ML18025B050

Forwards Info to Meet Guarantee Requirement of Retrospective Premium Sys.Includes Financial Statements for FY79,quarterly rept,1-yr Internal Cash Flow Projection & Narrative Statement Re Curtailment of Capital Expenditures

ML18025B050
Person / Time
Site:	Browns Ferry, Sequoyah
Issue date:	08/22/1980
From:	Durall J, Mills L TENNESSEE VALLEY AUTHORITY
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8008270529
Download: ML18025B050 (46)

Text

TENNESSEE VALLEYAUTHORITY Fl NANCIAL STATEMENTS FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 1979 MOTICE THE ATTACHED FILES ARE OFFICIAL RECORDS OF THE DIVISION OF DOCUMENT CONTROL.

THEY HAVE BEEN CHARGED TO YOU FOR A LIMITED TIME PERIOD AND MUST BE RETURNED TO THE RECORDS FACILITY BRANCH 016.

PLEASE DO NOT SEND DOCUMENTS CHARGED OUT THROUGH THE MAIL. REMOVALOF ANY PAGE(S)

FROM DOCUMENT FOR REPRODUCTION, MUST BE REFERRED TO FILE PERSONNEL.

I t

I DEADLINE RETURN DATE RECORDS FACILITYBRANCH REIlUUTOIIyMCKET raI.E COPy 5o

2. 5$

Control@ 8 os~qaSg.g,'

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Date of DocumeItb,,-

'MM OIIYDOGKEI'ILE

I

/4

Mr. W. F. Willis, General Manager Tennessee Valley Authority Knoxville, Tennessee

Dear Mr. Willis:

The financial statements of the Tennessee Valley Authority for the years ended.

September 30, 1979 and. 1978, are presented.

on the following pages.

They are accompanied by a report thereon by Coopers 8c Lybrand., independent certified.

public accountants, and. by related schedules of details for the year ended.

September 30, 1979, as shown in the index below.

Exhibit or schedule Thee Financial statements Balance sheets Statements of operations Power program net income and retained, earnings Nonpower programs net expense and accumulated net expense Changes in financial position Notes to,financial statements III

~

~

~

~

IV 7

8 10 Report of independent certified public accountants

~

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15 Schedules containing details of Property, plant, and equipment Completed. plant t

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~

~

~

~

~

~

~

~

~

~

~

~

~

Construction and. investigations in progress, nuclear fuel, and. mine and. mill development cos ts

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Power expense Nonpower net expense Operating expenses of multiple-use facilities Administrative and. general expenses A

D 30 31 4o 44 Very truly yours, Willard. R. St nson Comptroller November 21, 1979

TENNESSEE VALLEYAUTHORITY (A CORPORATION WHOLLYOWNED BY THE U'NITED STATES OF AMERIC'A)

BALANCESHEETS SEPTEMBER 30, 1979 AND 1978 ASSETS Powex~r~o~~raIn All ro rams 1'979

~

1978 197o

- 197

('hcIusand.s )

PROPERTY',

PLANT, AND Eg!UIPMENT, substantially all at origi'n'a3. cost Completed. plant; schedule A

Multipurpose dams; note 1

Single-purpose dams Steam, production plants Nuclear production plants Other electric plant Other plant Less accumulated. depreciation and.

depletion; note 2 Completed. plant, net Construction and. investigations in progress; schedule B and. note '3 Nuclear fuel; schedule B

Less accumulated. amortization and. allowance for disposal of spent fuel; schedule B

and. note 2 Nuclear fuel, net 496,488 346,052 2,634,5II.9 888,350 2,071,199 l7,436,GATE 1 8~~<4

%~539~0<)%

\\

~5832~3tL8-631;102='95,407 72,869 2,534,622 8859993.

1,876,347 5,8I>$,23()

46 118 4 119 Wll )

4 586 550

,~5,%q

$ 1,120,750 346,052 2,634,519 888,350 2,071,199

~18 303 7,259,173

~2071 427 5 1%77%

~6 063~741 631,102 3.83 033 4K~M09

$.1,092,,715

'2,,869 2,534,,622 885,>99,1 1,876,,34'7 181,~715

>Mid.>25'9

,1

>~0,~20'7

~735 >05'2

~5.,

3

.Total property, plant, and.

equipment 10,819,531 9,098,714 11,699,556 9,926,,977 CURRENT ASSETS Cash Accounts and. loans receivable Inventories, principally at average cost Total current as. ets 1,902 423.,5V3 38,249 328,034 1,034,466 >> 725,785.

114,930 434,272 628~637 1,377,839 1.28,,432 336.,522 3,74,,087 839.,04,1 DEFERRED'HARGES Unamortized debt issue and reacquisition expense; note 2

Mine and. mill development costs:;

schedule B and. note 2

Total deferred. charges Total asse'ts 8,788 9,338 196 115

'76 488 204 903 85 826

$12, 058,900

$P,910,325 8,788 3.96,115 204 903 2

$13,082,298 9:,338 76.,48IS 85.,82>6

$10,851,,844 Notes 1 through 10 following the exhibi.ts are B.n:i.ntegral part of the fina,ncial statements.

+Deduct

EXHIBITI LIABILITIESAND CAPITALIZATION Power ro ram All ro rams (Thousands)

PROPRIETARY CAPlTAL Appropriation investment; note 4.

Congressional appropriations Transfers of property from other Federal agencies Less repayments to General Fund. of the U.S. Treasury; note 5

Appropriation investment Retained. earnings reinvested in the power program; exhibit II Accumulated. net expense of nonpower programs; exhibit III Total proprietary capital 2

644 j

7j 7 ~24 0

1, 7,191 4

0

~47 0

912, 28 932,132 1 5295 j631 1 j227 5762 2 208 259 2 159 894

$ 3.,384,043 glj3835721 57 352 353 7579 536 769 56 587 3,212,502 516 769',

31,029 2, 95,733 1,295,631 1,227,762 949 294+

867 375+

3,177,366 3,056,120 f 3,310,446 4 3,155,915 LONG-XZRM DEBT Principal; note 6 Less unamortized. discount; note 2

6,625,000 5,425,000 6 050 6,465 6j625 5000 6,050 5,425,000 6,465 Total long-term debt 6,618,950 5,418,535 6,618,950 5,418,535 CURRENT LIABILITIES Short-term debt; note 6 U.S. Treasury Federal Financing Bank Long-term debt due within one year Short-term debt Accounts payable Employees'ccrued.

leave Payrolls accrued Interest accrued 2,375,000 668,396 22,461 26,322 139 512 1,770,000 404,454 20,928 22,095 114 419 150,000 150,000 1 j925 5000 1j520 5000 300 000 100 000 150,000 1,925,000 2,375,000 702,248 375705 315517 139 512 150,000 1,520,000 100 000 1,770,000 430,358 35,888 26,524 114 419 Tota3. current liabilities 3,231,691 2,331,896 3,285,982 2,377,189 COMMITMENTS; note 3

Total liabilities and.

capitalization 41250585900

$95910,325

)1350825298

$1058515844

"1

TENNESSEE VALLEYAUTHORITY POWER PROGRAM NET INCOME AND RETAINED EARNINGS FOR THE YEARS ENDED SEI4TEM8ER 30, 1979 AND 1978 EXHIBIT I I Amount 8

Amoun OPERATING REVENUES Sales of electric energy Municipalities and. cooperatives Federal agencies Industries Electric utilities Interdivisional Revenue credit due customers; note 9 Total sales of electric energy Rents Discounts and. penalties Other miscellaneous revenues Total operating revenues OPERATING EXPENSES; schedule C

Production Fuel Other Transmission Customer accounts Demonstration of power use Administrative and general Payments in lieu of taxes Social security taxes Provision for depreciation Total operating expenses Operating income OTHER INCOME AND DEDUCTIONS Interest income

Other, net, Total other income and deductions Income before interest charges INTEREST CHARGES Interest on long-term debt Other interest expense Allowance for borrowed. funds used (construction and. nuclear fuel); note 2 Amortization of long-term debt discount and expense; note 2 Net interest charges

( Thousands )

$1,810,848 368,741 598,18o 4,722 12,813 16 00%

75,936,357 16,169,981 24,912,785 171,642 497,510 117 l11 275

~2, 32,30 23,483 lo8 4

2555 9

l,lo8,674 485,332 31,875 767 12,114 93,556 100,024 14,633 16o 573 22~275 8 649 341 74o 7 95M

~721

~

642,122 478,986 1795153 153,74%

50553 5

77,875,252 16,722,347 22,877,485 175,486 295,320 1179 5

$1,540,126 305 5805 455,957 3,897 6,523 OE 2,312,3 375023 100 2,350,13 428 127+

301 454,448 419,434 66,377 248,967>>

1 o36 232720 1,035,056 5o4,868 27,491 7o6 4,261 81,559 79,872 11,727 1o44 1115 7

454 147 NET INCOME Return on appropriation investment; note 5

Increase in retained earnings reinvested.

Retained earnings reinvested at beginning of period Retained. earnings reinvested at end of period.

136,737 68,868 67,869 1,227,762

$1,2955631 216,568 61,716 154,852 1,072,910

$1,2275762 Notes 1 through 10 following the exhibits are an integral part of the financial statements.

I6Deduct

I ~

TENNESSEE VALLEYAUTHORITY NONPOWER PROGRAMS NET EXPENSE AND ACCUMULATEDNET EXPENSE FOR THE YEARS ENDED SEPTEMBER 30, 1979 ANO 1978 EXHIBITIII REGIOHAL RESOURCES DEVELOPMENT Navigation operations System flood control operations Recreation development Tributary area development Regional water quality management F1sheries and wildlife resources development Preliminary surveys and engineering Environmental education Valley agricultural development Forest resources development Strip mine reclamation demonstrations Interagency health serv1ces demonstrations Regional economic stud1es Townlift community improvement Human resources development Minerals resources,prospects Special opportunities counties program Minority economic development Local flood damage prevention operations Environmental quality prospects Net expense of regional resources development FERTILIZER DEVELOPMENT; note 2

~

Research and development Fertilizer introduction Fertilizer 1ndustry demonstrations Farm test demonstrations outside the Valley Net expense of fertilizer introduction Developmental production Cost of products distributed General expenses Loss on retirements of manufactur1ng plant and equipment, net Gain on sale of phosphate

reserves, net Administrative and general Other Total general expenses Total production expense Less transfers and sales of products Transfers to other TVA programs, at market prices Direct sales Total transfers and sales Net expense of developmental production Net expense of fertilizer development NATIONAL EHERGY DEMONSTRATIONS

~ BETWEEN THE LAKES OPERATIONS VALLEY MAPPING AND REMOTE SENSING OTHER EXPENSE, HET NET EXPENSE; schedule D

Accumulated net expense at beginning of period Accumulated net expense at end. of period

~17 (Thou 4

7,709 6,016 4,747 3,209 1,472 17459 343 493 2,720 2,247 2,o41 606 775 750 764 319 484 677 8,869

~06 46 206 11 065 23737 1 126 3333 28 716 417 7186 226 33017 t 21,687

~11 21 838

~30 23 268

~46 8

5 547 1 188 81,919 867 375 4e49,294

~178 ands) 7,3o6 5,67o 4,531 2,925 1,290 1,136 3o6 374 23014 2,334 3,677 324 726 793 679 327 1,250ill 7,014 48o 43 267

~10 8 3 2,845

~000 26 663 139 10756 582 4o 27 707 20,978 21 313

~~3 21 287 5 509 972 72,415 794 96O

$867,375 Notes 1 through 10 following the exhibits are an integral part of the financial statements.

"Deduct

TENNESSEE VALLEY AUTHORITY'HANGES IN FINANCIALPOSITION fOR THE YEARS ENDEO SEPTEMBER 30, 1979 ANID 197S

ai EXHIBIl IV PAGNE 1 SOURCE OF FUNDS Program sources Net power income; exhibit II Items not requiring funds; note a Funds f'rom power operations Sale of power facilities Funds from power program',

nc>te b

%36)737

2. 66<!

