Tamarack Valley Energy Annual Report 2022

FY2022 Annual Report · Tamarack Valley Energy

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Building
the Future
Together

FY 2022 Annual Report

2Tennessee Valley waterways offer beauty and recreational opportunities for
tourists and locals alike.

TENNESSEE VALLEY AUTHORITY Contents

Letter from TVA CEO Jeff Lyash .......................4

People Advantage ..............................................8
Powerful Partnerships .....................................18

Operational Excellence....................................32

Igniting Innovation ...........................................40

Financial Strength ............................................50

TVA Leadership ................................................56

This

GUIDE TO USING TVA’S ANNUAL REPORT AND FORM 10-K

This Annual Report is intended to provide highlighted information of interest about
TVA’s business and operations during its fiscal year (FY) ended Sept. 30, 2022. This
Annual Report should be read in conjunction with TVA’s Form 10-K Annual Report for
the year ended Sept. 30, 2022, filed with the Securities and Exchange Commission.
The Form 10-K provides additional financial, operational and descriptive information,
including TVA’s financial statements. The Form 10-K also provides important information
about various material risks to which TVA is exposed in the course of its operations, which
are important to consider before investing in any TVA securities. The 2022 TVA Annual Report
and Form 10-K do not contain all information about TVA securities that is important for making
investment decisions. Please refer to the appropriate Offering Circular, and any relevant
supplements, for detailed information about TVA securities. TVA’s Form 10-K may be found
at www.tva.com/investors.

STATEMENT/FACTORS THAT MAY AFFECT OUR BUSINESS

We have included in this letter and 2022 TVA Annual Report “forward-looking statements” relating
to our operations, results of operations and other matters that are based on our current expectations,
estimates, assumptions and projections. Words such as “will,” “plan,” “believe” and similar expressions
are used to identify these forward-looking statements. These statements are not guarantees of future
performance and involve risks, uncertainties and assumptions that are difficult to predict. Forward-looking
statements are based upon assumptions as to future events that may not prove to be accurate. Actual
outcomes and results may differ materially from what is described or forecast in these forward-looking
statements. Risks, uncertainties and other factors that might cause such differences, some of which could be
material, include, but are not limited to, the factors discussed in our Form 10-K and Quarterly Reports on Form
10-Q under the sections entitled “Forward-Looking Information,” “Risk Factors” and “Management’s Discus-
sion and Analysis of Financial Condition and Results of Operations.” Our forward-looking statements speak only

as of the date of this letter and the 2022 Annual Report or as of the date they are made, and we undertake no
obligation to update them.

TVA ANNUAL REPORT FY 2022

Dear fellow stakeholders,

Tracy and I have been blessed with nine grandchildren, each with
unique personalities, talents and perspectives. It is a joy to be part of
their lives and lifting them up as they grow.

Almost everything we accomplish in life is the product of support and
encouragement from others…family, friends, community. From our
parents’ guidance during childhood, to the efforts of teachers, coaches,
mentors and spiritual leaders…it’s easy to see how almost everything
we become is built on the shoulders of others.

Nine decades ago, TVA arose as a force for good. To lift up a struggling
region of our nation. TVA’s very foundation is built upon a strong mission
to benefit the public good. It’s a mission that has stood the test of time.

Today, the challenges are different yet no less critical to the
communities we serve.

At TVA, our strength lies in our collective power. And that power comes
from the unique experiences, perspectives and knowledge each
individual brings to the table.

Building
the Future...
With You

Mission of Service
Every day, we deliver on our mission, focused on:

• Energy: affordable, reliable, resilient and clean
• Environmental Stewardship: protecting and

preserving public lands and water

• Economic Development: attracting jobs and

capital investment

TENNESSEE VALLEY AUTHORITY

Providing support when
it’s needed most

Our team members take this mission of service to heart, and they rise to
the call time and again.

An example of this dedication to community lies in TVA’s response to
the devastating tornado outbreak that left a swath of destruction miles
long across Kentucky last December.

When I reflect on our team members’ response to tragedies such
as this one, I’m grateful. Around the clock, more than 300 TVA
transmission employees rebuilt damaged transmission structures
and reconnected lines. Other employees addressed critical
needs — food, water, supplies, equipment.

I met with my friend Marty Ivy of Mayfield Electric and Water
Systems to see firsthand the storm system’s toll on lives and
property. It was astonishing. Meanwhile, the outpouring of
support was incredible.

The strength of partnerships — support for each other in
times of need — cannot be overstated.

Similarly awe-inspiring is the spirit of innovation TVA’s
team members bring to their roles each day, from
that very first day in 1933.

Throughout its history, TVA has been an innovator.
It was among the first to harness the river system
for power generation and flood control. Then,
at the dawn of the commercial nuclear age,
TVA constructed some of the earliest nuclear
reactors in the nation.

Today, we recognize the urgency and TVA’s
unique position to lead in developing
solutions that will help deliver a carbon-
free energy future for our region and
the nation. It requires innovation and
partnerships to go further, faster to
make our vision a reality.

Marty Ivy, of Mayfield Electric and Water Systems, TVA’s Jeff Lyash,
Jeannette Mills and Don Moul survey the damage.

TVA Customer Relations manager Brent Powell organized holiday donations for the
Mayfield community post-storm. Left: Christopher Smith, TVA Community Relations
TVA ANNUAL REPORT FY 2022

manager for the north region, provided support in the community.

To help achieve this, we are expanding our renewable
generation and researching emerging technologies. We are

optimizing our existing nuclear fleet and demonstrating
excellent performance.

And we are looking ahead as we explore advanced nuclear
technology — small modular reactors — as part of our pursuit of a
net-zero carbon energy future.

Delivering on our promises
As we innovate and help our neighbors, we also continually work to
lower our costs. These savings are passed on to our communities.

We recognize the impact inflation has had on families and are focused
on doing everything we can to keep energy costs as low as possible.

Residential customers served by the top 100 U.S. utilities pay around
80% more for energy than customers served by TVA, and our industrial
rates are lower than more than 95% of the nation.

A big part of delivering on our promises is ensuring we provide reliable,
resilient energy.

The strength of our power system was demonstrated during record
freezing temperatures last February and record-setting peak and daily
energy records in both May and June.

TVA has delivered energy with 99.999% reliability for 23 consecutive
years, putting our performance in the top quartile among the nation’s
largest utilities.

To ensure our customers can always count on us, we continually
invest in our system. This year, such investment included significant
infrastructure improvements to the grid and the completion of a seven-
year remediation project at Boone Dam in upper East Tennessee.

This project was the largest dam modification project in TVA history. It
was completed safely, on time, and under budget; and it is receiving
national accolades as a geotechnical engineering feat.

Economic development is also fundamental to TVA’s work in the
region. This past year, TVA helped create or retain an estimated
66,500 jobs and more than $10.2 billion in projected capital
investments.

For these and other achievements, Site Selection magazine
recognized TVA as a “Top Utility for Economic Development”
for the 17th consecutive year.

TVA dams control flooding along the
Tennessee River watershed.

TVA manages the Tennessee River,
which attracts an estimated 285,000
paddlers each year.

TENNESSEE VALLEY AUTHORITY

Living our values
At TVA, our core values — Safety, Integrity, Inclusion and Service —
define how we interact with our customers, communities and — most
importantly — each other. These are more than just words. We hold
ourselves and each other accountable to these values every day.

We are committed to a TVA that truly values inclusion with diversity,
which treats people with respect and dignity, and where everyone can
do their best work and be their best self every day.

I am pleased to report that TVA became the first federal agency to earn
the coveted Compliance Leader Verification™ from Ethisphere® — a
global leader in ethical business practices. This honor demonstrates
that TVA fosters a culture of ethics and integrity that builds public trust.

Joining the TVA family was one of the best decisions I’ve ever made.
I am honored to serve with such a talented and dedicated group of
individuals. Our mission drives and inspires us to pursue new ideas and
innovative solutions that improve our service to the people who call our
region home.

It’s an exciting time to be at TVA. It’s a time of challenges and
opportunities, a time when the innovative spirit of our workforce will
be called upon to solve complex issues and open the door to new
ways of thinking. It’s the beginning of a highly emergent period in the
development of our nation’s clean energy future, and TVA is helping lead
that transformation.

Safety
We are committed to the
safety and well-being of
each TVA employee and the
communities we serve.

Integrity
We are honest and
straightforward.

Inclusion
We strive to treat everyone
with dignity and respect by
welcoming each person’s
individuality so we can all
reach our full potential.

Throughout the history of TVA, we have
been defined more than anything by our
ability to respond to challenges. Those
challenges take many forms — war,
tornadoes, ice storms, record heat waves,
droughts, financial market uncertainty,
political and regulatory uncertainty.
Despite these challenges, we continue to
demonstrate that we are up to the task.

Jeff Lyash
President and Chief Executive Officer
TENNESSEE VALLEY AUTHORITY

Service
We are proud to serve in the
communities in which we
live, work and play.

TVA President and CEO Jeff Lyash joins partners at the opening of a Fast Charge Network electric vehicle charging site in Martin, Tennessee.

TVA ANNUAL REPORT FY 2022

PEOPLE
ADVANTAGE

Building the Future...
Together

The strength of TVA is our people. Together, we are building a
stronger future — one that propels our region forward as an
innovative, thriving and beautiful place to call home.

‘Precise choreography’
Team works together to accomplish heavy lift at Watts Bar Nuclear Plant

Safety always comes first.

TVA employees and contractors live by these
words, and never were they truer than when TVA
replaced four steam generators at our Watts Bar
Nuclear Plant Unit 2 in Spring City, Tennessee.

The complex project,
which required a year
of planning and a few
months of execution,
will help support decades
of reliable generation of
carbon-free energy.

“From a complexity
standpoint, the only thing that
would have been more complex
would have been constructing
an entire unit,” said Tim Rausch,
Executive Vice President and Chief
Nuclear Officer at TVA. “We moved
steam generators weighing 800,000
pounds each, and the team of TVA
employees and 1,200 supplemental
workers performed more than 26,000
tasks during the outage.”

Carol Barajas
TVA vice president, nuclear projects
and subsequent license renewal

TENNESSEE VALLEY AUTHORITY

“The project combined state-of-the-art
technology, precise choreography and extensive
planning put into action — all with an accuracy
that is measured in millimeters and completed in a
nuclear energy environment,” he said.

The person at the heart of the choreography
was Carol Barajas, vice president of the Watts
Bar steam generator replacement project.
Under Carol’s leadership, the team — which
included laborers from every trade imaginable —
completed the work with no impact to individual,
radiological, nuclear or environmental safety.

Prior to being taken offline for the scheduled
outage, Unit 2 had produced more than 11.4
billion kilowatt-hours of carbon-free energy
during its previous 18-month operation cycle,
enough to supply the annual energy needs of
912,000 homes.

The project was accelerated because in
November 2020, during the previous Unit 2
outage, TVA discovered degradation of one of
the steam generators. Unit 2 generators were
planned to be replaced in Fall 2023, but the
project was moved up by 18 months as a
proactive measure.

“We’ve optimized Watts Bar Unit 2
performance for the next 40 to 60 years,”
Rausch said.

PEOPLE
POWER

MORE THAN

10,000

Employees are the
backbone of TVA

MORE THAN

19,000

Retirees have
established
TVA’s legacy

APPROXIMATELY

18%

Of the workforce
are Veterans

58%

Of employees
are represented
by Unions

Unions represent
TVA employees
and contractors

Carol Barajas and Tim Rausch, Executive Vice President and Chief Nuclear Officer, stand next to a mobile crane used for the Watts Bar
steam generator replacement project.

TVA ANNUAL REPORT FY 2022

Carol Barajas, who led the Watts Bar steam generator replacement project, leads a tour of local officials inside
the steam generator replacement outage control center.

