Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 381

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 3
Chunk 381
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2 — 4 6 (2)Pre-commercial operations(2)(1)— (1)(3)(3)— Revenue from sales of electricity3,261 2,830 431 9,613 8,654 959 Other revenue45 49 (4)145 144 1 Total operating revenues$3,306 $2,879 $427 $9,758 $8,798 $960 

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 16 — Revenue.

(2)  Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.  

Operating revenues increased $427 million for the three months ended June 30, 2025, as compared to the same period of the prior year, primarily due to a $302 million increase in fuel cost recovery revenue.  The $302 million increase in fuel cost recovery revenue was driven by a $296 million increase attributable to higher effective fuel rates and a $6 million increase attributable to higher sales volume.  The higher effective fuel rates were due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year.  In addition, there was a $130 million increase in base revenue driven by a $104 million increase attributable to higher effective base rates and a $26 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, partially offset by a decrease in cooling degree days. 

Operating revenues increased $960 million for the nine months ended June 30, 2025, as compared to the same

period of the prior year, primarily due to a $492 million increase in