TVA Quarterly Board Meeting, Apr. 18, 2013 at Columbia, Tn. - Special Disclosure on TVA Nuclear Decommissioning Fund Status

 

AGENDA

 

BEST/MATRR short video of Listening Session




BEST/MATRR short video of the Board Meeting, Finance highlights



TVA's videos and presentation of the Apr. 18, 2013 Quarterly Board Meeting
Links:
News Release
TVA Presentation (PDF)
Video of listening session (Windows Media)
Video of meeting (Windows Media)
Video shown at meeting (Windows Media)

TVA Privatization
The TVA has been ablaze with discussion as of late concerning President Obama's budget proposal concerning the TVA. Bloomberg on the issue: http://www.bloomberg.com/news/2013-04-11/obama-mulls-sale-of-tennessee-valley-authority-in-budget-plan.html "President Barack Obama is considering the sale of all or part of the Tennessee Valley Authority (3015A), the largest publicly owned U.S. power company, in a deal that may raise as much as $35 billion as the administration seeks to reduce the national debt."

"A potential sale is part of a “strategic review” of the Knoxville, Tennessee-based nonprofit, which faces increasing capital costs, according to the administration’s fiscal 2014 budget proposal released yesterday. A sale may yield $30 billion to $35 billion in cash and reduced government debt obligations, said Travis Miller, a Chicago-based analyst for Morningstar Inc. (MORN) "

TVA leadership welcomes debt review: http://www.timesfreepress.com/news/2013/apr/19/tva-leaders-welcome-debt-review/  "President and CEO Bill Johnson and board Chairman Bill Sansom said they believe TVA is "a good business model" that is funded totally by ratepayers, not taxpayers.
"We'll cooperate and participate, and we're glad to see the review. In the meantime, we've got to focus and direct management's attention on running the place right," Sansom said at a board meeting Thursday in Columbia, Tenn."

Nuclear Decommissioning - NRC's out of date plan and policy: http://www.nrc.gov/reading-rm/doc-collections/fact-sheets/decommissioning.html

TVA Funds - Nuclear decommissioning trust fund balance at the end of fiscal 2012 (Sept. 30, 2012) $1,165,216,096;  2011 was $945,961,913; 2009 was $660.5 million. Information provided via request to TVA.

TVA's Nuclear Decommissioning Fund status in its annual SEC 10K report will not be found and the report listing is confusing. TVA's 2012 10K Annual Financial Report reflects deferred costs, page 98. No where in the financial report are the actual decommissioning funds on hand listed. Pg 73 contains a discussion. http://investor.shareholder.com/tva/secfiling.cfm?filingID=1376986-12-43

 

"GAO investigated 12 reactors’ trust funds, comparing company-prepared site-specific decommissioning cost estimates to NRC’s formula. For nine reactors, NRC’s formula resulted in funds below the companies’ estimates. In one case, a company believed it needed $836 million, which was $362 million more than NRC’s formula figure. GAO also noted NRC’s funding formula was more than 30 years old." http://cen.acs.org/articles/91/i13/Nuclear-Retirement-Anxiety.html

"Decommissioning a Nuclear Plant Can Cost $1 Billion and Take Decades:" http://www.reuters.com/article/2011/06/13/idUS178883596820110613

TVA's nuclear decommissioning funds on hand are not sufficient and rely on NRC's 30 year antiquated policy. Current TVA nuclear plant decommissioning fund status below as reported to the NRC.

Nuclear decommissioning trust fund balance at the end of fiscal 2012 (Sept. 30, 2012) $1,165,216,096.

Current long operating nuclear plant decommissioning costs per plant are estimated to be $800-$900 million per reactor. TVA is seriously lacking in their decommissioning fund.  (Decommissioning Trust Fund Balance provided by TVA. The table reflects the official report provided the NRC.) 

Silly "AFP" - here is the You Tube address: http://youtu.be/paxDogM6MjU they post this video on You Tube, a Google entity, but AFP will not allow a You Tube video to be played on Google Blogger?