Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 4

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 4
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BU organizations (excludes Board of Directors).

(2)  Transmission Performance Indicator is an aggregate measure of the overall reliability of TVA's transmission system.  

(3)  The Nuclear Performance Indicator is the Annualized Online Reliability Loss Factor, which is the 12-month ratio of all generation losses minus refueling outage ("RFO") and exempt losses to reference energy generation minus RFO and exempt losses in a normal fuel cycle period, per standard industry guidelines.  This measure monitors performance between refueling outages to obtain high unit and energy production reliability.

(4)  The Power Operations Performance Indicator is an aggregate measure of the overall reliability of TVA's power operations generation fleet based on key performance measures in Gas, Hydro, and Coal that are intended to ensure that TVA's fleet of power operations generation assets is available and reliable to meet system demand.  

(5)  The Serious Injury Incident Rate is a mathematical calculation used by Edison Electric Institute that quantifies the extent of injury for serious injuries and fatalities from events within the control of the employee and/or the employer.

2026 Corporate Measure(1)WeightThresholdTargetStretchSBU Controllable O&M and Base Capital Spend 40%2% SBU O&M / 4% Capital Over Budget2026 Budget2% SBU O&M / 4% Capital Under BudgetSerious Injury Incident Rate 15%0.030.010.00Transmission Performance Indicator 15%50100200Generation Performance Indicator 15%50100200Nuclear Performance Indicator 15%Equidistant from Target2%Comparable Fleet Top Quartile 24-month average as of September 2025Note

(1)  All measures are the same as 2025; however, the Power Operations Performance Indicator is now named the Generation Performance Indicator. 

Executive Overview

TVA's operating revenues were $13.7 billion and $12.3 billion for the years ended September 30, 2025 and 2024, respectively.  Operating revenues increased for the year ended September 30, 2025 as compared to 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