Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 42

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 15
Chunk 42
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 Period) or Average Gross Amount Outstanding (During Period)Discount notes$1,359$683$1,043$525Maximum Month-End Gross Amount Outstanding (During Period)Discount notesN/A$1,359N/A$1,043Weighted Average Interest RateDiscount notes4.33%4.68%5.28%5.41%

Lease Financings.  TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required to account for these VIEs on a consolidated basis.  See Note 9 — Variable Interest Entities. 

Summary Cash Flows 

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $553 million and $518 million at December 31, 2024 and 2023, respectively.  A summary of cash flow components for the three months ended December 31, 2024 and 2023, follows:

     Cash provided by (used in):

Operating Activities.  TVA's cash flows from operations are primarily driven by sales of electricity, fuel expense, and operating and maintenance expense.  The timing and level of cash flows from operations can be affected by the weather, changes in working capital, commodity price fluctuations, outages, and other project expenses.

Net cash flows provided by operating activities increased $57 million for the three months ended December 31, 2024, as compared to the same period of the prior year.  The increase was primarily due to lower purchased power payments and higher revenue collections.  This increase was partially offset by higher payroll and benefit related payments compared to the same period of the prior year.  Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in addition to higher sales volume.

Investing Activities. The majority of TVA's investing cash flows are due to investments to acquire, upgrade, or maintain generating and transmission assets, including environmental projects and the purchase of nuclear fuel.  

Net cash flows used in investing activities increased $376 million for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily driven by increased expenditures for capacity expansion projects and nuclear fuel during the period.  Nuclear fuel expenditures vary depending