Tennessee Valley Authority PARRS A 2029 Q3 FY2022 earnings call

• Partnerships: 146 local power company customers on 20-year evergreen contracts, partner credits totaled over $141 million in first three quarters, pandemic recovery credits totaled over $380 million. - Workforce: Employees ensured meeting power demand challenges, with June and July having multiple days over 30,000 MW. - Nuclear: Watts Bar Nuclear Plant Unit 2 returned to operation, TVA won Nuclear Energy Institute Top Innovative Practice Award for steam generator replacement. - Sustainability: Slashed carbon emissions by 57% since 2005, aim for net zero by 2050, 70% reduction by 2030 and 80% by 2035. - RFP: Request for proposal for up to 5,000 MW of carbon-free energy projects. - Investments: Completed Boone Dam restoration project. - Innovation: Actively support emerging technologies, new nuclear program with $200 million for advanced reactor tech, partnership with GE-Hitachi for SMR planning.

Operating revenues were 14% higher due to higher load and fuel costs. Overall power sales were 3.5% higher. Interest expense was lower due to lower debt balances. Approximately 39% of electricity came from nuclear, and hydro was a significant renewable source. 146 local power company customers are on 20-year evergreen power contracts accounting for 77% of total operating revenue so far this fiscal year.

• TVA aims to hold base rates flat for a decade. - Expect to invest in fleet transition with debt slightly increasing over next decade as new assets are added. - Pursuing 5,000 MW carbon-free energy RFP to accelerate carbon reduction efforts.

• Fuel price volatility, with natural gas and coal prices significantly higher. - Challenges in fleet transition while maintaining affordability and reliability for customers.

Q: How is TVA assessing current plans to build methane gas plants in light of Nashville resolution and EPA comments?

A: TVA's rates haven't increased due to gas fleet modernization. TVA is a leader in carbon emissions, reducing 57% since 2005. Committed to reliability and resiliency, using entire suite of technologies to ensure affordability, reliability, resiliency, and lower carbon resources, including 5,000 MW clean energy RFP.