2~07

', 11~i 216,568 1~~18 136,'737 207 113 2.'I.6,568

,~i~8821>>

1!')7,7W7:

~1'~c18 Power pro~ram AD~r~orams 1979 12~7 1~7'1<~8 (Thousands)

Net expense of nonpower progrcuns; exhibit III Add items not requiring fluids;, ncite a Funds used in nonpower operations Sale of nonpower facilities Funds used in nonpower programs 819919>>

~106 72 9 813>>

62

~72 51>>

72,415>>'>>

342 t)~~3I&1>>

Debt sources Long-term bonds Issues Redemptions Short-term notes Issues Redemptions Total debt souxces 1,!)009000 1009000+

79795,000

~1~05 000'00,000 1,500,000 100,000<-

8<e,ceo 4,280,000 7,795,i000 4,280,000 Other sources Congressional appropriations Property transfers Total other sources 1500 320 261

')81 154,531 138,510

~28 0~8 Total source of funds

+~0~12 787

$1~5IK~499 I9 094 958 94 579 149 DISPOSITION OF HJNDS Expended f'r plant and equipment, excluding allowance for borrowed fund>)

Cash Accounts receivable Inventories Less other current liabilities-(excluding short-term debt) 4,456 3,620

~17~90 377

.'l~~!)~7002 61,716 20 ceo M!1 711>

H.9,627 0

21~9 57 399395 16 399iI11 36,347>>

26,921>>

93,538 1099453 146 667 7~~72>30>>

$1,797,320

$1,460,951 6,874

~%15+1&29

,2 '21 68,868 1199627 0

1199057 13, i502>>

97,750 303 734 3~~50+0

$1,860,624

$1,527,033 5,766 1~52l~09Li5 61,716 2o o14 M'i~1730 399395 3~9. 11 15,481>>

mWa 14 456 7ib91"

>>Deduct Total disposition of funds fz,o12,'787

$1,5ce,499

$2,094,958

$1.,575,115 8

TENNESSEE'VALLEYAUTHORITY CHANGES IN FINANCIALPOSITION FOR THE YEARS ENDED SEPTEMBER 30, 1979,AND 1978 EXHIBIT IV PAGE 2 NOTES:

a.

Items not requiring funds:

Provision for depreciation Provision f'r depletion Provision f'r depreciation of'ining equipment Amortization of nuclear fuel Net loss on retirements and.

disposals of property, plant, and. equipment Amortization of long-term debt discount and. expense Allowance fqr borrowed funds used.

(construction and nuclear fuel) 3,618 47,708 385203 75959 127 995 1,036 153,749II 248,967x 346 32 8 67,707 8 58,821+

$9,106

$8,232I Power Non ower 1979 197 1979 197 (Thousands)

$160,573

$3.50,447

@,760

@,200 603 333 b.

Net power proceeds (see note 6) may be derived. as f'ollows:

Year ended Se tember 30 1979 197 (Thousands)

Funds from power program Add. back interest charges Net power proceeds

$207,113 658,139

$865,252

$159,918 485 811

$645,729 Notes 1 through 10 following the exhibits are an integral part of the financial statements.

+Deduct

TENNESSEE VALLEYAU II HORITY NOTES TO FINANCIALSTATEMEIhITS 1.

Allocation of cost of multjiuur~os~e~ro'ects--Section 14 of the TVA Act requires TVA's Board of Directors to allocate the cost of completed multipurpose 1>rojects> 'subjeelt t'o the 'approval of the Prlsident of. the United States.

The cost of facilities installed exclu. ively for a single purpose is assigned directly to that purpose; the cost of multiple-use facilities is alloc'ated aon( the various purposes

'ser'ved'.'he total investment of

$ 1 120>750>000 in comple'ted multipurpose dams al't September 30>

1979>

is classified as follows:

Direct; Xnvestment Power Navigation Flood cont,rol Recreation

$319,339 153,088 61>595 1,324 137',281 159>373 66>073 290>369 220>968 67,397

$ 177> 149 496>488 Tributary area development 19 45,509 45 528 Total

',>535>~365

$585.,385

$ 1>120~750 2.

Summar of si nificant account~in LF>olicies--Power accounts are kept in accordance with the uniform system prescribed by the Federal Energy I?egc>lat;ory Commissibn.

'lant additions and retirements--Additions to plant are recorded at, cost, which includes material>

labor, overhead, and allowance for funds used which is applicable 'to 'major generating facilities.

The costs of generation during preliminary operations prior to c'omm'erc'ial'cceptance including amortization of nuclear fuel -less credit for the fair value of energy generated are also:included in the recorded costs of steam and nuclear generating plants.

Except for chemical plant, plant retirements (includ!ing'rigilal 'c'ost and removal cost less salvage) are charged against appropriate accumulated depreciation accounts.

Because of the experimental nature of fertilizer develo]pment, losses on early retirement of chemical plant are included in current year operations.

Depreciation and depletion--Straight-liine depreciation is provided for substantially oh a'ompo'site basis.

Rates

'of depreciation

including decommissionin

~

costs of, nuclear units are

'der'ived from engineering studies oi useful iiia and are resieued each >Intr.

hsptetion oi coal land ani land rights and phosphate land and mineral rights:is provided on a unit of production basis.

Allowance for funds used--The practice of capitalizing'n'llowance for funds used during construction and during. the fabrication of nuclear

.fue1.s in the power program was modified in the fourth 'qua'rter of fiscal year 1979 '(retroactive to October 1,

1978) in accordance with the TVA Board of Directora criteria for establishing wholesale power rates.

The effect of this change was to make the allowance aPplicable 'only to -.

the construction of major generating facilities and limit the'mount to the sum of depreciation and other current period noncash cha!rges 'ess the amount of the repayment of the appropriation

.investment.

as prescribed in section 15d of t]he TVA Act.

The method used provides for the calculation each month of the interest on the most recent de1bt issues that are equivalen't t'o the Average balance of construction wor'k in progress for major generating facilities subject to the limitation described, The limitation reduced net income and the amount of allowance for funds used during construction that would have been other<I<ise determined for fiscal year 1979 by

$ 224>955,000 and reduced the equivalent average capitallizalti<In rate for fiscal year 1979 from 8.62 percenl. to 3.95 percent which c'omp'are's w'ith'.57 percent for fiscal year 1978e Repairs and maintenance--The cost; of current repairs a'nd 'minbr 'replacements is charge'd t'o a~pprbpr.iate operating expense and cleari:ng accounts, and the cost of renewa1s and'betterments is capitalized.

Nuclear fuel amortization--The amortization of nuclear ~fuel i's p]rovided on a unit of FIroduction'asis Rates are established to amortize the costs over the useful ~lif'e.

Mine and mill development costs-"Deferred mine and mill development costs are ass:igned to coal'nVentory and nucl'ear fuel on a unit o.f production basis determined'in relation to estimated ore reserves.

10

TENNESSEE YALLEYAUTHORITY NOl ES'TO FINANCIALSTATEMENTS~ONTINUED Operating revenues and energy costs--Revenues from the sale of electric energy are recorded only when billed.

An adjustment addendum providing for monthly billing charges to reflect increases or decreases in fuel and purchased power costs was terminated effective in January 1979.

These costs are now included for consideration in the quarterly rate reviews.

Borrowing expenses--Issue and reacquisition expenses and discounts on power borrowings from the public are amortized on a straight-line basis over the term of the related securities.

Issue expenses on power borrowings from the Federal Financing Bank are amortized over a five-year period except that amounts under

$6,000 are expensed as incurred.

Research and development--Research and development costs are expensed as incurred (approximately

$40,735,000 in 1979 and

$31,868,000 in 1978) except for those costs which relate to specific power program capital projects.

Sales of fertilizer--Sales of fertilizer materials are not made on a commercial basis, but are made to organizations collaborating in an experimental and educational program aimed at improving the manufacture, distribution, and use of fertilizers.

3.

Construction ro ects commitments and rental e

enses--The construction budgets for fiscal year 1980 are

$2,000,587,000 for power projects and

$71,067,000 for multipurpose and nonpower projects.

Substantial commitments have been incurred for these projects.

The total rentals charged to power operating expenses and other operating clearing accounts for the years ending September 30, 1979 and

1978, amounted to approximately

$20,128,350 and

$20,484,000, respectively.

At September 30,

1979, the aggregate minimum gross rental commitments of TVA under all noncancelable leases for the periods shown are as follows:

1980,

$18,246,000;

1981,

$ 15,393,000;

1982,

$ 13,955,000;

1983,

$ 12,967,000;

1984,

$ 12,554,000; and thereafter,

$44,256,000.

Minimum gross rental commitments include rentals paid under agreements with the City of Memphis, Tennessee, which provide that (1)

TVA sells to the City all the power and energy requirements of its electric distribution system, and (2) the City leases to TVA the Thomas H. Allen steam-electric generating plant with an installed capacity of 990,000 kilowatts.

Each agreement is for a term of 20 years, b'eginning January 1,

1965.

The lease agreement provides for annual rental payments of $6,900,000 and grants TVA an option to buy the plant for $2,000,000 at the end of the lease term.

4.

A ro riation investment Changes in appropriation investment during the years ended September 30,1979 and'978, were as follows:

Power ro ram

~17 1978 (Thousands)

All ro rams 1979 197 Congressional appropriations, net Transfers of property from other Federal agencies 174 496 261 158~

322 4193'0 154,531 765 155,296 138,510 528 139,038 less repayments to General Fund of the U.S. Treasury Increase or decrease+

for the period

Balance, beginning of period

Balance, end of period 3'9Deduct 20 000 19>50439 932 132

$912,628 20 000 201158""

952 290

$932,132 20 000 135,296 2 695 733

$2,831,029 20 014 119,024 2,576,709

$2,695,733 An appropriation of

$ 148,677,000 was made by Public Iaw No. 96-69, approved September 25, 1979, for the fiscal year beginning October 1,

1979.

5.

Pa ents to the U.S. Treasu Section 15d of the TVA Act requires the payment from net power proceeds of a return on the net appropriation investment in power facilities plus repayments of such investment, beginning with fiscal year 1961.

The amount of return payable during each year is based on the appropriation investment as of the beginning of that year and the computed average interest rate payable by the U.S. Treasury on its total marketable public obligations as of the same date.

The repayment schedule calls for payment of not less than

$ 10 million for each of the first five years (1961-1965),

$ 15 million for each of the next five years (1966-1970),

and

$20 million for each year thereafter until a total of

$ 1 billion shall.

have been repaid.

The payments required by Section 15d may be deferred under certain circumstances for not more than two years.

11

TENNESSEE VALLEYAUTHORITY NOTES TO FINANCIALSTATEMENTSCONTINUED s

Required payments have been made as fol,iowa:

Thousands Total 964>904

$290>000

$ 1> 254 7904 Total to September 30, 1978 Year ended September 30, 1979'Thousands) 68 868 20 000

,88 868

~t 8(~03~3772

',731()~0((0 31 343 772 por fiscal year 1980 the required payments will he~>7,,4. 3,600 as a

return on the 'ppropriation investment at the computed averag<e interest rate of 8.592 percent and

$20>000>000 as a repayment, a total of $98,413,000.

In addition to the payments from net power proceeds,'132

<bf honpowqr proceeds was paid to the 'U.S.

Treasury in fiscal year 1979 under the provisions of Secition 2d ok the TVA Act.

Thi.s brought the total payments from nonpower proceeds to approximately

$41,710,000.

Prior to

1961, under then existing legislation, TVA paid to the Treasury

$ 185,059)000 of power proceeds.

In addition to the repaym< nts indicated in Exhibit I,

$65,072,000 of bonds, sold to the Treasury and Reconstruction Finance Corporation in f'iscal years 1939-1941 have been fully repaid from power proceeds.

Section 26 of the TVA Act provides for annual payments to the Treasury of any pow4tr !Ir n'onp'ower proceeds not needed for th<e operation of dams and reservoirs, the conduct of the power pro'graiin>

and the manufacture and distribution of fertilizers.

