TVA programs to improve energy efficiency and reduce peak demand on the power system exceeded their 2009 goals, saving Tennessee Valley homes and businesses energy and money and reducing the need for TVA to use more costly power resources.

In a report to the TVA Board Thursday, Nov. 19, TVA Executive Vice President of Customer Resources Ken Breeden said TVA reduced its summer peak power demand by 208 megawatts in 2009, surpassing its goal of 189 megawatts.

“In 2007, the TVA Board set a goal for us to achieve 1,400 megawatts of peak demand reduction by the end of 2012,” Mr. Breeden said. “Exceeding our goal this year keeps us on target to meet the overall goal, even with a slowed economy.”

More than half of the reduction in power demand that was achieved this year resulted from a limited test program that pays participating commercial and industrial facilities to reduce the amount of power they are using at specific times. Equipment is installed at participating facilities that is able to remotely monitor the facilities’ actual performance when called upon by TVA to reduce their energy load.

About 230 facilities are participating in this program across the Valley with a possible reduction of 122 megawatts during peak periods when power usage is high and additional power supplies may be limited or highly priced.

In other programs to reduce power demand, more than 40,000 Valley consumers participated in TVA’s Home Energy e-Valuation program in 2009. Participating consumers completed an online or mail-in evaluation of their homes’ energy usage and received free do-it-yourself home energy audit kits by mail. The kits are designed to help consumers get started with energy-efficient improvements.

TVA and local power companies began two new market tests in June, for residential customers and for businesses offering comprehensive energy assessments and financing options for qualifying projects.

The In-Home Energy Evaluation for residential customers was tested in 24 markets in 2009, and that will increase to 74 markets in 2010, Mr. Breeden told the board.

The Efficiency Advice and Incentives program for businesses is currently available in the Nashville and north Mississippi markets and will be expanded to additional markets by January 2010. TVA and distributors throughout the valley also offer a Major Industrial Program for larger industries, which provides incentive payments to industries that undergo energy assessments and implement energy-saving measures.

“We continue to work closely with the distributors of TVA power to expand these programs and to develop new programs that will help the people in the Valley save energy and money,” Mr. Breeden said.

In other matters, the board accepted the results of the 2009 Winning Performance Scorecard results, which provide the basis for incentive payouts to TVA employees who achieve their performance goals during the year. TVA President & CEO Tom Kilgore’s salary and incentive opportunities for 2010 remained the same as 2009, and Mr. Kilgore and his management team were not eligible for annual incentives based on 2009 performance or base pay increases for fiscal year 2010.