Tennessee Valley Authority (TVA) Key Messages, August 2017
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Description of document: Tennessee Valley Authority (TVA) Key Messages, August 2017 Requested date: 31-July-2017 Released date: 14-August-2017 Posted date: 21-August-2017 Source of document: FOIA Officer Tennessee Valley Authority 400 W. Summit Hill Drive WT 7D Knoxville, TN 37902-1401 (865) 632-6945 The governmentattic.org web site (“the site”) is noncommercial and free to the public. The site and materials made available on the site, such as this file, are for reference only. The governmentattic.org web site and its principals have made every effort to make this information as complete and as accurate as possible, however, there may be mistakes and omissions, both typographical and in content. 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Key Messages August 2017 Updated August 10, 2017 Key Messages for August 2017 Contents Allen Combined Cycle Plant Water Energy Efficiency, Renewable and Source ....................................................... 4 Distributed Generation ............................. 19 Allen Combined Cycle Plant Solar Grid Stability ......................................... 20 Generation ................................................. 5 Renewable Energy ............................... 20 Aquatic Plant Management ........................ 5 Renewable Request for Information (RFI)21 Bellefonte Nuclear Plant ............................ 6 Solar Projects ....................................... 21 Auction ................................................... 6 Solar Energy Transmission .................. 22 Release of Bellefonte Sale Draft Wind Energy Projects ........................... 23 Environmental Assessment .................... 6 EnergyRight® Solutions ........................... 24 Boone Dam ................................................ 7 Fiber* ....................................................... 25 Browns Ferry Extended Power Uprate (EPU) Project ............................................. 8 Floating Cabins ........................................ 26 Clean Air–General ..................................... 9 Gallatin Fossil Plant ................................. 27 Dry Scrubbers ...................................... 27 Carbon Dioxide (CO2) ............................ 9 Mercury Air Toxics Standard (MATS) – Offsite Groundwater Sampling ............. 28 Supreme Court Decision ........................ 9 Gas Plant Conversions (Allen, Paradise) 28 National Ambient Air Quality Standards Generation Portfolio ................................. 29 (NAAQS) .............................................. 10 Integrated Resource Plan ........................ 30 Sulfur Dioxide and Nitrogen Oxides (SO 2 Summary of the Recommended Planning & NOx) ................................................. 10 Direction ............................................... 31 Clean Power Plan .................................... 11 Kingston Fossil Plant ............................... 33 Promoting Energy Independence and Offsite Ash Disposal and Gypsum Landfill Economic Growth Executive Order – Permit Modification ............................... 33 Impacts ................................................. 11 Restoration and Compensation Clean Power Plan – EPA 111(d) .......... 11 Determination Plan ............................... 33 Coal Ash Storage ..................................... 12 Jacobs Engineering ash spill lawsuit* .. 34 Closure Options ................................... 12 Little Bear Creek Dam ............................. 34 Coal Operations ....................................... 13 Background .......................................... 34 Colbert Fossil Plant Groundwater ............ 13 Long-Range Financial Plan* .................... 35 Cove at Blackberry Ridge ........................ 14 Muscle Shoals Redevelopment ............... 36 Cumberland Fossil Plant Coal Silo Auction Marketing Activities ................. 36 Collapse ................................................... 14 Preparatory Work ................................. 36 Supporting Facts .................................. 14 TVA Auction Process ........................... 36 Cybersecurity ........................................... 15 Nuclear .................................................... 37 Dam Safety .............................................. 16 Capacity ............................................... 37 Drone Operations .................................... 17 Overall Performance ............................ 37 Economic Development ........................... 17 Ocoee and Recreation Interests .............. 38 FY2016 results ..................................... 17 Legislation Details ................................ 38 Effluent Limitations Guidelines ................ 18 Updated August 10, 2017 Page 2 of 69 Key Messages for August 2017 Background .......................................... 39 Board Vacancies .................................. 55 Pickwick Landing Dam ............................. 39 Executive Compensation ..................... 56 Rates ....................................................... 40 Executive Order to Reorganize the Executive Branch of the Federal 2017 Rate Change Letter ..................... 40 Government* ........................................ 56 Consumers’ Power Bills ....................... 41 Knoxville Office Complex – Potential Sale56 Industrial Power Rates ......................... 41 President's Federal Spending Proposal Strategic Pricing Plan ........................... 42 for FY2018 ........................................... 57 Recreation – Economic Value ................. 42 Privatization .......................................... 58 River System Operations ......................... 42 Winning Performance ........................... 59 Role of Regulator ..................................... 43 Watts Bar Unit 2 ....................................... 59 Complaint Resolution Process ............. 43 Watts Bar Nuclear Plant Work Pole Attachments ................................. 43 Environment ......................................... 60 Shawnee Fossil Plant .............................. 44 Appendix ......................................................... 61 Clean Air Equipment ............................ 44 Clean Water – General ............................ 61 Small Modular Reactors .......................... 45 Safe Coal Ash Storage ......................... 61 Stakeholder Relations .............................. 45 CCR Rule ............................................. 63 Glasgow EPB ....................................... 46 Coal Ash Impoundment Closures Environmental Impact Statement ............. 65 Supplier Diversity ..................................... 48 Recycling .............................................. 65 Tax Equivalent Payments ........................ 49 Coal Combustion Residual Projects ........ 66 Additional Information .......................... 49 Bull Run Fossil Plant Coal Combustion Transmission Reliability* .......................... 50 Products ............................................... 66 Geomagnetic Disturbances* ................ 50 Cumberland Fossil Plant ...................... 67 Vegetation Management ...................... 50 Gallatin Fossil Plant ............................. 67 TVA .......................................................... 53 Shawnee Fossil Plant ........................... 68 Overarching Messages ........................ 53 FY2016 Performance ........................... 53 FY 2017 Performance YTD .................. 54 Board Governance ............................... 54 Updated August 10, 2017 Page 3 of 69 Key Messages for August 2017 Allen Combined Cycle Plant Water Source TVA is required by the TVA Act to provide power at the lowest feasible price for all consumers in the Tennessee Valley. This mandate influences every decision we make, including the decision to replace Allen Fossil Plant with a cleaner natural gas-fueled power plant. o This decision will reduce carbon emissions and help keep rates lower by providing more flexibility in delivering power to the region. The new Allen Natural Gas Plant will use water to produce steam that turns the turbine and to keep plant equipment from overheating. Treated water to produce the steam will be purchased from Memphis Light, Gas and Water (MLGW), while five 1,250 gallons-per-minute on-site wells will provide water for cooling the natural gas plant. o Two wells will be used for normal operations and two wells will provide additional water during peak operation times. The fifth well will be a backup water supply. As a responsible steward of the environment, TVA commissioned the U.S. Geological Survey to study potential environmental impacts of the wells before proceeding with this option. The resulting study found on-site wells would not harm the aquifer. o Drilling wells for this $1 billion state-of-the-art natural gas plant is a least-cost decision that will have the greatest