6.'orrowin authorit --Section 15d of the TVA Act authorizes TVA to issue

bonds, notes, and other evidences of indebtedness up to a total of

$ 15 billionl (effe(l:tike October 31,

1979, increased to'30 billion) outstanding at any one tim<e to assist in financing its power program.

Debt service on these obligations, which is payable solely from TVA's net power proceeds>

has precedence over the paym<ent to the U.S.

Treasury described in note 5.

Issue."

outstanding on September 30,

1979, consist of the following:

Long-term debt 4.40K 1960 4-5/87(, 1961 4-1/2T, 1962 5.70%

1967 6-3/8%%d 1967 8-1/4%%d 1969 7.30K 1971.

7%

1972 7.35%

1972 7.35K 1972 7.40K 1972 7.357(,

1973 7.35X 1973 7-3/4X, 1973 7.70%%d 1973 8.05K 1974 8.05%

1975 8.70%%d 1975 8.35K 1975 8.47X 1975 8.485K 1975 8.175%%d 1976 7.97<(,

1976 7.625%%d 1976 7.9757(,

1977 7.935%%d 1977 8%

1977 8.375% 1978 9.296%%d 1979 9s155~

1979 9s1957(,

1979 Total Series A,

Series A,

Series A,

Series A,

Series B,

Series B,

Series B,

Series A,

Series B,

Series C,

Series D,

Series A,

Series B,

Series C,

Series D,

Series A,

Series A,

Series B,

Series C,

Series D,

Series E,

Series A,

Series B,

Series C,

Series A,

Series B,

Series C,

Series A,

Series A,

Series B,

Series C,

long-term dUe due due dUe du(e due du<a dUe du(m dUe due due dues due due dUe due due due due due due due

due, dUe due.

due dUe due due due deb November 15, 1985 July 1, 1986 February 1,

1987 May 15, 1992 November 1,

1992 October 15, 1994 October 1,

1996 January 1,

1997 May 1, 1997 July 1, 1997 October 1,

1997 Jhnua<ry 1,

1998 April. 1, 1998 July 1, 1998 October 1, 1998 Ja(nuary 1,

1999 Ja<nuary 31, 1990 (FPB)

Ma<rch. 31, 2<000 (PFB)

Ma<y 31, 1988 (FFB)

July 31, 2000 (FFB)

October 31, 2000 (FFB)

February 28, 2001 (FFB)

November 30, 2001 (FFB)

January,'31, 2002 (FFB)

February 28> 2002 (FFB)

May 31, 200a?

(FFB)

October 31, 2002 (FFB)

January 31, 2003 (FFB)

February 28>

1989 (FFB)

May 31, 1987 (FFB)

August 31, 2004 (FPB) t 50,000<

50,000<

45,000 70,000 60,000 100,000 150,000 150,000 150,000 150,000 150,000 1.00,000 150,000 150>000 100,000 100>000 200,000 100,000 200,000 200,000 300,000 300,000 400,000 200,000 300,000 400,000 400,000 400,000 500,000 500,000 5<00 000 Short-term debt U.S. Treasury Federal Pinancing Bank (PFB)

Long"term debt due within on<e year Total short"term debt 12 150,000 1>925>000 30~0000 2~37~5000

$9,000,000

TENNESSEE VALLEYAUTHORITY NOtES'O FINANCIALSTATEMENTSCONTINUED During fiscal years 1979 and 1978, the maximum amount of short-term borrowings outstanding, exclusive of long-term debt due within one year, was

$2,166,000,000 and

$ 1,612,000,000, respectively, and the average amount (and weighted average interest rates) of such borrowings was approximately

$ 1,920,000,000 (9.3 percent) and

$ 1,001,000,000 (6.6 percent),

respectively.

An additional

$400 million bond issue, 10.545 percent 1979 Series D, due October 31, 2004, was sold to the Federal Financing Bank in October 1979.

employees.

The cost of currently accruing benefits is funded currently.

The cost of the plan to TVA was

$48,823,000 in 1979 and

$38,060,000 in 1978, including amortization of unfunded prior service costs over

- the average future careers of active members.

The actuarially computed pension fund assets as of September 30,

1978, the latest actuarial valuation date, exceeded the actuarially computed value of vested benefits of the plan.

8.

haiti ationSiz citizens'uits were filed in sir different district'. courts

<<nder the Clean Air Act, alleging that the sulfur dioxide emissions from 10 of TVA's coal-fired steam plants and the particulate emissions from 7 coal-fired plants violate the emission standards set by the states.

Plaintiffs include the States of Kentucky and Alabama and the United States of America at the request of the Environmental Protection Agency.

Five of the cases were consolidated in the United States District Court for the Middle District of Tennessee; the other was filed in the United States District Court for the IIorthern District of Alabama.

Plaintiffs asked that the courts order TVA to comply with the applicable emission standards as expeditiously as possible.

In addition, the State of Alabama specifically asked the court to restrict operation of Widows Creek and Colbert Steam Plants until final compliance is achieved and assess a

State penalty of $10,000 per day per violation.

A proposed settlement agreement was approved in December 1978'and presented to the courts for approval.

This proposed agreement specifies compliance schedules to control both sulfur dioxide and particulate emissions at TVA steam plants and provides for stipulated daily penalties if TVA does not meet these schedules.

The agreement waives any TVA liability for penalties and fines for past violations.

The reference in the agreement as originally drafted to a Cumberland Steam Plant scrubber project and activities in lieu of penalties has been deleted, based on new air quality information.

The Alabama district court has approved the agreement.

While the agreement as submitted to the courts is in full satisfaction of all State or Federal civil penalties, TVA is still subject by law to the mandatory noncompliance penalties under section 120 of the Clean Air Act Amendments of 1977 which will be levied separate and apart from this action on all sources not in compliance after July 1, 1979.

Several of TVA's steam plants were not in compliance on that date.

The amount of these mandatory noncompliance penalties is based on the economic value of noncompliance to the owner, less any amounts actually expended by the source toward achieving compliance.

The amount of these payments cannot be determined until EPA issues guidelines and regulations.

It is TVA's position that under the act no penalties are due, based in part on the act's exemption from penalties for sources under consent decrees.

A residential electric consumer of the Memphis Light, Gas, and Water Division (Memphis) filed a class action suit against it and its governing Board in the Chancery Court of Shelby

County, Tennessee, on June 9,

1978.

Plaintiff claimed that the operation of the fuel cost and purchased power automatic adjustment formula then contained in the TVA resale rate schedule applied to him and his class violates the Fourteenth Amendment's due process clause and the Tennessee statutes which require rate changes by Memphis to receive prior approval by the Memphis City Council.

In addition to declaratory and injunctive relief, plaintiff seeks a

judgment for over

$110 million allegedly collected by Memphis under the automatic adjustment formula since 1974.

The case was removed to Federal

court, TVA was jointed as a party, and

'plaintiff amended his complaint to charge TVA with a violation of the Fifth Amendment's due process clause on the same facts.

The court granted judgment on the pleadings for TVA and Memphis, and the case is now pending an appeal before the United States Court of Appeals for the Sixth Circuit.

In TVA's opinion the

~ judgment should be affirmed.

The injunction against the Tellico project, which was involved in Tennessee Valle Authorit v. Hill in the United States Supreme Court was formally dissolved by the district court following congressional passage and the President's approval of an act exempting the project from "the provisions of 16 U.S.C. chapter 35 or any other lawan Following the October 27, 1978, oral opinion by the court in TVA's suit against Westinghouse Electric Corporation, which found that Westinghouse had not carried its burden of proof on its defense under UCC g 2-615 or the uranium fuel contracts'orce majeure

clauses, the case was settled by agreement.

The agreement included the withdrawal of TVA's appeal to the Fourth Circuit, discussed last year, and resolution of all of both parties'utstanding claims under the fuel contracts and other related contracts.

Under the terms of the settlement TVA received

cash, uranium properties, improvements in fuel fabrication contracts, and equipment and services having a value to TVA of about

$ 130 million.

Westinghouse also will deliver to TVA 560,000 pounds of uranium at the

$8.24 price specified in the Watts Bar nuclear fuel contract.

TENNESSEE VALLEYAUTHORI'TY NOTES TO FINANCIALSTATEIVIENTSCONTINuED On November 18,

1977, TVA filed antitrust suits

against, 10~

fc>reign uranimta producers and 3 domestic firms.

The complaints were filed in U.S. District Courts in Chattanooga,

Denver, and New Vork City,'nd alleged unlawful agreements among the defendants to fix uranium prices and allocate world uranium markets, which resulted in damages to TVA in an amount, which cannot yet be determined.

The cases werh censblidated in Chicago for pretrial purposes by the Judicial Panel on. Multidistrict Litigation.

The consolidated proceeding is being coordinated with the SIest~in house v.

Rio Alum Lt~d.

et al.

anti. trust litigation currently pending in Chicago.

Discovery is now underway.

Defau'its have been entered by the'lerk'against certain of the foreign defendants who did nots appear, including Rio Algom L'td.

(Rio',I.

Rio has sued TVA in Canada for $2.2 billion for alleged breach of the same cohtrAct'which is.involved in TVA'0 suit'agdinst

Rio, and which TVA has asked the court to find void.

16 TVA's opinion, there is little likel'.iho'od 'of 'a recovery by Rio.

In a suit brought by the Attorney General of Alabama, the United States Dis'trict Court for the Northern District of Alabama has ruled that Section 8(a) of the TVA Act requires TVA to maintain its "hehdqi'>arters"-

in the immediate vicinity of Muscle

Shoals, Alabama.

TVA has 'appeal'ed

'the decision, and ~thd court, has

stayed, pending the appeal, an injunction which requires TVA to relocate its "headquarters" f'rom Knhxvl.lie,,

Tennessee, to Muscle Shoals.

TVA expects the llInited States Court of Appeals for the Fifth Circuit to reverse the district court's order.

9.

Revenue credit due customers--On August 24, 1979, the TVA Board of Directors determined thlat thence VouId be an excess of power revenues in the amount of

$ 163 million for fiscal year 1979 and that

. uch excess should be credited to customers in calculating monthly power'ills'uring the first

. ix months:

of. fiscal year 1980.

10.

Subse uent event--Effective October 31,

1979, TVA sold and leased back all of its nuclear fuel for approximately

$490 million.

Rental payments will be charged to operations in amounts equal

'to the cost of the fuel burned plus finance charges.

.COOPERS 6

LYBRAND CCRTIFIKO PUBLIC ACCOUNTANTS A MEMBCR FIRM OF COOPERS IL LTBRANO tINTCRNATIONAL)

To the Board of Directors of Tennessee Valley Authority:

We have examined the financial statements of TENNESSEE VALLEY AUTHORITY at September 30, 1979 and 1978 and for the years then ended which are indexed on page 1 herein.

Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

fairly:

In our opinion, Exhibits I, II, III, and IV present (1) the financial position of the Authority at September 30, 1979 and 1978, and the results of operations and changes in financial position of its several programs for the years then ended; and (2) the financial position of the power program of the Authority at September 30, 1979 and 1978, and the results of operations and changes in financial position of that program for the years then ended, all in conformity with generally accepted accounting principles consistently applied during the period except for the change, with which we concur, in the method of determining the allowance for funds used during construction as described in Note 2 to the financial statements.

The supplemental information appearing in Schedules A

to P, inclusive, which has been subjected to audit procedures applied in the examination of the basic financial statements, is in our opinion, fairly stated in all material respects in relation to the basic financial statements taken as a whole.

New York, November 21, 1979.

