Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 239

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 239
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(in millions)Three Months Ended March 31Six Months Ended March 31 2025202420252024Revenue from sales of electricity  Local power companies$3,199 $2,842 $5,815 $5,329 Industries directly served245 221 475 438 Federal agencies and other34 30 64 60 Revenue capitalized during pre-commercial plant operations(1)(2)— (2)(3)Revenue from sales of electricity3,476 3,093 6,352 5,824 Other revenue56 61 100 95 Total operating revenues$3,532 $3,154 $6,452 $5,919 Note(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the six months ended March 31, 2025 and Paradise CT Units 5-7 in the six months ended March 31, 2024, all of which was recognized in the three months ended December 31, 2023.  TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley.  In 2019, the TVA Board approved a partnership agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments.  Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice.  The partnership arrangements can be terminated under certain circumstances, including TVA’s failure to limit rate increases to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the agreements.  Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period.  The total wholesale bill credits to LPCs participating in the Partnership Agreement were $61 million and $54 million for the three months ended March 31, 2025 and 2024, respectively.  The total wholesale bill credits to LPCs participating in the Partnership Agreement were $111 million and $101 million for the six months ended March 31, 2025 and 2024, respectively.  In 2020, TVA 

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