Mark Walker From: Sent: To: Subject: Gabriel Bolas Thursday, August 15, 2019 3:54 PM Mark Walker; Mike Bolin FW: Thank You - Partnership Proposal -----Original Message----From: Rody Blevins Sent: Thursday, August 15, 2019 3:32 PM To: Keith Hayward Cc: gregfay@clintonub.com; Mark Iverson ; djenkins@nespower.com; wes.kelley@hsvutil.org; Gabriel Bolas ; chris.jones@mtemc.com; kwest@ngemc.com; wadejd@epb.net; jferrell@jaxenergy.com; tkemp@starkvilleutilities.com; Williams, Greg ; Doug Peters Subject: Re: Thank You - Partnership Proposal [*] Warning: External Sender -Please use caution when opening files, clicking links, or providing data. Mark, Keith & Greg, I think Mark raises some very good points. Greg is also correct, we have seen movement from TVA on issues we have been working on for years. With that said, this represents the most significant change in the TVA and LPC contractural arrangement in our careers. So more time to work on this issue would be beneficial. We all need to keep in mind any system that signs a 20 year rolling contract, you are assuming you will never leave TVA regardless of what kind of future decisions they make. You are also committing all your future Boards and Management to this decision. We all know how much the power generation business is changing and where will it be ten years from now we don't know. TVA's current rates are significantly above current market rates in the Southeast. So we all need to be very careful and deliberate about this decision. One last thought for all the LPC's in the valley to consider; if the majority of the systems sign the 20 year rolling contracts what small amount of leverage we have with TVA in any kind of negotiations will be gone. To end on a positive note, I think Jeff Lyash will do a much better job than Bill Johnson. I appreciate Jeff realizing what a strong financial position TVA is in and they don't need additional rate increases. That benefits the whole valley. Thanks, 1 Rody Blevins On Aug 15, 2019, at 1:36 PM, Keith Hayward " ; wes.kelley@hsvutil.org; gabriel.bolas@kub.org; chris.jones@mtemc.com; rblevins@vec.org; kwest@ngemc.com; wadejd@epb.net; jferrell@jaxenergy.com; gregfay@clintonub.com; keith.hayward@nemepa.org; tkemp@starkvilleutilities.com; Williams, Greg > Cc: Doug Peters ; wes.kelley@hsvutil.org; gabriel.bolas@kub.org; chris.jones@mtemc.com; rblevins@vec.org; kwest@ngemc.com; wadejd@epb.net; jferrell@jaxenergy.com; gregfay@clintonub.com; keith.hayward@nemepa.org; Mark Iverson ; Williams, Greg > Subject: Thank You - Partnership Proposal All, Thank you for your valuable input during our discussions prior to the all-customer meeting and feedback since. Your input helped shape the partnership proposal term-sheet and ensure that the content is consistent with the intent and objectives. I am confident that this will better position us to serve the needs of the Valley together and take advantage of opportunities for years and decades to come. Since the all-customer meeting, the general sentiment towards the partnership proposal has been quite positive. Many local power companies have expressed interest in the proposal and are moving forward with discussions with their Boards. The TVA Board is also excited about our future partnership and collaboration. Which brings me to our next challenge and opportunity- engagement with partners to develop a path forward for flexibility and engagement in TVA's long-term planning process. I would like your thoughts in both areas and have asked Dan Pratt to follow up with each of you to get your input. He will also be planning an initial partner engagement meeting where this can be discussed in more depth. I look forward to continuing our momentum and taking decisive action in both areas. Thank you again for your input and commitment to the Valley. Jeff Confidentiality Notice: This message and any attachments are for the sole use of the intended recipient(s). It may contain confidential or proprietary information and may be subject to the attorney-client privilege or other confidentiality protections. If this message was misdirected, neither North East Mississippi Electric Power Association nor any of its subsidiaries waive any confidentiality, privilege, or trade secrets. If you are not a designated recipient, you may not review, print, copy, re-transmit, disseminate, or otherwise use this message. If you have received this message in error, please notify the sender by reply e-mail and delete this message. 4