15

TENNESSEE VALLEYAUTHORITY COMPLKTED PLANT SEPTEMBER 30, 1979 SCHEDULE A PAGE 1

Power Multipurpose dams System allocation; page 23 Project allocations; page 25 Single-purpose dams; page 27 Steam production plants; page 27 Nuclear production plants; page 28 Other electric plant; page 28 Assets 436,340,498 60,147,524 346,051,924 2,634,519,007 888,350>467 2 071 198 827 Accumulated depreciation and. depletion 186,981,467 11,190,543 33,232,976 1>009>713>335 108,484,283 547 911 472 Total power Navi;gation Multipurpose dams System allocation; page 23 Project allocations; page 25 Single-purpose navigation plant; page 29 Total navigation 229,545,402 60,823,882 7,096,629 297,465,913 61,273,054 7,228,513 936,186 69,437,753 6>4'36>608>247 1 >897> 514'>076 Flood. control Multipurpose dams System allocation; page 23 Project allocations; page 25 Single-purpose flood. control plant; page 29 Total flood. control Recreation and. environmental education Multipurpose dams Project allocations; page 25 Land Between The Lakes; page 29 Other recreation plant; page 29 Total recreation and environmental education Tributary area development Multipurpose dams

'roject allocations; page 25 Chemical; page 29

..General; page 29 Total 180>075>911 40,892,170 2,065,257 223,033,338 67>396,625 60,424,002 3,139,404 130,960,031 45,527,747 68,666,200 56 911 964

$7,259>173,440 41,746,994 1,394,954 190>213 43,332,161 1,976,787 5,048,965 399>129 7,424,881 1,430,492 25,124,082 27 163 851

$2>071>427>296 Total completed plant

'ultipurpose dams System allocation Project allocations Single-purpose dams Steam production plants Nuclear production plants Other electric plant Other plant 845,961,811 274 787 48 1,120,7 9,759 346,051,924 2>634>519>007 888,350,467 2,071,198,827 198 303 456 290,001,515 23 221 28 313>222>80 33,232,976 1 009 713 335 108,484,283 547,911,472 58 862 426 Total 47> 259> 173 > 440

$2 >071 >427>296 19

TENNESSEE VALLEYAUTHORI1 Y MULTIPURPOSE DAMS SYSTEM ALLOCATION SEPTEMBER 30, 1979 Assets Multiple-use facilities Reservoir land and. landrlghts Highway, railroad, and other relocations and removals Reservoir clearing Dam structure, excluding power intake section Roadways Village and reservoir facilities Other structures and improvements Total Deduct direct flood control invest3nent>

contra below Add nonoverf'low sections to replace other sections, contra below Power intake section Lock section Total multiple-use facilities al3>seated beIIow; note 1, page lo Kentuc~

f 14,841,845 27,434,2611 6,915>,483

'7>555,500 276,832 mo',mal 16,532>000 Pickw!Lck f 3>000,536 1,915 >648 l>509>836 6oo6,369 33 >93'3 193,824

~68 012 13,3 3,158 788,en

'IIilson 684,4'>7 13'6,355 95,1,4:36 12,6M,298 2', lll6,796 184,1;30 WeeXer-4 4.333 2 le 2, 113,711 3,61;3,759.

8,384,889 9o:L,41o 1,323,824 2>890>000 210 000 550>ow 3 >9M>M0 830>oc50 380~0oo 125~000,,

2oO ooo 67~1763 348 13>485~158 21 >714 Ool, 22-,147,845 Navigation facilities Lock and appurtenances Channel improvements Deduct nonoverflow section tx> replace lock section, contra above Total before allocation of mu.'Ltiple-use facilitie:s Add allocation of total, mult;iple-use f'acf.lities shown above; note 1, page 10 Total navigation facilities after allocation 10,082,252 6>010,874 28,683,675 21>727>97'5 210~000

~80 OC6 125,000,,

200~0CO cl~~72~252

~5630&77 22! 555575 21~527~I'5 Flood control f'acilities Reservoir land and landright,s Add direct flood contxol investment, contra above Total before allocation of mu.'Ltiple-use facilitie:s Add allocation of total. multiple-use facilit!Les shown above; note 1,, page 10 Total f'lood control facilities af'ter al "Location 16~ ooo

~88 ooo 15~5365F000 778~0cx)

Poweracilities Powerhouse, including intake section Turbines and generators Accessory electric equipment Other power plant equipment Total Deduct nonoverflow section to replace power intake section; contra above Total before allocation of'ultiple-use facilitie:

Add allocation of total multiple-u: e facilities shown above; note 1> page 10 10>773>027 10 2087,131 2,8 Ci~ooo 19958 909,,

9,444>110 11,957,58."L 1 >642>785 421 18;Z'3,'4',K3 22 915~ff3 21,360>779 27,931,263

~0()~OM 52~511~72%

18,018,614

'1)036>050~

2,527,691 46'~883 M2,008,238

~80 ooo

'I11218~238 Total power facilities after allocation Total 8113.,531~509 3~42 819~69'i f202 784 400

~4894 058 Accumulated depreciation 8~30,514~02;3,'j~>1 242~57ll

ll4 856 810

@99773 22ll 20

Otate avil1e c~htakaaat Watt Bar Fort Lou6oun

$ 3>711,612 3,867,303 2,436,598 5,146,272 366,o29 1,071,413 8

14 17,,

21 f 4,49o,643 2,7o4,136 971,651 8,242,856 165,767 332,718 10 17,892,87 1>107,000 4 5>012>990 4,977,205 953>785 3,963,969 70,280 188,159 6 126 1,1 2>51 1>952,000

$ 4>123,106 5, ill>630 560,341 8,816,48o 19,7 5,803 786,ooo 780> 000 440 coo 18,628,421 1>470,000

~7000 19 045 874 614,ooo 565 OCO 15 369,514 1,610 000

~40 000 21,509 803 17,518,721 4,735,831 3,161>200 5,709,247 44o ooo 17 078 721 3

5 831 6

ooo 4o ooo

~25 200 ~72 7

~110 Coo 107 000 I 902 Coo 86 oco

~152 Coo 7

000 5,639,163 7,633,141 750,455 16 1,316,275 8o ooo 13 53 275 6,297,853 7,,614,5o5 1,498,998 412 168 15,823,52 1 4 0 000

~1'53 52 4,961,629 7,934,o88 1,065;470 614 000 13 852 W3 6,266,978 6,761,863 l>llo>574 o

1,703,122 1 610 000

~13 3 122

~49 243 447 838 452 229 33 770 197 840 158 372

~15 387 567

~15 682 1 8

~13 402 786

~14 8~08 0+3 21

Norris f 6,8oo,7oo 4,3o8,463 1,561,458 lo,847,235 266>691 86,395 2,

9, 72 5,5o6,coo

- Hiwassee

$ 1,678,482 1,191,433 394,6ol 9,376,953 246,236 151,406 24 428 13>2

>539 1,356,000 Cherokee f 4,498,971 5>519>525 575>359 13>205,027 31,728 172,o.g

~8~0)jo Chatuge 964,833 2>693,19c!

194,329 3,o88,68:.

38,234 2,499

.1$$ ~081 7>178, 50 537>000 18,903,472 11,928,539 21>463>758 6,"641,850 1,318,284 06 000 ~1'>6 000 ~ 46'~(X)0

~ 000 2

28

~17 000 ~&~I)0 537 ~OOCI 2>221>666 2,122,44o 486,468 246 4 2 5>077>02 2 574 106 5,316,089 670,'393 4=~40 3>177,346 5,845,6lI1 673,569

~> 28 10', 19)&13 511>634 1,020 )530

.'5,077 02

~995,99) 10 > 19)5~5973

~l'W)003

$30>804>782 ~ >279>830 435 >127,8i1

@,~022,) 853

$ 9,678,506

$ 9 555,612

~11~276~&0

$~9993,;413

'22

SCHEDULE A PAGE 2 As ts Notte Fontana South Holston

~Wotan

~oon las Boone Total system Channel aU.ocation Accumulateh ts5lrovenents dans d~e reetatton 413,407 1,344,854 2325107 352055913 197,851 25822

~6

~5,

$92,719 623,ooo

$ >>625,350 9,0173018 l,o33,436 45,779,373 606,244 515497

~266 133795903 7,623,ooo 25~63%2~

15 4,950 5000

$ 2,424,639 3,745,948 892,864 1754115137 211,319 50,413 860~

$ 4,598,632 6,369,316 385,808 lo,757,436 341,593 12o,852 88 44o

$ 6,787,030 8$ 107$ 311 574,9oo 16,912,546.

82,469 114,133 23, 3,077 33557535 1

3,045,000 7,057,000

$ 2 118,605 2,724,632 575,423 6,585,43o 24,164 745116

~12 j

$91 $7P5 110,000

$ 72,109,053 93$ 281$ 941 24,333,174 217,886,365 6,237,309 6,197,447

~1~41

'L4

$35,787,023 55$ 439$ 000 88$ 140$ 107 2,952,527 2,841,262

~80 101,992, 95 1153992333 1$ 160$ 000 4,869,719 53,756,903 20,682,415 20,418,077 26,518,581 13,541 745, 13,804,ooo 3 650 coo

$397 802 023 5,833,951 1 468 369

$ 97,895 682 28,159,081

~28 15 C81

$ 97,629,775 28,159,o81

~60 000 122,138,856 107 406 546 229 545,4o2

$ 30,339,248 55970,341

~4468 36 34,841,22o 26 431 834 61,273,o54 62 000 62 000 4

0 000 04 000 ~07 Cpp 110 Cop

~50 000 3 0 5 000 7 o57 000 llP coo 1,318,284

~4000 5

$ 757 $2 ll 399,333 123 318 627 3O 347 661

~180 075 11

~41 746 4

6o7,o75 1,233,030 185,8oo

23157, 22157 l18 5,672,728 6,704 930

>>1413937 7 4 4 2,779,412 1,791,814 369,336 2

427 1

$057,0 9 5,199 9

~~1057 0 5 199 989 4,922,424 2,370,493 764,185 74o6

~ 31513

~831 138 4,734,010 5,887,166 689,623 11 224 11$ 22,023 11 822 023 4,742 967 4,961,615 9o7,486 11,20, 9o 1 16o ooo

~10 0 l71~90 114,705,521 138,209,410 20,794,209 2 3$ 0 7$

1 So4 ooo

2923, 45,893,994 82,696,125 16,900,826 6 20~8286 99,231 15$

52 R 437

$75,436,952

$30,832,404

$31,894,215

$45 397 604

$23 696 635

$28 159 081

~167 076 8 0

~436 34O 4

$845 961 811 41 116 187

~186 81 467

~+9 745

@55442 595

~8418 799

$ 8 156 451

~)3 4Q) ppl

~pygmy 497

~g9y~ 34

@$0~001~515

TENNESSEE VALLEYAUTIHOIRITY MULTIPURPOSE DAMS PROJECT ALLOCATIONS SEPTEMBER 30, 1979 Total multiple-use facilities> allocate<1 below; note 1, page 10 Navigation facilities Lock and appurtenances Channel improvements Deduct nonoverflow section to replace lock section, contra above Total before allocation of multiple-use facilities Add allocation of total multiple-use facilities shown above; note Total navigation facilities after a11ocation Flood control facilities Reservoir land and 1andrights Structures and improvements Dam structures and waterways Reservoir facilities Channel improvements Total before allocation of multiple-use facilities Add allocation of total multiple-use facilities shown above; note Total flood control facilities after allocation Tributary area development facilities Intake for municipal water supply Add allocatiori of total multiple-use faci:Lities shown above;, note Less reimbursement by Beech 'River Natershed Develop<nent Authority Total tributary area development fac:Llities after aU.ocation and. reimbursements Recreation facilities Public-use areas Add allocation of total multiple-uee feei:Lities shown above; I1ot

c'ontra below Meltoh Hill

$ 3,.4CI7,626 2>667,366 9o4,168 2,825,723 419,618, 144,882 1~18~+

11>559,340 2.138,725

!L>120>000 460,000

$11,020,615

$ 9,315,484 48o aoo Wgg 555%

~16~400 15~998 88%

6,275,274 6,715,326 753,983

~60 281 11I>30K~ {5 2,138,725 1,120,000 15>323~>5 9 85" 21

~35~179~688

$ 6,350,507 7'),000 950>000

$26,715,o24

$21>36:L>+io

~0 OCQ 20 >>>1:L,9%

22~1L~1<t

~3~12:3~279 4os 42 1<05~2~2 11)978>693 12 )81 (>217 l>300,569

. 68 664

~>,iI<iMi>

'00>000 8~214

~2%72~357

~3,~2c~128

$10,,406i,525 Ni cheka ~ack,

$ 3,285 422 9>106>970 73'b >361 9,99f3;8CI8

" 499,Qe 361,837 1~0'3~66

~o a.

