Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 215

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 215
---
period of the prior year, primarily due to a $492 million increase in base revenue.  The $492 million increase in base revenue was driven by a $262 million increase attributable to higher effective base rates and a $230 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 higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector, partially offset by a decrease in cooling degree days.  In addition, there was a $469 million increase in fuel cost recovery revenue driven by a $401 million increase attributable to higher effective fuel rates and a $68 million increase attributable to higher sales volume.  The 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. 

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 and nine months ended June 30, 2025 and 2024, consisted of the following:

46

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

Operating Expenses(in millions)Three Months Ended June 30Nine Months Ended June 3020252024ChangePercent Change20252024ChangePercent ChangeOperating expensesFuel$589 $424 $165 38.9 %$1,674 $1,561 $113 7.2 %Purchased power550 408 142 34.8 %1,516 1,139 377 33.1 %Operating and maintenance922 915 7 0.8 %2,771 2,671 100 3.7 %Depreciation and amortization572 542 30 5.5 %1,691 1,593 98 6.2 %Tax equivalents156 131 25 19.1 %460 405 55 13.6 %Total operating expenses$2,789 $2,420 $369 15.2