Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 338

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 5
Chunk 338
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 operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $553 million and $518 million at December 31, 2024 and 2023, respectively.  A summary of cash flow components for the three months ended December 31, 2024 and 2023, 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 $57 million for the three months ended December 31, 2024, as compared to the same period of the prior year.  The increase was primarily due to lower purchased power payments and higher revenue collections.  This increase was partially offset by higher payroll and benefit related payments compared to the same period of the prior year.  Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in addition to higher sales volume.

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 $376 million for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily driven by increased expenditures for capacity expansion projects and nuclear fuel during the period.  Nuclear fuel expenditures vary depending on the number of outages and the prices and timing of purchases of uranium and enrichment services.

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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 $352 million for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily due to higher debt issuances as a result of a new lease financing arrangement.  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.  TV