Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (October 2013)
27 slides from Tennessee Valley Authority's investor presentation, Oct 24, 2013
Slide 1: 2015 Integrated Resource Plan Public Scoping Meeting
2015 Integrated Resource Plan Public Scoping Meeting October 24 24, 2013
Slide 2: On the Agenda for Tonight's Meeting
On the Agenda for Tonight’s Meeting Overview of Resource Planning The Integrated Resource Planning Process — How We Do It — Whyy It’s Important p — How the Results Are Used The Schedule for the 2015 IRP Study A Brief Overview of the Environmental Impact Assessment Method Opportunities for
Slide 3: What is Public Scoping?
What is Public Scoping? TVA periodically updates its power generation strategy. The first step is to understand the environment we're planning in. We call this scoping. We ask the general public, our customers, and our partners and regulators egu a o s abou about their e coconcerns ce s regarding
Slide 4: Resource Planning Is About Solving Puzzles
Resource Planning Is About Solving Puzzles By asking a lot of questions, like … How much energy will our customers Portfolio Optimization p Asset Strategy use in i th the ffuture? t ? What alternatives do we have to meet our resource needs? Are there strategic considerations that will limit the alte
Slide 5: Resource Planning Addresses Future Capacity Needs
Resource Planning Addresses Future Capacity Needs Resource planning tries to optimize the mix of future capacity. Capacity Gap Chart 45,000 40,000 35,000 30,000 25,000 Capacity Capacity 20,000 Surplus Shortfall 15,000 10 000 10,000 5,000 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 L d+ R Lo
Slide 6: The TVA Resource Planning Process Step by Step
The TVA Resource Planning Process Step by Step Develop Load Forecast Project customer demand for electricity in the future Define Existing Resources Define the resources currently available to meet customer demand and how that will change in the future Establish Need for Compare future custome
Slide 7: Why This Is Important for Customers
Why This Is Important for Customers Resource Planning produces a kind of road map for TVA. This road map will guide decision-makers and support TVA’s overall mission: — Low cost reliable power — Environmental stewardship — Economic development This road map outlines changes that, if implemented, w
Slide 8: IRP Process Flowchart
IRP Process Flowchart An IRP is a special form of resource planning that seeks to optimize supply-side and demand-side contributions to make up a least cost plan. Unique to TVA – related to NEPA* compliance Traditional Resource Planning Tasks Inputs & Analyze & Present Re-evaluate Recommend Framewor
Slide 9: Study Methodology
Study Methodology Scenarios Current #1 #2 #3 #4 #5 Situation Metrics and Planning Strategy A Modeling g Results Priorityy Internal/External Planning Strategies Planning Strategy B Stakeholder Input Planning Strategy C Planning Strategy D Planning Strategy E Other Strategic g TVA Leadership Considera
Slide 10: "Scenarios and Strategies" Established the Framework
“Scenarios and Strategies” Established the Framework Scenarios Planning Strategies ib potential Describe D t ti l outcomes t off Testt various T i business b i options ti within ithi factors (uncertainties) outside of TVA’s control TVA’s control Defined by a combination of resource Represent p
Slide 11: Findings Presented using Scorecard Metrics
Findings Presented using Scorecard Metrics Metrics can be used to facilitate a discussion/debate about trade-offs when selecting the best plan. Scenarios #1 #2 #3 #4 #5 #6 #7 A At TVA, we use a scorecard approach to packaging the metrics, so that stakeholders and B egies decision makers can be f
Slide 12: 2011 IRP Considered Wide-Ranging Scenarios
2011 IRP Considered Wide-Ranging Scenarios …. Scenarios Range of Capacity Need 30,000 , 1 – Economy Recovers Dramatically 25,000 2 – Environmental Focus is a National Priority 20,000 15,000 3 – Prolonged Economic Malaise The IRP considers a MW wide range of system 10 000 10,000 q requirements 4 – Ga
Slide 13: And Diverse Planning Strategies Were Evaluated
And Diverse Planning Strategies Were Evaluated Planning Strategies Potential Energy Mix in 2025 A – Limited Change in Current Resource Portfolio Limited Change Example1 Significant Change Example1 p Pumped Pumped p Hydro, 2% EE/DR, 3% Hydro, 2% EE/DR, 7% B – Baseline Plan Resource Portfolio Hydro, 9
