1376986--12/12/2007--Tennessee_Valley

related topics

{capital, credit, financial}

{financial, litigation, operation}

{cost, contract, operation}

{operation, natural, condition}

{cost, regulation, environmental}

{gas, price, oil}

{system, service, information}

{control, financial, internal}

{personnel, key, retain}

{condition, economic, financial}

New laws, regulations, and administrative orders may negatively affect TVA s cash flows, results of operations, and financial condition, as well as the way TVA conducts its business. TVA could lose its protected service territory. TVA could lose its protected service territory. The TVA Board could lose its sole authority to set rates for electricity. The TVA Board could lose its sole authority to set rates for electricity. TVA could become subject to increased environmental regulation. TVA could become subject to increased environmental regulation. The NRC could impose significant restrictions or requirements on TVA. The NRC could impose significant restrictions or requirements on TVA. TVA could lose responsibility for managing the Tennessee River system. TVA could lose responsibility for managing the Tennessee River system. Congress could take actions that lead to a downgrade of TVA s credit rating. Congress could take actions that lead to a downgrade of TVA s credit rating. TVA s debt ceiling could become more restrictive. TVA s debt ceiling could become more restrictive. TVA may lose some of its customers. TVA s generation and transmission assets may not operate as planned. TVA s fuel supply might be disrupted. Compliance with existing environmental laws and regulations may affect TVA s operations in unexpected ways. TVA is the sole power provider for customers within its service area, and if demand for power in TVA s service area increases, TVA is contractually obligated to take steps to meet this increased demand. Purchased power prices may be highly volatile, and providers of purchased power may fail to perform under their contracts with TVA. TVA s ability to supply power and its customers demands for power are influenced by weather conditions. TVA may incur delays and additional costs in power plant construction and may be unable to obtain necessary regulatory approval. TVA may face problems attracting and retaining skilled workers. TVA is involved in various legal and administrative proceedings whose outcomes may affect TVA s finances and operations. TVA s transmission reliability could be affected by problems at other utilities or TVA facilities. Events at non-TVA facilities which affect the supply of water to TVA s generation facilities may interfere with TVA s ability to generate power. An incident at any nuclear facility, even one that is not owned by or licensed to TVA, could result in increased expenses and oversight. Catastrophic events could affect TVA s ability to supply electricity or reduce demand for electricity. Demand for electricity supplied by TVA could be reduced by changes in technology. TVA is subject to a variety of market risks that could negatively affect TVA s cash flows, results of operations, and financial position. TVA and owners of TVA securities could be impacted by a downgrade of TVA s credit rating. TVA may have to make significant unplanned contributions to fund its pension and other postretirement benefit plans. TVA may have to make significant unplanned contributions to its nuclear decommissioning trust. TVA may be unable to meet its current cash requirements if its access to the debt markets is limited. Approaching or reaching its debt ceiling could limit TVA s ability to carry out its business. TVA s cash flows, results of operations, and financial condition could be negatively affected by economic downturns. TVA s financial control system cannot guarantee that all control issues and instances of fraud will be detected. TVA could lose the ability to use regulatory accounting and be required to write off a significant amount of regulatory assets. Risks Related to TVA Securities Payment of principal and interest on TVA securities is not guaranteed by the United States. The trading market for TVA securities might be limited.

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1376986--12/12/2007--Tennessee_Valley_Authority