Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 298

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 298
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 and payments to states and counties in lieu of taxes ("tax equivalents") associated with the fuel cost adjustments.

TVA is required to charge rates for power that will produce gross revenues sufficient to cover various costs as discussed in Part I, Item I, Business — Rates of the Annual Report.  In August 2024, the TVA Board approved a 5.25 percent wholesale base rate increase (excluding fuel) effective October 1, 2024, primarily due to additional capacity needs and rising costs.  This rate adjustment is estimated to produce an additional $495 million of revenue during 2025.

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

The changes in revenue components are summarized below:

Changes in Revenue Components(in millions)Three Months Ended June 30Nine Months Ended June 30 20252024Change20252024ChangeBase revenueEnergy revenue$1,264 $1,195 $69 $3,855 $3,570 $285 Demand revenue1,009 930 79 3,034 2,765 269 Grid access charge161 155 6 485 466 19 Long-term partnership credits for LPCs(53)(51)(2)(164)(152)(12)Other charges and credits(1)(166)(144)(22)(522)(453)(69)Total base revenue2,215 2,085 130 6,688 6,196 492 Fuel cost recovery1,045 743 302 2,924 2,455 469 Off-system sales2 2 — 4 6 (2)Pre-commercial operations(2)(1)— (1)(3)(3)— Revenue from sales of electricity3,261 2,830 431 9,613 8,654 959 Other revenue45 49 (4)145 144 1 Total operating revenues$3,306 $2,879 $427 $9,758 $8,798 $960 

Notes

(1)  Includes economic development credits to promote growth in the Tennessee Valley, hydro preference credits for residential customers of LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand.  See Note 16 — Revenue.

(2)  Represents revenue capitalized during pre-commercial operations at Johnson