TVA Strategic Vision 2010 Bob Balzar Vice President, TVA Energy Efficiency and Demand Response Compass VII Conference – Cohn Adult Learning Center, Nashville October 9, 2010

2 Today TVA Strategic Vision Pathways to 2015 Role of Campuses in TVA Vision The EE Challenge

3 TVA Strategic Vision TVA Board adopted a renewed vision to become one of the nations leading providers of low-cost and cleaner energy by 2020 at its meeting on Friday, August 20, 2010 TVA intends to: – lead the nation in improving our air quality – lead the nation in increased nuclear production – lead the Southeast in increased energy efficiency Vision will be guided by the Integrated Resource Plan, with initial results released for public comment September 16, 2010

4 TVA Energy Efficiency Program Goal Regional leadership in energy efficiency amounts to 3.5% of total TVA sales in energy efficiency achievements by 2015

5 Pathways to 2015…

6 Potential Pathways to Ramp Up/ Launch New Programs SE Leadership in EE 6.1 TWh by 2015 Further analysis can help prioritize the addressable potential to areas most economic to TVA and region

7 Energy Efficiency Programs Take Different Shapes Price Responsive Rates Part of TVA Strategy

8 Role of Green Jobs in TVA Vision Many industry experts and studies show 6-to-12 local green jobs per $1 million invested

9 TVA Energy Efficiency Programs Five Residential Programs: –Online Home Evaluation –In-Home Energy Evaluation –Heat Pump Retrofit –New Homes –Manufactured Homes Three Commercial and Industrial Programs –Commercial and Industrial Advice and Incentives (Lighting & HVAC) –Small Business Rebates (Lighting & HVAC) –Major Industrial Program (Technical Assistance & Incentives) Additional program development in 2011 Learn more at

10 TVA Trade Ally Network Growing Jobs Helps consumers save money and energy by providing quality energy efficiency products and services for homes and businesses TVA maintains list of qualified network members and makes it available for local power distributors to share with their customers through TVA energy efficiency program offerings Over 1,000 residential, commercial and industrial members, including lighting contractors, distributors, manufacturers, energy services companies, HVAC contractors and weatherization professionals are included Quality Contractor Network (QCN) is listing of contractors that provide residential services. The Preferred Partners Network (PPN) are trade allies that service commercial and industrial customer needs Learn more at Business categories eligible for membership Architects and engineers Consultants and designers Distributors and suppliers Electrical contractors EMS/controls contractors Energy service companies General contractors Lighting contractors Manufactures reps Mechanical contractors Benefits of participation Business: Company listed as member of TVA Trade Ally Network for customer use Promotion: Participating power distributors and TVA offer support and promotion Advertising: Access to promotional materials as well as advertising exposure and networking opportunities Training: TVA provides free training for all of our programs throughout the Valley Financing: Offered to customers through TVA programs

11 Online or mail-in home energy survey Personalized energy report Free conservation kit : –compact fluorescent light bulbs –outlet and light switch gaskets – filter whistle –faucet aerators –hot water temperature gauge – home thermometer –How to Save brochure Whole-house walk-thru energy assessment by trained evaluator Detailed listing of improvements and financing/ incentive options Work performed by TVA Quality Contractor Network (QCN) Follow up inspection ensures work done right Offers homeowners advice and/or financing options for high-efficiency heat pump installations TVA QCN member performs installation Financing options may include: –Fixed-rate, low-interest loan –Up to 10 year term –Monthly on-bill repayment Incentives for higher efficiency new home construction Builders or homeowners acting as their own contractors are eligible Incentives range from $300 to $800 depending on the efficiency level of the home Do-It-Yourself Home e-Valuation In-Home Energy Evaluation (IHEE) Heat Pump ProgramNew Homes Program In TVAs service area, 686 QCN members perform efficiency work through In-Home Evaluation and Heat Pump Programs QCN Members Growing

12 Small-Scale Renewable Programs Help Bring Installers to Valley Generation Partners - Renewable solar, wind, biomass, or small hydro program allows homeowners and businesses to lower their energy bills by selling the green power they produce Participants receive a $1,000 incentive to help offset start- up costs Solar power purchased at retail rate, plus fuel cost adjustment and 12-cent per kilowatt-hour premium Other eligible technologies receive a 3-cent premium, plus retail rate and fuel cost adjustment When Generation Partners began in 2003 there were two solar installers in the Tennessee Valley. Today there are approximately 40 solar companies in the Valley helping stimulate green economy. Learn more at

13 Voluntary renewable energy choice available through TVA and participating local power companies Consumers can buy green power produced through Generation Partners and from TVA-owned renewable resources, including wind, solar, and methane gas Green power sold in $4 blocks which is 150 kWh, or about 12 percent of the average monthly residential energy use More than 12,000 consumers and businesses across the Valley support program Learn more at Green Power Switch Helps Create Consumer Demand for Renewable Energy During the month of July, 12,389 consumer and business participants in TVA service area purchased 46,494 blocks of green power

14 State/Federal Partnerships Help Strengthen Green Economy TVA/State of Tennessee Recover Act Weatherization Assistance Program –Leverages TVAs home evaluation program to provide basic weatherization training to help ramp workforce for the DOE low income program –TVA has trained 272 energy auditors and 513 weatherization contractors in over 45 classes across the state –TVA will receive diagnostic data for over 12,000 homes weatherized that will provide additional Valley-specific insight on measures that are the most effective State of Tennessee Energy Efficient Schools Initiative –Leverages TVAs commercial program by providing pre and post measurement review on each school –TVA has scheduled 117 pre-measurement review visits, 84 of which have been completed –Over 54 school districts participating, representing 319 individual schools that have received funding commitments

15 Everyone Can Take The EE Challenge 1.Visit and select the Schedule an evaluation 2.Use contact information for your area and call to schedule audit 3.Make recommended improvements using local QCN member 4.Schedule free follow up inspection to make sure work done right 5.Receive cash rebate of up to $500 per home Schedule an In-Home Energy Evaluation 1.Visit and select Energy Saving Tools at top 2.Complete survey and print out energy report 3.Receive a free conservation kit in 4 to 6 weeks Complete an Online Energy Evaluation 1.Visit 2.Sign up here for Green Power Switch by selecting the number of blocks you wish to purchase 3.You will receive a thank you note and a GPS sign for display in your yard within 4 weeks Buy Block(s) of Green Power 1.Visit 2.Contact your local power company to discuss your options and sign Participation Agreement 3.Install solar or wind generation 4.Receive a $1,000 incentive. TVA will also purchase 100% of the renewable energy produced Join Generation Partners

16 Thank you