10-Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(MARK ONE)

x QUARTERLY REPORT PURSUANT TO SECTION 13, 15(d), OR 37 OF THE

SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025

OR

 o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 000-52313

TENNESSEE VALLEY AUTHORITY

(Exact name of registrant as specified in its charter)

A corporate agency of the United States created by an act of Congress (State or other jurisdiction of incorporation or organization)	62-0474417  (I.R.S. Employer Identification No.)
400 W. Summit Hill Drive Knoxville, Tennessee  (Address of principal executive offices)	37902  (Zip Code)

(865) 632-2101

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13, 15(d), or 37 of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer  o                                                                                    Accelerated filer o

Non-accelerated filer    x   Smaller reporting company  o        

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes o   No x

Number of shares of common stock outstanding at July 28, 2025: N/A

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Table of Contents
	Page
GLOSSARY OF COMMON ACRONYMS......................................................................................................................................	3
FORWARD-LOOKING INFORMATION.........................................................................................................................................	4
GENERAL INFORMATION............................................................................................................................................................	6
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS.............................................................................................................................................	7
Consolidated Statements of Operations (Unaudited)............................................................................................................	7
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)............................................................................	7
Consolidated Balance Sheets (Unaudited)...........................................................................................................................	8
Consolidated Statements of Cash Flows (Unaudited)..........................................................................................................	10
Consolidated Statements of Changes in Proprietary Capital (Unaudited)............................................................................	11
Notes to Consolidated Financial Statements (Unaudited)....................................................................................................	12
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS...	42
Executive Overview...............................................................................................................................................................	42
Results of Operations............................................................................................................................................................	43
Liquidity and Capital Resources............................................................................................................................................	50
Key Initiatives and Challenges..............................................................................................................................................	53
Environmental Matters..........................................................................................................................................................	57
Legal Proceedings................................................................................................................................................................	58
Critical Accounting Estimates................................................................................................................................................	58
New Accounting Standards and Interpretations....................................................................................................................	58
Legislative and Regulatory Matters.......................................................................................................................................	58
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK..............................................................	59
ITEM 4. CONTROLS AND PROCEDURES..................................................................................................................................	59
Disclosure Controls and Procedures.....................................................................................................................................	59
Changes in Internal Control over Financial Reporting..........................................................................................................	59
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS..................................................................................................................................................	59
ITEM 1A. RISK FACTORS............................................................................................................................................................	59
ITEM 5. OTHER INFORMATION..................................................................................................................................................	60
ITEM 6. EXHIBITS........................................................................................................................................................................	63
SIGNATURES...............................................................................................................................................................................	64

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GLOSSARY OF COMMON ACRONYMS
Following are definitions of some of the terms or acronyms that may be used in this Quarterly Report on Form 10-Q for the quarter ended June 30, 2025 (the "Quarterly Report"):
Term or Acronym	Definition
AOCI	Accumulated other comprehensive income (loss)
ARO	Asset retirement obligation
ART	Asset Retirement Trust
Bonds	Bonds, notes, or other evidences of indebtedness
CARA	Corrective Action/Risk Assessment
CCR	Coal combustion residuals
CCRMU	CCR Management Unit
CCR Rule	2015 Coal Combustion Residual Rule
CEO	Chief Executive Officer
CT	Combustion turbine
CVA	Credit valuation adjustment
CY	Calendar year
DCP	Deferred Compensation Plan
EO(s)	Executive order(s)
EPA	Environmental Protection Agency
ETP	Enterprise Transformation Program
Exchange Act	Securities Exchange Act of 1934
FERC	Federal Energy Regulatory Commission
FHP	Financial Hedging Program
GAAP	Accounting principles generally accepted in the United States of America
GAC	Grid access charge
GEH	GE Hitachi Nuclear Energy
Holdco	John Sevier Holdco LLC
IRA	Inflation Reduction Act of 2022
JACTG	Johnsonville Aeroderivative Combustion Turbine Generation LLC
JHLLC	Johnsonville Holdco LLC
Johnsonville Facility	Johnsonville Aeroderivative Combustion Turbine Facility
JSCCG	John Sevier Combined Cycle Generation LLC
kWh	Kilowatt hours
Legacy CCR Rule	Final legacy CCR rule
LPCs	Local power company customers
MLGW	Memphis Light, Gas and Water Division
mmBtu	Million British thermal unit(s)
Moody's	Moody's Investors Service, Inc.
MtM	Mark-to-market
NAV	Net asset value
NDT	Nuclear Decommissioning Trust
NEIL	Nuclear Electric Insurance Limited
NES	Nashville Electric Service
NOx	Nitrogen oxides
NRC	Nuclear Regulatory Commission
PPA(s)	Power Purchase Agreement(s)
RP	Restoration Plan
SCCG	Southaven Combined Cycle Generation LLC
SEC	Securities and Exchange Commission
SERP	Supplemental Executive Retirement Plan
SHLLC	Southaven Holdco LLC
SO2	Sulfur dioxide
TDEC	Tennessee Department of Environment and Conservation

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TVA	Tennessee Valley Authority
TVA Act	Tennessee Valley Authority Act of 1933, as amended
TVA Board	TVA Board of Directors
U.S.	United States
U.S. Treasury	United States Department of the Treasury
VIE	Variable interest entity
XBRL	eXtensible Business Reporting Language

FORWARD-LOOKING INFORMATION

This Quarterly Report contains forward-looking statements relating to future events and future performance.  All statements other than those that are purely historical may be forward-looking statements.  In certain cases, forward-looking statements can be identified by the use of words such as "may," "will," "should," "expect," "anticipate," "believe," "intend," "project," "plan," "predict," "assume," "forecast," "estimate," "objective," "possible," "probably," "likely," "potential," "speculate," "aim," "aspiration," "goal," "seek," "strategy," "target," the negative of such words, or other similar expressions.

Although the Tennessee Valley Authority ("TVA") believes that the assumptions underlying any forward-looking statements are reasonable, TVA does not guarantee the accuracy of these statements.  Numerous factors could cause actual results to differ materially from those in any forward-looking statements.  These factors include, among other things:

•Significant additional costs for TVA to manage and operate its coal combustion residuals ("CCR") facilities;

•The cost of complying with known, anticipated, or new environmental requirements, some of which could render continued operation of many of TVA's aging coal-fired generation units not cost-effective or result in their removal from service, perhaps permanently;

•Federal legislation aimed specifically at curtailing TVA's activities, including legislation that may require the divestiture of TVA or the sale of certain of TVA's assets; restrict access to its United States Department of the Treasury ("U.S. Treasury") account; eliminate its sole authority to set rates; restrict its authority to manage the Tennessee River system; lower the debt ceiling on bonds, notes, or other evidences of indebtedness (collectively, "Bonds") specified in the Tennessee Valley Authority Act of 1933, as amended ("TVA Act"); or limit its ability to pay its Chief Executive Officer or other employees competitive salaries;

•New, existing, or amended laws, regulations, executive orders ("EOs"), or administrative orders or interpretations, including those related to climate change and other environmental matters, and the costs of complying with these laws, regulations, EOs, or administrative orders or interpretations;

•Loss of TVA's protected service territory if the Federal Energy Regulatory Commission ("FERC") were to limit the application of the anti-cherrypicking provision, or if Congress were to eliminate the anti-cherrypicking provision, without corresponding legislative modifications to the territorial limitations imposed by the fence;

•Additional federal reliability standards set forth by the North American Electric Reliability Corporation ("NERC") and approved by FERC and the costs of complying with these new standards;

•The failure of TVA's generation, transmission, navigation, flood control, and related assets and infrastructure, including CCR facilities, dams, and spent nuclear fuel storage facilities, to operate as anticipated, resulting in health, safety, or environmental problems, lost revenues, damages, or other costs that are not reflected in TVA's financial statements or projections, including due to aging, technological issues, or extreme weather conditions;

•Significant delays and additional costs, public opposition, and/or inability to obtain necessary regulatory approvals, licenses, or permits, for major projects, including for assets that TVA needs to serve its existing and future load and to meet its carbon reduction aspirations;

•Risks associated with the operation of nuclear facilities or other generation and related facilities, including CCR facilities and dams;

•Events at a nuclear facility, whether or not operated by or licensed to TVA, which, among other things, could lead to increased regulation or restriction on the construction, ownership, operation, or decommissioning of nuclear facilities or on the storage of spent fuel, obligate TVA to pay retrospective insurance premiums, reduce the availability and affordability of insurance, increase the costs of operating TVA's existing nuclear units, or cause TVA to forego future construction at these or other facilities;

•The inaccuracy of certain assumptions about the future, including economic forecasts, anticipated energy and commodity prices, cost estimates, construction schedules, power demand forecasts, potential regulatory environments, and the appropriate generation mix to meet demand;

•Circumstances that cause TVA to change its determinations regarding the appropriate mix of generation assets;

•Inability to continue to operate certain assets, especially nuclear facilities, including due to the inability to obtain, or loss of, regulatory approval for the operation of assets;

•Physical attacks, threats, or other interference causing damage to TVA's facilities or interfering with TVA's operations;

•Unforeseeable occurrences negatively impacting TVA assets or their supporting infrastructure;

•Events at TVA facilities, which, among other things, could result in loss of life, damage to the environment, damage to or loss of the facility, or damage to the property of others;

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•Events that negatively impact TVA's reliability, including problems at other utilities or at TVA facilities or the increase in intermittent sources of power;

•Disruption of supplies of fuel, purchased power, or other critical items or services, which may result from, among other things, economic conditions, weather conditions, physical or cyber attacks, political developments, international trade restrictions or tariffs, legal actions, mine closures or reduced mine production, increases in fuel exports, environmental regulations affecting TVA's suppliers, transportation or delivery constraints, shortages of raw materials, supply chain difficulties, labor shortages, force majeure events, forced outages, intentional defaults, strikes, inflation, or similar events and which may, among other things, hinder TVA's ability to operate its assets, complete projects on time and on budget, and meet its contractual obligations to deliver power;

•Global conflicts, terrorist activities, or military actions by the United States ("U.S.") government and its allies;

•Cyber attacks on TVA's assets or the assets of third parties upon which TVA relies, which may become more frequent and sophisticated due to advances in artificial intelligence ("AI");

•The failure of TVA's information technology systems;

•Lower future demand for electricity than TVA currently expects or is financially planning for, which would lead to unexpected revenue constraints that could negatively impact TVA's ability to meet financial obligations, including those associated with financing of projects to meet the anticipated demand;

•Higher future demand for electricity than TVA can address through execution of its current asset strategy, which could require TVA to purchase additional generation or capacity at rates higher than TVA can produce electricity itself, take emergency measures to curtail load, raise rates, and/or waitlist prospective industrial or commercial customers;

•The need for significant future contributions associated with TVA's pension plans, other post-retirement benefit plans, or health care plans;

•Limitations on TVA's ability to borrow money, which may result from, among other things, TVA's approaching or substantially reaching the debt ceiling or TVA's losing access to the debt markets, and which may impact TVA's ability to make planned capital investments;

•Downgrades of TVA's credit ratings or the United States' sovereign credit ratings, which may negatively impact TVA and the owners of TVA securities;

•Changes in technology, which, among other things, may affect relationships with customers and require TVA to change how it conducts its operations;

•Loss of competitive edge due to TVA's governmental status affecting TVA's ability to keep up with technological changes;

•Changes in the market price of commodities such as purchased power, coal, uranium, natural gas, fuel oil, crude oil, construction materials, reagents, or emission allowances;

•A limitation on the market for TVA Bonds, which may be influenced by the fact that the payment of principal and interest on TVA securities is not guaranteed by the U.S. government;

•Failure to attract or retain an appropriately qualified workforce;

•Changes in the membership of the TVA Board of Directors ("TVA Board") or TVA senior management, which may impact how TVA operates;

•Inability to adapt to meet changing business conditions as a result of the recent loss of quorum of the TVA Board;

•Weather conditions, including changing weather patterns, extreme weather conditions, and other events such as flooding, droughts, wildfires, heat waves, and snow or ice storms that may result from climate change, which may hamper TVA's ability to supply power, cause customers' demand for power to exceed TVA's then-present power supply, pose health, safety, or environmental risks, or otherwise negatively impact TVA's operations or financial condition;

•Events affecting the supply or quality of water from the Tennessee River system or Cumberland River system, or elsewhere, which could interfere with TVA's ability to generate power;

•Catastrophic events, such as fires, earthquakes, explosions, solar events, electromagnetic pulses, geomagnetic disturbances, droughts, floods, hurricanes, tornadoes, polar vortexes, icing events, pipeline explosions, or other casualty events, wars, national emergencies, terrorist activities, pandemics, widespread public health crises, geopolitical events, or other destructive or disruptive events;

•Ineffectiveness of TVA's financial control system to control issues and instances of fraud or to prevent or detect errors;

•Inability to use regulatory accounting for certain costs;

•Inability of TVA to implement its business strategy successfully, including due to the increased use in the public of distributed energy resources or energy-efficiency programs;

•Inability of TVA to achieve or maintain its cost reduction goals, including pursuant to its Enterprise Transformation Program ("ETP"), which may require TVA to increase rates and/or issue more debt than planned;

•Failure of TVA’s organizational structure to adequately support TVA’s anticipated business needs or enable it to meet the needs of its current or potential customers;

•Inability of TVA to adapt its business model to changes in the utility industry and customer preferences and to remain cost competitive;

•Changes in commodity prices, investment prices, interest rates, currency exchange rates, or inflation rates;

•Reliability or creditworthiness of counterparties including but not limited to customers, suppliers, renewable resource providers, and financial institutions;

•Changes in the U.S. economy and volatility in financial markets;

•Ineffectiveness of TVA’s disclosure controls and procedures or its internal control over financial reporting;

•Changes in customer preferences for energy produced from cleaner generation sources;

•Increases in TVA’s financial liabilities for decommissioning its nuclear facilities and retiring other assets;

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•The requirement or decision to make additional contributions to TVA’s Nuclear Decommissioning Trust (“NDT”) or Asset Retirement Trust (“ART”);

•Events or changes involving transmission lines, dams, and other facilities not operated by TVA, including those that affect the reliability of the interstate transmission grid of which TVA’s transmission system is a part and those that increase flows across TVA’s transmission grid;

•Actions taken, or inaction, by the U.S. government relating to the national debt ceiling or automatic spending cuts in government programs;

•Inability to respond quickly enough to current or potential customer demands or needs or to act solely in the interest of ratepayers;

•Addition or loss of customers by TVA or TVA’s local power company customers (“LPCs”);

•Differences between estimates of revenues and expenses and actual revenues earned and expenses incurred;

•Changes in the market price of equity securities, debt securities, or other investments;

•An increase in TVA’s cost of capital, which may result from, among other things, changes in the market for Bonds, disruptions in the banking system or financial markets, changes in the credit rating of TVA or the U.S. government, or, potentially, an increased reliance by TVA on alternative financing should TVA approach its debt limit;

•Costs or liabilities that are not anticipated in TVA’s financial statements for third-party claims, natural resource damages, environmental cleanup activities, or fines or penalties associated with unexpected events such as failures of a facility or infrastructure;

•Adverse effects from global, national, or regional health or other emergencies;

•Negative impacts on TVA's reputation; or

•Other unforeseeable events.

See also Part I, Item 1A, Risk Factors, and Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations in TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report"), and Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations and Part II, Item 1A, Risk Factors in this Quarterly Report for a discussion of factors that could cause actual results to differ materially from those in any forward-looking statement.  New factors emerge from time to time, and it is not possible for TVA to predict all such factors or to assess the extent to which any factor or combination of factors may impact TVA's business or cause results to differ materially from those contained in any forward-looking statement.  TVA undertakes no obligation to update any forward-looking statement to reflect developments that occur after the statement is made, except as required by law.

GENERAL INFORMATION

Fiscal Year

References to years (2025, 2024, etc.) in this Quarterly Report are to TVA's fiscal years ending September 30.  Years that are preceded by "CY" are references to calendar years.

Notes

References to "Notes" are to the Notes to Consolidated Financial Statements contained in Part I, Item 1, Financial Statements in this Quarterly Report.

Available Information

TVA files annual, quarterly, and current reports with the Securities and Exchange Commission ("SEC") under Section 37 of the Securities Exchange Act of 1934 (the "Exchange Act"). TVA's SEC filings are available to the public at www.tva.com, free of charge, as soon as reasonably practicable after such reports are electronically filed with or furnished to the SEC.  Information contained on or accessible through TVA's website shall not be deemed to be incorporated into, or to be a part of, this Quarterly Report or any other report or document that TVA files with the SEC.  All TVA SEC reports are available to the public without charge from the website maintained by the SEC at www.sec.gov.  

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PART I - FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

TENNESSEE VALLEY AUTHORITY

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in millions)

	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Operating revenues
Revenue from sales of electricity	$	3,261	$	2,830	$	9,613	$	8,654
Other revenue	45		49		145		144
Total operating revenues	3,306		2,879		9,758		8,798
Operating expenses
Fuel	589		424		1,674		1,561
Purchased power	550		408		1,516		1,139
Operating and maintenance	922		915		2,771		2,671
Depreciation and amortization	572		542		1,691		1,593
Tax equivalents	156		131		460		405
Total operating expenses	2,789		2,420		8,112		7,369
Operating income	517		459		1,646		1,429
Other income, net	29		14		58		55
Other net periodic benefit cost	27		25		79		74
Interest expense	307		267		880		795
Net income	$	212	$	181	$	745	$	615
The accompanying notes are an integral part of these consolidated financial statements.

TENNESSEE VALLEY AUTHORITY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited)

(in millions)

	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Net income	$	212	$	181	$	745	$	615
Other comprehensive income (loss)
Net unrealized gain (loss) on cash flow hedges	47		1		24		17
Net unrealized (gain) loss reclassified to earnings from cash flow hedges	(38)		(7)		(15)		(20)
Total other comprehensive income (loss)	9		(6)		9		(3)
Total comprehensive income	$	221	$	175	$	754	$	612
The accompanying notes are an integral part of these consolidated financial statements.

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TENNESSEE VALLEY AUTHORITY

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

ASSETS
	June 30, 2025		September 30, 2024
Current assets
Cash and cash equivalents	$	501	$	502
Accounts receivable, net	1,887		1,801
Inventories, net	1,184		1,155
Regulatory assets	152		191
Other current assets	169		120
Total current assets	3,893		3,769
Property, plant, and equipment
Completed plant	71,902		70,989
Less accumulated depreciation	(38,871)		(38,793)
Net completed plant	33,031		32,196
Construction in progress	6,016		4,879
Nuclear fuel	1,231		1,261
Finance leases	684		729
Total property, plant, and equipment, net	40,962		39,065
Investment funds	5,277		4,968
Regulatory and other long-term assets
Regulatory assets	9,137		9,408
Operating lease assets, net of amortization	126		149
Other long-term assets	490		344
Total regulatory and other long-term assets	9,753		9,901
Total assets	$	59,885	$	57,703
The accompanying notes are an integral part of these consolidated financial statements.

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TENNESSEE VALLEY AUTHORITY

CONSOLIDATED BALANCE SHEETS (Unaudited)

(in millions)

LIABILITIES AND PROPRIETARY CAPITAL
	June 30, 2025		September 30, 2024
Current liabilities
Accounts payable and accrued liabilities	$	2,979	$	2,910
Accrued interest	314		280
Asset retirement obligations	316		283
Regulatory liabilities	202		174
Short-term debt, net	319		1,167
Current maturities of power bonds	1,370		1,022
Current maturities of long-term debt of variable interest entities	48		37
Total current liabilities	5,548		5,873
Other liabilities
Post-retirement and post-employment benefit obligations	2,678		2,887
Asset retirement obligations	10,608		10,523
Finance lease liabilities	670		700
Other long-term liabilities	1,507		1,712
Regulatory liabilities	85		83
Total other liabilities	15,548		15,905
Long-term debt, net
Long-term power bonds, net	19,229		17,867
Long-term debt of variable interest entities, net	1,651		897
Total long-term debt, net	20,880		18,764
Total liabilities	41,976		40,542
Contingencies and legal proceedings (Note 21)
Proprietary capital
Power program appropriation investment	258		258
Power program retained earnings	17,182		16,437
Total power program proprietary capital	17,440		16,695
Nonpower programs appropriation investment, net	512		518
Accumulated other comprehensive loss	(43)		(52)
Total proprietary capital	17,909		17,161
Total liabilities and proprietary capital	$	59,885	$	57,703
The accompanying notes are an integral part of these consolidated financial statements.

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TENNESSEE VALLEY AUTHORITY

 CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 For the Nine Months Ended June 30

 (in millions)

	2025		2024
Cash flows from operating activities
Net income	$	745	$	615
Adjustments to reconcile net income to net cash provided by operating activities
Depreciation and amortization(1)	1,707		1,610
Amortization of nuclear fuel cost	208		282
Non-cash retirement benefit expense	112		104
Other regulatory amortization and deferrals	(38)		(49)
Changes in current assets and liabilities
Accounts receivable, net	(76)		74
Inventories and other current assets, net	(67)		(122)
Accounts payable and accrued liabilities	3		(56)
Accrued interest	31		(19)
Pension contributions	(235)		(229)
Settlements of asset retirement obligation	(190)		(214)
Other, net	(124)		(57)
Net cash provided by operating activities	2,076		1,939
Cash flows from investing activities
Construction expenditures	(3,442)		(2,381)
Nuclear fuel expenditures	(198)		(190)
Purchases of investments	(4)		(3)
Loans and other receivables
Advances	—		(4)
Repayments	10		5
Other, net	6		27
Net cash used in investing activities	(3,628)		(2,546)
Cash flows from financing activities
Long-term debt
Issues of power bonds	2,722		—
Proceeds from variable interest entities	800		—
Redemptions and repurchases of power bonds	(1,022)		(22)
Redemptions of debt of variable interest entities	(23)		(17)
Short-term debt issuance (redemptions), net	(847)		678
Payments on leases and leasebacks	(50)		(46)
Financing costs, net	(25)		—
Other, net	(4)		14
Net cash provided by financing activities	1,551		607
Net change in cash, cash equivalents, and restricted cash	(1)		—
Cash, cash equivalents, and restricted cash at beginning of period	523		521
Cash, cash equivalents, and restricted cash at end of period	$	522	$	521
Note (1) Includes amortization of debt issuance costs and premiums/discounts.
The accompanying notes are an integral part of these consolidated financial statements.

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TENNESSEE VALLEY AUTHORITY

CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL (Unaudited)

For the Three Months Ended June 30, 2025 and 2024

(in millions)

	Power Program Appropriation Investment		Power Program Retained Earnings		Nonpower Programs Appropriation Investment, Net		Accumulated Other Comprehensive Income (Loss)		Total
Balance at March 31, 2024	$	258	$	15,736	$	521	$	(26)	$	16,489
Net income (loss)	—		182		(1)		—		181
Total other comprehensive loss	—		—		—		(6)		(6)
Return on power program appropriation investment	—		(1)		—		—		(1)
Balance at June 30, 2024	$	258	$	15,917	$	520	$	(32)	$	16,663
Balance at March 31, 2025	$	258	$	16,970	$	514	$	(52)	$	17,690
Net income (loss)	—		214		(2)		—		212
Total other comprehensive income	—		—		—		9		9
Return on power program appropriation investment	—		(2)		—		—		(2)
Balance at June 30, 2025	$	258	$	17,182	$	512	$	(43)	$	17,909
The accompanying notes are an integral part of these consolidated financial statements.

TENNESSEE VALLEY AUTHORITY

CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL (Unaudited)

For the Nine Months Ended June 30, 2025 and 2024

(in millions)

	Power Program Appropriation Investment		Power Program Retained Earnings		Nonpower Programs Appropriation Investment, Net		Accumulated Other Comprehensive Income (Loss)		Total
Balance at September 30, 2023	$	258	$	15,302	$	525	$	(29)	$	16,056
Net income (loss)	—		620		(5)		—		615
Total other comprehensive loss	—		—		—		(3)		(3)
Return on power program appropriation investment	—		(5)		—		—		(5)
Balance at June 30, 2024	$	258	$	15,917	$	520	$	(32)	$	16,663
Balance at September 30, 2024	$	258	$	16,437	$	518	$	(52)	$	17,161
Net income (loss)	—		751		(6)		—		745
Total other comprehensive income	—		—		—		9		9
Return on power program appropriation investment	—		(6)		—		—		(6)
Balance at June 30, 2025	$	258	$	17,182	$	512	$	(43)	$	17,909
The accompanying notes are an integral part of these consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited)

(Dollars in millions except where noted)

Note		Page
1	Summary of Significant Accounting Policies	12
2	Impact of New Accounting Standards and Interpretations	14
3	Restructuring	15
4	Accounts Receivable, Net	15
5	Inventories, Net	15
6	Other Current Assets	16
7	Plant Closures	16
8	Other Long-Term Assets	17
9	Regulatory Assets and Liabilities	18
10	Variable Interest Entities	18
11	Other Long-Term Liabilities	21
12	Asset Retirement Obligations	22
13	Debt and Other Obligations	22
14	Risk Management Activities and Derivative Transactions	24
15	Fair Value Measurements	29
16	Revenue	35
17	Other Income, Net	38
18	Supplemental Cash Flow Information	38
19	Benefit Plans	38
20	Collaborative Arrangement	39
21	Contingencies and Legal Proceedings	39

1.  Summary of Significant Accounting Policies

General

The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") for consolidated interim financial information. Accordingly, TVA's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. As such, they should be read in conjunction with the audited financial statements for the year ended September 30, 2024, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report"). In the opinion of management, all adjustments (consisting of items of a normal recurring nature) considered necessary for fair presentation are included on the consolidated interim financial statements.

Fiscal Year

TVA's fiscal year ends September 30.  Years (2025, 2024, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Basis of Presentation

The accompanying consolidated interim financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 10 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where

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changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.

Cash, Cash Equivalents, and Restricted Cash

Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:

Cash, Cash Equivalents, and Restricted Cash (in millions)
	At June 30, 2025		At September 30, 2024
Cash and cash equivalents	$	501	$	502
Restricted cash and cash equivalents included in Other long-term assets	21		21
Total cash, cash equivalents, and restricted cash	$	522	$	523

Allowance for Uncollectible Accounts

TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period.

To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.

To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.

The allowance for uncollectible accounts was $10 million and less than $1 million at June 30, 2025, and September 30, 2024, respectively, for trade accounts receivable. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one local power company customer ("LPC"). Additionally, loans receivable of $114 million and $105 million at June 30, 2025, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $2 million at both June 30, 2025, and September 30, 2024.

Pre-Commercial Plant Operations

As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on Paradise combustion turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023. TVA also capitalized related fuel costs for this project of $3 million for the nine months ended June 30, 2024, all of which was recognized in the three months ended December

31, 2023. Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during the nine months ended June 30, 2025, and Units 21-25 and 27-30 became operational on May 6, 2025. Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively.

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TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively.

Depreciation    

TVA accounts for depreciation of its properties using the composite depreciation convention of accounting. Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years, with the latest study implemented during the first quarter of 2022. Depreciation expense was $484 million and $463 million for the three months ended June 30, 2025 and 2024, respectively. Depreciation expense was $1.4 billion for both the nine months ended June 30, 2025 and 2024. See Note 7 — Plant Closures for a discussion of the impact of plant closures.

2.  Impact of New Accounting Standards and Interpretations     

The following accounting standards or rules have been issued but as of June 30, 2025, were not effective and have not been adopted by TVA:

Improvements to Reportable Segment Disclosures
Description	This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendments and all existing segment disclosures. The amendments are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. Upon adoption, a public entity should apply the amendments retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Annual disclosures to be adopted for the fiscal year ending September 30, 2025 and interim period disclosures to be adopted beginning October 1, 2025.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

Enhancement and Standardization of Climate-Related Disclosures for Investors
Description	In March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors). In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges, in March 2025, the SEC withdrew its legal defense of the rule, and in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule. The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances. If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2027 for non-accelerated filers.
Effective Date for TVA	Fiscal year beginning October 1, 2027.
Effect on the Financial Statements or Other Significant Matters	TVA is currently evaluating the impact of the rule on its disclosures.
Disaggregation of Income Statement Expenses
Description	This guidance improves the disclosures about a public entity's expenses in the notes to the financial statements and requires disclosure of specified information about certain costs and expenses. The amendments require a public entity to disclose, on an annual and interim basis, purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. Specified expenses, gains, or losses that are already disclosed under existing US GAAP are required to be included in the disaggregated income statement expense line item disclosures, and any relevant remaining amounts need to be described qualitatively. Separate disclosures of total selling expenses and an entity’s definition of those expenses are also required. The amendments are effective for public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, a public entity can apply the amendments prospectively or apply them retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Fiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

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3. Restructuring

TVA’s demand continues to grow, driving the need for significant future capital investment. TVA must continue to drive efficiencies and cost savings across the enterprise to provide affordable, reliable electricity, while funding the capital investment needed to meet growing demand. This effort has evolved into an Enterprise Transformation Program ("ETP") focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through supply chain, and making the workforce more efficient. As part of these efforts, certain employees are eligible for severance payments. These amounts are recognized in Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred. Severance costs that have been incurred but not paid are included in Accounts payable and accrued liabilities on TVA's Consolidated Balance Sheets. The table below summarizes the activity related to severance costs:

Severance Cost Liability Activity (in millions)
Severance cost liability at September 30, 2024	$	—
Liabilities incurred during the period	40
Actual costs paid during the period	(26)
Severance cost liability at June 30, 2025	$	14

4.  Accounts Receivable, Net

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:

Accounts Receivable, Net (in millions)
	At June 30, 2025		At September 30, 2024
Power receivables	$	1,791	$	1,683
Other receivables	106		118
Allowance for uncollectible accounts(1)	(10)		—
Accounts receivable, net	$	1,887	$	1,801

Note

(1) To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date, among other considerations. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one LPC customer.

