Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 268

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 268
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  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. 

Net cash provided by financing activities increased $797 million for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily due to higher net debt issuances.  Higher net cash flows provided by operating activities were offset by higher net cash used in investing activities which resulted in the need for net debt issuances to maintain targeted cash balance levels during the period. TVA anticipates a need to increase debt in the coming years as it continues to invest in power system assets, which may result in positive net cash flows provided by financing activities in future periods.

    Contractual Obligations

TVA has certain obligations and commitments to make future payments under contracts.  TVA's contractual obligations are discussed in the Annual Report in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources, Note 8 — Leases,  Note 10 — Variable Interest Entities, Note 14  — Debt and Other Obligations, Note 20 — Benefit Plans, and Note 22 — Commitments and Contingencies.    During the six months ended March 31, 2025, TVA entered into multiple natural gas contracts totaling $680 million with new commitments from 2025 to 2035, and five new natural gas storage contracts totaling $269 million with commitments from 2025 through 2034.  In addition, TVA entered into a new power purchase agreement ("PPA") totaling $285 million with commitments from 2025 to 2028, and three new nuclear fuel contracts totaling $313 million with new commitments from 2025 through 2035.  TVA also entered into a new lease financing arrangement during the three months ended December 31, 2024.  See Note 10 — Variable Interest Entities.

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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

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