TVA Reports Second Quarter Fiscal Year 2025 Financial Results

• Register now for today's 9:30 a.m. ET conference call discussing TVA's second quarter financial results.
• TVA reported $6.5 billion in total operating revenues through the second quarter of 2025, as sales of electricity increased approximately 4% compared to the same period last year.
• TVA is making significant capital investment in its power system to support the region's growth. To unleash American energy, TVA has 5,500 megawatts of new firm, dispatchable generation under construction or being evaluated.

KNOXVILLE, Tenn., May 1, 2025 /PRNewswire/ -- The Tennessee Valley Authority reported $6.5 billion in total operating revenues on 81 billion kilowatt-hours of electricity sales for the six months ending Mar. 31, 2025. Total operating revenues increased 9% over the same period last year, primarily due to higher sales volume and higher effective base rates. Sales of electricity increased approximately 4% compared to the same period last year, primarily driven by increases within the data processing, hosting, and related services sector and a 2% increase in heating degree days.     

"Our teams at TVA work every day to deliver affordable, reliable, and resilient power while building more generation to meet the current and future needs of the 10 million residents, businesses and industries of the Tennessee Valley region," said Don Moul, TVA President and CEO. "The growth of our economy depends on having reliable energy infrastructure, and TVA is leading that charge. We're making some of the largest capital investments in our history, which will help power the next generation of American jobs."

Fuel and purchased power expense was $183 million higher in the first six months of fiscal year 2025 over the same period of the prior year, primarily due to an increase in purchased power expense due to less availability of nuclear generation. For the second quarter of fiscal year 2025, 46% of TVA's power supply was carbon-free — coming from nuclear, hydroelectric, solar and wind.

Operating and maintenance expenses increased by $93 million over the same period last year, driven primarily by increased labor costs. Depreciation and amortization expense was $68 million higher than the same period last year, primarily related to an increase in amortization expense and asset retirement decisions. 

Interest expense was $573 million for the first six months of fiscal year 2025, or $45 million higher than the same period last year. TVA's net income was $533 million for the six months ending on Mar. 31, 2025, $99 million higher than the same period of the prior year, primarily due to higher operating revenue.  

To unleash American energy, TVA has 5,500 megawatts of new firm, dispatchable generation under construction or being evaluated for potential construction. TVA has added nearly 1,400 megawatts of new gas units at Paradise in Kentucky and Colbert in Alabama.

"We continue to see increased power demand and TVA is focused on providing power at the lowest feasible cost as we make significant investments to meet the Tennessee Valley region's future power needs," said Tom Rice, TVA's Chief Financial Officer. "We will achieve this with continued financial discipline – TVA's balance sheet is in the best health in decades, and the Enterprise Transformation Program we started last year will help us ensure our business is running as efficiently as possible."

Don Moul named TVA's Chief Executive Officer

In March, TVA named Don Moul as TVA's fourth Chief Executive Officer. He succeeds Jeff Lyash, who announced his retirement earlier this year. In his new role, Moul is responsible for leading the nation's largest public power utility in its mission of serving the people of TVA's seven-state region.

"I'm excited about this opportunity and will build on the momentum that our team has created," said Don Moul. "I will ensure that TVA remains focused on continued excellence in operations, financial discipline, and a commitment to the fundamentals of our mission of service."

Moul brings more than 38 years of experience across all facets of power generation and operations with a proven track record of improving operational performance and teamwork. He is recognized across the industry as a strong, versatile leader. Prior to being named CEO, Moul served 4 years as TVA's executive vice president and chief operating officer, where he held primary responsibility for power generation, transmission, and power supply functions. Under Moul's leadership, TVA is a national leader in driving advanced nuclear technologies forward. In addition, TVA twice set records for meeting all-time peak power demands during severe weather and consistently delivered the strongest safety performance years in TVA history.

TVA's senior leadership team will host a conference call and webcast at 9:30 a.m. ET today to discuss the second quarter fiscal year 2025 results. Please click here to pre-register. A webcast replay and transcript will also be available for one year on TVA's website at https://www.tva.com/investors.

TVA's quarterly report on Form 10-Q provides additional financial, operational, and descriptive information, including unaudited financial statements for the quarter ending on Mar. 31, 2025. TVA's quarterly report and other SEC reports are available without charge on TVA's website at http://www.tva.com/investors, on the SEC's website at http://www.sec.gov, or by calling TVA toll free at 888-882-4975.

This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to TVA's most recent annual report on Form 10-K and quarterly report on Form 10-Q for a discussion of factors that could cause actual results to differ from those in the forward-looking statements.

The Tennessee Valley Authority is the nation's largest public power supplier, delivering energy to more than 10 million people across seven southeastern states. TVA has one of the most diverse energy systems – including nuclear, hydro, solar, gas, and advanced technologies. TVA is making significant investments in its power system toward new generation and transmission.

TVA is a corporate agency of the United States, receiving no taxpayer funding, deriving virtually all of its revenues from sales of electricity. TVA maintains some of the lowest energy costs and highest reliability in the nation. TVA's residential rates are lower than those paid by over 80% of customers of the top 100 U.S. utilities, and its industrial rates are lower than those paid by over 90% of customers of the top 100 U.S. utilities. In addition, TVA provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation. Learn more at TVA.com.

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SOURCE Tennessee Valley Authority