Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (February 2015)
108 slides from Tennessee Valley Authority's corporate update, Feb 2, 2015
Slide 1: Tennessee Valley Authority Regional Energy Resource Council
Tennessee Valley Authority Regional Energy Resource Council Chattanooga, Tennessee February 2 and 3, 2015
Slide 2: 2
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Slide 3: Safety Moment
Safety Moment In the unlikely event of a building emergency, TVA and Hotel Staff will direct you to shelter or exit. 3
Slide 4: TVA Welcome and Today's Meeting Purpose
TVA Welcome and Today’s Meeting Purpose
Slide 5: February 2015 Meeting Purpose
February 2015 Meeting Purpose • Provide update and briefing on preliminary results of the IRP • Develop advice around the IRP process to date in terms of range of resources studied, depth of analysis, stakeholder involvement and continuing to provide low-cost, reliable power • Introduce emerging ene
Slide 6: RERC Protocols
RERC Protocols
Slide 7: RERC Meeting Protocols
RERC Meeting Protocols Agenda prepared and approved by the Designated Federal Officer (DFO) in Agenda consultation with Council Chair Agenda distributed to Council and published in the Federal Register prior to each meeting Topics may be submitted to the DFO by any member of the Council, or no
Slide 8: Agenda Review
Agenda Review
Slide 9: Agenda
Agenda Day 1: Monday February 2 10:30 Welcome from Council Chair Dus Rogers 10:35 Introductions Council Members 10:40 Safety Moment Beth Keel 10:45 TVA Welcome Joe Hoagland 10:55 RERC Protocols Jo Anne Lavender 11:00 Agenda Review Lavender 11:05 Environmental Policy Update Brenda Brickhouse 11:25 Oc
Slide 10: Agenda (Cont'd)
Agenda (Cont’d) Day 2: Tuesday, February 3 6:45 – 8:00 Systems Operation Center Tour (closed to public) RERC 8:30 Welcome Lavender 8:40 TVA Update Hoagland 9:00 Public Comment Period 10:00 Break 10:15 Changing Utility Market Place Hoagland 10:45 Council Discussion – Changing Utility Market Place Lav
Slide 11: RERC Advice Questions
RERC Advice Questions 1. What is your view of TVA’s IRP Process to date in terms of: • Including a broad range of resources that TVA could use to meet its future energy needs • Depth of analysis • Stakeholder involvement • Continuing to provide low-cost, reliable power 11
Slide 12: Environmental Policy Update
Environmental Policy Update Brenda Brickhouse Vice President, Energy & Environmental Policy
Slide 13: Environmental Policy
Environmental Policy TVA Environmental Policy … provide cleaner, reliable and still-affordable energy, support sustainable economic growth in the Tennessee Valley, and engage in proactive environmental stewardship Protecting natural resources TVA is projected to reduce while providing recreational C
Slide 14: Key Planning Assumptions
Key Planning Assumptions Impacts to Business Over the next decade, we will be Planning Dry ash conversions, lined subject to more stringent Coal Ash: Closure for existing coal ash landfills & pond closures regulations requiring exceptional impoundments environmental controls and clean energy expecta
Slide 15: Strategic Aspirations Environmental Footprint
Performance Metrics Strategic Environmental Footprint Aspirations Sustainability Clean Energy Fleet Emissions Water Stewardship Targets Waste Annual REEs/NOVs Milestones Inspections Goals 15
Slide 16: Coal Combustion Residuals (CCR)
Coal Combustion Residuals (CCR) Applies to new and existing landfills Existing Facilities and impoundments regulating CCRs • Operating criteria (inspections, dust control, storm water considerations,) as a Subtitle D – Non-hazardous • Inactive surface impoundments closed waste w/in 3 years avoid add
Slide 17: Regional Ozone Concentrations
