Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 94

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 2
Chunk 94
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 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 

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nuclear fuel contracts with new commitments from 2028 through 2035.  In addition, TVA entered into a new power purchase agreement ("PPA") totaling $293 million with commitments from 2025 to 2028, of which $23 million is estimated to be paid during the remainder of 2025, and three new long-term service agreements totaling $200 million with commitments from 2025 to 2045, of which less than $1 million is estimated to be paid during the remainder of 2025.

Key Initiatives and Challenges 

There have been no material changes to the