Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 153

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 153
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 approved pandemic credits, which were effective in 2023.  These credits provided an annual 2.5 percent monthly base rate credit and applied to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers.  For the year ended September 30, 2023, pandemic credits totaled $225 million. The pandemic credits ended September 30, 2023.The number of LPCs by contract arrangement, the revenues derived from such arrangements for 2025, and the percentage those revenues comprised of TVA's total operating revenues for 2025, are summarized in the table below:TVA Local Power Company ContractsAt or for the year ended September 30, 2025Contract Arrangements(1)Number of LPCs Revenue from Sales of Electricity to LPCs(in millions)Percentage of Total Operating Revenues20-year termination notice148 $10,636 77.8 %5-year termination notice5 1,698 12.4 %Total153 $12,334 90.2 %Note(1)  Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority).  Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.                                                                                                                  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 nine percent and eight percent, respectively, of TVA's total operating revenues in 2025, 2024, and 2023.Contract Balances    Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers.  TVA did not have any material contract assets at September 30, 2025.      Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers.  These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance