Tennessee Valley Authority (NYSE:TVC) Q4 2018 Earnings Conference Call - Final Transcript

Nov 15, 2018 • 09:30 am ET


Tennessee Valley Authority (NYSE:TVC) Q4 2018 Earnings Conference Call - Final Transcript


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Good morning, everyone. Welcome to the Tennessee Valley Authority's Fiscal Year 2018 Conference Call. For your information, today's conference call is being recorded. All participants will be in a listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions)

At this time, for opening remarks, I'd like to turn the conference call over to Ms. Tammy Wilson, TVA Vice President, Treasurer, and Chief Risk Officer. Ms. Wilson, please go ahead.

Tammy Wilson

Thank you, Jamie. Good morning. It was good seeing many of you at the EEI event this week. I want to welcome you this morning to the Tennessee Valley Authority's Fiscal Year 2018 Financial Review. Leading our discussion this morning is Bill Johnson, TVA's President and Chief Executive Officer and John Thomas, TVA's Chief Financial Officer.

Bill will begin the discussion with TVA's 2018 priorities, followed by key results and events from 2018. Following Bill's remarks, John will review TVA's financial performance for fiscal year 2018. The call will then be opened up to give our participants the opportunity to ask questions.

Before we begin, I would like to point out that today's press release and TVA's annual report on Form 10-K for fiscal year ended September 30th of 2018, are available on TVA's website at www.tva.com. A replay of this call will also be available on TVA's website for a period of one year.

Today's discussion may include forward-looking statements that are subject to various risks and uncertainties, so please refer to TVA's Annual Report on Form 10-K for the fiscal year ended September 30th of 2018, for a discussion of these factors.

So with that, I will now turn the call over to TVA's President and Chief Executive Officer, Bill Johnson.

Bill Johnson

Thank you, Tammy, and good morning, everybody. Thanks for joining us on the call today. I'm pleased to say that TVA's performance for fiscal year 2018 was strong, one of the best years in our 85-year history and that's not a statement I make lightly or without empirical basis. The effective power rate that TVA customers pay has been flat now for half a decade, and retail rates in the Valley remain among the lowest in the nation.

TVA's debt is the lowest it's been in over 25 years, the majority of the electric power we're generating is from carbon-free sources, and TVA's power system is the cleanest it's been in a generation. And our power system has been delivering that power with 99.999% transmission reliability for almost two decades. These results are significant and real and benefit each of the 10 million people served today by TVA and our local power companies.

Before we discuss the past year's performance in depth, I wanted to reinforce how our mission to provide energy, environmental stewardship, and economic development has informed our decisions and helped achieve these results.

For energy, TVA delivers reliable power to residents of the Valley at the lowest feasible cost. For the environment, TVA cares for and protects our