What changed in this filing

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Item 2. Properties

2022-11-15 compared with 2021-11-15 · 24 added, 26 removed, 100 unchanged (33% of the section changed)

3 unchanged sentences

Generating Properties

At September 30, 2021, 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 hydroelectric units, five diesel generator units, and 13 solar installations.

As of September 30, 2021, 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.

At September 30, 2022, TVA-operated generating assets consisted of seven nuclear units, 25 active coal-fired units, 86 simple-cycle units (81 active units and five idled units), one cogeneration unit, 14 combined-cycle power blocks, 109 conventional hydroelectric units (106 active units and three units in long-term outage and unavailable for service), four pumped-storage hydroelectric units, five diesel generator units, and 13 solar installations.

As of September 30, 2022, eight of the simple-cycle CTs 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 11 — Variable Interest Entities and Note 14 — Debt and Other Obligations — Lease/Leasebacks .

2 unchanged sentences

Net Capability

Net capability is defined as the ability of an electric system, generating unit, or other system component to carry or generate power for a specified time period.

It does not include real-time bulk electrical system operating constraints such as transmission line loading limitations, fuel availability such as coal, gas, and seasonal river reservoir levels, fuel blend, severe weather events, intermittency of renewable resources associated with weather and other factors, environmental and/or other regulatory constraints, transmission system outages, generator outages, or generator derates.

Summer net capability as presented in the table below reflects the expected output of individual resources at TVA’s anticipated summer demand peak.

The summation of those individual resources does not include the real-time bulk electrical system operating constraints previously noted.

See also Item 1A, Risk Factors — Operational Risks and Risks Related to the Environment and Catastrophic Events.

The following table summarizes TVA's summer net capability in MW at September 30, 2022:

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Simple-Cycle Combustion Turbine

Allen Tennessee 20 456 1971 1972

Tennessee 20 287 1971 1972

Brownsville Tennessee 4 438 1999 1999

36 unchanged sentences

TVA Non-hydro Renewable Resources (12)

TVA Other Nonrenewable Resources (12)

Total TVA-Operated Generating Facilities 32,012

3 unchanged sentences

Total Summer Net Capability 38,111

(1) Net capability is defined as the ability of an electric system, generating unit, or other system component to carry or generate power for a specified time period

and does not include operational limitations such as derates.

(1) 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.

2 unchanged sentences

therefore, this short-term capability is not presented in the table above.

(3) As of September 30, 2022, TVA had five idled units at Allen Combustion Turbine Facility:

Units 2, 3, 11, 17, and 18 and three units that were in long-term outage and unavailable for service at Wilbur Hydroelectric Facility:

These units are included in their respective locations in the table above;

however, the capability from these units is excluded.

(4) Ackerman Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).

7 unchanged sentences

(11) See Item 1, Business — Power Supply and Load Management Resources — Raccoon Mountain Pumped-Storage Plant for a discussion of Raccoon Mountain Pumped-Storage Plant.

(12) TVA owns approximately 1 MW of solar capability among 13 solar installations.

(12) TVA owns approximately one MW of renewable solar capability among 13 solar installations and Allen Combined Cycle Facility has five MW of nonrenewable biomass capability that came online in 2022.

(13) Contract Renewable Resources is capability from various historical renewable energy programs that consist of PPAs primarily with individuals and small businesses.

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

TVA sells the RECs resulting from some of this purchased power to certain customers.

See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Renewable Power Purchase Agreements .

Transmission Properties

TVA's transmission system interconnects with systems of surrounding utilities and consisted primarily of the following assets at September 30, 2021:

• Approximately 2,500 circuit miles of 500 kilovolt, 11,900 circuit miles of 161 kilovolt, and 2,000 circuit miles of other voltage transmission lines;

TVA's transmission system interconnects with systems of surrounding utilities and, at September 30, 2022, consisted primarily of approximately 2,500 circuit miles of 500 kilovolt, 11,900 circuit miles of 161 kilovolt, and 2,000 circuit miles of other voltage transmission lines;

4,412 miles of fiber optic lines;

534 transmission substations, power switchyards, and switching stations;

• 1,325 customer connection points (customer, generation, and interconnection).

At September 30, 2021, certain qualified technological equipment and software ("QTE") related to TVA's transmission system were leased to private entities and leased back to TVA under long-term leases.

See Note 14 — Debt and Other Obligations — Lease/Leasebacks and Note 23 — Commitments and Contingencies — Commitments — Leasebacks .

and 1,341 customer connection points (customer, generation, and interconnection).

Natural Resource Stewardship Properties

TVA operates and maintains 49 dams and manages the following natural resource stewardship properties:

• Approximately 11,000 miles of reservoir shoreline;

• Approximately 293,000 acres of reservoir land;

• Approximately 650,000 surface acres of reservoir water;

• Approximately 100 public recreation areas throughout the Tennessee Valley, including campgrounds, day-use areas, and boat launching ramps.

TVA operates and maintains 49 dams and manages approximately 11,000 miles of reservoir shoreline, 293,000 acres of reservoir land, 650,000 surface acres of reservoir water, and approximately 100 public recreation areas throughout the Tennessee Valley, including campgrounds, day-use areas, and boat launching ramps.

Additionally, TVA manages over 150 agreements for commercial recreation (such as campgrounds and marinas).

2 unchanged sentences

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.

Two significant buildings are its Knoxville Office Complex ("KOC") and the Chattanooga Office Complex in Tennessee.

Two significant buildings are its Knoxville Office Complex and the Chattanooga Office Complex ("COC") in Tennessee.

TVA continues to study its real property portfolio as part of the Strategic Real Estate Plan, which is aimed at reducing

cost, right-sizing the portfolio, and aligning real estate holdings with TVA's strategic direction.

In addition, as TVA continues to

implement mandatory telework for those who do not have to be physically present during the COVID-19 pandemic, it is also

assessing and reviewing the pandemic's long-term impacts to real estate.

In addition, as a result of the COVID-19 pandemic, TVA continues to assess a hybrid work environment for those who do not have to be physically present at TVA offices.

TVA is also assessing and reviewing the pandemic's long-term impacts to the real property portfolio, including the COC.

Disposal of Property

TVA has broad authority to dispose of personal property but only limited authority to dispose of real property.

TVA's primary, but not exclusive, authority to dispose of real property is briefly described below:

TVA's primary, but not exclusive, authority to dispose of real property is as follows:

TVA has authority to dispose of surplus real property at a public auction;

1 unchanged sentence

TVA can dispose of real property in connection with the construction of generating plants or other facilities under certain circumstances;

• TVA has authority to grant easements for rights-of-way and other purposes.

and TVA has authority to grant easements for rights-of-way and other purposes.

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 (1) from mortgaging any part of its power properties and (2) 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.

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 consolidated its Knoxville area employees into the West Tower of the KOC and the Greenway Drive Transmission Service Center in 2020.

Consolidation of the centralized field offices in Norris, Tennessee and additional consolidations from the Greenway Area Office are expected to be completed in early 2022.

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