1. 1 TVA Reliability Coordinator LG&E/KU ITO Spring Stakeholder Meeting Terry Williams and Jonathan Prater Tennessee Valley Authority 07/21/16

2. Talking Points 2 TVA TOPS/RC Org Changes RC Power System Restoration Drill TVA Generation Update Summer and Fall Weather Outlook MISO Dispatch Transfer Performance IDC Updates VAR Management System Expansion

3. TVA RC Organizational Changes 3

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5. TVA RC Power System Restoration Drill 5

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8. TVA Generation Updates (Fossil to Gas) 8 Jan. 2017 ISD 4/2016 Colbert FP Units 1-4 (TVA) ISD 6/2017 Paradise Units 1-2 (TVA)** Jan. 2016 Jan. 2018 ISD 12/2017 Johnsonville FP Units 1-4 (TVA) Jan. 2019 ISD 12/2018 Allen FP (TVA)** ** Replaced by onsite gas generation HAPs-MACT (EPA) One year extension deadline (4/15/2016) HAPs-MACT (EPA) Two year extension deadline (4/15/2017) Retired Paradise 1-2 FP (~1200 MW) Allen FP (~750 MW) New Paradise 3x1 CC (~1200 MW) Allen 2x1 CC (~1100 MW)

9. TVA Generation Updates (New Nuclear) 9 Watts Bar Unit 2 First new nuclear unit of the 21 st Century (1150 MW) Gen sync – June 3, 2016 Power ascension testing in progress Expected commercial operation – August 21, 2016

10. Balance of Summer Outlook Weather August – Hotter than 2015, 10-year, and 30-year (above normal from Great Lakes to Mid-Atlantic) September – Hot start (summer in Texas and Mid-Atlantic) 10

11. Fall Outlook 11 Weather October – Weak La Niña supports warmth in East November – East to West temperature swap (colder November) – Lower confidence in autumn forecast * Weather information from Commodity Weather Group, LLC

12. MISO Dispatch Transfer UDS Performance 12 Since June 1, normal trend of South to North has mostly changed to North to South. A few excursions (one on 6/17 - emergency due to nuclear unit trip). Congestion seen in SMEPA area and LGE-KU/BREC/TVA area recently due to the Dispatch Transfer. Not a significant increase in TLR activity.

13. IDC Updates 13 Change Order #384 implementation in the next couple of months Real-time generation values will be used in NNL calculations IDC currently uses generator Pmax value for NNL calculations (accounting for outages and derates) TVA submitting data for all RC partners If generator data is missing, IDC will revert back to using Pmax Market flows are not impacted by the change. Will continue to be calculated by each market

14. VAR Management System Expansion 14 5 LGE-KU regions created Currently testing on Development system (tweaking contingencies and verifying data) Input welcome on region definitions and buses monitored for average voltage in region Once data is validated, RC operators will be trained and changes pushed to Production

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