Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 318

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 318
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 customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  Payments are typically due within approximately one month of invoice issuance. Directly served customersDirectly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption.  Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue.  For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer.  TVA has no continuing performance obligations subsequent to delivery.  Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery.  Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.The amount of revenue is based on contractual prices approved by the TVA Board.  Customers are invoiced monthly for power delivered as measured by meters located at the delivery points.  The net transaction price is offset by certain credits available to customers that are known at the time of billing.  Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  Payments are typically due within approximately one month of invoice issuance.Other RevenueOther revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, Renewable Energy Certificate sales, and certain other ancillary goods or services.  

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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

Disaggregated RevenuesDuring the three and six months ended March 31, 2025, revenues generated from TVA's electricity sales were $3.5 billion and $6.4 billion, respectively, and accounted for virtually all of TVA's revenues.  TVA's operating