Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 426

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 426
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 table provides additional information regarding TVA's short-term borrowings:

Short-Term Borrowings(in millions) At March 31, 2025Three Months Ended March 31, 2025Six Months Ended March 31, 2025At March 31, 2024Three Months Ended March 31, 2024Six Months Ended March 31, 2024Gross Amount Outstanding (at End of Period) or Average Gross Amount Outstanding (During Period)Discount notes$351$683$760$820$871$697Maximum Month-End Gross Amount Outstanding (During Period)Discount notesN/A$1,359$1,541N/A$1,106$1,106Weighted Average Interest RateDiscount notes4.25%4.16%4.39%5.28%5.33%5.36%

Lease Financings.  TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required to account for these VIEs on a consolidated basis.  See Note 10 — Variable Interest Entities. 

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Summary Cash Flows 

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity.  Cash, cash equivalents, and restricted cash totaled $547 million and $528 million at March 31, 2025 and 2024, respectively.  A summary of cash flow components for the six months ended March 31, 2025 and 2024, follows:

     Cash provided by (used in):

Operating Activities.  TVA's cash flows from operations are primarily driven by sales of electricity, fuel expense, and operating and maintenance expense.  The timing and level of cash flows from operations can be affected by the weather, changes in working capital, commodity price fluctuations, outages, and other project expenses.

Net cash flows provided by operating activities increased $30 million for the six months ended March 31, 2025, as compared to the same period of the prior year. The increase was primarily due to higher revenue collections.  Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in