Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 300

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 300
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 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:

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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 %$8,112 $7,369 $743 10.1 %

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024

Fuel expense increased $165 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  This increase was primarily driven by an increase in fuel cost recovery of $127 million due to the collection of significant fuel costs from the previous quarter that were the result of higher than expected coal and natural gas prices due to colder than average temperatures.  Additionally, fuel expense increased $53 million primarily due to higher effective fuel rates related 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.  Partially offsetting this increase was a decrease of $15 million due to less availability