Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (May 2019)
55 slides from Tennessee Valley Authority's investor presentation, May 9, 2019
Slide 1: Board Meeting
Board Meeting May 9, 2019 Franklin, TN
Slide 2: Public Input Opportunities
Public Input Opportunities • Board public listening session in Chattanooga • RERC meetings & public listening sessions- Murfreesboro & Knoxville • RRSC meeting & public listening session- Kentucky Dam • Integrated Resource Plan (IRP): 50-day public comment period - Knoxville, Memphis, Huntsville, Ch
Slide 3: Public Input Opportunities
Public Input Opportunities • Board public listening session in Franklin • Integrated Resource Plan public webinar with Q&A • IRP Working Group meetings • Lake Guntersville Sustainable Funding Working Group Meeting • Regional Energy Resource Council public webinar • Regional Energy Resource Council m
Slide 4: Board Meeting
Board Meeting May 9, 2019 Franklin, TN
Slide 5: Committee Membership
Committee Membership Audit, Risk, and Regulation Committee Nuclear Oversight Committee John Ryder, Chair Jeff Smith, Chair Kenny Allen Kenny Allen Gina Lodge Skip Thompson A.D. Frazier External Relations Committee People and Performance Committee Richard Howorth, Chair Gina Lodge, Chair A.D. Frazier
Slide 6: Board Meeting
Board Meeting May 9, 2019 Franklin, TN
Slide 7: President's Report
President’s Report JEFF LYASH President and CEO
Slide 8: Franklin, TN
Franklin, TN | 8
Slide 9: Middle Tennessee Local Power Companies
Middle Tennessee Local Power Companies PRESIDENT’S REPORT | 9
Slide 10: Middle Tennessee Local Power Companies
Middle Tennessee Local Power Companies Chris Jones Decosta Jenkins Middle Tennessee Electric Nashville Electric Service PRESIDENT’S REPORT | 10
Slide 11: Local Power Companies
Local Power Companies PRESIDENT’S REPORT | 11
Slide 12: Reliability
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Slide 13: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. PRESIDENT’S REPORT | 13
Slide 14: Energy | Environment | Economic Development
Energy | Environment | Economic Development PRESIDENT’S REPORT | 14
Slide 15: Cleaner & Greener Energy
Cleaner & Greener Energy Emissions from TVA-Owned Generation 51% 2.5 125 CO2 from 2005 Millions of Tons (CO2) Millions of Tons (SO2 & NOX) 2.0 100 99% 1.5 SO2 from 1977 peak 1.0 75 0.5 96% NOx from 1995 peak - 50 1974 1979 1984 1989 1994 1999 2004 2009 2014 PRESIDENT’S REPORT | 15 Emissions data rep
Slide 16: Continuing Economic Development
Continuing Economic Development FYTD Results 46,000 Jobs Created or Retained $6.3 Billion Capital Investment PRESIDENT’S REPORT | 16
Slide 17: Energy | Environment | Economic Development
Energy | Environment | Economic Development PRESIDENT’S REPORT | 17
Slide 18: River Management
River Management PRESIDENT’S REPORT | 18
Slide 19: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. PRESIDENT’S REPORT | 19
Slide 20: Focus Areas
Focus Areas Dr. Joe Hoagland Vice President Enterprise Relations and Innovation PRESIDENT’S REPORT | 20
Slide 21: Focus Areas
Focus Areas Aaron Melda Vice President Transmission Operations and Power Supply PRESIDENT’S REPORT | 21
Slide 22: Focus Areas
Focus Areas Mark Creech Executive Director, Memphis Aaron Melda Vice President Transmission Operations and Power Supply PRESIDENT’S REPORT | 22
Slide 23: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. PRESIDENT’S REPORT | 23
Slide 24: Millington, TN
Millington, TN Photo courtesy of Silicon Ranch. PRESIDENT’S REPORT | 24
Slide 25: Integrated Resource Plan
Integrated Resource Plan PRESIDENT’S REPORT | 25
Slide 26: Integrated Resource Plan
Integrated Resource Plan For more information visit tva.com/IRP PRESIDENT’S REPORT | 26
Slide 27: Our Mission
Our Mission To serve the people of the Tennessee Valley to make life better. PRESIDENT’S REPORT | 27
Slide 28: President's Report
President’s Report JEFF LYASH President and CEO
Slide 29: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 30: Financial Performance Update
Financial Performance Update JOHN THOMAS Executive Vice President and Chief Financial Officer
Slide 31: Q2 Fiscal Year 2019
