TVA Board Meeting - FY24 Financial plan and budget- Reso-Memo
Natural Gas Financial Hedging
Financial Hedging Program reduces fuel cost uncertainty within risk limits and monitoring • Currently utilizing International Swaps and Derivatives Association (ISDA) agreements • Collateral thresholds limit TVA’s credit exposure • Liquidity risk primarily exists only in the event of a TVA downgrade in credit rating Risk oversight and monitoring • Reduction in fuel cost uncertainty and exposure monitoring informs program sizing and potential expansion • Potential future exposure stresses pricing assumptions over horizon of the portfolio (90 percent confidence interval) • Monitoring mark-to-market exposure by counterparty limits concentration risk and collection of collateral
TVA Restricted Information - Deliberative and Pre-Decisional Privileged
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