Tennessee Valley Authority · NYSE:TVC
Tennessee Valley Authority — Debt Investor Presentation (January 2006)
15 slides from Tennessee Valley Authority's debt investor presentation, January 2006
Slide 1: John M. Hoskins, Senior Vice President & Treasurer
John M. Hoskins Senior Vice President & Treasurer, Tennessee Valley Authority TVA Treasury/Investor Relations
Slide 2: Direct-access Securities from the Nation's Largest Public Power Producer
Direct-access Securities from the Nation’s Largest Public Power Producer Presentation to: The 24th Annual LaSalle Fixed Income Symposium and Exposition January 2006 TVA Treasury/Investor Relations
Slide 3: Corporate Profile
Corporate Profile Ownership Wholly owned U.S. Government Corporation Location Southeastern United States Credit Ratings AAA/Aaa 2005 Total Revenues $7.8 billion 2005 Operating Income $1.3 billion Core Business Wholesale power generation, integrated river system stewardship, and economic development
Slide 4: Corporate Profile
Corporate Profile Power System Resources Hydroelectric, Coal-fired, Nuclear, Combustion Turbine, Diesel Generators, Green Power Total System Capacity 33,981 MW (winter net dependable) 32,259 MW (summer net dependable) TVA-Owned Capacity 30,644 MW (winter net dependable) Total Assets $34.6 billion 20
Slide 5: The Business of Public Power
The Business of Public Power • One Owner – The United States Government. Stakeholders include 8.6+ million residents of the Tennessee Valley region. • Self-Financed – No Federal appropriations support TVA’s power or non- power operations. • Rate Requirements – Statutory requirement of the TVA Act th
Slide 6: TVA's Regulatory Structure
TVA’s Regulatory Structure • Congressional Oversight – TVA is a wholly-owned government corporation with Congressional oversight: — House Transportation & Infrastructure Committee — Senate Environment & Public Works Committee • Government Appointed Board Members – — TVA’s Board members are appointed
Slide 7: TVA's Regulatory Structure
TVA’s Regulatory Structure • GAAP – General purpose financial statements prepared in accordance with U.S. Generally Accepted Accounting Principles • Sarbanes-Oxley Act* —Certifications similar to Section 302 certifications included in quarterly reports and annual Information Statements —Disclosure C
Slide 8: Summary of Governance Changes
Summary of Governance Changes CURRENT NEW STRUCTURE STRUCTURE* 3 Person, Full-Time Board 9 Person, Part-Time Board BOARD STRUCTURE (appointed by President & (appointed by President & confirmed by Senate) confirmed by Senate) RATEMAKING AUTHORITY TVA Board Sets Power Rates TVA Board Sets Power Rates
Slide 9: What Makes TVA Unique as an Agency Issuer?
What Makes TVA Unique as an Agency Issuer? • TVA is an electric power generator and regional stewardship agency, not a financial services firm – America’s largest public power generator – Completely self-funded (receives no taxpayer funding) – Power system infrastructure composed of tangible, cash-p
Slide 10: TVA Debt Maturities
TVA Debt Maturities $3.0 Putable $2.5 Callable Option Free (Bullet Debt) $2.0 $ Billions $1.5 $1.0 $0.5 $- 06 08 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 At December 31, 2005 (unaudited) 24th Annual LaSalle Fixed-Income Symposi
Slide 11: electronotes Program Highlights
electronotes® Program Highlights Date of Inception: April 2001 Issuance (since inception): $1,924 million Number of Issues by Redemptions (since inception): $907 million Original Final Maturity* Average Issue Size*: $19 million Outstanding*: $1,017 million 5-Year Average Coupon*: 4.693% Other 5 12 A
Slide 12: TVA Investor Advantages
TVA Investor Advantages • Strong Credit Ratings – TVA’s rated Power Bonds and notes receive the highest credit ratings available from major credit rating agencies, based on TVA’s business operations and status as a wholly-owned agency. • First Pledge of Payment – TVA bonds and notes are not guarante
Slide 13: TVA Investor Advantages: S&P Domestic Utility Credit Ratings
TVA Investor Advantages S&P Domestic Utility Credit Ratings - December 2005 83 Investment-Grade Speculative Number of Companies While TVA bonds are not 50 government guaranteed, TVA is the only Triple-A 36 rated electric power company in the U.S. 20 17 13 TVA 10 10 9 6 3 3 3 2 3 1 AAA AA AA- A+ A A-
Slide 14: TVA Investor Advantages: Effective Yield Comparison
TVA Investor Advantages Effective Yield Comparison TVA bonds are exempt from state and local income taxes. The effective yield on a state and local income tax exempt TVA bond may therefore be higher than that of a comparable taxable bond with the same coupon rate. Required Taxable Equivalent Yield*a
Slide 15: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements relating to future events and future performance. Any statements regarding expectations, beliefs, plans, projections, estimates, objectives, intentions, assumptions or otherwise relating to future events or performance
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