5.  Inventories, Net

The table below summarizes the types and amounts of TVA's inventories:

Inventories, Net (in millions)
	At June 30, 2025		At September 30, 2024
Materials and supplies inventory	$	980	$	931
Fuel inventory	280		286
Renewable energy certificates/emissions allowance inventory, net	10		11
Allowance for inventory obsolescence	(86)		(73)
Inventories, net	$	1,184	$	1,155

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6. Other Current Assets

Other current assets consisted of the following:

Other Current Assets  (in millions)
	At June 30, 2025		At September 30, 2024
Inventory work-in-progress	$	52	$	41
Prepaid software maintenance	33		22
Prepaid insurance	27		19
Current portion of prepaid long-term service agreements	16		7
Commodity contract derivative assets	13		5
Prepaid fees and dues	11		6
Cloud assets	3		13
Other	14		7
Other current assets	$	169	$	120

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

7. Plant Closures

Background

TVA must continuously evaluate all generating assets to ensure an optimal energy portfolio that provides safe, clean, and reliable power while maintaining flexibility and fiscal responsibility to the people of the Tennessee Valley. In January 2023, TVA issued its Record of Decision to retire the two coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028. In April 2024, TVA issued its Record of Decision to retire the nine coal-fired units at Kingston Fossil Plant ("Kingston") by CY 2027. TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental reviews, public input, and TVA Board of Directors ("TVA Board") approval. TVA is also reviewing how recent executive orders impact supply and planning needs related to its coal-fired fleet.

Financial Impact

TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. TVA's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. The cumulative impact approximates $160 million of additional depreciation since January 2023, related to this decision. In addition, TVA's decision to retire the nine units at Kingston is estimated to result in approximately $9 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. The cumulative impact approximates $45 million of additional depreciation since April 2024, related to this decision.

TVA also recognized $12 million and $11 million in operating and maintenance expense during the nine months ended June 30, 2025 and 2024, respectively, related to additional inventory reserves and write-offs related to TVA's coal-fired fleet, including Kingston and Cumberland. Of these amounts, $4 million was recognized during both the three months ended June 30, 2025 and 2024.

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8.  Other Long-Term Assets

The table below summarizes the types and amounts of TVA's other long-term assets:

Other Long-Term Assets (in millions)
	At June 30, 2025		At September 30, 2024
Loans and other long-term receivables, net	$	111	$	84
Cloud assets	98		35
Prepaid long-term service agreements	68		62
Prepaid capital assets	67		29
EnergyRight® receivables, net	44		44
Commodity contract derivative assets	17		2
Other	85		88
Total other long-term assets	$	490	$	344

Loans and Other Long-Term Receivables. At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million and $21 million, respectively. Loans receivables are reported net of allowances for uncollectible accounts. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.

The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.

Allowance Components (in millions)
	At June 30, 2025		At September 30, 2024
EnergyRight® loan reserve	$	1	$	1
Economic development loan specific loan reserve	1		1
Total allowance for loan losses	$	2	$	2

Cloud Assets. At June 30, 2025, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $3 million and $13 million, respectively.

Prepaid Long-Term Service Agreements. At June 30, 2025, and September 30, 2024, prepayments of $16 million and $7 million, respectively, were recorded in Other current assets.

EnergyRight® Receivables. In association with the EnergyRight® program, TVA's LPCs offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 11 — Other Long-Term Liabilities for information regarding the associated financing obligation.

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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9.  Regulatory Assets and Liabilities

TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. Components of regulatory assets and regulatory liabilities are summarized in the table below.

Regulatory Assets and Liabilities (in millions)
	At June 30, 2025		At September 30, 2024
Current regulatory assets
Unrealized losses on commodity derivatives	$	22	$	102
Unrealized losses on interest rate derivatives	51		54
Fuel cost adjustment receivable	79		35
Total current regulatory assets	152		191
Non-current regulatory assets
Non-nuclear decommissioning costs	6,135		6,187
Retirement benefit plans deferred costs	1,915		1,979
Nuclear decommissioning costs	276		362
Unrealized losses on interest rate derivatives	321		447
Environmental compliance and remediation costs	313		215
Unrealized losses on commodity derivatives	8		64
Other non-current regulatory assets	169		154
Total non-current regulatory assets	9,137		9,408
Total regulatory assets	$	9,289	$	9,599
Current regulatory liabilities
Fuel cost adjustment tax equivalents	$	189	$	169
Unrealized gains on commodity derivatives	13		5
Total current regulatory liabilities	202		174
Non-current regulatory liabilities
Retirement benefit plans deferred credits	68		81
Unrealized gains on commodity derivatives	17		2
Total non-current regulatory liabilities	85		83
Total regulatory liabilities	$	287	$	257

10.  Variable Interest Entities

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.

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John Sevier VIEs

In 2012, TVA entered into a $1.0 billion construction management agreement and lease financing arrangement with John Sevier Combined Cycle Generation LLC ("JSCCG") for the completion and lease by TVA of the John Sevier Combined Cycle Facility ("John Sevier CCF"). JSCCG is a special single-purpose limited liability company formed in January 2012 to finance the John Sevier CCF through a $900 million secured note issuance (the "JSCCG notes") and the issuance of $100 million of membership interests subject to mandatory redemption.  The membership interests were purchased by John Sevier Holdco LLC ("Holdco").  Holdco is a special single-purpose entity, also formed in January 2012, established to acquire and hold the membership interests in JSCCG.  A non-controlling interest in Holdco is held by a third party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated. 

The membership interests held by Holdco in JSCCG were purchased with proceeds from the issuance of $100 million of secured notes (the "Holdco notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each January 15 and July 15, with a final payment due in January 2042. The payment dates for the mandatorily redeemable membership interests are the same as those of the Holdco notes. The sale of the JSCCG notes, the membership interests in JSCCG, and the Holdco notes closed in January 2012. The JSCCG notes are secured by TVA's lease payments, and the Holdco notes are secured by Holdco's investment in, and amounts receivable from, JSCCG. TVA's lease payments to JSCCG are equal to and payable on the same dates as JSCCG's and Holdco's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JSCCG and Holdco. Certain agreements related to this transaction contain default and acceleration provisions.

Due to its participation in the design, business activity, and credit and financial support of JSCCG and Holdco, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JSCCG and Holdco and, as such, is required to account for the VIEs on a consolidated basis. Holdco's membership interests in JSCCG are eliminated in consolidation.

Southaven VIE

In 2013, TVA entered into a $400 million lease financing arrangement with Southaven Combined Cycle Generation LLC ("SCCG") for the lease by TVA of the Southaven Combined Cycle Facility ("Southaven CCF"). SCCG is a special single-purpose limited liability company formed in June 2013 to finance the Southaven CCF through a $360 million secured notes issuance (the "SCCG notes") and the issuance of $40 million of membership interests subject to mandatory redemption. The membership interests were purchased by Southaven Holdco LLC ("SHLLC"). SHLLC is a special single-purpose entity, also formed in June 2013, established to acquire and hold the membership interests in SCCG. A non-controlling interest in SHLLC is held by a third party through nominal membership interests, to which none of the income, expenses, and cash flows of SHLLC are allocated.

The membership interests held by SHLLC were purchased with proceeds from the issuance of $40 million of secured notes (the "SHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each February 15 and August 15, with a final payment due on August 15, 2033. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes, and the payment amounts are sufficient to provide returns on, as well as returns of, capital until the investment has been repaid to SHLLC in full. The rate of return on investment to SHLLC is seven percent, which is reflected as interest expense in the Consolidated Statements of Operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC on each lease payment date as agreed in SHLLC's formation documents (the "Seven States Return"). The current and long-term portions of the Membership interests of VIE subject to mandatory redemption are included in Accounts payable and accrued liabilities and Other long-term liabilities, respectively.

The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes. The SCCG notes are secured by TVA's lease payments, and the SHLLC notes are secured by SHLLC's investment in, and amounts receivable from, SCCG. TVA's lease payments to SCCG are payable on the same dates as SCCG's and SHLLC's semi-annual debt service payments and are equal to the sum of (i) the amount of SCCG's semi-annual debt service payments, (ii) the amount of SHLLC's semi-annual debt service payments, and (iii) the amount of the Seven States Return. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by SCCG and SHLLC. Certain agreements related to this transaction contain default and acceleration provisions.

In the event that TVA were to choose to exercise an early buy out feature of the Southaven facility lease, in part or in whole, TVA must pay to SCCG amounts sufficient for SCCG to repay or partially repay on a pro rata basis the membership interests held by SHLLC, including any outstanding investment amount plus accrued but unpaid return. TVA also has the right, at any time and without any early redemption of the other portions of the Southaven facility lease payments due to SCCG, to fully repay SHLLC's investment, upon which repayment SHLLC will transfer the membership interests to a designee of TVA.

TVA participated in the design, business activity, and financial support of SCCG and has determined that it has a direct variable interest in SCCG resulting from risk associated with the value of the Southaven CCF at the end of the lease term. Based on its analysis, TVA has determined that it is the primary beneficiary of SCCG and, as such, is required to account for the VIE on a consolidated basis.

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Johnsonville VIE

In October 2024, TVA entered into an $800 million construction management agreement and lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG") for the completion and lease by TVA of the Johnsonville Aeroderivative Combustion Turbine Facility ("Johnsonville Facility"). JACTG is a special single-purpose limited liability company formed in September 2024 to finance the Johnsonville Facility through a $720 million secured note issuance (the "JACTG notes") and the issuance of $80 million of membership interests subject to mandatory redemption. The membership interests were purchased by Johnsonville Holdco LLC ("JHLLC"). JHLLC is a special single-purpose entity, also formed in September 2024, established to acquire and hold the membership interests in JACTG. A non-controlling interest in JHLLC is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated.

The membership interests held by JHLLC in JACTG were purchased with proceeds from the issuance of $80 million of secured notes (the "JHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each April 1 and October 1, with a final payment due in October 2054. The payment dates for the mandatorily redeemable membership interests are the same as those of the JHLLC notes. The sale of the JACTG notes, the membership interests in JACTG, and the JHLLC notes closed in October 2024. The JACTG notes are secured by TVA's lease payments, and the JHLLC notes are secured by JHLLC's investment in, and amounts receivable from, JACTG. TVA's lease payments to JACTG are equal to and payable on the same dates as JACTG's and JHLLC's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JACTG and JHLLC. Certain agreements related to this transaction contain default and acceleration provisions.

Due to its participation in the design, business activity, and credit and financial support of JACTG and JHLLC, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JACTG and JHLLC and, as such, is required to account for the VIEs on a consolidated basis. JHLLC's membership interests in JACTG are eliminated in consolidation.

Impact on Consolidated Financial Statements

The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, and JHLLC at June 30, 2025, and September 30, 2024, as reflected on the Consolidated Balance Sheets, are as follows:

Summary of Impact of VIEs on Consolidated Balance Sheets (in millions)
	At June 30, 2025		At September 30, 2024
Current liabilities
Accrued interest	$	30	$	9
Accounts payable and accrued liabilities	1		1
Current maturities of long-term debt of variable interest entities	48		37
Total current liabilities	79		47
Other liabilities
Other long-term liabilities	15		16
Long-term debt, net
Long-term debt of variable interest entities, net	1,651		897
Total liabilities	$	1,745	$	960

Interest expense of $21 million and $12 million for the three months ended June 30, 2025 and 2024, respectively, and $64 million and $35 million for the nine months ended June 30, 2025 and 2024, respectively, is included in the Consolidated Statements of Operations related to debt of VIEs and membership interests of VIEs subject to mandatory redemption.

Creditors of the VIEs do not have any recourse to the general credit of TVA. TVA does not have any obligations to provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions.

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11.  Other Long-Term Liabilities

Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to environmental compliance and remediation, and long-term project cost accruals. The table below summarizes the types and amounts of Other long-term liabilities:

Other Long-Term Liabilities (in millions)
	At June 30, 2025		At September 30, 2024(1)
Interest rate swap liabilities	$	622	$	792
Environmental compliance and remediation costs	272		212
Long-term project cost accruals	198		140
Currency swap liabilities	85		109
Operating lease liabilities	74		88
EnergyRight® financing obligation	52		52
Long-term deferred compensation	47		50
Long-term deferred revenue	38		48
Accrued long-term service agreements	20		7
Advances for construction	15		55
Commodity contract derivative liabilities	8		64
Other	76		95
Total other long-term liabilities	$	1,507	$	1,712

Note

(1) At September 30, 2024, $7 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Accrued long-term service agreements (a component of Other long-term liabilities) to conform with current year presentation.

Interest Rate Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities.

Environmental Compliance and Remediation Costs. At June 30, 2025, and September 30, 2024, the current amount of the environmental compliance and remediation costs reported in Accounts payable and accrued liabilities was $41 million and $3 million, respectively.

Long-Term Project Cost Accruals. At June 30, 2025, and September 30, 2024, the current amount of the long-term project cost accruals reported in Accounts payable and accrued liabilities was $219 million and $124 million, respectively.

Currency Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities.

Operating Lease Liabilities. At June 30, 2025, and September 30, 2024, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $56 million and $63 million, respectively.

EnergyRight® Financing Obligation. At both June 30, 2025, and September 30, 2024, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $13 million. See Note 8 — Other Long-Term Assets for information regarding the associated loans receivable.

Long-Term Deferred Compensation. At June 30, 2025, and September 30, 2024, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $57 million and $74 million, respectively.

Long-Term Deferred Revenue. At June 30, 2025, and September 30, 2024, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $42 million and $28 million, respectively.

Accrued Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, parts received and services rendered exceed payments made. The current and long-term portions of the resulting obligation are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's

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Consolidated Balance Sheets. At June 30, 2025, and September 30, 2024, the current amount of accrued long-term service agreements recorded in Accounts payable and accrued liabilities was $11 million and $16 million, respectively.

Advances for Construction. At June 30, 2025, and September 30, 2024, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $127 million and $60 million, respectively.

Commodity Contract Derivative Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

12.  Asset Retirement Obligations

During the nine months ended June 30, 2025, TVA's total asset retirement obligations ("ARO") liability increased $118 million as a result of increases from periodic accretion, partially offset by revisions in estimate and settlements related to retirement projects that were conducted during the period. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During the nine months ended June 30, 2025, $165 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 9 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 15 — Fair Value Measurements — Investment Funds and Note 21 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.

Asset Retirement Obligation Activity (in millions)
	Nuclear		Non-nuclear		Total
Balance at September 30, 2024	$	3,814	$	6,992	$	10,806	(1)
Settlements	(9)		(178)		(187)
Revisions in estimate (non-cash)	2		(24)		(22)
Accretion (recorded as regulatory asset)	130		197		327
Balance at June 30, 2025	$	3,937	$	6,987	$	10,924	(1)

Note

(1) Includes $316 million and $283 million at June 30, 2025, and September 30, 2024, respectively, in Current liabilities.

Revisions in non-nuclear estimates decreased the liability balance by $24 million for the nine months ended June 30, 2025. The decrease was primarily attributable to a change in closure liabilities of $34 million at Paradise Fossil Plant based on scope changes, new vendor bids, and updated cost estimates for activities associated with final closure. The decrease was partially offset by increased revisions in estimates of $16 million related to the final legacy coal combustion residual rule ("Legacy CCR Rule").

13.  Debt and Other Obligations

Debt Outstanding

Total debt outstanding at June 30, 2025, and September 30, 2024, consisted of the following:

Debt Outstanding  (in millions)
	At June 30, 2025		At September 30, 2024
Short-term debt
Short-term debt, net of discounts	$	319	$	1,167
Current maturities of power bonds issued at par	1,370		1,022
Current maturities of long-term debt of VIEs issued at par	48		37
Total current debt outstanding, net	1,737		2,226
Long-term debt
Long-term power bonds(1)	19,389		17,995
Long-term debt of VIEs, net	1,651		897
Unamortized discounts, premiums, issue costs, and other	(160)		(128)
Total long-term debt, net	20,880		18,764
Total debt outstanding	$	22,617	$	20,990

Note

(1) Includes total net exchange gain from currency transactions of $48 million and $62 million at June 30, 2025, and September 30, 2024, respectively.

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Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2024, to June 30, 2025:

Debt Securities Activity
	Date	Amount (in millions)
Issues
Debt of variable interest entities	October 2024	$	800
2025 Series A(1)	February 2025	1,250
2025 Series B(2)	May 2025	1,500
Discount on debt issues		(28)
Total long-term debt issues		$	3,522
Redemptions/Maturities(3)
2009 Series B	December 2024	$	1
2020 Series A	May 2025	1,000
2009 Series B	June 2025	21
Total redemptions/maturities of power bonds		1,022
Debt of variable interest entities		23
Total redemptions/maturities of debt		$	1,045

Notes

(1) The 2025 Series A Bonds were issued at 98.517 percent of par.

(2) The 2025 Series B Bonds were issued at 99.360 percent of par.

(3) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA has funding available under four revolving credit facilities totaling $2.7 billion. See the table below for additional information on the four revolving credit facilities. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At June 30, 2025, and September 30, 2024, there were $517 million and $566 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps. See Note 14 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral. TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging Program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit.

The following table provides additional information regarding TVA's funding available under the four revolving credit facilities:

Summary of Credit Facilities At June 30, 2025 (in millions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
March 2026	$	150	$	38	$	—	$	112
September 2026	1,000		71		—		929
March 2027	1,000		194		—		806
February 2028	500		214		—		286
Total	$	2,650	$	517	$	—	$	2,133

TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the Tennessee Valley Authority Act of 1933, as amended ("TVA Act"), have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2025 with a maturity date of September 30, 2025. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been

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available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less. There were no outstanding borrowings under the facility at June 30, 2025. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

14.  Risk Management Activities and Derivative Transactions

TVA is exposed to various risks related to commodity prices, investment prices, interest rates, currency exchange rates, and inflation as well as counterparty credit and performance risks.  To help manage certain of these risks, TVA has historically entered into various derivative transactions, principally commodity option contracts, forward contracts, swaps, swaptions, futures, and options on futures.  

Overview of Accounting Treatment

TVA recognizes certain of its derivative instruments as either assets or liabilities on its Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of these instruments depends on (1) whether TVA uses regulatory accounting to defer the derivative gains and losses, (2) whether the derivative instrument has been designated and qualifies for hedge accounting treatment, and (3) if so, the type of hedge relationship (for example, cash flow hedge).

The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1)  Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	Objective of Hedge Transaction	Accounting for Derivative Hedging Instrument	2025		2024		2025		2024
Currency swaps	To protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)	Unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) ("AOCI") and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction	$	47	$	1	$	24	$	17

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	2025		2024		2025		2024
Currency swaps	$	38	$	7	$	15	$	20

Note

(1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

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Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment Amount of Gain (Loss) Recognized in Income on Derivatives(1) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivative Type	Objective of Derivative	Accounting for Derivative Instrument	2025		2024		2025		2024
Interest rate swaps	To fix short-term debt variable rate to a fixed rate (interest rate risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow	$	(11)	$	(8)	$	(33)	$	(23)
Commodity derivatives under the FHP	To protect against fluctuations in market prices of purchased commodities (price risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)	(13)		(72)		(64)		(227)

Notes

(1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three and nine months ended June 30, 2025 and for the three and nine months ended June 30, 2024.

(2) Of the amount recognized for the three months ended June 30, 2025, $3 million and $10 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2024, $59 million and $13 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2025, $12 million and $52 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2024, $186 million and $41 million were reported in Fuel expense and Purchased power expense, respectively.

Fair Values of TVA Derivatives (in millions)
	At June 30, 2025			At September 30, 2024
Derivatives That Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Currency swaps
£250 million Sterling	$	(35)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(31)	$	(49)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)
£150 million Sterling	(56)		Accounts payable and accrued liabilities $(2); Other long-term liabilities $(54)	(67)		Accounts payable and accrued liabilities $(3); Other long-term liabilities $(64)
Derivatives That Do Not Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Interest rate swaps
$1.0 billion notional	$	(508)	Accounts payable and accrued liabilities $(30); Accrued interest $(8); Other long-term liabilities $(470)	$	(622)	Accounts payable and accrued liabilities $(10); Accrued interest $(26); Other long-term liabilities $(586)
$476 million notional	(165)		Accounts payable and accrued liabilities $(12); Accrued interest $(1); Other long-term liabilities $(152)	(218)		Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(206)
Commodity contract derivatives	1		Other current assets $6; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)	2		Other current assets $5; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)
Commodity derivatives under the FHP	(1)		Other long-term assets $17; Other current assets $7; Accounts payable and accrued liabilities $(19); Other long-term liabilities $(6)	(161)		Accounts payable and accrued liabilities $(99); Other long-term liabilities $(62)

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Cash Flow Hedging Strategy for Currency Swaps

To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred.  TVA had two currency swaps outstanding at June 30, 2025, with total currency exposure of £400 million and expiration dates in 2032 and 2043.

When the dollar strengthens against the British pound sterling, the exchange gain on the Bond liability and related accrued interest is offset by an equal amount of loss on the swap contract that is reclassified out of AOCI. Conversely, the exchange loss on the Bond liability and related accrued interest is offset by an equal amount of gain on the swap contract that is reclassified out of AOCI. All such exchange gains or losses on the Bond liability and related accrued interest are included in Long-term debt, net and Accrued interest, respectively. The offsetting exchange losses or gains on the swap contracts are recognized in AOCI. If any gain (loss) were to be incurred as a result of the early termination of the foreign currency swap contract, the resulting income (expense) would be amortized over the remaining life of the associated Bond as a component of Interest expense. The values of the currency swap liabilities are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.

Derivatives Not Receiving Hedge Accounting Treatment

Interest Rate Derivatives.  Generally TVA uses interest rate swaps to fix variable short-term debt to a fixed rate, and TVA uses regulatory accounting treatment to defer the mark-to-market ("MtM") gains and losses on its interest rate swaps. The net deferred unrealized gains and losses are classified as regulatory liabilities or assets on TVA's Consolidated Balance Sheets and are included in the ratemaking formula when gains or losses are realized. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets, and realized gains and losses, if any, are included on TVA's Consolidated Statements of Operations. For the three months ended June 30, 2025 and 2024, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $6 million and $32 million, respectively. For the nine months ended June 30, 2025 and 2024, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $141 million and the increase in unrealized losses of $63 million, respectively. TVA may hold short-term debt balances lower than the notional amount of the interest rate swaps from time to time due to changes in business conditions and other factors. While actual balances vary, TVA generally plans to maintain average balances of short-term debt equal to or in excess of the combined notional amount of the interest rate swaps.

Commodity Derivatives. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA may also enter into power purchase agreements ("PPAs") that provide an option to financially settle contracted power deliveries. This option creates an embedded derivative in the hosting PPA. TVA marks to market these contracts and defers the unrealized gains (losses) as regulatory liabilities (assets). At June 30, 2025, TVA's natural gas contract derivatives had terms of up to 10 years.

Commodity Contract Derivatives
	At June 30, 2025				At September 30, 2024
	Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)
Natural gas contract derivatives	57	412 million mmBtu	$	1	45	321 million mmBtu	$	2

Commodity Derivatives under the FHP. Currently, TVA is hedging exposure to the price of natural gas under the FHP. There is no Value at Risk aggregate transaction limit under the current FHP structure, but the TVA Board reviews and authorizes the use of tolerances and measures annually. TVA's FHP policy prohibits trading financial instruments under the FHP for speculative purposes. At June 30, 2025, TVA's natural gas swap contracts under the FHP had remaining terms of up to five years.

Commodity Derivatives under Financial Hedging Program(1)
	At June 30, 2025					At September 30, 2024
	Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)
Natural gas swap contracts	210	284	million mmBtu	$	(1)	126	230	million mmBtu	$	(161)

Note

(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.

TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity.

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Offsetting of Derivative Assets and Liabilities

The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:

Derivative Assets and Liabilities(1) (in millions)
	At June 30, 2025		At September 30, 2024
Assets
Commodity contract derivatives	$	6	$	7
Commodity derivatives under the FHP(2)	24		—
Total derivatives subject to master netting or similar arrangement	$	30	$	7
Liabilities
Currency swaps	$	91	$	116
Interest rate swaps(3)	673		840
Commodity contract derivatives	5		5
Commodity derivatives under the FHP(2)	25		161
Total derivatives subject to master netting or similar arrangement	$	794	$	1,122

Notes

(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either June 30, 2025, or September 30, 2024.

(2) At June 30, 2025, the gross derivative asset and gross derivative liability were $54 million and $55 million, respectively, with offsetting amounts for each totaling $30 million. At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.

(3) Letters of credit of $411 million and $535 million were posted as collateral at June 30, 2025, and September 30, 2024, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.

Other Derivative Instruments

Investment Fund Derivatives.  Investment funds consist primarily of funds held in the Nuclear Decommissioning Trust ("NDT"), the Asset Retirement Trust ("ART"), the Supplemental Executive Retirement Plan ("SERP"), the Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). See Note 15 — Fair Value Measurements — Investment Funds for a discussion of the trusts, plans, and types of investments. The NDT and ART may invest in derivative instruments which may include swaps, futures, options, forwards, and other instruments. At June 30, 2025, and September 30, 2024, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $18 million and $11 million at June 30, 2025, and September 30, 2024, respectively.

Collateral.  TVA's interest rate swaps, currency swaps, and commodity derivatives under the FHP contain contract provisions that require a party to post collateral (in a form such as cash or a letter of credit) when the party's liability balance under the agreement exceeds a certain threshold.  At June 30, 2025, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $794 million.  TVA's collateral obligations at June 30, 2025, under these arrangements were $439 million, for which TVA had posted $411 million in letters of credit. These letters of credit reduce the available balance under the related credit facilities.  TVA's assessment of the risk of its nonperformance includes a reduction in its exposure under the interest rate swap contracts as a result of this posted collateral.

For all of its derivative instruments with credit-risk related contingent features:

•If TVA remains a majority-owned U.S. government entity but S&P Global Ratings ("S&P") or Moody's Investors Service, Inc. ("Moody's") downgrades TVA's credit rating to AA or Aa2, respectively, TVA's collateral obligations would likely increase by $22 million, and

•If TVA ceases to be majority-owned by the U.S. government, TVA's credit rating would likely be downgraded and TVA would be required to post additional collateral.

Counterparty Risk

TVA may be exposed to certain risks when a counterparty has the potential to fail to meet its obligations in accordance with agreed terms. These risks may be related to credit, operational, or nonperformance matters. To mitigate certain counterparty risk, TVA analyzes the counterparty's financial condition prior to entering into an agreement, establishes credit limits, monitors the appropriateness of those limits, as well as any changes in the creditworthiness of the counterparty, on an ongoing basis, and when required, employs credit mitigation measures, such as collateral or prepayment arrangements and

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master purchase and sale agreements.

Customers.  TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $1.8 billion and $1.7 billion of receivables from power sales outstanding at June 30, 2025, and September 30, 2024, respectively, nearly all of the counterparties were rated investment grade. The majority of the obligations of these customers that are not investment grade are secured by collateral. TVA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional utilities related to either delivered power or the replacement of open positions of longer-term purchased power or fuel agreements. TVA believes its policies and procedures for counterparty performance risk reviews have generally protected TVA against significant exposure related to market and economic conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts, Note 4 — Accounts Receivable, Net, and Note 8 — Other Long-Term Assets.

TVA had revenue from two LPCs that collectively accounted for 16 percent of total operating revenues for both the nine months ended June 30, 2025 and 2024.

Suppliers.  TVA assesses potential supplier performance risks, including procurement of fuel, purchased power, parts, and services. If suppliers are unable or unwilling to perform under TVA's existing contracts, if TVA is unable to obtain similar services or supplies from other vendors, or if there are significant changes to tariffs impacting suppliers, TVA could experience delays, disruptions, additional costs, or other operational outcomes that may impact generation, maintenance, and capital programs. If certain fuel or purchased power suppliers fail to perform under the terms of their contract with TVA, TVA might lose the money that it paid to the supplier under the contract and have to purchase replacement fuel or power on the spot market, perhaps at a significantly higher price than TVA was entitled to pay under the contract. In addition, TVA might not be able to acquire replacement fuel or power in a timely manner and thus might be unable to satisfy its own obligations to deliver power. TVA continues evaluating potential supplier performance risks and supplier impact but cannot determine or predict the duration of such risks/impacts or the extent to which such risks/impacts could affect TVA's business, operations, and financial results or cause potential business disruptions.

TVA continues to experience impacts due to inflation, supply chain material challenges, and labor availability. This has led to project delays, limited availability, and/or price increases for supplies and labor. TVA has been able to manage these challenges with limited business disruptions at this time; however, should pressures continue long term, TVA could experience more significant disruptions and pressure to further increase power rates.

Natural Gas and Fuel Oil. TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market. TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines. TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions. TVA uses contracts of various lengths and terms to meet the projected natural gas needs of its natural gas fleet. TVA also maintains on-site, fuel oil backup to operate at the majority of the CT sites in the event of major supply disruptions. In the event a supplier experiences an incident that limits its ability to fulfill its firm contractual obligations to supply TVA with natural gas, TVA intends to leverage its storage and balancing services and/or replace the volume with a third party to ensure reliability of generation.

Coal. To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers as of June 30, 2025. The contracted supply of coal is sourced from several geographic regions of the U.S. and is delivered via barge and rail. As a result of emerging technologies, environmental regulations, industry trends, and natural gas market volatility over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios. A long-term continued decline in demand for coal could result in more consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios.

Nuclear Fuel. Nuclear fuel is obtained predominantly through long-term uranium concentrate supply contracts, contracted conversion services, contracted enrichment services, or a combination thereof, and contracted fuel fabrication services. The supply markets for uranium concentrates and certain nuclear fuel services are subject to price fluctuations and availability restrictions. Supply market conditions may make procurement contracts subject to credit risk related to the potential nonperformance of counterparties. In the event of nonperformance by these or other suppliers, TVA believes that replacement uranium concentrate and nuclear fuel services can be obtained, although at prices that may be unfavorable when compared to the prices under the current supply agreements.

