Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 208

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 208
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’s order approving the pipeline.  The D.C. Circuit heard oral arguments on the merits on March 4, 2025, but has not yet issued a ruling. TVA, the Tennessee Valley Public Power Association, and Tennessee Gas Pipeline Company, L.L.C., which has contracted with TVA to build and operate the pipeline, have intervened in the proceeding.  TVA cannot predict the outcome of this litigation. 

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") explains the results of operations and general financial condition of the Tennessee Valley Authority ("TVA").  The MD&A should be read in conjunction with the accompanying unaudited consolidated financial statements and TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report").

Executive Overview

TVA's operating revenues were $9.8 billion and $8.8 billion for the nine months ended June 30, 2025 and 2024, respectively.  Operating revenues increased for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily as a result of higher effective fuel rates, higher effective base rates, and increased sales volume.  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.  Effective base rates were higher primarily due to the TVA Board of Directors ("TVA Board") action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024.  The increased sales volume was primarily driven 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. 

Total operating expenses increased $743 million for the nine months ended June 30, 2025, as compared to the nine months ended June 30, 2024.  Fuel and purchased power expense increased $490 million for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily due to higher demand for purchased power as