To the Roane County Community Advisory Group

July 22, 2010

· Kingston Fossil Plant Scrubber

Commissioning of the scrubber at the Kingston Fossil Plant is continuing as planned. During the commissioning, and to help TVA meet high power demand during this time of extreme heat, the plant is running between five and nine generating units. To meet the plant’s increased demand for coal, more coal trains will be arriving at the plant. When logistically possible, the recovery project will continue to ship seven trainloads of ash each week to the licensed landfill in Alabama.

· Dredge Dismantlement

Now that the work of the hydraulic dredges is finished, they are being dismantled and transported to a local storage facility. Two of the five have been moved into storage already, and work is in progress to dismantle and remove the other three.

· Ongoing Utility Upgrades and Enhancements

Utility restoration and enhancement work along Swan Pond Road is ahead of schedule and could be finished by Friday, July 23. The section of the road that has been periodically closed while construction is under way will be reopened to normal traffic as soon as the work is completed. We appreciate Swan Pond community residents for their patience while this work has been going on.

Utility work at the corner of State Highway 70 and Swan Pond Road is complete. Next week, TVA will begin installation of the Harriman Utility Board 20-inch effluent line. The work will begin in front of the Kingston Ash Recovery Project trailers, between Swan Pond Road and the railroad and continue north to Swan Pond Circle Road. Most of the work will be performed in the deep trench area between the railroad and Swan Pond Road. Only one lane of traffic will be affected intermittently to deliver material and move heavy equipment. Flaggers will be used when needed.

Customers will be connected to the new utility lines in August.

· Deep Soil Mixing Process

Testing of a deep soil mixing process that will be used to build the containment structure for the closed dredge cell at the Kingston Fossil Plant began last week. The equipment used in the process can be seen by residents and motorists along Swan Pond Road and Swan Pond Circle Road near the recovery site.

During the testing, concrete and other materials are mixed with soil at depths up to 70 feet to form “soilcrete” columns. When finished, most of the equipment will be removed from the site. The soilcrete columns will be allowed to cure for 28 days before their strength is tested. The results will help refine the design and construction parameters of the containment structure.