NickaJack includes land and. landrights in the amount of $1,308,037 acquired for retired Hales proJect which is allocated on systen basis.

b.

Estimated investment for increased reservoir elevation to seAe

<I< single purpose.

Bar

SCHEDULE A PAGE 3 Tims Ford

$ 8,131,142 12,363,625 320575250 14,167 953 352,345 83,127 1 16K~208

~3923 >72525 4 273 OOO Assets Bear Creek

$12,490,463 7,393,196 4,492,77o 35 7 503 7223 1,68V,o95 1,091,005 32 2323 Duck River

$ 5,561,38o 11,140,'706 512,541 18 519,264 468,442 1 1 10

~3,373,4~3 Beech River

$2,089,256 222,931 953,369 2,943,715 80,600 2212958 66

~57 RR Channel de5irovenente Total prospect allocations dams

$ 34,965,289 42,894,794 10,656,459 83,958,686 3,039,318 2,371,251 4

oo2

%1+2238MO72 2,138,725 1,820,000 12430,000 4 273 Coo Accumulated d~e retention 5,136,567 309,800 386,245

~62

,52955 1

153,734 251,882 183,242 405 799

$43,620,525

$63,462,323

$36,373,436

$6,578,424

$187,770,347

$ 7,216,730

'6 284 7

28

'9'96,515 8

12937275 24 U.

68

~2053 1

8,250,102 2

8

~~20~7 22,915,265 386,655 102022 114,479 15839 2 8648 2, 99, 73 1 644 6o

~507 19,444 4,933,818 187 397 1,701,719 1,701,719 1,701,719

$ 30,677,444 1,701,719 1 4 0 000 3029 921 3 2

874 71 386,655 10,022 114,479 1,839 4 2426 2 37,231 6o4 0

2 170 19,444 45,695,700 187 397

$ 4,69o,751 419 990 18 242 29275 99 2

01 014 7222 2513 3,245 16,434 262 42o 461 VN~5N2 13 5

2,770 1,427,722 9 596 515 8 250 102 22 915 265 272 5755 2442 44 2

700,2 9 607,86o 7,247,407 3,477,696 784,716 41 4 12, 59,132 331~

538 8

1,051,541

~10

~48 2 g 11 599 838 4 2 ooo 55

,132 2 617 2 1 11 203 3 3

~52 479 411 665 400 C81

~37 424 978

$ 2,945,495

$ 1,358,398 881,412 4 765 865 89 309 943 858,962 81 701 719 419.990 45 527 747 1,324,296 66 o 2 739 5

607,86o 25,501,374 23,0102239 2,839,268 2 070 3 8 5 20295139 2,138,725 1,820,000 4 2 ooo 50,07 10 072 660

~lr7752 i 8274 787 948 1 '430 492 135,528 1 841 2 197 77 3,543,'564 6,110,856 848,622

~4@6 11,0022307 153,734 251,882 9

6 18

~11 190 5 3

$23,221,289 25

TENNESSEE VALLEYAUTHOF(ITY SINGLE-PURPOSE POWER DAMS ANlD STEAM PRODUCTION PLANTS SEPTEMBER 30, 1979 Single-purpose power dams Assets Raccoon E'bun tails Fort Patrick A~lachia HenrL Great Falls Ocoee No. 3 Reservoir land and landrights>

including relocations Reservoir clearing Structures and improvements Dams and waterways Turbines and generators Accessory electric equipment Other power plant equipment Roads, railroads, and bridges Village and reservoir facilities Total single-purpose power dams 2>006>374 775>306 $

1>207>743 702> 114 $

237 > 226 2,225,080 72>152 126,855 216 056 28,702 63,740,793 1,310,940 1,885,'563 322>627>>

674,043

.'i9,117>,113 2,400,;395

'2,979,116 740,446 969>'195 18,357,079 4,310,825 509>779 292,i040 4,1,93,i051

'71>809'42,014 267,360 20,462 391,502' 233,558 139,374' 177,836 22,431>>

377,029

~6430

~17 043

~58~77 571 82; 3,092,621 8 22,887,882 8 11,611,356 8 10,798,459 8~8,289, 55 119,093,988 17>149>031 4'>565>200 2,386,;338 5,591,966 Accumulated depreciation 3,690,952 8

9,820;471 8

4,316,.398 8

3,681,846 8 3723;1,17 Steam production plants Assets Land and landrights Structures and improvement,s Boiler plant equipment Turbogenerators Accessory electric equipment Other power plant equipment Total steam production plants Cunberland Paradise Widows Creek

Shawnee,

~in ston 2,082,,196 7'16,336 195,354 504>507 $

1,415,450 80>199,273 59>408>428 44>338>i641 48,532>347 37,104>870 265,9i58,'746 201,612,789 193,630,644 124,279,497 155,951,173 64,776,,395 94>2'34,236 68>816>189 65,038,002'A>851>670'5,493,825 18,715,589 23,404,032 14,101,792 15,041,;394

~76~40 356

~606~1096

~572~0954

~40~59 496

',~49'77 732

'4ii6

>15~0791 $38~0748

>474 $3 l6 >105 >814 $2 i6 > 515 >641 $279 > 342 >289 Accumulated depreciation

$ 72,441,i085

$120,962,416

$129>726>400

$144,825>917'$l29>080>604 26

SCHEDULE A PAGE 4 Ocoee No. 2 Blue Ridge Ocoee No. 1 Wilbur 20,252 877,086 232,659 33,717 125,636 29,686 201,595 259,337 243>337 1,811,606 3,069,257 7,991,181 424,726 511,980 309,145 158,266 207,064 198,681 101,090 61,263 97,001 13,387 46,894 6,550 32 526 10 310 2,610 401,997 961,666 683,523 163,810 82,501 1,912 2,730,922 5,191,043 9>118>350 2,331,736 6,092,477 2,826,777 69,040,232 162,620,233 68,135,639 20,761,753 5,529,290 5>053>525 5>991.998 346,051,924 2,625,247 2,628,180 1,539,600 1,207,165 33,232,976 Johnsonville Colbert Thomas H. Allen Gallatin BuU. Run John Sevier Watts Bar (note 3 page 11) 108>467 $

279,029 690,832 2,082,768 1,491,572 11,996 38,338,589 30,288,780 91,620,834 93,423,271 26,863,106 27,834,662 22,549,459 4>090>947 3,178,540 1P3,944,397 108,878,658 55,281,781 10,593,488 16,549,552 57>665>623 45,498>592 46,890,254 26,288,298 30,477,357 6,274,222 12>568>354 1Q>795>687 9>337>026 9,738, 149 7,062,280 1,665,317 ll 397 063 ll 078,770 3,448,068 3,570,437 2,937,365 789,035 11,127,076 966,451 1,985,846

$204,692,930

$184,364,129

$191,173,683

$178,392,972

$119,799,814

$23,425,005

$33,807,465 9,'578,507 422,727,642 1,421,724,830 581>937>914 148,889,896 49,660,218

$2,634,519,007

$110>744>754

$ 88,615,223

$ 74,211,951

$ 46>786>235

$ 65 >280>238

$19 >647 >664

$ 7 >390>848

$1 >009>713

>335'7

TENNESSEE VALLEYAUTHORITY NUCLEAR PRODUCTION AND'OTHER ELECTIRIC PLANT SEPTEMBER 30, 1979 SCHFCI+LE A.

PAGE%

Nuclear production plants Browns-Ferry Land and landrights Structures and. improvements Reactor plant equipment Turbogenerators Accessory electric equipment Other power plant equipment Total. nuclear production p3iants Other electric plant Other production plant Gallatin gas turbines Thomas H. Allen gas turb:ines Colbert gas turbine,s Johnsonvi3.1e gas turbines System control center Total other production plant Transmission plant, inc3ud.'ing substat;ions serving who3.esale and. industrial customers Land and. landrights Structures and. improvements Station equipment Towers and. fixtures Poles and. f'ixtures Overhead conductors and. devices Roads and trails Total transmission plant General plant Communication equipment Coal land. and landr:ights and. mining equipm Uranium land and landrigI>ts Of'fice and. transportation equipment; Other, including land. and. lan('Irights of $704,382 Total general plant Plant leased. to others, including,land. and.

landrights of'2,325,093 Plant held. for future use Uranium land and. landrights Coal land. and. landrights Other, including laird and. landrights of'4,880,840 Total plant held. f'r future use Other physical property, including la.nd.

and landrights of'15139,142 Total other electric plant Assets 887,951

'188,6225774 315,787,,321 261,795,>012 104,172,425 17 084 984 888,350,467 30,511,008 51,637,862 41,097,771 86 604 3

209,851,,P3%

29~2'83 846 23')~135.~%0 40,497,576

, 27,018.,453 8,476,552

'9,883,553 42 8',

3g 17((, 775, 00>9

'1~763,,435 74,573.,435 764,087 10 731,820

~>,OP9,,3R2 3,762,354

@,071,198,827 69,349,183 14',633,291 636,483.,547 237,9295822 70,156,717

'308,879,,758 262, 829 1,F73,593 5 1117 AccuImxlated.

depreciation an~1d de oletion

$1CI8, I484,5L3

$ 41,252,649 3 155 8."L4 43.6,417,595 14,091,,727 5,435,3'.>6 391,,422 15,Io21,780 10 543~5L8 m<(m,2: 3 3~339l~132 4,986,847 2,623,212

)$47,911,472

.28

TENNESSEE VALLEYAUTHORITY OTHER PLANT SEPTEMBER 30, 1979 SCHEDULE A PAGE 6 Assets Accumulated.

depreciation Single-purpose flood. control plant, including land. of $726,828 2 065 257 190 213

-.Single-purpose navigation plant 7>0969629 936,186 Recreation and. environmental education plant Land, Between The Lakes plant, including land of $33,910,067 Other recreation plant, including land. of $173,719 Total recreation and. environmental education plant 6o,424,oo2 3,139,404 63,563,4o6 5,o48,965 399>129 5 448,o94 Chemical plant Land.

Phosphate land and. mineral rights Other land. and. landrights Total land.

Buildings and. equipment

'Manufacturing plant and equipment Phosphate facilities Nitrogen facilities l>531>858 2 122 153390 41 4ol 8 o 1 87o 196 379 12,118,925 General service facilities Utilitysystems Other general facilities Total buildings and. equipment Total chemical plant 15,624,685 10 105 665 25 730 350 12 808 778 7

3

~773 68 666 200 25 124 082 General plant Land. and landrights Land. improvements Structures General utility systems Data processing equipment Engineering equipment Photographic and. reproduction equipment Medical equipment Office furniture and, equipment Transportation equipment Alterations to leased. plant Environmental quality equipment Miscellaneous equipment Total general plant Total other plant 865,65o 1,607,919 200149,188 1,465,3o7 848,851 666,84o 1,436,456 1,544,318 4,361,138 17,378,406 589,041 1,824)285 4 174 565

~56 66 7

63 55 4198 303 456 458 862,426 29

TENNESSEE VALLEYAUTHORITY CONSTRUCTION AND INVESTI GA'll IONS IN PROG RESS, NUCLEAR FUEL, AND MINEAND MILLDEVELOPMENT COSTS SEPTEMBER 30, 1979

i. SClHEDULE 8 CONSTRUCTION AND INVESTIGATIONS IN PROGI?ESS Construction in progress Generating facilities Sequoyah Nuclear Plant Watts Bar Nuclear Plant Bellefonte Nuclear Plant Hartsvil1e Nuclear Plant Phipps Bend Nuclear Plant Yellow Creek Nuclear Plant Raccoon Mountain pumped storage proJect Total generating facilities Transmission lines, substations, and. other additions to power facilities Pickwick new lock Other navigation facilitie,s Flood control facilities Multipurpose facilities Tellico Dam and Reservoir Columbia Dam and Reservoir Bear Creek water control system Other Total multipurpose fac:Llities Chemical plant

- Recreation and environmental education facilities Land Between The Lakes Other recreation facilities Total recreation and. environmental education facilities

'eneral plant.

