TENNESSEE VALLEY AUTHORITY EXECUTIVE LONG-TERM INCENTIVE PLAN
Note About This Exhibit 10.17
In order to focus on the goal of reducing TVA’s total financing obligations, the Executive Long-
Term Incentive Plan (“ELTIP”) administratively functioned in a manner similar to an annual incentive
plan with awards made and targets set with respect to a one year period and with payments made
in the first quarter of the following fiscal year. ELTIP awards made in the performance cycle ending
in 2006 were based solely on the reduction of TVA’s total financing obligations in 2006,
In this Exhibit 10.17, the term “base compensation” has the same meaning as the term “salary
plus additional annual compensation” has in the Annual Report to which this exhibit relates. In
addition, the term “additional annual compensation” as used in the Annual Report is synonymous
with “applicable deferred compensation” and “Deferred Compensation” as those terms are used in
this Exhibit 10.17. Also, all references made to the Executive Compensation Review Committee in
this Exhibit 10.17 are obsolete since the committee no longer exists.
TENNESSEE VALLEY AUTHORITY
EXECUTIVE LONG-TERM INCENTIVE PLAN
The Executive Long-Term Incentive Plan (ELTIP) is designed to provide Manager/Specialist
employees in “especially critical” positions with incentive opportunities based on successful
achievement of established financial and/or operational goals measured over a multi-year period.
The plan, in conjunction with base compensation and annual incentive compensation, provides total
direct compensation opportunities similar to those found at competing companies.
The Executive Long-Term incentive Plan follows three-year performance cycles. Each year of the
performance cycle follows TVA’s fiscal year (October 1 through September 30). A new three-year
performance cycle begins at the start of each fiscal year. The Plan will be effective in fiscal year