TVA Reports First Quarter Fiscal Year 2025 Financial Results

KNOXVILLE, Tenn. ― The Tennessee Valley Authority reported $2.9 billion in total operating revenues on 38 billion kilowatt-hours of electricity sales for the three months ending on Dec. 31, 2024.  Total operating revenues increased 5.6% over the same period last year, primarily due to higher effective base rates and higher sales volume.  Sales of electricity increased approximately 2% compared to the same period of the prior year, primarily driven by increases within the data processing, hosting, and related services sector.

“Our region is growing faster than the national average, and we saw this in action in the first quarter when power sales were up two percent over a year ago, despite milder weather,” Jeff Lyash, TVA President and CEO, said. “During Winter Storm Enzo, TVA met a new all-time demand peak of 35,319 megawatts in January, which is enough to power 20 million homes at the same time. The significant investments we are making to the TVA system ensures reliability and resiliency today and supports our region’s future energy security.” 

TVA is investing $16 billion over the next several years to build new generation and infrastructure and enhance the reliability of existing assets. This includes building over 3,500 megawatts of generation, with about 1,400 megawatts completed. 1,950 megawatts of new generation projects are pending environmental review or in preliminary stages.

Fuel and purchased power expense was $44 million higher in the first three months of fiscal year 2025 over the same period of the prior year, primarily due to higher coal prices and lower availability of nuclear generation.  For the first quarter of fiscal year 2025, 50% of TVA’s power supply was carbon-free — coming from nuclear, hydroelectric, solar and wind.

Operating and maintenance expenses increased by $38 million over the same period last year, driven primarily by increased labor costs and nuclear outage expense. Depreciation and amortization expense was $36 million higher than the same period last year, primarily due to the decision to retire Kingston in April 2024 and an increase in amortization expense. 

Interest expense was $280 million for the first three months of fiscal year 2025, or $18 million higher than the same period last year.  TVA’s net income was $125 million for the three months ending on Dec. 31, 2024, $2 million lower than the same period of the prior year, primarily due to higher operating expenses.  

Tom Rice Named TVA’s Chief Financial Officer

In January, TVA named Tom Rice as Chief Financial Officer. He succeeds John Thomas, who retired after nearly 20 years of service at TVA.  In his new role as Senior Vice President and Chief Financial Officer, Rice will be responsible for directing all of TVA’s financial functions, including treasury, risk management, accounting, financial operations and performance, financial planning and investor relations. He will report to Jeff Lyash, TVA’s President and CEO.

“It’s an honor to start this new role and build on TVA’s financial health, because the decisions we make today are directly connected to our region and nation’s energy security,” said Tom Rice, TVA Chief Financial Officer. “As we modernize our fleet and deploy a significant amount of capital, we will be disciplined in our financial management to maintain affordable rates that drive economic development into the communities we serve.” 

TVA’s senior leadership team will host a conference call and webcast at 9:30 a.m. ET today to discuss the first 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 tva.com/investors

Selected Financial Data – Twelve Months Ended December 31

TVA’s quarterly report on Form 10-Q provides additional financial, operational, and descriptive information, including unaudited financial statements for the quarter ending on Dec. 31, 2024. TVA’s quarterly report and other SEC reports are available without charge on TVA’s website at tva.com/investors, on the SEC’s website at 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.

About TVA

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. To prepare for the future, 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 retail rates are lower than 80 percent of the rest of the nation, while its industrial rates are lower than 95 percent of the top 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.