Concentration (ppb) 50 55 60 65 70 75 80 85 90 95 1990 100 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 Regional Ozone Concentrations 2003 2004 2005 2006 2007 2008 1997 NAAQS 2009 2010 2011 2012 2013 2014 2008 NAAQS 2015 2016 17 17 2015 NAAQS
Slide 18: Ozone Trend in Nashville Area
Ozone Trend in Nashville Area 1997 NAAQS 2008 NAAQS 2015 NAAQS 18
Slide 19: TVA CO2 Emissions and Progress for our Customers
TVA CO2 Emissions and Progress for our Customers 120 • TVA’s asset decisions have 110 reduced CO2 emissions 100 TONS Millions of Tons 90 • TVA has reduced CO2 80 emissions 30% below 2005 70 levels (stated goal of the Clean 60 Power Plan) 50 • TVA is projected to reduce CO2 40 1995 1997 1999 2001 200
Slide 20: Valley State Proposed Emission Guidelines
Valley State Proposed Emission Guidelines 111(d) Compliance Rate (lbs/MWh) 2,300 Final Goal- 2012 Fossil Rate Compliance based KY on 3-yr avg. 2,100 (2030-2032) TN KY 1,900 NC KY 1,700 GA AL 1,500 VA TN 1,300 AL MS TN 1,100 NC AL VA NC GA 900 GA MS VA 700 MS 500 2012 2020 2021 2022 2023 2024 2025 20
Slide 21: Three Carbon Rates to Benchmark
THREE CARBON Rates to Benchmark What the Media sees: What the customer sees: What the regulator will see: Coal CO2 Emissions Adjusted for HRI & Re-dispatch NGCC CO2 Emissions Adjusted for Re-dispatch CO2 Rate for Clean Power New & “At-Risk” Plan Adjusted Coal Adjusted NGCC Renewable Nuclear Demand-S
Slide 22: 2013 Carbon Performance vs. Industrial Rate of Electricity
2013 Carbon Performance vs. Industrial Rate of Electricity 1,900 TVA offers a good combination of price of electricity and the associated carbon content of 1,700 that electricity. Some may have lower cost but CO2 Emission Rate (lbs/MWh) 1,500 they have higher carbon. Some may have lower carbon but t
Slide 23: October 2014 Webinar Recap
October 2014 Webinar Recap
Slide 24: IRP: Where We Were in the Process
IRP: Where We Were in the Process The result of a strategy evaluated in a scenario How uncertainty impacts the Portfolio results Standardized metrics to compare Portfolios 24
Slide 25: Renewables and EE Resources in the IRP
Renewables and EE Resources in the IRP In the 2015 IRP study, solar, wind and energy efficiency resources are selectable — In the prior IRP, these resources were fixed inputs into the study process Now that the optimization model can select these resources, the timing and amount will depend on t
Slide 26: IRP Update and Preliminary Results
IRP Update and Preliminary Results
Slide 27: The Basics of Integrated Resource Planning
The Basics of Integrated Resource Planning A “Good” Integrated Resource Plan Will: • Guide power system planning without overly constraining options • Seek to minimize total costs to customers • Allow for flexible and proactive responses to changes in key drivers • Keep environmental impacts to a mi
Slide 28: 2015 IRP/SEIS Schedule: Major Phases/Milestones
2015 IRP/SEIS Schedule: Major Phases/Milestones The 2015 IRP is intended to ensure transparency and enable stakeholder involvement. Spring/Summer Fall/Winter Spring/Summer Fall/Winter Winter Spring Summer 2013 2013 2014 2014/2015 2015 2015 2015 Develop Identify Analyze & Present Initial Incorporate
Slide 29: Scenarios and Strategies
Scenarios and Strategies Scenarios Strategies 1 - Current • Current outlook for the future TVA • Legislatively mandated, traditional least Outlook is using for resource planning X - Baseline Case cost optimization, EE/Renewables 2033:189 TWh studies scheduled • Stagnant economy results in flat • Leg
Slide 30: Power Resource Options Considered in the IRP
Power Resource Options* Considered in the IRP NATURAL GAS FIRED UTILITY-SCALE STORAGE • Simple cycle combustion turbine (CT3x) • Pumped-hydro storage • Simple cycle combustion turbine (CT4x) • Compressed air energy storage (CAES) • Combined cycle two on one (CC2x1) • Combined cycle three on one (CC3
