Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Investor Presentation (September 2014)
86 slides from Tennessee Valley Authority's investor presentation, Sep 25, 2014
Slide 1: Tennessee Valley Authority Regional Resource Stewardship Council
Tennessee Valley Authority Regional Resource Stewardship Council Young Harris, Georgia September 24 and 25, 2014
Slide 2: Welcoming Comments
Welcoming Comments
Slide 3: Safety First
Safety First 3
Slide 4: Agenda
Agenda 8:00 Welcome Russ Townsend, Council Chair Agenda Review Lee Matthews, Facilitator 8:20 DFO Briefing Joe Hoagland, Designated Federal Officer (DFO) 8:30 OGC Update Kendra Mansur, Attorney, Office of General Counsel (OGC) 8:40 Floating Houses Update Holly Oswalt, Specialist, Process Performance
Slide 5: Designated Federal Officer Briefing
Designated Federal Officer Briefing • Welcome • Trout Hatcheries Update • Purpose of Today’s Meeting 5
Slide 6: RRSC Meeting Protocols
RRSC Meeting Protocols Agenda prepared and approved by the Designated Federal Officer (DFO) in Agenda consultation with Council Chair Agenda distributed to Council and an outline is published in the Federal Register prior to each meeting Topics may be submitted to the DFO by any member of the
Slide 7: Natural Resource Stewardship Update: Floating Houses
Natural Resource Stewardship Update: Floating Houses
Slide 8: Floating Houses
Floating Houses Natural Resource Plan 8
Slide 9: Floating Houses: Status
Floating Houses Status • TVA is reviewing its management and oversight of floating houses and nonnavigable houseboats • Our goal is to determine how we 1) address existing issues and 2) manage and regulate these structures going forward • A Notice of Intent was published in the Federal Register Apri
Slide 10: Floating Houses: Scoping Issues
Floating Houses Scoping Issues • Prevalent scoping comments and issues: o Safety of electrical, mooring and anchoring systems o Water quality: proper management of black and grey water o Need stronger regulation, policing, enforcement o Need minimum safety and environmental standards and regular ins
Slide 11: Floating Houses: TVA Concerns
Floating Houses TVA Concerns • Residential-type proposals on water • Structures presented as houseboats but designed and used primarily for habitation at a fixed location • Need to clarify or update regulations with changing times • Owner/public/investor expectations Natural Resource Plan 11
Slide 12: Floating Houses: Examples
Floating Houses Examples: Nonnavigables - Manufactured Houseboats - Floating Houses Natural Resource Plan 12
Slide 13: Residential-Type Use / Harbor Limits
Floating Houses Residential-Type Use / Harbor Limits Natural Resource Plan 13
Slide 14: Disposal and Removal from Reservoir
Floating Houses Disposal and Removal from Reservoir January 2011 – Moored in Marina April 2013 – Report from Stakeholder July 2013 – TVA Cleans up – Approximate Cost $7,000 Natural Resource Plan 14
Slide 15: Floating Houses: Electrical Supply
Floating Houses This initiative seeks to promoteElectrical sustainable Supply campgrounds with safe, high quality camping Natural Resource Plan 15
Slide 16: Floating Houses: Anchoring
Floating Houses Anchoring Natural Resource Plan 16
Slide 17: Sewage Disposal (Black and Grey Water)
Floating Houses Sewage Disposal (Black and Grey Water) Natural Resource Plan 17
Slide 18: Floating Houses: Next Steps
Floating Houses Next Steps • Interagency Team (Tennessee Wildlife Resources Agency, Tennessee Department of Environment & Conservation, Tennessee Department of Commerce & Insurance, North Carolina Department of Environment & Natural Resources, U. S. Army Corps of Engineers) is working on alternative
Slide 19: How To Be Involved
Floating Houses For Information - How To Be Involved • Visit TVA website: www.tva.gov/floatinghouses/index.htm • Attend public meetings • Provide written comments via website, public meetings, or by mail • Invite TVA to meet with your group or association • Invite TVA to visit your site or facility
