Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 225

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 225
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 its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required to account for these VIEs on a consolidated basis.  See Note 10 — Variable Interest Entities. 

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

Summary Cash Flows 

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $522 million and $521 million at June 30, 2025 and 2024, respectively.  A summary of cash flow components for the nine months ended June 30, 2025 and 2024, follows:

     Cash provided by (used in):

Operating Activities.  TVA's cash flows from operations are primarily driven by sales of electricity, fuel expense, and operating and maintenance expense.  The timing and level of cash flows from operations can be affected by the weather, changes in working capital, commodity price fluctuations, outages, and other project expenses.

Net cash flows provided by operating activities increased $137 million for the nine months ended June 30, 2025, as compared to the same period of the prior year.  The increase was primarily due to higher revenue collections.  Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in addition to higher sales volume and higher effective fuel rates.  This increase was partially offset by higher payroll and benefit-related payments in addition to higher fuel and purchased power payments as compared to the same period of the prior year.

Investing Activities. The majority of TVA's investing cash flows are due to investments to acquire, upgrade, or maintain generating and transmission assets, including environmental projects and the purchase of nuclear fuel.  

Net cash flows used in investing activities increased $1.1 billion for the nine months ended June 30, 2025, as compared to the same period of the prior year, driven by increased expenditures for capacity expansion projects, primarily related to natural gas plant builds and upgrades to the nuclear fleet.  

Financing Activities.  TVA's cash flows provided by or used in financing activities are primarily driven by the timing and level of cash flows provided by operating activities, cash flows used in investing activities, and net issuance and redemption of debt instruments to maintain a strategic balance of cash on hand.