TVA President, Chief Operating Officer Reports Year-end Results
September 28, 2005
The combined performance of TVA’s fossil, nuclear and hydroelectric plants during the 2005 fiscal year resulted in TVA setting numerous records in supplying power to its customers, TVA President and Chief Operating Officer Tom Kilgore told the TVA Board today.
In an operational report to the Board at its meeting in Knoxville, Tenn., two days before the end of the fiscal year, Kilgore said TVA plants are expected to generate more than 160 billion kilowatt hours this year, which is equivalent to 12 percent of electricity consumption by all U.S. households.
“This is the best that TVA’s integrated power system has ever performed,” said Kilgore. “TVA employees kept more than 50 generating units running and 17,000 miles of transmission lines delivering electricity through the challenging summer.”
Kilgore added that in addition to the production and delivery of affordable, reliable energy, TVA continued its historic mission to improve the quality of life in the Tennessee Valley, deliver cleaner air and water, and bring jobs to the southeast region by helping Valley communities compete nationally and globally.
Power demand records for this fiscal year include:
• Meeting a peak demand in excess of 29,000 megawatts for eight straight days in July for the first time in TVA’s history. TVA had never before had power demand that high for more than two consecutive days.
• Setting an all-time power demand record for two consecutive days in July. TVA met its highest demand for electricity ever of 31,924 megawatts on July 26. The record demand a day earlier had surpassed the previous record by more than 1,700 megawatts.
Total power sales for the 2005 fiscal year, which ends Friday, Sept. 30, are projected to be more than 170 billion kilowatt hours with revenues in excess of $7.7 billion. TVA’s 11 fossil plants will generate almost 5 percent more power than they did in 2004, and hydro generation is expected to be 13 percent above normal.
Kilgore reported that TVA will reduce its total financing obligations by $300 million for a total reduction of $2.1 billion since 1996. He also reported on improvements in air quality and reduction in potential flood damage from TVA’s management of the Tennessee River system.
Kilgore said TVA is working to meet future challenges by focusing on operational excellence, achieving financial flexibility, stimulating economic development and providing environmental stewardship. In other business, the Board authorized a public auction sale of approximately 578 acres of land on Nickajack Reservoir in Marion County in return for exchange of land that would allow construction of a residential development on the reservoir.
TVA is the nation’s largest public power provider and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states.
Media Contact: John Moulton, (865) 632-8048
TVA News Bureau, Knoxville, (865) 632-6000
www.tva.com/newsroom
(Mailed/faxed September 28, 2005)
