Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 23

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 23
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 Includes commitments for energy and/or capacity under power purchase agreements ("PPAs") from hydroelectric, diesel, renewable, and gas-fired facilities, as well as transmission service agreements to support purchases of power from the market.  Certain PPAs are accounted for as leases and have lease and non-lease components.  For these contracts, the lease component is included in lease obligations (see Note 9 — Leases) and the non-lease component is included in power purchase obligations in the table above.  For PPA contracts containing a lease component that have not commenced, the entire commitment amount is included in the table above.

(3)  Includes commitments to purchase nuclear fuel, coal, and natural gas, as well as related transportation and storage services.

(4)  Primarily includes long-term service contracts, contracts that contain minimum purchase levels for the purchase of limestone along with related storage and transportation, and contractual obligations related to TVA's load control program.

EnergyRight® Program.  TVA purchases certain loans receivable from its LPCs in association with the EnergyRight® program.  Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years.  The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loan receivable that has been in default for 180 days or more or that TVA has determined is uncollectible.  At September 30, 2025, the total carrying amount of the loans receivable, net of discount, was $57 million.  Such amounts are not reflected in the Other Commitments and Contingencies table above.  The total carrying amount of the financing obligation was $66 million at September 30, 2025.  See Note 10 — Other Long-Term Assets and Note 13 — Other Long-Term Liabilities for additional information.

Key Initiatives and Challenges

Capacity

TVA is focused on building an American energy future — one that provides energy security and national security.  Additional load growth for the foreseeable future is expected to challenge TVA's capacity position.  New capacity will be needed to support this load growth, replace retiring and expiring capacity, and enable further electrification of the economy.  TVA continues to evaluate adding flexible gas plants as a strategy to maintain reliability.  TVA is also committed to investing in the future of nuclear with the evaluation of emerging advanced nuclear technologies, such as small modular reactors ("SMRs"), and