Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 437

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 437
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 sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer.  TVA has no continuing performance obligations subsequent to delivery.  Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery.  Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.The amount of revenue is based on contractual prices approved by the TVA Board.  Customers are invoiced monthly for power delivered as measured by meters located at the delivery points.  The net transaction price is offset by certain credits available to customers that are known at the time of billing.  Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  Payments are typically due within approximately one month of invoice issuance.Other RevenueOther revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, REC sales, and certain other ancillary goods or services. 

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Disaggregated RevenuesDuring 2025, revenues generated from TVA's electricity sales were $13.5 billion and accounted for virtually all of TVA's revenues.  TVA's operating revenues by state for each of the last three years are detailed in the table below:Operating Revenues By StateFor the years ended September 30(in millions) 202520242023Alabama$1,995 $1,768 $1,731 Georgia329 295 284 Kentucky850 776 773 Mississippi1,254 1,150 1,146 North Carolina88 89 89 Tennessee8,915 7,998 7,819 Virginia52 47 46 Subtotal13,483 12,123 11,888 Off-system sales7 8 14 Revenue capitalized during pre-commercial plant operations(1)(4)(3)(3)Revenue from sales of electricity13,486 12,128 11,899 Other revenue186 186 155 Total operating revenues$13,672 $12,314 $