Tennessee Valley Authority

TVA's operating revenues were $6.5 billion and $5.9 billion for the six months ended March 31, 2025 and 2024, respectively. Operating revenues increased for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily as a result of higher sales volume, effective base rates, and effective 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 an increase in heating degree days. 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 same period of the prior year.

Total operating expenses increased $374 million for the six months ended March 31, 2025, as compared to the six months ended March 31, 2024. Fuel and purchased power expense increased $183 million for the six months ended March 31, 2025, as compared to the same period of the prior year, primarily due to higher demand for purchased power as a result of less availability of nuclear generation. There was a $93 million increase in Operating and maintenance expense primarily due to increases in payroll and benefit costs related to severance costs associated with Enterprise Transformation Program ("ETP") efforts, labor escalation for cost of living increases, and additional headcount and an increase in outage expense primarily due to the scope and timing of coal and natural gas outages and an increase in nuclear outage days. In addition, Depreciation and amortization expense increased $68 million primarily as a result of increases in the amortization expense of finance leases and amortization expense of decommissioning costs recovered in rates, the decision to retire Kingston Fossil Plant ("Kingston"), 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 21-24 and 29-30 in the second quarter of 2025.

On January 22, 2025, TVA reached an all-time record high peak power demand of approximately 35,430 megawatts ("MW"). This peak was over 800 MW greater than TVA's previous all-time peak set in January 2024.