Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 495

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 495
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 Rausch informed Mr. Moul of his intention to separate from service no later than March 1, 2026.  As of September 30, 2025, Mr. Rausch was not performing the functions of an executive officer. 

(6)  Mr. Fountain separated from service from TVA on June 1, 2025.

Executive Summary

Financial Performance Highlights Related to Incentive Plans.   For 2025, the scorecard results for the Executive Annual Incentive Plan ("EAIP") were 145.6 percent of the target opportunity, except for the retired CEO, for whom the scorecard results were 114.8 percent.  The following factors contributed to overall performance:

•Achieved top decile performance in Serious Injury Incident Rate;

•Remained in sound financial health; 

•Strong combined cycle, hydro, and coal reliability performance achieved during record demand peaks; and

•Lower than threshold Nuclear Performance Indicator due to unplanned outages and derates at all sites.

In addition, for the three-year performance cycle ending September 30, 2025, the TVA Board approved a Long-Term Performance (“LTP”) payout of 98 percent of the target opportunity for all participants except for the retired CEO.  For the retired CEO, the TVA Board approved a payout of 83 percent, which reflects the LTP Scorecard range of 0 percent to 150 percent for the retired CEO. The following factors contributed to overall performance: 

•Maintained competitiveness in total effective power rates;

•Strengthened the grid with several enhancements, including installations of 114 miles of transmission line and 249 miles of fiber;

•Strong transmission system reliability performance;

•Strong customer survey results; and 

•Lower than threshold External Performance Indicators for the TVA Nuclear Fleet due to unplanned outages and derates at all sites.

Changes to Compensation Plans.  On January 30, 2025, TVA amended and restated the EAIP to eliminate the use of the corporate multiplier and to authorize the TVA Board to utilize a standard discretionary range to adjust the scorecard achievement by plus or minus 20 percent beginning with the 2025 performance cycle.  This standard discretionary range allows the TVA Board to account for extraordinary events or significant occurrences that impact TVA’s performance, among other things.

In addition, on March 25, 2025, in connection with approving the appointment of Mr. Moul as President and CEO, the