The project’s safety work included rigorous
safety and protocol training related to working in
a nuclear facility. The project team also paid
close attention to the weather, since the large
crane lifting the 67-feet-long by 15-feet-wide
steam generators could not be used on highly
windy days.

Barajas said two major undertakings that
contributed to the success of the project included:

• Building a permanent structure onsite to

accommodate the large team, thus making
multidisciplinary team meetings and access to
the Watts Bar facility easier, and

LEADERSHIP

Savoy magazine named
Jeannette Mills, Executive
Vice President and Chief
External Relations Officer,
to its 2022 Most Influential
Black Americans in
Corporate America list.

Forbes magazine ranked TVA
among the Top 15 Best Employers
by State for 2022 for the fourth
consecutive year.

• Using full-scale mockups to practice critical
tasks such as cutting concrete around the
generators, which helped the team validate
assumptions and consider all contingencies
prior to work on the actual generators.

At the end of the day, though, the project’s most
important element was its people.

“The piece that led to our success was
establishing a culture of continuous improvement,
one that gave everyone a voice for feedback and
that was agile to pivoting and making adjustments
as necessary,” said Barajas, who today is vice
president of nuclear projects and subsequent
license renewal at TVA. “Leaders spent
time in the field every day, and we worked
to ensure that every person knew they were
playing a role in the project’s success.”

Barajas’ positive attitude was one of the
reasons she was tapped to lead the project,
Rausch said.

“Carol has a great attitude about work and
life, and this project required her to lead
this large, diverse team in a way that would
achieve precise choreography and safety,”
Rausch said. “She worked through good
days and challenging days in a way that
made people want to be part of the
project’s success.”

Sue Collins, Executive Vice President and
Chief People and Communications Officer,
said Barajas’ experience is a prime example
of TVA’s strategic approach to providing
growth opportunities at TVA.

TENNESSEE VALLEY AUTHORITY INTEGRITY

“This year, TVA became the first federal agency
in the nation to earn the Compliance Leader
Verification™ designation from Ethisphere®. This
designation means that TVA has a best-in-class
Ethics & Compliance program. While we are pleased
with this accomplishment, we will continue to evolve
our ethical culture and refine our processes.”

—David Fountain, TVA Executive Vice President & General Counsel

“Our people are our strength,” Collins said. “Carol
grew from this experience, as did everyone who
participated on the project. The team was open
to different perspectives and worked inclusively
toward solutions together. It’s what built TVA in
the past and what will build TVA in the future.
It’s the TVA way.”

INCLUSION

Talent Dimensions and the Global ERG
Network named TVA a 2022 Diversity
Impact Award Top 10 Diversity Action
Award recipient.

TVA is named No. 4 on the 2022
DiversityInc Top Companies for
Utilities list.

Bill Kilbride (left), Chair of the TVA Board of Directors, visits Watts Bar Nuclear Plant Unit 2 for an up-close look at the steam
generator replacement work.

TVA ANNUAL REPORT FY 2022

‘We go in listening’
Environmental justice approach creates a brighter future for our communities

“We began by looking at all of the programs
we offer in lower-income communities —
programs such as Home Uplift, School Uplift
and Community Centered Growth — and the
picture emerged that we have been doing a lot
of this work already,” said Skip Markham, senior
manager of Regulatory Affairs at TVA. “So now,
we’re being more strategic and more focused in
our outreach, and we’re also working within TVA
to enhance communication and bring consistency
to our efforts.”

Horn said TVA’s Environmental Justice, which
sits within TVA’s Sustainability Program, is about
creating a brighter future for our neighbors
and partners.

“We are working to ensure that everyone has the
opportunity to move forward and that no one
gets left behind,” she said. “The ultimate goal is
to have environmental justice be part of every
decision we make across TVA. Everything we do
should be through the lens of considering those
less fortunate. It’s TVA’s mission. It’s who we are.”

TVA Allen Fossil Plant restoration project team members
and community partners help clean up the Tchulahoma
Corridor in Memphis.

For Janice Horn, there is nothing more important
than listening.

Listening to people in neighborhoods across
the Tennessee Valley. Listening to community
partners. And listening to her teammates.

As senior program manager of Environmental
Justice at TVA, Horn is leading our efforts to
coordinate how we support and engage with
people in disadvantaged communities.

“It is important that we meet our stakeholders
where they are — in their communities, and that
we listen to what they need,” Horn said. “We
don’t go in talking; we go in listening. Then, once
we know what they need, we can tell them about
programs that might help and how they can
access them.”

While working with stakeholders is foundational to
TVA’s mission and the public power model, TVA is
creating more structure around our environmental
justice work to align with presidential executive
orders that frame federal agencies’ recent
efforts to address disproportionate health,
environmental, economic and climate
impacts on disadvantaged communities.

During FY 2022, TVA created a
multidisciplinary Environmental Justice
Core Team that is developing a
framework for how to better identify
disadvantaged communities and
meet their needs and established
a broader Environmental Justice
Regulatory and Policy Team for
enterprise-wide perspective
and coordination.

“The ultimate goal is to have
environmental justice be
part of every decision
we make across TVA.”

—Janice Horn, TVA senior program
manager of Environmental Justice

TENNESSEE VALLEY AUTHORITY ‘A positive impact’
TVA is committed to supporting
our Veterans

In 2004, Scott Venables finished eight years of
service in the U.S. Army. While considering what
to do next, a friend told him that TVA offered
training and preference to Veterans.

That information changed his life.

Venables participated in TVA’s multi-skill training
program, then was hired by TVA as a pipe fitter
— a job he held for 16 years. Today, he is the
maintenance coordinator at our Gallatin Fossil
Plant in Sumner County, Tennessee.

“As an employer who treats Veterans well, TVA
is amazing. There is no other way to put it,”
Venables said. “My annual salary is much higher
than it would be without TVA’s initial training and
employment, and that has positively impacted
my whole family — my wife, my kids and even my
parents, who we take on vacations they might not
have gone on otherwise.”

Venables, who served four years as a combat
engineer and four years as an Apache helicopter
crew chief, is paying it forward as an active
member in TVA’s Veterans Employee Resource
Group (ERG).

With more than 1,800 Veterans employed at
TVA, the group serves as a hub for networking,
professional and personal support for fellow

“We have high regard for all who

protect our country. It’s important
for us to give back and find ways to
support our Veterans, their families
and Veteran-owned businesses
in the Tennessee Valley.”

—Allen Clare, TVA executive sponsor of the Veterans ERG
and vice president of River and Resources Stewardship

Veterans, and a source of camaraderie among
those who have served. Its members also support
Veterans outside TVA, such as Veterans impacted
by extreme weather events or those who are
without housing.

At TVA, we actively recruit Veterans, offer paid
military leave and guaranteed job retention for
active-duty Reservists and members of the
National Guard, and support military spouses
and families.

“We have high regard for all who protect our
country,” said Allen Clare, executive sponsor of
the Veterans ERG and vice president of River and
Resources Stewardship at TVA. “It’s important
for us to give back and find ways to support
our Veterans, their families and Veteran-owned
businesses in the Tennessee Valley.”

2022 Military Friendly® Supplier
Diversity Program Award

TVA ranked No. 1 for 2022 and a Top 10
designation three years in a row.

2022 Military Friendly® Employer Award

TVA is ranked No. 3.

2022 Military Friendly® Spouse
Friendly Employers Award

TVA is ranked No. 8.

VETS Indexes 5-Star Employer

Recognizes veteran employers that
distinguish themselves

TVA ANNUAL REPORT FY 2022

‘A one-of-a-kind project’
Boone Dam technical director recognized for engineering leadership

As technical director of the largest dam safety
modification in TVA history, Chris Saucier knew
the success of our Boone Dam Remediation
Project hinged on one thing: teamwork.

Saucier led a cross-functional, 60-member team
that designed the dam repair and oversaw its
construction to return the dam to service for the
people of the Tennessee Valley.

The seven-year, $326 million project included the
challenging construction of an underground cutoff
wall to eliminate seepage and ensure dam safety.

Thanks to Saucier, his team and many dedicated
TVA partners, the site was reopened to the public

in May 2022 and the reservoir has returned to
normal operations.

Along with the numerous technical advancements
achieved during the project, Saucier facilitated
new strategies for agency reviews and
approvals required for project closure and
reservoir operation, further advancing TVA’s
implementation of risk-informed decision-making
in its Dam Safety program.

Following the final stage of remediation, which
demonstrated successful performance during
reservoir refilling, an external independent review
board recognized many of the project’s practices
as new standards for the industry.

“This is really about the contributions of a whole team. It reflects
efforts of a lot of people inside TVA who have worked together
successfully. This project is recognized as being special by
people all over the world, but most importantly, it was special
for those we serve right here in the Tennessee Valley.”

—Chris Saucier, 2022 Recipient, TVA Ike Zeringue Engineering Award

TENNESSEE VALLEY AUTHORITY

in North Georgia as well as Douglas Dam and
Cherokee Dam in eastern Tennessee.

A father of five, he is passionate about his family
— and also his work. He considers his TVA
engineering award to be a team award.

“This is really about the contributions of a whole
team,” he said. “It reflects efforts of a lot of
people inside TVA who have worked together
successfully. This project is recognized as being
special by people all over the world, but most
importantly, it was special for those we serve
right here in the Tennessee Valley.”

For his efforts, TVA named Saucier this year’s
winner of our highest engineering honor — the Ike
Zeringue Engineering Award. Additionally, out of
106,000 engineers employed by federal agencies,
he was nominated as a Top 10 finalist for Federal
Engineer of the Year.

“This was a technical project, a one-of-a-kind
project,” Saucier said of the project at Boone
Dam, located in Kingsport, Tennessee. “It was a
huge technical accomplishment.”

Credit for the success of the project, he noted,
should go to the talented people who found
innovative solutions to complex challenges.

“With a strong team working together, we can do
anything,” he said.

At TVA, Saucier has worked as a geotechnical
engineer in Dam Safety and in Civil Projects and
has been involved with repairs at Blue Ridge Dam

Chris Saucier led a cross-functional, 60-member team that designed the
Boone Dam repair and oversaw its repair and remediation.

TVA ANNUAL REPORT FY 2022

TVA’s Sara Bayles, one of the leaders of the accessible nature outing, cheers for a participant as she holds Sadie, the
3-year-old boa constrictor. Opposite page: TVA’s Damien Simbeck discusses native plants with the group.

Smiling from ear to ear
Accessible nature outing provides a path toward inclusion

On a beautiful morning in June 2022, participants
of an accessible nature outing experienced the
beauty of the outdoors together at the TVA Native
Plant Garden Trail in Muscle Shoals, Alabama.

“It was something that would make me feel more
important to the community,” said Tyler Patterson,
a 30-year-old participant in the adaptive program
at Muscle Shoals Parks and Recreation.

Representatives from TVA and two partners,
the Alabama Department of Conservation and
Natural Resources and the Muscle Shoals
National Heritage Area, organized the program to
give people of varied abilities the opportunity to
explore native birds, insects and plants along
the paved trail.

Event leaders pointed out and explained
sensory aspects of nature so all participants
— from children through adults — could enjoy
the trail. Some participants said they’d never
participated in this type of event because
outdoor activities often are geared toward more
able-bodied people.

Finn Bayles, a 12-year-old from Florence, Ala., has
a visual impairment. He greatly enjoyed the day.
“Most trails aren’t accessible, and I think it’s good
for people with special needs to do something
fun,” he said.

TVA places emphasis on diversity with inclusion
everywhere — from the workplace to recreational
trails. The coordinators said the day exceeded
their expectations, and they plan to expand
the programming.

“I smiled from ear to ear,” said Sara Bayles,
TVA Watershed representative. “I loved seeing
them learn.”

