Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 69

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 15
Chunk 69
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 or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Compensation Actions

On July 23, 2025, the TVA Board took several actions related to compensation.  The TVA Board (1) established 2026 performance measures and goals for the Enterprise Scorecard for the Winning Performance Team Incentive Plan (“WPTIP”) and Executive Annual Incentive Plan (“EAIP”) and (2) established performance measures and goals for the 2026 – 2028 performance cycle under the Long-Term Incentive Plan (“LTIP”).  Each of these items is discussed in more detail below.

2026 Enterprise Scorecard for WPTIP and EAIP

The Board established the following performance measures and goals for the Enterprise Scorecard for both the WPTIP and the EAIP for 2026:  

Performance MeasureWeightThresholdTargetStretchSBU Controllable O&M and Base Capital Spend (1)40%2% SBU O&M /4% Capital Over Budget2026 Budget2% SBU O&M /4% Capital Under BudgetSerious Injury Incident Rate (2)15%0.030.010.00Transmission Performance Indicator (3)15%50100200Generation Performance Indicator (4)15%50100200Nuclear Performance Indicator (5)15%Equidistant from Target2%Comparable Fleet Top Quartile 24-month average as of September 2025

Notes

(1)  Strategic Business Unit ("SBU") Controllable Operating & Maintenance ("O&M") and Base Capital Spend equals the total Non-Fuel O&M and Base Capital expenses for corporate and operational SBU organizations (excludes Board of Directors).

(2)  The Serious Injury Incident Rate is a mathematical calculation used by Edison Electric Institute that quantifies the extent of injury for serious injuries and fatalities from events within the control of the employee and/or the employer.

(3)  Transmission Performance Indicator is an aggregate measure of the overall reliability of TVA's transmission system.

(4)  The Generation Performance Indicator is an aggregate measure of the overall reliability of TVA's power operations generation fleet based on key performance measures in Gas, Hydro, and Coal that are intended to ensure that TVA's fleet of power operations generation assets are available and reliable to meet system demand.

(5)  The Nuclear Performance Indicator is the Annualized Online Reliability Loss Factor, which is the 12-month ratio of all generation