Slide 31: The Modeling Process
Uncertai TVA Sales Uncertainty— Issue or concem that is Natural Gas Prices Wholesale Electricity Prices for TVA generally beyond TVA’s control that may affect the cost or performance of its Coal Prices energy resources in the future. Regulations ‘CO2 Regulation/Price Distributed Generation Penetrati
Slide 32: Major Assumptions in the 2015 IRP
Major Assumptions in the 2015 IRP Scenario planning approach (also used in the 2011 study) includes: — Range of economic forecasts, demand/energy projections, fuel prices, CO2 costs, and other key drivers — Uncertainty exposure (risk) tested using probability distributions around key variables A
Slide 33: Enhancements In This IRP
Enhancements In This IRP EE-as-a-resource represented by unique modeling solution — Uses cost tiers and customer adoption assumptions to define resource availability — Energy pattern shapes ensure proper representation of program design — Portfolio of programs are modeled in each market sector (re
Slide 34: Rigorous Analytical Approach
Rigorous Analytical Approach The IRP study uses three phases to ensure a comprehensive evaluation of alternative resource plans — Scenario Analysis uses multiple plausible futures as framework for testing planning strategies (resource plan optimization) — Uncertainty Analysis re-evaluates Scenario
Slide 35: 2015 IRP Formal Stakeholder Engagement Schedule
2015 IRP Formal Stakeholder Engagement Schedule TVRIX, EEIX provide resource IRPWG members options and IRPWG members IRPWG members review comments assumptions review comments offer final from public from public comments before scoping scoping Board action Develop Identify Analyze & Present Initial I
Slide 36: Public Sessions: Comments on the Draft IRP/SEIS
Public Sessions: Comments on the Draft IRP/SEIS RERC IRPWG 4/20-21 IRPWG 2/26 4/10 Comment Period Begins 3/9 Comment Period Ends 4/22 FEB 2015 MARCH 2015 APRIL 2015 4/6 Knoxville 4/21 Nashville 4/9 Huntsville 4/22 Bowling Green 2/27 EPA submittal date 3/19 Chattanooga 4/14 Tupelo 4/15 Memphis Loca
Slide 37: Integrated Resource Plan Update
Integrated Resource Plan Update Tom Rice TVA Enterprise Planning
Slide 38: Key Assumptions: Load Growth
Key Assumptions: Load Growth GWh Energy Forecast 250,000 • Current Outlook projects energy growth of approximately 200,000 1.0%/year 1 Current Outlook 150,000 2 Stagnant Economy • Three scenarios project lower 3 Growth Economy 100,000 load growth than current 4 De-Carbonized Future outlook: 50,000 5
Slide 39: Key Assumptions: Natural Gas Price
Key Assumptions: Natural Gas Price Natural Gas $/mmBtu Natural Gas: Nominal$/mmBtu $12 • Gas prices range from $4/mmBtu - $9/mmBtu $10 for scenarios 1, 2, and 5 (nominal) 1 Current Outlook $8 2 Stagnant Economy • The highest prices are seen in the De- $6 3 Growth Economy carbonized and Growth Econom
Slide 40: Resource Selection Results by Scenario
Resource Selection Results by Scenario
Slide 41: Scenario 1: Current Outlook
Scenario 1: Current Outlook Strategy A : Strategy B: Strategy C: Strategy D: Strategy E: The Reference Plan Meet an Emission Target Focus on Long-Term, Maximize Energy Maximize Renewables Market-Supplied Resources Efficiency 100% 90% 80% 70% 60% % of TWh 50% 40% 30% 20% 10% 0% 2015 2020 2025 2030 20
Slide 42: Scenario 1: Current Outlook
Scenario 1: Current Outlook • Baseload resources: no new builds beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Renewables: solar selections in mid-2020s; HVDC wind selected at the end of the planning horizon • Gas Peaking: Combustion turbines added in 2020s to meet capacity and pe
Slide 43: Scenario 2: Stagnant Economy
Scenario 2: Stagnant Economy Strategy A : Strategy B: Strategy C: Strategy D: Strategy E: The Reference Plan Meet an Emission Target Focus on Long-Term, Maximize Energy Maximize Renewables Market-Supplied Resources Efficiency 100% 90% 80% 70% 60% % of TWh 50% 40% 30% 20% 10% 0% 2015 2020 2025 2030 2