General construction iecLuipm<ent and materials Other additions to general plant Total general pliant Total construction:Ln progress Investigations for future power facilities Total construction and investigations -in progress i

NUCLEAR FUEL Nuclear fuel in process Browns Ferry SecLuoyah Watts Bar Bellefonte Enrichment Total nuclear fuel in proces.;

Nuclear fuel in stock Nuclear fuel in reactor Browns Ferry Spent nucl.ear fuel in cooling Browns Ferry Total nuclear fuel ACCUMULATED AMORTIZATIONAM) ALLOWAN(E Accumulated. amortization--Browns Ferry Allowance for disposal of spent nuclear fuel Total accumulated amortization and aU.owance MINE AND MILL DEVELOPMENT COSTS Coal mine development and lease.'ranium mine and mill development and. preoperations Total mine and m'.Lll devel'>ment costs 88Deduct Power program

$1,241,3'I1,834 1,121,103,068 1,115,013 961 l,ill,107,932 344,760,192 34'583308941 2~484 66 5~280~1~~2

~ill< Q~6620

~2~0~1

~P~+14

+ 821 OA+Vg 11 2~2 1

'5,832,367,688 43,676,634 47 9<36p277 48,844,a90 112,871,057 4'40 6 13'~~3'1~7 5

174 515~@.3 43~874 885 63:L~10~2111 42~50~7503 183,033,038 52,028,660 144~08~6025 g~z6 zl.4 686 All programs g:L,241, F11834

Lz lc?1 >103, 068

L,1]L5,013,,961

'1, 1:Ll,107,,93c!

344, 760,(19m!

345,330:,941

~21<84, 66 Ii~28~0912,,

9 I

~< 6:L06,~620 1:L5,826,,201 47,948128 l)37,,090 1 Q3a,~or 1{K~($~

26

~>a~~[

6,c!07036

~79Rjk(

1,762083 24 82, 443i.

'PP(

5 I>~Oci~24 2. 2

)

ZL~12~~~2%3L 46,063,7408501 438676 ~634 47, <KI6,,27 il 48 (344, 290 1:I2 871,,05(

4Z:>40',,690

~(X~I'i+K+I 3<I~2]Ll.,7 5 174 5~6,5383 4~3874,885-631, 102 111 140,52553.'i l)~2<>~07 50 183,033038 52,028,,660 14~4(8~6,02.'i g

lc!6 314,68'O

TENNESSEE VALLEYAUTHORITY DETAILSOF POWER EXPENSE FOR THE YEAR ENDED SEPTEMBER 302 1979 SCHEDULE C PAGE 1

Production eaQtipurpose dans Direct; page 32 Multiple-use; schedule E

Single-purpose dsms and pumped storage; page 34 Cumberland Basin progects; note a Stean plants; page 36 Nuclear plants>

page 38 Gas turbine plants; page 38 Total generation Purchased power Znterchange power received Znterchange power delivered Power purchased and interchanged, net System control and load dispatching Other Total production Transmission; page 38 Customer accounts; page 39 Demonstration of power use; page 39 Paynents in lieu of taxes; note b Social security taxes Adninistrative and general; page 39 Direct e>ultiple-use Total operating expense Provision

.Total before for depreciation ration Zot 1 d~*l t1

~Wib1t ZZ Fue1 Other Maintenance Other 4>081,193 888>515 794,811 186,974,576 30>063,861

~IPB 14,449,263 5,502,532 $

8,946,731 5>551>190 1>247>296 4>303,894 4,865,538 3>415>379 2,356,230 15,901,803 1,294,388,303 103 567,645 7,144,671 15 >901,803 1>367>026>283 132>732>513 4,788,441 72,637,980 29,164,868 9"~

1>561>419 66,297,059 25,524,816 15>901>803 1,041, 116,668 47,978,968 1~81~1 1 1086 1

2>KS>k 122,460,963

- ~B 62a~48>>

2,0R,813 122,460,963

~622 4 8 2>OW>13 b 122>460,963

- ~6m~48>>

- ~600 6

~600

~6 623>~6

~2!!4 00 ~~~o 2 $1~27

~2'+1 157>5~1

>703 1,71t>>705007 66,718,273 766,939 12>114>281 100>023>956 14,633,509

~1>59 >>005>753 31,874,670 766,939 12,114,281 100>023,956 14,633,509 M5 59535 14,568,434

~322 70D,!3 34,843,603 1~,1~,

I 17>306>236 766,939 12, 114,281 1,101173,751 100,023 >956 14,633,509 96,548,771 36 550 3>028>951 93,519>820 36 550 93>195>018 36 550 324,802 82 007 548 166 8160 572 68!! 83 846 975 478 81 108 673 751 8225 641,4!I!! 8240 488 071 u>! 2722368

~1~&725 P

~321 ~Z I ~~

~~3 ~~ZDZ

'I.

SYSTEM STATISTICS Production expense Installed Ratio of average kWh generated includin de reciation capacity at gross generation less station use Per kWh September 30, 1979 to installed Generation BQtipurpose dsgs Direct; page 32 Multiple-use; schedule E

Total multipurpose dsms Single-purpose dans and Duad storage; page 34 C4gberlsnd Basin proJects; note a Alcoa dsms; note c Total hydro generation steam plants; page 36 Nuclear plants; page 38 Gas turbine plants; page 38 Total commercial generation; note d Purchased power Interchange power received System control and load dispatching Other; note e Total system input Delivered under Alcoa Agreement Interchange power delivered Net energy supply Shop and internal uses e-Transmission and transformation losses Total kWh sales and production expense 14>517>705

~lt 0

>5 7>7 5 986,791 3,376,133

~22~428 21, 123 >957 78,080>953 19>771>019 54 6

119>5&21> R 86,888 12,779,018 4

~132>3 0,7535 1,856,234>>

120,7633>3311 10>212>>

06 124<<

1117 II 275 14,449,263

.995

~+11~

. 382 20,000 > 853

1. 377 7 144,671 7.240 15>901>803 4.710 1,367,026>283 17.508 132,732,513 6.713 31,322>322 57'99 2,062>134 122,460,963 3,284,709 73,392,474

~8 622 438>>

1>71~>705>

87 14.215

~171t>~~70 K7

14. 587 3,040, 150 3300, 150 1,779> 160 853,000 42 ~i

,025 17>796,085 3,456,000 2

10 000 2~9% 110 54.83 54.83 22.93 45.48 60.56 47.57 53.21 67.13 2 55 49.46 OD Notes:

a.

TVA purchases substantially all of the output of eight hydro plants in the Cumberland River Basin.

In accordance with memorandums ofunderstandingwith theCorps ofEngineers, Department of the Argy, the Cumberland Basin proJects are operated for optimum production of power in co+unction with TVA's power system>

subJect to flood control> navigation, and other operating requirements of the Argy.

b.

Iuynentsgsde to states and counties in which power operations are carried out.

'Ihe basic amount is 5 percent of gross revenues from the sale of power to other than Federal agencies during the preceding year, with the provision of mini>n>n payments under certain circumstances.

c.

Operation of twelve hydro plants of the Aluminum Conpany of America is coordinated with the operation of TVA's power plants under an arrangement whereby the storage and release of water from the Alcoa plants are carried out by the ccgpany under TVA's direction.

d.

Znstalled capacity increased 1,549,400 kilo7utts during fiscal year 1979.

Additions consisted of four 382,500 kilowatt generating units at the Raccoon Mountain Pumped Storage Plant and 19,400 kilowatts from modifications to five generators.

e.

"kWh generated" included kWh generated, less energy for pumping> during test runs of all four units at the Raccoon Neuntain Pumped Storage Plant.

The expenses of the generation, less credit for the fair value of energy delivered to the TVA power system, were charged to construction.

I

<<Deduct 31

TENNESSEE VALLEYAUTHORITY DETAILSOF POWER EXPENSE FOR THE YEAR ENDED SEPTEMBER 30, 1979 Direct hydraulic production-multipurpose dams IGunters-Chicka-kot I 6 t 47>>l kkl k.Nil 24 1

Ill N~lka k~

Operation Supervision and engineering Hydraulic 23,264 828 4,001 6>010 2>198 433,824

$ 34>718 $

30>618 $

62,985 $

51,064 $ 35',277

$ 17,893 $ 24 0(Q 348 9>221 Electric 2 >62'8 > 199

'157>> 199 173 > 092 345>441 255 >5528 148 > 635 i 92 >i789 i 146> 465 Miscellaneous

I~%!0~251 118tt20

~130,524 2~90 589 II~77 660 10'78 47 975 114 176 Total operation 4~865~538 309~997 335>>062 7~03 016 4~90 362 289~688 159>005 293>862 Maintenance Supervision and engineering Structures 376,052 34,539 356,485 32>263 37>>092 15>544 45,286 30,855 29>756 I 16,I561.

I 20>417 52,830 34>IS63 21,334 I

7,I227 I

13,379 Reservoirs, dnms>

and waterways 123>397 568 8,276 22,356 5,396 245 730 Electric plant Miscellaneous plant 554~635 1288650

~66,405

~9555

~44 984 10 003 ~3563 2,670,624 63,337 463>505 441,620 205,ID84 100>686 I 75,I123 I 162,421 ibtal maintenance 4 081~19t3 258 ~889

~583,114 6~47 567 3~38 142 170~863 20~159 236 510 4 Provision for depreciation 5>502~532 337~291 394>929

'9~22 494 689>850 233,263 436,I486I 256>224 824 449~263,5906~177 8~1343105

@~2~73 077 81 '518 354 6693~814 8704 650,6786 596 kMh generated less station use (thousands) 14,517,705 1>081,740 1,354>248 2,887,551 1>539>620 748,201 I712>>067I 842,290 Total production expense including depreciation per kWh (mills)

.995

.838

. 970

~ 787

~986 927 "990 93" Installed capacity at September 30, 1979 (kilowatts); note d, page 31 Ratio of average gross generation to installed capacity (percent) 3>040>150 175>000 220>040 629>840 359>100 115>200 100>I350I 117>000 54.83 70.72

70. 42 52'. 46 49.13

<'7.94 81,.13

82. 53 32

SCHEDULE C PAGE 2 Fort South Melton II tt Ba

'Io 8 <<2 II I

Ht ck 4

Wtlt 2 tt 12

'Fo ta H 1 I

~ll ta Ia Mug!a Boo Hill 21

• F 2

$ 19,386 $ 11,199 $ 33,177 $ 26,231 $ 17,249 $

5,025 5>028

$ 11,917 $

9>043 $

8>404 $ 14,016 6,744 $

6,305 3,545 197,901 122,766 114,644 69,849 134,789 21,466 20,241 85>695 57,036 129,381 118,504 116,694 62,499 57>485 90 C81 124 '!I02 4!! 317 78 345 107 033 15 295 13,504 70 795 29 04!I 78 394 52 659 35 032 39 466 15 29!!

