Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 476

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 476
---
 of debt instruments to maintain a strategic balance of cash on hand. 

Net cash provided by financing activities increased $944 million for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily due to higher debt issuances and proceeds from debt of variable interest entities.  Higher net cash flows provided by operating activities were offset by higher net cash used in investing activities which resulted in the need for net debt issuances to maintain targeted cash balance levels during the period.  TVA anticipates a need to increase debt in the coming years as it continues to invest in power system assets, which may result in positive net cash flows provided by financing activities in future periods.

    Contractual Obligations

TVA has certain obligations and commitments to make future payments under contracts.  TVA's contractual obligations are discussed in the Annual Report in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources, Note 8 — Leases,  Note 10 — Variable Interest Entities, Note 14  — Debt and Other Obligations, Note 20 — Benefit Plans, and Note 22 — Commitments and Contingencies.    During the nine months ended June 30, 2025, TVA’s fuel purchase obligations increased $862 million primarily due to new and/or extended contracts for natural gas, natural gas storage, coal, and nuclear fuel.  Natural gas commitments increased $145 million as a result of entering into multiple natural gas contracts with new commitments from 2025 to 2035, of which $120 million is estimated to be paid during the remainder of 2025.  Natural gas storage commitments increased $285 million as a result of entering into three new contracts and extending three contracts, which increased commitments from 2025 through 2034, of which $7 million is estimated to be paid during the remainder of 2025.  Coal commitments increased by $369 million due primarily to entering into three new coal contracts with new commitments from 2025 through 2029, of which $64 million is estimated to be paid during the remainder of 2025.  Nuclear fuel commitments increased $118 million due primarily to three new 

52

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

nuclear fuel contracts with new commitments from 2028 through 2035.  In addition,