Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 383

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 3
Chunk 383
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.1 %

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024

Fuel expense increased $165 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  This increase was primarily driven by an increase in fuel cost recovery of $127 million due to the collection of significant fuel costs from the previous quarter that were the result of higher than expected coal and natural gas prices due to colder than average temperatures.  Additionally, fuel expense increased $53 million primarily due to higher effective fuel rates related 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.  Partially offsetting this increase was a decrease of $15 million due to less availability of nuclear generation and more availability of hydro generation as compared to the same period of the prior year. 

Purchased power expense increased $142 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  This increase was primarily due to an increase of $82 million from higher purchased power market prices compared to the same period of the prior year.  Additionally, purchased power expense increased $52 million due to higher demand for energy with less availability of TVA nuclear generation.  Purchased power expense also increased $8 million 

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due to the recovery of purchased power costs from the previous quarter that were the result of higher than expected purchased power prices due to colder than average temperatures.

Operating and maintenance expense increased $7 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  This increase was primarily due to a $19 million increase in outage expense primarily due to an increase in nuclear outage days.

Depreciation and amortization expense increased $30 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  The increase was primarily driven by a $9 million increase in amortization expense of finance leases and amortization expense of decommissioning costs recovered in rates, as well as an increase due to depreciation of additions to net completed plant.

Tax equivalents expense increased $25 million for the three months ended June 30, 2025, as compared to the same