Slide 20: River Operations: Dam Safety
River Operations: Dam Safety
Slide 21: The TVA System
The TVA System Red =Dams Gold = Coal Purple - Nuclear 21
Slide 22: Structures in TVA Dam Safety Inventory
Structures in TVA Dam Safety Inventory • Traditional river dams, dry ash stacks, levees, etc. • TVA Inventory (142 structures): • Power Operations: 9 Non-River Structures • Projects: 31 Non-River Structures • Nuclear Power Group: 7 Non-River Structures • Natural Resources & Real Property Services: 7
Slide 23: Current Dam Safety Initiatives
Current Dam Safety Initiatives • Re-analysis of river dams — Current Industry Standards — Includes verifying material properties — 5 year program • Risk Informed Decision Making — Screening Level Risk Assessments complete on river dams — Dam Safety Steering Committee pilot underway 23
Slide 24: Dam Safety: Governance, Oversight, Execution and Support
Dam Safety: Governance, Oversight, Execution and Support General Manager Dam Safety & TVA Dam Safety Officer Independent Review Board TVA Dam Safety Governance & Oversight GOVERNANCE & Internal Regulator OVERSIGHT Periodic External Programmatic Review Sets the Standards Setting Standards Ensures Ass
Slide 25: Introduce Advisory Session Topic and Discussion Questions
Introduce Advisory Session Topic and Discussion Questions 1. Does TVA’s ROS approach still balance the objectives in an optimal manner across the Tennessee Valley? 2. Within this operating framework do you have recommendations? 3. Are there other objectives that should be considered and prioritized?
Slide 26: Break
Break 26
Slide 27: River Operations: ROS
River Operations: ROS
Slide 28: River Operations
River Operations 8th Term Regional Resource Stewardship Council September 24-25, 2014 28 28
Slide 29: Topics
Topics • Introduction to TVA’s Integrated Reservoir System • Reservoir Operating Policy History and Overview • Introduction to 2004 Reservoir Operations Study (ROS) • ROS Successes 2004 - Current • ROS & Climatic Extremes 29
Slide 30: TVA Act
TVA Act River system assigned multipurpose role through TVA Act in 1933 (section 9a) …to regulate the stream flow primarily for the purposes of promoting navigation and controlling floods. So far as may be consistent with such purposes, ...for the generation of electric energy... Senator George Norr
Slide 31: Integrated Tennessee River System Provides Multiple Benefits
Integrated Tennessee River System Provides Multiple Benefits Navigation Water Supply Flood-Damage Recreation Reduction Power Water Quality Generation 31
Slide 32: TVA Watershed and Dam Map
‘Api 2008 LEGEND Power Service Area ‘TVA Watershed TVA Hydroelectric Dam ‘TVA Non-Power Dam TVA Pumped-Storage Pl 60mm
Slide 33: River Operations: Operating and Maintaining 49 Projects
River Operations- Responsible for Operating and Maintaining 49 Projects Tributary Storage (Norris) Main River (Fort Loudoun) Tributary Run-of-River (Melton Hill) Tributary Non-Power (Upper Bear) 33
Slide 34: Average Monthly Rain and Runoff
Average Monthly Rain and Runoff 6 Rain Runoff 5 4 Inches 3 2 1 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 34
Slide 35: Reservoir Operating Guides
Reservoir Operating Guides Tennessee River Tributary 40 ft 5 ft 35
Slide 36: Flood Damage Reduction
Flood Damage Reduction • Maintain flood-storage allocation • Store water during flood to reduce crest • Issue flood forecast for regulated streams • Release water at non-flood rate after crest • All downstream riparian areas receive some flood-reduction benefits • Annual average flood damages averte
Slide 37: Flood Damage Reduction
im Flood Damage Reduction Water level without dams [HG Water level reduced by dams ee Dams begin to open Mainstream ra resuics Water gradually released from reservoirs Rainfall capable of — Producting 6” Tributary dams amajor 7 restrict flow Time 37
Slide 38: Navigation
