Tennessee Valley Authority Reports 11% Revenue Increase to $13.7 Billion in Fiscal Year 2025

Tennessee Valley Authority Reports Increased Revenue in Fiscal Year 2025

The Tennessee Valley Authority (TVA) reported total operating revenues of $13.7 billion for the fiscal year ended September 30, 2025, an 11% increase compared to $12.3 billion in the previous fiscal year. This growth was primarily driven by higher effective fuel rates, increased sales volume, and a 5.25% wholesale base rate increase implemented on October 1, 2024. Revenues from local power companies (LPCs) accounted for approximately 90% of TVA's total operating revenues, amounting to $12.3 billion, while directly served industrial customers contributed approximately 8% at $1.0 billion. Other revenue, consisting of wheeling and network transmission charges, sales of excess steam, and renewable energy certificate (REC) sales, made up the remaining 1% at $186 million.

Operating expenses for TVA totaled $11.1 billion in fiscal year 2025, a 10.1% increase from $10.1 billion in the prior year. The primary driver of this increase was a $732 million rise in fuel and purchased power expenses, attributed to higher demand for purchased power due to reduced nuclear generation availability, elevated effective fuel rates, and increased purchased power market prices. Depreciation and amortization expenses also increased by $133 million, primarily due to increases in the amortization expense of decommissioning costs recovered in rates and amortization expense of finance leases, the decision to retire Kingston Fossil Plant, and additions to net completed plant. Operating and maintenance expenses increased by $76 million, mainly due to higher payroll and benefit costs, including severance costs related to the Enterprise Transformation Program (ETP), labor escalation for cost of living increases, and higher medical claims, partially offset by a decrease in nuclear outage expense.

Key operational developments for TVA in fiscal year 2025 included the commencement of commercial operations at the Johnsonville Aeroderivative Combustion Turbine Units 21-30, adding 530 MW of summer net capability. TVA also continued its natural gas projects at the Cumberland and Kingston Fossil Plants, as well as an aeroderivative CT project at the Allen CT site and a new Caledonia simple cycle CT project. TVA's transmission system delivered approximately 168 billion kWh of electricity to customers, maintaining a 99.999% reliability rate since 2000. The company also reported a record high peak power demand of approximately 35,430 MW on January 22, 2025.

Looking ahead, TVA anticipates increasing capital expenditures for property, plant, and equipment additions, including environmental projects and new generation, with estimated expenditures of $4.7 billion in 2026, $4.3 billion in 2027, and $3.6 billion in 2028. TVA is also evaluating the potential retirement of its remaining coal-fired fleet by 2035, which could require significant investments in alternative generation sources. The company is pursuing funding opportunities under the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) to help offset the costs of qualifying projects. TVA's strategic priorities include delivering reliable and low-cost energy, caring for the region's natural resources, and creating sustainable economic growth.