Tennessee Valley Authority

TVA's operating revenues were $3.0 billion and $2.9 billion for the three months ended December 31, 2025 and 2024, respectively. Operating revenues increased for the three months ended December 31, 2025, as compared to the same period of the prior year, primarily as a result of higher sales volume, partially offset by lower fuel cost recovery rates. The increased sales volume was primarily driven by closer to normal weather impacts as compared to the same period of the prior year and higher sales within the data processing, hosting, and related services sector. Lower fuel cost recovery rates were due primarily to more availability of nuclear generation as compared to the same period of the prior year.

Total operating expenses decreased $10 million for the three months ended December 31, 2025, as compared to the three months ended December 31, 2024. Operating and maintenance expense decreased $56 million for the three months ended December 31, 2025, as compared to the same period of the prior year primarily due to IRA tax credits recorded in the three months ended December 31, 2025. Partially offsetting this decrease was a $25 million increase in fuel and purchased power expense. This increase was primarily due to higher purchased power market prices and higher demand for energy as compared to the same period of the prior year, partially offset by decreases related to the deferral of unplanned energy demand and purchased power expenses as well as higher availability of nuclear generation. In addition, Depreciation and amortization expense increased by $14 million primarily due to increases in depreciation expense as a result of additions to net completed plant, partially offset by a decrease in depreciation expense due to the Browns Ferry Nuclear Plant ("Browns Ferry") subsequent license renewal ("SLR"). In December 2025, the Nuclear Regulatory Commission ("NRC") approved a SLR application for the three units at Browns Ferry which extended the useful life of the three nuclear units for an additional 20 years.