Navigation Paducah Kentucky Cumberland River # KENTUCKY Clarksville Cookeville Nashville Knoxville MELTON HILL Tennessee # FORT LOUDOUN Jackson WATTS BAR # Columbia Shelbyville CHICKAMAUGA # PICKWICK NICKAJACK # Chattanooga Florence WHEELER # # Huntsville Mississippi WILSON Decatur TVA lock and dam
Slide 39: Navigation: Functions and Benefits
Navigation • Functions: Manage flows to maintain a 11-ft waterway for 9-ft draft vessel Supply power for lock operations Maintain locks for year-round navigation Work with the U.S. Army Corps of Engineers to make capital improvements Install and maintain navigational aids on secondary and recreation
Slide 40: Affordable and Reliable Electricity: Hydropower generation
Affordable and Reliable Electricity Hydropower generation • Functions: Manage hydro assets Develop daily/hourly operating plans for the hydro system to meet operating objectives while optimizing hydro value • Benefits: Conventional generating capacity (109 units): 3,538 megawatts Pumped-storage gene
Slide 41: Affordable and Reliable Electricity: Thermal compliance
Affordable and Reliable Electricity, cont. Thermal compliance • Function: Schedule flows to minimize thermal plant derates due to river temperatures • Benefits: x Avoid National Pollutant Discharge Elimination System (NPDES) discharge permit violations x Reduce number and duration of derate occurren
Slide 42: Water Supply
Water Supply • Ensure that 700 water intakes across the Valley are adequately supplied with water • Industry supplied with process water and cooling water • Municipalities supplied with water for household use • Approximately 4.5 million people depend upon the Tennessee River and it tributaries for
Slide 43: Water Quality
Water Quality Functions: Work with plants to keep discharge temperatures from coal-fired and nuclear plants within state permit limits (compliance) Monitor water-quality conditions Meet reservoir-specific and system-wide flow for municipal and industrial waste assimilation as well as aquatic habitat
Slide 44: Recreation
Recreation • Functions: Provide summer elevations for reservoir recreation and releases for tailwater recreation Restrict the drawdown of tributary reservoirs from June 1 through Labor Day Manage the winter drawdown to facilitate boat access Provide releases to support tailwater recreation Stabilize
Slide 45: Dam Safety
Dam Safety • Purposes: Ensure operational and structural integrity of water barriers Ensure compliance with Federal Guidelines for Dam Safety • Functions: Inspection Instrumentation Maintenance and repair of aging structures Emergency action planning 45
Slide 46: Tennessee River Management
Tennessee River Management • TVA has a long history that began with its river management mission • Operations are driven by rainfall and runoff as guided by Reservoir Operations Policy • Integrated operation allows TVA to balance river system benefits: – Navigation River Forecast Center – Flood-dama
Slide 47: Reservoir Operating Policy History and Overview
Reservoir Operating Policy History and Overview 47
Slide 48: History of Reservoir Operations Policy
History of Reservoir Operations Policy • Based on sections of: TVA Act of 1933 Unified Development of the Tennessee River System (1936) Flood Control Act of 1944 • TVA has periodically made changes and adjustments to its reservoir operations policy in order to achieve greater overall value for the p
Slide 49: History of Reservoir Operations Policy: 1930s-1960s
History of Reservoir Operations Policy 1933 1930’s - 1960’s 2014 Momentous Economical Growth • 1940’s – Peak Construction • 1950’s – TVA became self-financing • 1960’s – TVA begins constructing nuclear plants 49
Slide 50: History of Reservoir Operations Policy: 1970s-1990s
History of Reservoir Operations Policy 1933 1970’s - 1990’s 2014 Improved Reservoir System Benefits • Began looking for ways to improve system benefits without adversely impacting objectives and considering: Operational experience Changes in the power industry Environmental requirements TVA’s own mi
Slide 51: History of Reservoir Operations Policy: 2000s