Slide 44: Scenario 2: Stagnant Economy
Scenario 2: Stagnant Economy • Baseload resources: no new builds beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Renewables: • Solar selections remain, but at lower level than Scenario 1 • No HVDC wind in several strategies (A, B, C) • Gas Peaking: fewer CTs added than Scenario 1,
Slide 45: Scenario 3: Growth Economy
Scenario 3: Growth Economy Strategy A : Strategy B: Strategy C: Strategy D: Strategy E: The Reference Plan Meet an Emission Target Focus on Long-Term, Maximize Energy Maximize Renewables Market-Supplied Resources Efficiency 100% 90% 80% 70% 60% % of TWh 50% 40% 30% 20% 10% 0% 2015 2020 2025 2030 203
Slide 46: Scenario 3: Growth Economy
Scenario 3: Growth Economy • Baseload resources: no new builds beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Renewables: significantly higher renewable selections than Scenario 1, driven by higher solar availability. HVDC is a bit sooner and other wind assets (MISO) are selected
Slide 47: Scenario 4: Decarbonized Future
Scenario 4: Decarbonized Future Strategy A : Strategy B: Strategy C: Strategy D: Strategy E: The Reference Plan Meet an Emission Target Focus on Long-Term, Maximize Energy Maximize Renewables Market-Supplied Resources Efficiency 100% 90% 80% 70% 60% % of TWh 50% 40% 30% 20% 10% 0% 2015 2020 2025 203
Slide 48: Scenario 4: Decarbonized Future
Scenario 4: Decarbonized Future • Baseload resources: no new builds beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Additional fossil units retired driven by carbon penalty and lower loads. Higher EE and Renewables targets (Strategies D and E) force additional retirements • Renewab
Slide 49: Scenario 5: Distributed Marketplace
Scenario 5: Distributed Marketplace Strategy A : Strategy B: Strategy C: Strategy D: Strategy E: The Reference Plan Meet an Emission Target Focus on Long-Term, Maximize Energy Maximize Renewables Market-Supplied Resources Efficiency 100% 90% 80% 70% 60% % of TWh 50% 40% 30% 20% 10% 0% 2015 2020 2025
Slide 50: Scenario 5: Distributed Marketplace
Scenario 5: Distributed Marketplace • Baseload resources: no new builds beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Very low loads drive additional fossil unit retirements • Renewables: lower utility and commercial scale renewable additions due to low loads (recall that scenari
Slide 51: Gas Builds
1X – The Base Case 1A – The Reference Plan Gas Builds 1B – Meet an Emission Target 1C – Focus on Long-Term, Market-Supplied Resources 1D – Maximize EE 1E – Maximize Renewables End End ofof Study Study 3x1CC 4xCT 3xCT Beginning of Study • Fewer CC builds across the scenarios due to the high volumes o
Slide 52: Energy Efficiency
1X – The Base Case Energy Efficiency 1A – The Reference Plan 1B – Meet an Emission Target 1C – Focus on Long-Term, Market-Supplied Resources 1D – Maximize EE 1E – Maximize Renewables • Higher Energy Efficiency volumes in many cases resulting from cost assumptions and program shapes • Strategy D (‘Ma
Slide 53: Renewable Expansion
1X – The Base Case 1A – The Reference Plan Renewable Expansion 1B – Meet an Emission Target 1C – Focus on Long-Term, Market-Supplied Resources 1D – Maximize EE 1E – Maximize Renewables • Utility solar becomes economic towards the mid-2020’s and between 1,000- 4,000 MW utility solar tracking is selec
Slide 54: Coal Selections
1X – The Base Case 1A – The Reference Plan Coal Selections 1B – Meet an Emission Target 1C – Focus on Long-Term, Market-Supplied Resources 1D – Maximize EE 1E – Maximize Renewables Shawnee 1, 4 Shawnee 2,3,5‐9 Kingston Bull Run Paradise 1,500 1,000 500 ‐ Higher loads (500) (1,000) MW (1,500) High CO
Slide 55: IRPWG Recap: Key Resource Selection Observations
