Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 344

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 344
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 CC was 2,724 million kWh and 1,876 million kWh for the six months ended March 31, 2025, and 2024, respectively.

(5)  Purchased power (other renewables) includes purchased power from the following renewable sources: solar, wind, biomass, and renewable cogeneration.  TVA acquires RECs in connection with certain purchased power transactions and sells some of these RECs to customers. 

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In addition to power supply sources included here, TVA offers energy efficiency programs that effectively reduce energy needs.  In 2025, TVA expects to invest $99 million on its energy efficiency programs and anticipates approximately 304 gigawatt hours of net incremental energy efficiency savings.

Interest Expense.  Interest expense and interest rates for the three and six months ended March 31, 2025, and the three and six months ended March 31, 2024, were as follows:

Interest Expense and Rates(in millions) Three Months Ended March 31Six Months Ended March 31 20252024Percent Change20252024Percent ChangeInterest expense(1)$293 $266 10.2 %$573 $528 8.5 %Average blended debt balance(2)$22,527 $20,956 7.5 %$22,018 $20,783 5.9 %Average blended interest rate(3)4.97 %4.90 %1.4 %4.98 %4.90 %1.6 %

Notes

(1)  Includes amortization of debt discounts, issuance, and reacquisition costs, net.

(2)  Includes average balances of long-term power bonds, debt of variable interest entities ("VIEs"), and discount notes.

(3)  Includes interest on long-term power bonds, debt of VIE, and discount notes.

Total interest expense increased $27 million for the three months ended March 31, 2025, as compared to the same period of the prior year.  This increase was primarily driven by a $13 million increase in interest on other financing leases, primarily the new lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG"), a $10 million increase from higher average balances of long-term debt