Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 269

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 269
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 electricity2,876 2,731 145 Other revenue44 34 10 Total operating revenues$2,920 $2,765 $155 

Notes

(1)  Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 25-28 in the three months ended December 31, 2024 and Paradise CT Units 5-7 in the three months ended December 31, 2023.  Revenue capitalized at Johnsonville Aeroderivative was less than $1 million for the three months ended December 31, 2024.

(2)  Includes economic development credits to promote growth in the Tennessee Valley, hydro preference credits for residential customers of LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  See Note 15 — Revenue.

Operating revenues increased $155 million for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily due to a $96 million increase in base revenue.  The $96 million increase in base revenue was driven by a $54 million increase attributable to higher effective base rates and a $42 million increase attributable to higher sales volume.  The increase in effective base rates was primarily due to the 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.  In addition, there was a $47 million increase in fuel cost recovery revenue 

43

driven by a $32 million increase attributable to higher fuel rates and a $15 million increase attributable to higher sales volume.  The higher fuel rates were primarily due to higher coal prices.

See Sales of Electricity above for further discussion of the change in the volume of sales of electricity and Operating Expenses below for further discussion of the change in fuel expense.

Operating Expenses.  Operating expense components as a percentage of total operating expenses for the three months ended December 31, 2024 and December 31, 2023, consisted of the following:

Operating Expenses(in millions)Three Months Ended December 3120242023ChangePercent ChangeOperating expensesFuel$505 $496 $9 1.8 %Purchased power394 359 35 9.7 %Operating and maintenance905 867 38 4.4 %Depreciation and amortization557