OUR
OUR CONVERSATION >> THIS
MORNING
MORNING WITH TVA CEO AND PRESIDENT JEFF ASHTON BOSZ >> JEFF >> GOOD MORNING AND THANK
YOU FOR COMING ON OUR SHOW.
JUST THIS WEEK THE L.A. TIMES
REPORTED THAT CALIFORNIA HAS
REACHED 95 PERCENT RENEWABLE
ENERGY AS POWER SOURCES FOR
THEIR STATE.
AND I KNOW AT THE TOP OF THE
SHOW WE TALKED ABOUT THE FUTURE
EXPANSION OF RENEWABLES.
OF
JOHN
JOHN MENTIONED TVA STARTED AS A RENEWABLE POWER SOURCE THROUGH HYDRO ELECTRIC.
BUT WHY IS TVA SEEMINGLY SO FAR
BEHIND OTHER PARTS OF THE
COUNTRY AND WHAT REALLY DOES
APPEAR TO BE THE FUTURE OF
CLEAN SUSTAINABLE POWER THAT'S
EVENTUALLY OR WILL BE OR IS
COST EFFICIENT BY WAY OF SOLAR
AND WIND.
WHY ARE WE QUITE A BIT FURTHER
AWAY SAY IN CALIFORNIA AND
OTHER AREAS OF THE COUNTRY IN
THOSE AREAS AS WE STAND TTODAY
>>?
YEAH, THAT NAASOTE I HAVEN'T
SEEN THE REPORT TO SAY THAT BUT
I DO LOOK AT CALIFORNIA'S
ENERGY MIX QUITE OFTEN AND
ACTUALLY THEY STILL RELY PRETTY
HEAVILY ON NATURAL GAS.
THEY HAVE OPERATING NUCLEAR
UNITS AND THEY IMPORT QUITE A
LOT OF ENERGY FROM OUTSIDE THE
STATE.
A BIG PIECE OF THAT IS COAL.
A LOT OF WHAT THEY'RE BUILDING
IN CALIFORNIA IS SOLAR AND WIND
AND RENEWABLES OF THAT TYPE ARE
REGIONAL IN NATURE.
THEY HAVE THAT CAPABILITY.
THEY DON'T HAVE BIG HEATING AND
COOLING LOADS IN CALIFORNIA.
THEY'VE GOT PLENTY OF SUNSHINE
FOR TTODAY WE'RE ABOUT 15
PERCENT RENEWABLES TODAY WITH
HYDRO AND SOLAR.
WE'RE BUILDING A THOUSAND
MEGAWATTS OF SOLAR A YEAR.
I EXPECT TO HAVE TEN THOUSAND
MEGAWATTS IN SERVICE BY 2030 TO
GROW THE RENEWABLES
CONTRIBUTION HERE IN THE
TENNESSEE VALLEY.
WIND IS NOT A GOOD RESOURCE FOR
US HERE.
SOLAR ONLY JUST BECAME COST
EFFECTIVE RECENTLY THE LAST
THING I'D SAY IS IN TODAY'S
APPROACH WE DON'T JUST OUR
OBJECTIVE IS LOW CARBON BUT
IT'S LOW CARBON WITHOUT RAISING
THE CUSTOMERS PRICE WITHOUT
HURTING THE RELIABILITY OR
RESILIENCY OF THE SYSTEM LIKE
YOU'VE SEEN IN SOUTHERN
CALIFORNIA, TEXAS AND SOME
PLACES IN THE MIDWEST AND AND
IN DOING SO MAINTAINING AN
ECONOMIC DEVELOPMENT ADVANTAGE
FOR US.
SO WE'RE A LEADER IN THE NATION
AT REDUCING CARBON.
ALMOST NO OTHER UTILITY HAS
REDUCED IT AS MUCH AS OURS.
WE'RE GOING TO CONTINUE TO DO
THAT BUT WE'RE DOING IT WITHOUT
RAISING YOUR PRICE OR HURTING
YOUR RELIABILITY.
>> SO JEFF, THAT REALLY DOES
LEAD ME INTO THE NEXT TOPIC IN
THE NEXT QUESTION, TVA IS
UNIQUE IN THE COUNTRY AS A
POWER SUPPLIER IN THAT YOU HAVE
A MONOPOLY.
YOU'RE A STRANGE SORT OF QUASI
GOVERNMENTAL NOT PRIVATE, NOT
PUBLIC ENTITY THAT HAS WORKED
WELL FOR MANY YEARS.
BUT IT HAS ALSO ALLOWED YOU TO
RESTRICT PURCHASES OF POWER
LIKE KB, LIKE MEMPHIS POWER TO
REQUIRE THEY PURCHASE ALL OF
THEIR POWER FROM RIGHT NOW THE
FEDERAL ENERGY REGULATORY
COMMISSION IS REVIEWING THAT
ABILITY IN THAT PROCESS.
IFFIC SAYS THAT MEMPHIS POWER
CUBE OTHER BUYERS CAN BUY POWER
FROM OTHER SOURCES THAN TVA.
HOW IS THAT GOING TO AFFECT
THOSE SAY HERE ARE OTHERS
PURCHASING POWER BY WAY OF
THEIR ACTUAL COST TO THE END
USER?
ARE YOU AFRAID OF THAT ON A
SCALE OF ONE TO 10, HOW
CONCERNED ARE YOU >> YOU HAD
DONE WELL FIRST OF ALL TTODAY
ISN'T UNIQUE IN BEING A
REGULATOR UTILITY.