As the group ventured into the woods, Damien Simbeck
from TVA Natural Resources guided the group, sharing his
knowledge with the participants. Heads turned, searching for
objects to mark off on the bingo boards, and eyes followed the
movement of birds overhead.

TENNESSEE VALLEY AUTHORITY

“Inclusion is at the heart of who we are at TVA. It
is the lever that turns diversity into results — for
business, but more importantly, for people.”

—Megan Flynn, TVA Vice President, Talent & Culture and Chief Diversity & Inclusion Officer

TVA ANNUAL REPORT FY 2022

POWERFUL
PARTNERSHIPS

Building the Future...
with Partners

We are stronger together. At TVA, partnerships are
everything — with local power companies, directly
served customers, industry partners, governments,
communities and schools. We are in this together,
creating a culture of caring for the Tennessee
Valley and beyond.

‘Unbelievable’ devastation
In Mayfield’s darkest hour, TVA responds with warmth
and light to neighbors’ plight

During the late evening of Friday, Dec. 10, 2021, a violent tornado
raged across western Kentucky.

Communities including Bowling Green and Pembroke felt the
storm’s wrath, yet it was the city of Mayfield where the EF4
tornado produced the most catastrophic damage.

The next morning’s dawn light showed the massive scale
of destruction — lives lost, homes flattened and a historic
downtown buried beneath bricks and other debris.

TVA responded immediately to provide support and
resources to more than 250,000 residents in western
Kentucky and northwest Tennessee who lost a great
deal more than power.

“Even as we were working with local power
companies to restore damaged structures and
lines to return power, these storms were
continuing to devastate towns, families and
businesses,” said TVA President and CEO Jeff
Lyash. “Our thoughts and prayers go out to
those who lost loved ones and suffered loss
of homes and buildings, and those who lost
their entire community.”

TENNESSEE VALLEY AUTHORITY TVA is the nation’s largest
public power system,
partnering with 153 local
power companies to supply
electricity to approximately
10 million people across seven
Southeastern states and 58
directly served customers,
including 51 industrial
customers and seven military
and federal installations.

TVA team members supported crews heading into
the field as part of rapid response efforts.

“TVA offered support for meals, for lodging, for
lineworkers, moral support — they gave me hope
that we were going to get throught this,” said
Marty Ivy, General Superintendent, Mayfield
Electric and Water Systems. “We felt like
someone cared.”

In the aftermath, TVA field tech Scott Stockton
delivered food to responders, stopping in
cornfields where groups of linemen huddled in the
near darkness, grateful for the hot meal — fuel to
keep them going as they worked 24/7 to restore
power to their neighbors.

“It looked like a bomb had gone off,” Stockton
said. “The linemen and responders are warriors
that helped provide warmth and light to all those
left in the dark.”

Passing through the most affected areas,
Stockton found a bewildered man wandering
outside a destroyed pharmacy in the dark with
nothing but a plastic bag full of clothes. His home
demolished, the man had nowhere to go until
Stockton gave him a ride and some food.

“He didn’t have anyone, but he had us — he had
TVA,” Stockton said.

TVA’s initial restoration began Friday night when
the first lines went out of service. Engineers,
operations, administrative staff and supply chain
team members all began supporting crews
heading into the field as part of the rapid
response efforts.

“TVA offered support for meals, for lodging, for lineworkers,
moral support — they gave me hope that we were going
to get through this. We felt like someone cared.”

— Marty Ivy, General Superintendent, Mayfield Electric and Water Systems

TVA ANNUAL REPORT FY 2022

Dawn light showed the massive scale of destruction after an EF4 tornado hit Mayfield, Kentucky,
late on Dec. 10, 2021.

“The devastation in Mayfield was unbelievable,”
said TVA customer relations manager Brent
Powell. “But the response was amazing. People
from all over the country poured into western
Kentucky to provide supplies, food, toys and
volunteer hours. TVA employees stepped up by
purchasing items on the Amazon wish list, which
continued to support the community through the
next few months.”

While the TVA power system remained stable,
it suffered heavy damage, as did multiple local
power company (LPC) systems and facilities.

“We’re in this for the long haul. We are
part of these impacted communities,
and we are going to be here to support
for however long it takes to get our
neighbors back on their feet.”

— Justin Maierhofer, TVA vice president, north region

TVA crews arrived that night to work on the top
priorities of repairing electric system damage,
delivering emergency relief supplies and providing
portable trailers to LPCs with damaged buildings.

“TVA’s system lost 100 power structures, 31
transmission lines and 21 customer connection
points,” said Doug Bailey, vice president of
Transmission Field Operations. “TVA crews
worked 24/7 to completely restore the power
system in about 136 hours — an impressive feat.”

TVA dedicated 21 of its own line crews, two
additional contractor crews and three TVA
helicopters to the effort.

“Our folks know our system and know how to
get things done because they’re working inside
it every day,” Bailey said. “That’s why our own
construction workforce is our single greatest
asset.”

TVA’s Mayfield customer service center became
temporary housing for linemen and emergency
personnel. Lining its walls were community
donations of pallets of water and food, piles of
blue tarps and a collection of hammers and nails
to protect people’s homes.

TENNESSEE VALLEY AUTHORITY

TVA also provided generators and
electronics to improve cellular and
internet capability as well as shower
and restroom facilities.

In the weeks and months that followed,
TVA’s north region community relations
team members continued to address
the needs of families through Emergency
Management donation sites and Family
Resource & Youth Service centers.

“Our team was able to act quickly, not only
to repair damaged transmission lines, but also
to get boots on the ground connecting with
customers, local officials and the community.
We were able to get real-time feedback on what
was needed where and when, so TVA’s resources
were put right where they were needed,” said vice
president of the north region, Justin Maierhofer.

Some of TVA’s actions:

• Donated an initial $100,000 to relief efforts.
• Supplied food and support to the Mayfield

Electric team as they continued their rescue
and recovery efforts.

• Coordinated with local officials to deliver

7,000 bottles of water to Mayfield due to the
destruction of their city water system.

• Donated 10,000 surgical masks, 1,000 tarps
with hammers and nails, cots and blankets,
and personal care items.

• Delivered portable transformers to speed
the restoration of damaged substations.
• Supplied portable trailers to impacted
local power companies to assist with
recovery efforts.

• Opened TVA’s Mayfield service center for
use as a central location for repair supplies
and restoration support.

• Routed additional power system repair

supplies and components to the
impacted area.

• Relocated TVA line crews to the area and
brought in contract crews to support.

TVA provided three helicopters to assist in power restoration.
Crews worked night and day to get the power system back up
and running in 136 hours.

• TVA vegetation maintenance personnel

cleared trees and other debris to support
transmission line repair.

• TVA Police assisted local law enforcement

with traffic control.

“I can’t thank my brothers and sisters at
TVA enough for their contribution to my
community in its time of need,” Powell said.

“We’re in this for the long haul,” Maierhofer
said. “We are part of these impacted
communities, and we are going to be
here to support for however long it
takes to get our neighbors back on
their feet.”

TVA immediately responded
with support and resources

to impacted residents in
western Kentucky and

northwest Tennessee.

TVA ANNUAL REPORT FY 2022

‘The bond of community’
When ice storms cut power to the Memphis
area, TVA responded

When wintry storms swept through parts of TVA’s
west region in February of 2022, nearly one-third
of the Memphis-area population, or 240,000
residents, found themselves without power.

“I call it a tragedy when people don’t have power.
They have no way to keep warm, cook food or
have a hot meal,” said the Rev. James Delaney,
pastor of St. John Missionary Baptist Church in
the Orange Mound community. “Not only did TVA
provide food, but it was cooked, too.”

In addition to donating 5,000 meals, TVA offered
700 snack bags to Memphis Light, Gas and
Water’s front-line team as they worked to restore
power. Other community support included
establishing two warming centers and providing
essential items such as sleeping bags, blankets,
toiletries, disposable masks and hand sanitizer at
locations throughout the city.

In the Westwood area, TVA stationed a food truck
at Mount Vernon Church for families braving the
cold. The Rev. Melvin Watkins is pastor there.

“As citizens who are tied together through the
bond of community, it is important for us to

TVA provided meals to Memphis Light, Gas
and Water teams as they worked to restore

power. We also established warming centers and

distributed essentials throughout Memphis.

be there for one another and demonstrate our
commitment to stand alongside one another,
especially during challenging times like power
outages,” Watkins commented. “This is why I
commend TVA for demonstrating what it means
to be a community and to care for those who
needed their help.”

Gabe Franceschi, director of Government and
Community Relations, coordinated TVA’s storm
response, along with other west region leaders.
He called the team’s efforts “service in action.”

“The heart of TVA’s mission is service,”
Franceschi said. “I appreciate the team for their
hard work, long hours and dedication. Together,
we worked with local elected officials, non-profit
agencies and community leaders to identify where
the need was greatest and provided support to
those who were hardest hit.”

Delaney said the effects of such giving go a
long way.

“It was an excellent thing that happened,” he said.
“When people have a need, it’s great to say that
you’ll pray for them, but it’s even better when
you come to their aid. So, that moves it from
excellent to superb.”

“...I commend TVA for demonstrating what it means to be a
community and to care for those who needed their help.”

— Reverend Melvin Watkins, Pastor of Mount Vernon Church in Memphis, Tennessee

TENNESSEE VALLEY AUTHORITY ‘A big difference’
Children breathe easier thanks
to School Uplift

After their school received a grant from TVA’s
EnergyRight® School Uplift program, students in the
Pickett County K8 school in Byrdstown, Tennessee,
are breathing easier. Literally.

Pickett County K8 used School Uplift funds to
improve ventilation in classrooms and hallways
as well as install LED lighting throughout the
school. Prior to the improvements, none of the
school’s air filtration systems worked properly.

In partnership with Volunteer Energy Co-Op, TVA’s EnergyRight® School
Uplift program provided funds that enabled Pickett County K8 school to
improve ventilation and install LED lighting.

Eighth-grader Johnny Jenkins recalls how his allergies would flare up.

“It was awful, and I was tired all the time,” he said. “It’s hard to do your
work and pay attention.”

Jenkins said his sinus infections are practically gone, thanks to the new
HVAC and filtration systems. “I’ve noticed a big difference. I’ve been
able to breathe easier.”

Now in its third year, School Uplift is a free initiative that helps public
schools cut energy waste and engage students, faculty and staff in
behavioral changes that help save energy. The grants range from
$10,000 to $200,000, and TVA invests, on average, $3.2 million in the
program each year.

School Uplift is expected to help up to 100 schools each year improve
their facilities and reduce energy usage by as much as 10%, which
could save each school an average of $8,000 per year. The program is
expected to result in $5.8 million in lifetime energy cost savings for the
100 schools that participate each year.

“Helping schools save money on their power bills ensures resources are
allocated where it matters most — educating our children,” said Cindy
Herron, vice president of TVA Energy Services & Programs.

“Helping schools
save money on
their power bills
ensures resources
are allocated
where it matters
most — educating
our children.”

—Cindy Herron, TVA
vice president, Energy
& Services Program

The ABCs of School Uplift

Active energy
management training
Participating public schools receive
behavior-based strategic energy
management (SEM) training. Promote
engagement from faculty and students
with easy, actionable energy-saving tips
and energy-efficiency practices.

Building stronger
communities
Together, we can do even more. School
Uplift energizes students, families,
teachers, business owners and statewide
leaders, uniting them with a common
cause: improving local schools and the
communities they serve.

Competitive and
need-based grants
Participating public schools compete
among their annual cohort to become
eligible for grants for much-needed
energy upgrades to improve the
learning environment.

TVA ANNUAL REPORT FY 2022

About 106,000 students across the region enjoyed hands-on science, technology, engineering and math
activities through $1 million in STEM grants awarded in FY 2022.

Energizing classrooms
STEM education and grants ignite innovation
in the next generation

Molly Turner, a teacher at Auburn School (K-8)
in Auburn, Kentucky, has no trouble sparking
imagination in her students these days.

