What changed in this filing

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Item 2. Properties

2020-11-17 compared with 2019-11-15 · 43 added, 24 removed, 80 unchanged (46% of the section changed)

3 unchanged sentences

Generating Properties

At September 30, 2019 , TVA-operated generating assets consisted of seven nuclear units, 26 active coal-fired units, 86 simple-cycle units, 14 combined-cycle power blocks, 113 conventional hydroelectric units, four pumped-storage units, five diesel generator units, and 14 solar sites.

As of September 30, 2019 , 16 of the simple-cycle combustion turbine units and four of the combined-cycle power blocks were leased to special purpose entities ("SPEs") and leased back to TVA under long-term leases.

See Note 13 — Debt and Other Obligations — Lease/Leasebacks .

At September 30, 2020, TVA-operated generating assets consisted of seven nuclear units, 25 active coal-fired units, 86 simple-cycle units, one cogeneration unit, 14 combined-cycle power blocks, 109 conventional hydroelectric units, four pumped-storage units, five diesel generator units, and 14 solar sites.

As of September 30, 2020, eight of the simple-cycle combustion turbine units and four of the combined-cycle power blocks were leased to special purpose entities ("SPEs") and leased back to TVA under long-term leases.

See Note 10 — Variable Interest Entities and Note 13 — Debt and Other Obligations — Lease/Leasebacks .

In addition, TVA is leasing the three Caledonia combined-cycle power blocks under a long-term lease.

5 unchanged sentences

Source of Capability

Summer Net Capability (MW)

Date First Unit Placed in Service (CY)

Date Last Unit Placed in Service (CY)

of Units Summer Net Capability (MW) Date First Unit Placed in Service (CY) Date Last Unit Placed in Service (CY)

TVA-Operated Generating Facilities

Browns Ferry (2)

Alabama 3 3,309 1974 1977

Sequoyah Tennessee 2 2,292 1981 1982

Watts Bar Tennessee 2 2,321 1996 2016

Total Nuclear

Bull Run Tennessee 1 865 1967 1967

Cumberland Tennessee 2 2,470 1973 1973

Gallatin Tennessee 4 976 1956 1959

Kingston Tennessee 9 1,398 1954 1955

Shawnee Kentucky 9 1,206 1953 1955

Total Coal-Fired 25 6,915

1 unchanged sentence

Simple-Cycle Combustion Turbine

Marshall County

Allen Tennessee 20 456 1971 1972

Brownsville Tennessee 4 468 1999 1999

Colbert Alabama 8 392 1972 1972

Gallatin Tennessee 8 642 1975 2000

Gleason Tennessee 3 500 2000 2000

Johnsonville Tennessee 19 1,189 1975 2000

Kemper Mississippi 4 348 2002 2002

Lagoon Creek Tennessee 12 1,048 2001 2002

Marshall County Kentucky 8 608 2002 2002

Subtotal Simple-Cycle Combustion Turbine 86 5,651

Combined-Cycle Combustion Turbine

Mississippi 1 713 2007 2007

Tennessee 1 1,106 2018 2018

Caledonia (7)

Mississippi 3 765 2003 2003

John Sevier (8)

Tennessee 1 871 2012 2012

Lagoon Creek (9)

Tennessee 1 525 2010 2010

Magnolia Mississippi 3 918 2003 2003

Paradise (10)

Kentucky 1 1,100 2017 2017

Southaven Mississippi 3 780 2003 2003

Subtotal Combined-Cycle Combustion Turbine 14 6,778

Co-Generation

Johnsonville Tennessee 1 80 1975 2000

Total Natural Gas and/or Oil-Fired 101 12,509

Hydroelectric

Conventional Plants

Conventional Plants Alabama 36 1,176 1925 1962

Georgia 2 35 1931 1956

Kentucky 5 223 1944 1948

North Carolina 6 492 1940 1956

Tennessee 60 1,833 1912 1972

Pumped-Storage (11)

Tennessee 4 1,635 1978 1979

Total Hydroelectric 113 5,394

Diesel Generator

Meridian Mississippi 5 9 1998 1998

TVA Non-hydro Renewable Resources (12)

7 unchanged sentences

The generating capability is expected to increase by an estimated

465 MW after sufficient run time to validate the new capacity.

465 MW after sufficient run time to validate the new capacity upon issuance of the engineering memos.

(3) See Generating Properties above for a discussion of TVA-operated natural gas and/or oil-fired facilities subject to leaseback and long-term lease arrangements.

