Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Corporate Update (November 2007)
9 slides from Tennessee Valley Authority's corporate update, Nov 26, 2007
Slide 1: Issues Impacting Fiscal Year 2008 Rates
Issues Impacting Fiscal Year 2008 Rates • Fuel • Purchased Power • Hydro Generation • Capacity
Slide 2: FY2007 Fuel Rate/Volume Variances
VA} FY2007 Fuel Rate/Volume Variances t Favorable Variance from FY2007 Budget $200 S116 go4 $100 7 00 (rillions) ($54) Minas Rc Rome than plan by 6.1% and nuclear Generation Was lower than plan by ans 0) (S647) ‘Average coal cost was higher than (920.0) |_| plan by 2.0% and coal generation (Sco) | L
Slide 3: Cumulative Rainfall (Inches)
Cumulative Rainfall (Inches)
Slide 4: Hydro generation is 70.5% below budget
Hydro generation is 70.5% below budget for the current week and 62.4% below budget for the FYTD. This has resulted in increased purchased power volume of 42.8% for the FYTD. FY2008 Estimated Dollar Impact of Volume Variances by Fuel Type (Actual versus Budget)
Slide 5: Shrinking Reserve Margins
Deliverability issues prevent transmission from assets in Entergy to TVA. TVA area reserve margin includes uncommitted IPPs. Shrinking Reserve Margins
Slide 6: Top Peak System Loads
1 Top 20 Peak System Loads 2 32,250 31,750
Slide 7: Peaking and Intermediate Capacity
Peaking capacity • Low capacity factor <15% • Low capital costs • High variable energy costs Risk Mitigation: • Reduced Market exposure • Capacity Price Stabilization • Reserve Requirements • Control of Reliability and Deliverability Intermediate Capacity • Capacity factor <15-60% • Moderate capital
Slide 8: Raw Material Cost Escalation Trends
Raw material price escalation is impacting equipment and finished material supply costs. Raw Material Cost Escalation Trends
Slide 9: Summary
Summary
Tennessee Valley Authority — Corporate Update (November 2007) on 6ix