May 2009

Hot Topics

TVA to buy more renewable and clean energy

At its April meeting, the TVA Board authorized the purchase of as much as 2,000 megawatts of renewable and clean energy by 2011 as part of TVA’s plan to have 50 percent of its power supply from clean and renewable energy sources by 2020.

photo

TVA may begin entering into contracts as early as June 1 with some of the renewable or clean-energy suppliers that provided the most competitive responses to a request for proposals issued in December last year. Renewable-energy sources include wind, hydro, solar or biomass.

“It is our goal to reduce TVA’s environmental footprint by increasing the renewable and clean-energy resources in our generation mix,” said President & Chief Executive Officer Tom Kilgore. “Renewable energy and energy efficiency will be part of our clean-energy portfolio that has zero or near-zero carbon emissions, which will help reduce the impacts of climate change.”

In a report to the TVA Board, Kilgore discussed the latest quarterly fuel cost adjustment that was effective April 1, resulting in a 7-percent decrease in TVA’s average wholesale rates. Combined with a 6-percent decrease Jan. 1, TVA has now rolled back almost 90 percent of the 17-percent fuel cost adjustment that went into effect Oct. 1, 2008. While savings will vary across the Tennessee Valley, the April 1 fuel cost adjustment will mean that residential consumers can expect a decrease on their monthly power bills that ranges from about $4 to $9, depending on how much electricity they use.

TVA reports second-quarter results

Power sales during the second quarter of 2009 decreased by 9.4 percent from sales for the second quarter last year, and power sales for the first six months of fiscal year 2009 were 5.6 percent below sales for the first six months of fiscal year 2008, according to TVA’s quarterly financial report filed with the Securities & Exchange Commission this month.

“The effects of the economic downturn are resulting in less demand for power in the TVA region,” said TVA Chief Financial Officer Kim Greene, noting that sales could decline further if commercial and industrial customers continue to reduce production or cease operation. “The decrease in power sales, continuing expenses to clean up the Kingston ash spill, and the impact of the market decline on our pension and other investments are among the factors that make this a challenging year financially.”