Tennessee Valley Authority – Energy Initiatives and Challenges Jason Snyder Senior Program Manager, EnergyRight Solutions for Business and Industry February 26, 2019

TVA Overview Founded in 1933, TVA is a corporation owned by the U.S. government Provides electricity for 9 million people across parts of 7 Southeastern states Delivered over 16,000 linear miles of high-voltage power lines from 53 power plants Funded by sales of electricity; TVA makes no profits and receives no taxpayer money TVA also provides flood control, navigation, land management and recreation for the Tennessee River system, and works with local utilities and state and local governments to promote economic development across the region 154 58 local municipal and cooperative distributors of TVA power direct-served customers

TVA Mission | Strategic Imperatives

Changing Business and Industry Marketplace

Customer Preferences are Changing

Market Demand Commercial & Industrial Renewable Energy Goal 155 companies to date We are seeing the greatest demand for RE from C&I Customers with Sustainability and Renewable Energy Goals. 260+ members

EnergyRight Solutions for Business and Industry

Smart Energy Technologies | Electrification Our newest incentive offerings achieve 3 major benefits toward achieving TVA’s overarching mission: Decreases the incremental cost for each unit of electricity while optimizing the system load shape. Energy Reduces both the site and overall emissions footprint. Environment Enables TVA to manage energy costs which keeps rates competitive and contributes to indirect local job growth. Economic Development E

Incentive Program Offerings ENERGYRIGHT SOLUTIONS FOR BUSINESS ENERGYRIGHT SOLUTIONS FOR INDUSTRY Incentivizes commercial and industrial customers for Smart Energy Technology | Electrification upgrades Unbiased, reliable technical assistance and incentives to help identify facility and process energy-wise solutions Quick Links https://www.energyright.com/ TVABusinessIncentive@tva.gov

Federal Energy Services Program

Federal Energy Services Program (FESP) Available to all federal agencies in TVA’s service territory One-stop-shop for audits, design, engineering, construction, and financing; with TVA managing all phases of the project TVA subcontracts with qualified energy services providers TVA fronts capital costs (repaid from energy savings) Provides value-added energy services to federal partners to help them meet their mission while achieving energy goals Utilizes Utility Energy Services Contract (UESC) vehicle to maximize benefit: A contract authorized by Energy Policy Act of 1992 that allows utilities to provide their Federal customers with energy and water efficiency improvements. (Section 546(c): Utility Programs) Its really about serving valley customers. Job, economic development, etc… $25.5 Billion in economic activity to the Valley and 192,00 jobs No incentives but do offer financing

TVA FESP Projects Quick Link blpowel0@tva.gov Offering UESCs since 1999, over 30 projects Past projects: Redstone Arsenal, Ft. Campbell, NSA Mid-south, IRS, NAS Meridian Current projects (development and implementation): Redstone Arsenal Ft. Campbell Naval Support Activity Mid-south Abernethy Federal Building - Courthouse, Aberdeen, MS DOE Paducah Site NASA Marshall Space Flight Center Quick Link blpowel0@tva.gov

Valley Renewables

Tennessee Valley Renewable Story In-Valley Renewables Out of Valley Wind Renewable Resources 8,500*+ MW of Renewable Resources 1,500*+ MW Wind, Solar & Biomass 1,215 MW of Midwest Wind TVA continues to diversify it’s energy mix and ensure we’re able to provide solutions for any customer segment that is interested in renewable energy. Our Renewable Generation Solutions - Green Power Providers and Dispersed Power Production, provide end-use consumers the opportunity to generate their own green energy. Program benefits include: Onsite, New to the World, In-Valley Solar Also offer Renewable Energy Certificate (REC) solutions – Green Power Switch and Southeastern RECs, which provide customers the opportunity to offset some of their energy use and make claims of being “x %” renewable. Program Benefits Include: No long term commitment, no upfront costs, and no additional infrastructure needed. Google = 372 MW(AC) and Facebook = 377 MW(AC) – contracted in-valley renewable energy Out of Valley – These are our wind PPAs and supply the RECs for TVA’s Southeastern RECs solution. Quick Links https://www.tva.gov/Energy/Valley-Renewable-Energy renewables@tva.gov *operating and/or contracted as of January 2019