June 2008

Balanced Scorecard Update

As of April, two of the three TVA-level Winning Performance measures used in calculating employee incentive awards are worse than plan and not expected to reach their threshold level for a payout by the end of the fiscal year.

The two are Equivalent Availability Factor, which compares actual available generation to the maximum available, and Non-Fuel Operations & Maintenance Costs, which tracks non-fuel O&M costs per megawatt-hour sales.

The measure for Connection Point Interruptions, which tracks even momentary interruptions of power caused by the transmission system, is expected to reach or be better than its minimum level for a payout.

To improve performance on the measure for Equivalent Availability Factor, TVA’s nuclear, fossil and hydro groups are working to reduce forced outages and improve reliability and outage planning.

The measure for Non-Fuel O&M costs per megawatt-hour is helped when TVA organizations reduce their spending, but mild temperatures and economic downturn are holding power sales below plan. As of April, reduced sales are expected to keep this measure below its threshold for a payout.

Nine other TVA-level scorecard performance measures are performing at or better than their threshold level.

Another measure, Key Environmental Metrics, is worse than plan but is expected to reach or exceed its threshold by the end of the fiscal year.

The performance targets for the TVA Balanced Scorecard are based on the objectives in the TVA Strategic Plan and approved by the TVA Board.

In addition to the three TVA-level measures, SBU and BU Winning Performance scorecards include additional measures at the SBU and/or BU level. Employees can review scorecard results by going to the Winning Performance site from the InsideNet homepage. n



winning performance table