Item 2. Properties
ITEM 2. PROPERTIES
TVA holds personal property in its own name but holds real property as agent for the U.S. TVA may acquire real property as an agent of the U.S. by negotiated purchase or by eminent domain.
Generating Properties
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 . In addition, TVA is leasing the three Caledonia combined-cycle power blocks under a long-term lease. For a discussion of these assets, see Item 1, Business — Power Supply and Load Management Resources .
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.
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The following table summarizes TVA's summer net capability in MW at September 30, 2022:
SUMMER NET CAPABILITY
At September 30, 2022
Source of Capability
Location
Number
of Units Summer Net Capability (MW) Date First Unit Placed in Service (CY) Date Last Unit Placed in Service (CY)
TVA-Operated Generating Facilities
Nuclear
Browns Ferry Alabama 3 3,662 1974 1977
Sequoyah Tennessee 2 2,292 1981 1982
Watts Bar Tennessee 2 2,278 1996 2016
Total Nuclear
7 8,232
Coal-Fired
Bull Run Tennessee 1 765 1967 1967
Cumberland Tennessee 2 2,470 1973 1973
Gallatin Tennessee 4 976 1956 1959
Kingston Tennessee 9 1,298 1954 1955
Shawnee Kentucky 9 1,071 1953 1955
Total Coal-Fired 25 6,580
Natural Gas and/or Oil-Fired (1)(2)
Simple-Cycle Combustion Turbine
Allen (3)
Tennessee 20 287 1971 1972
Brownsville Tennessee 4 438 1999 1999
Colbert Alabama 8 360 1972 1972
Gallatin Tennessee 8 580 1975 2000
Gleason Tennessee 3 455 2000 2000
Johnsonville Tennessee 19 1,028 1975 2000
Kemper Mississippi 4 292 2002 2002
Lagoon Creek Tennessee 12 884 2001 2002
Marshall County Kentucky 8 592 2002 2002
Subtotal Simple-Cycle Combustion Turbine 86 4,916
Combined-Cycle Combustion Turbine
Ackerman (4)
Mississippi 1 713 2007 2007
Allen (5)
Tennessee 1 1,106 2018 2018
Caledonia (6)
Mississippi 3 765 2003 2003
John Sevier (7)
Tennessee 1 871 2012 2012
Lagoon Creek (8)
Tennessee 1 525 2010 2010
Magnolia Mississippi 3 918 2003 2003
Paradise (9)
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 83 1975 2000
Total Natural Gas and/or Oil-Fired 101 11,777
Hydroelectric
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 (3)(10)
60 1,828 1912 1972
Pumped-Storage (11)
Tennessee 4 1,654 1978 1979
Total Hydroelectric 113 5,408
Diesel Generator
Meridian Mississippi 5 9 1998 1998
TVA Non-hydro Renewable Resources (12)
1
TVA Other Nonrenewable Resources (12)
5
Total TVA-Operated Generating Facilities 32,012
Contract Renewable Resources (13)
324
Power Purchase and Other Agreements - Renewable (14)
2,157
Power Purchase and Other Agreements - Nonrenewable (14)
3,618
Total Summer Net Capability 38,111
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Notes
(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) As of September 30, 2022, 326 MW of peak firing short-term capability of simple-cycle combustion turbine units was not operational and would require additional
investment for dependable use; 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: Units 1-3. 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).
(5) Allen Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).
(6) Caledonia Combined Cycle Plant ("Caledonia CC") is currently a leased facility operated by TVA.
(7) John Sevier Combined Cycle Facility ("John Sevier CCF") is a single steam cycle unit driven by three gas turbines (3x1 configuration).
(8) Lagoon Creek Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).
(9) Paradise Combined Cycle Facility is a single steam cycle unit driven by three gas turbines (3x1 configuration).
(10) Includes 86 MW of summer net capability associated with Hiwassee Hydro Unit 2. See Item 1, Business — Power Supply and Load Management Resources — Conventional Hydroelectric Dam s.
(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 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, 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; and 1,341 customer connection points (customer, generation, and interconnection).
Natural Resource Stewardship Properties
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). 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.
Buildings
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 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 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 as follows: TVA has authority to dispose of surplus real property at a public auction; TVA may dispose of real property for certain specified purposes, including providing replacement lands for certain entities whose lands were flooded or destroyed by dam or reservoir construction, providing real property for recreational use, and granting easements and rights-of-way upon which are located transmission or distribution lines; TVA can dispose of real property in connection with the construction of generating plants or other facilities under certain circumstances; 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.
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Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.