Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 410

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 410
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 aside FERC’s order approving the pipeline.  The D.C. Circuit heard oral arguments on the merits on March 4, 2025, but has not yet issued a ruling. TVA, the Tennessee Valley Public Power Association, and Tennessee Gas Pipeline Company, L.L.C., which has contracted with TVA to build and operate the pipeline, have intervened in the proceeding.  TVA cannot predict the outcome of this litigation. 

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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") explains the results of operations and general financial condition of the Tennessee Valley Authority ("TVA").  The MD&A should be read in conjunction with the accompanying unaudited consolidated financial statements and TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report").

Executive Overview

TVA's operating revenues were $6.5 billion and $5.9 billion for the six months ended March 31, 2025 and 2024, respectively.  Operating revenues increased for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily as a result of higher sales volume, effective base rates, and effective fuel rates.  Effective base rates were higher primarily due to the TVA Board of Directors ("TVA Board") action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024.  The higher sales volume was driven primarily by increases within the data processing, hosting, and related services sector and an increase in heating degree days.  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.

Total operating expenses increased $374 million for the six months ended March 31, 2025, as compared to the six months ended March 31, 2024.  Fuel and purchased power expense increased $183 million for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily due to higher demand for purchased power as a result of less availability of nuclear generation.  There was a $93 million