WE OPERATE SIMILAR TO SOUTHERN
COMPANY DUKE DOMINION.
THERE ARE OTHER UTILITIES IN
THE SOUTHEAST TO HAVE A SIMILAR
BUSINESS MODEL.
NOW HAVING SAID THAT, LOCAL
POWER COMPANIES BUY THEIR
WHOLESALE POWER FROM US ARE
ABLE TO LEAVE TVIS SYSTEM AND
BUY POWER FROM OTHER PROVIDERS.
TVA IS NOT STOPPING THEM.
THEY JUST NEED TO EXERCISE THE
TERMS OF THEIR CONTRACT AND
EXIT THE CASE BEFORE FOR IS A
SMALL NUMBER OF LOCAL POWER
COMPANIES WHO WANT TO EVALUATE
LEAVING TVA BUT WANT US TO MOVE
THE POWER FOR THEM WITH AND
FRANKLY WITHOUT SHOULDERING
THEIR SHARE OF THE COST
SHIFTING COSTS TO OTHER
CUSTOMERS.
THAT IS WHAT WE OBJECT TO YOUR
LAST POINT ABOUT COST
COMPETITIVENESS TVA IS AS OF
THE FOURTH QUARTER OF LAST YEAR
WAS LOWER THAN SEVENTY NINE
PERCENT OF THE UTILITIES IN THE
COUNTRY.
WE HAD THE THIRD LOWEST OR THE
SEVENTH LOWEST I'M SORRY
INDUSTRIAL RATE IN THE COUNTRY
AND SOME OF THE HIGHEST
RELIABILITY AND RESILIENCE.
SO THAT VALUE OF THAT PACKAGE
TOGETHER I FEEL VERY STRONGLY
IS IS IS A WINNING PACKAGE AND
AND WHILE I WANT TO MAKE SURE
WE SETTLE THESE DISPUTES
EQUITABLY AND FAIRLY, I'M NOT
GOING TO ALLOW LOCAL POWER
COMPANIES TO SHIFT COSTS TO
THOSE THAT REMAIN AND I THINK
IN THE END THEY'LL SEE THE TVA
REPRESENTS THE BEST VALUE >>.
>> JEFF, YOU TALKED A LITTLE
BIT ABOUT WE'RE NOT BEING
NECESSARILY OPERABLE FOR OUR
AREA AT ONE TIME.
I KNOW THERE WAS A PROPOSAL TO
BRING WIND FROM TEXAS AND TEXAS
AND OKLAHOMA ACROSS ARKANSAS
AND INTO MEMPHIS AND IT SEEMED
AT THE TIME THAT WAS IT WAS
FAIRLY RELIABLE.
A LOW COST COST HAS NEVER BEEN
ANY MORE DISCUSSION ABOUT THAT
OR WHERE IS THAT IS THERE ANY
POSSIBILITY OF US BEING ABLE TO
HAVE MORE WIND TURBINES AND WE
HAVE SOME AT BUFFALO MOUNTAIN
BUT THEY DON'T PRODUCE A LOT OF
ELECTRICITY AND SO TALK ABOUT
IS THERE ANY WAY TO GET WIND TO
TENNESSEE?
SO SUSAN, FIRST LET ME COMMENT
THAT MY OBJECTIVE ISN'T TO
ISN'T TO BUY WIND OR SOLAR OR
BUILD NUCLEAR.
MY OBJECTIVE IS TO PROVIDE
POWER AT THE LOWEST COST HIGH
RELIABILITY WITH THE LOWEST
CARBON AND DRIVE TOWARD ZERO.
IF WIND IS A GOOD RESOURCE I'M
ALL FOR IT.
IF SOLAR IS A GOOD RESOURCE,
I'M ALL FOR IT.
SO THE OBJECTIVE SHOULDN'T BE
TO BUY WIND.
THE OBJECTIVE SHOULD BE
RELIABLE LOW COST POWER, LOW
GREENHOUSE GAS EMISSIONS.
NOW WIND IS AN INTERMITTENT
RESOURCE JUST LIKE SOLAR.
LOOK TO THE ISSUES IN TEXAS
WHERE THEY WERE RELIANT ON WIND
AND WHEN THE WIND DIDN'T BLOW
IN THE TURBINES FROZE.
IT CREATED A TERRIBLE RELIABLE
THE ISSUE THAT IMPACTED PEOPLE
IN BUSINESSES.
WE'RE GOING TO AVOID THAT HERE
.
IT IS POSSIBLE THAT THERE MAY
BE WIND AVAILABLE TO IMPORT
FROM THE WEST.
THE TVA, THE PROJECT YOU'RE
TALKING ABOUT I THINK IT WAS
COLLOQUIALLY CALLED THE CLEAN
>> LINE HAD SOME REAL TECHNICAL
ISSUES WITH TRANSMITTING POWER
,TRANSMITTING INTERMITTENT
POWER THAT TYPE OVER VERY LONG
DISTANCES WITH HIGH EXPOSURES
TO TORNADO AND THE ELECTRICAL
ISSUES ASSOCIATED WITH THAT CAN
REALLY IMPACT ITS RELIABILITY
AND COST AND THAT'S WHAT
HAPPENED IN THAT CASE.
PERHAPS TECHNOLOGY WILL DEVELOP
AND WIND AT A FAVORABLE PRICE
AND HIGH RELIABILITY WILL BE
AVAILABLE TO US AND IF IT IS
WE'LL WE'LL MAKE IT PART OF THE
MIX.
WE'VE GOT