Dave Flessner's questions to Texas Ventures Acquisition III (TVA) leadership • Q4 2022
Question
Dave Flessner from the Chattanooga Times Free Press asked for historical context on the projected $12 billion in capital spending over the next three years, its purpose, and the expected impact on future debt levels. He also inquired about the status of TVA's pension fund and the factors contributing to its 77% funding level.
Answer
Chief Financial and Strategy Officer John Thomas clarified that the $12 billion is for capital projects and will be funded through operating cash flow and power volumes. He noted the projected $4 billion annual spend is higher than the previous peak of $3 billion and will cover fleet maintenance, ash remediation, and capacity expansion. He projected debt would increase by about $1 billion annually for a few years. Regarding the pension, he attributed the rise to 77% funding to steady progress and the positive impact of higher interest rates on the discount rate for long-term liabilities.