Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (November 2007)
26 slides from Tennessee Valley Authority's corporate update, Nov 29, 2007
Slide 1: President's Report
President's Report
Slide 2: Financial Results through mid-November
Financial Results through mid-November Revenue 100% of plan Expenses 101% of plan Operating Cash Flow 95% of plan 100% 3
Slide 3: Expense Drivers through mid-November
Expense Drivers through mid-November Fuel 101% of plan Purchased Power 112% of plan Operations and Maintenance 98% of plan Fixed Costs 100% of plan 100% 4
Slide 4: Hard Spots
Hard Spots Rainfall and runoff Reduced hydro volume Sequoyah Nuclear Plant Unit 1 generator Capital expenditures 5
Slide 5: Cumulative Rainfall (Inches)
Cumulative Rainfall (Inches) Normal FY2004 FY2005 FY2006 FY2007 FY2008 60 50 40 30 20 10 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 6
Slide 6: Cumulative Runoff (Inches)
Cumulative Runoff (Inches) Normal FY2004 FY2005 FY2006 FY2007 FY2008 30 25 20 15 10 5 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 7
Slide 7: Cumulative Hydro Generation (MWh)
Cumulative Hydro Generation (MWh) Normal 2004 2005 2006 2007 2008 18,000,000 16,000,000 14,000,000 12,000,000 10,000,000 8,000,000 6,000,000 4,000,000 2,000,000 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep 8
Slide 8: Hard Spots
Hard Spots Rainfall and runoff Reduced hydro volume Sequoyah Nuclear Plant Unit 1 generator Capital expenditures 9
Slide 9: Highlights
Highlights TVA’s Aaa bond rating reconfirmed by Moody’s Bellefonte combined license application submittal Customer satisfaction survey results Fossil fleet performance 10
Slide 10: Fiscal year 2007 Unaudited Results
Fiscal year 2007 Unaudited Results (in billions) Variance from plan Revenue $9.187 (0.7%) Expenses $8.804 (0.2%) GWh Power Sales 174,810 0.1% Nuclear Generation 46,411 (4.7%) Coal Generation 100,169 0.3% Hydro Generation 9,047 (33.7%) Purchased Power 22,141 33.3% 11
Slide 11: Energy Efficiency and Demand Response
Energy Efficiency and Demand Response
Slide 12: Energy Efficiency and Demand Response
Energy Efficiency and Demand Response Industrial usage Commercial Usage Residential Usage Today …focus on residential 13
Slide 13: Where Does the Energy Go?
Where Does the Energy Go? 71% Loss 3% 65% 3% 100% 97% 32% 29% Useful Energy To End-User Natural Fuel Extraction, Coal or Nuclear Transmission End Uses Resources Processing, & Generation & Distribution Transportation 14
Slide 14: Residential Electricity Intensity - 2004
MMbtu/capita 0.0 5.0 10.0 15.0 20.0 25.0 Ala So uth b am Ca a r Te olina nn es se e TV Flori AA da ve rag Lo e uis ia Ke na ntu ck Mi ss y No is s rth ipp Ca i We rol st in Vir a No gin rth ia Da ko t Ge a org i Vir a gin Ar ia ka n Ok sas la h om Mi a ss ou ri Te xa s Wa Idah sh o in g De ton la w
Slide 15: Residential Energy Intensity
Residential Energy Intensity 2004 Mmbtu/capita, all energy sources 80 70 60 50 MMbtu/capita U.S. Average TVA Average 40 30 20 10 0 Valley States 16
Slide 16: Zero Energy Home Comparison
Zero Energy Home Comparison July average daily load profiles Conv vs ZEH2-4 7000.00 Typical home 6000.00 5000.00 Watts 4000.00 3000.00 Energy Efficient Home 2000.00 1000.00 0.00 Zero Energy Home with Solar 1 5 9 13 17 21 25 29 33 37 41 45 49 53 57 61 65 69 73 77 81 85 89 93 Time (15 minute interval)
Slide 17: Residential State Building Codes
Residential State Building Codes 18
Slide 18: What we have done
What we have done Encouraged usage of energy efficient products Some specific projects with large customers Some direct load control 19
Slide 19: Demand Reduction 1997 – 2007
Demand Reduction 1997 – 2007 Since 1997, TVA has worked in partnership with local power distributors to achieve energy demand reductions of 523 megawatts. FY07 MW (Actual) 700 ESCO/LC&I DLC 31 30 MWs Peak Load Reduction 600 587 500 523 energy right 496 462 450 400 409 360 300 342 283 200 204 160 100
Slide 20: Projected Peak Demand/Energy Growth
Projected Peak Demand/Energy Growth Historical Installed Capacity & Forecast Future Capacity vs. both Peak Load and vs. Peak Load plus Reserves MW GWh 50,000 250,000 Difference between Peak Load+Reserves and Anticipated New Capacity 45,000 Capacity will be filled with Short-Term Market + / - 5% 40,0
Slide 21: Leadership Areas
Leadership Areas Peak Reduction (MW) Energy Efficiency (MWh) Leader in Energy Efficiency and Peak Reduction Generation Offset (MW & MWh) Time Differentiated Pricing (MW) Internal Efficiency Improvements 22
Slide 22: Where Does the Energy Go?
Where Does the Energy Go? 71% Loss 3% 65% 3% 100% 97% 32% 29% Useful Energy To End-User Natural Fuel Extraction, Coal or Nuclear Transmission End Uses Resources Processing, & Generation & Distribution Transportation 23
Slide 23: Process
Process Set initial goal of 1,200 MW by 2013 – Done Establish a project team – Done Expand stakeholder involvement – In Process Develop long-term plan this fiscal year Education – decisions based on real information Motivation – behavior based on real economics 24
Slide 24: What You Can Do Now!
What You Can Do Now! Each of us can start by doing the simple things: • Turn up the thermostat in summer, down in winter • Turn off lights and appliances when not in use • Use Compact Fluorescent Lights • Make sure there is adequate insulation and weather stripping • Change filters in HVAC systems •
Slide 25: To Learn More
To Learn More Visit www.tva.com or contact a participating local power distributor. 26
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