IRPWG Recap: Key Resource Selection Observations Capacity Plan Observations/Input: • There is a need for new capacity in every scenario being modeled • No additional significant baseload expansion beyond Watts Bar Unit 2 and Browns Ferry extended power uprates • Flipside is that most of the variatio
Slide 56: Strategy Assessment, Dashboard & Report Structure
Strategy Assessment, Dashboard & Report Structure
Slide 57: Strategies Assessment Process
Strategies Assessment Process Scorecard data are used to conduct four assessments Detailed on how strategies perform in the five evaluation Scorecards Strategy A categories — Cost and Risk — Flexibility — Environmental Stewardship Assessments: — Valley Economics Cost/Risk, Environmental Stewardshi
Slide 58: Assessing Plan Cost & Risk
Assessing Plan Cost & Risk The selected cost metrics measure the financial impact of a strategy in the short and long terms The risk metrics represent different views of financial risk exposure for each strategy The combination of cost and risk of a particular strategy is the primary evaluatio
Slide 59: How do the costs of the strategies compare from a long-term perspective?
Cost/Risk Assessment How do the costs of the strategies compare from a long-term perspective? PVRR Over 20 Years – All Cases PVRR Over 20 Years – By Strategy Key P(95) Exp P(5) A B C D E Strategies A, B, and C lead the way and have roughly the same average PVRR results across all scenarios (Strate
Slide 60: Which strategies present higher financial risk?
Cost/Risk Assessment Which strategies present higher financial risk? Risk/Benefit Ratio Risk Exposure All strategies except for E have a risk/benefit ratio less than one suggesting actual costs are more likely to fall below the expected value Strategy C has the lowest risk/benefit ratio indicati
Slide 61: How strategies perform when we combine the total cost and financial risk views?
Cost/Risk Assessment How strategies perform when we combine the total cost and financial risk views? Cost/Risk Trade-off Charts 20-Year View (Plan Cost) 10-Year View (System Avg. Cost) Leading performers from a cost/risk perspective will show up in the lower left hand corner of the graphic where c
Slide 62: What is the capacity of the system to respond to ramp-ups?
Flexibility Assessment What is the capacity of the system to respond to ramp-ups? The graph above shows the SRC of the different strategies in years 2014, 2024 and 2033 Strategy D has a better regulating during the first decade suggesting that the dominant effect is the lower load that the syste
Slide 63: Valley Economics Assessment
Valley Economics Assessment Summary of Observations Difference in per capita income relative to Strategy A 0.10% Difference from Strategy A Result PV of Levelized Annual 0.05% Per Capita Income ($2013) Scenario 1 Case 1A $ 38,074 Scenario 2 Case 2A $ 36,206 0.00% Scenario 3 Case 3A $ 39,590 Scenario
Slide 64: CO2 Emissions
Environmental Stewardship Assessment CO2 Emissions CO2 (ktons) CO2 Avg (mmtons, avg 2014-33) 70 1a 1b 1c 1d 1e 1x 80,000 65 70,000 60 60,000 50,000 55 40,000 50 30,000 45 20,000 40 10,000 - 35 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 30 1x1a
Slide 65: Strategies Assessment Process
Strategies Assessment Process Scorecard data are used to conduct four assessments Detailed on how strategies perform in the five evaluation Scorecards Strategy A categories — Cost and Risk — Flexibility — Environmental Stewardship Assessments: — Valley Economics Cost/Risk, Environmental Stewardshi
Slide 66: IRP/SEIS Draft Reports
IRP/SEIS Draft Reports DRAFT IRP REPORT CONTENTS: DRAFT EIS REPORT CONTENTS: Overview of the process Summary of the resource planning process Summary of public involvement Overview of the TVA power system Need for Power analysis (forecasting) Description of the affected environment Discuss
