Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 277

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 277
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 the three months ended December 31, 2024. See Note 9 — Variable Interest Entities.

Key Initiatives and Challenges 

There have been no material changes to the key initiatives and challenges described in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges of the Annual Report, except as described below.

Optimum Energy Portfolio

Natural Gas-Fired Units.  As TVA continues to evaluate the impact of retiring its coal-fired fleet by 2035 and works to

accelerate the growth of renewables, it also continues to evaluate adding flexible lower carbon-emitting gas plants as a strategy

to maintain reliability.  Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 25-28 in the first quarter of 2025 and began on Units 29 and 30 in January 2025. 

TVA is replacing generation for one unit at Cumberland with a 1,450 MW combined cycle plant that is expected to be operational by the end of CY 2026.  As of December 31, 2024, TVA had spent $1.3 billion on this project.  See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Natural Gas-Fired Units in the Annual Report.

Two cases are currently pending before the United States Court of Appeals for the Sixth Circuit ("Sixth Circuit") challenging permits for a pipeline that needs to be constructed to serve the Cumberland Combined Cycle Plant.  On October 11, 2024, the Sixth Circuit issued an order staying the permit in both cases until the court can review the merits of these cases.  The Sixth Circuit heard oral arguments on the merits on December 10, 2024, but has not yet issued a ruling.  See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges —  Optimum Energy Portfolio —  Natural Gas-Fired Units in the Annual Report.

TVA is constructing 1,500 MW of natural gas generation at TVA's Kingston site that is expected to be operational by the end of CY 2027.  As of December 31, 2024, TVA had spent $1.1 billion on this project.  See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Natural