3C8 026 25!I,367 196 138 174 425 259 071 41,786 38 773 168 407 95,127 216,179 185 179 158 470 108 270 76 328 25,377 21,977 18>354 5,603 14,458 3,385 2,527 16,172 5,815 11,957 11,967 10,001 10,655 3,298 48,632 19,579 5,148 h

6,264 13,400 4,826 11,302 5,747

,41,591 3,660 I

11,127 3, 104 1,071 13,915 1,838 7,997 9,392 1,372 316 2>894 12,699 2>003 5,812 16,451 5,288 3>794 5,230 319 199,074 184,778 364,863 33,525 121,748 24,083 9,297 32,686 26,325 61,252 34,971 26,021 12>682 27,543 25 211 17 683 5 464 12 824 10 670 ~362 8 470

~11 32 ~513 ~1347 ~16 29 7 755 3 562 2 665 311 69ll 248 843 405 131 ~63 63 ~1~54 ~38 1 4 ~24 2 86 801 ~41 8 4 ~106 36 ~8710 50 437 ~1008

~3055 249,612 238,206 8!! 973 164,374'85,0CO 33,065 38 923 248,189 87 936 133 160 203 5!I6 179,377 237 401 144 193 8369 332 8745 416 8690 242 8402 762 8643 665 ~113 045 QOD1955

~503 397 6224 957 ~55 704 ~78 475 L388 228844~376 680 g5') 576 1,049,736 653,079 547,654

.828 1.141 1.260 328,677 370,836 36,173 40,605 1,083,639 142,636 162,891 461,508 196,149 209,065 69,340 1.225 1.736 3.125 2.511

.465 1.577 2.798 1.037 1.980 1.802 3.744 166>500 l39>140 100>800 ll7>100 135>180 10>000 15>000 238>500 35>000 53>800 120>600 75>000 72>000 45>000 73.58 53.73 62.17 32.19 31.44 41.52 31.09 51.95 46.71 34.98 43.82 30.04 33'9 17.75 33

TENNESSEE VALLEYAUTHORITY DETAILS'OF POWER EXPENSE FOR THE YEAR ENDEO SEPTEMBER 30, 1979 Hydraulic production - single-purpose cLams and. pumped. storage Operation Total Fort Patrick Apa.Lac'hia Henry Supervision and.- engineer:ing Hydraulic Electric Miscellaneous Total operation 37,497 863,086 502 815 1,561,419 1,123 64,159 C

37 362 124,210 5,422 54,615 138~635 209,881 158,021

$ 21,566 fI 11,209 Maintenance Supervision and engineering Structur'es Reservoirs,

dams, and, wates~ys Electric-plant; Miscellaneous plant, Total maintenance 114,563 82,639

, 303,488 223,199 (0,922 794,811 5,472 5510 2:,541 19,,280 5854 38,657 10,'674 9,365 81,802 69~957 7,:336 179,':L34-

-Provision.for depreciat:ion 4,788,441 276,,071 158,:L79'otal Li7~11A~~671 4438,938 454i7,:Zg4 kWh generated.

les.

station use

('thousands) 986, 791 549, 206 119, 774--

Total production expen.e including depreciation per kWh (mills) 7.240

-799 4.569 Installed capacity at September 30, 1979 (kilowatts); note d., page 31 1,779,160 82,800

-36,000 Ratio of average gross generation to installed capacity (percent) 22.93 75.81 38.19

+Deduct

SCHEOULE C PAGE 3 Raccoon Great Falls Ocoee No.

3 Ocoee No. 2 Blue Ridge Ocoee No.

1 Wilbur Mountain f 25,861

$ 15,566

$ 10,300 4,594

$ 24,014 f

6,018 38,893 16,563 213>779 44,172 300>375 4,934 40,264

.43,665 104,429 998 80,524 32,906 124,728 253 27,982 26,520 59>349 5>711 209,213 2,493 24,809 147,741 337,414 53,102 247,931 98 476 19 782 61 297

.34,952 3,658 3,216 17,095 15,286 74,207 12,549 7,567 44,777 14>799 7,823 87,515 18,038 29,327 106,828 4,134 11,431 169,758 7>739 2,467 3,329 17,302 3,263 34,100 11>265 15,769 7>317 8,675 4,788 53>195 27,174 25,913 9,314 3>753 70>839 96>324'>199 4,188 27,545 6,862 44,277 177,589 105,330 84,629 55,980 203,307 36,404 3,690,952

$552>171

@97,274

$379,115

$149>429

$611>560

$185>830

$3,983>160 175,832 197,296 54,428 89,389 27,584 226,374+

3.140 1.507 2.745 6.842 6.737 17 595~

31,860 28,800 21>000 20>000 18,000 10,700 1,530,000 63.14 78.33 31.13 56.92 29.64 12.65 35

TENNESSEE VALLEYAUTHORITY DETAILS OF POWER EXPENSE FOR THE VEAR ENDED SEPTEM8ER 39, 1979

~

~

Steam production Operation

Total, Cumberland Paradise kIidows Creek; Shawnee Supervision and engineering Fuel 6,929,244 f 829,141 648,471 1,041, 1165668 14555595871 7'957215656 971,918 72'I,906 130,I3723154 3255832,676 Steam Electric Miscellaneous Rent Total operation 2058965685 2,161,539 157415556 358445113 f 2<0155537 85036,292 561,134 717,f666 1,075,962>> 89(),021 235534 bio 3 565 394 3 144 513 2 9505577 1~930 527

~6,900 ov8 1,107413,7 !7 152,677,079 85,973,862 139,714,724 131,',394,667 Maintenance Supervision and'.engineering Structures Boiler plant Electric plant Miscellaneous plant Total maintenance 45890,651 1556755823

]L315474,518

'015908 7575532 68o,657

'342,394 7,956,592 2257'I45531 1,528,283 15164,125

'f f 591,943 16,769>783 18,f627,474 8',265,314 2626885270 255682990 351615393 422845630 254805976 8,~245~314 1~M~1759

~13~48 272

~1'26 050 5lf1 Olf1

f86.~974~576 3.'i~08~3780 2'~35~65 263 25 982 936 12 221 668 Provision for depreciation 72,637,980 12,436,622 10,560,359 9,328,883 7 165,530 Total

',8~1367026~283

,82K>~197 4f81 81 '~0099,484

$175,026,543 8150,781,865 kWh generated less station use (thousands) 78 5080 5953 jo 5 404 5220 10 5 401 5798 7 5 585 5974 7 5962 5 181 Total production expense including depreciation per kWh (mills) 17.508 1'9.242 11.546 23.072 18.93V Installed capacity at September 30, 1979 (kilowatts )

17579650I35 256005000 2,558,'200 1,977,985 1,750,000 Ratio of average gross generatio'n to installed capacity (percent) 53.21

47. 52 48.65 46.5o 55 '73 36

SCHEDULE C PAGE 4 Thomas H. ALLen Kingston Johnsonville Colbert Ga11atin Bull Run John Sevier Watts Bar (note 3, page 11) 514,861 $

671,229 696,500 479,893 403,653 365,339 192,373 429,960 126,880,216 89,998,472 72,054,243 85)153,982 58,744,952 63,631.,644 14,367,573 2,042,170 1,958,438 1,915,494 1,258,891 960,558 1,019,802 990,131 883,058 881,365 778,069 593p379 419,922 lp914)281 lp989)861 lp828p 150 1)734p206 1)400)881 457,255 398,592 999,174 623,966 132,234,586 95,499,365 77,272,456 89,220,351 61,929,966 66,473,214 16,572,635 48,299,229 988,456 379,869 1,453,230 6 900 078 58,450,822

= 430,891 308,747 393,003 326,574 310,081 199,660 125p297 1,200,162 538,892 790,031 635,634 271,003 243,167 368,196 2,006 533 3 973)754 2,341,208 2,396,019 1,345,270 992,6S7 192,087 15 582,987

'7 103 343 12 939)559 7)513.)799 7,076,353 3,429,311 3,319)471 313p907 387,795 8)114,593 944,723 579 437 748 887 760 258 319 284 472 308 405 654 411 026 31 338 19.800 010 12 673 623 17 224 059 11 189 310 9 475 015 5 270 479 4 416 077 10 072 356 7 662,010 5,650 216 5,182,034 5,070,636 4,824,402 3,248,566 651,874 856,848 8159 696 606 8113,823,204 899,678,549 8105,480,297 876,229,383 374,992 259 821,640,586 369,380,026 9,328,472 6)428,040 5)078)473 6,073,968 4)758,842 5)178)136 880,091 4,000,758 17.119 17.707 19.628 17.366 16.018 14.482 24.589 17.342 1,723,250 1,485,200 1,419,750 1,255,200 950,000 846,500 240,000 990,000 66.59 53 25 43.71 59.14 59 39 73 99 44.42 50.14 37

TENNESSEE VALLEYAUTHORI1Y DETAIL'5OF POWER EXPENSE FOR THE VEAR ENDED SEPTEMBER 30, 1979 iSGHEDUII E C

.PAGE 9 Al]Len Co3.bert Ga,'lla tin Johnsonvil3.e Total Gas turbine production Fuel expense Other operating expense Maintenance Provision for depreciation g 46

%.05>>99~

630,165 2~06~5807

$2,674,636 24~~

2,938,375 1,329,706 1~643 628I

$1,425,874 155005555 62,944+

I~1220 ~44O

$11,524,074

,<40~68

11,664,442 894,952 5 464 9OO

$19, 578, 13.5 20, 136,368 2,7915879 8~3<3~4075 Total

$6,748,968

$~58915709

@~~658~051

$16,023,594

$31,3225322 kVh generated.

less station use (thousands)

Total production expense including depreciation per kWh (mill,s) 106,661 63.275 73,778 37,531 79.857 70.823 327 5 725 48.89;3 545,695 57.399 Installed capacity at September 30, 3.979 (kilowatts )

620,800 476,000 325,200 1,088,000 2,510,000 Ratio of average gross generation

'to insta3.led capacity (percent) 2.03 1.82 1.41 3 50

'2'5 Nuclear production - Browns Fern Operation Supervision and engineering Fue3.

Coolants and water Steam Electric Miscellaneous Total operation Maintenance Supervision and engineering Structures Reactor plant Electric plant Miscellaneous plant Total maintenance Provision for depreciation Total (statistics appear on page 31)

Transmission Operation Supervision and engineering Load dispatching Stations Overhead lines Transmission of electricity by others Miscellaneous Rents Total operation

+Deduct 2,810,;377 47,978,968 1,0'58,803 9,146,212

.I1,673,.'118 10~8;3~6306 73,503,'?84

,3,338,.150 2,223,878 3.'7,0'78,884

3,8,'21, '729 3,601,220 30~06~3l361 29~16~4868

$132,732 513 3,691, 134

,1,854,,318 4,850,,396 664,069 8, i676 4,845,066 3,3925577 1'7,306,,'236 38

TENNESSEE VALLEYAUTHORITY DETAIL'S OF POWER EXPENSE FOR THE PEAR ENDED SEPTEMBER 30, 1979 SCHEDULE C PAGE 6 Transmission - continued Maintenance Supervision and engineering Structures Station equipment Overhead lines Miscel.laneous plant Total maintenance Total 454,611 456,6',982,4o9 5,o56,oo8 618 7oB 44 568 454

$31,874,670 Customer accounts Meter reading Customer records and collections 2o6,433 560 506 766,939 Demonstration of power use Supervision and. general Domestic and rural Commercial and industrial Home weatherization program Information services Residential technical applications Load. management Solar applications and demonstrations Less reimbursement from power distributors for technical advisory services Total

$ 2,846,530 935,820 1$ 807$ 517 3,933,174 348,3o2 221,366 250,805 241 21 12575

$7 5 648 484

$12,114,281 Administrative and general Direct Operation Salaries Office supplies and expenses Less transfers to construction and. other accounts Outside services employed.

Property insurance Irguries and damages Employee pensions and benefits Miscel1aneous Rents Electricity used by shops and. laboratories Total operation Maintenance General property Total direct

$11,055,211 5,5375927

$16,593,138 1 551 1550 1$ 235 1,009,823 522,700 655265294 41,619,325 16,547,l54 1,473,316 290508286 82,449,765 584 Boo 88,574,567 Allocation from nonpower divisions TVA general offices Direct; schedule F

Multiple-use; schedu1e E

Other divisions Total administrative and general charged to power operations 86Deduct

$lo,661,548 36,550 83,705 10,781,803

$93,556,370

TENNESSEE VALLEYAUTHORITY DETAILSOF NONPOWER NET 'EXPENSE FOR THE VEAR ENDED SEPTEMBER 30,.1979 SCHEDULE D PAG E'I Idt1ltiple-use Direct (schedule E)

Total REGIONAL RESOURCES DEVELOP%El'IT Navigation operations Studies and investigations Navigation engineering andi investigations Administrative and central general expense,s

@.,307,048 2~9~

1>331,003

$ 1>307>048 249.'?5....

