TVA Board Meeting - FY24 Financial plan and budget- Reso-Memo
Financial Hedging Impact
Commodity price hedging reduces fuel cost and wholesale rate ranges (~one percent wholesale rate impact per ~$120 million of fuel cost uncertainty reduction)
Wholesale Rate Impacts
Fuel Cost Uncertainty
¢/kWh
$ million
14% reduction
21% reduction
Price Hedging Impact
Price Hedging Impact
44% reduction
1.6%
2.2%
P95 Range
8.7%
7.4%
P95 Range
2.3%
4.3%
-5.4%
-7.2%
P5 Range
-3.0% -2.4%
Price Hedging Impact
-1.7%
P5 Range
-1.0%
Price Hedging Impact
Price hedging impact reflects potential fuel cost reduction (90 percent confidence interval) if TVA hedged at current established Natural Gas hedge ladder limits (60 percent, 40 percent, and 25 percent for each year, respectively)
TVA Restricted Information - Deliberative and Pre-Decisional Privileged
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