Slide 67: RERC Engagement
RERC Engagement 2/3-4 6/16-17 Review of prelim results, Review of study overview content of draft recommendations IRP/SEIS reports & and prepare an 10/15 prepare a general advice statement guidance statement 4/20-21 Proposed Update Review of public RERC on project comments & Meetings status (webinar
Slide 68: Break
Break 68
Slide 69: IRP – Environmental Considerations
IRP –Environmental Considerations
Slide 70: Purpose and Approach of the EIS
Purpose and Approach of the EIS Purpose: Provide detailed assessment of the environmental impacts of the alternative strategies to facilitate informed decision-making Comply with the National Environmental Policy Act (NEPA) Through the NEPA process, provide structure for public involvement App
Slide 71: Contents of the Draft EIS
Contents of the Draft EIS Introduction Overview of the resource planning process Description of the TVA power system Description of the affected environment Description of energy resource options Description of alternative strategies and scenarios Description of anticipated environment
Slide 72: Environmental Resources Addressed in EIS Impact Analyses
Environmental Resources Addressed in EIS Impact Analyses Addressed in detail: Not addressed in detail: Air quality with emphasis on SO2, Geology NOx, mercury emissions Groundwater Greenhouse gas emissions and climate change Aquatic Life Water resources with emphasis on Vegetation and W
Slide 73: Example – Water Consumption
Example – Water Consumption 70,000 Consumption in Million 65,000 “High” water consumption: Annual Water 60,000 1C Gallons 55,000 2C Strategy C – Focus on Long-Term, 50,000 3C Market-Supplied Resources 4C 45,000 Average of ~59 billion gallons/year 5C Year 70,000 Annual Water Consumption 65,000 in Mil
Slide 74: Example – Land Requirements for Capacity Expansions
Example – Land Requirements for Capacity Expansions Build out through 2033 74
Slide 75: RERC Discussion
RERC Discussion
Slide 76: RERC Advice Questions
RERC Advice Questions 1. What is your view of TVA’s IRP Process to date in terms of: • Including a broad range of resources that TVA could use to meet its future energy needs • Depth of analysis • Stakeholder involvement • Continuing to provide low-cost, reliable power 76
Slide 77: Closing Comments
Closing Comments
Slide 78: Adjourn
Adjourn 78
Slide 79: Tennessee Valley Authority Regional Energy Resource Council
Tennessee Valley Authority Regional Energy Resource Council Chattanooga, Tennessee February 2 and 3, 2015
Slide 80: Agenda (Cont'd)
Agenda (Cont’d) Day 2: Tuesday, February 3 6:45 – 8:00 Systems Operation Center Tour (closed to public) RERC 8:30 Welcome Lavender 8:40 TVA Update Hoagland 9:00 Public Comment Period 10:00 Break 10:15 Changing Utility Market Place Hoagland 10:45 Council Discussion – Changing Utility Market Place Lav
Slide 81: TVA Update
TVA Update
Slide 82: Energy Resource Decisions
Energy Resource Decisions Financial Health Rates Reliability Other Strategic Resiliency Considerations TVA Leadership Environmental Internal/External Stewardship Stakeholder Input Specific ‘Lane’ decided by TVA Leadership with IRP establishes Business direction for Considerations ‘The Highway’ 82
Slide 83: Day 1 Recap
Day 1 Recap
Slide 84: Public Comment Period
Public Comment Period
Slide 85: Public Comment Period
Public Comment Period • Public participation is appreciated • This is a listening session; responses are typically not provided • Members of the public have a set number of minutes for their comments 85
Slide 86: Public Comment Period
Public Comment Period 86
Slide 87: Break
Break 87
Slide 88: Changing Utility Market Place
Changing Utility Market Place
Slide 89: Where We Came From
