec – Feb) • Periods of mild weather reduced sales and revenue below plan • CT acquisitions • Cost increases identified related to projects and generating unit outages Early Spring (Feb – Mar) • Dry conditions worsen, but still optimistic for summer • Additional ca
Slide 3: FYTD 2007 Weather Impacts
FYTD 2007 Weather Impacts Estimates as of April 27, 2007 110% 109% 97% 97% 99% 98% 100% 92% 90% Percent of 80% Normal 69% 70% 70% 62% 60% 50% 40% s n n n er ay es io io io s l f al w ue of at D at at al nf Po un er er en S e er ai re en R en en er R d ev eg se G lG w G R D Po ha ar ro oa g le rc yd
Slide 4: Financial Projections
Financial Projections (Unaudited) Percent Favorable/(Unfavorable) March YTD FY Forecast Operating Revenues (3.2%) (0.8%) Fuel & Purchased Power 1.9% (1.9%) O&M 8.1% 1.0% Depreciation, Amortization (3.9%) (2.5%) Interest Expense 6.6% 4.6% Net Income (13.1%) (13.9%) 4
Slide 5: FY2007 Total Delivered Cost of Power Forecast
FY2007 Total Delivered Cost of Power Forecast FY2007 Budget versus Forecast ($/MWh) $54.00 0.59 (1.06) 1.72 $52.00 (0.21) Higher 51.31 Fuel Lower Lower 50.15 0.12 Costs Purchased Other $50.00 Lower Power Expenses Lower Costs Power Projected Sales Hydro Generation $48.00 for the Year $46.00 $44.00 $4
Slide 6: FY2007 Reduction in Debt, Lease-Leaseback, and Energy Prepayment Obligations
FY2007 Reduction in Debt, Lease-Leaseback, and Energy Prepayment Obligations (millions) $600 $500 $255.1M decrease for the $400 YTD through March. $300 $200 $100 $0 -$100 -$200 Oct Nov Dec Jan Feb Mar FYTD Baseline 38.5 (85.0) (91.5) (20.2) 150.0 250.0 FYTD Actuals 38.5 (85.0) (91.5) (26.5) 153.1 25
Slide 7: YTD Fuel Cost Adjustment Costs per MWh
YTD Fuel Cost Adjustment Costs per MWh Actual versus Baseline $25.00 Higher expected costs due to Lower overall costs due to mild lower hydro generation. winter weather. $20.00 $15.00 $/MWh $10.00 $5.00 $- Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 FCA Baseli
Slide 8: Fuel Cost Adjustment Forecast
Fuel Cost Adjustment Forecast Preliminary FCA Forecast $3.5 3.10 $3.0 $2.5 $2.0 1.87 $/MWh $1.5 1.22 1.17 $1.0 0.84 0.87 $0.5 0.10 $- 1Q07 2Q07 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 Core Rate Deferred Account Rate • The FCA amount of $0.87/MWh will be applied for 4Q07 (July through September). • The FCA amo
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