History of Reservoir Operations Policy 1933 2000’s 2014 Reservoir Operations Study • Initiated in 2001; approved in 2003 Recommendations by the 1st term RRSC’s Integrated River Management Subcommittee became the foundation for a comprehensive reservoir operations study • Goal: Prepare an operating p
Slide 52: ROS – Primary Outcomes
ROS – Primary Outcomes • Created balancing guides for tributary storage reservoirs • Increased minimum depth of the Tennessee River navigation channel at two locations • Restricted drawdown of 10 tributary reservoirs from June 1 – Labor Day • Raised flood guides and operating ranges on several tribu
Slide 53: Reservoir Operations Policy
Reservoir Operations Policy • Established a balance of operating objectives • Responsive to values expressed by the public • Consistent with the operating priorities established by the TVA Act • Guides system-wide decisions about how much water is stored in specific reservoirs, how the water is rele
Slide 54: Reservoir Operations Policy Flexibility
Reservoir Operations Policy Flexibility Reservoir Operations Policy allows for operational flexibility to balance reservoir objectives during abnormal periods Examples: 2013 foregoing min/rec flows to meet flood control objectives Grouping basin-specific reservoir balancing due to abnormal regional
Slide 55: ROS Successes: 2004 - Current
ROS Successes: 2004 - Current 55
Slide 56: ROS Successes – Flood Control
ROS Successes – Flood Control • Reducing flood damage is one of the most valuable benefits of the system $240 Million in averted damages on average annually in the Valley $20 Million in averted damages on average annually on Ohio & Mississippi Rivers $840 Million in damages averted in the Valley in
Slide 57: ROS Successes – Flood Control
ROS Successes – Flood Control 57
Slide 58: ROS Successes – Navigation
ROS Successes – Navigation • Allowed for slightly deeper draft barges on the lower Tennessee River; fewer navigation disruptions Increased Wheeler Reservoir minimum pool elevation by 0.5 feet Releases of up to 25,000 cubic feet per second at Kentucky to maintain tailwater elevation of 301’ Special o
Slide 59: ROS Successes – Hydropower
ROS Successes – Hydropower • 139,569 Giga-watt hours (GWh’s) of reliable energy production over the last 10 years • Hydro generation is about 10-15% of the total generation mix • Represents replacement value of approximately $500M annually • Peaking resources to meet TVA’s daily fluctuations in dema
Slide 60: ROS Successes – Water Quality and Supply
ROS Successes – Water Quality and Supply • NPDES thermal limits managed – only 1 Notice of Violation (2010, Browns Ferry Nuclear plant) • Improved and enhanced dissolved oxygen (DO) levels Hatchery supported trout fisheries: $20M/year retail activity in TN 1 • Flows and DO support world class trout
Slide 61: ROS Successes – Recreation
ROS Successes – Recreation • Tributary winter pools raised at Boone, Chatuge, Cherokee, Douglas, Fontana, Hiwassee, Norris, Nottely, South Holston & Watauga • Drawdown Restrictions in place June 1 through Labor Day • Extended recreation season • Flows and water quality below South Holston support “o
Slide 62: Challenges
Challenges • Balancing the competing demands on the system and the overall value to the public • Lack of understanding of the trade-offs associated with individual wants • Example: Can you keep my reservoir higher, longer? FloodControl WaterQuality ThermalCompliance HydropowerGeneration HigherLakeLe
Slide 63: ROS & Climatic Extremes
ROS & Climatic Extremes • Hydrology Overview (wet vs. dry vs. normal years) • Reservoir Impacts 2004 Hurricanes • Reservoir Impacts 2007 - 2008 Record Drought • Reservoir Impacts 2010 – Record Hot • Reservoir Impacts 2013 – Record Wet • 2014 & Beyond NOAA Image – Hurricane Francis South Holston Mari
Slide 64: Variable Hydrology
Variable Hydrology ANNUAL RAINFALL VARIATION Tennessee River Basin above Chattanooga 40.00 20.00 10.00 0.00 -10.00 Deviation From Normal (%} -20.00 -30.00 -40.00
