Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 201

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 201
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 pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost.  Pre-commercial plant operations began on Paradise Combustion Turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023.  Estimated revenue of $3 million related to this project was capitalized to offset project costs for the year ended September 30, 2024.  TVA also capitalized related fuel costs for this project of $3 million for the year ended September 30, 2024.  Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during 2025.  Units 21-25 and 27-30 became operational on May 6, 2025, and Unit 26 became operational on August 20, 2025.  Estimated revenue of $4 million related to this project was capitalized to offset project costs for the year ended September 30, 2025.  TVA also capitalized related fuel costs for this project of $7 million for the year ended September 30, 2025.Property, Plant, and Equipment, and Depreciation    Property, Plant, and Equipment.  Additions to plant are recorded at cost, which includes direct and indirect costs.  The cost of current repairs and minor replacements is charged to operating expense.  When property, plant, and equipment is retired, accumulated depreciation is charged for the original cost of the assets.  Gains or losses are only recognized upon the sale of land or an entire operating unit.  TVA capitalizes certain costs incurred in connection with developing or obtaining internal-use software.  Capitalized software costs are included in Property, plant, and equipment on the Consolidated Balance Sheets and are generally amortized over seven years.  Nuclear Fuel.  Nuclear fuel, which is included in Property, plant, and equipment, is valued using the average cost method for raw materials and the specific identification method for nuclear fuel in a reactor.  Amortization of nuclear fuel in a reactor is calculated on a units-of-production basis and is included in fuel expense.TVA and the Department of Energy ("DOE") are parties to an interagency agreement (referred to as the Down-blend Offering for Tritium), under which surplus DOE highly enriched uranium and other uranium is processed by third-party contractors into low-enriched uranium, which is then fabricated into nuclear fuel