Purchased Power. TVA acquires power from a variety of power producers through long-term and short-term PPAs as well as through spot market purchases. Because of the reliability risk of purchased power, TVA requires that the PPAs contain certain counterparty performance assurance requirements to help insure counterparty performance during the term of the agreements.

Other Suppliers. Solar supply chain constraints, commodity price increases, legislative changes, trade policy issues, and investigations into and affecting solar panel imports have created challenges for the U.S. solar industry. TVA's existing solar PPA portfolio is not immune from these challenges. Similar to the experience of the rest of the industry, the majority of TVA's

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contracted PPAs from previous requests for proposals that are not yet online have been impacted by project delays and price increases.

Derivative Counterparties.  TVA has entered into physical and financial contracts that are classified as derivatives for hedging purposes, and TVA's NDT, ART, and qualified defined benefit plan ("pension plan") have entered into derivative contracts for investment purposes. If a counterparty to one of the physical or financial derivative transactions defaults, TVA might incur costs in connection with entering into a replacement transaction. If a counterparty to the derivative contracts into which the NDT, the ART, or the pension plan have entered for investment purposes defaults, the value of the investment could decline significantly or perhaps become worthless. TVA has concentrations of credit risk from the banking, coal, and gas industries because multiple companies in these industries serve as counterparties to TVA in various derivative transactions. At June 30, 2025, all of TVA's commodity derivatives under the FHP, currency swaps, and interest rate swaps were with counterparties whose Moody's credit ratings were A2 or higher. TVA classifies forward natural gas contracts as derivatives. At June 30, 2025, the forward natural gas contracts were with counterparties whose ratings ranged from B1 to A1.

15.  Fair Value Measurements

Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs.

Valuation Techniques

The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:

Level 1	—	Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2	—	Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3	—	Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.

A financial instrument's level within the fair value hierarchy (where Level 1 is the highest and Level 3 is the lowest) is based on the lowest level of input significant to the fair value measurement.

The following sections describe the valuation methodologies TVA uses to measure different financial instruments at fair value. Except for gains and losses on SERP, DCP, and RP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss). Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements.

Investment Funds

At June 30, 2025, Investment funds were comprised of $5.3 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, DCP, and RP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $3.5 billion and $1.6 billion, respectively, at June 30, 2025.

TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations. The DCP is designed to provide participants with the ability to defer compensation to future periods.

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The RP is a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by Internal Revenue Service ("IRS") rules to save additional amounts for retirement and receive non-elective and matching employer contributions. The NDT, ART, SERP, DCP, and RP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance.

The NDT, ART, SERP, DCP, and RP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities, and real estate investment trust securities and certain derivative instruments are measured based on quoted exchange prices in active markets and are classified as Level 1 valuations. Fixed-income investments, high-yield fixed-income investments, currencies, and most derivative instruments are non-exchange traded and are classified as Level 2 valuations. These measurements are based on market and income approaches with observable market inputs. Cash equivalents and other short-term investments are highly liquid securities with maturities of less than three months and 12 months, respectively. These consist primarily of discount securities such as repurchase agreements and U.S. Treasury bills. These securities may be priced at cost, which approximates fair value due to the short-term nature of the instruments. These securities are classified as Level 2. Active market pricing may be utilized for U.S. Treasury bills, which are classified as Level 1.

Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers. These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years. The investment period is generally, at a minimum, 10 years or longer. The NDT had unfunded commitments related to private equity limited partnerships of $368 million, private real assets of $128 million, and private credit of $119 million at June 30, 2025. The ART had unfunded commitments related to limited partnerships in private equity of $143 million, private real assets of $77 million, and private credit of $58 million at June 30, 2025. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. Private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset value ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.

Commingled funds represent investment funds comprising multiple individual financial instruments. The commingled funds held by the NDT, ART, SERP, DCP, and RP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities. All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments. The fair value of commingled funds is based on NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds. These commingled funds can be redeemed at the measurement date NAV and are classified as Commingled funds measured at NAV in the fair value hierarchy.

Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Annual Report and Note 9 — Regulatory Assets and Liabilities. TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:

Unrealized Investment Gains (Losses)(1) (in millions)
		Three Months Ended June 30				Nine Months Ended June 30
Fund	Financial Statement Presentation	2025		2024		2025		2024
NDT	Regulatory assets(2)	$	200	$	(21)	$	133	$	230
ART	Regulatory assets(3)	97		(4)		69		119
SERP	Other income (expense), net	5		—		(1)		9
DCP	Other income (expense), net	2		—		—		2

Notes

(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2025 and for both the three and nine months ended June 30, 2024, and therefore were not represented in the table above.

(2) Includes $41 million and $7 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $12 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

(3) Includes $10 million and $1 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $5 million of unrealized losses and $24 million of unrealized gains related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

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Currency and Interest Rate Swap Derivatives

See Note 14 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps. These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments.

Commodity Contract Derivatives and Commodity Derivatives under the FHP

Commodity Contract Derivatives. Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage service. These contracts are classified as Level 2 valuations.

Commodity Derivatives under the FHP. Swap contracts are valued using a pricing model based on New York Mercantile Exchange inputs and are subject to nonperformance risk outside of the exit price. These contracts are classified as Level 2 valuations.

See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP.

Nonperformance Risk

The assessment of nonperformance risk, which includes credit risk, considers changes in current market conditions, readily available information on nonperformance risk, letters of credit, collateral, other arrangements available, and the nature of master netting arrangements. TVA is a counterparty to currency swaps, interest rate swaps, commodity contracts, and other derivatives which subject TVA to nonperformance risk. Nonperformance risk on the majority of investments and certain exchange-traded instruments held by TVA is incorporated into the exit price that is derived from quoted market data that is used to mark the investment to market.

Nonperformance risk for most of TVA's derivative instruments is an adjustment to the initial asset/liability fair value. TVA adjusts for nonperformance risk, both of TVA (for liabilities) and the counterparty (for assets), by applying credit valuation adjustments ("CVAs"). TVA determines an appropriate CVA for each applicable financial instrument based on the term of the instrument and TVA's or the counterparty's credit rating as obtained from Moody's. For companies that do not have an observable credit rating, TVA uses internal analysis to assign a comparable rating to the counterparty. TVA discounts each financial instrument using the historical default rate (as reported by Moody's for CY 1983 to CY 2024) for companies with a similar credit rating over a time period consistent with the remaining term of the contract. The application of CVAs resulted in no change in the fair value of assets and a less than $3 million decrease in the fair value of liabilities at June 30, 2025.

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Fair Value Measurements

The following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2025, and September 30, 2024. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels.

Fair Value Measurements At June 30, 2025 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	736	$	—	$	—	$	736
Government debt securities(1)(2)	408		44		—		452
Corporate debt securities(3)	—		379		—		379
Mortgage and asset-backed securities	—		35		—		35
Institutional mutual funds	352		—		—		352
Forward debt securities contracts	—		18		—		18
Cash equivalents and other short-term investments(2)(4)	48		202		—		250
Private equity funds measured at net asset value(5)	—		—		—		868
Private real asset funds measured at net asset value(5)	—		—		—		474
Private credit funds measured at net asset value(5)	—		—		—		267
Commingled funds measured at net asset value(5)	—		—		—		1,446
Total investments	1,544		678		—		5,277
Commodity contract derivatives	—		6		—		6
Commodity derivatives under the FHP	—		24		—		24
Total	$	1,544	$	708	$	—	$	5,307
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	91	$	—	$	91
Interest rate swaps	—		673		—		673
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		25		—		25
Total	$	—	$	794	$	—	$	794

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $408 million of U.S. Treasury securities in Level 1 Government debt securities and $48 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $456 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $98 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $204 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

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Fair Value Measurements At September 30, 2024 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	770	$	—	$	—	$	770
Government debt securities(1)(2)	400		57		—		457
Corporate debt securities(3)	—		378		—		378
Mortgage and asset-backed securities	—		43		—		43
Institutional mutual funds	342		—		—		342
Forward debt securities contracts	—		11		—		11
Cash equivalents and other short-term investments(2)(4)	95		183		—		278
Private equity funds measured at net asset value(5)	—		—		—		738
Private real asset funds measured at net asset value(5)	—		—		—		432
Private credit funds measured at net asset value(5)	—		—		—		219
Commingled funds measured at net asset value(5)	—		—		—		1,300
Total investments	1,607		672		—		4,968
Commodity contract derivatives	—		7		—		7
Total	$	1,607	$	679	$	—	$	4,975
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	116	$	—	$	116
Interest rate swaps	—		840		—		840
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		161		—		161
Total	$	—	$	1,122	$	—	$	1,122

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $400 million of U.S. Treasury securities in Level 1 Government debt securities and $95 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $495 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $78 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $174 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

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Other Financial Instruments Not Recorded at Fair Value

TVA uses the methods and assumptions described below to estimate the fair value of each significant class of financial instruments. The fair value of the financial instruments held at June 30, 2025, and September 30, 2024, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption. The estimated values of TVA's financial instruments not recorded at fair value at June 30, 2025, and September 30, 2024, were as follows:

Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions)
		At June 30, 2025				At September 30, 2024
	Valuation Classification	Carrying Amount		Fair Value		Carrying Amount		Fair Value
EnergyRight® receivables, net (including current portion)	Level 2	$	56	$	56	$	56	$	56
Loans and other long-term receivables, net (including current portion)	Level 2	114		108		105		99
EnergyRight® financing obligations (including current portion)	Level 2	65		73		66		74
Membership interests of VIEs subject to mandatory redemption (including current portion)	Level 2	16		18		17		19
Long-term outstanding power bonds, net (including current maturities)	Level 2	20,599		20,483		18,889		19,416
Long-term debt of VIEs, net (including current maturities)	Level 2	1,699		1,693		934		966

The carrying values of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values.

The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable. The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.

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16.  Revenue

Revenue from Sales of Electricity

TVA's revenue from contracts with customers is primarily derived from the generation and sale of electricity to its customers and is included in Revenue from sales of electricity on the Consolidated Statements of Operations. Electricity is sold primarily to LPCs for distribution to their end-use customers. In addition, TVA sells electricity to directly served industrial companies, federal agencies, and others.

LPC sales

Approximately 91 percent and 92 percent of TVA's Revenue from sales of electricity for the three and nine months ended June 30, 2025, and the three and nine months ended June 30, 2024, respectively, was from LPCs, which then distribute the power to their customers using their own distribution systems. Power is delivered to each LPC at delivery points within the LPC's service territory. TVA recognizes revenue when the customer takes possession of the power at the delivery point. For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Credits are designed to achieve objectives of the TVA Act and include items such as hydro preference credits for residential customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.

Directly served customers

Directly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.

Other Revenue

Other revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, Renewable Energy Certificate sales, and certain other ancillary goods or services.

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Disaggregated Revenues

During the three and nine months ended June 30, 2025, revenues generated from TVA's electricity sales were $3.3 billion and $9.6 billion, respectively, and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues By State (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Alabama	$	477	$	409	$	1,428	$	1,274
Georgia	74		65		242		214
Kentucky	209		179		605		557
Mississippi	310		277		886		816
North Carolina	18		19		67		70
Tennessee	2,161		1,869		6,345		5,685
Virginia	11		10		39		35
Subtotal	3,260		2,828		9,612		8,651
Off-system sales	2		2		4		6
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

TVA's operating revenues by customer type for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues by Customer Type (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Revenue from sales of electricity
Local power companies	$	2,967	$	2,596	$	8,782	$	7,925
Industries directly served	259		205		734		642
Federal agencies and other	36		29		100		90
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a partnership agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA’s failure to limit rate increases to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the agreements. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. The total wholesale bill credits to LPCs participating in the Partnership Agreement were $53 million and $51 million for the three months ended June 30, 2025 and 2024, respectively. The total wholesale bill credits to LPCs participating in the Partnership Agreement were $164 million and $152 million for the nine months ended June 30, 2025 and 2024, respectively. In 2020, TVA

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provided participating LPCs a flexibility option, named Generation Flexibility, that allows them to locally generate or purchase up to approximately five percent of their average total hourly energy sales over a certain time period in order to meet their individual customers' needs. Revised flexibility agreements were made available to LPCs in 2023 which permit projects to be located anywhere in TVA's service area, either connected to the LPC distribution system or TVA's transmission system, and make it easier for LPCs to partner in projects. As of June 30, 2025, 148 LPCs had signed the Partnership Agreement with TVA, and 107 LPCs had signed a Power Supply Flexibility Agreement.

The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three and nine months ended June 30, 2025, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the tables below:

TVA Local Power Company Contracts At or for the Three Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	2,541	76.9	%
5-year termination notice	5	426		12.9	%
Total	153	$	2,967	89.8	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

TVA Local Power Company Contracts At or for the Nine Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	7,612	78.0	%
5-year termination notice	5	1,170		12.0	%
Total	153	$	8,782	90.0	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively. Sales to MLGW and NES each accounted for eight percent of TVA's total operating revenues for both the nine months ended June 30, 2025 and the nine months ended June 30, 2024.

Contract Balances

Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA did not have any material contract assets at June 30, 2025.

Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers. These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation. See Economic Development Incentives below and Note 11 — Other Long-Term Liabilities — Long-Term Deferred Revenue.

Economic Development Incentives. Under certain economic development programs, TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley. TVA records those incentives as reductions of revenue. Incentives recorded as a reduction to revenue were $80 million for both the three months ended June 30, 2025 and 2024. Incentives recorded as a reduction to revenue were $248 million and $233 million for the nine months ended June 30, 2025 and 2024, respectively. Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At June 30, 2025, and September 30, 2024, the outstanding unpaid incentives were $197 million and $187 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements.

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17.  Other Income, Net

Income and expenses not related to TVA's operating activities are summarized in the following table:

Other Income, Net (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Interest income	$	10	$	10	$	31	$	30
External services	8		4		22		12
Gains on investments	10		2		8		16
Miscellaneous	1		(2)		(3)		(3)
Total other income, net	$	29	$	14	$	58	$	55

18. Supplemental Cash Flow Information

Construction in progress and nuclear fuel expenditures included in Accounts payable and accrued liabilities at June 30, 2025 and 2024, were $961 million and $703 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 as non-cash investing activities. ARO project accruals included in Accounts payable and accrued liabilities at June 30, 2025 and 2024, were $41 million and $46 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024, as non-cash operating activities.

Cash flows from swap contracts that are accounted for as hedges are classified in the same category as the item being

hedged or on a basis consistent with the nature of the instrument.

19.  Benefit Plans

TVA sponsors a pension plan that covers most of its full-time employees hired before July 1, 2014, a qualified defined contribution plan ("401(k) plan") that covers most of its full-time employees, two unfunded post-retirement health care plans that provide for non-vested contributions toward the cost of eligible retirees' medical coverage, other post-employment benefits, such as workers' compensation, the SERP, and the RP. The pension plan and the 401(k) plan are administered by a separate legal entity, the TVA Retirement System ("TVARS"), which is governed by its own board of directors.

The components of net periodic benefit cost for the three and nine months ended June 30, 2025 and 2024, were as follows:

Components of Net Periodic Benefit Cost(1) (in millions)
	For the Three Months Ended June 30								For the Nine Months Ended June 30
	Pension Benefits				Other Post-Retirement Benefits				Pension Benefits				Other Post-Retirement Benefits
	2025		2024		2025		2024		2025		2024		2025		2024
Service cost	$	8	$	7	$	3	$	3	$	24	$	22	$	9	$	8
Interest cost	131		145		3		4		394		434		12		15
Expected return on plan assets	(126)		(123)		—		—		(379)		(370)		—		—
Amortization of prior service credit	(22)		(22)		(4)		(4)		(67)		(67)		(13)		(13)
Recognized net actuarial loss	44		25		—		—		131		75		—		—
Total net periodic benefit cost	35		32		2		3		103		94		8		10
Special/contractual termination benefits(2)	—		—		1		—		—		—		1		—
Total benefit cost	$	35	$	32	$	3	$	3	$	103	$	94	$	9	$	10

Note

(1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations.

(2) Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.

TVA's minimum required pension plan contribution for 2025 is $300 million. TVA contributes $25 million per month to TVARS and as of June 30, 2025, had contributed $225 million. The remaining $75 million will be contributed by September 30, 2025. For the nine months ended June 30, 2025, TVA also contributed $19 million (net of $4 million in rebates) to the other post-retirement plans and $10 million to the SERP. In addition, TVA recognized 401(k) contribution costs of $95 million for the nine months ended June 30, 2025.

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20. Collaborative Arrangement

In 2023, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Hitachi Nuclear Energy ("GEH") entered into a multi-party collaborative arrangement to advance the global deployment of the GEH BWRX-300 small modular reactor. GEH is responsible for standard design development. Under the agreement, TVA will contribute up to $93 million for design costs incurred by GEH through 2026. At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits.

Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred. TVA recorded no expenses related to this agreement for the three months ended June 30, 2025 and $12 million of expenses for the three months ended June 30, 2024. TVA recorded $10 million and $29 million of expenses related to this agreement for the nine months ended June 30, 2025 and 2024, respectively. TVA also had a $6 million letter of credit posted under this arrangement at June 30, 2025.

21.  Contingencies and Legal Proceedings

Contingencies

Nuclear Insurance.  Section 170 of the Atomic Energy Act, commonly known as the Price-Anderson Act, provides a layered framework of financial protection to compensate for liability claims of members of the public for personal injury and property damages arising from a nuclear incident in the U.S. This financial protection consists of two layers of coverage. The primary level is private insurance underwritten by American Nuclear Insurers and provides public liability insurance coverage of $500 million for each nuclear power plant licensed to operate. If this amount is not sufficient to cover claims arising from a nuclear incident, the second level, Secondary Financial Protection, applies. Within the Secondary Financial Protection level, the licensee of each nuclear reactor has a contingent obligation to pay a retrospective premium, equal to its proportionate share of the loss in excess of the primary level, regardless of proximity to the incident of fault, up to a maximum of approximately $166 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $1.2 billion. This retrospective premium is payable at a maximum rate currently set at approximately $25 million per year per nuclear incident per reactor. Currently, 95 reactors are participating in the Secondary Financial Protection program.

In the event that a nuclear incident results in public liability claims, the primary level provided by American Nuclear Insurers combined with the Secondary Financial Protection should provide up to $16.3 billion in coverage.

Federal law requires that each Nuclear Regulatory Commission ("NRC") power reactor licensee obtain property insurance from private sources to cover the cost of stabilizing and decontaminating a reactor and its station site after an accident. TVA carries property, decommissioning liability, and decontamination liability insurance from Nuclear Electric Insurance Limited ("NEIL") and European Mutual Association for Nuclear Insurance. The limits available for a loss are up to $2.1 billion for two of TVA's nuclear sites and up to $2.8 billion for the remaining site. Some of this insurance may require the payment of retrospective premiums up to a maximum of approximately $122 million.

TVA purchases accidental outage (business interruption) insurance for TVA's nuclear sites from NEIL.  In the event that an accident covered by this policy takes a nuclear unit offline or keeps a nuclear unit offline, NEIL will pay TVA, after a waiting period, an indemnity (a set dollar amount per week) with a maximum indemnity of $490 million per unit.  This insurance policy may require the payment of retrospective premiums up to a maximum of approximately $50 million, but only to the extent the retrospective premium is deemed necessary by the NEIL Board of Directors to pay losses unable to be covered by NEIL's surplus.

Decommissioning Costs.  TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets related primarily to nuclear generating plants, coal-fired generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. See Note 12 — Asset Retirement Obligations.

Nuclear Decommissioning.  Provision for decommissioning costs of nuclear generating units is based on options authorized by the NRC procedures to dismantle and decontaminate the facilities to meet the NRC criteria for license termination. At June 30, 2025, $3.9 billion, representing the discounted value of future estimated nuclear decommissioning costs, was included in nuclear AROs.  The actual decommissioning costs may vary from the derived estimates because of, among other things, changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment.  Utilities that own and operate nuclear plants are required to use different procedures in calculating nuclear decommissioning costs under GAAP than those that are used in calculating nuclear decommissioning costs when reporting to the NRC.  The two sets of procedures produce different estimates for the costs of decommissioning primarily because of differences in the underlying assumptions. TVA bases its nuclear decommissioning estimates on site-specific cost studies. The most recent study was approved and implemented in September 2022. Site-specific cost studies are updated for each of TVA's nuclear units at least every five years.

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TVA maintains an NDT to provide funding for the ultimate decommissioning of its nuclear power plants.  See Note 15 — Fair Value Measurements — Investment Funds. TVA monitors the value of its NDT and believes that, over the long term and before cessation of nuclear plant operations and commencement of decommissioning activities, adequate funds from investments and additional contributions, if necessary, will be available to support decommissioning.  TVA's operating nuclear power units are licensed through various dates between 2033 - 2055, depending on the unit.  It may be possible to extend the operating life of some of the units with approval from the NRC. See Note 9 — Regulatory Assets and Liabilities and Note 12 — Asset Retirement Obligations.

Non-nuclear Decommissioning.  At June 30, 2025, $7.0 billion, representing the discounted value of future estimated non-nuclear decommissioning costs, was included in non-nuclear AROs.  This decommissioning cost estimate involves estimating the amount and timing of future expenditures and making judgments concerning whether or not such costs are considered a legal obligation.  Estimating the amount and timing of future expenditures includes, among other things, making projections of the timing and duration of the asset retirement process and how costs will escalate with inflation.  The actual decommissioning costs may vary from the derived estimates because of changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment. TVA updates its underlying assumptions for non-nuclear decommissioning AROs at least every five years. However, material changes in underlying assumptions that impact the amount and timing of undiscounted cash flows are continuously monitored and incorporated into ARO balances in the period identified.

TVA maintains an ART to help fund the ultimate decommissioning of its non-nuclear power assets.  See Note 15 — Fair Value Measurements — Investment Funds. Estimates involved in determining if additional funding will be made to the ART include inflation rate, rate of return projections on the fund investments, and the planned use of other sources to fund decommissioning costs. See Note 9 — Regulatory Assets and Liabilities and Note 12 — Asset Retirement Obligations.

Environmental Matters. TVA's generation activities, like those across the utility industry and in other industrial sectors, are subject to federal, state, and local environmental laws and regulations.  Major areas of regulation affecting TVA's activities include air quality control, greenhouse gas ("GHG") emissions, water quality control, and management and disposal of solid and hazardous wastes.  Regulations in these major areas have become more stringent in recent years and have had a particular emphasis on climate change, renewable generation, and energy efficiency.

TVA has incurred, and expects to continue to incur, substantial capital and operating and maintenance costs to comply with evolving environmental requirements primarily associated with, but not limited to, the operation of TVA's coal-fired and natural gas-fired generating units in general and emissions of pollutants from those units.  Failure to comply with environmental and safety requirements can result in enforcement actions and litigation, which can lead to the imposition of significant civil liability, including fines and penalties, criminal sanctions, and/or temporary or permanent closure of non-compliant facilities. Historical non-compliance can also lead to difficulty in renewing existing permits, as well as difficulty in obtaining permits to bring new generation facilities online. Other obstacles to renewal or permitting of new facilities include a proliferation of non-government organizations seeking to use litigation tools to drive up costs associated with, and delay or prevent permitting of, new fossil fuel facilities and related infrastructure in favor of renewable energy projects.

Compliance with the Environmental Protection Agency's ("EPA") 2015 CCR Rule, as revised ("2015 CCR Rule") required implementation of a groundwater monitoring program, additional engineering, evaluation of authorized closure methods, coordination with certain state authorities, and ongoing analysis at each TVA CCR unit. As further analyses are performed, including evaluation of monitoring results, there is the potential for additional costs for investigation and/or remediation. In addition, on May 8, 2024, EPA published its Legacy CCR Rule, which expands the scope of the existing regulatory requirements of the 2015 CCR Rule to include two additional classes of CCR units: Legacy Surface Impoundments and Coal Combustion Residual Management Units. As a result of the enactment of the final rule, during 2024, TVA recorded additional estimated AROs and recorded a corresponding regulatory asset due to AROs being associated with closed sites and asset retirement costs having been fully depreciated. However, the amounts recorded are subject to various uncertainties, and actual amounts may differ materially based upon a number of factors, including, but not limited to, the outcome of legal challenges to the Legacy CCR Rule, ongoing evaluations of the number and scope of newly regulated units, determinations on final closure requirements and performance standards, and possible changes to the Legacy CCR Rule by EPA.

In May 2024, EPA also published (1) a final rule that establishes more stringent technology-based effluent limitations for four wastewater streams from coal-fired plants, (2) a rule that strengthens and updates the Mercury and Air Toxics Standards for electric generating units to reflect recent developments in control technologies, and (3) a rule that establishes GHG emission guidelines for existing coal-fired plants and GHG performance standards for new natural gas-fired power plants. These rules are all currently being reconsidered by EPA and are also all subject to legal challenges. If these rules move forward as written and the challenges are not successful, TVA would incur substantial costs to comply with the rules.

On March 12, 2025, the EPA Administrator announced that EPA will reconsider 31 rules, including (1) regulations on power plants, (2) Mercury and Air Toxics Standards, (3) steam electric effluent limitation guidelines, (4) National Ambient Air Quality Standards for particulate matter, (5) regulations regarding regional haze, (6) the Good Neighbor Plan, and (7) CCR regulations. TVA cannot predict the outcome of such reevaluations or their impact on TVA's financial results or operations. See Part I, Item 1, Business — Environmental Matters in the Annual Report.

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Liability for releases, natural resource damages, and required cleanup of hazardous substances is primarily regulated by the federal Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Resource Conservation and Recovery Act ("RCRA"), and other federal and parallel state statutes.  In a manner similar to many other governmental entities, industries, and power systems, TVA has generated or used hazardous substances over the years. TVA operations at some facilities have resulted in releases of contaminants that TVA has addressed or is addressing consistent with state and federal requirements.  At June 30, 2025, and September 30, 2024, TVA's estimated liability for required cleanup and similar environmental work for those sites for which sufficient information is available to develop a cost estimate was $10 million and $15 million, respectively, on a non-discounted basis, and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Additionally, the potential inclusion of new hazardous substances under CERCLA and RCRA jurisdiction could significantly affect TVA's future liability for remediating historical releases.

In August 2015, the Tennessee Department of Environment and Conservation ("TDEC") issued an order that includes an iterative process through which TVA and TDEC will identify and evaluate any CCR contamination risks and, if necessary, respond to such risks. TVA is also following a similar process pursuant to a consent order. At June 30, 2025, and September 30, 2024, TVA's estimated liability for costs associated with environmental remediation activities for the sites covered by these orders for which sufficient information is available to develop a cost estimate was approximately $313 million and $215 million, respectively, on a non-discounted basis and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. The current estimated time frame for work related to these remediation activities for which TVA has a cost estimate is through 2044.

Legal Proceedings

From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting TVA's activities. There have been no material changes to the Legal Proceedings described in Note 22 — Commitments and Contingencies — Legal Proceedings of the Annual Report, except as described below.

Case Involving Johnsonville Aeroderivative Combustion Turbine Project. On December 22, 2022, the Southern Environmental Law Center filed a lawsuit in the U.S. District Court for the Middle District of Tennessee on behalf of the Sierra Club, alleging that TVA violated the National Environmental Policy Act ("NEPA") in deciding to build a new aeroderivative combustion turbine project at its Johnsonville facility. Both parties moved for summary judgment, and on September 30, 2024, the court granted TVA's motion for summary judgment and dismissed the lawsuit. The Sierra Club did not file an appeal within 60 days from the date of the decision, so this litigation has now ended. See Note 22 — Commitments and Contingencies — Legal Proceedings — Case Involving Johnsonville Aeroderivative Combustion Turbine Project in the Annual Report.

Case Involving Kingston Gas-Fired Plant. On October 10, 2024, Appalachian Voices, the Center for Biological Diversity, and the Sierra Club filed a lawsuit in the U.S. District Court for the Eastern District of Tennessee alleging that TVA violated NEPA and TVA's least-cost planning obligations in deciding to build a gas plant at its Kingston Facility. TVA filed its answer on December 16, 2024. The plaintiffs filed a motion to compete the administrative record on June 30, 2025. TVA cannot predict the outcome of this litigation. See Note 22 — Commitments and Contingencies — Legal Proceedings — Case Involving Kingston Gas-Fired Plant in the Annual Report.

Challenge to Kingston Construction Permit. On December 16, 2024, the Southern Environmental Law Center filed an appeal on behalf of Appalachian Voices challenging the construction permit that the Technical Secretary acting on behalf of the Tennessee Air Pollution Control Board issued to TVA on November 15, 2024, for the construction of natural gas generation at Kingston. Appalachian Voices alleges that TDEC unlawfully issued a construction permit that would allow TVA to construct the plant without meeting the requirements set forth in the Tennessee Air Quality Act's and Federal Clean Air Act’s Prevention of Significant Deterioration program. Among other things, Appalachian Voices is requesting that the Tennessee Air Pollution Control Board stay the effectiveness of the permit and order TDEC to revoke the permit. On January 7, 2025, TVA filed a petition to intervene in the administrative proceeding, which was granted on January 15, 2025. The parties filed competing motions for summary judgement on March 14, 2025, and oral argument on these motions was held on June 24, 2025. TVA cannot predict the outcome of this litigation.

Challenge to Certificate for Cumberland Pipeline. On April 29, 2024, the Southern Environmental Law Center, on behalf of the Sierra Club and Appalachian Voices, filed a petition with the United States Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") challenging the Federal Energy Regulatory Commission's ("FERC’s") issuance of a certificate of public convenience for the pipeline that will need to be constructed in order for TVA to operate the Cumberland Combined Cycle Plant (the “Cumberland Pipeline”). The petitioners allege that they and their members have been and will be aggrieved by the approval, construction, and operation of the Cumberland Pipeline and are asking the D.C. Circuit to review and set aside FERC’s order approving the pipeline. The D.C. Circuit heard oral arguments on the merits on March 4, 2025, but has not yet issued a ruling. TVA, the Tennessee Valley Public Power Association, and Tennessee Gas Pipeline Company, L.L.C., which has contracted with TVA to build and operate the pipeline, have intervened in the proceeding. TVA cannot predict the outcome of this litigation.

