Tennessee Valley Authority

TVA's operating revenues were $6.6 billion and $6.5 billion for the six months ended March 31, 2026 and 2025, respectively. Operating revenues increased for the six months ended March 31, 2026, as compared to the same period of the prior year, primarily as a result of higher sales volume and higher fuel cost recovery rates. The increased sales volume was primarily driven by higher sales within the data processing, hosting, and related services sector. Higher fuel cost recovery rates were due primarily to higher fuel rates as a result of higher natural gas prices as compared to the same period of the prior year.

Total operating expenses increased $6 million for the six months ended March 31, 2026, as compared to the six months ended March 31, 2025. Fuel and purchased power expense increased $144 million for the six months ended March 31, 2026, as compared to the same period of the prior year primarily due to higher purchased power market prices and higher effective fuel rates as a result of higher natural gas prices, partially offset by reduced purchased power expense due to higher levels of TVA generation as compared to the same period of the prior year. Partially offsetting this increase was a $118 million decrease in Operating and maintenance expense for the six months ended March 31, 2026, as compared to the same period of the prior year primarily due to Inflation Reduction Act of 2022 ("IRA") tax credits recorded in the six months ended March 31, 2026, and decreases in payroll and benefit costs. In addition, Depreciation and amortization expense decreased by $37 million primarily due to the Browns Ferry Nuclear Plant ("Browns Ferry") subsequent license renewal ("SLR") and the depreciable life assumptions for the Kingston and Cumberland Fossil Plants. These decreases in Depreciation and amortization expense were partially offset by an increase due to depreciation of additions to net completed plant.