Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (November 2007)
9 slides from Tennessee Valley Authority's investor presentation, November 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
FY2007 Fuel Rate/Volume Variances Favorable Variance from FY2007 Budget $30.0 $20.0 $11.6 $9.4 $5.7 $10.0 $0.0 ($10.0) ($5.4) Average nuclear cost was lower ($20.0) than plan by 6.1% and nuclear ($30.0) generation was lower than plan by (millions) 4.7%. ($40.0) ($50.0) ($60.0) ($70.0) ($57.5) ($64.7
Slide 3: Cumulative Rainfall (Inches)
Cumulative Rainfall (Inches) 60 Normal FY2004 50 FY2005 FY2006 FY2007 FY2008 40 30 20 10 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Slide 4: FY2008 Estimated Dollar Impact of Volume Variances by Fuel Type
FY2008 Estimated Dollar Impact of Volume Variances by Fuel Type (Actual versus Budget) $15,000 $25,000 Favorable $12,000 $20,000 $9,000 $15,000 $6,000 $10,000 $3,000 Hydro generation is 70.5% $5,000 $0 below budget for the current $0 ($3,000) week and 62.4% below budget ($5,000) Cumulative Variance
Slide 5: Shrinking Reserve Margins
Shrinking Reserve Margins Deliverability issues prevent transmission from assets in Entergy to TVA. TVA area reserve margin includes uncommitted IPPs.
Slide 6: Top Peak System Loads
Top 20 Peak System Loads 33,750 33,250 32,750 Megawatts 32,250 31,750 31,250 30,750 30,250 2005 2006 2007 8
Slide 7: Peaking and Intermediate Capacity
Peaking and Intermediate Capacity CY2012 Load Duration Curve vs. Generation M Ws 45000 Load Duration 40000 CTs Curve + Reserves Peaking Hydro 35000 Lagoon Cre e k 30000 Gap 25000 Hydro 20000 15000 Coal 10000 5000 Nucle ar 0 0% Pe rce nt 100% Peaking capacity Intermediate Capacity Base Load • Low cap
Slide 8: Raw Material Cost Escalation Trends
Raw Material Cost Escalation Trends Raw material price escalation is impacting equipment and finished material supply costs.
Slide 9: Summary
Summary
Tennessee Valley Authority — Investor Presentation (November 2007) on 6ix