Renewable Energy + Choice by You =Power for the Future

Green Power SwitchGary Harris

Manager Green Power Switch

Tennessee Valley Authority

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What is Green Power?

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Why Start A GreenPower Program?

X Respond to customer requests

X Provide customer choice X Positive public relations

X First green power offer in TN Valley Region X Reinforces environmental stewardship role X Supplements TVA renewable energy strategy

Green Pricing Programs

4

Key Partnerships

Top Ten Performer 2001

X 8th in new renewable generation installed

X 10th in customer participation

Over 90 Active Green Pricing Program in U.S.

Third-Party Certification

Received national certification from Center for Resource Solutions

Promotes consumer confidence

Supports stakeholder involvement

Promotes new renewables and strong disclosure provisions

Center for

RESOURCE SOLUTIONS

Customer Preferences

39% 33%

32% 46%

59% 32%

72% 23%

83% 13%

Biomass - wood waste

Low impact hydro

Landfill gas

Wind

Solar

Strongly favor Somewhat favor

96%

95%

91%

78%

72%

X Twelve solar sites (250 kW) X One wind site with three turbines (2 MW)

X One landfill methane gas site (2 MW)

X One WWTP methane gas site (4 MW)

Eight Megawatts of total generation

Green Energy Sources

Solar Power Cumberland Science Museum Nashville Electric System Dollywood (2 sites) Sevier County Electric System Gibson County High School Gibson EMC Ijams Nature Center Knoxville Utilities Board Cocke County High School Newport Utilities Duffield Primary School Powell Valley EC Sic-Quest Science Museum Huntsville Utilities Finley Stadium EPB of Chattanooga Lovers Lane Soccer Complex Warren RECC Oak Ridge National Labs TVA Direct Served American Museum of Science and Energy Oak Ridge Electric Department

Wind Power Site on Buffalo Mountain in Anderson County, Tennessee

Reclaimed Strip Mine Operational November 13, 2000

20 MW of New Generation in 2003

Methane Gas

Landfill Site Located in Murfreessboro, Tennessee

City of Memphis Waste Water

Treatment Facility

Landfill Methane Gas

Waste Water Methane Gas

Residential Green Power Cost

Cost = $4/Block

1 Block = 150 kWhs

150 kWhs = 12% average monthly residential

energy use

X Protecting the environment for all childrenX Environmentally responsibleX It’s our basic responsibilityX For the sake of the planetX Cleaner power productionX It’s renewable and cleanerX It’s a good investmentX Long over dueX Don’t want to feel guilty when we turn lights onX Want to help create a demand for alternative powerX Didn’t cost much to help the environment

What Motivated You To Sign Up For GPS?

Non-ResidentialGreen Power Cost

Cost = $4/Block

1 Block = 150 kWhs

GSA1(Under 50 kW) = 5 Blocks GSA2(51kW to1000kW) = 25 Blocks or 5% of Load GSA3(1001 to 5000kW) = 250 Blocks GSB, GSC, GSD, Direct Served (Over 5000kW) = 375 Blocks

Benefits to C&ICustomers

X Marketing/PR Tool X Competitive advantage

X Establishment of an environmental record X Obtain emissions credit X Meet corporate environmental goal

X Positive EPA Recognition

Green Power PurchasersResidential4,858 sign-ups8,320 blocks

Non-Residential222 sign-ups6,069 blocks

Develop an education curriculum grades 3 to 12Materials will be available on CD free of charge.

The curriculum will include: Two-week lesson plan on:

XSolar Energy

XWind Energy

XLandfill Gas EnergyClassroom SignageMini - Solar Power Demonstration Kits

School Curriculum

Green Power Switch Purchases Environmental Benefits

Number of BlocksNumber of Green

kWh/Month Cost/MonthPounds of

aluminum recycledPounds of

newspaper recycled1 150 4 240 8832 300 8 480 1,7665 750 20 1200 4,415

10 1,500 40 2400 8,83025 3,750 100 6000 , 22,07550 7,500 200 12,000 12

1244,150

100 15,000 400 24,000 88,300150 22,500 600 36000

363

636660006

132,450250 37,500 1,000 6,0000 220,750375 56,250 1,500 9,0000 331,125500 75,000 2,000 120,000 441,500

Environmental Benefits

Make a difference.Make the Green Power Switch!For more information, visit www.greenpowerswitch.com