TVA Reports Second Quarter Fiscal Year 2021 Financial Results

May 4, 2021

KNOXVILLE, Tenn. ― The Tennessee Valley Authority reported $4.9 billion in total operating revenues on 76.4 billion kilowatt-hours of electricity sales for the first two quarters of fiscal year 2021 ended March 31, 2021.  

Sales of electricity were 3% higher due to an 8% increase in heating degree days over the same period in the prior year, and an increase in sales to directly served customers. Total operating revenues decreased 4% over the same period of the prior year driven primarily by lower effective base rates and lower fuel cost recovery revenues as a result of lower fuel rates offset by higher demand volume.

“The industry-leading reliability of the TVA power system kept the lights and heat on in the Tennessee Valley region this winter during conditions that caused severe disruptions in other parts of the country,” said Jeff Lyash, TVA president and CEO. “The dedicated effort of TVA’s 10,000 employees and the diversity and resiliency of the TVA power system continued to serve the 10 million people that rely on us each and every day, just as they have for the past 88 years.”

TVA’s tax equivalents and interest expenses were lower in the first two quarters of fiscal year 2021 than in the same periods of the prior year, while operating and maintenance expenses increased slightly by $26 million, driven primarily by an increase in planned outage expense and labor escalation. TVA’s fuel and purchased power expense was 8% lower year-over-year, primarily driven by lower fuel cost recovery resulting from volatility in the natural gas and purchased power markets, as well as lower effective fuel rates, due to lower coal prices, improved nuclear fleet performance and more hydroelectric generation.

TVA’s depreciation and amortization expense was $282 million lower during the quarter versus the same period in the prior year, due to a $265 million decrease related to the 2019 decision to accelerate the retirements of Bull Run and Paradise.

Interest expense was $557 million for the first six months of fiscal year 2021, which was a 3% decrease from the same period of the prior year, driven by lower average debt balances. 

“As we continue to provide reliable power even in the most extreme conditions, the cost of TVA’s electricity also remains among the lowest in the industry and the region,” said John Thomas, TVA’s chief financial officer. “In fact, TVA’s customers are paying effective wholesale rates in 2021 that are lower than a decade ago and we project our rates will remain stable for the remainder of the decade.”

Additional highlights from TVA’s second quarter fiscal year 2021 include:

  • TVA continued to maintain 99.999 percent reliability in delivering energy to its customers despite extreme winter weather in the quarter ended in March. TVA has maintained 99.999 percent reliability for over 20 consecutive years, providing industry-leading reliability.
  • As part of the Strategic Financial Plan approved by the TVA Board in 2019, TVA offers a 20-year Valley Partnership Agreement option to local power company customers. As of May 3, 2021, 142 local power companies had accepted the offer and are now TVA long-term partners. Bill credits available to long-term partners totaled over $90 million in the first two quarters of fiscal year 2021.
  • In 2020, the TVA Board approved a Pandemic Relief Credit that became effective beginning in October 2020 as a 2.5 percent monthly base rate credit, totaling approximately $200 million for 2021.  As of March 31, 2021, TVA had provided approximately $104 million in Pandemic Relief Credits. TVA is also offering the Back-to-Business credit program that provides relief to certain larger customers when returning to operations and the Community Care Fund that partners TVA and LPCs to support local initiatives that address hardships created by the COVID-19 pandemic. TVA remains committed to supporting communities and customers across the Tennessee Valley during the region’s ongoing recovery.
  • Rainfall and runoff in the Tennessee Valley during the second quarter of 2021 were 130% and 115% of normal, respectively.  
  • TVA's economic development efforts, combined with our reliability and low costs, continue to attract and encourage the expansion of business and industries in the Tennessee Valley, with over $3.9 billion in investments and more than 45,200 jobs created or retained through the second quarter of 2021.

    Selected Financial Data – Six Months Ended March 31
    Sales, Revenues & Expenses20212020
    Sales (millions of kWh)76,43174,123
    Operating Revenues ($ millions)4,8765,099
    Fuel & Purchased Power Expense1,2131,323
    Operating & Maintenance Expense1,3591,333
    Interest Expense557576
    Net Income640447
    Net Cash Provided by / (Used in) ($ millions)  
    Operating Activities1,570870
    Investing Activities(1,092)(1,010)
    Financing Activities(480)(324)


    TVA executive management will host a conference call to discuss second quarter fiscal year 2021 results at 9:30 a.m. ET, on Tuesday, May 4. The event will be conducted as a webcast and as a dial-in teleconference. Participants will be able to hear the discussion and see slides via webcast, but will need telephone access to ask questions. Pre-registration for the conference call is required. Please click here to pre-register. Once pre-registered, the dial-in number will be provided via an email. If you are unable to pre-register, you may access the conference call by dialing toll free 844-308-6432 in the United States, or 412-717-9611 outside the United States. 

    A replay will be available one hour after the end of the conference call until 9:30 a.m. ET, June 4, by calling toll free 877-344-7529 in the United States or 412-317-0088 outside the United States and using the conference number 10152742. A webcast replay and transcript will also be available for one year on TVA’s website at

    TVA’s quarterly report on Form 10-Q provides additional financial, operational, and descriptive information, including unaudited financial statements for the quarter ended March. 31, 2021. TVA’s quarterly report and other SEC reports are available without charge on TVA’s website at, on the SEC’s website at, 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 a corporate agency of the United States that provides electricity for business customers and local power companies serving nearly 10 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, 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.



Investor Relations

Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
Investor Relations website

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