She is among 233 recipients of a science,
technology, engineering and math (STEM) grant.
She used it to purchase two 3D printers.

She said her young students are learning about
how exciting engineering can be while also
strengthening their problem-solving skills.

“My students have always been excited to come
to my STEM class, but now that excitement is
through the roof,” she said.

TVA partners with schools to fund STEM
education grants and robotics competitions.

In FY 2022, TVA partnered with BVI, a nonprofit
TVA retiree organization, to provide $1 million in
STEM grants. The STEM program, operated in
partnership with the Tennessee STEM Innovation
Network managed by Battelle, enabled 106,000
students to participate in STEM activities.

“TVA is committed to supporting STEM education
to help develop today’s students into tomorrow’s
engineers, scientists and IT professionals,” said
Jeannette Mills, TVA Executive Vice President and
Chief External Relations Officer. “It’s inspiring to
be able to contribute to the innovators of the
next generation.”

Grants have been awarded to schools in both
urban and rural areas to meet the diverse needs
of local communities.

Robotics programs also provide outlets for young
inventors to stretch their STEM smarts. Although
many robotics competitions were suspended
during the pandemic, they are expected to be in
full swing in the 2022-23 school year.

TVA supports equipment and registration costs
for robotics teams. More than 500 teams,
covering all seven states in our region, have
benefited from funds allocated in FY 2022. TVA
anticipates an even greater impact in FY 2023.

“STEM education is so important to developing
a well-qualified workforce and, ultimately, to
supporting economic development in the Valley,”
said Bert Robinson, director of Government and
Community Relations. “These are our future
scientists, engineers and technicians — and it’s a
privilege for TVA to play a part in helping them
get started.”

TENNESSEE VALLEY AUTHORITY

“TVA is committed to supporting STEM education
to help develop today’s students into tomorrow’s
engineers, scientists and IT professionals.”

— Jeannette Mills, Executive Vice President and Chief External Relations Officer

‘Becoming better stewards’
TVA works with partners to create a more sustainable future

When it comes to building a sustainable
future, no one can do it alone.

local power company partners with TVA on
possible solutions.

At TVA, we’re working with partners to
learn what sustainability means to them,
then collaborating to create cleaner, more
environmentally friendly ways of doing business
and living in this world. They bring incredible
solutions to the table.

Take, for example, BrightRidge, a local power
company operating in the Northeast Tennessee
region. BrightRidge is a leader in carbon
reduction and innovation, having developed two
solar farms, a community solar program and
a nascent electric vehicle charging network.
It also partnered with TVA and the Tennessee
Department of Environment & Conservation to
bring the first electric school bus in Tennessee to
the Washington County School System.

BrightRidge wanted to connect with its customers
to learn about their needs and sustainability
goals, and it worked with TVA to create a
sustainability workshop.

“TVA uses our feedback to develop programs and
resources that we can take back to our customers
and communities, with the collective goal of
becoming better stewards of the resources we
have,” he said.

TVA seeks feedback from our stakeholders
as well.

In FY 2022, we hired a third-party company
to conduct interviews with companies and
organizations in our seven-state region to learn
more about their sustainability priorities and ways
we can work together on new opportunities.

“Partnerships and engagement are vital to moving
forward,” said Rebecca Tolene, Vice President,
Environment and TVA’s Chief Sustainability
Officer. “We listen as stakeholders identify their
sustainability priorities, and we discuss ways TVA
can help create positive change. We are building
the future together.”

At the first workshop in September 2022,
BrightRidge customers — representatives
from hospitals, education institutions,
municipalities, commercial businesses
and others — gathered to discuss green
jobs, carbon reduction possibilities
and economic development. TVA staff
members presented information on
our programs, services and support
opportunities.

Jeff Dykes, Chief Operating Officer
of BrightRidge, said customers and
communities share information
about what they need from
BrightRidge, and then the

TVA works with partners across the Valley to enable electrified
transportation.

TVA ANNUAL REPORT FY 2022

‘The heartbeat of our communities’
Initiative shines a light on small businesses and propels growth

Between its vibrant programming and classic Art
Deco interior, the circa 1928 Ritz Theatre has a big
following in the small town of Sheffield, Alabama.

Today, the theater’s future shines brighter,
thanks to TVA’s EnergyRight® Community
Centered Growth initiative. Community Centered
Growth partners with local power companies in
economically distressed areas to provide energy
efficiency upgrades to community-based
small businesses.

The goal is twofold: invigorate small businesses
and empower sustainable growth in communities
that need it most.

Upgrades at the Ritz included new LED lighting,
a new HVAC unit, a large energy-efficient
fan in the workshop and a new cooler for the
concession area.

“The Ritz has been the heart of downtown
development initiatives in the past,” said Steve

Hargrove, general manager of Sheffield Utilities.
“We knew this type of financial support would free
up money the Ritz has invested so it could pursue
its long-term plans to expand its programs and
educational outreach.”

Eligible communities fall within National
Opportunity Zones, underserved areas identified
by census data and factors such as income and
population. Over the past two fiscal years,
80 businesses have received funding through
the initiative. Each year, four local power
companies work with community leaders in their
service territory to identify 10 small businesses
to participate.

The most common upgrades have been new
indoor lighting, security lighting, HVAC systems
and kitchen equipment. In addition to financial
benefits to the businesses, the initiative has
recorded environmental benefits as well —
including saving 1 gigawatt of energy and
reducing participants’ carbon emissions by
450,000 pounds to date.

Another example is in North Nashville, Tennessee,
where 24-year-old Anthony Williams manages
Ed’s Fish and Pizza House, a drive-thru opened
by his great-uncle in 1972.

TVA and Nashville Electric Service approached
him about participating in the Community
Centered Growth pilot, and his business received
a new HVAC system that has decreased its
energy bill by 20%.

“To see the impact of Community Centered
Growth around this neighborhood is just
phenomenal, because you’re seeing your
neighbors being uplifted,” said Antonio Carroll,
a representative with Nashville Electric Service.
“You’re able to help folks who are helping
themselves and help those who want to continue
to help the neighborhoods they serve.”

Carolyn Greer, senior program manager with TVA
Energy Services & Programs, agreed.

“Small businesses are the heartbeat of our
communities,” she said, “and it is gratifying to
provide support that will sustain them as well as
their communities.”

TENNESSEE VALLEY AUTHORITY

The Ritz Theatre’s future shines brighter,
26
thanks to TVA’s EnergyRight® Community
Centered Growth initiative.

The TVA Home Uplift team and local partners join together in Memphis.

‘I am so grateful’
Home Uplift improves residents’ health
and homes’ energy efficiency

When 80-year-old Jerry Perry’s HVAC system
went out in his Middle Tennessee home, the
retired hair stylist didn’t have the money to
replace it.

He sat in his home this past winter, wearing as
many as four coats and adding wood to his small
fireplace to keep warm.

Thanks to a partnership between TVA
EnergyRight® and Middle Tennessee Electric,
Perry was able to participate in the Home Uplift
program, which provides free energy upgrades in
qualifying residents’ homes.

“It was life-changing,” Perry said. “I am so
grateful. Words can’t express how I feel.”

Fifty-six local power companies currently are
involved with Home Uplift, which has upgraded
more than 3,700 homes in the Tennessee Valley
since the program’s inception in 2018. Each home,
on average, receives upgrades totaling $10,000.

Funding for Home Uplift is provided by TVA in
partnership with local power companies.
Third-party donors also participate. For
example, in Middle Tennessee, the First Baptist
Church in Murfreesboro donated $5,000, which
TVA matched.

In FY 2022, Home Uplift
achieved milestones such as its
500th upgrade in Memphis and
its 700th upgrade in Nashville.
As the program expands across
the Valley, TVA has looked for
ways to increase community
awareness, including offering
outreach materials and
applications in Spanish as well
as Kurdish and connecting
with local community-based
organizations to promote
the program.

For the average home,
upgrades such as a new HVAC
system, insulation and tighter
seals around windows and
doors reduce homeowners’
energy bills by as much as
$500 a year.

TVA EnergyRight®
has upgraded more
than 3,700 homes in
the Tennessee Valley
since 2018

Fifty-six local power
companies currently
are involved with
Home Uplift

Home Uplift has
served 125 veterans

The benefits of Home Uplift, however, stretch far
beyond monetary savings.

“Two of the top priorities for EnergyRight® are
health and safety,” said Bethany Kitch, Home
Uplift senior program manager for TVA Energy
Services & Programs. “A well-insulated home
reduces the risk of illness, which means more
days at work and fewer days at the doctor’s office.
That’s one of the many reasons Home Uplift fits
directly with our mission of making lives better for
the people in the Valley.”

TVA ANNUAL REPORT FY 2022

‘The impact will be
multi-generational’
Reliable, low-cost energy brings
high-paying jobs to the region

When Sinova Global, a Canadian company, asked
Dave Tuten to help evaluate where the company
should build its new silicon metal plant, the

experienced manufacturing executive had one answer:
somewhere in TVA’s service territory.

“TVA was a major factor in Sinova Global’s deciding to
build in Lake County, Tennessee,” said Tuten, who today is
the company’s Chief Operating Officer. “We knew that TVA

would provide access to responsible, reliable power from
sustainable sources, that it is dedicated and committed to
economic development, and that the process for getting work
agreements and partnering would be easy. In short, it was a
great fit with Sinova Global’s way of doing business.”

Sinova Global is on track to open its silicon metal plant near
Tiptonville in early 2024, bringing 140 high-paying jobs to the
area — one of the most economically distressed in the region. The
company will be TVA’s newest and one of its largest directly served
customers and is providing a vital resource while operating in a
sustainable manner.

Sinova Global announced its decision in December 2021. With plans to
use more than 100 megawatts of TVA energy, the 149-acre site will refine
ultra-high-quality quartz into silicon metal for products such as solar cells,
next-generation batteries and parts for electric vehicles.

“The impact this will have in Lake County will be multi-generational,” Tuten
said. “We are building a distinctive company in Tennessee, and a range of

stakeholders — including our communities and partners across the region and
beyond — will benefit from these efforts.”

“TVA was a major factor in Sinova Global’s
deciding to build in Lake County, Tennessee. We
knew that TVA would provide access to responsible,
reliable power from sustainable sources.”

— Dave Tuten, Sinova Global Chief Operating Officer

TENNESSEE VALLEY AUTHORITY The Tennessee RiverLine Partnership is working to create a network of paddling, hiking and biking experiences along the Tennessee River.

Expanding ecotourism
Growing activity on the Tennessee RiverLine leads to economic growth opportunities

The pink and orange hues of the sunset reflect
off waves as an inflatable kayak glides across the
Tennessee River.

communities along the Tennessee River and
encourage sustainable economic growth in its
watershed.

Shannon Carter, a schoolteacher from Rossville,
Georgia, shares this 10-foot-long kayak with her
daughter as they float along, immersed in peace.

The waterways of the Tennessee Valley offer
beauty, biodiversity and recreational opportunities
for tourists and locals alike, while also providing a
boost to the local economy.

Carter is among 285,000 paddlers who ply the
Tennessee River annually, a number TVA and
Tennessee RiverLine would like to see increase.

TVA is proud to be a founding member of the
Tennessee RiverLine Partnership, a regional
initiative working to create a network of paddling,
hiking and biking experiences that will stretch
along the Tennessee River from Knoxville,
Tennessee, through parts of Alabama and
Mississippi, to Paducah, Kentucky.

The continuous water trail system will connect

In a study published in June 2022 by the Howard
H. Baker Jr. Center for Public Policy, researchers
from the University of Tennessee and the
University of Alabama found that the Tennessee
RiverLine could attract as many as 807,936
new paddlers.

The study found that this growth could increase
spending in the region up to $103.8 million
annually and increase total employment by 1,959.

