EX-99.1 2 exhibit1.htm MATERIALS USED IN MR. KILGORE'S PRESENTATION exhibit1.htm
 
EXHIBIT 99.1
President’s Report
 
 
 
2008 Hard Spots
Large unit outages
Continuing drought
Coal prices increased
Rates increased due to high fuel costs
Market turmoil
 
 
 
3
2008 Drought Impacts
Replacement Power Costs
$569 M
$465 M
 
 
 
2008 Hard Spots
Large unit outages
Continuing drought
Coal prices increased
Rates increased due to high fuel costs
Market turmoil
 
 
 
Fuel Prices
 
 
 
2008 Hard Spots
Large unit outages
Continuing drought
Coal prices increased
Rates increased due to high fuel costs
Market turmoil
 
 
 
2008 Hard Spots
Large unit outages
Continuing drought
Coal prices increased
Rates increased due to high fuel costs
Market turmoil
 
 
 
Market Turmoil
Number of Months from Inception of Crisis to Full Recovery
Past Stock Market Declines (S&P 500 Index)
Courtesy of Cliffwater, LLC
October 1987 Crash
2000-02 Internet Bubble
2007-08 Credit Crisis
1973-74 Bear Market
-46%
2007-2008 crisis S&P 500 return depicted is from October 9, 2007 (prior peak) through October 27, 2008
 
 
 
2008 Highlights
TVA turned 75!
Best safety record in 5 years
Browns Ferry 2 completed a 393-day run
Browns Ferry 1 had a 268 day continuous run and saved
customers $800 million
4 nuclear units were at full power more than 300 days
Bull Run scrubber is 98% complete (in service in 2009)
Kingston scrubber is 78% complete (in service in 2010)
 
 
 
2008 Highlights
Record runs for smaller coal plants:
 • Five sites set records for all units
 • 12 units set individual records
 •  2 records are still in progress
99.999% reliable power delivery for 9th year
Purchase agreement for Chattanooga Office
Issued TVA Environmental Policy
Strong economic development
 
 
 
Energy Education
Photos courtesy of The Carthaginian
 
 
 
Performance Metrics
 
 
 
Rainfall and Runoff
76%
47%
(Eastern Valley)
Fiscal Year 2008 Results
 
 
 
Generation
Fiscal Year 2008 Results
56%
98%
97%
379%
116%
 Totals
Plan  185.6
Actual  179.8
 97% of Normal
 
 
 
Power Sales
Fiscal Year 2008 Results
97%
104%
97%
 Totals
Plan  179.4
Actual  176.3
 98% of Normal
 
 
 
Financials
Fiscal Year 2008 Results
102%
103%
 
 
 
Financials
Fiscal Year 2008 Results
108%
104%
96%
102%
 
 
 
Monthly Bill Comparisons
18
 n Includes customer charges, but excludes taxes
 n Annual averages calculated for those with seasonal rates
1,000 kWh per Month Residential Service
 
 
 
Market Price Comparisons
Natural Gas
$0
$5
$10
$15
Oct-08
Nov-08
Dec-08
$/mmBtu
$0
$10
$20
$30
$40
Oct-08
Nov-08
Dec-08
$/mmBtu
$0
$20
$40
$60
$80
$100
Oct-08
Nov-08
Dec-08
$/MWh
$0
$20
$40
$60
$80
Oct-08
Nov-08
Dec-08
$/ton
Aug
Oct
10/23/2008
Composite Coal
Fuel Oil
Electricity