Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 335

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 335
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0                    04/24/2025 5:00 PM

Operating Revenues.  Operating revenues for the three months ended March 31, 2025 and 2024, were $3.5 billion and $3.2 billion, respectively.  Operating revenues for the six months ended March 31, 2025 and 2024, were $6.5 billion and $5.9 billion, respectively.  The following table compares TVA's operating revenues for the periods indicated: 

Operating Revenues by Customer Type(in millions)Three Months Ended March 31Six Months Ended March 3120252024ChangePercent Change20252024ChangePercent ChangeOperating revenuesLocal power company customers$3,199 $2,842 $357 12.6 %$5,815 $5,329 $486 9.1 %Industries directly served245 221 24 10.9 %475 438 37 8.4 %Federal agencies and other34 30 4 13.3 %64 60 4 6.7 %Revenue capitalized during pre-commercial plant operations(1)(2)— (2)— %(2)(3)1 (33.3)%Other revenue56 61 (5)(8.2)%100 95 5 5.3 %Total operating revenues$3,532 $3,154 $378 12.0 %$6,452 $5,919 $533 9.0 %

Note

(1)  Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the six months ended March 31, 2025 and Paradise CT Units 5-7 in the six months ended March 31, 2024, all of which was recognized in the three months ended December 31, 2023. 

TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively.  Sales to MLGW and NES accounted for seven percent and eight percent, respectively, of TVA's total operating revenues for both the six months ended March 31, 2025 and the six months ended March 31, 2024.  

TVA's rate structure uses pricing signals to indicate seasons and