Twenty communities are now enrolled in the
RiverTown program, which invites communities
near the river to become an active participant and
featured destination in the RiverLine system.

“The RiverLine project is expected to positively
affect the health of Valley residents as well as the
environmental health of the river itself, making
life better for the people of the Tennessee Valley,”
said Allen Clare, TVA’s vice president of River and
Resources Stewardship.

TVA ANNUAL REPORT FY 2022

Regional Relations
TVA’s regional model, which we implemented in FY 2021, enhances our
ability to cultivate strong local relationships and engage more deeply
with specific community needs and issues. The critical priorities of each
community vary, and our shift to this regional model strengthens our
partnerships with local organizations and helps us better align
our priorities and resources to meet communities’ needs.

TENNESSEE VALLEY AUTHORITY Dan Pratt
TVA Senior Vice President,
Regional Relations

Mark Yates
TVA Regional Vice
President, West Region

Justin Maierhofer
TVA Regional Vice
President, North Region

Carol Eimers
TVA Regional Vice
President, East Region

Jared Mitchem
TVA Regional Vice
President, South Region

Delivering on our promise

• TVA estimates it will have given $1.4 billion in credits back to our customers by the end of FY 2023 to invest in the

communities we serve.

• TVA and LPCs created the Community Care Fund program to help local charitable organizations provide
assistance to those most impacted by the pandemic. Since April 2020, the Community Care Fund has
contributed almost $18 million, with TVA and LPCs each contributing nearly $9 million. TVA has committed to
adding an additional $3 million to the available Community Care Funds in FY 2023.

• TVA donated more than $9 million in community contributions and disaster relief in FY 2022 to help strengthen

partnerships across the Valley.

TVA ANNUAL REPORT FY 2022

OPERATIONAL
EXCELLENCE

Building the Future...
with Excellence

Our mission of service requires operational excellence. The region
depends on that excellence for its safety, for its electricity on the
hottest and coldest of days, and for the commitment to delivering
reliable, resilient energy — today and tomorrow.

Delivering on a promise
Community celebrates modern engineering feat with Boone Dam re-opening

After discovering water and sediment seeping
below Boone Dam in 2014, TVA committed to
doing whatever it took to address the problem.

The $326 million
project was a
major geotechnical
engineering feat
that included 2
million hours of
dam remediation.

In May 2022, after seven years of intensive
remediation work, TVA completed the extensive
repair at the Kingsport,
Tennessee, site — thus
returning recreational
Boone Lake back to the
public and resuming
generation of carbon-
free energy at the Boone
Dam hydropower facility.

“This is the largest dam
repair in TVA history,”
Don Moul, TVA Executive
Vice President and
Chief Operating Officer,
said. “We made a
commitment to complete
this effort safely within
seven years and to do it right the first time with a
high-quality repair. We delivered on our promise
to the Tri-Cities region.”

The $326 million project was a major geotechnical
engineering feat that included 2 million hours of
dam remediation.

With partners, TVA constructed a seepage
barrier in several phases, including two years of
around-the-clock construction of a non-erodible
underground cutoff wall. After that, workers
restored the crest of the dam to its previous
elevation and constructed a floodwall.

In April 2022, for the second year in a row, TVA
received the Excellence in Construction Project
Award from the United States Society on Dams
for the team’s efforts.

Moul said safety for the public and our employees
was our No. 1 priority throughout the project.
Teamwork and an eye on operational excellence
were key to everything we did.

Several years ago, when inspections determined
the extent of the problem, TVA took interim safety
measures such as lowering the lake elevation.

Throughout the project, TVA engineers
collaborated with nationally recognized experts
in dam safety and owners of large dams, such as
the U.S. Army Corps of Engineers.

“TVA executed a highly technical project on a
rapid schedule, all while maintaining the safety of
the public and its workers and engaging the local
community,” said Chris Saucier, technical director

TENNESSEE VALLEY AUTHORITY “This is the largest dam repair in TVA history. We made

a commitment to complete this effort safely within
seven years and to do it right the first time...We
delivered on our promise to the Tri-Cities region.”

—Don Moul, TVA Executive Vice President and Chief Operating Officer

TVA operates one of the largest, most reliable, and
cleanest energy systems in the nation. More than half
our energy supply comes from carbon-free sources.

Third-largest nuclear fleet in the United States,
providing approximately 40% of TVA’s energy

One of the largest high-voltage
transmission systems in North America

TVA received the Excellence in Construction Project
Award from the United States Society on Dams for the
team’s efforts to repair Boone Dam.

TVA ANNUAL REPORT FY 2022TVA board member Brian Noland, TVA senior leaders and partners celebrate in May 2022 when recreational
Boone Lake re-opened for public use following completion of TVA’s Boone Dam restoration project.

crowd that gathered on a sunny day just prior
to Memorial Day weekend, which marked the
celebratory occasion of Boone Dam’s reopening.

“Environmental stewardship by providing a
beautiful recreational area for families to picnic,
swim and relax; economic development with
a lake that helps communities in the Tri-Cities
region prosper; and electricity that is clean,
reliable and generated right here at the Boone
Dam hydropower facility.”

“The Boone Dam project exemplifies
all three aspects of TVA’s mission of
service — environmental stewardship,
economic development and energy.”

—Jeff Lyash, TVA President and Chief Executive Officer

of the project and a principal project manager in
TVA Dam Safety.

Community outreach was an important aspect
of the project. TVA worked closely with the
Boone Lake Association and Boone Dam
Repair Coalition on efforts such as new
ramp extensions, a new swim beach and
other activities to enable local residents
to enjoy the lake while work continued
on the dam. TVA experts also partnered
with the Tennessee Wildlife Resources
Association to plant grasses and shrubs
and stock the lake with fish.

“The Boone Dam project exemplifies
all three aspects of TVA’s mission
of service — environmental
stewardship, economic
development and energy,” Jeff
Lyash, TVA President and Chief
Executive Officer, said to a

TENNESSEE VALLEY AUTHORITY

Jeff Lyash, TVA President and Chief Executive Officer, speaks at the
Boone Dam celebration event.

Delivering reliable energy 24/7
TVA meets record energy demands through
partnerships, operational excellence

This summer was a hot one. For TVA, that meant high energy demand.

During a two-week period in June, TVA had six days with energy demand
above 30,000 megawatts, including the highest recorded June power

demand of 31,161 megawatts. In July, we experienced six days above 30,000
megawatts as well. To put that in perspective, one megawatt is enough to
power 585 homes.

Meeting those demands requires operational excellence — in planning,
in preparation and in execution. TVA also partners with our local power
companies, their end-use customers and our directly served customers.

“Keeping upwards of 30,000 megawatts flowing day after day is not an easy
task — even for a system as large and diverse as TVA’s,” said Jacinda
Woodward, Senior Vice President of Power Operations at TVA. “Add to that
our commitment to keep power rates low, and it is quite a balancing act.”

TVA maintains one of the largest, most diverse generation portfolios in
the nation. This diversity provides tremendous flexibility. Since 2000,
the TVA system has maintained 99.999% reliability.

One of the ways TVA met the demand was through Demand
Response programs such as our EnergyRight® Interruptible Power
program, which offers incentives for participating customers that
agree to allow TVA to request a suspension of a portion of their
energy load, with up to 30 minutes notice, during times when
the power system is constrained. Participants receive demand
credits in exchange for load curtailment up to 12 hours.

Magotteaux Inc. in Pulaski, Tennessee, receives power
from our local power company partner, PES Energize,
also based in Pulaski. A company representative said
Magotteaux enrolled in the Summer Interruptible program
as an opportunity to receive monthly demand credits
on its power bill in exchange for curtailment, noting
that the program also provided the company some
opportunity to perform preventive maintenance on its
critical pieces of equipment during curtailment.

“Magotteaux has around a 50-year partnership
with PES Energize and TVA,” said Corey Foreman,
senior project engineer at Magotteaux. “The
reliable power from PES and TVA and the
incentive programs offered through their
partnership are what helps keep
Magotteaux competitive.”

38,111 megawatts
Summer Net Capability

99.999% reliability

Industry-leading performance consistently
delivered to customers since 2000

$17.2 billion invested

in a cleaner and more diverse energy generation
mix since 2013

10,000 megawatts

of solar capacity targeted by 2035

TVA ANNUAL REPORT FY 2022

Tamieka G. Russell, account manager at PES
Energize, said the biggest benefit of the Summer
Interruptible program is savings.

“Inflation is at a 40-year high and the workforce is
at its lowest, so industries are looking for ways to
save and meet corporate goals,” she said. “The
Summer IP created an avenue for reducing cost.”

“Our partnership with TVA is nothing short of
amazing,” Russell added. “Programs and services
are created with the end-use customer in mind.
Without TVA, we could not provide exceptional
services to customers like Magotteaux. We
couldn’t be more appreciative of the partnership.”

Detailed planning and our strategically diverse
power system contributed tremendously to

our success in meeting summer demand
peaks. Using our hydroelectric power and our
nuclear assets allowed us to meet the demand
while keeping costs low, and using our simple
combustion turbine gas units—which normally
serve only peaking power—around the clock
helped keep reliability high.

And then, there are our dedicated employees,
such as Hunter Cason, a coal-hauling foreman at
Gallatin Fossil Plant outside Nashville.

“During the triple-digit days, we knew our work
was helping provide reliable power for our friends,
families, grandmothers and literally the 10 million
people of the Valley who rely on us,” Cason said.
“We are here for them because we believe in the
mission of TVA to make life better for people.”

Nuclear excellence delivers value
At TVA, numbers help tell our nuclear operations story

We operate the nation’s third-largest nuclear fleet,
which meets approximately 40% of the energy
needs of TVA’s service territory.

TVA operates three nuclear plants, and as an
example of the sheer volume of their output,
Unit 3 at our Browns Ferry Nuclear Plant near
Athens, Alabama, ran for 690 consecutive days
and produced more than
20 billion kilowatt-hours
of electricity prior to its
scheduled refueling and
maintenance outage earlier
this year. To put this into
perspective, that’s enough
to power the average home
for about 1.8 million years.

TVA’s nuclear performance
is critical to life in the
Tennessee Valley, because
it helps ensure our power is
reliable and clean, and our
energy costs stay among
the lowest in the nation.

“Every step we take to
further the performance
and reliability of our nuclear
fleet helps deliver greater
value for everyone we serve

In June 2022, TVA
received the Nuclear
Energy Institute Top
Innovative Practice
Award for our
commitment to safety,
cost-savings and
industry leadership.
The award highlighted
an improvement TVA
engineers made to
support steam
generator inspections.

TENNESSEE VALLEY AUTHORITY

across the Valley,” said Tim Rausch, Executive
Vice President and TVA Chief Nuclear Officer.
“Families, industries, businesses and entire
communities enjoy the direct benefits of low-
cost, carbon-free and extremely reliable
nuclear energy.”

In 2022, TVA achieved Industry Top Quartile
Fleet Performance, a rise from the fourth quartile
in 2019.

Rausch said we couldn’t achieve operational
excellence without our talented nuclear staff, our
commitment to continuous improvement and our
significant equipment upgrades.

Those upgrades included substantial investments
in all three of our nuclear facilities, including a
Spring 2022 upgrade of Browns Ferry Nuclear
Unit 3, with four high-pressure feedwater
heaters that are larger and more robust, and
a Summer 2022 replacement of four steam
generators at Watts Bar Nuclear Unit 2, in Spring
City, Tennessee.

These upgrades increased reliability and resiliency
to TVA’s system.

With an eye on continuous improvement, TVA
strives to have the best nuclear fleet in the
nation by the end of 2025.

“Every step we take to further the performance and
reliability of our nuclear fleet helps deliver greater
value for everyone we serve across the Valley.”

