Tennessee Valley Authority

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. In addition, Depreciation and amortization expense increased $36 million primarily as a result of the decision to retire Kingston Fossil Plant ("Kingston"), increases in the amortization of finance leases and retirement of regulatory assets, and additions to net completed plant.

Pre-commercial plant operations began on Johnsonville Aeroderivative combustion turbine ("CT") Units 25-28 in the first quarter of 2025 and began on Units 29 and 30 in January 2025.

On January 22, 2025, TVA reached a preliminary all-time record high peak power demand of approximately 35,319 megawatts ("MW"). This estimated peak was over 700 MW greater than TVA's previous all-time peak set in January 2024.