7 unchanged sentences

(11) See Item 1, Business — Power Supply and Load Management Resources — Hiwassee Hydro Unit 2 for a discussion of Hiwassee Hydro Unit 2.

(12) TVA owns 1 MW of solar installations at 14 sites.

(12) TVA owns approximately 1 MW of solar installations at 14 solar sites.

(13) Contract Renewable Resources include capability from various renewable energy programs established by TVA to encourage the development of solar, wind, biomass, and low-impact hydroelectric generation systems across the Tennessee Valley.

(14) Power Purchase and Other Agreements includes renewable resources.

See Item 1, Business — Power Supply and Load Management Resources — Purchased Power and Other Agreements for information on renewable energy power purchase contracts.

See Item 1, Business — Power Supply and Load Management Resources — Power Purchase and Other Agreements for information on renewable energy power purchase contracts.

Transmission Properties

4 unchanged sentences

At September 30, 2020, certain qualified technological equipment and other software related to TVA's transmission system were leased to private entities and leased back to TVA under long-term leases.

See Note 13 — Debt and Other Obligations — Lease/Leasebacks .

See Note 13 — Debt and Other Obligations — Lease/Leasebacks and Note 22 — Commitments and Contingencies — Commitments — Leasebacks .

Natural Resource Stewardship Properties

6 unchanged sentences

As part of its stewardship responsibilities, TVA approval is required to be obtained before any obstruction affecting navigation, flood control, or public lands can be constructed in or along the Tennessee River and its tributaries.

These public lands and waters managed by TVA provide both conservation and responsible recreation, and serve as a driver for nearly $12.0 billion dollars of annual economic activity across the Tennessee Valley each year.

TVA has a variety of buildings and structures located throughout its service area including generation and transmission facilities, corporate offices, customer service centers, power service centers, warehouses, visitor centers, and crew quarters.

11 unchanged sentences

The Basic Tennessee Valley Authority Power Bond Resolution adopted by the TVA Board on October 6, 1960, as amended on September 28, 1976, October 17, 1989, and March 25, 1992 (the "Basic Resolution") prohibits TVA from mortgaging any part of its power properties and from disposing of all or any substantial portion of these properties unless TVA provides for a continuance of the interest, principal, and sinking fund payments due and to become due on all outstanding Bonds, or for the retirement of such Bonds.

Bellefonte Nuclear Plant .

On November 14, 2016, following a public auction, TVA entered into a contract to sell substantially all of the Bellefonte site to Nuclear Development, LLC, for $111 million.

Nuclear Development, LLC, paid TVA $22 million on November 14, 2016, with the remaining $89 million due at closing.

Nuclear Development, LLC, had up to two years from November 14, 2016, to close on the property, and TVA agreed to maintain the site until closing.

Nuclear Development, LLC, requested and was granted an extension of the initial closing date to November 30, 2018.

Nuclear Development, LLC, failed to obtain NRC approval of the transfer of the Bellefonte nuclear licenses.

TVA determined that the Atomic Energy Act required that this approval be obtained before closing.

TVA declined to provide a second extension of the purchase agreement.

On November 30, 2018, Nuclear Development, LLC, filed suit against TVA in the United States District Court for the Northern District of Alabama.

See Note 22 — Commitments and Contingencies — Legal Proceedings for a discussion of the lawsuit filed by Nuclear Development, LLC.

Knoxville Property.

In 2016, TVA completed a comprehensive assessment of its real estate holdings in the Knoxville, Tennessee region including the KOC and adjacent Summer Place Complex ("SPC").

As a result of this study and a subsequent environmental assessment in 2017, TVA is in the process of consolidating its Knoxville area employees into the West Tower of the KOC or a centralized field office in Norris, Tennessee.

As part of this consolidation effort, TVA may convey the SPC and the majority of the East Tower of the KOC.

As a result of this study and a subsequent Environmental Assessment in 2017, TVA has consolidated its Knoxville area employees into the West Tower of the KOC and the Greenway Drive Transmission Service Center, and is completing the centralized field offices in Norris, Tennessee.

As part of this consolidation effort, TVA approved the conveyance of the SPC and the East Tower of the KOC and the transaction closed in August 2020.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties