Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 203

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 2
Chunk 203
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 generation at Kingston.  Appalachian Voices alleges that TDEC unlawfully issued a construction permit that would allow TVA to construct the plant without meeting the requirements set forth in the Clean Air Act’s Prevention of Significant Deterioration program.  Among other things, Appalachian Voices is requesting that the Tennessee Air Pollution Control Board stay the effectiveness of the permit and order TDEC to revoke the permit.  On January 7, 2025, TVA filed a petition to intervene in the administrative proceeding, which was granted on January 15, 2025.

ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") explains the results of operations and general financial condition of the Tennessee Valley Authority ("TVA").  The MD&A should be read in conjunction with the accompanying unaudited consolidated financial statements and TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report").

Executive Overview

TVA's operating revenues were $2.9 billion and $2.8 billion for the three months ended December 31, 2024 and 2023, respectively.  Operating revenues increased for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily as a result of higher effective base rates, sales volume, and fuel rates.  Effective base rates were higher primarily due to the TVA Board of Directors ("TVA Board") action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024.  The higher sales volume was driven primarily by increases within the data processing, hosting, and related services sector, and higher fuel rates were primarily due to higher coal prices.

Total operating expenses increased $131 million for the three months ended December 31, 2024, as compared to the three months ended December 31, 2023.  Fuel and purchased power expense increased $44 million for the three months ended December 31, 2024, as compared to the same period of the prior year, primarily due to less availability of nuclear generation and higher coal prices.  There was a $38 million increase in Operating and maintenance expense primarily due to increases in payroll and benefit costs related to labor escalation for cost of living increases and additional headcount to support operational needs and outage expense primarily due to an increase in nuclear outage days