Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 506

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 506
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awatt hour losses. Combined Cycle EFOR excludes GADS events classified as outside management control and variances.

(2)  Hydro EFOR reflects the percentage of time over a given period that a generating unit is in forced outage.  This measure includes startup failures and is based on GADS event reporting guidelines for megawatt hour losses.  Hydro EFOR excludes GADS events classified as outside management control and variances.

(3)  Coal EFOR reflects the percentage of time over a given period that a generating unit is in forced outage.  This measure includes startup failures and is based on GADS event reporting guidelines for megawatt hour losses. Coal EFOR excludes GADS events classified as outside management control and variances.

(4)  Combustion Turbine ("CT") Economic Starting Reliability reflects the percentage of successful attempts to start up a unit for generation, performance testing, or black start over a given period that a generating unit was available for TVA-operated CT assets. Total unit performance tests demonstrate that a unit will start and perform as intended.  Black start tests demonstrate that a unit will start without relying on external power and perform as intended.  CT Economic Starting Reliability excludes GADS events classified as outside management control and variances.

In setting the goal for each measure, consideration is given to TVA's historic performance, its strategic business plan priorities and strategic benchmarking goals, customer and stakeholder feedback, environmental and regulatory concerns and goals, and the competitive environment.  Achievement of the target goal would result in a 100 percent payout with respect to that goal.  A threshold goal is also set for each measure, so that no award payout would occur with respect to a measure when

performance fails to achieve that threshold.  Correspondingly, performance that equals or exceeds the stretch goal for each measure can result in a maximum earned award for that measure.  A stretch goal for each measure is set to incentivize and reward exceptional performance.  Linear interpolation is used for results between threshold and stretch goals.

2025 Enterprise Scorecard Results.  The performance results on the 2025 TVA Enterprise Scorecard are set forth below.  TVA's Enterprise Scorecard is based on a scale of 0 percent to 200 percent for all participants other than the retired CEO and resulted in a 145.6 percent of target opportunity payout.  For the retired CEO, TVA's Enterprise Scorecard is based on a scale of 0 percent to 150 percent and resulted in a 114.