Slide 14: A Wide Variety of Resource Options Were Included
A Wide Variety of Resource Options Were Included Mature Emerging Developmental Coal: Pulverized Baseload d Coal Nuclear: N clear C Coal: IGCC GCC with Nuclear: BWR, AP1000 PWR CCS Coal: Circulating Coal: Integrated Fluidized Bed Gasification Combustion Combined Cycle Coal: Ultra- Coal: Pulverized Su
Slide 15: That Resulted in a Recommended Planning Direction
That Resulted in a Recommended Planning Direction Guideline Window of Component Recommendations MW Range Time E Energy Efficiency/ Effi i / 3 600 5 100 3,600-5,100 Expand E d contribution t ib ti off energy efficiency/demand ffi i /d d By 2020 Demand Response (11,400-14,400 GWh) response in the po
Slide 16: What TVA Did With the 2011 IRP Recommendations
What TVA Did With the 2011 IRP Recommendations Component Recommendations E Energy Efficiency/ Effi i / Expand E d contribution t ib ti off energy efficiency/demand ffi i /d d Demand Response response in the portfolio TVA’s current Renewable additions Pursue cost effective renewable energy resour
Slide 17: Changes Drove the Need to Refresh the 2011 IRP
Changes Drove the Need to Refresh the 2011 IRP While the recommendations from the 2011 IRP study remain valid, significant changes nationally and regionally occurred that Building a “Multi-lane Highway” motivated TVA to refresh the study now, of Flexibility such as — Abundant supplies of natural g
Slide 18: 2015 IRP Schedule: Major Project Phases & Milestones
2015 IRP Schedule: Major Project Phases & Milestones The 2015 IRP Study Approach is intended to ensure transparency & enable stakeholder involvement Spring/Summer Fall/Winter Spring Summer Fall Fall/Winter Spring 2013 2013 2014 2014 2014 2014 2015 Develop Identify Analyze & Present Initial Incorpora
Slide 19: Environmental Impact Assessment
Environmental Impact Assessment 18
Slide 20: Three Types of Assessments
Three Types of Assessments Categorical Exclusion - for minor actions previously determined to not result in significant impacts — An A example l off thi this ttype off assessmentt iis ffor routine ti maintenance i t off an existing power plant Environmental Assessment (EA) - less detailed assess
Slide 21: The Supplemental Environmental Impact Statement
The Supplemental Environmental Impact Statement Required by National Environmental Policy Act for proposed Federal agency actions including development of plans actions, and policies Purpose is to make better decisions by understanding the likely environmental impacts and involving the public in
Slide 22: What Kind of Impact Is Studied?
What Kind of Impact Is Studied? EISs typically address impacts to a wide range of resources, including: — physical — biological — economic, and — social resources Because of the nature of the IRP planning process, the SEIS will focus on impacts to the following resources: — Air Quality — Greenho
Slide 23: Contents of the Supplemental EIS
Contents of the Supplemental EIS Introduction / Purpose and Need Description of TVA’s Resource Planning Process Description of TVA’s Power System Affected Environment Energy gy Resource Options p Alternatives / Planning Strategies Anticipated Environmental Impacts 22
Slide 24: Major Steps in the SEIS Process
Major Steps in the SEIS Process Public scoping – through November 22, 2013 Preparation p of draft SEIS Public review of draft SEIS for at least 45 days – Fall 2014 Preparation of final SEIS Public P bli circulation i l ti off fifinall SEIS – Spring S i 2015 Board action and issuance of R
Slide 25: Stakeholder & Public Involvement
Stakeholder & Public Involvement Fall 2013 Forum for Input Public Scoping Meetings IRP Working Group Input will be incorporated throughout the Quarterly Public Briefings process Draft IRP Public Comment Period External Web Page Spring 2015 24
Slide 26: We Want Your Input
We Want Your Input How you can comment: • Complete a comment card tonight •Use the online IRP comment form www.tva.gov/irp •Submit comments by November 22nd 25
Slide 27: For information about the 2015 IRP, go to www.tva.gov/irp
For information about the 2015 IRP, or to submit comments, go to www.tva.gov/irp
Tennessee Valley Authority — Investor Presentation (October 2013) on 6ix