—Tim Rausch, TVA Executive Vice President and Chief Nuclear Officer

Browns Ferry is TVA’s first and largest nuclear power plant, producing about 20% of TVA’s total power supply in FY 2022.

TVA ANNUAL REPORT FY 2022

Environmental Stewardship

‘We live in a special place’
Biodiversity Policy helps protect our region for
generations to come

Ask Melanie Farrell about TVA’s new Biodiversity Policy, and
she mentions two things in rapid succession: first, the policy’s
importance to the health of the Tennessee Valley, and second,
her family.

“I have two small children, and our family spends a lot of time
outside hiking, camping, boating and enjoying this beautiful area,”
said Farrell, vice president of External Strategy and Regulatory
Oversight at TVA. “The policy helps enrich this region today and
protects the area for generations to come.”

“TVA has always protected biodiversity, but we developed
this formal policy to help strategically integrate biodiversity
conservation into all aspects and all levels of our operations,”
Farrell said.

The policy, which was approved by TVA’s Board of Directors in
November 2021, states that TVA will protect biodiversity through
our stewardship of public lands, management of the Tennessee
River system, local and regional partnerships, and integration of
species and habitat conservation in project planning.

“Our region is a biodiversity hotspot with
so many unique plant and animal species.
We live in a special place, and this policy
helps us protect it.”

—Adam Dattilo, TVA biodiversity senior program manager

In FY 2022, TVA carried out 120 biodiversity projects and
initiatives. The projects fell into three general categories: on-the-
ground conservation; monitoring and research; and education
and outreach.

“We are taking a proactive approach,” said Adam Dattilo,
biodiversity senior program manager at TVA. “Given the wide
span of our operations across the region, this policy is helping
unite how we talk about conservation work as an enterprise. Our
region is a biodiversity hotspot with so many unique plant and
animal species. We live in a special place, and this policy helps
us protect it.”

TENNESSEE VALLEY AUTHORITY

TVA botanists and biologists are working to protect
and expand a colony of rare frosted elfin butterflies.

In the dark of
the night
Botanists study and work to protect
rare butterfly and its host plant

At first blush, it sounds like a scene from a children’s
movie: a group of people traipsing into the forest at
night, using LED black lights to search for elusive
butterflies and magical plants.

But when that scene occurred in Summer 2022 in
North Carolina’s Nantahala National Forest, it was —
in fact — serious work.

A few years after Tennessee naturalist Julius
Basham and his father first discovered a colony of
rare frosted elfin butterflies and their unique local
habitat, yellow wild indigo plants, Basham led
botanists from the Tennessee Valley Authority and
the U.S. Forest Service to the secluded location
beneath a TVA transmission line.

Based on their findings, the partners are working to
protect and expand the colony.

During their nighttime trek, the botanists used LED
blacklights to illuminate the butterflies’ larvae. They
found 115 caterpillars and 81 host plants across
7 acres of TVA right of way.

For the frosted elfin, yellow wild indigo is the only
suitable habitat for the insect to lay eggs and attach
a cocoon for hatching larvae. This unique process
occurs during a two-week window in the summer
when the plant blooms.

“This would have never happened without Julius,”
said Adam Dattilo, TVA biodiversity senior
program manager and one of the botanists that
conducted the survey. “He really put in motion a true
conservation effort to save both the frosted elfin and
its host plant.”

TVA partners with the U.S. Fish and Wildlife Service on conservation efforts across the Tennessee Valley. Our work helped protect the snail darter,
which recently was delisted after being protected under the Endangered Species Act since 1975. Photos courtesy of U.S. Fish and Wildlife Service.

Endangered no longer
Tiny snail darter makes big comeback thanks to TVA and partners

For a fish the size of your pinky, the snail darter sure
has made a big splash.

adequate reservoir flows — all of which created the
conditions necessary for snail darters to migrate
and thrive in the Tennessee River watershed.

After being protected under the Endangered Species
Act since 1975, the tiny fish is now delisted, thanks to
conservation work by TVA and our partners.

“It is partners like TVA, who are committed to
working together to change the trajectory of species
like the snail darter, that give hope to ongoing
conservation efforts across the country and promises
that our natural resources will be enjoyed by future
generations,” said Daniel Elbert, U.S. Fish and Wildlife
Service field supervisor for the Ecological Services
Program in Tennessee.

The snail darter’s local story began in the 1970s as
TVA closed in on finishing construction of Tellico
Dam in East Tennessee. Biologists discovered the
snail darter in the waters above the dam. Under the
Endangered Species Act, TVA temporarily halted
construction of the dam.

To protect the fish from extinction, TVA, state and
federal biologists relocated snail darters to various
free-flowing rivers in the area prior to the Tellico Dam
completion in November 1979.

Over the years, we implemented new technologies
to improve water quality and habitat and maintain

Today, the snail darter is one of only 55 species
to have been delisted due to recovery. As part
of delisting protocol, TVA will continue to work
with U.S. Fish and Wildlife Service officials to
monitor snail darter populations for the next
five years.

“We’ve got fish that live nowhere else in
the world but right here,” said Shannon
O’Quinn, TVA water resources
specialist. “Their habitat is improving,
making it suitable to reestablish
fish like the snail darter so they
can flourish. We work tirelessly to
make sure it stays that way.”

Dennis Baxter received the 2022 Tennessee American
Fisheries Society Lifetime Achievement Award after more
than 35 years working as a TVA fisheries biologist.

TVA ANNUAL REPORT FY 2022

IGNITING
INNOVATION

Building the Future...
Through Innovation

We recognize TVA’s unique position and responsibility to lead
in developing solutions that will deliver a carbon-free energy
future. We cannot meet the energy needs of tomorrow by making
small changes to today’s power system. It will require innovation,
collaboration and pushing TVA, the industry and the nation to
go further, faster to make our vision for tomorrow a reality.

Powering an EV transformation
TVA and partners drive electric vehicles forward for a better tomorrow

In early 2022, one of TVA’s local power company
partners put the city of Fort Payne, Alabama, on
the map by installing two electric vehicle (EV)
fast chargers — the first in our regional Fast
Charge Network.

At TVA, we’re bringing together local power
companies, state agencies and others to pave
the way for well over 200,000 electric vehicles on
Tennessee Valley roads by 2028. We’re taking a
four-pronged approach to reducing and removing
major barriers to electric transportation, including:

• Building a public charging infrastructure
• Attracting automakers and suppliers to

the region

• Adopting policies such as electric-vehicle

rates

• Heightening consumer awareness

This is a responsible choice for our environment,
noted Ray Knotts, senior manager of Energy
Services and Programs at TVA.

“We know that gas-powered transportation is the
No. 1 source of pollution in the Valley,” Knotts
said. “Buying an EV is a true win-win-win, as
drivers, local power companies and communities
all benefit.”

Studies in 2019 showed a major barrier to owning
an EV was range anxiety.

“So we started working with local dignitaries,
state agencies and local power companies to see
how we could make a difference,” said Drew Frye,
TVA manager of Commercial Energy Solutions.
“Installing electric chargers emerged as the
single most influential approach.”

Launched in FY 2022, TVA’s Fast Charge Network
aims to ensure drivers in the Tennessee Valley will
never be more than 25 miles from a Fast Charge
Network charging location.

Once completed, the Fast Charge Network
will include about 80 locations and 200 fast
chargers, with multiple station owners and
site hosts on interstates and major
highways across TVA’s seven-state
service area.

To accelerate the Fast Charge Network,
TVA is working alongside state agencies
such as the Alabama Department of
Economic and Community Affairs and
the Tennessee Department of Environment &
Conservation (TDEC) to fund 80% of fast-charger
installation costs.

TENNESSEE VALLEY AUTHORITY

“We’re at a pivotal point in our history. This age of electric vehicles may be as
transformative to this region as TVA’s electrification of the Valley was back
in the 1930s. Our public power model and our partnerships with local power
companies and other agencies enable us to help power this transformation —
working and investing today for the benefit of all our residents tomorrow.”

—Jeff Lyash, TVA President and Chief Executive Officer

President and CEO Jeff Lyash stands by the first charging location in Martin, Tennessee, as part of Fast Charge TN,
a partnership between TVA, TDEC and Seven States Power Corp.

TVA ANNUAL REPORT FY 2022

Andrea Harrington, general manager of Weakley County Municipal Electric System, dedicates Weakley County’s Fast
Charge Network electric vehicle charging site in Martin, Tennessee.

Currently, 116 of TVA’s 153 local power company
partners are interested in the Fast Charge
Network program. At the end of FY 2022,
32 charging sites were under contract with
24 different LPCs, and four were operational
and open for EV drivers (Fort Payne, Alabama;
Beaver Dam, Kentucky; Martin, Tennessee; and
Cullman, Alabama).

enjoy the environmental and economic benefits of
electric transportation,” said Mike Shirey, general
manager of Fort Payne Improvement Authority.
“The support from TVA and grant funding
from Alabama Department of Economic and
Community Affairs made it possible to
add charging stations without affecting our
customers’ bills.”

“We moved quickly to participate in this program
because we want to make it easy for people to
choose electric vehicles so our community can

In addition to building the Fast Charge Network,
TVA is working with partners to attract
automakers and suppliers to the region.

“The support from TVA and grant

funding from Alabama Department
of Economic and Community
Affairs made it possible to
add charging stations without
affecting our customers’ bills.”

—Mike Shirey, Fort Payne Improvement Authority

TENNESSEE VALLEY AUTHORITY

Today, five auto manufacturers are focused on
EV production in the Tennessee Valley: Ford
(future electric pickup truck), GM (Cadillac Lyriq),
Volkswagen (ID4), Nissan (Leaf) and a Mazda-
Toyota joint venture.

In 2022, two new EV suppliers joined a growing
list of support companies as well.

Envision AESC, a world-leading Japanese electric
vehicle battery technology company, announced a
$2 billion investment to build a state-of-the-
art facility where 2,000 skilled employees will
produce battery cells and modules to power
next-generation EVs. The “gigafactory” will be

Another company, Tritium, a
global leader in direct current fast
chargers for EVs, announced plans
to build a manufacturing facility in
Lebanon, Tennessee, which will bring
more than 500 jobs to the region.

In total, the automakers and suppliers are
responsible for approximately $13.8 billion
in new capital investment in the Valley and
more than 10,500 new jobs over the past
10 years.

At TVA, our internal fleet electrification
program is among the most aggressive in the
electric utility industry. By 2030, we plan to
transition 100% of our light-duty vehicles and
50% of our medium-duty vehicles to electric.

Today, gas and diesel vehicles are the biggest
sources of carbon emissions. With our EV
initiatives, TVA and our partners aren’t just paving
the way for more EVs on Valley roads; we are

In the next five years, about 80 new
fast charging stations are expected
to be added along interstates and
major highways of TVA’s seven-state
service area.

TVA has a goal of seeing more than
200,000 electric vehicles on Valley
roads by 2028.

laying the foundation for a clean-energy economy
for this region and the nation.

“We’re at a pivotal point in our history. This age of
electric vehicles may be as transformative to this
region as TVA’s electrification of the Valley was
back in the 1930s,” said Jeff Lyash, TVA President
and Chief Executive Officer. “Our public power
model and our partnerships with local power
companies and other agencies enable us to
help power this transformation — working and
investing today for the benefit of all our residents
tomorrow.”

TVA and its partners are working to pave the way for more than 200,000 electric vehicles on Valley roads by 2028.

TVA ANNUAL REPORT FY 2022

Artist rendering shows a Small Modular Reactor at the Clinch River Nuclear Site located near Oak Ridge, Tennessee.
FOR ILLUSTRATIVE PURPOSES ONLY

‘A nuclear innovation hub’
TVA leads the way toward a clean energy future

Innovation is a priority and focus area for TVA as
we work aggressively to build the Energy System
of the Future.

Nowhere is that more apparent than in our pursuit
of advanced nuclear technology — a significant
component of our decarbonization efforts.

