TVA Reliability Coordinator LGEKU ITO Spring Stakeholder Meeting

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

Talking Points • • 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 2

TVA RC Organizational Changes 3

TVA RC Organizational Changes 4

TVA RC Power System Restoration Drill 5

TVA RC Power System Restoration Drill 6

TVA RC Power System Restoration Drill 7

(T 14 )* * Un its (T VA P e. F ill FP len so hn ise Al Pa Jo ra d lb Co nv Un er t. F P its Un 12 its (T 14 VA ) ** (T VA ) TVA Generation Updates (Fossil to Gas) Retired • Paradise 1 -2 FP (~1200 MW) • Allen FP (~750 MW) New • Paradise 3 x 1 CC (~1200 MW) • Allen 2 x 1 CC (~1100 MW) Jan. 2016 Jan. 2017 HAPs-MACT (EPA) One year extension deadline (4/15/2016) Jan. 2018 HAPs-MACT (EPA) Two year extension deadline (4/15/2017) ISD 12/2018 ISD 12/2017 ISD 6/2017 ISD 4/2016 ** Replaced by onsite gas generation Jan. 2019 8

TVA Generation Updates (New Nuclear) 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 9

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

Fall Outlook 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 11

MISO Dispatch Transfer UDS Performance 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. 12

IDC Updates • 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 13

VAR Management System Expansion • • 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 14

Questions? 15