Profile: Tennessee Valley Authority (TVC.N)

TVC.N on New York Stock Exchange

24.48USD
1 Aug 2013
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Tennessee Valley Authority (TVA) operates public power system and supplies power in Tennessee, northern Alabama, north-eastern Mississippi, and south-western Kentucky and in portions of northern Georgia, western North Carolina, and south-western Virginia. TVA also manages the Tennessee River and certain shoreline to provide recreational opportunities, adequate water supply, and water quality. As of September 30, 2010, TVA provided electricity to 50 ndustrial customers, six federal customers, and 155 distributor customers that serve over nine million people in parts of seven south-eastern states. TVA is wholesaler of power. It sells power to distributor customers, consisting of municipalities and cooperatives that then resell the power to their customers at retail rates. At September 30, 2010, TVA had 11 coal-fired power sites consisting of 58 active units and one idled unit. These facilities accounted for 14,573 mega watts (MW) of summer net capability.

During the fiscal year ended September 30, 2010 (fiscal 2010), TVA purchased coal by basin: 43% from the Illinois Basin; 28% from the Powder River Basin in Wyoming; 20% from the Uinta Basin of Utah and Colorado, and 9% from the Appalachian Basin of Kentucky, Pennsylvania, Tennessee, Virginia, and West Virginia. During fiscal 2010, TVA entered into seven contracts for the purchase of up to 1,380 MW of wind energy. An agreement to purchase an additional 200 MW of wind energy was executed on October 7, 2010. In fiscal 2010, the Company completed the installation of scrubbers at the Kingston Fossil Plant (Kingston). The Lagoon Creek Combined Cycle Facility, which has a summer net capability of approximately 550 MW, began commercial operation on September 28, 2010. TVA completed a 500-kilovolt transmission project in May 2010, as well as upgrades to a 500-kV substation undertaken.

Power generating facilities operated by TVA, as of September 30, 2010, included 29 conventional hydroelectric sites, one pumped storage hydroelectric site, 11 coal-fired sites, three nuclear sites, 11 natural gas and/or oil-fired sites, two diesel generator sites, one wind energy site, one digester gas cofiring site and 14 solar energy sites. TVA acquires power under power purchase agreements of varying duration, as well as short-term contracts of less than 24 hours in duration.

TVA has three nuclear sites consisting of six units in operation. The units at Browns Ferry Nuclear Plant (Browns Ferry) are boiling water reactor units, and the units at the Sequoyah Nuclear Plant (Sequoyah) and Watts Bar Nuclear Plant (Watts Bar) are pressurized water reactor units. As of September 30, 2010, these facilities accounted for 6,632 MW of summer net capability. TVA maintains 29 conventional hydroelectric dams throughout the Tennessee River system and one pumped-storage facility for the production of electricity. As of September 30, 2010, these facilities accounted for 5,490 MW of summer net capability and updates to 57 hydroelectric units had been completed.

As of September 30, 2010, TVA operated 94 combustion turbine units, 87 of which are simple-cycle and seven of which are combined cycle. The simple-cycle units provide a maximum of 5,278 MW of summer net capability. The seven combined cycle units provide a maximum of 2,080 MW of summer net capability. Eighty of the simple-cycle units are fueled by either natural gas or diesel fuel. The remaining seven simple-cycle units, as well as the seven combined cycle units are fueled by natural gas only. Seventy-six of the simple-cycle units are capable of quick-start response allowing full generation capability in approximately 10 minutes. TVA uses combustion turbines as peaking or backup units. As of September 30, 2010, 24 of the simple-cycle combustion turbine units were leased by private entities and leased back to TVA under long-term leases. In addition, as of September 30, 2010, Seven States Southaven, LLC (SSSL) owned an undivided 90% interest in the three Southaven combined cycle units, and TVA has entered into an agreement, under which TVA leases SSSL’s undivided 90% interest in Southaven and operates the entire facility through April 23, 2013. TVA has two diesel generator plants consisting of nine units. As of September 30, 2010, these facilities provided 13 MW of summer net capability.

During fiscal 2010, TVA acquired 26% of the power that it purchased on the power spot market, 9% through short-term power purchase agreements (agreements with a duration of less than one year but longer than the term of spot market purchase), and 65% through long-term power purchase agreements (agreements with a duration of more than one year). Coal consumption at TVA’s coal-fired generating facilities, during 2010, was approximately 36 million tons. During fiscal 2010, 34% of TVA’s coal supply was delivered by rail, 26% was delivered by barge, and 33% was delivered by a combination of barge and rail. In fiscal 2010, TVA purchased all of its natural gas requirements from a variety of suppliers under contracts with terms of one year or less. As of September 30, 2010, all but 14 of TVA’s combustion turbine units were dual fuel capable, and TVA has fuel oil stored on each site for its dual fuel combustion turbines as a backup to natural gas.

Company Address

Tennessee Valley Authority

400 W. Summit Hill Drive
Knoxville   TN   37902
P: +1865.6322101

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