Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 305

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 305
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ed-Storage Plant.

(4)  Purchased power (natural gas and/or oil-fired) includes generation from Caledonia Combined Cycle Plant ("Caledonia CC"), which is currently a leased facility operated by TVA.  Generation from Caledonia CC was 3,958 million kWh and 3,240 million kWh for the nine months ended June 30, 2025, and 2024, respectively.

(5)  Purchased power (other renewables) includes purchased power from the following renewable sources: solar, wind, biomass, and renewable cogeneration.  TVA acquires RECs in connection with certain purchased power transactions and sells some of these RECs to customers. 

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In addition to power supply sources included here, TVA offers energy efficiency programs that effectively reduce energy needs.  In 2025, TVA expects to invest $99 million on its energy efficiency programs and anticipates approximately 289 gigawatt hours of net incremental energy efficiency savings.

Interest Expense.  Interest expense and interest rates for the three and nine months ended June 30, 2025, and the three and nine months ended June 30, 2024, were as follows:

Interest Expense and Rates(in millions) Three Months Ended June 30Nine Months Ended June 30 20252024Percent Change20252024Percent ChangeInterest expense(1)$307 $267 15.0 %$880 $795 10.7 %Average blended debt balance(2)$22,775 $21,020 8.3 %$22,270 $20,862 6.7 %Average blended interest rate(3)5.11 %4.91 %4.1 %5.03 %4.90 %2.7 %

Notes

(1)  Includes amortization of debt discounts, issuance, and reacquisition costs, net.

(2)  Includes average balances of long-term power bonds, debt of variable interest entities ("VIEs"), and discount notes.

(3)  Includes interest on long-term power bonds, debt of VIE, and discount notes.

Total interest expense increased $40 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  This increase was