Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 41

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 15
Chunk 41
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)(9.5)%$1,085 $1,137 $(52)(4.6)%Purchased power572 372 200 53.8 %966 731 235 32.1 %Operating and maintenance944 889 55 6.2 %1,849 1,756 93 5.3 %Depreciation and amortization562 530 32 6.0 %1,119 1,051 68 6.5 %Tax equivalents158 141 17 12.1 %304 274 30 10.9 %Total operating expenses$2,816 $2,573 $243 9.4 %$5,323 $4,949 $374 7.6 %

Three Months Ended March 31, 2025, Compared to Three Months Ended March 31, 2024

Fuel expense decreased $61 million for the three months ended March 31, 2025, as compared to the same period of the prior year.  A decrease of $131 million was primarily due to the deferral of significant expenses that were the result of higher than expected coal and gas prices due to colder than average temperatures and less availability of nuclear generation compared to forecast.  These deferrals will be recognized in expense as collected in customer rates in subsequent quarters.  Additionally, fuel expense decreased $18 million due to less availability of nuclear generation as compared to the same period of the prior year.  Partially offsetting these decreases was an increase of $88 million due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year.

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Purchased power expense increased $200 million for the three months ended March 31, 2025, as compared to the same period of the prior year.  This increase was primarily due to higher demand for energy with less availability of TVA nuclear generation, resulting in an increase of $276 million.  Partially offsetting this increase was a $73 million decrease in purchased power expense from lower purchased power market prices compared to the same period of the prior year.

Operating and maintenance expense increased $55 million for the three months ended March 31, 2025, as compared to the same period of the