1. Tennessee Valley Authority John J. McCormick Sr. Vice President, River Operations and Renewables

2. Established by U. S. Congress in 1933 Electricity for >9 Million People – Parts of 7 States Covering >80,000 Square Miles 115 Power Distributors – 56 Direct Served Manage the Nations 7 th Largest River System 15,900 Circuit Miles of Transmission Lines 102,200 Line Structures Diverse Portfolio of Generation 37,000 Megawatts of TVA-Operated Generation Facts About the Tennessee Valley Authority (TVA)

3. Plants/Units First/Last in Service Capacity* Capacity/Energy (MW) (percent) Hydro & Pump Storage TVA’s Diverse Generating Mix Total: 37,300 MW 30/113 1912/1979 5,44315/7 15/7 Coal 11/53 1951/1973 13,807 37/44 37/44 Nuclear 3/6 1974/1996 6,691 18/29 Gas & CT/CC 12/98 1971/2010 8,224 22/4 22/4 Other Contracts /Diesels / Renewable 3,135 Purchases 22/4 8/16 * Summer Net Capability

4. Integrated Resource Plan provides flexibility for changing conditions Also calls for a balanced portfolio of assets Provides greater flexibility to use sources currently most economical Building More Balanced Portfolio 4

5. Gas Price Sensitivity Annual Generation (GWh) Henry Hub Spot Price $/MMBtu 5 Note: The expected range of gas prices will require operational flexibility in both TVA’s gas and coal portfolios

6. 6 TVA Faces Significant Challenges Ahead… Condition of aging fleet Managing coal idling and flexibility Environmental requirements Raccoon Mountain return to service Construction projects for environmental equipment Managing dynamic fuel and power markets