Q2 Fiscal Year 2019 Net Income: $664M • $88M favorable to budget – $330M favorable to budget excluding accelerated depreciation and write-offs • Higher demand revenue Interest Expense: $45M favorable to budget • Lower debt rates and less reliance on debt • Total Financing Obligations (TFO) $877M les
Slide 32: Q2 Summary Income Statement
Q2 Summary Income Statement $88M favorable due to operating revenue and lower expenses FYTD 2019 FYTD 2018 Variance ‘19 v ’18 $ million Actual Budget Fav/(Unfav) Actual Fav/(Unfav) Operating Revenue $ 5,475 $ 5,158 $ 317 $ 5,341 $ 134 Fuel & Purchased Power 1,494 1,371 (123) 1,463 (31) Total O&M 1,5
Slide 33: Q2 Summary Cash Flow Statement
Q2 Summary Cash Flow Statement TFOs were $877M favorable to budget FYTD 2019 FYTD 2018 $ million Actual Budget Variance Actual '19 v '18 Cash Flow from Operating Activities $ 1,747 $ 1,570 $ 177 $ 1,858 $ (111) Cash Flow used in Investing Activities (1,040) (1,149) 109 (1,141) 101 Cash Flow from Fin
Slide 34: Q2 Summary (Results v. Plan)
Q2 Summary (Results v. Plan) Weather Impacts Increased Demand Revenue Controllable Expenses Flat Diverse Fleet Mitigates Fuel Cost Lower Debt Stronger Balance Sheet BOARD MEETING | 34
Slide 35: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 36: Circuit Breakers 15.5kV – 550kV
Circuit Breakers 15.5kV – 550kV MIKE SKAGGS Executive Vice President and COO
Slide 37: Purpose
Purpose Recommend Board approval to award contracts for circuit breakers rated 15.5kV through 550kV, spare parts and accessories, and related services BOARD MEETING | 37
Slide 38: Background
Background • Approximately 3,000 circuit breakers across the system 500kV Circuit Breaker • Request for proposal issued to replace expiring contracts • Siemens Industry, Mitsubishi Electric Power Products, and ABB recommended as suppliers 161kV Circuit Breaker BOARD MEETING | 38
Slide 39: Proposed Contracts
Proposed Contracts • Base term of five years, options to extend up to three years • Total combined spend not to exceed $125 million • Warranty of at least five years guaranteed • Valley, small, diverse, and disadvantaged businesses to be supported • No minimum amount of work guaranteed BOARD MEETING
Slide 40: Recommendation
Recommendation Recommend Board approval to award contracts to ABB, Inc., Mitsubishi Electric Power Products, Inc., and Siemens Industry, Inc., for circuit breakers rated 15.5kV through 550kV; spare parts and accessories; and field maintenance, testing, installation, and commissioning services. BOARD
Slide 41: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 42: Rate Change – Wholesale Grid Access Charge Adjustment
Rate Change – Wholesale Grid Access Charge Adjustment JOHN THOMAS Executive Vice President and Chief Financial Officer
Slide 43: Background
Background • The 2018 wholesale rate change introduced a Grid Access Charge applicable to loads less than or equal to 5MW on October 1, 2018 • Large changes in load due to consumer expansion, reduction, or movement may result in inappropriate revenue amounts being recovered • TVA and Local Power Com
Slide 44: Recommendation
Recommendation The Board is requested to approve: 1) Changes to the wholesale power rate schedules to provide a mechanism to address changes to the Grid Access Charge (GAC); and 2) Guidelines for how and when to make changes to the GAC; and 3) A delegation of authority to the Chief Executive Officer
Slide 45: Finance, Rates, and Portfolio Committee
Finance, Rates, and Portfolio Committee
Slide 46: Audit, Risk, and Regulation Committee
Audit, Risk, and Regulation Committee
Slide 47: Nuclear Oversight Committee
Nuclear Oversight Committee
Slide 48: Top Innovative Practice Awards
TOP INNOVATIVE PRACTICE AWARDS
Slide 49: People and Performance Committee
People and Performance Committee
Slide 50: External Relations Committee
External Relations Committee
Slide 51: TVA Investment Challenge
TVA Investment Challenge BOARD MEETING | 51
Slide 52: External Relations Committee
External Relations Committee
Slide 53: Robotics Competitions
Robotics Competitions BOARD MEETING | 53
Slide 54: External Relations Committee
External Relations Committee
Slide 55: Slide 55
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