This year was a busy one. In February, the TVA
Board of Directors announced the launch of our
New Nuclear Program and approved up to $200
million in funding to explore advanced reactor
technology options. The program will provide a
disciplined, systematic roadmap for exploration
of advanced nuclear technology.

“Advanced nuclear technologies will play a critical
role in our nation’s drive toward a clean energy
future,” Jeff Lyash, TVA President and Chief
Executive Officer, said. “We know it will take
innovation and creativity as well as discipline and
hard work, and we believe that together, with
our partners, we can make this region a nuclear
innovation hub for the entire country.”

The New Nuclear Program is looking at a variety
of advanced nuclear technology options that
might meet both near- and long-term
generation needs.

The options include small modular reactors
(SMRs), which have a smaller footprint than a
regular nuclear plant, making them more flexible.

They offer improved safety and security as well
as reduced costs to operate — all while offering
100% carbon-free power that is reliable and
resilient.

TVA has the nation’s first early site permit for
SMRs from the Nuclear Regulatory Commission
(NRC) for the Clinch River Nuclear Site, and
we are preparing an NRC construction permit
application for a light-water SMR at the site,
subject to required environmental reviews and
Board approval.

In June 2022, TVA signed a two-party agreement
with GE Hitachi as an early step to support
planning and preliminary licensing for a potential
deployment of a BWRX-300 SMR at the Clinch
River site. This agreement will help inform a future
decision about deployment and enable us to
refine cost and schedule estimates.

As a public power company committed to
pursuing advanced nuclear solutions, we have
formalized key partnerships this past year,
including with:

• Oak Ridge National Laboratory to explore
light-water SMRs and fourth-generation
advanced nuclear reactors, building on
our 2020 advanced reactor technology
Memorandum of Understanding.
• Ontario Power Generation (OPG) to

collaborate as they explore the deployment
of SMRs at OPG’s Darlington Nuclear
Generating Station and we do the same at
our Clinch River site.

• A consortium assembled by Kairos Power
with other North American utilities to help
further develop technology for a Kairos Power
advanced reactor.

TENNESSEE VALLEY AUTHORITY We also have been working with
the University of Tennessee since
April 2020 to explore new nuclear
technologies with the support of
UT’s advanced modeling and
simulation tools.

“By the nature of our mission, TVA fills a unique
role as one of the nation’s leading electric utilities
but also a living laboratory,” Lyash said. “We were
established not only to serve this region, but also
the nation — by developing innovative solutions to
solve complex problems.”

‘The holy grail’ of inspector gadgets
Robots and drones could ensure reliability and resilience of the grid of tomorrow

One TVA team is working closely with MSU on
large drones designed to fly beyond the operator’s
view. The aircraft would have increased range,
endurance and payload capability compared to
smaller versions.

“In the UAS industry, aircraft that can fly beyond
the line of sight are the holy grail,” said Walt
Hodges, manager of TVA UAS Operations and
Training, noting that current regulations are a
limiting factor. “Everyone wants to get there. The
value proposition is tremendous.”

As one of the largest high-voltage transmission
systems in North America, TVA’s grid is long
enough to span the United States six times over.

Someday soon, robots and drones might help
us inspect and identify concerns on that 16,400-
mile grid.

“When people think of the power system, they
probably don’t think of robots and drones, but
these innovative technologies are becoming key
tools for ensuring reliability and resiliency in the
future,” said Chris Burge, senior program manager
of TVA Grid Research & Development.

Together with some of the most experienced
engineers in the country, TVA’s teams are
working with Tennessee Tech University on the
development of robots specifically for use in
substations for automated inspections; with other
utilities and EPRI, a non-profit energy research
and development organization, on the ability to
adapt commercially available robots to perform
inspections in substations; and with Mississippi
State University (MSU) on unmanned aircraft
systems (UAS), commonly known as drones.

Robots and drones will never replace human
expertise. Instead, they are being designed
to be a tool that helps field personnel
perform their tasks more safely, efficiently
and effectively.

Today, our grid is inspected using a
combination of ground and airborne
methods. Aerial inspections are
performed by helicopters with
sensors and, more recently, with
small drones operated within visual
line of sight of trained employees.

TVA uses small drones to gather information about our assets across the region.

TVA ANNUAL REPORT FY 2022‘A cleaner future’
TVA leads the way toward a carbon-free economy

Further and faster.

That’s how TVA plans to move forward in reducing
carbon emissions.

To that end, with partners across the Tennessee
Valley, we have taken bold steps toward a clean-
energy future that stimulates economic growth
and positions the region as a national leader in
decarbonization technologies.

For example, in July 2022, TVA issued a request
for proposal for up to 5,000 megawatts of
carbon-free energy that must be operational
before 2029, which is one of the largest clean-
energy procurement requests in the nation. TVA
anticipates making selections for the carbon-free
RFP in the second half of 2023.

“TVA is uniquely positioned to lead in reducing
carbon emissions for the region and the nation,”
Jeff Lyash, TVA President and Chief Executive
Officer, said. “This announcement is a clear signal
to our industry, our partners and our nation that
we need to move further and faster, together, to

make a cleaner future a reality.”

online, reducing our reliance on coal, expanding
our storage portfolio by adding lithium-ion
batteries, investing in our existing nuclear
and hydroelectric fleets, and advancing our
transmission system, including bringing our
state-of-the-art Primary System Operations
Center online.

“Deploying increasing amounts of new clean-
energy generation over the next decade is a
critical component of the transition to a clean-
energy future,” said Tom Kuhn, president of
Edison Electric Institute. “We applaud TVA for its
continued leadership in transforming the nation’s
energy mix and for its forward-looking efforts to
meet the evolving needs and expectations of the
many communities that it serves.”

Clean energy is fueling growth across TVA’s
seven-state service territory. Our clean-energy
programs are one element that helped drive
our record-setting economic development
performance in FY 2022 — and are expected
to help create or retain approximately 66,500
jobs and more than $10.2 billion in projected
capital investments.

TVA issued a request for
proposal for up to 5,000
megawatts of carbon-
free energy that must
be operational before
2029, which is one of
the largest clean-energy
procurement requests
in the nation.

As laid out in our “Strategic Intent
and Guiding Principles” document,
TVA is taking actions now to try
to reduce carbon emissions by
70% through 2030, with a path
to reduce carbon emissions by
approximately 80% by 2035 and
aspirations to achieve net-zero
by 2050.

Our plans to achieve this include
bringing additional solar capacity

And, since 2018, our award-winning Green Invest
program has helped generate more than $3 billion
in investment across the region.

“There is no single answer to achieving our
nation’s decarbonization and energy security
goals,” Lyash said. “TVA is accelerating
change across the industry to expand carbon-
free technologies while integrating emerging
technologies to meet customer-driven demand.
We are building a future that leaves no one behind
in the new clean-energy economy.”

“We applaud TVA for its continued leadership in transforming the nation’s
energy mix and for its forward-looking efforts to meet the evolving
needs and expectations of the many communities that it serves.”

— Tom Kuhn, President, Edison Electric Institute

TENNESSEE VALLEY AUTHORITY

The Energy Information
Administration ranks
Tennessee as the
largest contributor to
the reduction in carbon
intensity in the U.S. from
2016 to 2022.

TVA expects to add
10,000 megawatts of
solar capacity by 2035.

TVA joined a coalition of
utilities and others who
are working to create
the first hydrogen hub in
the Southeast.

OUR ASPIRATION

Net-zero by 2050

OUR PATH

~80% by 2035

OUR PLAN

70% by 2030

Carbon Reduction
Leadership
57% accomplished
through CY 2021

TVA plans to bring on additional solar as we work
toward our aspiration to achieve net-zero by 2050.

TVA ANNUAL REPORT FY 2022

Connected Communities

‘It is transformative’
Connected Communities initiative provides equitable access to technology

Solutions are at the heart of innovation, whether
we’re developing advanced technologies that
are new to the world or bridging gaps in existing
services to create opportunities.

At TVA, our new Connected Communities initiative
is offering solutions that make a difference.
We are partnering with communities to provide

TVA grant funding starting in 2022 and extending
through 2024.

The projects will leverage technology to
provide solutions such as broadband access,
environmental risk monitoring, digital literacy
training and next-generation career options.

By expanding access
to technology, TVA is
investing in job creation,
preparing for a modern
grid system to further
support clean energy
resources, and opening
more opportunities
to connect with the
community.

equitable access to
technology, development
of technical job skills,
and energy and
environmental justice.

After a call for pilot
projects in Summer 2022,
a team that included
TVA, local governments,
power companies and
community-based
organizations chose
nine projects to share
more than $3 million in

“This is one of the most exciting grants I’ve ever
been part of,” said Deb Socia, President and
Chief Executive Officer of The Enterprise Center,
a partner in the Connected Communities Orchard
Knob Collaborative. “It is exciting to see how
many partners are working together to bring
about change, and it’s made possible by the
grant from TVA.”

About 36% of households in the Orchard Knob
neighborhood in Chattanooga, Tennessee, do not
have internet connectivity.

A collaborative team — including EPB (Electric
Power Board) of Chattanooga, Parkridge Medical

TVA’s Connected Communities initiative is offering solutions that make a difference for people in our communities.
TENNESSEE VALLEY AUTHORITY

TVA provided funding for Base Camp Coding Academy’s Graduate Institute, which kicked off in September 2022.

Center, Habitat for Humanity and others — will
work together to provide public Wi-Fi, digital
resources, training on how to use the resources,
home weatherization and telehealth services.

Kagan Coughlin, co-founder of Base Camp
Coding Academy, is equally excited about what
the TVA grant is making possible.

Located in the small town of Water Valley,
Mississippi, the academy received funding to
expand an existing software development training
program for recent high school graduates. The
new Graduate Institute will support Veterans and
adults with prior work experience who want a
new career.

“These graduates will leave the program with no
debt, and they will enter the tech workforce as
software developers after almost a year of intense
training,” Coughlin said. “It is transformative
for the student, their families and the business
community that needs their skills.”

The Connected Communities initiative directly
aligns with TVA’s Energy System of the Future and
aspiration of net-zero emissions by 2050.

By expanding access to technology, TVA
is investing in job creation, preparing for
a modern grid system to further support
clean energy resources, and opening
more opportunities to connect with
the community.

“Access to technology and other
critical services is the foundation
for success in the modern-day
world,” Joe Hoagland, vice
president of TVA Innovation
& Research, said. “This
initiative will help close the
equity gap in communities
across our region by
offering broad-ranging,
innovative solutions that
will continue to make life
better for the people
we serve.”

TVA ANNUAL REPORT FY 2022

FINANCIAL
STRENGTH

Building the Future...
with Our Stakeholders

TVA invests in our communities and our partners. Thanks to the
financial strength we’ve worked hard to achieve, we invest heavily
in our operations — which ensures our power system is operating
at top capacity. And we invest in our communities, providing
everything from Pandemic Recovery Credits to support for
students. We are stronger together.

Financial strength enables investment
in operations
TVA’s focus on financial strength and stability enables us to invest wisely —
in partnerships, in communities, and in our operations as we develop the Energy
System of the Future

The seven-state region we serve benefits from
these investments, with reliable, low-cost energy.
We have maintained a 99.999% reliability rate for
23 consecutive years.

current facility and be among the best in the
nation,” said Greg Henrich, vice president of
Transmission Operations & Power Supply
at TVA.

At TVA, we have one of the largest high-voltage
transmission systems in North America. We
are five years into a 10-year, $300 million fiber
optic initiative that will improve the reliability and
resiliency of our 16,400-mile grid. As of Sept. 30,
2022, TVA had spent $197 million on installation
of the fiber optic lines and expects to spend an
additional $103 million.

