Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 276

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 276
---
'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.

47

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.  TVA anticipates a need to increase debt in the coming years as it continues to invest in power system assets, which may result in positive net cash flows provided by financing activities in future periods.

    Contractual Obligations

TVA has certain obligations and commitments to make future payments under contracts.  TVA's contractual obligations are discussed in the Annual Report in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources, Note 8 — Leases, Note 11 — Variable Interest Entities, Note 14  — Debt and Other Obligations, Note 20 — Benefit Plans, and Note 22 — Commitments and Contingencies.    During the three months ended December 31, 2024, TVA entered into multiple natural gas contracts totaling $640 million with new commitments from 2025 to 2035, and three new natural gas storage contracts totaling $193 million with commitments from 2025 through 2034.  In addition, TVA entered into a new power purchase agreement ("PPA") totaling $293 million with commitments from 2025 to 2028.  TVA also entered into a new lease financing arrangement during