Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 348

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 348
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 Cash Flows 

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $547 million and $528 million at March 31, 2025 and 2024, respectively.  A summary of cash flow components for the six months ended March 31, 2025 and 2024, follows:

     Cash provided by (used in):

Operating Activities.  TVA's cash flows from operations are primarily driven by sales of electricity, fuel expense, and operating and maintenance expense.  The timing and level of cash flows from operations can be affected by the weather, changes in working capital, commodity price fluctuations, outages, and other project expenses.

Net cash flows provided by operating activities increased $30 million for the six months ended March 31, 2025, as compared to the same period of the prior year. The increase was primarily due to higher revenue collections.  Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in addition to higher sales volume.  This increase was partially offset by higher payroll and benefit related payments as compared to the same period of the prior year.

Investing Activities. The majority of TVA's investing cash flows are due to investments to acquire, upgrade, or maintain generating and transmission assets, including environmental projects and the purchase of nuclear fuel.  

Net cash flows used in investing activities increased $810 million for the six months ended March 31, 2025, as compared to the same period of the prior year, driven by increased expenditures for capacity expansion projects, primarily related to two natural gas plant builds at Cumberland and Kingston.

Financing Activities.  TVA's cash flows provided by or used in financing activities are primarily driven by the timing and level of cash flows provided by operating activities, cash flows used in investing activities, and net issuance and redemption of debt instruments to maintain a strategic balance of cash on hand. 

Net cash provided by financing activities increased $797 million for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily due to higher net debt issuances.  Higher net cash flows provided by operating activities were offset by higher net cash used in investing activities which resulted in the need for net debt issuances to maintain targeted cash balance levels during the period. TVA anticipates a need to increase debt in the coming years as it continues to invest in power system assets,