Review of Fiscal Year 2007 PwC Financial Statement Audit

TVA contracted with the independent certified public accounting firm of Pricewaterhouse-Coopers LLP (PricewaterhouseCoopers) to audit the balance sheets as of September 30, 2007, and 2006 and the related statements of income, changes in proprietary capital, and cash flows for each of the three years in the period ended September 30, 2007. The contract required the audit be done in accordance with generally accepted government auditing standards. Our review disclosed no instances where PricewaterhouseCoopers did not comply, in all material respects, with generally accepted government auditing standards.