Where We Came From Thomas Edison Someday, man will harness the rise and fall of the tides, imprison the power of the sun, and release atomic power. -- Edison 89
Slide 90: Today's Grid
Today’s Grid Image Source: EPRI 90
Slide 91: The Result of the Last 80 Years
The Result of the Last 80 Years • Complete Electrification • Nationwide Grid • Large Central Station Assets • Balanced Portfolio • High Reliability • Low Relative Cost Image Source: EPRI 91
Slide 92: What is Changing: The Technology
What is Changing: The Technology Image Source: EPRI 92
Slide 93: What is Changing: Extreme Events are More Extreme
What is Changing: Extreme Events are More Extreme Image Source: EPRI 93
Slide 94: What is Changing: The Consumer Cares
What is Changing: The Consumer Cares Image Source: EPRI 94
Slide 95: What is Not Changing: Expectations
What is Not Changing: Expectations • Continued Reliability • High Resiliency • Clean and Green • Continued Low Price Customers always expect lights to “come on” 95
Slide 96: The Challenge for TVA
The Challenge for TVA • No Stranded Assets • Maintain and Increase Reliability • Decentralized Cleaner Generation Portfolio “The work of TVA will never be • Giving Customers Choice done, there will always be new frontiers to conquer.” President John F. Kennedy, 1963 While Maintaining the Mission 96
Slide 97: Project Spotlight: Distributed Generation – Integrated Value
Project Spotlight: Distributed Generation – Integrated Value
Slide 98: What is DG-IV?
What is DG-IV? DG-IV = ‘Distributed Generation – Integrated Value’ A process to develop a Methodology to “Value of determine the value of DG plus the the Grid” value of the Grid. Why Now? DG – IV (solar focus) Dual metering positions TVA to better to determine the value of solar “Value of Opport
Slide 99: RERC Discussion Questions – Changing Utility Market Place
RERC Discussion Questions – Changing Utility Market Place • What strategic implications do you think of relative to the emerging utility marketplace and TVA’s preparation for it? • How can we better brief or engage you in the changing utility marketplace to build your understanding? 99
Slide 100: IRP Recap From Day 1
IRP Recap From Day 1
Slide 101: 2015 IRP: Framework -- Analyze -- Review -- Recommend
2015 IRP: Framework -- Analyze -- Review -- Recommend Current Outlook Stagnant Economy Growth Economy 1 Reference Plan De-carbonized Future Meet an Emission Target Distributed Marketplace Lean on the Market 3 Doing More EE Focus on Renewables Strategies Filtering with Scenarios Scorecard Metrics 4 R
Slide 102: The IRP Overview (What We Covered on Day 1)
The IRP Overview (What We Covered on Day 1) IRP Basics Resource Options Modeling Process Assumptions & Enhancements Analytical Approach Stakeholder Engagement Update on Study Results Assessment Process Outline of the draft reports (IRP/SEIS) RERC engagement 102
Slide 103: Summary of Assessment Observations
Summary of Assessment Observations (to be completed after RERC Day 1) 103
Slide 104: RERC Discussion and Advice
RERC Discussion and Advice
Slide 105: RERC Advice Questions
RERC Advice Questions 1. What is your view of TVA’s IRP Process to date in terms of: • Including a broad range of resources that TVA could use to meet its future energy needs • Depth of analysis • Stakeholder involvement • Continuing to provide low-cost, reliable power 105
Slide 106: Closing Comments
Closing Comments
Slide 107: Next Steps: Upcoming Meetings
Next Steps: Upcoming Meetings • Spring Meeting: April 20 – 21, 2015 Location: Nashville Topic: Draft IRP pubic comments review and feedback • Summer Meeting: June 16-17, 2015 Location: Knoxville Topic: Final IRP review and statement to TVA Board 107
Slide 108: Thank you and Please Travel Safely!
Thank you and Please Travel Safely! 108
Tennessee Valley Authority — Corporate Update (February 2015) on 6ix