Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 595

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 11
Chunk 595
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 discretion, based on consideration of corporate factors and events that are significant during the Performance Cycle but not included or captured in the performance goals and performance measures, to reduce or increase the final LTP incentive awards for any or all participants as long as the final awards do not exceed the maximum amounts described above.

LTP Incentive Amount=TargetValue×Percent of LTI Scorecard Opportunity Achieved (0% to 200%)

For the three-year performance period ended September 30, 2025, the TVA Board previously approved four overall TVA performance measures to be applied to all participants in the LTP.  The 2023–2025 performance measures and the reasons for using these measures are described in the table below.  

Long-Term Incentive MeasuresWhy is this Measure Used?Non-Fuel Delivered Cost of PowerThis measure drives performance through activities that management can control. Italigns with TVA's strategic objective of maintaining low rates and focuses on aligning TVA’s non-fuel costs associated with generation, transmission, statutory mission services, and additional customer services with revenue. Non-Fuel Delivered Cost of Power supports retail rate objectives and aligns to the business plan commitment.Load Not ServedTVA manages this critical indicator to reduce the impact of customer outages.External Performance Indicators for the TVA Nuclear FleetThis measure is a recognized industry standard for nuclear operations performance based on safety and reliability.Powerful Partnerships SurveyThis measure supports the effective management of TVA's reputation and ability to achieve desired outcomes and deliver on strategic priorities with stakeholders.

The 2023–2025 performance measures, along with the weighting ascribed to each and actual performance, are shown below.

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Long-Term Incentive MeasuresWeightThreshold(50% Payout)Target(100% Payout)Stretch (5)(200% Payout)ActualNon-Fuel Delivered Cost of Power(1)45%3.443.313.183.39Load Not Served(2)30%4.53.93.23.0External Performance Indicators for the TVA Nuclear Fleet(3)15%94.496.098.682.3Powerful Partnerships Survey(4)10%75.079.083.076.7

Notes

(1)  Non-Fuel Delivered Cost of Power = (Non-Fuel Operating and Maintenance Expense + Base Capital Cost + Interest Expense + Other Expense) / Budgeted Electric Power Sales.  For the 2023-2025