Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 279

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 279
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.  TVA has no continuing performance obligations subsequent to delivery.  Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery.  Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.The amount of revenue is based on contractual prices approved by the TVA Board.  Customers are invoiced monthly for power delivered as measured by meters located at the delivery points.  The net transaction price is offset by certain credits available to customers that are known at the time of billing.  Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  Payments are typically due within approximately one month of invoice issuance.Other RevenueOther revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, Renewable Energy Certificate sales, and certain other ancillary goods or services.  

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

Disaggregated RevenuesDuring the three and nine months ended June 30, 2025, revenues generated from TVA's electricity sales were $3.3 billion and $9.6 billion, respectively, and accounted for virtually all of TVA's revenues.  TVA's operating revenues by state for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:Operating Revenues By State(in millions)Three Months Ended June 30Nine Months Ended June 30 2025202420252024Alabama$477 $409 $1,428 $1,274 Georgia74 65 242 214 Kentucky209 179 605 557 Mississippi310 277 886 816 North Carolina18 19 67 70 Tennessee2,161 1,869 6,345 5,685 Virginia11 10 39 35 Subtotal3,260 2,828 9,612 8,651 Off-system sales2 2 4 6 Revenue capitalized