Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (November 2018)
50 slides from Tennessee Valley Authority's investor presentation, Nov 14, 2018
Slide 1: Board Meeting
Board Meeting November 14, 2018 Tupelo, MS
Slide 2: President’s Report
President’s Report BILL JOHNSON President and CEO
Slide 3: Tupelo, MS
Tupelo, MS PRESIDENT’S REPORT | 3
Slide 4: TVA in Mississippi
TVA in Mississippi FISCAL YEAR 2017 (OCTOBER 2016 – SEPTEMBER 2017) PRESIDENT’S REPORT | 4
Slide 5: Thank You: Joe Cade
Thank You Joe Cade PRESIDENT’S REPORT | 5
Slide 6: Thank You: Norma Kilgore
Thank You Norma Kilgore PRESIDENT’S REPORT | 6
Slide 7: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. 7
Slide 8: Mission | Strategic Imperatives
Mission | Strategic Imperatives Why We Are Here How We Achieve Sustainability TVA Mission Strategic Imperatives Energy Environment Economic Development PRESIDENT’S REPORT | 8
Slide 9: President Roosevelt quote
President Roosevelt “ remarkable business success. ” PRESIDENT’S REPORT | 9
Slide 10: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. 10
Slide 11: TVA Long Range Plan
TVA Long Range Plan • Reduce debt to ~$20B Net of cash • 1.5% Annual Base Rate increase as long as rates remain competitive • Offset base rate increase through O&M and fuel cost reductions • Modernize and diversify fleet to reduce fuel costs PRESIDENT’S REPORT | 11
Slide 12: Financials
Financials PRESIDENT’S REPORT | 12
Slide 13: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. 13
Slide 14: Organizational Changes: Mike Skaggs
Organizational Changes Mike Skaggs Chief Operating Officer PRESIDENT’S REPORT | 14
Slide 15: Organizational Changes: Tim Rausch
Organizational Changes Tim Rausch Chief Nuclear Officer PRESIDENT’S REPORT | 15
Slide 16: Organizational Changes: Joe Grimes
Organizational Changes Joe Grimes Retired PRESIDENT’S REPORT | 16
Slide 17: Energy | Environment | Economic Development
Energy | Environment | Economic Development PRESIDENT’S REPORT | 17
Slide 18: Reliability
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Slide 19: Generation
Generation PRESIDENT’S REPORT | 19
Slide 20: Allen CC
Allen CC PRESIDENT’S REPORT | 20
Slide 21: Shawnee Fossil Plant
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Slide 22: PRESIDENT’S REPORT | 22
PRESIDENT’S REPORT | 22
Slide 23: Energy | Environment | Economic Development
Energy | Environment | Economic Development PRESIDENT’S REPORT | 23
Slide 24: Flood Control
Flood Control PRESIDENT’S REPORT | 24
Slide 25: Energy | Environment | Economic Development
Energy | Environment | Economic Development PRESIDENT’S REPORT | 25
Slide 26: Continuing Economic Development
Continuing Economic Development FYTD Results 65,000 JOBS Created or Retained $11 Billion Capital Investment PRESIDENT’S REPORT | 26
Slide 27: Supplier Diversity
Supplier Diversity > $800 Million > $445 Million TVA FY18 Spend TVA FY18 Spend with Small Businesses with Diverse Businesses PRESIDENT’S REPORT | 27
Slide 28: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. 28
Slide 29: Employees
Employees PRESIDENT’S REPORT | 29
Slide 30: Hurricane Florence Support
Hurricane Florence Support PRESIDENT’S REPORT | 30
Slide 31: Volunteering
Volunteering PRESIDENT’S REPORT | 31
Slide 32: TVA Veterans
TVA Veterans PRESIDENT’S REPORT | 32
Slide 33: Board Meeting
Board Meeting November 14, 2018 Tupelo, MS
Slide 34: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 35: Financial Performance Update
Financial Performance Update JOHN THOMAS Executive Vice President and Chief Financial Officer
Slide 36: Fiscal Year 2018
Fiscal Year 2018 Operating Revenues: $711M above budget Operating & Maintenance Expenses (O&M): $104M favorable to budget Net Income: $1.1B Total Financing Obligations (TFO): $1.7B less than budget BOARD MEETING | 36
Slide 37: Summary Income Statement
Summary Income Statement FY 2018 FY 2017 Variance '18 v '17 $ million Actual Budget Fav/(Unfav) Actual Fav/(Unfav) Operating Revenue $ 11,233 $ 10,522 $ 711 $ 10,739 $ 494 Fuel & Purchased Power 3,022 2,953 (69) 3,160 138 Total O&M 2,854 2,958 104 3,362 508 Taxes, Depreciation, Other 2,995 2,189 (80
Slide 38: Summary Cash Flow Statement
Summary Cash Flow Statement FY 2018 FY 2017 $ million Actual Budget Variance Actual '18 v '17 Cash Flow from Operating Activities $ 3,955 $ 2,774 $ 1,181 $ 2,736 $ 1,219 Cash Flow used in Investing Activities (2,269) (2,518) 249 (2,536) 267 Cash Flow from Financing Activities (1,687) (256) (1,431) (
Slide 39: Summary (Results v. Plan)
Summary (Results v. Plan) Higher Revenues Lower Expenses Lower Debt BOARD MEETING | 39
Slide 40: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 41: People and Performance Committee
People and Performance Committee
Slide 42: 2018 TVA Employee Performance
2018 TVA Employee Performance • Provided record setting reliability in Fiscal Year 2018 • Achieved lowest recordable injury rate since tracking began in 1985 • Exceeded the target goals set for Fiscal Year 2018 in both nuclear capacity factor and combined cycle outage rates • Helped to attract and r
Slide 43: People and Performance Committee
People and Performance Committee
Slide 44: Audit, Risk, and Regulation Committee
Audit, Risk, and Regulation Committee
Slide 45: External Relations Committee
External Relations Committee
Slide 46: Nuclear Oversight Committee
Nuclear Oversight Committee
Slide 47: Board Meeting
Board Meeting November 14, 2018 Tupelo, MS
Slide 48: Slide 48
Slide 49: Board Meeting
Board Meeting November 14, 2018 Tupelo, MS
Slide 50: Slide 50
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