Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (February 2016)
52 slides from Tennessee Valley Authority's corporate update, Feb 11, 2016
Slide 1: Board Meeting
Board Meeting February 11, 2016 Chattanooga, TN
Slide 2: President's Report
President’s Report February 11, 2016 BILL JOHNSON President and CEO
Slide 3: Chattanooga
Chattanooga | 3
Slide 4: Chattanooga innovation district
innovationdistrict A140-acre innovation district has been established downtown. The business accelerator Co.Lab will anchor the district, which encompasses adozen key businesses and organizations. 1. Society of Work 7.Causeway 2.Lamp Post Group 8. Public Education Foundation 3.EPB 9, Lamp Post/Comer
Slide 5: Innovation
Innovation | 5
Slide 6: Chattanooga
Chattanooga on IVA
Slide 7: TVA Power Operations
TVA Power Operations | 7
Slide 8: Extreme Rainfall December 2015
DECEMBER 2015 EXTREME RAINFALL Sometimes the biggest news is what didn’t happen. December 2015 brought torrential rain to the eastern U.S., including the Tennessee Valley. And while serious flooding did strike other states, the good news in our region was the flood damage avoided — thanks to coordin
Slide 9: Weather Challenges
Weather Challenges UTILITY-SCALE SOLAR PPA | 9
Slide 10: Rise in Lake Levels
[RISE IN LAKE LEVELS within 3 feet of the top of the gates within 1 foot of the top of the gates 31 24 21°19 14 = 85 FEET FEET FEET FEET FEET FEET
Slide 11: Weather Challenges
Weather Challenges UTILITY-SCALE SOLAR PPA | 11
Slide 12: Financial Performance Update
Financial Performance Update
Slide 13: Pole Attachments
Pole Attachments Electric Safety Space Cable Telephone Support Space TYPICAL POLE DEPICTION: NOT TO SCALE UTILITY-SCALE SOLAR PPA | 13
Slide 14: Retirement System
Retirement System UTILITY-SCALE SOLAR PPA | 14
Slide 15: Retirement System
Retirement System FY2000 FY2015 FY2025 Benefits Paid $290M $690M ~$800M Pension Liability $5.5B $12.8B ? UTILITY-SCALE SOLAR PPA | 15
Slide 16: Operational Performance
Operational Performance | 16
Slide 17: Energy | Environment | Economic Development
Energy | Environment | Economic Development
Slide 18: Energy: Nuclear – Watts Bar Unit
Energy Nuclear – Watts Bar Unit 2
Slide 19: Energy: Natural Gas – Allen
Energy Natural Gas – Allen
Slide 20: Energy: Coal – Colbert
Energy Coal – Colbert
Slide 21: Energy: Solar
Energy Solar
Slide 22: Energy: Hydro
Energy Hydro
Slide 23: Stewards of the Environment
Stewards of the Environment
Slide 24: Stewards of the Environment
Stewar ds of the Environm ent vA
Slide 25: Stewards of the Environment: Public Meetings
Stewards of the Environment Public Meetings
Slide 26: Economic Development
Economic Development
Slide 27: Economic Development
Economic Development Stimulating economic development and investment in the Valley Logan Aluminum, Inc. Fritz-Winter North America LP Bowling Green Metalforming Advanced Munitions International Google Lifetime Products Sinomax USA Allied Dispatch Solutions Sleep Solutions and Services, LLC Orgill, I
Slide 28: Energy: Engineer of the Year
Energy Engineer of the Year
Slide 29: Energy: Engineer of the Year
Energy Engineer of the Year
Slide 30: President's Report
President’s Report February 11, 2016 BILL JOHNSON President and CEO
Slide 31: Slide 31
Slide 32: Committee Charters
Committee Charters
Slide 33: Board Practice on Confidential Information
Board Practice on Confidential Information
Slide 34: Audit, Risk, and Regulation Committee
Audit, Risk, and Regulation Committee
Slide 35: Regulation of Pole Attachment Fees
Regulation of Pole Attachment Fees Dwain Lanier Vice President Operational and Regulatory Assurance
Slide 36: Purpose
Purpose Seek TVA Board Approval of Determination on Pole Attachment Regulation: • Approval of cost methodology • Delegation to CEO to take actions for implementation Regulation of Pole Attachment Fees | 36
Slide 37: Pole Attachment Rate Regulation
Pole Attachment Rate Regulation Background TVA staff undertook an effort to refine TVA’s pole attachment regulation: • Need for consistency in approach among Local Power Companies • Prevent subsidization of non-electric activities Scope • Limited to regulation of pole attachment rates for communicat
Slide 38: Pole Attachment Rate Regulation
Pole Attachment Rate Regulation Propose Fully Allocated Cost Methodology • Allocates total costs of pole ownership based upon the space used by and necessitated by each attaching party • Provides a credible methodology consistent with TVA’s regulatory requirements Regulation of Pole Attachment Fees
Slide 39: Recommendation
Recommendation Recommend Board Approval of Determination on Pole Attachment Regulation: • Recommend fully allocated cost methodology, which will be implemented through contract amendment • Delegation to CEO to take actions necessary or appropriate to implement the Board’s determination Regulation of
Slide 40: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 41: Financial Performance Update
Financial Performance Update JOHN THOMAS Executive Vice President and Chief Financial Officer
Slide 42: Q1 Fiscal Year 2016
Q1 Fiscal Year 2016 Net Loss: $37 million • $17M less than budget and $118M below last year Operating Revenues ($138M below budget) • Warmer weather resulting in 36% fewer degree days Operating & Maintenance Expenses ($9M favorable to budget) • Timing associated with outages Interest Expense ($18M f
Slide 43: Weather Patterns
Weather Patterns First Quarter Total Degree Days °Days 2,000 1,800 Normal 1,369 1,600 Milder FY15 1,443 1,400 FY14 FY12 1,200 FY13 1,000 FY16 880 800 Fiscal years 1962 through 2016 (ranked low to high) FINANCIAL PERFORMANCE UPDATE | 43
Slide 44: Q1 Summary Income Statement
Q1 Summary Income Statement Net Loss unfavorable to budget due to lower revenues as a result of warmer weather FYTD 2016 FYTD 2015 Variance '16 v '15 $ million Actual Budget Fav/(Unfav) Actual Fav/(Unfav) Operating Revenue $ 2,280 $ 2,418 $ (138) $ 2,411 $ (131) Fuel & Purchased Power 727 801 74 783
Slide 45: Q1 Summary Cash Flow Statement
Q1 Summary Cash Flow Statement FYTD 2016 FYTD 2015 $ million Actual Budget Variance Actual '16 v '15 Cash Flow from Operating Activities $ 516 $ 522 $ (6) $ 473 $ 43 Cash Flow used in Investing Activities (968) (834) (134) (998) 30 Cash Flow from Financing Activities 463 312 151 524 (61) Net Change
Slide 46: First Quarter Summary (Results v. Plan)
First Quarter Summary (Results v. Plan) Lower Electricity Sales – warmest Q1 since 1962 Lower Fuel Cost – increased hydro generation Lower Expenses – operating and maintenance, depreciation, and interest Lower Debt Balance FINANCIAL PERFORMANCE UPDATE | 46
Slide 47: Nuclear Oversight Committee
Nuclear Oversight Committee
Slide 48: External Relations Committee
External Relations Committee
Slide 49: People and Performance Committee
People and Performance Committee
Slide 50: Chair Selection
Chair Selection
Slide 51: Board Meeting
Board Meeting February 11, 2016 Chattanooga, TN
Slide 52: Slide 52
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