Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 9

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 9
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, Business — Rates — Rate Methodology.

    The changes in revenue components are summarized below:

Changes in Revenue ComponentsFor the years ended September 30(in millions) 20252024ChangePercent ChangeBase revenueEnergy revenue$5,471 $5,065 $406 8.0 %Demand revenue4,238 3,891 347 8.9 %Grid access charge646 622 24 3.9 %Long-term partnership credits for LPCs(231)(215)(16)7.4 %Other charges and credits(1)(709)(638)(71)11.1 %Total base revenue9,415 8,725 690 7.9 %Fuel cost recovery4,068 3,398 670 19.7 %Off-system sales7 8 (1)(12.5)%Pre-commercial operations(2)(4)(3)(1)33.3 %Revenue from sales of electricity13,486 12,128 1,358 11.2 %Other revenue186 186 — — %Total operating revenues$13,672 $12,314 $1,358 11.0 %

59

Notes

(1)  Includes economic development credits to promote growth in the Tennessee Valley, hydro preference credits for residential customers of LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  See Note 18 — Revenue.

(2)  Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in 2025 and Paradise CT Units 5-7 in 2024.

    Operating revenues increased $1.4 billion for the year ended September 30, 2025, as compared to the prior year, primarily due to a $690 million increase in base revenue.  The $690 million increase in base revenue was driven by a $400 million increase attributable to higher effective base rates and a $290 million increase attributable to higher sales volume.  The increase in effective base rates was primarily due to the TVA Board action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024.  The higher sales volume was driven primarily by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector.  In addition, there was a $670 million