Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 10

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 10
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 increase in fuel cost recovery revenue driven by a $572 million increase attributable to higher effective fuel rates and a $98 million increase attributable to higher sales volume.  The higher effective fuel rates were due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the prior year. 

    See Sales of Electricity above for further discussion of the change in the volume of sales of electricity and Operating Expenses below for further discussion of the change in fuel expense. 

    Operating Expenses.  Operating expense components as a percentage of total operating expenses for 2025 and 2024 consisted of the following:

Operating ExpensesFor the years ended September 30(in millions)20252024ChangePercent ChangeOperating expensesFuel$2,376 $2,169 $207 9.5 %Purchased power2,106 1,581 525 33.2 %Operating and maintenance3,717 3,641 76 2.1 %Depreciation and amortization2,271 2,138 133 6.2 %Tax equivalents633 557 76 13.6 %Total operating expenses$11,103 $10,086 $1,017 10.1 %

60

The following table summarizes TVA's expenses for various fuels for the years indicated:

Fuel Expense for TVA-Operated Facilities(1)For the years ended September 30(in millions)Fuel Expense By SourceCost per kWh(4) 2025202420252024Coal(2)$826 $770 3.27 3.53 Natural gas and/or oil-fired(3)1,244 1,062 2.95 2.76 Nuclear fuel288 341 0.51 0.52 Total fuel$2,358 $2,173 1.91 1.73 

Notes

(1)  Excludes effects of the fuel cost adjustment in the amounts of $18 million and $(4) million for the years ended September 30, 2025 and 2024, respectively.  

(2)  Fuel expense related to oil consumed for startup at coal-fired facilities was $32 million and $23 million for the years ended September 30, 2025 and 2024, respectively.

(3)  Fuel expense related to oil consumed for generation at natural gas and/or oil-fired facilities was $6 million and $8 million for the