1>331>003 Operation and maintenance of facilities Operation Idsintenance Administrative and general expenses Provision for depreciation Total expense o:I'avigation operations 3.'10,814 3:1.6,488

~aoae 843 2>337>003 603>421 a7,o74 9~62 685 2,447,8:LT

'91'9,909-aT',orb 2~983~528 I3,779,14>,>3,>30 183 7~709~3'31 System flood control operations Studies and investigations System studies and. investigations Administrative snd central general expenses 614,561 614,5I>1 Operation and maintenance of'acilities Operation Haintenance Administrative and general expenses Provision for depreciation Total expense of system f.Loodl cont&>1 operations Recreation development Recreation development Adndnistrative and central general expanses Operation and maintenance of'acil:Ities Operation and maintenance Administrative and general expenses Provision for depreciation 36~7310 9t91>036

$1>l15>353 a38,947 116 447 3 >191>358 713,685 36,55o

~10~83 608

'$5;025>201 2,833,896 3a,489 383,184 3,191,358

,713>685 36,550 1~450~ L8

. 6,01'6,2;37 1>115>353 26,391 1W11

>74%

3,072,843 32,489

- 499~6;3l Total expense of recreation dlevelopment

.Tr'ibutary area development Basic investigations Development assistance in specific tributary areas Local government assistance Administrative and central general expenses Operation and maintenance of'aci1!Lties Operation and maintenance Administrative and general expenses Provision f'r depreciat1on Total expense of'ributary area develoynnent Regional water quality management Regional water quality management Provision for depreciation Administrative and central general expenses Total expense of regional water qu'a.'Lity management 41,497,)ZS 43, ?49,569 477,...I80 1,655,613

'372,)22 41'86 2~>5 &7>(61 390,014 2,707

$2 >547,]i,95 661>823 4,746,707 477,380 1,655,6:L3 372,122 41~8I36 2~57 > OI)1 390,0:L4

. 3,,209,0:L8 1,401,77e.

56,063 14 3f&

1~472~201

'Fisheries and wildlife resources development Fisheries resources development Wildlife resources management Provis1on for depreciation Administrative and central general expenses Total expense of fisheries and wild:Life resources development Preliminary surveys hnd engineering Preliminary surveys and engineer1ng

'Administrative and central general expenses Total expense of prelktninary surveys and engineering 689,224 692 >394 60,1~L8 17 428

',459,164 338>730 4 148 342 878

TENNESSEE. VALLEYAUTHORITY DETAILS OF NONPOWER NET EXPENSE FOR THE YEAR ENDED SEPTEMBER 30, 1979 SCHEDULE D PAGE 2 REGIOIIAL RESOURCES DEVELOPMENT - continued.

Environmental education Environmental education Provision f'r depreciation Administrative and central general expenses Total expense of environmental education 479,692 8,336 4 841.

492,869 Valley agricultural development Farm resource management and fertilizer use Fertilizers used Planning and, supervision Less farmer payments for fertilizer Program evaluation and analysis Technical assistance to Valley development organizations Developing specialty enterprises for the rural poor Agribusiness development Administrative and general expenses Net expense of Valley agricultural development 39,437 1

2 0 44 1,

2,2 9 229 575 1523102 577,013 1602579 18 64o 2,720,158 Forest resources development Forest resources development Provision for depreciation Administrative and central general expenses Total expense of forest resources development 2,194,202 14 5U.

37 978 2 246 691 Strip mine reclamation demonstrations Strip mine reclamation demonstrations Administrative and. central general expenses Total expense of'trip mine reclamation demonstrations 2,009,027 32 324 2,041,351 Interagency health services demonstrations Interagency health services demonstrations Administrative and central general expenses Total expense of interagency health services demonstrations 602,279 4 286 606,365 Regional economic studies Regional economic studies Administrative and central general expenses Total expense of regional economic studies 763,749 11 616 775 365 Townlift community improvement Townlift community improvement Administrative and central general expenses Total expense of townlift community improvement 736,182 13 219 V49 4O1

.>Human resources development Human resources development Administrative and central general expenses

~f Total expense of human resources development 756,609 7 215 763 824 Minerals resources proJects Minerals resources prospects Administrative and central general expenses Total expense of minerals resources proJects 3153093 4 284 3199177 Special opportunities counties program Special opportunities counties program Administrative and central general expenses Total expense of special opportunities counties program 476,434 v o6v 483 594 Minority economic development Minority economic development Administrative and central general expenses Total expense of minority economic development 674)771 1 786 676 557 41

TENNESSEE VALLEYAUTH<ORITY DETAILSOF NONPOWER NET EXPENSE FOR THE YEAR ENDED SEPTEMSER 30, 1979 SCJHCDUI E,D PA<XI= 3 REGIONAL RESOURCES DEVELOPMENT - continued Local flood damage prevention operations Local flood damage prevention operations Local flood damage restoration Provision for depreciation

'Administrative and central general expenses Total local flood damage prevention operations Environmental quality prospects Regional air 'quality management Research on disposal of solid wastes Administrative and central general expenses Total expense of environmental quality prospects

$ 8,'690",c'.70

~ ll!I9;493

L3,:04 1~55i78

~88<5~8945 203>793 2<+,2!'45

'4 374 Net expense of regional resources development

" $46,206,152 FERTILIZER DEVELOPMENT

,Research and development Chemical fertilizer research and develoIpment Fundamental research Applied research Process engineering Ammonia from coal proJect

.General expenses Soils and fertilizer research Provision for depreciatiola Administrative and genera'L expenses Total expense of research and <develop<<<ent Fertilizer introduction Fertilizer industry demonstrations Fertilizers used Educational distribution expense Administrative and general expenses Less industry payments for fertilizer Fam test demonstrations outside the Va.'LLey Fertilizers used Planning and supervision Administrative and genexal expenses Less farmer payments for fertilizer Net expense of fertilizer introduction

$ 1,933,022 1;8!25,922 2,465,338 483,362

~248~3531 9q1'Qqc~l75 1,615>733 135,017 123 315 H.,055,040 c!1~308>C179 2,071~702 c!3< 517107 20 779,820

'2 V3mm~

2i69, I!l09

~112&582 3,863;138 Developmental production Cost of-products distributed Materials used Direct manufacturing and shippLng expense Indixect manufacturing and shipping expen,se Provision for depreciatLon and'depletLon Finished inventory changes Total cost of products distributed.

General expenses Gain on sale of phosphate

reserves, net Loss on retirements of manu<facturing plant and

. equipment, net Other general expenses Administrative and generaL expenses Shipping order-and field inventory expenses Provision for depreciation of idle manufacturing plant and equipment Other, including depreciation of $4,013 Total general expenses Total production expense "Deduct

$225,694 283,255 14,091,$ 82 10,4 72,697 2,901,c!95 2; 121,'060 871 782 23,71', l52 71~347" 417,073 166,471 44~0823 1 116 c!~4

~1~ 1 el+6

~I~01'7%7I21

~ TENNESSEE VALLEYAUTHORITY DETAILS OF NONPOWER NET EXPENSE FOR THE YEAR ENDED SEPTEMBER 30, 1979 SC HE DU L'E D

'PAGE 4 FERTILIZER DEVELOIMENT - continued Developmental production - continued Less transfers and sales of products Transfers to TVA programs, at market prices Fertilizer industry demonstrations 1

Farm test demonstrations Agricultural development Other Total transfers Direct sales Total transfers and sales Net expense of developmental production Net expense of fertilizer development

$21,308,079 269,409 39,437 21,,

5 1 0 1

8,340,337

$a3,268,515 NATIONAL ENERGY DEMONSTRATIONS Waste heat utilization Greenhouse environmental control, including depreciation of $a61;171 Soil heating to extend crop growing season Biological recycling of nutrients from livestock waste Environmental control of livestock facilities Aquaculture Administrative and general expenses Watts Bar waste heat park development Net expense of waste heat utilization Solar energy demonstrations Coal gasification demonstration Atmospheric fluidized bed combustion demonstration Other energy demonstration prospects Total expense of national energy demonstrations 727,141 14,35a 299,734 123935 331,547 6,955 6~6 23029,023 1,,663,oo6 366,58I 571394 187 515

$ 4,698,o77 LAND BETWEEN THE LAKES OPERATIONS Land Between The Lakes operations Provision for depreciation

'Administrative and central general expenses

$ 4,754,57o 700,033

~1956 Total expense of Land Between The Lakes operations

$ 5 546 559 VALLEY MAPPING AND REMOTE SENSING Valley mapping and remote sensing Provision for depreciation Administrative and central general expenses 98o,648 16,289 14 897 Total expense of Valley. mapping and remote sensing

$ 1 011 764 OTHER EXPENSE OR INCOME Scientific and technical cooperation Southeastern regional library demonstration Emergency preparedness Maintenance of bridges financed by, others on TVA dams Interest income from receivables lo5,6o6 22,319 15,323 1,084,520 39 513" Other expense, net

$ 1,188,255 NET EXPENSE

$81 5919 5 322 9$Deduct

TENNESSEE VALLEYAU t HORITY OPERATING EXPENSES OF MULTIPLE-USE I;ACILITIES FOR THE YEAR ENOED SEPTEMBER SIO, 1979

's C H E DIuLE

xpenses Operation Water control operations Water control investigations Xnvestigations and. control of reservoir ecology Plant protection and.,services to visitors Operation and. upkeep of dam reservations Reservoir land. management Development of water resource, management methods Central services expenses Total operation Administrative and. general expenses Maintenance Provision for depreciation

$ 1,677,553 296 '647 1~429,499-"

2,320,077 II 2,267,9c)7 3~322~894 560,053 90 362 11,965~042 135>370 2,408 2;>9 3,945',875 Total

$18,454,5l6 Administrative Operation and general lb,intenance Dicereciation Tote,l Distributed to Power operations

$ ;3,415,379

$ 36,550 888, 515

$1,'247,296

$ 5, 587,740 Navigation operations 2>337>003 27,074 603,421 962,685 3,930,183 Flood. control

,operations

3,191,358 36,550 713,685 1,083,608 5,025,201 Recreation development 2,737,197 3,2,489 9',699

383, 184 3,249I, 569 Tributary area development 284,105 2 707 105,909 269,10'2 66l.,823 Total

$11,965,042

$135,370

$2,,408,229

$3,945,875

$18,454,5l6

TENNESSEE VALLEYAUTHORITY ADMINISTRATIVEAND GENERAL EXPENSES FOR THE YEAR ENDED SEPTEMBER 30, 1979 SCHEDULE F Expenses Board of directors Office of the genera1 manager Planning and budget staff's Washington office Information off'ice, including technical library service Equal employment opportunity staff Division of personnel

-. Division of finance Office of the general counsel Office of management services

. Division of'roperty and services Division of management systems Medical and saf'ety services Other administrative and general Total 446,544 1,1655092 1,104,521 381,644 352515555 153945 152 150555553 4,772,430 4,123,121 1062732 873,564 1,143,050 3,717,878 218 196 823 75< 232 Distributed to Construction and investigations in progress Recovered.

through services billed to others at cost Expense of programs Power Water resources development Navigation System flood control Regional water quality management Fisheries and. wildlife resources development Preliminary surveys and. engineering Recreation development Environmental education Multiple-use facilities operations Fertilizer development Developmental production Fertilizer introduction Fertilizer industry demonstrations Farm test demonstrations Research and. development Hati.onal energy demonstrations Regional resources development Valley agricultural development Forest resources development Strip mine reclamation demonstrations Tributary area development Interagency health services demonstrations Regional economic studies Townlift community improvement Human resources development Special opportunities counties Minerals resources prospects Local flood damage prevention operations Environmental quality prospects Land Between The Lakes operations Valley mapping and remote sensing Total

$11,849,070 352,o4o lo,661,548 14,oo3 7,001 9,336 9,336 2,334 11,670 2,334 135,370 225,694 137 7295 13,980 123,315 6,955 18,64o 23,34o 23,34o 23,34o 2,334 75001 9,336 4,668 7,002 2,334 9,336 2,334 51,347 8 399

$23,754,o32 Percent of total 49.88 1.48 44.88

.o6

.03

.o4

.o4

.01

.05

.Ol

.57 95

.58

.o6 52

.03

.o8

.10

.10

.10

.01

.03

.o4

.02

.03

.Ol

.o4

.01

.21

.03 100.00

4 l 4

~ +