TVA Accelerates American Energy Dominance in FY25 with Nuclear and Grid Expansion

KNOXVILLE, Tenn. — The Tennessee Valley Authority is accelerating America’s energy dominance through investments in advanced nuclear, grid modernization, and strategic partnerships to position the Tennessee Valley, and the nation, to lead the global energy race. At its November meeting, the TVA Board of Directors received updates on the agency’s progress, recognized the strong performance and dedication of employees, and reaffirmed its commitment to delivering affordable, reliable, and innovative American energy solutions to meet rising demand, fuel economic growth, and power next-generation infrastructure of the AI era.

“American energy dominance is measured in more than megawatts; it’s measured in the strength and ingenuity of our people,” said Don Moul, TVA President and CEO. “In FY25, that strength helped us transform TVA to keep the power grid strong, grow the economy, and help our communities thrive. Together with our partners, we’re modernizing the power grid, expanding American energy, and powering the technologies that will create jobs and define the next century.”

Year of Fast Progress, Strong Leadership

In FY25, TVA rapidly advanced its role as a national leader in energy innovation, a hub for next-generation nuclear technology, and a key driver of regional economic growth. During the Board meeting, Moul shared the year’s successes that reflect the agency’s momentum:

• New Nuclear Innovation: TVA is the only utility with a construction permit application accepted by the Nuclear Regulatory Commission for the BWRX-300 SMR technology, demonstrating the agency’s national leadership in small modular reactor development. In addition, TVA is the first U.S. utility to sign a power purchase agreement for electricity from an advanced Gen IV nuclear reactor – Kairos Power’s Hermes 2. TVA also signed a collaboration agreement with ENTRA1 to explore the development of up to 6 gigawatts of new nuclear power generation to advance the nation’s energy security and maintain America’s nuclear leadership.
• Fusion Energy Development: With support from Tennessee Governor Bill Lee, TVA and Type One Energy signed a letter of intent to bring the nation’s first commercial stellarator fusion power plant to the Tennessee Valley. TVA’s highly skilled workforce will help manufacture components for the prototype fusion machine at TVA’s Bull Run site.
• Meeting Power Demand:  TVA’s gas, hydro, and coal generation fleet delivered strong reliability performance this year, with 389 billion cubic feet of natural gas and 14 million tons of coal supplied. This fuel mix generated enough electricity to power an estimated 7.2 million homes, underscoring the fleet’s critical role in meeting energy demands. To continue to meet record-breaking power demand, like in January, TVA completed 530 megawatts of new generation at its New Johnsonville natural gas plant and has more than 3,500 megawatts currently under construction — enough to power over two million homes. TVA plans to build more than 6,200 megawatts of new generation to support industrial growth, economic development and energy security. TVA is working closely with communities to identify optimal locations for new energy assets.
• Economic Development: TVA, with its partners, helped attract over $6.6 billion in projected capital investment to the region that is expected to create more than 9,000 jobs while expecting to retain about 43,250 jobs – earning Site Selection Magazine’s recognition for 20-years in a row. Companies include: Barrett firearms, GE Aerospace, Hitachi Energy, Mahle, Oklo and U.S. Space Command. Over the past five years, TVA has helped create over $44 billion in projected capital investment, which is expected to bring more than 81,000 new jobs and retain more than 230,000 jobs. 
• Energy Efficiency & Demand Response: In partnership with local power companies and communities, TVA programs enabled energy upgrades to more than 200,000 residents and 98 schools across the Valley. Since October 2023, TVA’s energy efficiency programs have delivered almost $750 million in lifetime energy savings for participants.
• Disaster Response & Environmental Stewardship: Following the impact of Hurricane Helene, TVA joined a year-long cleanup effort in partnership with FEMA, TEMA, and TDEC to restore Douglas Lake. This initiative reinforced TVA’s commitment to community resilience and earned the Outstanding Watershed Management Project Award from the Clean Water Professionals of Kentucky and Tennessee.
• Enterprise Transformation Program (ETP): TVA met its FY25 cost optimization reduction targets and has plans to meet the targets set for FY26. ETP is designed to enable TVA to deliver at least $500 million of sustainable reductions to planned cost increases in FY26 and beyond to support future fleet investments needed to meet growing demand. TVA’s ETP is focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through the supply chain, and making the workforce more efficient.

“At TVA, we’re not just building energy infrastructure, we’re laying the foundation for America’s energy future,” said Moul. “We’re proving that when we lead with purpose, and partner with vision, there’s no limit to what we can achieve.”

Board Actions

In other business, the Board:

• Approved FY26 CEO total compensation, which continues to balance recognition of leading TVA’s complex operations with the agency’s public service mission and remains well below the national median compensation of similar organizations. 
• The Board approved the payout for TVA’s short-term at-risk compensation for Winning Performance/EAIP, recognizing the continued performance of the team in meeting demanding goals under challenging conditions.
• The Board approved the Long-Term Incentive (LTI) Plan payout percentage based on FY25 scorecard performance.
  

To learn more about TVA’s innovation strategy and partnerships, visit tva.com.