Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 432

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 432
---
 TVA continues evaluating potential supplier performance risks and supplier impact but cannot determine or predict the duration of such risks/impacts or the extent to which such risks/impacts could affect TVA's business, operations, and financial results or cause potential business disruptions.TVA continues to experience impacts due to inflation, supply chain material challenges, and labor availability.  This has led to project delays, limited availability, and/or price increases for supplies and labor.  TVA has been able to manage these challenges with limited business disruptions at this time; however, should pressures continue long term, TVA could experience more significant disruptions and pressure to further increase power rates. Natural Gas and Fuel Oil.  TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market.  TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines.  TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions.  TVA uses contracts of various lengths and terms to meet the projected natural gas needs of its natural gas fleet.  TVA also maintains on-site, fuel oil backup to operate at the majority of the CT sites in the event of major supply disruptions.  In the event a supplier experiences an incident that limits its ability to fulfill its firm contractual obligations to supply TVA with natural gas, TVA intends to leverage its storage and balancing services and/or replace the volume with a third party to ensure reliability of generation.Coal.  To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers as of June 30, 2025.  The contracted supply of coal is sourced from several geographic regions of the U.S. and is delivered via barge and rail.  As a result of emerging technologies, environmental regulations, industry trends, and natural gas market volatility over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios.  A long-term continued decline in demand for coal could result in more consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios.Nuclear Fuel.  Nuclear fuel is obtained predominantly through long-term uranium concentrate supply contracts, contracted conversion services, contracted enrichment services, or a combination thereof, and contracted fuel fabrication services.  The supply markets for uranium concentrates and certain nuclear fuel services are subject to price