Contents

financial highlights

overview of tva

letter from the Chairman

letter from the President and CEO

operational excellence

environmental leadership

economic development

the Valley community

investor information

form 10-k

More Operational Excellence

Energy to grow

A powerful idea

A river of possibilities

 

Operational Excellence

On the job, off the charts

Above is Maintenance Coordinator Sam Hawkins of Shawnee Fossil Plant in Kentucky. In 2006, five units at Shawnee set continuous-run records, led by Unit 6, which set an all-time national record when it passed 1,017 days of continuous operation on November 30, 2006. In 2006, TVA’s fossil system generated 100.2 million megawatt-hours of electricity, the second-highest amount in TVA’s history.

Last summer, TVA’s power system met 16 of its 20 all-time peaks, topped off by the peak of 32,008 megawatts on July 18, in a week that saw four consecutive peaks above 31,000 megawatts. All 59 fossil units were in service for three of the four peak days, and all 72 combustion turbines and five nuclear units were in service for the week. While facing one of the driest summers on record, TVA’s hydro fleet was kept available to meet the higher-load evening hours. Despite the challenges of buying power during a widespread heat wave, TVA’s Bulk Power Trading team not only purchased enough power to meet TVA’s needs but also secured reliable natural gas supplies for TVA’s combustion-turbine fleet and contracted combined-cycle facilities. TVA’s transmission system experienced no significant reliability issues, despite the heavy loads.

Eleven combustion-turbine units—eight in Marshall County, Kentucky, and three in Gleason, Tennessee—are being purchased to further enhance TVA’s flexibility in meeting future peak demands.

I proudly accept.

Sam Hawkins
Maintenance Coordinator