Slide 65: Variable Meteorology
Variable Meteorology 150 Deviation from Mean Natural Flow at Chattanooga, Jun-Jul-Aug Cool & Wet, 30% Warm & Wet, 11% 2013 100 50 2004 2005 2009 0 2014 2012 2006 2011 2010 -50 2008 2007 -100 Cool & Dry, 20% Warm & Dry, 39% -150 -6 -5 -4 -3 -2 -1 0 1 2 3 4 5 6 1948-2014 Deviation from Mean Air Temper
Slide 66: Climate Extremes – 2004
Climate Extremes – 2004 • Hurricanes Ivan, Frances & Jeanne impact the Tennessee Valley - all during the month of September • Tropical moisture produced heavy rainfall in western NC & the central Valley (rainfall gage in Highlands, NC totals 29 inches for September) • Tributary reservoirs had begun
Slide 67: Climate Extremes – 2007 & 2008
Climate Extremes – 2007 & 2008 • Record setting drought impacts the Valley – 2007 became the driest year on modern record • Many streams in the Valley hit new record lows • ROS minimum flow and pulse requirements ensured wetted streams below all tributary dams, despite record low natural inflow • St
Slide 68: Climate Extremes – 2010
Climate Extremes – 2010 • Record setting heat-wave impacts the Valley – 2010 became the hottest summer on record • Water temperatures at Nuclear and Coal plants affected, with only 1 recorded Notice of Violation • Browns Ferry Nuclear required station derates of 50% • Cold water reserved in storage
Slide 69: Climate Extremes – 2013
Climate Extremes – 2013 • Record setting rain impacts the Valley – 2013 became the wettest year on record for the eastern portion of the Valley • 70+ inches widespread, some areas 100+ inches of rainfall for Calendar Year 2013 • Chattanooga reached flood stage for the first time in 10 years, first t
Slide 70: Questions?
Questions? 70
Slide 71: Recap and Safety Message
Recap and Safety Message val
Slide 72: Lunch
Lunch 72
Slide 73: Field Trip
[Mi] Field Trip 73
Slide 74: Tennessee Valley Authority Regional Resource Stewardship Council
Tennessee Valley Authority Regional Resource Stewardship Council Young Harris, Georgia September 24 and 25, 2014
Slide 75: Agenda
Agenda 7:00 Breakfast 8:00 Recap Lee Matthews / Joe Hoagland 8:30 Discussion and Initial Council Advice Matthews & Council 9:15 Break 9:30 Public Comment Period 10:30 Discussion and Initial Advice from the Matthews Council 11:30 Wrap up and Adjourn Hoagland / Matthews 11:45 Lunch (Brasstown Dining R
Slide 76: Council Discussion
Council Discussion 76
Slide 77: Advisory Session Topic and Discussion Questions
Advisory Session Topic and Discussion Questions 1. Does TVA’s ROS approach still balance the objectives in an optimal manner across the Tennessee Valley? 2. Within this operating framework do you have recommendations? 3. Are there other objectives that should be considered and prioritized? 77
Slide 78: Break
Break 78
Slide 79: Public Comment Period
Public Comment Period 79
Slide 80: Public Comment Period
Public Comment Period • Public participation is appreciated • This is a listening session; responses are typically not provided • Members of the public have a set number of minutes for their comments 80
Slide 81: Council Discussion
Council Discussion 81
Slide 82: Advisory Session Topic and Discussion Questions
Advisory Session Topic and Discussion Questions 1. Does TVA’s ROS approach still balance the objectives in an optimal manner across the Tennessee Valley? 2. Within this operating framework do you have recommendations? 3. Are there other objectives that should be considered and prioritized? 82
Slide 83: Wrap Up & Adjourn
Wrap Up & Adjourn 83
Slide 84: Next Steps: Upcoming Meetings
Next Steps: Upcoming Meetings Spring Meeting: April 8-9, 2015 (tentative) Location: TBD Topic: Natural Resources Issues 84
Slide 85: Please stay for lunch and tour
Please stay for lunch and then join us for a tour the new Blue Ridge Mountain Electric Membership Corporation building 85
Slide 86: Thank you!
Thank you! 86
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