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ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") explains the results of operations and general financial condition of the Tennessee Valley Authority ("TVA"). The MD&A should be read in conjunction with the accompanying unaudited consolidated financial statements and TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report").

Executive Overview

TVA's operating revenues were $9.8 billion and $8.8 billion for the nine months ended June 30, 2025 and 2024, respectively. Operating revenues increased for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily as a result of higher effective fuel rates, higher effective base rates, and increased sales volume. Higher effective fuel rates were due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year. Effective base rates were higher primarily due to the TVA Board of Directors ("TVA Board") action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024. The increased sales volume was primarily driven by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector, partially offset by a decrease in cooling degree days.

Total operating expenses increased $743 million for the nine months ended June 30, 2025, as compared to the nine months ended June 30, 2024. Fuel and purchased power expense increased $490 million for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily due to higher demand for purchased power as a result of less availability of nuclear generation and higher effective fuel rates. There was a $100 million increase in Operating and maintenance expense primarily due to increases in payroll and benefit costs related to severance costs associated with Enterprise Transformation Program ("ETP") efforts and labor escalation for cost of living increases and an increase in nuclear outage days. In addition, Depreciation and amortization expense increased $98 million primarily as a result of increases in the amortization expense of finance leases and amortization expense of decommissioning costs recovered in rates, the decision to retire Kingston Fossil Plant ("Kingston"), and additions to net completed plant.

Pre-commercial plant operations began on Johnsonville Aeroderivative combustion turbine ("CT") Units 25-28 in the first quarter of 2025 and began on Units 21-24 and 29-30 in the second quarter of 2025. Units 21-25 and 27-30 became operational on May 6, 2025.

On January 22, 2025, TVA reached an all-time record high peak power demand of approximately 35,430 megawatts ("MW"). This peak was over 800 MW greater than TVA's previous all-time peak set in January 2024.

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Results of Operations

Sales of Electricity

Sales of electricity were 39,751 million and 39,342 million kilowatt hours ("kWh") for the three months ended June 30, 2025 and 2024, respectively. Sales of electricity were 120,527 million and 117,313 million kWh for the nine months ended June 30, 2025 and 2024, respectively. The total sales of electricity during the nine months ended June 30, 2025 included 94 thousand kWh of pre-commercial generation at Johnsonville Aeroderivative CT Units 21-30, of which 35 thousand kWh was recognized in the three months ended June 30, 2025. The total sales of electricity during the nine months ended June 30, 2024 included 137 thousand kWh of pre-commercial generation at Paradise CT Units 5-7, all of which was recognized in the three months ended December 31, 2023. TVA sells power at wholesale rates to local power company customers ("LPCs") that then resell the power to their customers at retail rates. TVA also sells power to directly served customers, consisting primarily of federal agencies and customers with large or nonstandard loads. In addition, power exceeding TVA's system needs is sold under exchange power arrangements with certain other power systems.

The following charts compare TVA's sales of electricity by customer type for the periods indicated:

The following charts show a breakdown of TVA's energy load:

Note

Information included in the charts above was derived from energy usage of directly served customers and customers served by LPCs during calendar year ("CY") 2024, and these graphs will continue to be updated on a CY basis.

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Weather affects both the demand for TVA power and the price for that power. TVA uses degree days to measure the impact of weather on its power operations. Degree days measure the extent to which the TVA system 23-station average temperatures vary from 65 degrees Fahrenheit.

	Degree Days
	Variation from Normal								Change from Prior Period
	2025	Normal	Percent Variation		2024	Normal	Percent Variation		Change	Percent Change
Heating Degree Days
Three Months Ended June 30	144	191	(24.6)	%	124	191	(35.1)	%	20	16.1	%
Nine Months Ended June 30	2,888	3,123	(7.5)	%	2,801	3,143	(10.9)	%	87	3.1	%
Cooling Degree Days
Three Months Ended June 30	611	595	2.7	%	698	595	17.3	%	(87)	(12.5)	%
Nine Months Ended June 30	712	666	6.9	%	776	666	16.5	%	(64)	(8.2)	%

Sales of electricity increased one percent for the three months ended June 30, 2025, as compared to the same period of the prior year. The increased sales volume was primarily driven by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector. Partially offsetting the increased sales volume was a 12.5 percent decrease in cooling degree days compared to the same period of the prior year.

Sales of electricity increased three percent for the nine months ended June 30, 2025, as compared to the same period of the prior year. The increased sales volume was primarily driven by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector. Partially offsetting the increased sales volume was an 8.2 percent decrease in cooling degree days compared to the same period of the prior year.

Financial Results

The following table compares operating results for the three and nine months ended June 30, 2025 and 2024:

Summary Consolidated Statements of Operations (in millions)
	Three Months Ended June 30								Nine Months Ended June 30
	2025		2024		Change		Percent Change		2025		2024		Change		Percent Change
Operating revenues	$	3,306	$	2,879	$	427	14.8	%	$	9,758	$	8,798	$	960	10.9	%
Operating expenses	2,789		2,420		369		15.2	%	8,112		7,369		743		10.1	%
Operating income	517		459		58		12.6	%	1,646		1,429		217		15.2	%
Other income, net	29		14		15		107.1	%	58		55		3		5.5	%
Other net periodic benefit cost	27		25		2		8.0	%	79		74		5		6.8	%
Interest expense	307		267		40		15.0	%	880		795		85		10.7	%
Net income	$	212	$	181	$	31	17.1	%	$	745	$	615	$	130	21.1	%

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Operating Revenues.  Operating revenues for the three months ended June 30, 2025 and 2024, were $3.3 billion and $2.9 billion, respectively. Operating revenues for the nine months ended June 30, 2025 and 2024, were $9.8 billion and $8.8 billion, respectively. The following table compares TVA's operating revenues for the periods indicated:

Operating Revenues by Customer Type (in millions)
	Three Months Ended June 30								Nine Months Ended June 30
	2025		2024		Change		Percent Change		2025		2024		Change		Percent Change
Operating revenues
Local power company customers	$	2,967	$	2,596	$	371	14.3	%	$	8,782	$	7,925	$	857	10.8	%
Industries directly served	259		205		54		26.3	%	734		642		92		14.3	%
Federal agencies and other	36		29		7		24.1	%	100		90		10		11.1	%
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(1)		—	%	(3)		(3)		—		—	%
Other revenue	45		49		(4)		(8.2)	%	145		144		1		0.7	%
Total operating revenues	$	3,306	$	2,879	$	427	14.8	%	$	9,758	$	8,798	$	960	10.9	%

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively. Sales to both MLGW and NES accounted for eight percent of TVA's total operating revenues for both the nine months ended June 30, 2025 and the nine months ended June 30, 2024.

TVA's rate structure uses pricing signals to indicate seasons and hours of higher cost to serve its customers and to capture a portion of TVA's fixed costs in fixed charges.  The structure includes three base revenue components: time of use demand charges, time of use energy charges, and a grid access charge ("GAC").  The demand charges are based upon the customer's peak monthly usage. The energy charges are based on time differentiated kWh used by the customer.  Both of these components can be significantly impacted by weather. The GAC captures a portion of fixed costs and is offset by a corresponding reduction to the energy rates. The GAC also reduces the impact of weather variability to the overall rate structure.

TVA has a Partnership Agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA's failure to limit rate increases to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the

agreements. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. As of June 30, 2025, 148 LPCs had signed the 20-year Partnership Agreement with TVA.

In addition to base revenues, the rate structure includes a separate fuel rate that includes the costs of natural gas, fuel oil, purchased power, coal, emission allowances, nuclear fuel, and other fuel-related commodities; realized gains and losses on derivatives purchased to hedge the costs of such commodities; and payments to states and counties in lieu of taxes ("tax equivalents") associated with the fuel cost adjustments.

TVA is required to charge rates for power that will produce gross revenues sufficient to cover various costs as discussed in Part I, Item I, Business — Rates of the Annual Report. In August 2024, the TVA Board approved a 5.25 percent wholesale base rate increase (excluding fuel) effective October 1, 2024, primarily due to additional capacity needs and rising costs. This rate adjustment is estimated to produce an additional $495 million of revenue during 2025.

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The changes in revenue components are summarized below:

Changes in Revenue Components (in millions)
	Three Months Ended June 30						Nine Months Ended June 30
	2025		2024		Change		2025		2024		Change
Base revenue
Energy revenue	$	1,264	$	1,195	$	69	$	3,855	$	3,570	$	285
Demand revenue	1,009		930		79		3,034		2,765		269
Grid access charge	161		155		6		485		466		19
Long-term partnership credits for LPCs	(53)		(51)		(2)		(164)		(152)		(12)
Other charges and credits(1)	(166)		(144)		(22)		(522)		(453)		(69)
Total base revenue	2,215		2,085		130		6,688		6,196		492
Fuel cost recovery	1,045		743		302		2,924		2,455		469
Off-system sales	2		2		—		4		6		(2)
Pre-commercial operations(2)	(1)		—		(1)		(3)		(3)		—
Revenue from sales of electricity	3,261		2,830		431		9,613		8,654		959
Other revenue	45		49		(4)		145		144		1
Total operating revenues	$	3,306	$	2,879	$	427	$	9,758	$	8,798	$	960

Notes

(1) Includes economic development credits to promote growth in the Tennessee Valley, hydro preference credits for residential customers of LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. See Note 16 — Revenue.

(2) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

Operating revenues increased $427 million for the three months ended June 30, 2025, as compared to the same period of the prior year, primarily due to a $302 million increase in fuel cost recovery revenue. The $302 million increase in fuel cost recovery revenue was driven by a $296 million increase attributable to higher effective fuel rates and a $6 million increase attributable to higher sales volume. The higher effective fuel rates were due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year. In addition, there was a $130 million increase in base revenue driven by a $104 million increase attributable to higher effective base rates and a $26 million increase attributable to higher sales volume. The increase in effective base rates was primarily due to the TVA Board action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024. The higher sales volume was driven primarily by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector, partially offset by a decrease in cooling degree days.

Operating revenues increased $960 million for the nine months ended June 30, 2025, as compared to the same

period of the prior year, primarily due to a $492 million increase in base revenue. The $492 million increase in base revenue was driven by a $262 million increase attributable to higher effective base rates and a $230 million increase attributable to higher sales volume. The increase in effective base rates was primarily due to the TVA Board action to approve a 5.25 percent wholesale base rate increase effective October 1, 2024. The higher sales volume was driven primarily by higher sales to residential and small commercial and industrial customers as well as increases within the data processing, hosting, and related services sector, partially offset by a decrease in cooling degree days. In addition, there was a $469 million increase in fuel cost recovery revenue driven by a $401 million increase attributable to higher effective fuel rates and a $68 million increase attributable to higher sales volume. The higher effective fuel rates were due primarily to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year.

See Sales of Electricity above for further discussion of the change in the volume of sales of electricity and Operating Expenses below for further discussion of the change in fuel expense.

Operating Expenses. Operating expense components as a percentage of total operating expenses for the three and nine months ended June 30, 2025 and 2024, consisted of the following:

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Operating Expenses (in millions)
	Three Months Ended June 30								Nine Months Ended June 30
	2025		2024		Change		Percent Change		2025		2024		Change		Percent Change
Operating expenses
Fuel	$	589	$	424	$	165	38.9	%	$	1,674	$	1,561	$	113	7.2	%
Purchased power	550		408		142		34.8	%	1,516		1,139		377		33.1	%
Operating and maintenance	922		915		7		0.8	%	2,771		2,671		100		3.7	%
Depreciation and amortization	572		542		30		5.5	%	1,691		1,593		98		6.2	%
Tax equivalents	156		131		25		19.1	%	460		405		55		13.6	%
Total operating expenses	$	2,789	$	2,420	$	369	15.2	%	$	8,112	$	7,369	$	743	10.1	%

Three Months Ended June 30, 2025, Compared to Three Months Ended June 30, 2024

Fuel expense increased $165 million for the three months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily driven by an increase in fuel cost recovery of $127 million due to the collection of significant fuel costs from the previous quarter that were the result of higher than expected coal and natural gas prices due to colder than average temperatures. Additionally, fuel expense increased $53 million primarily due to higher effective fuel rates related to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year. Partially offsetting this increase was a decrease of $15 million due to less availability of nuclear generation and more availability of hydro generation as compared to the same period of the prior year.

Purchased power expense increased $142 million for the three months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily due to an increase of $82 million from higher purchased power market prices compared to the same period of the prior year. Additionally, purchased power expense increased $52 million due to higher demand for energy with less availability of TVA nuclear generation. Purchased power expense also increased $8 million

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due to the recovery of purchased power costs from the previous quarter that were the result of higher than expected purchased power prices due to colder than average temperatures.

Operating and maintenance expense increased $7 million for the three months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily due to a $19 million increase in outage expense primarily due to an increase in nuclear outage days.

Depreciation and amortization expense increased $30 million for the three months ended June 30, 2025, as compared to the same period of the prior year.  The increase was primarily driven by a $9 million increase in amortization expense of finance leases and amortization expense of decommissioning costs recovered in rates, as well as an increase due to depreciation of additions to net completed plant.

Tax equivalents expense increased $25 million for the three months ended June 30, 2025, as compared to the same period of the prior year. This change is primarily driven by an increase in TVA's revenue from sales of electricity in 2024, which is used as the basis for calculating tax equivalent expense.

Nine Months Ended June 30, 2025, Compared to Nine Months Ended June 30, 2024

Fuel expense increased $113 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. An increase of $192 million was due primarily to higher effective fuel rates related to using higher cost coal and natural gas generation due to less availability of nuclear generation as compared to the same period of the prior year. Partially offsetting this increase was a decrease of $42 million due to less availability of nuclear generation and more availability of hydro generation as compared to the same period of the prior year. Additionally, fuel expense decreased $37 million related to the deferral of unplanned coal and gas costs due to less availability of nuclear generation.

Purchased power expense increased $377 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily due to higher demand for energy and less availability of TVA nuclear generation, resulting in an increase of $358 million.

Operating and maintenance expense increased $100 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily due to $113 million of increased payroll and benefit costs primarily due to severance costs associated with ETP efforts and labor escalation for cost of living increases. In addition, there was a $36 million increase in outage expense primarily due to an increase in nuclear outage days. Partially offsetting these increases was a $27 million decrease in expenditures related to project contract labor primarily due to higher power operations performance activities and other natural gas project work in the prior year.

Depreciation and amortization expense increased $98 million for the nine months ended June 30, 2025, as compared to the same period of the prior year.  The increase was primarily driven by an increase of $33 million related to amortization expense of finance leases and amortization expense of decommissioning costs recovered in rates and an increase in depreciation expense of $18 million related to the decision in April 2024 to retire Kingston. Additionally, there was an increase due to depreciation of additions to net completed plant.

Tax equivalents expense increased $55 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. This change is primarily driven by an increase in TVA's revenue from sales of electricity in 2024, which is used as the basis for calculating tax equivalent expense.

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Generating Sources. The following tables show TVA's generation and purchased power by generating source as a percentage of all electrical power generated and purchased (based on kWh) for the periods indicated.

Total Power Supply by Generating Source For the three months ended June 30 (millions of kWh)
	2025			2024
Nuclear	12,683	31	%	16,627	41	%
Natural gas and/or oil-fired(1)	9,301	23	%	8,876	22	%
Coal-fired	6,196	15	%	4,791	12	%
Hydroelectric	3,537	9	%	2,510	6	%
Total TVA-operated generation facilities(2)(3)	31,717	78	%	32,804	81	%
Purchased power (natural gas and/or oil-fired)(4)	4,067	10	%	4,365	11	%
Purchased power (other renewables)(5)	1,846	5	%	1,720	4	%
Purchased power (coal-fired)	1,617	4	%	530	1	%
Purchased power (hydroelectric)	1,171	3	%	1,014	3	%
Total purchased power(3)	8,701	22	%	7,629	19	%
Total power supply	40,418	100	%	40,433	100	%

Notes

(1) The generation for the three months ended June 30, 2025 includes 35 thousand kWh of pre-commercial generation at Johnsonville Aeroderivative CT Units 21-30. The generation for the three months ended June 30, 2024 includes no kWh of pre-commercial generation at Paradise CT Units 5-7.

(2) Generation from TVA-owned renewable resources (non-hydroelectric) is less than one percent for all periods shown and therefore is not represented in the table above.

(3) Raccoon Mountain Pumped-Storage Plant net generation is allocated against each TVA-operated generation facility and purchased power type for both the three months ended June 30, 2025, and 2024. See Part I, Item 1, Business — Power Supply and Load Management Resources — Hydroelectric Pumped-Storage in the Annual Report for a discussion of Raccoon Mountain Pumped-Storage Plant.

(4) Purchased power (natural gas and/or oil-fired) includes generation from Caledonia Combined Cycle Plant ("Caledonia CC"), which is currently a leased facility operated by TVA. Generation from Caledonia CC was 1,484 million kWh and 1,364 million kWh for the three months ended June 30, 2025, and 2024, respectively.

(5) Purchased power (other renewables) includes purchased power from the following renewable sources: solar, wind, biomass, and renewable cogeneration. TVA acquires Renewable Energy Certificates ("RECs") in connection with certain purchased power transactions and sells some of these RECs to customers.

Total Power Supply by Generating Source For the nine months ended June 30 (millions of kWh)
	2025			2024
Nuclear	38,584	31	%	50,933	43	%
Natural gas and/or oil-fired(1)	30,525	25	%	25,048	21	%
Coal-fired	17,814	15	%	14,734	12	%
Hydroelectric	10,783	9	%	9,741	8	%
Total TVA-operated generation facilities(2)(3)	97,706	80	%	100,456	84	%
Purchased power (natural gas and/or oil-fired)(4)	12,897	11	%	10,647	9	%
Purchased power (other renewables)(5)	5,213	4	%	4,649	4	%
Purchased power (coal-fired)	3,978	3	%	1,544	1	%
Purchased power (hydroelectric)	2,884	2	%	2,224	2	%
Total purchased power(3)	24,972	20	%	19,064	16	%
Total power supply	122,678	100	%	119,520	100	%

Notes

(1) The generation for the nine months ended June 30, 2025 includes 94 thousand kWh of pre-commercial generation at Johnsonville Aeroderivative CT Units 21-30. The generation for the nine months ended June 30, 2024 includes 137 thousand kWh of pre-commercial generation at Paradise CT Units 5-7, all of which was recognized in the three months ended December 31, 2023.

(2) Generation from TVA-owned renewable resources (non-hydroelectric) is less than one percent for all periods shown and therefore is not represented in the table above.

(3) Raccoon Mountain Pumped-Storage Plant net generation is allocated against each TVA-operated generation facility and purchased power type for both the nine months ended June 30, 2025, and 2024. See Part I, Item 1, Business — Power Supply and Load Management Resources — Hydroelectric Pumped-Storage in the Annual Report for a discussion of Raccoon Mountain Pumped-Storage Plant.

(4) Purchased power (natural gas and/or oil-fired) includes generation from Caledonia Combined Cycle Plant ("Caledonia CC"), which is currently a leased facility operated by TVA. Generation from Caledonia CC was 3,958 million kWh and 3,240 million kWh for the nine months ended June 30, 2025, and 2024, respectively.

(5) Purchased power (other renewables) includes purchased power from the following renewable sources: solar, wind, biomass, and renewable cogeneration. TVA acquires RECs in connection with certain purchased power transactions and sells some of these RECs to customers.

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In addition to power supply sources included here, TVA offers energy efficiency programs that effectively reduce energy needs. In 2025, TVA expects to invest $99 million on its energy efficiency programs and anticipates approximately 289 gigawatt hours of net incremental energy efficiency savings.

Interest Expense.  Interest expense and interest rates for the three and nine months ended June 30, 2025, and the three and nine months ended June 30, 2024, were as follows:

Interest Expense and Rates (in millions)
	Three Months Ended June 30								Nine Months Ended June 30
	2025			2024			Percent  Change		2025			2024			Percent  Change
Interest expense(1)	$	307		$	267		15.0	%	$	880		$	795		10.7	%
Average blended debt balance(2)	$	22,775		$	21,020		8.3	%	$	22,270		$	20,862		6.7	%
Average blended interest rate(3)	5.11		%	4.91		%	4.1	%	5.03		%	4.90		%	2.7	%

Notes

(1) Includes amortization of debt discounts, issuance, and reacquisition costs, net.

(2) Includes average balances of long-term power bonds, debt of variable interest entities ("VIEs"), and discount notes.

(3) Includes interest on long-term power bonds, debt of VIE, and discount notes.

Total interest expense increased $40 million for the three months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily driven by a $32 million increase from higher average balances and rates on long-term debt, and a $17 million increase in interest on other financing leases, primarily the new lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG"). This increase was partially offset by a $9 million decrease in interest on short-term debt primarily due to lower average balances and rates.

Total interest expense increased $85 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. This increase was primarily driven by a $54 million increase from higher average balances and rates on long-term debt, and a $41 million increase in interest on other financing leases, primarily the new lease financing arrangement with JACTG. This increase was partially offset by a $10 million decrease in interest on short-term debt primarily due to lower average balances and rates.

Liquidity and Capital Resources

Sources of Liquidity

TVA depends on various sources of liquidity to meet cash needs and contingencies. TVA's primary sources of liquidity are cash from operations and proceeds from the issuance of short-term debt in the form of discount notes, along with periodic issuances of long-term debt. TVA's balance of short-term debt typically changes frequently as TVA issues discount notes to meet short-term cash needs and pay scheduled maturities of discount notes and long-term debt. TVA’s next significant power bond maturity is $1.4 billion in November 2025. The periodic amounts of short-term debt issued are determined by near-term expectations for cash receipts, cash expenditures, and funding needs, while seeking to maintain a target range of cash and cash equivalents on hand. TVA may hold higher cash balances from time to time in response to potential market volatility or other business conditions. In addition, cash balances may include collateral received from counterparties.

In addition to cash from operations and proceeds from the issuance of short-term and long-term debt, TVA's sources of liquidity include four revolving credit facilities totaling $2.7 billion, a $150 million credit facility with the United States Department of the Treasury ("U.S. Treasury"), and proceeds from other financings. See Note 13 — Debt and Other Obligations — Credit Facility Agreements. The TVA Board authorized TVA to issue power bonds and enter into other financing arrangements in an aggregate amount not to exceed $4.0 billion during 2025. In the second quarter of 2025, TVA issued $1.25 billion of power bonds maturing in February 2055. In the third quarter of 2025, TVA issued $1.5 billion of power bonds maturing in May 2035. Other financing arrangements may include, but are not limited to, lease financings, energy prepayments from customers, and other similar agreements. TVA may also engage in other alternative forms of financing such as sales of receivables, or loans, from time to time.

The Tennessee Valley Authority Act of 1933, as amended ("TVA Act"), authorizes TVA to issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in an amount not to exceed $30.0 billion outstanding at any time. Bonds outstanding, excluding unamortized discounts and premiums and net exchange gains from foreign currency transactions, at June 30, 2025, were $21.1 billion (including current maturities). The balance of Bonds outstanding directly affects TVA's capacity to meet operational liquidity needs and to strategically use Bonds to fund certain capital investments as management and the TVA Board may deem desirable.  Other options for financing not subject to the limit on Bonds, including lease financings, could provide supplementary funding if needed. Currently, TVA expects to utilize a combination of Bonds, other financings, and

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potentially additional power revenues through power rate increases to meet its ongoing operational liquidity needs while making planned capital investments through the decade. TVA may also utilize available funding through the Inflation Reduction Act of 2022 ("IRA") and the Bipartisan Infrastructure Law ("BIL"), other federal funding opportunities, or other third-party financing arrangements. See Lease Financings below, Key Initiatives and Challenges — Executive Actions, Note 10 — Variable Interest Entities, and Note 13 — Debt and Other Obligations for additional information.

TVA may from time to time seek to retire or purchase its outstanding debt through cash purchases and/or exchanges for securities, in open market purchases, privately negotiated transactions, or otherwise. Such repurchases or exchanges, if any, will depend on prevailing market conditions, TVA's liquidity requirements, contractual restrictions, and other factors. The amounts involved may be material.

Debt Securities.  TVA's Bonds are not obligations of the U.S., and the U.S. does not guarantee the payments of principal or interest on Bonds. TVA's Bonds consist of power bonds and discount notes. Power bonds have maturities of between one and 50 years. At June 30, 2025, the average maturity of long-term power bonds was 14.62 years, and the weighted average interest rate was 4.92 percent. Discount notes have maturities of less than one year. Power bonds and discount notes have a first priority and equal claim of payment out of net power proceeds. Net power proceeds are defined as the remainder of TVA's gross power revenues after deducting the costs of operating, maintaining, and administering its power properties and tax equivalents, but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds from the sale or other disposition of any power facility or interest therein. In addition to power bonds and discount notes, TVA had long-term debt associated with certain VIEs outstanding at June 30, 2025. See Lease Financings below, Note 10 — Variable Interest Entities, and Note 13 — Debt and Other Obligations for additional information.

The following table provides additional information regarding TVA's short-term borrowings:

Short-Term Borrowings (in millions)
	At June 30, 2025	Three Months Ended June 30, 2025	Nine Months Ended June 30, 2025	At June 30, 2024	Three Months Ended June 30, 2024	Nine Months Ended June 30, 2024
Gross Amount Outstanding (at End of Period) or Average Gross Amount Outstanding (During Period)
Discount notes	$319	$394	$638	$1,114	$965	$786
Maximum Month-End Gross Amount Outstanding (During Period)
Discount notes	N/A	$461	$1,541	N/A	$1,153	$1,153
Weighted Average Interest Rate
Discount notes	4.20%	4.37%	4.38%	5.27%	5.39%	5.37%

TVA's rated senior unsecured Bonds are currently rated Aa1, AA+, and AA+, by Moody's Investors Service, Inc. ("Moody's"), Fitch Ratings, Inc. ("Fitch"), and S&P Global Ratings ("S&P"), respectively. TVA's short-term discount notes are not rated. TVA and the owners of TVA securities could be impacted by any downgrades of TVA's credit ratings. TVA Bonds are not obligations of the U.S.; however, because TVA is a wholly-owned corporate agency and instrumentality of the U.S. government, TVA's ratings may be impacted if the sovereign credit ratings of the U.S. are downgraded. On November 10, 2023, Moody's revised the outlook on the U.S. government's credit ratings from stable to negative, and subsequently determined on November 13, 2023, to revise the outlook on TVA's ratings from stable to negative due to the change in the government rating outlook. On May 16, 2025, Moody's downgraded the U.S. government's credit rating from Aaa to Aa1, and on May 19, 2025, Moody's subsequently downgraded TVA's rating from Aaa to Aa1, and the outlook was revised to stable. TVA was not required to post additional collateral due to the downgrade. The outlook on the ratings of TVA is also currently stable with Fitch and S&P. See Part I, Item 1A, Risk Factors — Financial, Economic, and Market Risks — TVA, together with owners of TVA securities, may be impacted by downgrades of TVA's credit ratings in the Annual Report.

Lease Financings. TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities. These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary. TVA is required to account for these VIEs on a consolidated basis. See Note 10 — Variable Interest Entities.

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Summary Cash Flows

A major source of TVA's liquidity is operating cash flows resulting from the generation and sale of electricity. Cash, cash equivalents, and restricted cash totaled $522 million and $521 million at June 30, 2025 and 2024, respectively. A summary of cash flow components for the nine months ended June 30, 2025 and 2024, follows:

    Cash provided by (used in):

Operating Activities. TVA's cash flows from operations are primarily driven by sales of electricity, fuel expense, and operating and maintenance expense. The timing and level of cash flows from operations can be affected by the weather, changes in working capital, commodity price fluctuations, outages, and other project expenses.

Net cash flows provided by operating activities increased $137 million for the nine months ended June 30, 2025, as compared to the same period of the prior year. The increase was primarily due to higher revenue collections. Revenue collections increased primarily due to the increase in the 2025 wholesale base rate in addition to higher sales volume and higher effective fuel rates. This increase was partially offset by higher payroll and benefit-related payments in addition to higher fuel and purchased power payments as compared to the same period of the prior year.

Investing Activities. The majority of TVA's investing cash flows are due to investments to acquire, upgrade, or maintain generating and transmission assets, including environmental projects and the purchase of nuclear fuel.

Net cash flows used in investing activities increased $1.1 billion for the nine months ended June 30, 2025, as compared to the same period of the prior year, driven by increased expenditures for capacity expansion projects, primarily related to natural gas plant builds and upgrades to the nuclear fleet.

Financing Activities. TVA's cash flows provided by or used in financing activities are primarily driven by the timing and level of cash flows provided by operating activities, cash flows used in investing activities, and net issuance and redemption of debt instruments to maintain a strategic balance of cash on hand.

Net cash provided by financing activities increased $944 million for the nine months ended June 30, 2025, as compared to the same period of the prior year, primarily due to higher debt issuances and proceeds from debt of variable interest entities. Higher net cash flows provided by operating activities were offset by higher net cash used in investing activities which resulted in the need for net debt issuances to maintain targeted cash balance levels during the period. TVA anticipates a need to increase debt in the coming years as it continues to invest in power system assets, which may result in positive net cash flows provided by financing activities in future periods.

    Contractual Obligations

TVA has certain obligations and commitments to make future payments under contracts. TVA's contractual obligations are discussed in the Annual Report in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources, Note 8 — Leases, Note 10 — Variable Interest Entities, Note 14 — Debt and Other Obligations, Note 20 — Benefit Plans, and Note 22 — Commitments and Contingencies.

