Tennessee Valley Authority

TVA's operating revenues were $10.0 billion and $9.8 billion for the nine months ended June 30, 2026 and 2025, respectively. Operating revenues increased for the nine months ended June 30, 2026, as compared to the same period of the prior year, primarily as a result of higher fuel cost recovery rates and higher sales volume. Higher fuel cost recovery rates were due primarily to higher natural gas prices as compared to the same period of the prior year. The increased sales volume was primarily driven by higher sales within the data processing, web hosting, and related services sector.

Total operating expenses increased $48 million for the nine months ended June 30, 2026, as compared to the nine months ended June 30, 2025. Fuel and purchased power expense increased $253 million for the nine months ended June 30, 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 $161 million decrease in Depreciation and amortization expense for the nine months ended June 30, 2026, as compared to the same period of the prior year primarily due to the depreciable life assumption changes for the Kingston Coal-Fired ("KIF") and Cumberland Coal-Fired ("CUF") Plants and the Browns Ferry Nuclear Plant ("Browns Ferry") subsequent license renewal ("SLR"). These decreases in Depreciation and amortization expense were partially offset by an increase due to depreciation of additions to net completed plant. In addition, Operating and maintenance expense decreased by $76 million for the nine months ended June 30, 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 nine months ended June 30, 2026.

Pre-commercial plant operations began on the Cumberland Combined Cycle Gas Plant ("CUG") Units 1 and 2 during the third quarter of 2026.