Tennessee Valley Authority PARRS A 2029 (TVE) 8-K Results of Operations and Financial Condition

Financial Update

1

Performance Summary through March

2

Summary Income Statement

March 2011 Fiscal Year to Date

‘Preliminary YTD March Results - Unaudited’

3

Net Income Value Drivers

Net Income

Operating

Revenue

Sales

Weather

Impact

Economic

Indicators

Base Capital

Debt Service

EE&DR

Spend

Fuel&

Purchased

Power Expense

Purchased

Power

Rates

Hydro

Generation

Volume

Fuel Rates

4

Summary Cash Flow Statement

FYTD Total Debt

$24,275

$24,491

$216

March 2011 Fiscal Year to Date

‘Preliminary YTD March Results - Unaudited’

5

March 2011 Fiscal Year-to-Date

•  Colder weather drove higher sales and fuel expense

•  Overall net income for reinvestment greater than planned

•  Favorable cash flow from timing of construction and base
   capital spending

Forecasted Fiscal Year 2011

•Uncertainty surrounding Japanese nuclear situation

•Economic uncertainty could increase revenue volatility

•Capital expenditures will normalize

Summary

6