    During the nine months ended June 30, 2025, TVA’s fuel purchase obligations increased $862 million primarily due to new and/or extended contracts for natural gas, natural gas storage, coal, and nuclear fuel. Natural gas commitments increased $145 million as a result of entering into multiple natural gas contracts with new commitments from 2025 to 2035, of which $120 million is estimated to be paid during the remainder of 2025. Natural gas storage commitments increased $285 million as a result of entering into three new contracts and extending three contracts, which increased commitments from 2025 through 2034, of which $7 million is estimated to be paid during the remainder of 2025. Coal commitments increased by $369 million due primarily to entering into three new coal contracts with new commitments from 2025 through 2029, of which $64 million is estimated to be paid during the remainder of 2025. Nuclear fuel commitments increased $118 million due primarily to three new

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nuclear fuel contracts with new commitments from 2028 through 2035. In addition, TVA entered into a new power purchase agreement ("PPA") totaling $293 million with commitments from 2025 to 2028, of which $23 million is estimated to be paid during the remainder of 2025, and three new long-term service agreements totaling $200 million with commitments from 2025 to 2045, of which less than $1 million is estimated to be paid during the remainder of 2025.

Key Initiatives and Challenges

There have been no material changes to the key initiatives and challenges described in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges of the Annual Report, except as described below.

Cost Reduction Initiatives

TVA’s demand continues to grow, driving the need for significant capital investments in its power system. TVA must continue to drive efficiencies and cost savings across the enterprise to provide low-cost, reliable power, while funding the capital investment needed to meet growing demand. TVA has undertaken a cost optimization initiative designed to reduce planned cost increases by approximately $950 million during the three-year period from 2024 to 2026. TVA met its reduction target for 2024 and has plans to meet the targets set for 2025 and 2026. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio in the Annual Report.

This effort has evolved into an Enterprise Transformation Program ("ETP") designed to enable TVA to deliver at least $500 million of sustainable reductions to planned cost increases in 2026 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 supply chain, and making the workforce more efficient. As part of these efforts, certain employees will be eligible for severance payments. As of June 30, 2025, TVA had accrued $14 million related to estimated future severance payments. The ETP is ongoing, and any potential future severances costs are uncertain at this time.

Optimum Energy Portfolio

Additional load growth for the foreseeable future is expected, and new capacity will be needed to support this load growth and replace retiring and expiring capacity. In April of 2025, TVA released a request for proposals for up to 2,250 MW of new build energy resources for potential PPAs. Energy resources that may participate in this RFP are utility-scale natural gas, battery energy storage systems ("BESS"), solar plus BESS, and solar generation that demonstrate the ability to be commercially operable by CY 2031. TVA is currently evaluating these proposals.

TVA worked with stakeholders and the public on the 2025 Integrated Resource Plan ("IRP"), a comprehensive plan that will help shape TVA's energy system through 2050. The final IRP was expected to be published in 2025; however, publication of the final IRP has been delayed.

Natural Gas-Fired Units. TVA continues to evaluate adding flexible lower carbon-emitting gas plants as a strategy

to maintain reliability. Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 25-28 in the first quarter of 2025 and began on Units 21-24 and 29-30 in the second quarter of 2025. Units 21-25 and 27-30 became operational on May 6, 2025.

TVA is replacing generation for one unit at Cumberland Fossil Plant with a 1,450 MW combined cycle plant that is expected to be operational by the end of CY 2026. As of June 30, 2025, TVA had spent $1.7 billion on this project. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Natural Gas-Fired Units in the Annual Report.

To operate the Cumberland Combined Cycle Plant, TVA has contracted for the transportation of gas from a gas pipeline that will need to be constructed. To construct the pipeline, the pipeline company, Tennessee Gas Pipeline Company, L.L.C. (“Tennessee Gas”), obtained permits from various state and federal agencies and a certificate of public convenience and necessity from the Federal Energy Regulatory Commission (“FERC”). Challenges to two permits were brought in the United States Court of Appeals for the Sixth Circuit ("Sixth Circuit"), and on October 11, 2024, the Sixth Circuit issued orders staying the permits until the court could review the merits of these cases. On April 4, 2025, the Sixth Circuit denied the petitions for review in both cases, and on April 15, 2025, the Sixth Circuit lifted the temporary stay. A challenge to the FERC certificate is pending before the United States Court of Appeals for the District of Columbia Circuit (“D.C. Circuit”). The D.C. Circuit heard oral arguments on the merits on March 4, 2025, but has not yet issued a ruling. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Natural Gas-Fired Units in the Annual Report and Note 21 — Contingencies and Legal Proceedings — Legal Proceedings — Challenge to Certificate for Cumberland Pipeline in this Quarterly Report.

TVA is constructing 1,500 MW of natural gas generation at TVA's Kingston site that is expected to be operational by the end of CY 2027. As of June 30, 2025, TVA had spent $1.5 billion on this project. In addition, in March 2025, TVA issued a

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request for proposal for battery storage related to the Kingston energy complex. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Natural Gas-Fired Units in the Annual Report for additional information regarding this project and Note 21 — Contingencies and Legal Proceedings — Legal Proceedings — Challenge to Kingston Construction Permit in this Quarterly Report for information about a challenge to the Kingston construction permit.

In 2024, TVA made available to the public a draft environmental impact statement ("EIS") to assess the impacts associated with the construction and operation of a 500 MW simple cycle CT at New Caledonia on TVA land. The final EIS was published in January 2025, and TVA documented its final decision with the Record of Decision on February 13, 2025. As of June 30, 2025, TVA had spent $214 million on the New Caledonia project and could spend up to an additional $648 million.

TVA is also exploring a 200 MW aeroderivative CT project at TVA's Allen site, and the draft EIS was made available for public comment in March 2025. In addition, TVA is exploring a 350 MW CT project at TVA's Lagoon Creek site. As of June 30, 2025, TVA had spent less than $1 million on the project at Lagoon Creek and could spend up to an additional $670 million. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Natural Gas-Fired Units in the Annual Report.

Hydroelectric Pumped-Storage. TVA is exploring alternatives for a potential future pumped-storage facility, and the draft EIS was made available for public comment in May 2025.

Renewable Power Purchase Agreements. TVA issued a carbon-free RFP in 2022, and in the second quarter of 2025, TVA signed one power purchase agreement for 150 MW of solar generation. In total, TVA signed seven power purchase agreements totaling 1,141 MW of solar generation and 220 MW of battery storage capacity from the carbon-free RFP which are expected to come online by the end of CY 2028. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Renewable Power Purchase Agreements in the Annual Report.

Self-Directed Solar. TVA has elected to pursue a competitive selection process with third parties for the development of a photovoltaic solar facility and plans to enter into a long-term PPA to purchase the energy generated by the facility. An RFP was issued to this effect in 2024, and selection of the awardee is anticipated by the end of CY 2025. In addition, a draft EIS was made available for public comment in January 2025. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Self-Directed Solar in the Annual Report.

Small Modular Reactors. In January 2025, TVA and a consortium of co-applicants applied for a U.S. Department of Energy ("DOE") grant to support the potential development and future deployment of a small modular reactor (“SMR”) at TVA’s Clinch River site. The potential development and any future deployment of an SMR at the Clinch River site are subject to TVA Board approval. TVA is following a structured planning process that advances the Clinch River project in phases at which the TVA Board will evaluate and consider approving any next steps. This funding could support not only the deployment of this first-of-a-kind technology, but also help establish the supply chain for advanced nuclear and support future deployment of the reactor across the United States. In April 2025, TVA and the consortium of co-applicants submitted a revised application to address new DOE guidance regarding the grant.

In the second quarter of 2025, TVA requested public comment on a draft Supplemental Environmental Impact Statement that addresses the potential environmental effects associated with site preparation, construction, operation, and decommissioning of one SMR, the GE Hitachi Nuclear Energy BWRX-300, at the Clinch River site. In the third quarter of 2025, TVA submitted a construction permit application to the Nuclear Regulatory Commission ("NRC") for a BWRX-300 reactor at the Clinch River Nuclear Site. In July 2025, the NRC completed the acceptance review of the application and accepted the application. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Small Modular Reactors in the Annual Report.

Automated Energy Exchange Platform. In July 2023, the D.C. Circuit remanded FERC’s approval of the Southeast Energy Exchange Market (“SEEM”), sending the matter back to FERC for additional proceedings. On March 14, 2025, after further review of the record, FERC affirmed its approval of SEEM. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Optimum Energy Portfolio — Automated Energy Exchange Platform in the Annual Report.

Extreme Flooding Preparedness

Since 2009, TVA has performed further hydrology modeling of portions of the TVA watershed using updated modeling tools. TVA submitted updated hydrology models to the NRC incorporating an approved methodology for Watts Bar Nuclear Plant Units 1 and 2 in December 2023. The new hydrologic analysis was approved by the NRC in May 2025.

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Sequoyah Nuclear Plant Unit 2

Sequoyah Unit 2 tripped on July 30, 2024, due to failure of the main generator. As a result, the project to restack and rewind the main generator was pulled forward in the Nuclear Life Extension plan. In June 2025, the unit returned to service and, as of June 30, 2025, TVA had spent $133 million related to this project and expects to spend an additional $8 million. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Sequoyah Nuclear Plant Unit 2 in the Annual Report.

Hurricane Helene

In late September 2024, Hurricane Helene caused significant damage in communities in East Tennessee and Western

North Carolina. TVA completed inspections at numerous dams, finding no substantial impacts. In July 2025, TVA completed debris cleanup at Douglas Reservoir to aid major disaster declarations with the Federal Emergency Management Agency ("FEMA"). TVA is receiving reimbursement from FEMA for this work. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Hurricane Helene in the Annual Report.

Coal Combustion Residuals

TVA is pursuing a programmatic approach to address environmental impacts related to the previous storage and disposal of its CCR in accordance with applicable law (“CCR Program”). Under the CCR Program, TVA performed stability remediation of all at-risk facilities, completed the conversion of all operational coal-fired plants to dry CCR storage, and ceased operation of wet CCR storage facilities.

As of June 30, 2025, TVA had spent approximately $3.3 billion on its CCR Program. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Coal Combustion Residuals in the Annual Report.

Real Property Portfolio

TVA engages in ongoing Tennessee Valley-wide real property portfolio evaluations of buildings, structures, and land as

part of the strategic real estate program, which focuses on reducing cost, right-sizing the portfolio, and aligning real estate

holdings with TVA's strategic direction. In February 2025, the TVA Board voted to surplus the Missionary Ridge and Blue Ridge buildings at the Chattanooga Office Complex, subject to Chief Executive Officer ("CEO") determination of disposal. Subject to such further CEO determination, these buildings will remain in operation until the system operations center becomes fully operational, which is expected in CY 2026. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Real Property Portfolio in the Annual Report.

Corporate Governance

Board. The terms of Beth H. Harwell and Brian E. Noland as members of the TVA Board ended January 3, 2025, with the adjournment of the most recent session of Congress. Although their terms of office expired May 18, 2024, the TVA Act permitted them to continue to serve as Directors until the end of this session of Congress.

L. Michelle Moore's, Joe H. Ritch's, and Beth P. Geer's appointments as members of the TVA Board ended March 27, 2025, April 1, 2025, and June 10, 2025, respectively, at the direction of the President of the United States. With the departure of Mr. Ritch in April, Director William J. Renick assumed the role of Board Chair pursuant to the TVA Board's decision on February 13, 2025, nominating Mr. Renick as chair-elect of the TVA Board.

The TVA Board now has three members and, thus, is without a quorum. The TVA Board continues to have all authorities as described in Section 1.6 of the TVA Bylaws to "continue to exercise those powers of the Board which are necessary to assure continuity of operations of [TVA] along the lines established while [TVA] was guided by a quorum of the Board, but shall not have the authority to direct [TVA] into new areas of activity, to embark on new programs, or to change [TVA's] existing direction" ("Section 1.6 Authority"). On July 15, 2025, the TVA Board delegated its Section 1.6 Authority to the CEO, provided that the delegation will become effective only in the event the TVA Board ceases to have any members and, once effective, will extend until the TVA Board regains at least one member, and provided further that the CEO will not have any authority to make decisions affecting the compensation of the CEO.

Management. On January 13, 2025, TVA announced that Thomas C. Rice had been appointed as TVA’s new Senior Vice President and Chief Financial Officer, effective January 27, 2025. In his new position, Mr. Rice is responsible for directing all of TVA’s financial functions, including treasury, risk management, accounting, financial operations and performance, financial planning, and investor relations. He succeeded John M. Thomas, III, who, on December 2, 2024, announced his retirement from TVA effective March 7, 2025. Until his retirement, Mr. Thomas served as Executive Vice President and Advisor to the CEO and assisted with the transition of his responsibilities. Mr. Rice's title changed to Executive Vice President and Chief Financial Officer, effective July 28, 2025.

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On January 29, 2025, Jeffrey J. Lyash, TVA's President and CEO, notified his executive leadership team, and the TVA Board, of his intention to retire no later than October 2, 2025. On March 31, 2025, TVA announced that Donald A. Moul had been appointed as TVA’s new President and CEO, effective April 9, 2025. Mr. Lyash continued to serve until April 30, 2025, to support the transition.

In his new position, Mr. Moul will be entitled to the compensation set forth in his offer letter accepted as of March 25, 2025, and the most significant elements of his compensation are described below.

•Mr. Moul’s salary will increase from $844,052 to $1,200,000.

•Mr. Moul will continue to be a participant in TVA’s Executive Annual Incentive Plan (“EAIP”), and his target annual incentive opportunity will increase from 80 percent to 110 percent of his annual salary. For the year ending September 30, 2025, Mr. Moul’s EAIP award will be prorated based on time spent in his two roles. The EAIP award is contingent upon continued employment through September 30, 2025, and is subject to achievement of performance goals.

•Mr. Moul will continue to be a participant in TVA’s Long-Term Incentive Plan (“LTIP”).

–Under the long-term performance (“LTP”) component of the LTIP, Mr. Moul’s target grant opportunity for the performance cycle ending on September 30, 2025, will remain $1,425,000, and his target grant opportunity for the performance cycle ending on September 30, 2026 will be $2,450,000. Except as described below in Item 5, LTP awards will vest upon the completion of the three-year performance cycles, contingent upon continued employment through the vesting dates and subject to achievement of performance goals.

–Under the long-term retention component of the LTIP, Mr. Moul’s aggregate grant opportunity for the year ending on September 30, 2025, will be $961,667, and his aggregate grant opportunity for the year ending on September 30, 2026 will be $1,050,000. Except as described below in Item 5, Mr. Moul will receive these amounts if he remains employed by TVA through the end of the retention periods.

Effective April 2, 2025, David B. Fountain’s tenure as TVA’s Executive Vice President, General Counsel and Corporate Secretary ended. Mr. Fountain’s no-fault separation from TVA was finalized on April 7, 2025.

On July 14, 2025, Tim Rausch, TVA's Executive Vice President and Chief Nuclear Officer, informed TVA's CEO of his intention to separate from service no later than March 1, 2026, and executed a separation and release agreement.

Executive Actions

On January 20, 2025, President Trump issued an executive order (“EO”) that revoked a number of EOs, including several EOs relating to environmental matters. See Environmental Matters — General below. See also Environmental Matters — Clean Air Act Programs and Regulations — Mercury and Air Toxics Standards for Electric Utility Units for a discussion of a proclamation issued on April 8, 2025. On January 20, 2025, President Trump also issued EO 14154, “Unleashing American Energy,” which in part instructed agencies to pause the disbursement of funds appropriated under the IRA and BIL. On January 21, 2025, the Office of Management and Budget issued Memorandum M-25-11, which clarified that EO 14154 requires agencies to pause disbursement of funds appropriated under the IRA or the BIL only for programs that are inconsistent with the policy of section 2 of EO 14154, related to the Green New Deal, including consumer mandates on electric vehicles and appliances. While the IRA and BIL funding freeze under EO 14154 likely does not apply to funding that TVA is seeking, other governmental actions and funding restrictions may delay any award of grants for which TVA has applied under these acts. Furthermore, President Trump and the Administration have taken a number of other actions that may impact TVA, and multiple court decisions may affect the implementation of these actions. TVA is currently reviewing these actions and related court decisions to evaluate the impact to TVA and is updating its policies and programs as appropriate.

On July 4, 2025, the President signed into law the budget reconciliation bill referred to as the One Big Beautiful Bill Act ("Act"). Among other things, the Act introduces significant changes to a range of federal tax credit programs under the IRA, many of which are directly relevant to TVA’s ongoing and planned energy initiatives. These changes include terminations, modifications, and new restrictions on various clean energy and efficiency credits and could directly affect the financial viability of clean-energy alternatives and the cost or availability of power acquired through solar PPAs. TVA continues to evaluate its energy portfolio to actively develop long-term plans to take into consideration these changes, which may impact future decisions related to the mix of energy sources TVA utilizes. TVA is currently evaluating the impact of these legislative changes.

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Environmental Matters

There have been no material changes to the environmental matters described in Part I, Item 1, Business — Environmental Matters of the Annual Report, except as described below.

General

On January 20, 2025, President Trump issued an EO that revoked a number of EOs, including the following EOs discussed in Part I, Item 1, Business — Environmental Matters — Climate Change — Executive Actions in the Annual Report: (1) EO 13990, "Protecting Public Health and the Environment and Restoring Science To Tackle the Climate Crisis"; (2) EO 14008, "Tackling the Climate Crisis at Home and Abroad”; (3) EO 14030, “Climate-Related Financial Risk”; (4) EO 14057, "Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability"; (5) EO 14082, “Implementation of the Energy and Infrastructure Provisions of the Inflation Reduction Act of 2022”; and (6) EO 14096, “Revitalizing Our Nation's Commitment to Environmental Justice for All.”

On March 12, 2025, the Environmental Protection Agency ("EPA") Administrator announced that EPA will reconsider 31 rules, including (1) regulations on power plants, (2) Mercury and Air Toxics Standards, (3) steam electric effluent limitation guidelines, (4) National Ambient Air Quality Standards for particulate matter, (5) regulations regarding regional haze, (6) the Good Neighbor Plan, and (7) CCR regulations. TVA cannot predict the outcome of such reevaluations or their impact on TVA's financial results or operations. See Part I, Item 1, Business — Environmental Matters in the Annual Report.

Clean Air Act Programs and Regulations

Regional Haze Program. In February 2025, the TVA Board approved funding of $233 million to construct scrubbers at two additional units at Shawnee Fossil Plant by the end of 2028. Inclusive of the costs for these two scrubbers, at June 30, 2025, TVA’s estimated potential expenditures on Clean Air Act control projects are $48 million, $98 million, and $216 million for the remainder of 2025, 2026, and 2027 - 2029, respectively.

Mercury and Air Toxics Standards for Electric Utility Units. On April 8, 2025, the President issued a proclamation exempting certain coal-fired power plants for two years from compliance with the updated Mercury and Air Toxics Standards that EPA published in May 2024. The President has exempted TVA's Cumberland, Gallatin, Kingston, and Shawnee fossil plants for the period beginning July 8, 2027 and concluding July 8, 2029. These plants must continue to comply with the Mercury and Air Toxics Standards that were in effect prior to the May 2024 update. These exemptions are currently subject to legal challenge.

Climate Change

Emissions. Emissions of nitrogen oxides ("NOx") and sulfur dioxide ("SO2") began being regulated in 1995 and 1977, respectively. Emissions of NOx and SO2 have been reduced by 97 percent and 99 percent, respectively, since their initial year of regulation.

Emissions and Intensity Rates (1)	CY 2024	CY 2023
Nitrogen Oxides (NOx)(2)
Total NOx Emissions (MT)	14,743	13,221
Total NOx Emissions Intensity (MT/Net MWh)	0.000107	0.000098
Sulfur Dioxide (SO2)(2)
Total SO2 Emissions (MT)	19,992	17,736
Total SO2 Emissions Intensity (MT/Net MWh)	0.000145	0.000131
Mercury (Hg)
Total Hg Emissions (kg)	49.1	47.4
Total Hg Emissions Intensity (kg/Net MWh)	0.0000004	0.0000004

Notes

(1) Intensity rates are calculated based on generation from TVA's most recent fiscal year for years indicated and emissions data from the most recent CYs.

(2) Emissions data is consistent with Edison Electric Institute Environmental, Social, Governance, and Sustainability Report standards, which are based on metric tons ("MTs"), whereas overall CO2 emission rates and baseline reductions from historical levels are based on short tons.

For CY 2024, TVA's emissions of carbon dioxide ("CO2") from its owned and operated units, including purchased power and Renewable Energy Certificate retirement adjustments which reduce the reportable CO2 emissions, were 54 million tons, resulting in a TVA system average, as delivered, CO2 emission rate of 680 lbs/MWh. This represents a 53 percent and 49 percent reduction in mass carbon emissions and TVA's carbon emission rate, respectively, from 2005 levels.

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Cleanup of Solid and Hazardous Wastes

Coal Combustion Residuals. In August 2015, TDEC issued an order that includes an iterative process through which TVA and TDEC will investigate, assess, and remediate any unacceptable risks resulting from coal combustion residuals (“CCR”) management and disposal at TVA CCR units in the State of Tennessee. As part of this process, TVA has submitted environmental assessment reports (“EARs”) to TDEC, and after the EARs are approved, TVA will submit Corrective Action/Risk Assessment (“CARA”) Plans that will identify the unacceptable risks and TVA's proposed remediation. TDEC will review the CARA Plans and provide comments, and TVA will make revisions to address TDEC's comments until TDEC approves a final CARA Plan for each site. The public also will have an opportunity to review and comment on each CARA Plan prior to TDEC's approval of the final plan. TDEC approved the EAR for Bull Run Fossil Plant ("Bull Run") on November 15, 2024, and TVA submitted the initial draft of the Bull Run CARA Plan to TDEC in January 2025. TDEC approved the EAR for Johnsonville Fossil Plant ("Johnsonville") on March 31, 2025, and TVA submitted the initial draft of the Johnsonville CARA Plan to TDEC in May 2025. In July 2025, TDEC approved the final CARA plan for John Sevier Fossil Plant. See Part I, Item I, Business — Environmental Matters — Cleanup of Solid and Hazardous Wastes — Coal Combustion Residuals in the Annual Report.

On July 22, 2025, EPA issued a direct final rule that extends deadlines for CCR management unit ("CCRMU") requirements. The rule allows the two parts of the CCRMU facility evaluation reports to be prepared concurrently so long as both reports are submitted no later than February 8, 2027. In addition, the rule extends the deadline for owners or operators of CCRMU to comply with the groundwater monitoring provisions by 15 months, to no later than August 8, 2029. Since the facility evaluation reports and groundwater monitoring requirements are prerequisites for other CCRMU requirements, the rule also makes conforming changes to the remaining CCRMU compliance deadlines. TVA is still evaluating the rule and its potential impact on TVA's operations. See Part I, Item I, Business — Environmental Matters — Cleanup of Solid and Hazardous Wastes — Coal Combustion Residuals in the Annual Report.

Legal Proceedings

From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting its activities. As of June 30, 2025, TVA had accrued $10 million with respect to Legal Proceedings. No assurance can be given that TVA will not be subject to significant additional claims and liabilities. If actual liabilities significantly exceed the estimates made, TVA's results of operations, liquidity, and financial condition could be materially adversely affected.

For a discussion of certain current material Legal Proceedings, see Note 21 — Contingencies and Legal Proceedings — Legal Proceedings, which discussions are incorporated into this Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

Critical Accounting Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the financial statements. Although the financial statements are prepared in conformity with accounting principles generally accepted in the U.S., TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses reported during the reporting period. Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results. Estimates are deemed critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows. TVA's critical accounting estimates and policies are discussed in Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Critical Accounting Estimates and Note 1 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Annual Report.

New Accounting Standards and Interpretations

For a discussion of new accounting standards and interpretations, see Note 2 — Impact of New Accounting Standards and Interpretations, which discussion is incorporated into this Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

Legislative and Regulatory Matters

For additional discussion on legislative and regulatory matters, including a discussion of environmental legislation and regulation, see Environmental Matters and Key Initiatives and Challenges above. Also, see Part I, Item 1, Business — Environmental Matters and Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges of the Annual Report.

TVA does not engage, and does not control any entity that is engaged, in any activity listed under Section 13(r) of the Securities Exchange Act of 1934 (the "Exchange Act"), which requires certain issuers to disclose certain activities relating to Iran involving the issuer and its affiliates.  Based on information supplied by each such person, none of TVA's directors and executive

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officers are involved in any such activities.  While TVA is an agency and instrumentality of the U.S., TVA does not believe its disclosure obligations, if any, under Section 13(r) extend to the activities of any other departments, divisions, or agencies of the U.S.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There are no material changes related to market risks disclosed under Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Risk Management Activities in the Annual Report. See Note 14 — Risk Management Activities and Derivative Transactions for additional information regarding TVA's derivative transactions and risk management activities.

ITEM 4.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

TVA maintains disclosure controls and procedures designed to ensure that information required to be disclosed by TVA in reports that it files or submits under the Exchange Act is recorded, processed, summarized, and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms, and is accumulated and communicated to TVA’s management, as appropriate, to allow timely decisions regarding required disclosure. TVA's management, including the President and CEO, the Senior Vice President and Chief Financial Officer, and members of the Disclosure Control Committee, including the Vice President and Controller (Principal Accounting Officer) (collectively "management"), evaluated the effectiveness of TVA's disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) as of June 30, 2025.  Based on this evaluation, management concluded that TVA's disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Control over Financial Reporting

During the quarter ended June 30, 2025, there were no changes in TVA's internal control over financial reporting that materially affected, or are reasonably likely to materially affect, TVA's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEEDINGS

From time to time, the Tennessee Valley Authority ("TVA") is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting its activities. While the outcome of the Legal Proceedings to which TVA is a party cannot be predicted with certainty, any adverse outcome to a Legal Proceeding involving TVA may have a material adverse effect on TVA's financial condition, results of operations, and cash flows.

For a discussion of certain current material Legal Proceedings, see Note 21 — Contingencies and Legal Proceedings — Legal Proceedings, which discussions are incorporated by reference into this Part II, Item 1, Legal Proceedings.

ITEM 1A.  RISK FACTORS

There are no material changes related to risk factors from the risk factors disclosed in Part I, Item 1A, Risk Factors in the Annual Report, except as described below.

The recent loss of a quorum of the TVA Board of Directors could limit TVA's ability to adapt to changing business conditions.

Under the TVA Act, a quorum of the TVA Board of Directors ("TVA Board") is five members. On April 1, 2025, the TVA Board lost a quorum, and it currently has three members. Without a quorum, the TVA Board may not have authority to direct TVA into new areas of activity, to embark on new programs, or to change TVA's existing direction. As such, the loss of a quorum for an extended period of time may have a negative impact on TVA's ability to change the rates TVA charges for power, change long-term objectives, plans, and policies, and respond to significant changes in technology, the regulatory environment, or the industry overall and, in turn, negatively affect TVA's cash flows, results of operations, financial condition, and reputation. TVA believes that the actions taken by the TVA Board since April 1, 2025, are authorized under its bylaws or otherwise. Becoming a member of the TVA Board requires confirmation by the U.S. Senate following appointment by the President. This process has been and could again in the future be subject to extended delays. TVA cannot predict when the TVA Board will again have a quorum or whether any challenges will arise associated with its operations in the interim and any consequences as a result. See Part I, Item 1A, Risk Factors — Human Capital and Management Risks — Loss of a quorum of the TVA Board could limit TVA's ability to adapt to changing business conditions in the Annual Report.

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ITEM 5.  OTHER INFORMATION

Insider Trading Arrangements and Policies

During the three months ended June 30, 2025, no director or officer of TVA notified TVA of the adoption or termination of a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K.

Compensation Actions

On July 23, 2025, the TVA Board took several actions related to compensation. The TVA Board (1) established 2026 performance measures and goals for the Enterprise Scorecard for the Winning Performance Team Incentive Plan (“WPTIP”) and Executive Annual Incentive Plan (“EAIP”) and (2) established performance measures and goals for the 2026 – 2028 performance cycle under the Long-Term Incentive Plan (“LTIP”). Each of these items is discussed in more detail below.

2026 Enterprise Scorecard for WPTIP and EAIP

The Board established the following performance measures and goals for the Enterprise Scorecard for both the WPTIP and the EAIP for 2026:

Performance Measure	Weight	Threshold	Target	Stretch
SBU Controllable O&M and Base Capital Spend (1)	40%	2% SBU O&M / 4% Capital Over Budget	2026 Budget	2% SBU O&M / 4% Capital Under Budget
Serious Injury Incident Rate (2)	15%	0.03	0.01	0.00
Transmission Performance Indicator (3)	15%	50	100	200
Generation Performance Indicator (4)	15%	50	100	200
Nuclear Performance Indicator (5)	15%	Equidistant from Target	2%	Comparable Fleet Top Quartile 24-month average as of September 2025

Notes

(1) Strategic Business Unit ("SBU") Controllable Operating & Maintenance ("O&M") and Base Capital Spend equals the total Non-Fuel O&M and Base Capital expenses for corporate and operational SBU organizations (excludes Board of Directors).

(2) The Serious Injury Incident Rate is a mathematical calculation used by Edison Electric Institute that quantifies the extent of injury for serious injuries and fatalities from events within the control of the employee and/or the employer.

(3) Transmission Performance Indicator is an aggregate measure of the overall reliability of TVA's transmission system.

(4) The Generation Performance Indicator is an aggregate measure of the overall reliability of TVA's power operations generation fleet based on key performance measures in Gas, Hydro, and Coal that are intended to ensure that TVA's fleet of power operations generation assets are available and reliable to meet system demand.

(5) The Nuclear Performance Indicator is the Annualized Online Reliability Loss Factor, which is the 12-month ratio of all generation losses minus refueling outage ("RFO") and exempt losses to reference energy generation minus RFO and exempt losses in a normal fuel cycle period, per standard industry guidelines. This measure monitors performance between refueling outages to obtain high unit and energy production reliability.