A new energy management system (EMS),
which was approved for $90 million, is
being constructed for use in the Primary
System Operations Center. The EMS
is expected to be complete in 2026
and will have enhanced grid visibility,
increased security and other
advanced features.

Central to the success of the grid of tomorrow
is TVA’s new state-of-the-art Primary System
Operations Center, which is being built in rural
Meigs County, Tennessee. The secure facility is
approximately 50% complete with construction
and is expected to be constructed by the end of
calendar year 2023 and fully operational in 2025.

“When completed, the two-story concrete
structure will far exceed the capabilities of our

“Rigorous benchmarking and
research help ensure the center
and the new EMS will provide
us with a more flexible and
responsive system needed for
the changing power system in
the future,” Henrich said. “It
will allow TVA to continue
99.999% reliability, build
resiliency, provide low-

TENNESSEE VALLEY AUTHORITY

cost electricity and attract industry and jobs to
the Tennessee Valley.”

TVA’s financial stability has enabled improvements
and maintenance to our most-steadfast forms of
renewable energy — the 49 dams in our power
system. TVA has invested more than $900 million
in dam safety projects since 2010.

A sophisticated system of dams control flooding
along the Tennessee River watershed, and each
year the system prevents about $300 million in
flood damage in the TVA region and along the
Ohio and Mississippi rivers. To date, the
operation of this system is estimated to have
prevented more than $9.7 billion in flood losses
across the Tennessee Valley.

In FY 2022, TVA invested $4.6 million on analysis
and preparation and $17 million in capital
expenses for 27 strategic risk mitigation dam
projects. In that same time period, we also spent
$18.7 million on day-to-day care of the dams.

Our unique mission provides us with an
opportunity — and obligation — to serve in a

Strength in stability

• Entirely self-funded since 1999

• Maintained flat wholesale base
rates since FY 2019

• Total financing obligations are at the
the lowest level in 35 years

leadership role in accelerating a clean-energy
future for the region and nation.

“TVA has one of the nation’s cleanest, lowest-
cost, most reliable power systems, and it’s
fueling our region’s economic growth,” said John
Thomas, TVA’s Executive Vice President and
Chief Financial and Strategy Officer. “We continue
to invest in our system, including more than $1
billion in base capital investments in our FY 2023
budget, which will enhance our decarbonization
efforts and help maintain stable rates.”

Protecting and preserving the beautiful public lands and
water of the Tennessee Valley is an important part of
TVA’s mission.

TVA ANNUAL REPORT FY 2022

‘The right thing to do’
Credits support partners, customers in need

In Fall 2020, at the height of the COVID-19
pandemic, Knoxville Utilities Board (KUB) fielded
a lot of calls from worried customers who couldn’t
pay their bills due to job loss, reduced hours and
other situations.

As the local power company (LPC) tried to
determine how to meet its customers’ needs,
TVA — a long-time partner — announced a
special Pandemic Relief Credit program that
would apply a 2.5% base rate credit for LPCs,
directly served customers and the LPCs’ large

customers.

TVA provided a combined total
of $449 million in Pandemic
Relief Credits in FY 2021 and
Pandemic Recovery Credits in
FY 2022 for LPCs, their large
commercial and industrial
customers, and TVA directly
served customers

TVA expects to provide an
additional $230 million in
Pandemic Recovery Credits
in FY 2023

KUB decided to
distribute its entire
Pandemic Relief Credit,
which amounted to $7.2
million, to its customers
in need.

“When we found out
we’d be getting this
credit, it felt like the right
thing to do — to pass
that money on to our
customers who were
struggling,” said Tiffany
Martin, Vice President
and Chief Customer
Officer at KUB.

“For our customers, it created a sense of
reassurance,” she added. “They realized that KUB
is here and cares, and that TVA cares, too. We
couldn’t have provided that help without TVA’s
relief credits and partnership.”

KUB developed the COVID Utility Relief Effort
(CURE) program, which provided a one-time
payment of up to $1,000 for residential customers
and $3,000 for business customers. To date, it
has provided 9,694 customers with more than
$6.6 million in funding, and it launched Phase 2 of
the program in Fall 2022.

In addition to the FY 2021 credits, TVA provided
2.5% in Pandemic Recovery Credits in FY 2022,
and the TVA Board approved a 2.5% Pandemic
Recovery Credit for FY 2023.

“TVA’s strong financial results put us in position
to help our customers with recovery from the
pandemic,” Jeff Lyash, TVA President and Chief
Executive Officer, said. “We’re able to invest in
our communities and our LPC partners because
of the financial strength we’ve worked hard
to achieve. This is a testament to the public
power model.”

Martin agreed.

“TVA is a trusted partner,” Martin said, “and KUB,
our customers and our communities benefit from
their partnership.”

TVA partners closely with customers. Here, TVA’s Dan Pratt, Jeannette Mills and Board Chair Bill Kilbride enjoy time with David Wade, President and
52
CEO, Electric Power Board of Chattanooga.

TENNESSEE VALLEY AUTHORITY ‘Confidence in TVA’
Enterprise sees strong demand for its
first 30-year bond since 2012

TVA priced $500 million of new 30-year maturity
global power bonds on Sept. 8, 2022, with an
interest rate of 4.25%.

The offering marked TVA’s first 30-year bond
since 2012, and the 4.25% rate is tied as the
second-lowest ever for a TVA bond of 30 years
or longer in maturity.

As TVA Builds the Energy System of the Future,
the proceeds of the bonds will be used for
general power system purposes and to
refinance existing debt.

Despite an increase in interest rates in the first
half of the year, long-term rates remained low in
September, creating an opportunity for TVA to
secure funding at attractive levels.

“We were pleased to see a window of stability
and an opportunity for TVA to take advantage
of still historically low long-term rates,” said
Tammy Wilson, Vice President, Treasurer and
Chief Risk Officer at TVA. “With one of the
nation’s largest electric power systems, TVA is
a natural issuer of longer-maturity bonds. The
success of this transaction shows the confidence
investors have in TVA and the strength of the
public power model.”

Strong demand for high-quality investments of
longer duration contributed to the success of the
offering. The bonds drew interest from a variety
of investors, including asset managers, pension
funds and insurance companies, among others.

“The new 30-year bond fits well in TVA’s debt
profile, which has a low number of bonds
maturing in the early 2050s,” Wilson said. “TVA
debt levels remain at the lowest in 35 years, and
the new bonds will help TVA maintain stable
interest costs for decades to come.”

Winning
combination
Student stock pickers manage millions

Students at 25 universities across the Tennessee
Valley gain experience managing a portion of the
funds in TVA’s Asset Retirement Trust.

The investment returns earned by the students
are contributing to TVA’s mission of providing
reliable, low-cost power by earning a return on our
investment assets that are going to one day offset
the decommissioning costs of our power assets.

Students from each university actively manage
an approximately $500,000 portfolio. It provides
students with real-world experience that often
leads to paid internships and gainful employment.

The students banked a 25% return for 2021 and
are successfully managing the volatility in the
markets for 2022. Investment Challenge Program
students have collectively outperformed the
S&P 500 total return of 8.56% by 53 basis points
annually since inception — an excess cumulative
return of 80% — and have generated $16 million
in investment returns.

The program is an example of the power
of partnerships.

“TVA’s highly regulated
cybersecurity program
protects our technology
assets and workforce, which
in turn protects energy sources
and promotes safety for our
customers across the region.”
—Andrea Brackett, TVA Vice President of
Cybersecurity and Chief Information Security Officer

TVA ANNUAL REPORT FY 2022‘Building the future together’
Financial strength enables us to support customers, communities

Fiscal year 2022 was a busy one at TVA, as we
continued to work to advance cleaner energy
while meeting record power demand and
providing reliable, low-cost power for the region.

We continue to focus on our five strategic
priorities to achieve our mission, and one of
these priorities is Financial Strength.

We work with 153 local power companies,
and today, 147 of our local power company
customers, or 96%, are on 20-year evergreen
power contracts. They accounted for 77% of
total operating revenues this fiscal year.

Our financial strength enables us to support
our partners. Partner credits returned to our
customers this fiscal year totaled $199 million.
These credits have totaled more than $560

million since TVA introduced the 20-year
contract option in 2019.

Our strong financial results also have positioned
us to help all of our customers with recovery from
the pandemic. This year, the 2.5% Pandemic
Recovery Credit we provided totaled $228 million.
TVA has now provided $449 million in pandemic-
related credits, which is money that stays in our
communities to address local needs.

Our focus on operational excellence and on a
clean, diverse power supply is helping to offset
rising energy prices and keep the price of power
low for our customers. This fiscal year, more
than half of the electricity supplied by TVA was
from nuclear, hydroelectric and purchased power
renewables, which are sources not directly
impacted by the recent fluctuations in fuel prices.

TENNESSEE VALLEY AUTHORITY

Our business model is based on generating the
revenue needed to manage our system while
keeping our power rates low and providing
reliable and sustainable power, which creates an
attractive business environment.

Together, TVA and our partners in economic
development had one of our best years yet,
expecting to help create or retain approximately
66,500 jobs and more than $10.2 billion projected
capital investments to our region.

This year, our operating revenue was 19% higher
than the year before, primarily due to higher fuel
cost recovery revenue and higher power sales.
Our total operating revenues for the year were
$12.5 billion on 163 billion kilowatt-hours of
electricity sales.

“Our public power model continues to provide
value to the communities and customers we are
privileged to serve,” said Jeff Lyash, President
and Chief Executive Officer at TVA. “We are
building the future together, and it looks
quite strong.”

Residential rates
lower than 80% of
the top 100 U.S.
utilities based
on June 2022
12-month rolling
average from U.S.
Energy Information
Administration (EIA)

Industrial rates
lower than more
than 95% of the top
100 U.S. utilities
based on June 2022
12-month rolling
average from
EIA data

Return 5% of Power
Revenues to States
and Counties as
tax equivalent
payments, totaling
nearly $512 million*
in FY 2022, $5.3
billion* in past 10
years and $15.7
billion* since 1941

*Not including the tax
equivalent impact associated
with fuel cost adjustments

TVA invests heavily in our operations, including our dams, to
ensure our power system is operating at top capacity.

TVA ANNUAL REPORT FY 2022

LEADERSHIP

Enterprise
Leadership Team
The strength of TVA is our people, and our
senior leadership team is no exception.

With years of experience, our talented and diverse
senior leaders are committed to and oversee
all TVA strategy, policy and operations and are
responsible for delivering TVA’s mission of service
through reliable, low-cost energy, environmental
stewardship and economic development.

Timothy Rausch
Executive Vice President and
Chief Nuclear Officer

Jeff Lyash
President and Chief
Executive Officer

David B. Fountain
Executive Vice President and
General Counsel

Jeannette M. Mills
Executive Vice President and
Chief External Relations Officer

Sue Collins
Executive Vice President and Chief
People & Communications Officer

John M. Thomas III
Executive Vice President
and Chief Financial &
Strategy Officer

Don Moul
Executive Vice President
and Chief Operating Officer

TENNESSEE VALLEY AUTHORITY

Board of Directors
Our board members are nominated by the President
of the United States and confirmed by the Senate,
and each serves a term of up to five years.

The proceedings of their meetings are open to the public. When
their terms expire, directors may remain on the board until the end
of the current congressional session or until their successors take
office, whichever comes first.

As provided by the TVA Act and the TVA Bylaws, the principal
responsibilities of the board are to establish broad strategies,
goals and objectives; to set long-range plans and policies; and to
ensure their implementation by the TVA staff, which is led by the
Chief Executive Officer. Directors swear an oath to faithfully and
impartially perform the duties of the office.

A.D. Frazier
Mineral Bluff, GA

Beth Harwell
Nashville, TN

Bill Kilbride
Chair of the Board
Chattanooga, TN

Brian Noland
Johnson City, TN

Jeff W. Smith
Knoxville, TN

TVA ANNUAL REPORT FY 2022

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