Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 438

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 438
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12,054 Note(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in 2025 and Paradise CT Units 5-7 in 2024.     TVA's operating revenues by customer type for each of the last three years are detailed in the table below:Operating Revenues by Customer TypeFor the years ended September 30(in millions)  202520242023Revenue from sales of electricity  Local power companies$12,334 $11,138 $10,903 Industries directly served1,017 868 864 Federal agencies and other139 125 135 Revenue capitalized during pre-commercial plant operations(1)(4)(3)(3)Revenue from sales of electricity13,486 12,128 11,899 Other revenue186 186 155 Total operating revenues$13,672 $12,314 $12,054 Note(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in 2025 and Paradise CT Units 5-7 in 2024.    TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley.  In 2019, the TVA Board approved a partnership agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments.  Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice.  The partnership arrangements can be terminated under certain circumstances, including TVA's failure to limit rate increases to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the agreements.  Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period.  The total wholesale bill credits to LPCs participating in the Partnership Agreement were $231 million, $215 million, and $199 million, respectively, for the years ended September 30, 2025, 2024, and 2023.  In 2020, TVA provided participating LPCs a flexibility option, named Generation Flexibility, that allows them to locally generate or purchase up to approximately five percent of their average total hourly energy sales over a certain time period in order to meet their individual customers' needs.