Transmission Performance Indicator	Weight	Threshold	Target	Stretch
Load Not Served (1)	60%	4.4	3.7	3.0
Outages per Hundred Miles per Year (2)	20%	2.87	2.61	2.35
Connection Point Interruption Frequency (3)	20%	0.64	0.53	0.42

Notes

(1) Load Not Served ("LNS") is a measure of the magnitude and duration of transmission system outages that affect TVA customers expressed in system minutes. TVA manages this critical indicator to reduce the impact of customer outages. An automatic customer interruption with a duration of one minute or greater is tracked as an LNS event. LNS events caused by TVA on a distributor system will also count as a TVA event even if the TVA system remains energized. LNS excludes interruptions due to declared major events, variances, verified tornadoes, gunfire, vandalism, ice formation, and foreign object/vehicle (DUI, DWI, hit and run, or suicide).

(2) Outages per Hundred Miles per Year ("OHMY") is the number of automatic interruptions (sustained and momentary) to lines greater than or equal to 100-kV per 100 miles of transmission line per year. OHMY excludes interruptions due to declared major events, variances, verified tornadoes, gunfire, vandalism, ice formation, foreign object/vehicle (DUI, DWI, hit and run, or suicide), and nested interruptions.

(3) Connection Point Interruption Frequency ("CPIF") measures reliability from the customer's perspective. CPIF tracks interruptions of power, including momentary interruptions, at connection points caused by the transmission system. CPIF includes automatic and emergency forced outages and excludes prearranged (scheduled or planned) and operational outages as well as interruptions due to declared major events, variances, verified tornadoes, gunfire, vandalism, ice formation, and foreign object/vehicle (DUI, DWI, hit and run, or suicide).

Generation Performance Indicator	Weight	Threshold	Target	Stretch
Combined Cycle Equivalent Forced Outage Rate (1)	45%	4.5%	3.8%	2.0%
Hydro Equivalent Forced Outage Rate (2)	25%	5.7%	4.2%	2.0%
Coal Equivalent Forced Outage Rate (3)	25%	11.9%	10.3%	8.7%
Combustion Turbine Economic Starting Reliability (4)	5%	99.0%	99.3%	99.6%

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Notes

(1) Combined Cycle Equivalent Forced Outage Rate (“EFOR”) measures the generation lost due to forced events as a percentage of time the unit would have been scheduled to run for TVA-operated combined cycle generating assets, based on Generating Availability Data System (“GADS”) event reporting guidelines for megawatt hour losses. Combined Cycle EFOR excludes GADS events classified as outside management control and variances.

(2) Hydro EFOR reflects the percentage of time over a given period that a generating unit is in forced outage. This measure includes startup failures and is based on GADS event reporting guidelines for megawatt hour losses. Hydro EFOR excludes GADS events classified as outside management control and variances.

(3) Coal EFOR reflects the percentage of time over a given period that a generating unit is in forced outage. This measure includes startup failures and is based on GADS event reporting guidelines for megawatt hour losses. Coal EFOR excludes GADS events classified as outside management control and variances.

(4) Combustion Turbine ("CT") Economic Starting Reliability reflects the percentage of successful attempts to start up a unit for generation, performance testing, or black start over a given period that a generating unit was available for TVA-operated CT assets. Total unit performance tests demonstrate that a unit will start and perform as intended. Black start tests demonstrate that a unit will start without relying on external power and perform as intended. CT Economic Starting Reliability excludes GADS events classified as outside management control and variances.

LTIP Performance Measures and Goals for the 2026 - 2028 Performance Cycle

The Board approved LTIP performance measures and goals for the 2026 - 2028 performance cycle. These performance measures, along with their associated weights and goals, are as follows:

Long-Term Incentive Measures	Weight	Threshold	Target	Stretch
Total Spend (1)	60%	2% Non-Fuel O&M, Inventory, and Cloud Spend / 4% Capital Spend Over Budget	2026 - 2028 Cumulative Total Spend Based on the 2026 Budget	2% Non-Fuel O&M, Inventory, and Cloud Spend / 4% Capital Spend Under Budget
Carbon-Free Performance Indicator (2)	20%	50	100	200
Powerful Partnerships Survey (3)	20%	75	79	83

Notes

(1) Total Spend represents total Non-Fuel O&M, Capital, Non-Fuel Inventory, and Cloud Implementation expenses for corporate and operational SBU organizations (excluding the Board of Directors). This measure will support the overall TVA goal of maintaining costs and managing rates based on spending levels approved by TVA management and the Board.

(2) Carbon-Free Performance Indicator measures renewable MW added to the TVA system, energy program savings GWh and capacity MW provided by energy programs, and the ability to meet TVA's operational needs through demand response event performance. This measure supports the evolution of TVA's reliable and clean energy supply into the energy system of the future as well as helps manage the impact of TVA's identified enterprise risk related to planning and execution of the power system.

(3) The Powerful Partnerships Survey is conducted among customers, elected officials, business/economic development leaders, and the general public in the TVA service area to assess the strength of various stakeholder relationships with TVA. This measure supports the effective management of TVA's reputation and ability to achieve desired outcomes and deliver on strategic priorities with stakeholders.

Carbon-Free Performance Indicator	Weight	Threshold	Target	Stretch
Renewable and Storage MW Added (1)	30%	918	1,224	1,530
Demand Response Event Performance % (2)	25%	81%	90%	99%
Energy Program MW (3)	20%	1,429	1,906	2,382
Energy Program GWh (4)	15%	620	826	1,033
Traditional Carbon-Free MW Added (5)	10%	60% of 2026 Budget Power Supply Plan Target MW	80% of 2026 Budget Power Supply Plan Target MW	100% of 2026 Budget Power Supply Plan Target MW

Notes

(1) Renewable and Storage MW Added tracks the number of renewable and storage MW that come on-line in accordance with delivered PPAs, partner flexibility, and TVA-builds.

(2) Demand Response Event Performance Percentage calculates the performance of demand response programs by determining a 12-month rolling average of the portfolio's actual demand reduction to the expected demand reduction and contractual requirements percentage for demand response events.

(3) Energy Program MW tracks the amount of MW to be reduced from the system from active demand response program contracts, demand response participant load reductions since the last power supply plan submission, and energy efficiency projects and their cumulative peak demand reductions.

(4) Energy Program GWh tracks the amount of GWh reduced from the system from TVA-influenced energy efficiency projects and the energy reductions achieved during demand response events.

(5) Traditional Carbon-Free MW Added represents the incremental MW added through planned carbon-free generation asset additions and upgrades or uprates for existing carbon-free generation assets in the TVA fleet.

Compensation Adjustments

Chief Financial Officer ("CFO")

On July 24, 2025, Chief Executive Officer ("CEO") Don Moul notified Tom Rice that his title would be changing to Executive Vice President and CFO effective July 28, 2025, and that he would be entitled to the following compensation in connection with this change:

•Mr. Rice’s annual salary will be $705,000.

•Mr. Rice’s target annual incentive opportunity under the EAIP will remain unchanged at 75 percent of his annual salary.

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•Mr. Rice will continue to be a participant in TVA’s LTIP.

–Under the long-term performance (“LTP”) component of the LTIP, Mr. Rice will receive a LTP grant of $1,302,000 for the three-year performance cycle ending on September 30, 2026, and a LTP grant of $1,302,000 for the three-year performance cycle ending on September 30, 2027. These grants will replace the grants that were previously awarded to Mr. Rice for these performance cycles. Mr. Rice’s LTP grant for the three-year performance cycle ending on September 30, 2025, will remain unchanged.

–Under the long-term retention (“LTR”) component of the LTIP, Mr. Rice will receive an LTR grant in the amount of $393,666 for the three-year period ending on September 30, 2026, and an LTR grant in the amount of $558,000 for the three-year period ending on September 30, 2027. These grants will replace the grants that were previously awarded to Mr. Rice for these periods. Mr. Rice’s LTR grant for the three-year period ending on September 30, 2025, will remain unchanged.

CEO

On July 25, 2025, the TVA Board approved the following as a supplement to the terms of Don Moul’s March 25, 2025, appointment to serve as TVA’s President and CEO, as necessary to reflect the Board’s intent at the time it made the initial appointment decision on March 25, 2025. Mr. Moul will receive some severance benefits, without regard to meeting the Retirement requirements as defined in TVA's LTIP, so long as he experiences a Separation from Service due to (1) a termination of service by TVA, other than due to Gross Misconduct or as a result of death or disability, or (2) a resignation due to Good Reason; unless otherwise noted, all capitalized terms used in this paragraph shall have the meaning given to those terms in TVA’s Executive Severance Plan, as last amended on April 3, 2025.

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ITEM 6.  EXHIBITS

Exhibit  No.	Description
3.1	Tennessee Valley Authority Act of 1933, as amended, 16 U.S.C. §§ 831-831ee (Incorporated by reference to Exhibit 3.1 to TVA's Quarterly Report on Form 10-Q for the quarter ended December 31, 2016, File No. 000-52313)
3.2	Bylaws of the Tennessee Valley Authority Approved by the TVA Board on May 18, 2006, as amended on April 3, 2008, May 19, 2008, June 10, 2010, February 13, 2014, August 21, 2014, and November 6, 2014 (Incorporated by reference to Exhibit 3.2 to TVA's Annual Report on Form 10-K for the year ended September 30, 2014, File No. 000-52313)
10.1	Amended and Restated Executive Annual Incentive Plan Approved as of April 3, 2025 (Incorporated by reference to Exhibit 10.3 to TVA's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, File No. 000-52313)
10.2	Amended and Restated Long-Term Incentive Plan Approved as of April 3, 2025 (Incorporated by reference to Exhibit 10.4 to TVA's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, File No. 000-52313)
10.3	Amended and Restated Executive Severance Plan Approved as of April 3, 2025 (Incorporated by reference to Exhibit 10.5 to TVA's Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, File No. 000-52313)
10.4*	No-Fault Separation Agreement Between TVA and David Fountain Dated as of April 7, 2025
31.1	Rule 13a-14(a)/15d-14(a) Certification Executed by the Chief Executive Officer
31.2	Rule 13a-14(a)/15d-14(a) Certification Executed by the Chief Financial Officer
32.1	Section 1350 Certification Executed by the Chief Executive Officer
32.2	Section 1350 Certification Executed by the Chief Financial Officer
101.INS	Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File - formatted in Inline XBRL and contained in Exhibit 101

* Certain attachments have been omitted. TVA hereby undertakes to furnish copies of the omitted attachments upon request by the Securities and Exchange Commission.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Date:	July 28, 2025		TENNESSEE VALLEY AUTHORITY
			(Registrant)
		By:	/s/ Donald A. Moul
			Donald A. Moul
			President and Chief Executive Officer (Principal Executive Officer)
		By:	/s/ Thomas C. Rice
			Thomas C. Rice
			Executive Vice President and Chief Financial Officer (Principal Financial Officer)

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EX-10.4

Exhibit 10.4

Tennessee Valley Authority, 1101 Market Street, Chattanooga, Tennessee 37402-2801

April 2, 2025

David Fountain

505 Market St, Unit #702

Knoxville, TN 37901

Dear Mr. Fountain,

This Separation and Release Letter Agreement (this “Agreement”) is to confirm the understanding that was reached on April 2, 2025, regarding your employment with TVA. The Administrator of TVA’s Executive Severance Plan, Amended and Restated as of May 9, 2024, has determined that you are eligible for benefits in accordance with the terms of that plan based on the circumstances of your separation from service and your execution of this Agreement. Your separation from service decision is irrevocable as of the Effective Date of this Agreement, and you will actually separate from TVA service no later than June 1, 2025 (the “Termination Date”). TVA appreciates your valuable service during your tenure with TVA.

No Other Amounts / Benefits Owed. You will be entitled to your current salary, as well as any accrued annual leave, through the effective date of your separation from service (collectively, the “Accrued Benefits”). You agree that, prior to the execution of this Agreement and except for the Accrued Benefits, you were not entitled to receive any further payments or benefits from TVA, and the only payments and benefits that you are entitled to receive from TVA in the future are those specified in this Agreement; provided that your separation will not affect your rights to pension benefits in accordance with the rules of the Tennessee Valley Authority Retirement System or to the balance of your 401(k) account accrued during, and as a result of, your period of service as a TVA employee.

Severance. Subject to your execution and continued compliance with this Agreement, TVA will pay or provide to you, as applicable, the payments and benefits set forth in that certain Executive Severance Plan of TVA, Amended and Restated as of May 9, 2024, a copy of which is attached hereto, at the times and in the manner set forth therein, less applicable taxes and withholdings (the “Severance”). To the extent that there is any conflict between the terms of this Agreement and the Executive Severance Plan of TVA (or any other compensation plans offered by TVA for which you are or were a participant), the terms of the plan(s) control.

Confidentiality and Non-Disparagement. Because of the nature of your position, you have had access to business sensitive information. You agree, except as required by law, not to disclose or use TVA business sensitive information in the future. You also agree that you will make no comments or statements adverse or critical of TVA, its directors, its management, its employees, or any of its programs. Similarly, TVA agrees not to make any comments or statements adverse or critical of you.

Post-Employment Restrictions. You agree that you have received and read a copy of the Summary of Post-Employment Restrictions document which outlines the post-employment guidelines all former TVA employees must follow.

Voluntary Entry. You agree that you understand the provisions of this Agreement and that you voluntarily enter into it and accept it as full and final resolution of all matters related to your TVA employment.

Exhibit 10.4

Release. In consideration for receiving the Severance, and for other good and valuable consideration, the sufficiency of which you hereby acknowledge, you hereby expressly release and waive to the maximum extent permitted by applicable law any and all claims or causes of action, whether known or unknown, against TVA and/or its successors, past or present subsidiaries, affiliated companies, branches, or related entities (collectively, including TVA, the “Entities”) and/or the Entities’ respective past, present, or future directors, officers, agents, employees, insurers, attorneys, assigns, and employee benefit plans (collectively with the Entities, the “Released Parties”), with respect to any matter, including, without limitation, any matter related to your employment with TVA or the termination of that employment relationship (including any claims under Title VII of the Civil Rights Act, the Equal Pay Act, and the Family and Medical Leave Act, but not including any claims under the Federal Employees Compensation Act).

This waiver and release includes, without limitation, claims to wages, including overtime or minimum wages, bonuses, incentive compensation, vacation pay, or any other compensation or benefits; any claims for failure to provide accurate itemized wage statements, failure to timely pay final pay, or failure to provide meal or rest breaks; claims for any loss, cost, damage, or expense arising out of any dispute over the non-withholding or other tax treatment or employment classification; claims for attorneys’ fees or costs; claims for penalties; claims of wrongful discharge, constructive discharge, emotional distress, defamation, invasion of privacy, fraud, breach of contract, and breach of the covenant of good faith and fair dealing; any claims of discrimination, harassment, or retaliation based on sex, age, race, national origin, disability, or any other protected basis; any claims under any applicable law prohibiting discrimination, harassment, and/or retaliation; and claims under all other laws, ordinances, and regulations. You covenant not to sue the Released Parties for any of the claims released above, agree not to participate in any class, collective, representative, or group action that may include any of the claims released above, and will affirmatively opt out of any such class, collective, representative, or group action.

Limited Indemnification. TVA agrees to continue to defend and indemnify you against claims that result from your performance of your TVA duties prior to the Termination Date under the terms set out in TVA-SPP-25.1 Legal Representation.

Agreement Confidential. You further agree to treat this matter as confidential and not to discuss the terms of your separation from TVA service except with your family and financial advisor, or as required by law.

Exceptions. This waiver and release covers only those claims that arose prior to your execution of this Agreement and does not apply to (a) the Accrued Benefits, (b) your rights under this Agreement, including to the Severance, or (c) any claim which, as a matter of law, cannot be released by private agreement. Nothing in this Agreement is intended to prevent, restrict, or otherwise discourage you from providing TVA or the Nuclear Regulatory Commission (“NRC”) with any information about actual or potential nuclear safety concerns or violations, or from responding to requests for information from the NRC. Section 211 of the Energy Reorganization Act (“ERA”) and NRC regulations (10 CFR 50.7) also protect employees from any adverse employment action as a result of their engaging in such protected activities. By your signature below, you confirm that you have already informed TVA management of any nuclear safety concerns you may have in connection with the construction, maintenance, operation, and security of any TVA facilities, including nuclear plants. You also confirm that no adverse employment action is being taken, in any part, as a result of your engaging in protected activities as defined in Section 211 of the ERA or NRC regulations.

Nothing in this Agreement is intended to prevent, restrict, or otherwise discourage you from providing the Office of the Inspector General (“OIG”) with any information or from responding to requests for information from the OIG or otherwise precludes you from participating in any investigation or proceeding before any government agency or body or from reporting possible violations of federal or state law or regulation to any governmental agency or entity, legislative body, or self-regulatory organization, or making other disclosures that are protected under the whistleblower provisions of federal or state law or regulation, nor are you required to notify TVA regarding any such reporting, disclosure, or cooperation with the

Exhibit 10.4

government. However, while you may file a charge and participate in any such proceeding, by signing this Agreement, you waive any right, to the extent permitted under applicable law, to bring a lawsuit against the Released Parties and to any individual monetary recovery in any such proceeding or lawsuit.

You acknowledge that the U.S. Defend Trade Secrets Act of 2016 (“DTSA”) provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that is made (a) (i) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (ii) solely for the purpose of reporting or investigating a suspected violation of law, or (b) in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. In addition, the DTSA provides that an individual who files a lawsuit for

retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual (i)

files any document containing the trade secret under seal and (ii) does not disclose the trade secret, except pursuant to court order.

Section 409A. The Severance is intended to be exempt from, or comply with, Section 409A of the Internal Revenue Code of 1986, as amended (“Section 409A”). To the extent necessary to prevent the imposition of taxes and penalties under Section 409A, if the Severance could, due to the timing of the Termination Date, be paid in either of two calendar years, such Severance shall be paid in the later such calendar year.

Governing Law. If any provision of the waiver and release contained in this Agreement is found to be unenforceable, it shall not affect the enforceability of the remaining provisions and a court shall enforce all remaining provisions to the fullest extent permitted by law. TVA is a corporate agency and instrumentality of the United States, and this Agreement shall be governed by and construed under federal law. In the event federal law does not provide a rule of decision for any matter or issue under this Agreement, the law of the State of Tennessee shall apply, without taking into account conflict of law principles. You agree that the jurisdiction for any action with respect to this Agreement shall lie in the United States District Court for the Eastern District of Tennessee.

ADEA Waiver. You acknowledge that you are knowingly and voluntarily waiving and releasing any rights you may have under the Federal Age Discrimination in Employment Act (“ADEA Waiver”) and that the consideration given for the ADEA Waiver is in addition to anything of value to which you are already entitled. You further acknowledge that: (a) your ADEA Waiver does not apply to any claims that may arise after you sign this Agreement; (b) you are advised to consult an attorney before signing this Agreement; (c) you have 21 calendar days from the date of receipt of this letter (such final date, the “Deadline”) to consider this Agreement before you sign it, but you may sign it at any time during the 21 days); (d) if you sign this Agreement, you may cancel it within seven days thereafter; and (e) this Agreement will not be effective until the eighth day after you sign it, provided that you have not cancelled it (the “Effective Date”). Any such cancellation must be in writing and signed by you and must be delivered to me by close of business on the seventh calendar day after you sign this Agreement. If you do not cancel this Agreement, this Agreement will become effective on the eighth calendar day after the date of your signature below. If you cancel this Agreement, it will become null, and void and TVA will not implement any of its terms. You agree that any modifications, material or otherwise, made to this Agreement do not restart or affect in any manner the original 21-day consideration period provided in this section. The offer described in this Agreement will be automatically withdrawn if you do not sign this Agreement within the 21-day consideration period.

Exhibit 10.4

If the provisions which I have set forth above accurately describe the terms of our agreement, please sign this letter at the place indicated below no later than the Deadline and return it to me. This Agreement shall become effective on the Effective Date.

Sincerely,

/s/ Donald Moul

Donald Moul

President & CEO (Acting)

/s/ David Fountain 04/07/2025

David Fountain Date

cc: Will Trumm, Chief Human Resources Officer (Acting)

Morgan Hopkins, Director, Compensation & Benefits

Attachments:

Tennessee Valley Authority Executive Severance Plan, effective May 9, 2024

Summary of Post-Employment Restrictions

EX-31.1

EXHIBIT 31.1

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Donald A. Moul, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of the Tennessee Valley Authority;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	July 28, 2025	/s/ Donald A. Moul
		Donald A. Moul
		President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

RULE 13a-14(a)/15d-14(a) CERTIFICATION

I, Thomas C. Rice, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of the Tennessee Valley Authority;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and we have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	July 28, 2025	/s/ Thomas C. Rice
		Thomas C. Rice
		Executive Vice President and Chief Financial Officer (Principal Financial Officer)

EX-32.1

EXHIBIT 32.1

CERTIFICATION FURNISHED PURSUANT TO

SECURITIES EXCHANGE ACT RULE 13a-14(b)

 OR RULE 15d-14(b) AND 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of the Tennessee Valley Authority (the “Company”) for the quarter ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Donald A. Moul, President and Chief Executive Officer of the Company, certify, for the purposes of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Donald A. Moul

Donald A. Moul

President and Chief Executive Officer

July 28, 2025

EX-32.2

EXHIBIT 32.2

CERTIFICATION FURNISHED PURSUANT TO

SECURITIES EXCHANGE ACT RULE 13a-14(b)

 OR RULE 15d-14(b) AND 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of the Tennessee Valley Authority (the “Company”) for the quarter ended June 30, 2025, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Thomas C. Rice, Executive Vice President and Chief Financial Officer of the Company, certify, for the purposes of complying with Rule 13a-14(b) or Rule 15d-14(b) of the Securities Exchange Act of 1934, as amended, and Section 1350 of Chapter 63 of Title 18 of the United States Code, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) the Report fully complies with the requirements of section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Thomas C. Rice

Thomas C. Rice

Executive Vice President and Chief Financial Officer

(Principal Financial Officer)

July 28, 2025

XML

DEI Document shares in Millions	9 Months Ended
	Jun. 30, 2025 shares
DEI [Abstract]
Entity Registrant Name	TENNESSEE VALLEY AUTHORITY
Current Fiscal Year End Date	--09-30
Entity Address, Country	US
Entity Filer Category	Non-accelerated Filer
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2025
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding	0
Entity Current Reporting Status	Yes
Entity Shell Company	false
Document Quarterly Report	true
Local Phone Number	632-2101
City Area Code	(865)
Entity Tax Identification Number	62-0474417
Entity File Number	000-52313
Entity Address, Address Line One	400 W. Summit Hill Drive
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity Incorporation, State or Country Code	X1
Entity Address, Postal Zip Code	37902
Entity Interactive Data Current	Yes
Entity Central Index Key	0001376986
Entity Small Business	false
Document Transition Report	false
Document Information [Line Items]
Entity Incorporation, State or Country Code	X1

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Operating expenses
Fuel	$ 589	$ 424	$ 1,674	$ 1,561
Purchased power	550	408	1,516	1,139
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses	922	915	2,771	2,671
Depreciation and amortization	572	542	1,691	1,593
Tax equivalents	156	131	460	405
Operating Expenses	2,789	2,420	8,112	7,369
Operating income	517	459	1,646	1,429
Other income (expense), net	29	14	58	55
Defined Benefit Plan, Other Cost (Credit)	27	25	79	74
Interest expense
Interest expense	307	267	880	795
Net income (loss)	212	181	745	615
Regulated Operating Revenue	3,261	2,830	9,613	8,654
Unregulated Operating Revenue	45	49	145	144
Regulated and Unregulated Operating Revenue	$ 3,306	$ 2,879	$ 9,758	$ 8,798

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024		Jun. 30, 2025		Jun. 30, 2024
Net income (loss)	$ 212	$ 181		$ 745		$ 615
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	47	1		24		17
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	38	7	[1]	15	[1]	20
Other comprehensive income (loss)
Total other comprehensive income (loss)	9	(6)		9		(3)
Total comprehensive income (loss)	$ 221	$ 175		$ 754		$ 612

[1] There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

XML

CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)	Jun. 30, 2025	Sep. 30, 2024
Current assets
Cash and cash equivalents	$ 501,000,000	$ 502,000,000
Accounts receivable, net	1,887,000,000	1,801,000,000
Inventories, net	1,184,000,000	1,155,000,000
Regulatory assets	152,000,000	191,000,000
Other current assets	169,000,000	120,000,000
Total current assets	3,893,000,000	3,769,000,000
Completed Plant	71,902,000,000	70,989,000,000
Property, plant, and equipment
Less accumulated depreciation	(38,871,000,000)	(38,793,000,000)
Net completed plant	33,031,000,000	32,196,000,000
Construction in progress	6,016,000,000	4,879,000,000
Nuclear fuel	1,231,000,000	1,261,000,000
Finance lease, asset	684,000,000	729,000,000
Total property, plant, and equipment, net	40,962,000,000	39,065,000,000
Investment funds	5,277,000,000	4,968,000,000
Regulatory and other long-term assets
Regulatory assets	9,137,000,000	9,408,000,000
Operating Lease, Right-of-Use Asset	126,000,000	149,000,000
Other long-term assets	490,000,000	344,000,000
Investments and Other Noncurrent Assets	9,753,000,000	9,901,000,000
Total assets	59,885,000,000	57,703,000,000
Current liabilities
Accounts payable and accrued liabilities	2,979,000,000	2,910,000,000
Accrued interest	314,000,000	280,000,000
Asset Retirement Obligation, Current	316,000,000	283,000,000
Regulatory liabilities	202,000,000	174,000,000
Short-term debt, net	319,000,000	1,167,000,000
Current maturities of power bonds	1,370,000,000	1,022,000,000
Current maturities of long-term debt of variable interest entities	48,000,000	37,000,000
Total current liabilities	5,548,000,000	5,873,000,000
Other liabilities
Post-retirement and post-employment benefit obligations	2,678,000,000	2,887,000,000
Asset retirement obligations	10,608,000,000	10,523,000,000
Finance Lease, Liability	670,000,000	700,000,000
Other long-term liabilities	1,507,000,000	1,712,000,000
Regulatory liabilities	85,000,000	83,000,000
Liabilities, Other than Long-Term Debt, Noncurrent	15,548,000,000	15,905,000,000
Long-term debt, net
Long-term power bonds, net	19,229,000,000	17,867,000,000
Long-term debt of variable interest entities, net	1,651,000,000	897,000,000
Total long-term debt, net	20,880,000,000	18,764,000,000
Total liabilities	41,976,000,000	40,542,000,000
Proprietary capital
Power program appropriation investment	258,000,000
Power program retained earnings	17,182,000,000
Total power program proprietary capital	17,440,000,000	16,695,000,000
Nonpower programs appropriation investment, net	512,000,000
Accumulated other comprehensive income (loss)	(43,000,000)	(52,000,000)
Total proprietary capital	17,909,000,000	17,161,000,000
Liabilities and Equity	$ 59,885,000,000	$ 57,703,000,000

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2025		Jun. 30, 2024
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect and Discontinued Operation [Abstract]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	$ (1)		$ 0
Cash flows from operating activities
Net income (loss)	745		615
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization (including amortization of debt issuance costs and premiums/discounts)	1,707		1,610
Amortization of nuclear fuel cost	208		282
Non-cash retirement benefit expense	112		104
Reg Asset Amortization	38
Amortization of Regulatory Asset			(49)
Changes in current assets and liabilities
Accounts receivable, net	(76)		74
Inventories and other current assets, net	(67)		(122)
Accounts payable and accrued liabilities	3		(56)
Accrued interest	31		(19)
Pension contributions	(235)		(229)
Asset Retirement Obligation, Cash Paid to Settle	(190)		(214)
Other, net	(124)		(57)
Net cash provided by operating activities	2,076		1,939
Cash flows from investing activities
Construction expenditures	(3,442)		(2,381)
Nuclear fuel expenditures	(198)		(190)
Payments to Acquire Assets, Investing Activities	4		3
Loans and other receivables
Advances	0		(4)
Repayments	10		5
Other, net	6		27
Net cash used in investing activities	(3,628)		(2,546)
Long-term debt
Redemptions and repurchases of power bonds	(1,022)	[1]	(22)
Short-term debt issues (redemptions), net	(847)		678
Finance Lease, Principal Payments	50		46
Other, net	(4)		14
Net cash provided by (used in) financing activities	1,551		607
Proceeds from Issuance of Debt	800		0
Repayments of Other Long-term Debt	23		17
Payments of Financing Costs	25		0
Proceeds from Issuance of Unsecured Debt	2,722		0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 522		$ 521

[1] (3) All redemptions were at 100 percent of par.

