Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 209

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 2
Chunk 209
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 generation, resulting in an increase of $80 million.  Partially offsetting this increase was a $45 million decrease in purchased power expense from lower purchased power market prices compared to the same period of the prior year.

Operating and maintenance expense increased $38 million for the three months ended December 31, 2024, as compared to the same period of the prior year. This increase was primarily due to $28 million of increased payroll and benefit costs primarily due to labor escalation for cost of living increases and additional headcount to support operational needs and a $28 million increase in outage expense primarily due to an increase in nuclear outage days. Partially offsetting these increases was a decrease in contract labor of $20 million primarily due to more natural gas project work in the prior year.

Depreciation and amortization expense increased $36 million for the three months ended December 31, 2024, as compared to the same period of the prior year.  The increase was primarily driven by an increase in depreciation expense of $9 million related to the decision in April 2024 to retire Kingston and an $8 million increase in both amortization expense of finance leases and retirement of regulatory assets.  Additionally, there was an increase due to depreciation of additions to net completed 

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plant.  

Tax equivalents expense increased $13 million for the three months ended December 31, 2024, as compared to the same period of the prior year.  This change is primarily driven by an increase in TVA's revenue from sales of electricity in 2024, which is used as the basis for calculating tax equivalent expense.

Generating Sources.  The following tables show TVA's generation and purchased power by generating source as a percentage of all electrical power generated and purchased (based on kWh) for the periods indicated.

Total Power Supply by Generating SourceFor the three months ended December 31(millions of kWh) 20242023Nuclear13,990 36 %17,851  47 %Natural gas and/or oil-fired(1)8,862 23 %7,513  20 %Coal-fired5,336 14 %4,320  11 %Hydroelectric3,359 8 %2,496  7 %Total TVA-operated generation facilities(2)(3)31,547 81 %32,180  85 %Purchased power (natural gas and/or oil-fired)(4)4,041 11 %3