Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 462

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 462
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 $2,596 $371 14.3 %$8,782 $7,925 $857 10.8 %Industries directly served259 205 54 26.3 %734 642 92 14.3 %Federal agencies and other36 29 7 24.1 %100 90 10 11.1 %Revenue capitalized during pre-commercial plant operations(1)(1)— (1)— %(3)(3)— — %Other revenue45 49 (4)(8.2)%145 144 1 0.7 %Total operating revenues$3,306 $2,879 $427 14.8 %$9,758 $8,798 $960 10.9 %

Note

(1)  Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023. 

TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively.  Sales to both MLGW and NES accounted for eight percent of TVA's total operating revenues for both the nine months ended June 30, 2025 and the nine months ended June 30, 2024.  

TVA's rate structure uses pricing signals to indicate seasons and hours of higher cost to serve its customers and to capture a portion of TVA's fixed costs in fixed charges.  The structure includes three base revenue components: time of use demand charges, time of use energy charges, and a grid access charge ("GAC").  The demand charges are based upon the customer's peak monthly usage.  The energy charges are based on time differentiated kWh used by the customer.  Both of these components can be significantly impacted by weather.  The GAC captures a portion of fixed costs and is offset by a corresponding reduction to the energy rates.  The GAC also reduces the impact of weather variability to the overall rate structure.

TVA has a Partnership Agreement option that better aligns the length of LPC power contracts with TVA's long-term