XML

CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL (UNAUDITED) - USD ($)	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2025	Jun. 30, 2024	Mar. 31, 2025	Sep. 30, 2024	Sep. 30, 2023
Power Program Appropriation Investment	$ 258,000,000			$ 258,000,000
Power Program Retained Earnings	17,182,000,000			17,182,000,000
Nonpower Programs Appropriation Investment, Net	512,000,000			512,000,000
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges	(43,000,000)	$ (32,000,000)	$ (26,000,000)	(43,000,000)	$ (32,000,000)	$ (52,000,000)	$ (52,000,000)	$ (29,000,000)
Total Proprietary Capital	17,909,000,000	16,663,000,000	16,489,000,000	17,909,000,000	16,663,000,000	17,690,000,000	17,161,000,000	16,056,000,000
Net income (loss)	212,000,000	181,000,000	615,000,000	745,000,000	615,000,000
Total other comprehensive income (loss)	9,000,000	(6,000,000)	(3,000,000)	9,000,000	(3,000,000)
Return on power program appropriation investment	(2,000,000)	(1,000,000)	(5,000,000)	(6,000,000)
Power Program Appropriation Investment
Power Program Appropriation Investment	258,000,000	258,000,000	258,000,000	258,000,000	258,000,000	258,000,000	258,000,000	258,000,000
Net income (loss)	0	0		0	0
Total other comprehensive income (loss)	0	0		0	0
Return on power program appropriation investment	0	0		0	0
Power Program Retained Earnings
Power Program Retained Earnings	17,182,000,000	15,917,000,000	15,736,000,000	17,182,000,000	15,917,000,000	16,970,000,000	16,437,000,000	15,302,000,000
Net income (loss)	214,000,000	182,000,000		751,000,000	620,000,000
Total other comprehensive income (loss)	0	0		0	0
Return on power program appropriation investment	(2,000,000)	(1,000,000)		(6,000,000)	(5,000,000)
Nonpower Programs Appropriation Investment, Net
Nonpower Programs Appropriation Investment, Net	512,000,000	520,000,000	$ 521,000,000	512,000,000	520,000,000	$ 514,000,000	$ 518,000,000	$ 525,000,000
Net income (loss)	(2,000,000)	(1,000,000)		(6,000,000)	(5,000,000)
Total other comprehensive income (loss)	0	0		0	0
Return on power program appropriation investment	0	0		0	0
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges
Net income (loss)	0	0		0	0
Total other comprehensive income (loss)	9,000,000	(6,000,000)		9,000,000	(3,000,000)
Return on power program appropriation investment	$ 0	$ 0		$ 0	$ 0

XML

Supplemental Cash Flow Information Statement - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Other Significant Noncash Transactions [Line Items]
Capital Expenditures Incurred but Not yet Paid			$ 961	$ 703
Noncash or Part Noncash Acquisition, Payables Assumed	$ 41	$ 46

XML

Statement of Cash Flows, Supplemental Disclosures

9 Months Ended

Jun. 30, 2025

Supplemental Cash Flow Elements [Abstract]

Cash Flow, Supplemental Disclosures

Supplemental Cash Flow Information

Construction in progress and nuclear fuel expenditures included in Accounts payable and accrued liabilities at June 30, 2025 and 2024, were $961 million and $703 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024 as non-cash investing activities. ARO project accruals included in Accounts payable and accrued liabilities at June 30, 2025 and 2024, were $41 million and $46 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2025 and 2024, as non-cash operating activities.

Cash flows from swap contracts that are accounted for as hedges are classified in the same category as the item being

hedged or on a basis consistent with the nature of the instrument.

XML

Summary of Significant Accounting Policies (Text Block)

9 Months Ended

Jun. 30, 2025

Accounting Policies [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

General

The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") for consolidated interim financial information. Accordingly, TVA's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. As such, they should be read in conjunction with the audited financial statements for the year ended September 30, 2024, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report"). In the opinion of management, all adjustments (consisting of items of a normal recurring nature) considered necessary for fair presentation are included on the consolidated interim financial statements.

Fiscal Year

TVA's fiscal year ends September 30.  Years (2025, 2024, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Basis of Presentation

The accompanying consolidated interim financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 10 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where

changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.

Cash, Cash Equivalents, and Restricted Cash

Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:

Cash, Cash Equivalents, and Restricted Cash (in millions)
	At June 30, 2025		At September 30, 2024
Cash and cash equivalents	$	501	$	502
Restricted cash and cash equivalents included in Other long-term assets	21		21
Total cash, cash equivalents, and restricted cash	$	522	$	523

Allowance for Uncollectible Accounts

TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period.

To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.

To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.

The allowance for uncollectible accounts was $10 million and less than $1 million at June 30, 2025, and September 30, 2024, respectively, for trade accounts receivable. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one local power company customer ("LPC"). Additionally, loans receivable of $114 million and $105 million at June 30, 2025, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $2 million at both June 30, 2025, and September 30, 2024.

Pre-Commercial Plant Operations

As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on Paradise combustion turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023. TVA also capitalized related fuel costs for this project of $3 million for the nine months ended June 30, 2024, all of which was recognized in the three months ended December

31, 2023. Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during the nine months ended June 30, 2025, and Units 21-25 and 27-30 became operational on May 6, 2025. Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively.

TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively.

Depreciation    

TVA accounts for depreciation of its properties using the composite depreciation convention of accounting. Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years, with the latest study implemented during the first quarter of 2022. Depreciation expense was $484 million and $463 million for the three months ended June 30, 2025 and 2024, respectively. Depreciation expense was $1.4 billion for both the nine months ended June 30, 2025 and 2024. See Note 7 — Plant Closures for a discussion of the impact of plant closures.

Business Description and Basis of Presentation

General

The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") for consolidated interim financial information. Accordingly, TVA's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. As such, they should be read in conjunction with the audited financial statements for the year ended September 30, 2024, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2024 (the "Annual Report"). In the opinion of management, all adjustments (consisting of items of a normal recurring nature) considered necessary for fair presentation are included on the consolidated interim financial statements.

XML

Impact of New Accounting Standards and Interpretations (Text Block)

9 Months Ended

Jun. 30, 2025

Accounting Changes and Error Corrections [Abstract]

Accounting Standards Update and Change in Accounting Principle

Impact of New Accounting Standards and Interpretations     

The following accounting standards or rules have been issued but as of June 30, 2025, were not effective and have not been adopted by TVA:

Improvements to Reportable Segment Disclosures
Description	This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendments and all existing segment disclosures. The amendments are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. Upon adoption, a public entity should apply the amendments retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Annual disclosures to be adopted for the fiscal year ending September 30, 2025 and interim period disclosures to be adopted beginning October 1, 2025.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

Enhancement and Standardization of Climate-Related Disclosures for Investors
Description	In March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors). In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges, in March 2025, the SEC withdrew its legal defense of the rule, and in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule. The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances. If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2027 for non-accelerated filers.
Effective Date for TVA	Fiscal year beginning October 1, 2027.
Effect on the Financial Statements or Other Significant Matters	TVA is currently evaluating the impact of the rule on its disclosures.
Disaggregation of Income Statement Expenses
Description	This guidance improves the disclosures about a public entity's expenses in the notes to the financial statements and requires disclosure of specified information about certain costs and expenses. The amendments require a public entity to disclose, on an annual and interim basis, purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. Specified expenses, gains, or losses that are already disclosed under existing US GAAP are required to be included in the disaggregated income statement expense line item disclosures, and any relevant remaining amounts need to be described qualitatively. Separate disclosures of total selling expenses and an entity’s definition of those expenses are also required. The amendments are effective for public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, a public entity can apply the amendments prospectively or apply them retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Fiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

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Accounts Receivable, Net (Text Block)

9 Months Ended

Jun. 30, 2025

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Accounts Receivable, Net

Accounts Receivable, Net

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:

Accounts Receivable, Net (in millions)
	At June 30, 2025		At September 30, 2024
Power receivables	$	1,791	$	1,683
Other receivables	106		118
Allowance for uncollectible accounts(1)	(10)		—
Accounts receivable, net	$	1,887	$	1,801

Note

(1) To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date, among other considerations. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one LPC customer.

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Inventories, Net (Text Block)

9 Months Ended

Jun. 30, 2025

Inventory, Net [Abstract]

Inventories, Net

Inventories, Net

The table below summarizes the types and amounts of TVA's inventories:

Inventories, Net (in millions)
	At June 30, 2025		At September 30, 2024
Materials and supplies inventory	$	980	$	931
Fuel inventory	280		286
Renewable energy certificates/emissions allowance inventory, net	10		11
Allowance for inventory obsolescence	(86)		(73)
Inventories, net	$	1,184	$	1,155

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Text Block)

9 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Current Assets

Other Current Assets

Other current assets consisted of the following:

Other Current Assets  (in millions)
	At June 30, 2025		At September 30, 2024
Inventory work-in-progress	$	52	$	41
Prepaid software maintenance	33		22
Prepaid insurance	27		19
Current portion of prepaid long-term service agreements	16		7
Commodity contract derivative assets	13		5
Prepaid fees and dues	11		6
Cloud assets	3		13
Other	14		7
Other current assets	$	169	$	120

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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Plant Closures (Text Block)

9 Months Ended

Jun. 30, 2025

Property, Plant and Equipment Impairment or Disposal [Abstract]

Plant Closures Disclosure

Plant Closures

Background

TVA must continuously evaluate all generating assets to ensure an optimal energy portfolio that provides safe, clean, and reliable power while maintaining flexibility and fiscal responsibility to the people of the Tennessee Valley. In January 2023, TVA issued its Record of Decision to retire the two coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028. In April 2024, TVA issued its Record of Decision to retire the nine coal-fired units at Kingston Fossil Plant ("Kingston") by CY 2027. TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental reviews, public input, and TVA Board of Directors ("TVA Board") approval. TVA is also reviewing how recent executive orders impact supply and planning needs related to its coal-fired fleet.

Financial Impact

TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. TVA's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. The cumulative impact approximates $160 million of additional depreciation since January 2023, related to this decision. In addition, TVA's decision to retire the nine units at Kingston is estimated to result in approximately $9 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. The cumulative impact approximates $45 million of additional depreciation since April 2024, related to this decision.

TVA also recognized $12 million and $11 million in operating and maintenance expense during the nine months ended June 30, 2025 and 2024, respectively, related to additional inventory reserves and write-offs related to TVA's coal-fired fleet, including Kingston and Cumberland. Of these amounts, $4 million was recognized during both the three months ended June 30, 2025 and 2024.

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Other Long-Term Assets (Text Block)

9 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Long-Term Assets

Other Long-Term Assets

The table below summarizes the types and amounts of TVA's other long-term assets:

Other Long-Term Assets (in millions)
	At June 30, 2025		At September 30, 2024
Loans and other long-term receivables, net	$	111	$	84
Cloud assets	98		35
Prepaid long-term service agreements	68		62
Prepaid capital assets	67		29
EnergyRight® receivables, net	44		44
Commodity contract derivative assets	17		2
Other	85		88
Total other long-term assets	$	490	$	344

Loans and Other Long-Term Receivables. At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million and $21 million, respectively. Loans receivables are reported net of allowances for uncollectible accounts. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.

The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.

Allowance Components (in millions)
	At June 30, 2025		At September 30, 2024
EnergyRight® loan reserve	$	1	$	1
Economic development loan specific loan reserve	1		1
Total allowance for loan losses	$	2	$	2

Cloud Assets. At June 30, 2025, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $3 million and $13 million, respectively.

Prepaid Long-Term Service Agreements. At June 30, 2025, and September 30, 2024, prepayments of $16 million and $7 million, respectively, were recorded in Other current assets.

EnergyRight® Receivables. In association with the EnergyRight® program, TVA's LPCs offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 11 — Other Long-Term Liabilities for information regarding the associated financing obligation.

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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Regulatory Assets and Liabilities

9 Months Ended

Jun. 30, 2025

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

9.  Regulatory Assets and Liabilities

TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. Components of regulatory assets and regulatory liabilities are summarized in the table below.

Regulatory Assets and Liabilities (in millions)
	At June 30, 2025		At September 30, 2024
Current regulatory assets
Unrealized losses on commodity derivatives	$	22	$	102
Unrealized losses on interest rate derivatives	51		54
Fuel cost adjustment receivable	79		35
Total current regulatory assets	152		191
Non-current regulatory assets
Non-nuclear decommissioning costs	6,135		6,187
Retirement benefit plans deferred costs	1,915		1,979
Nuclear decommissioning costs	276		362
Unrealized losses on interest rate derivatives	321		447
Environmental compliance and remediation costs	313		215
Unrealized losses on commodity derivatives	8		64
Other non-current regulatory assets	169		154
Total non-current regulatory assets	9,137		9,408
Total regulatory assets	$	9,289	$	9,599
Current regulatory liabilities
Fuel cost adjustment tax equivalents	$	189	$	169
Unrealized gains on commodity derivatives	13		5
Total current regulatory liabilities	202		174
Non-current regulatory liabilities
Retirement benefit plans deferred credits	68		81
Unrealized gains on commodity derivatives	17		2
Total non-current regulatory liabilities	85		83
Total regulatory liabilities	$	287	$	257

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Variable Interest Entities

9 Months Ended

Jun. 30, 2025

Text Block [Abstract]

Variable Interest Entity Disclosure

Variable Interest Entities

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.

John Sevier VIEs

In 2012, TVA entered into a $1.0 billion construction management agreement and lease financing arrangement with John Sevier Combined Cycle Generation LLC ("JSCCG") for the completion and lease by TVA of the John Sevier Combined Cycle Facility ("John Sevier CCF"). JSCCG is a special single-purpose limited liability company formed in January 2012 to finance the John Sevier CCF through a $900 million secured note issuance (the "JSCCG notes") and the issuance of $100 million of membership interests subject to mandatory redemption.  The membership interests were purchased by John Sevier Holdco LLC ("Holdco").  Holdco is a special single-purpose entity, also formed in January 2012, established to acquire and hold the membership interests in JSCCG.  A non-controlling interest in Holdco is held by a third party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated. 

The membership interests held by Holdco in JSCCG were purchased with proceeds from the issuance of $100 million of secured notes (the "Holdco notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each January 15 and July 15, with a final payment due in January 2042. The payment dates for the mandatorily redeemable membership interests are the same as those of the Holdco notes. The sale of the JSCCG notes, the membership interests in JSCCG, and the Holdco notes closed in January 2012. The JSCCG notes are secured by TVA's lease payments, and the Holdco notes are secured by Holdco's investment in, and amounts receivable from, JSCCG. TVA's lease payments to JSCCG are equal to and payable on the same dates as JSCCG's and Holdco's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JSCCG and Holdco. Certain agreements related to this transaction contain default and acceleration provisions.

Due to its participation in the design, business activity, and credit and financial support of JSCCG and Holdco, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JSCCG and Holdco and, as such, is required to account for the VIEs on a consolidated basis. Holdco's membership interests in JSCCG are eliminated in consolidation.

Southaven VIE

In 2013, TVA entered into a $400 million lease financing arrangement with Southaven Combined Cycle Generation LLC ("SCCG") for the lease by TVA of the Southaven Combined Cycle Facility ("Southaven CCF"). SCCG is a special single-purpose limited liability company formed in June 2013 to finance the Southaven CCF through a $360 million secured notes issuance (the "SCCG notes") and the issuance of $40 million of membership interests subject to mandatory redemption. The membership interests were purchased by Southaven Holdco LLC ("SHLLC"). SHLLC is a special single-purpose entity, also formed in June 2013, established to acquire and hold the membership interests in SCCG. A non-controlling interest in SHLLC is held by a third party through nominal membership interests, to which none of the income, expenses, and cash flows of SHLLC are allocated.

The membership interests held by SHLLC were purchased with proceeds from the issuance of $40 million of secured notes (the "SHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each February 15 and August 15, with a final payment due on August 15, 2033. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes, and the payment amounts are sufficient to provide returns on, as well as returns of, capital until the investment has been repaid to SHLLC in full. The rate of return on investment to SHLLC is seven percent, which is reflected as interest expense in the Consolidated Statements of Operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC on each lease payment date as agreed in SHLLC's formation documents (the "Seven States Return"). The current and long-term portions of the Membership interests of VIE subject to mandatory redemption are included in Accounts payable and accrued liabilities and Other long-term liabilities, respectively.

The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes. The SCCG notes are secured by TVA's lease payments, and the SHLLC notes are secured by SHLLC's investment in, and amounts receivable from, SCCG. TVA's lease payments to SCCG are payable on the same dates as SCCG's and SHLLC's semi-annual debt service payments and are equal to the sum of (i) the amount of SCCG's semi-annual debt service payments, (ii) the amount of SHLLC's semi-annual debt service payments, and (iii) the amount of the Seven States Return. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by SCCG and SHLLC. Certain agreements related to this transaction contain default and acceleration provisions.

In the event that TVA were to choose to exercise an early buy out feature of the Southaven facility lease, in part or in whole, TVA must pay to SCCG amounts sufficient for SCCG to repay or partially repay on a pro rata basis the membership interests held by SHLLC, including any outstanding investment amount plus accrued but unpaid return. TVA also has the right, at any time and without any early redemption of the other portions of the Southaven facility lease payments due to SCCG, to fully repay SHLLC's investment, upon which repayment SHLLC will transfer the membership interests to a designee of TVA.

TVA participated in the design, business activity, and financial support of SCCG and has determined that it has a direct variable interest in SCCG resulting from risk associated with the value of the Southaven CCF at the end of the lease term. Based on its analysis, TVA has determined that it is the primary beneficiary of SCCG and, as such, is required to account for the VIE on a consolidated basis.

Johnsonville VIE

In October 2024, TVA entered into an $800 million construction management agreement and lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG") for the completion and lease by TVA of the Johnsonville Aeroderivative Combustion Turbine Facility ("Johnsonville Facility"). JACTG is a special single-purpose limited liability company formed in September 2024 to finance the Johnsonville Facility through a $720 million secured note issuance (the "JACTG notes") and the issuance of $80 million of membership interests subject to mandatory redemption. The membership interests were purchased by Johnsonville Holdco LLC ("JHLLC"). JHLLC is a special single-purpose entity, also formed in September 2024, established to acquire and hold the membership interests in JACTG. A non-controlling interest in JHLLC is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated.

The membership interests held by JHLLC in JACTG were purchased with proceeds from the issuance of $80 million of secured notes (the "JHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each April 1 and October 1, with a final payment due in October 2054. The payment dates for the mandatorily redeemable membership interests are the same as those of the JHLLC notes. The sale of the JACTG notes, the membership interests in JACTG, and the JHLLC notes closed in October 2024. The JACTG notes are secured by TVA's lease payments, and the JHLLC notes are secured by JHLLC's investment in, and amounts receivable from, JACTG. TVA's lease payments to JACTG are equal to and payable on the same dates as JACTG's and JHLLC's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JACTG and JHLLC. Certain agreements related to this transaction contain default and acceleration provisions.

Due to its participation in the design, business activity, and credit and financial support of JACTG and JHLLC, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JACTG and JHLLC and, as such, is required to account for the VIEs on a consolidated basis. JHLLC's membership interests in JACTG are eliminated in consolidation.

Impact on Consolidated Financial Statements

The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, and JHLLC at June 30, 2025, and September 30, 2024, as reflected on the Consolidated Balance Sheets, are as follows:

Summary of Impact of VIEs on Consolidated Balance Sheets (in millions)
	At June 30, 2025		At September 30, 2024
Current liabilities
Accrued interest	$	30	$	9
Accounts payable and accrued liabilities	1		1
Current maturities of long-term debt of variable interest entities	48		37
Total current liabilities	79		47
Other liabilities
Other long-term liabilities	15		16
Long-term debt, net
Long-term debt of variable interest entities, net	1,651		897
Total liabilities	$	1,745	$	960

Interest expense of $21 million and $12 million for the three months ended June 30, 2025 and 2024, respectively, and $64 million and $35 million for the nine months ended June 30, 2025 and 2024, respectively, is included in the Consolidated Statements of Operations related to debt of VIEs and membership interests of VIEs subject to mandatory redemption.

Creditors of the VIEs do not have any recourse to the general credit of TVA. TVA does not have any obligations to provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions.

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Other Long-Term Liabilities

9 Months Ended

Jun. 30, 2025

Other Liabilities, Noncurrent [Abstract]

Other Long-Term Liabilities

11.  Other Long-Term Liabilities

Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to environmental compliance and remediation, and long-term project cost accruals. The table below summarizes the types and amounts of Other long-term liabilities:

Other Long-Term Liabilities (in millions)
	At June 30, 2025		At September 30, 2024(1)
Interest rate swap liabilities	$	622	$	792
Environmental compliance and remediation costs	272		212
Long-term project cost accruals	198		140
Currency swap liabilities	85		109
Operating lease liabilities	74		88
EnergyRight® financing obligation	52		52
Long-term deferred compensation	47		50
Long-term deferred revenue	38		48
Accrued long-term service agreements	20		7
Advances for construction	15		55
Commodity contract derivative liabilities	8		64
Other	76		95
Total other long-term liabilities	$	1,507	$	1,712

Note

(1) At September 30, 2024, $7 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Accrued long-term service agreements (a component of Other long-term liabilities) to conform with current year presentation.

Interest Rate Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities.

Environmental Compliance and Remediation Costs. At June 30, 2025, and September 30, 2024, the current amount of the environmental compliance and remediation costs reported in Accounts payable and accrued liabilities was $41 million and $3 million, respectively.

Long-Term Project Cost Accruals. At June 30, 2025, and September 30, 2024, the current amount of the long-term project cost accruals reported in Accounts payable and accrued liabilities was $219 million and $124 million, respectively.

Currency Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities.

Operating Lease Liabilities. At June 30, 2025, and September 30, 2024, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $56 million and $63 million, respectively.

EnergyRight® Financing Obligation. At both June 30, 2025, and September 30, 2024, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $13 million. See Note 8 — Other Long-Term Assets for information regarding the associated loans receivable.

Long-Term Deferred Compensation. At June 30, 2025, and September 30, 2024, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $57 million and $74 million, respectively.

Long-Term Deferred Revenue. At June 30, 2025, and September 30, 2024, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $42 million and $28 million, respectively.

Accrued Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, parts received and services rendered exceed payments made. The current and long-term portions of the resulting obligation are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's

Consolidated Balance Sheets. At June 30, 2025, and September 30, 2024, the current amount of accrued long-term service agreements recorded in Accounts payable and accrued liabilities was $11 million and $16 million, respectively.

Advances for Construction. At June 30, 2025, and September 30, 2024, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $127 million and $60 million, respectively.

Commodity Contract Derivative Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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Asset Retirement Obligations

9 Months Ended

Jun. 30, 2025

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Asset Retirement Obligations

During the nine months ended June 30, 2025, TVA's total asset retirement obligations ("ARO") liability increased $118 million as a result of increases from periodic accretion, partially offset by revisions in estimate and settlements related to retirement projects that were conducted during the period. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During the nine months ended June 30, 2025, $165 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 9 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 15 — Fair Value Measurements — Investment Funds and Note 21 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.

Asset Retirement Obligation Activity (in millions)
	Nuclear		Non-nuclear		Total
Balance at September 30, 2024	$	3,814	$	6,992	$	10,806	(1)
Settlements	(9)		(178)		(187)
Revisions in estimate (non-cash)	2		(24)		(22)
Accretion (recorded as regulatory asset)	130		197		327
Balance at June 30, 2025	$	3,937	$	6,987	$	10,924	(1)

Note

(1) Includes $316 million and $283 million at June 30, 2025, and September 30, 2024, respectively, in Current liabilities.

Revisions in non-nuclear estimates decreased the liability balance by $24 million for the nine months ended June 30, 2025. The decrease was primarily attributable to a change in closure liabilities of $34 million at Paradise Fossil Plant based on scope changes, new vendor bids, and updated cost estimates for activities associated with final closure. The decrease was partially offset by increased revisions in estimates of $16 million related to the final legacy coal combustion residual rule ("Legacy CCR Rule").

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Debt and Other Obligations

9 Months Ended

Jun. 30, 2025

Debt Disclosure [Abstract]

Debt and Other Obligations

Debt and Other Obligations

Debt Outstanding

Total debt outstanding at June 30, 2025, and September 30, 2024, consisted of the following:

Debt Outstanding  (in millions)
	At June 30, 2025		At September 30, 2024
Short-term debt
Short-term debt, net of discounts	$	319	$	1,167
Current maturities of power bonds issued at par	1,370		1,022
Current maturities of long-term debt of VIEs issued at par	48		37
Total current debt outstanding, net	1,737		2,226
Long-term debt
Long-term power bonds(1)	19,389		17,995
Long-term debt of VIEs, net	1,651		897
Unamortized discounts, premiums, issue costs, and other	(160)		(128)
Total long-term debt, net	20,880		18,764
Total debt outstanding	$	22,617	$	20,990

Note

(1) Includes total net exchange gain from currency transactions of $48 million and $62 million at June 30, 2025, and September 30, 2024, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2024, to June 30, 2025:

Debt Securities Activity
	Date	Amount (in millions)
Issues
Debt of variable interest entities	October 2024	$	800
2025 Series A(1)	February 2025	1,250
2025 Series B(2)	May 2025	1,500
Discount on debt issues		(28)
Total long-term debt issues		$	3,522
Redemptions/Maturities(3)
2009 Series B	December 2024	$	1
2020 Series A	May 2025	1,000
2009 Series B	June 2025	21
Total redemptions/maturities of power bonds		1,022
Debt of variable interest entities		23
Total redemptions/maturities of debt		$	1,045

Notes

(1) The 2025 Series A Bonds were issued at 98.517 percent of par.

(2) The 2025 Series B Bonds were issued at 99.360 percent of par.

(3) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA has funding available under four revolving credit facilities totaling $2.7 billion. See the table below for additional information on the four revolving credit facilities. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At June 30, 2025, and September 30, 2024, there were $517 million and $566 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps. See Note 14 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral. TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging Program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit.

The following table provides additional information regarding TVA's funding available under the four revolving credit facilities:

Summary of Credit Facilities At June 30, 2025 (in millions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
March 2026	$	150	$	38	$	—	$	112
September 2026	1,000		71		—		929
March 2027	1,000		194		—		806
February 2028	500		214		—		286
Total	$	2,650	$	517	$	—	$	2,133

TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the Tennessee Valley Authority Act of 1933, as amended ("TVA Act"), have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2025 with a maturity date of September 30, 2025. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been

available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less. There were no outstanding borrowings under the facility at June 30, 2025. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

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Risk Management Activities and Derivative Transactions

9 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk Management Activities and Derivative Transactions

Risk Management Activities and Derivative Transactions

TVA is exposed to various risks related to commodity prices, investment prices, interest rates, currency exchange rates, and inflation as well as counterparty credit and performance risks.  To help manage certain of these risks, TVA has historically entered into various derivative transactions, principally commodity option contracts, forward contracts, swaps, swaptions, futures, and options on futures.  

Overview of Accounting Treatment

TVA recognizes certain of its derivative instruments as either assets or liabilities on its Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of these instruments depends on (1) whether TVA uses regulatory accounting to defer the derivative gains and losses, (2) whether the derivative instrument has been designated and qualifies for hedge accounting treatment, and (3) if so, the type of hedge relationship (for example, cash flow hedge).

The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1)  Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	Objective of Hedge Transaction	Accounting for Derivative Hedging Instrument	2025		2024		2025		2024
Currency swaps	To protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)	Unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) ("AOCI") and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction	$	47	$	1	$	24	$	17

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	2025		2024		2025		2024
Currency swaps	$	38	$	7	$	15	$	20

Note

(1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment Amount of Gain (Loss) Recognized in Income on Derivatives(1) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivative Type	Objective of Derivative	Accounting for Derivative Instrument	2025		2024		2025		2024
Interest rate swaps	To fix short-term debt variable rate to a fixed rate (interest rate risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow	$	(11)	$	(8)	$	(33)	$	(23)
Commodity derivatives under the FHP	To protect against fluctuations in market prices of purchased commodities (price risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)	(13)		(72)		(64)		(227)

Notes

(1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three and nine months ended June 30, 2025 and for the three and nine months ended June 30, 2024.

(2) Of the amount recognized for the three months ended June 30, 2025, $3 million and $10 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2024, $59 million and $13 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2025, $12 million and $52 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2024, $186 million and $41 million were reported in Fuel expense and Purchased power expense, respectively.

Fair Values of TVA Derivatives (in millions)
	At June 30, 2025			At September 30, 2024
Derivatives That Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Currency swaps
£250 million Sterling	$	(35)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(31)	$	(49)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)
£150 million Sterling	(56)		Accounts payable and accrued liabilities $(2); Other long-term liabilities $(54)	(67)		Accounts payable and accrued liabilities $(3); Other long-term liabilities $(64)
Derivatives That Do Not Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Interest rate swaps
$1.0 billion notional	$	(508)	Accounts payable and accrued liabilities $(30); Accrued interest $(8); Other long-term liabilities $(470)	$	(622)	Accounts payable and accrued liabilities $(10); Accrued interest $(26); Other long-term liabilities $(586)
$476 million notional	(165)		Accounts payable and accrued liabilities $(12); Accrued interest $(1); Other long-term liabilities $(152)	(218)		Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(206)
Commodity contract derivatives	1		Other current assets $6; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)	2		Other current assets $5; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)
Commodity derivatives under the FHP	(1)		Other long-term assets $17; Other current assets $7; Accounts payable and accrued liabilities $(19); Other long-term liabilities $(6)	(161)		Accounts payable and accrued liabilities $(99); Other long-term liabilities $(62)

Cash Flow Hedging Strategy for Currency Swaps

To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred.  TVA had two currency swaps outstanding at June 30, 2025, with total currency exposure of £400 million and expiration dates in 2032 and 2043.

When the dollar strengthens against the British pound sterling, the exchange gain on the Bond liability and related accrued interest is offset by an equal amount of loss on the swap contract that is reclassified out of AOCI. Conversely, the exchange loss on the Bond liability and related accrued interest is offset by an equal amount of gain on the swap contract that is reclassified out of AOCI. All such exchange gains or losses on the Bond liability and related accrued interest are included in Long-term debt, net and Accrued interest, respectively. The offsetting exchange losses or gains on the swap contracts are recognized in AOCI. If any gain (loss) were to be incurred as a result of the early termination of the foreign currency swap contract, the resulting income (expense) would be amortized over the remaining life of the associated Bond as a component of Interest expense. The values of the currency swap liabilities are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.

Derivatives Not Receiving Hedge Accounting Treatment

Interest Rate Derivatives.  Generally TVA uses interest rate swaps to fix variable short-term debt to a fixed rate, and TVA uses regulatory accounting treatment to defer the mark-to-market ("MtM") gains and losses on its interest rate swaps. The net deferred unrealized gains and losses are classified as regulatory liabilities or assets on TVA's Consolidated Balance Sheets and are included in the ratemaking formula when gains or losses are realized. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets, and realized gains and losses, if any, are included on TVA's Consolidated Statements of Operations. For the three months ended June 30, 2025 and 2024, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $6 million and $32 million, respectively. For the nine months ended June 30, 2025 and 2024, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $141 million and the increase in unrealized losses of $63 million, respectively. TVA may hold short-term debt balances lower than the notional amount of the interest rate swaps from time to time due to changes in business conditions and other factors. While actual balances vary, TVA generally plans to maintain average balances of short-term debt equal to or in excess of the combined notional amount of the interest rate swaps.

Commodity Derivatives. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA may also enter into power purchase agreements ("PPAs") that provide an option to financially settle contracted power deliveries. This option creates an embedded derivative in the hosting PPA. TVA marks to market these contracts and defers the unrealized gains (losses) as regulatory liabilities (assets). At June 30, 2025, TVA's natural gas contract derivatives had terms of up to 10 years.

Commodity Contract Derivatives
	At June 30, 2025				At September 30, 2024
	Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)
Natural gas contract derivatives	57	412 million mmBtu	$	1	45	321 million mmBtu	$	2

Commodity Derivatives under the FHP. Currently, TVA is hedging exposure to the price of natural gas under the FHP. There is no Value at Risk aggregate transaction limit under the current FHP structure, but the TVA Board reviews and authorizes the use of tolerances and measures annually. TVA's FHP policy prohibits trading financial instruments under the FHP for speculative purposes. At June 30, 2025, TVA's natural gas swap contracts under the FHP had remaining terms of up to five years.

Commodity Derivatives under Financial Hedging Program(1)
	At June 30, 2025					At September 30, 2024
	Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)
Natural gas swap contracts	210	284	million mmBtu	$	(1)	126	230	million mmBtu	$	(161)

Note

(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.

TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity.

Offsetting of Derivative Assets and Liabilities

The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:

Derivative Assets and Liabilities(1) (in millions)
	At June 30, 2025		At September 30, 2024
Assets
Commodity contract derivatives	$	6	$	7
Commodity derivatives under the FHP(2)	24		—
Total derivatives subject to master netting or similar arrangement	$	30	$	7
Liabilities
Currency swaps	$	91	$	116
Interest rate swaps(3)	673		840
Commodity contract derivatives	5		5
Commodity derivatives under the FHP(2)	25		161
Total derivatives subject to master netting or similar arrangement	$	794	$	1,122

Notes

(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either June 30, 2025, or September 30, 2024.

(2) At June 30, 2025, the gross derivative asset and gross derivative liability were $54 million and $55 million, respectively, with offsetting amounts for each totaling $30 million. At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.

(3) Letters of credit of $411 million and $535 million were posted as collateral at June 30, 2025, and September 30, 2024, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.

Other Derivative Instruments

Investment Fund Derivatives.  Investment funds consist primarily of funds held in the Nuclear Decommissioning Trust ("NDT"), the Asset Retirement Trust ("ART"), the Supplemental Executive Retirement Plan ("SERP"), the Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). See Note 15 — Fair Value Measurements — Investment Funds for a discussion of the trusts, plans, and types of investments. The NDT and ART may invest in derivative instruments which may include swaps, futures, options, forwards, and other instruments. At June 30, 2025, and September 30, 2024, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $18 million and $11 million at June 30, 2025, and September 30, 2024, respectively.

Collateral.  TVA's interest rate swaps, currency swaps, and commodity derivatives under the FHP contain contract provisions that require a party to post collateral (in a form such as cash or a letter of credit) when the party's liability balance under the agreement exceeds a certain threshold.  At June 30, 2025, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $794 million.  TVA's collateral obligations at June 30, 2025, under these arrangements were $439 million, for which TVA had posted $411 million in letters of credit. These letters of credit reduce the available balance under the related credit facilities.  TVA's assessment of the risk of its nonperformance includes a reduction in its exposure under the interest rate swap contracts as a result of this posted collateral.

For all of its derivative instruments with credit-risk related contingent features:

•If TVA remains a majority-owned U.S. government entity but S&P Global Ratings ("S&P") or Moody's Investors Service, Inc. ("Moody's") downgrades TVA's credit rating to AA or Aa2, respectively, TVA's collateral obligations would likely increase by $22 million, and

•If TVA ceases to be majority-owned by the U.S. government, TVA's credit rating would likely be downgraded and TVA would be required to post additional collateral.

Counterparty Risk

TVA may be exposed to certain risks when a counterparty has the potential to fail to meet its obligations in accordance with agreed terms. These risks may be related to credit, operational, or nonperformance matters. To mitigate certain counterparty risk, TVA analyzes the counterparty's financial condition prior to entering into an agreement, establishes credit limits, monitors the appropriateness of those limits, as well as any changes in the creditworthiness of the counterparty, on an ongoing basis, and when required, employs credit mitigation measures, such as collateral or prepayment arrangements and

master purchase and sale agreements.

Customers.  TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $1.8 billion and $1.7 billion of receivables from power sales outstanding at June 30, 2025, and September 30, 2024, respectively, nearly all of the counterparties were rated investment grade. The majority of the obligations of these customers that are not investment grade are secured by collateral. TVA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional utilities related to either delivered power or the replacement of open positions of longer-term purchased power or fuel agreements. TVA believes its policies and procedures for counterparty performance risk reviews have generally protected TVA against significant exposure related to market and economic conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts, Note 4 — Accounts Receivable, Net, and Note 8 — Other Long-Term Assets.

TVA had revenue from two LPCs that collectively accounted for 16 percent of total operating revenues for both the nine months ended June 30, 2025 and 2024.

Suppliers.  TVA assesses potential supplier performance risks, including procurement of fuel, purchased power, parts, and services. If suppliers are unable or unwilling to perform under TVA's existing contracts, if TVA is unable to obtain similar services or supplies from other vendors, or if there are significant changes to tariffs impacting suppliers, TVA could experience delays, disruptions, additional costs, or other operational outcomes that may impact generation, maintenance, and capital programs. If certain fuel or purchased power suppliers fail to perform under the terms of their contract with TVA, TVA might lose the money that it paid to the supplier under the contract and have to purchase replacement fuel or power on the spot market, perhaps at a significantly higher price than TVA was entitled to pay under the contract. In addition, TVA might not be able to acquire replacement fuel or power in a timely manner and thus might be unable to satisfy its own obligations to deliver power. TVA continues evaluating potential supplier performance risks and supplier impact but cannot determine or predict the duration of such risks/impacts or the extent to which such risks/impacts could affect TVA's business, operations, and financial results or cause potential business disruptions.

TVA continues to experience impacts due to inflation, supply chain material challenges, and labor availability. This has led to project delays, limited availability, and/or price increases for supplies and labor. TVA has been able to manage these challenges with limited business disruptions at this time; however, should pressures continue long term, TVA could experience more significant disruptions and pressure to further increase power rates.

Natural Gas and Fuel Oil. TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market. TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines. TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions. TVA uses contracts of various lengths and terms to meet the projected natural gas needs of its natural gas fleet. TVA also maintains on-site, fuel oil backup to operate at the majority of the CT sites in the event of major supply disruptions. In the event a supplier experiences an incident that limits its ability to fulfill its firm contractual obligations to supply TVA with natural gas, TVA intends to leverage its storage and balancing services and/or replace the volume with a third party to ensure reliability of generation.

Coal. To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers as of June 30, 2025. The contracted supply of coal is sourced from several geographic regions of the U.S. and is delivered via barge and rail. As a result of emerging technologies, environmental regulations, industry trends, and natural gas market volatility over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios. A long-term continued decline in demand for coal could result in more consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios.

Nuclear Fuel. Nuclear fuel is obtained predominantly through long-term uranium concentrate supply contracts, contracted conversion services, contracted enrichment services, or a combination thereof, and contracted fuel fabrication services. The supply markets for uranium concentrates and certain nuclear fuel services are subject to price fluctuations and availability restrictions. Supply market conditions may make procurement contracts subject to credit risk related to the potential nonperformance of counterparties. In the event of nonperformance by these or other suppliers, TVA believes that replacement uranium concentrate and nuclear fuel services can be obtained, although at prices that may be unfavorable when compared to the prices under the current supply agreements.

Purchased Power. TVA acquires power from a variety of power producers through long-term and short-term PPAs as well as through spot market purchases. Because of the reliability risk of purchased power, TVA requires that the PPAs contain certain counterparty performance assurance requirements to help insure counterparty performance during the term of the agreements.

Other Suppliers. Solar supply chain constraints, commodity price increases, legislative changes, trade policy issues, and investigations into and affecting solar panel imports have created challenges for the U.S. solar industry. TVA's existing solar PPA portfolio is not immune from these challenges. Similar to the experience of the rest of the industry, the majority of TVA's

contracted PPAs from previous requests for proposals that are not yet online have been impacted by project delays and price increases.

Derivative Counterparties.  TVA has entered into physical and financial contracts that are classified as derivatives for hedging purposes, and TVA's NDT, ART, and qualified defined benefit plan ("pension plan") have entered into derivative contracts for investment purposes. If a counterparty to one of the physical or financial derivative transactions defaults, TVA might incur costs in connection with entering into a replacement transaction. If a counterparty to the derivative contracts into which the NDT, the ART, or the pension plan have entered for investment purposes defaults, the value of the investment could decline significantly or perhaps become worthless. TVA has concentrations of credit risk from the banking, coal, and gas industries because multiple companies in these industries serve as counterparties to TVA in various derivative transactions. At June 30, 2025, all of TVA's commodity derivatives under the FHP, currency swaps, and interest rate swaps were with counterparties whose Moody's credit ratings were A2 or higher. TVA classifies forward natural gas contracts as derivatives. At June 30, 2025, the forward natural gas contracts were with counterparties whose ratings ranged from B1 to A1.

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Fair Value Measurements

9 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs.

Valuation Techniques

The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:

Level 1	—	Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2	—	Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3	—	Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.

A financial instrument's level within the fair value hierarchy (where Level 1 is the highest and Level 3 is the lowest) is based on the lowest level of input significant to the fair value measurement.

The following sections describe the valuation methodologies TVA uses to measure different financial instruments at fair value. Except for gains and losses on SERP, DCP, and RP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss). Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements.

Investment Funds

At June 30, 2025, Investment funds were comprised of $5.3 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, DCP, and RP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $3.5 billion and $1.6 billion, respectively, at June 30, 2025.

TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations. The DCP is designed to provide participants with the ability to defer compensation to future periods.

The RP is a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by Internal Revenue Service ("IRS") rules to save additional amounts for retirement and receive non-elective and matching employer contributions. The NDT, ART, SERP, DCP, and RP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance.

The NDT, ART, SERP, DCP, and RP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities, and real estate investment trust securities and certain derivative instruments are measured based on quoted exchange prices in active markets and are classified as Level 1 valuations. Fixed-income investments, high-yield fixed-income investments, currencies, and most derivative instruments are non-exchange traded and are classified as Level 2 valuations. These measurements are based on market and income approaches with observable market inputs. Cash equivalents and other short-term investments are highly liquid securities with maturities of less than three months and 12 months, respectively. These consist primarily of discount securities such as repurchase agreements and U.S. Treasury bills. These securities may be priced at cost, which approximates fair value due to the short-term nature of the instruments. These securities are classified as Level 2. Active market pricing may be utilized for U.S. Treasury bills, which are classified as Level 1.

Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers. These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years. The investment period is generally, at a minimum, 10 years or longer. The NDT had unfunded commitments related to private equity limited partnerships of $368 million, private real assets of $128 million, and private credit of $119 million at June 30, 2025. The ART had unfunded commitments related to limited partnerships in private equity of $143 million, private real assets of $77 million, and private credit of $58 million at June 30, 2025. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. Private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset value ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.

Commingled funds represent investment funds comprising multiple individual financial instruments. The commingled funds held by the NDT, ART, SERP, DCP, and RP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities. All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments. The fair value of commingled funds is based on NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds. These commingled funds can be redeemed at the measurement date NAV and are classified as Commingled funds measured at NAV in the fair value hierarchy.

Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Annual Report and Note 9 — Regulatory Assets and Liabilities. TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:

Unrealized Investment Gains (Losses)(1) (in millions)
		Three Months Ended June 30				Nine Months Ended June 30
Fund	Financial Statement Presentation	2025		2024		2025		2024
NDT	Regulatory assets(2)	$	200	$	(21)	$	133	$	230
ART	Regulatory assets(3)	97		(4)		69		119
SERP	Other income (expense), net	5		—		(1)		9
DCP	Other income (expense), net	2		—		—		2

Notes

(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2025 and for both the three and nine months ended June 30, 2024, and therefore were not represented in the table above.

(2) Includes $41 million and $7 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $12 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

(3) Includes $10 million and $1 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $5 million of unrealized losses and $24 million of unrealized gains related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

Currency and Interest Rate Swap Derivatives

See Note 14 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps. These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments.

Commodity Contract Derivatives and Commodity Derivatives under the FHP

Commodity Contract Derivatives. Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage service. These contracts are classified as Level 2 valuations.

Commodity Derivatives under the FHP. Swap contracts are valued using a pricing model based on New York Mercantile Exchange inputs and are subject to nonperformance risk outside of the exit price. These contracts are classified as Level 2 valuations.

See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP.

Nonperformance Risk

The assessment of nonperformance risk, which includes credit risk, considers changes in current market conditions, readily available information on nonperformance risk, letters of credit, collateral, other arrangements available, and the nature of master netting arrangements. TVA is a counterparty to currency swaps, interest rate swaps, commodity contracts, and other derivatives which subject TVA to nonperformance risk. Nonperformance risk on the majority of investments and certain exchange-traded instruments held by TVA is incorporated into the exit price that is derived from quoted market data that is used to mark the investment to market.

Nonperformance risk for most of TVA's derivative instruments is an adjustment to the initial asset/liability fair value. TVA adjusts for nonperformance risk, both of TVA (for liabilities) and the counterparty (for assets), by applying credit valuation adjustments ("CVAs"). TVA determines an appropriate CVA for each applicable financial instrument based on the term of the instrument and TVA's or the counterparty's credit rating as obtained from Moody's. For companies that do not have an observable credit rating, TVA uses internal analysis to assign a comparable rating to the counterparty. TVA discounts each financial instrument using the historical default rate (as reported by Moody's for CY 1983 to CY 2024) for companies with a similar credit rating over a time period consistent with the remaining term of the contract. The application of CVAs resulted in no change in the fair value of assets and a less than $3 million decrease in the fair value of liabilities at June 30, 2025.

Fair Value Measurements

The following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at June 30, 2025, and September 30, 2024. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels.

Fair Value Measurements At June 30, 2025 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	736	$	—	$	—	$	736
Government debt securities(1)(2)	408		44		—		452
Corporate debt securities(3)	—		379		—		379
Mortgage and asset-backed securities	—		35		—		35
Institutional mutual funds	352		—		—		352
Forward debt securities contracts	—		18		—		18
Cash equivalents and other short-term investments(2)(4)	48		202		—		250
Private equity funds measured at net asset value(5)	—		—		—		868
Private real asset funds measured at net asset value(5)	—		—		—		474
Private credit funds measured at net asset value(5)	—		—		—		267
Commingled funds measured at net asset value(5)	—		—		—		1,446
Total investments	1,544		678		—		5,277
Commodity contract derivatives	—		6		—		6
Commodity derivatives under the FHP	—		24		—		24
Total	$	1,544	$	708	$	—	$	5,307
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	91	$	—	$	91
Interest rate swaps	—		673		—		673
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		25		—		25
Total	$	—	$	794	$	—	$	794

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $408 million of U.S. Treasury securities in Level 1 Government debt securities and $48 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $456 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $98 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $204 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Fair Value Measurements At September 30, 2024 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	770	$	—	$	—	$	770
Government debt securities(1)(2)	400		57		—		457
Corporate debt securities(3)	—		378		—		378
Mortgage and asset-backed securities	—		43		—		43
Institutional mutual funds	342		—		—		342
Forward debt securities contracts	—		11		—		11
Cash equivalents and other short-term investments(2)(4)	95		183		—		278
Private equity funds measured at net asset value(5)	—		—		—		738
Private real asset funds measured at net asset value(5)	—		—		—		432
Private credit funds measured at net asset value(5)	—		—		—		219
Commingled funds measured at net asset value(5)	—		—		—		1,300
Total investments	1,607		672		—		4,968
Commodity contract derivatives	—		7		—		7
Total	$	1,607	$	679	$	—	$	4,975
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	116	$	—	$	116
Interest rate swaps	—		840		—		840
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		161		—		161
Total	$	—	$	1,122	$	—	$	1,122

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $400 million of U.S. Treasury securities in Level 1 Government debt securities and $95 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $495 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $78 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $174 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Other Financial Instruments Not Recorded at Fair Value

TVA uses the methods and assumptions described below to estimate the fair value of each significant class of financial instruments. The fair value of the financial instruments held at June 30, 2025, and September 30, 2024, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption. The estimated values of TVA's financial instruments not recorded at fair value at June 30, 2025, and September 30, 2024, were as follows:

Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions)
		At June 30, 2025				At September 30, 2024
	Valuation Classification	Carrying Amount		Fair Value		Carrying Amount		Fair Value
EnergyRight® receivables, net (including current portion)	Level 2	$	56	$	56	$	56	$	56
Loans and other long-term receivables, net (including current portion)	Level 2	114		108		105		99
EnergyRight® financing obligations (including current portion)	Level 2	65		73		66		74
Membership interests of VIEs subject to mandatory redemption (including current portion)	Level 2	16		18		17		19
Long-term outstanding power bonds, net (including current maturities)	Level 2	20,599		20,483		18,889		19,416
Long-term debt of VIEs, net (including current maturities)	Level 2	1,699		1,693		934		966

The carrying values of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values.

The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable. The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.

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Other Income (Expense), Net

9 Months Ended

Jun. 30, 2025

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Other Income, Net

Income and expenses not related to TVA's operating activities are summarized in the following table:

Other Income, Net (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Interest income	$	10	$	10	$	31	$	30
External services	8		4		22		12
Gains on investments	10		2		8		16
Miscellaneous	1		(2)		(3)		(3)
Total other income, net	$	29	$	14	$	58	$	55

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Benefit Plans

9 Months Ended

Jun. 30, 2025

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

TVA sponsors a pension plan that covers most of its full-time employees hired before July 1, 2014, a qualified defined contribution plan ("401(k) plan") that covers most of its full-time employees, two unfunded post-retirement health care plans that provide for non-vested contributions toward the cost of eligible retirees' medical coverage, other post-employment benefits, such as workers' compensation, the SERP, and the RP. The pension plan and the 401(k) plan are administered by a separate legal entity, the TVA Retirement System ("TVARS"), which is governed by its own board of directors.

The components of net periodic benefit cost for the three and nine months ended June 30, 2025 and 2024, were as follows:

Components of Net Periodic Benefit Cost(1) (in millions)
	For the Three Months Ended June 30								For the Nine Months Ended June 30
	Pension Benefits				Other Post-Retirement Benefits				Pension Benefits				Other Post-Retirement Benefits
	2025		2024		2025		2024		2025		2024		2025		2024
Service cost	$	8	$	7	$	3	$	3	$	24	$	22	$	9	$	8
Interest cost	131		145		3		4		394		434		12		15
Expected return on plan assets	(126)		(123)		—		—		(379)		(370)		—		—
Amortization of prior service credit	(22)		(22)		(4)		(4)		(67)		(67)		(13)		(13)
Recognized net actuarial loss	44		25		—		—		131		75		—		—
Total net periodic benefit cost	35		32		2		3		103		94		8		10
Special/contractual termination benefits(2)	—		—		1		—		—		—		1		—
Total benefit cost	$	35	$	32	$	3	$	3	$	103	$	94	$	9	$	10

Note

(1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations.

(2) Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.

TVA's minimum required pension plan contribution for 2025 is $300 million. TVA contributes $25 million per month to TVARS and as of June 30, 2025, had contributed $225 million. The remaining $75 million will be contributed by September 30, 2025. For the nine months ended June 30, 2025, TVA also contributed $19 million (net of $4 million in rebates) to the other post-retirement plans and $10 million to the SERP. In addition, TVA recognized 401(k) contribution costs of $95 million for the nine months ended June 30, 2025.

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Contingencies and Legal Proceedings

9 Months Ended

Jun. 30, 2025

Commitments and Contingencies Disclosure [Abstract]

Contingencies and Legal Proceedings

21.  Contingencies and Legal Proceedings

Contingencies

Nuclear Insurance.  Section 170 of the Atomic Energy Act, commonly known as the Price-Anderson Act, provides a layered framework of financial protection to compensate for liability claims of members of the public for personal injury and property damages arising from a nuclear incident in the U.S. This financial protection consists of two layers of coverage. The primary level is private insurance underwritten by American Nuclear Insurers and provides public liability insurance coverage of $500 million for each nuclear power plant licensed to operate. If this amount is not sufficient to cover claims arising from a nuclear incident, the second level, Secondary Financial Protection, applies. Within the Secondary Financial Protection level, the licensee of each nuclear reactor has a contingent obligation to pay a retrospective premium, equal to its proportionate share of the loss in excess of the primary level, regardless of proximity to the incident of fault, up to a maximum of approximately $166 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $1.2 billion. This retrospective premium is payable at a maximum rate currently set at approximately $25 million per year per nuclear incident per reactor. Currently, 95 reactors are participating in the Secondary Financial Protection program.

In the event that a nuclear incident results in public liability claims, the primary level provided by American Nuclear Insurers combined with the Secondary Financial Protection should provide up to $16.3 billion in coverage.

Federal law requires that each Nuclear Regulatory Commission ("NRC") power reactor licensee obtain property insurance from private sources to cover the cost of stabilizing and decontaminating a reactor and its station site after an accident. TVA carries property, decommissioning liability, and decontamination liability insurance from Nuclear Electric Insurance Limited ("NEIL") and European Mutual Association for Nuclear Insurance. The limits available for a loss are up to $2.1 billion for two of TVA's nuclear sites and up to $2.8 billion for the remaining site. Some of this insurance may require the payment of retrospective premiums up to a maximum of approximately $122 million.

TVA purchases accidental outage (business interruption) insurance for TVA's nuclear sites from NEIL.  In the event that an accident covered by this policy takes a nuclear unit offline or keeps a nuclear unit offline, NEIL will pay TVA, after a waiting period, an indemnity (a set dollar amount per week) with a maximum indemnity of $490 million per unit.  This insurance policy may require the payment of retrospective premiums up to a maximum of approximately $50 million, but only to the extent the retrospective premium is deemed necessary by the NEIL Board of Directors to pay losses unable to be covered by NEIL's surplus.

Decommissioning Costs.  TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets related primarily to nuclear generating plants, coal-fired generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. See Note 12 — Asset Retirement Obligations.

Nuclear Decommissioning.  Provision for decommissioning costs of nuclear generating units is based on options authorized by the NRC procedures to dismantle and decontaminate the facilities to meet the NRC criteria for license termination. At June 30, 2025, $3.9 billion, representing the discounted value of future estimated nuclear decommissioning costs, was included in nuclear AROs.  The actual decommissioning costs may vary from the derived estimates because of, among other things, changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment.  Utilities that own and operate nuclear plants are required to use different procedures in calculating nuclear decommissioning costs under GAAP than those that are used in calculating nuclear decommissioning costs when reporting to the NRC.  The two sets of procedures produce different estimates for the costs of decommissioning primarily because of differences in the underlying assumptions. TVA bases its nuclear decommissioning estimates on site-specific cost studies. The most recent study was approved and implemented in September 2022. Site-specific cost studies are updated for each of TVA's nuclear units at least every five years.

TVA maintains an NDT to provide funding for the ultimate decommissioning of its nuclear power plants.  See Note 15 — Fair Value Measurements — Investment Funds. TVA monitors the value of its NDT and believes that, over the long term and before cessation of nuclear plant operations and commencement of decommissioning activities, adequate funds from investments and additional contributions, if necessary, will be available to support decommissioning.  TVA's operating nuclear power units are licensed through various dates between 2033 - 2055, depending on the unit.  It may be possible to extend the operating life of some of the units with approval from the NRC. See Note 9 — Regulatory Assets and Liabilities and Note 12 — Asset Retirement Obligations.

Non-nuclear Decommissioning.  At June 30, 2025, $7.0 billion, representing the discounted value of future estimated non-nuclear decommissioning costs, was included in non-nuclear AROs.  This decommissioning cost estimate involves estimating the amount and timing of future expenditures and making judgments concerning whether or not such costs are considered a legal obligation.  Estimating the amount and timing of future expenditures includes, among other things, making projections of the timing and duration of the asset retirement process and how costs will escalate with inflation.  The actual decommissioning costs may vary from the derived estimates because of changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment. TVA updates its underlying assumptions for non-nuclear decommissioning AROs at least every five years. However, material changes in underlying assumptions that impact the amount and timing of undiscounted cash flows are continuously monitored and incorporated into ARO balances in the period identified.

TVA maintains an ART to help fund the ultimate decommissioning of its non-nuclear power assets.  See Note 15 — Fair Value Measurements — Investment Funds. Estimates involved in determining if additional funding will be made to the ART include inflation rate, rate of return projections on the fund investments, and the planned use of other sources to fund decommissioning costs. See Note 9 — Regulatory Assets and Liabilities and Note 12 — Asset Retirement Obligations.

Environmental Matters. TVA's generation activities, like those across the utility industry and in other industrial sectors, are subject to federal, state, and local environmental laws and regulations.  Major areas of regulation affecting TVA's activities include air quality control, greenhouse gas ("GHG") emissions, water quality control, and management and disposal of solid and hazardous wastes.  Regulations in these major areas have become more stringent in recent years and have had a particular emphasis on climate change, renewable generation, and energy efficiency.

TVA has incurred, and expects to continue to incur, substantial capital and operating and maintenance costs to comply with evolving environmental requirements primarily associated with, but not limited to, the operation of TVA's coal-fired and natural gas-fired generating units in general and emissions of pollutants from those units.  Failure to comply with environmental and safety requirements can result in enforcement actions and litigation, which can lead to the imposition of significant civil liability, including fines and penalties, criminal sanctions, and/or temporary or permanent closure of non-compliant facilities. Historical non-compliance can also lead to difficulty in renewing existing permits, as well as difficulty in obtaining permits to bring new generation facilities online. Other obstacles to renewal or permitting of new facilities include a proliferation of non-government organizations seeking to use litigation tools to drive up costs associated with, and delay or prevent permitting of, new fossil fuel facilities and related infrastructure in favor of renewable energy projects.

Compliance with the Environmental Protection Agency's ("EPA") 2015 CCR Rule, as revised ("2015 CCR Rule") required implementation of a groundwater monitoring program, additional engineering, evaluation of authorized closure methods, coordination with certain state authorities, and ongoing analysis at each TVA CCR unit. As further analyses are performed, including evaluation of monitoring results, there is the potential for additional costs for investigation and/or remediation. In addition, on May 8, 2024, EPA published its Legacy CCR Rule, which expands the scope of the existing regulatory requirements of the 2015 CCR Rule to include two additional classes of CCR units: Legacy Surface Impoundments and Coal Combustion Residual Management Units. As a result of the enactment of the final rule, during 2024, TVA recorded additional estimated AROs and recorded a corresponding regulatory asset due to AROs being associated with closed sites and asset retirement costs having been fully depreciated. However, the amounts recorded are subject to various uncertainties, and actual amounts may differ materially based upon a number of factors, including, but not limited to, the outcome of legal challenges to the Legacy CCR Rule, ongoing evaluations of the number and scope of newly regulated units, determinations on final closure requirements and performance standards, and possible changes to the Legacy CCR Rule by EPA.

In May 2024, EPA also published (1) a final rule that establishes more stringent technology-based effluent limitations for four wastewater streams from coal-fired plants, (2) a rule that strengthens and updates the Mercury and Air Toxics Standards for electric generating units to reflect recent developments in control technologies, and (3) a rule that establishes GHG emission guidelines for existing coal-fired plants and GHG performance standards for new natural gas-fired power plants. These rules are all currently being reconsidered by EPA and are also all subject to legal challenges. If these rules move forward as written and the challenges are not successful, TVA would incur substantial costs to comply with the rules.

On March 12, 2025, the EPA Administrator announced that EPA will reconsider 31 rules, including (1) regulations on power plants, (2) Mercury and Air Toxics Standards, (3) steam electric effluent limitation guidelines, (4) National Ambient Air Quality Standards for particulate matter, (5) regulations regarding regional haze, (6) the Good Neighbor Plan, and (7) CCR regulations. TVA cannot predict the outcome of such reevaluations or their impact on TVA's financial results or operations. See Part I, Item 1, Business — Environmental Matters in the Annual Report.

Liability for releases, natural resource damages, and required cleanup of hazardous substances is primarily regulated by the federal Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Resource Conservation and Recovery Act ("RCRA"), and other federal and parallel state statutes.  In a manner similar to many other governmental entities, industries, and power systems, TVA has generated or used hazardous substances over the years. TVA operations at some facilities have resulted in releases of contaminants that TVA has addressed or is addressing consistent with state and federal requirements.  At June 30, 2025, and September 30, 2024, TVA's estimated liability for required cleanup and similar environmental work for those sites for which sufficient information is available to develop a cost estimate was $10 million and $15 million, respectively, on a non-discounted basis, and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Additionally, the potential inclusion of new hazardous substances under CERCLA and RCRA jurisdiction could significantly affect TVA's future liability for remediating historical releases.

In August 2015, the Tennessee Department of Environment and Conservation ("TDEC") issued an order that includes an iterative process through which TVA and TDEC will identify and evaluate any CCR contamination risks and, if necessary, respond to such risks. TVA is also following a similar process pursuant to a consent order. At June 30, 2025, and September 30, 2024, TVA's estimated liability for costs associated with environmental remediation activities for the sites covered by these orders for which sufficient information is available to develop a cost estimate was approximately $313 million and $215 million, respectively, on a non-discounted basis and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. The current estimated time frame for work related to these remediation activities for which TVA has a cost estimate is through 2044.

Legal Proceedings

From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting TVA's activities. There have been no material changes to the Legal Proceedings described in Note 22 — Commitments and Contingencies — Legal Proceedings of the Annual Report, except as described below.

Case Involving Johnsonville Aeroderivative Combustion Turbine Project. On December 22, 2022, the Southern Environmental Law Center filed a lawsuit in the U.S. District Court for the Middle District of Tennessee on behalf of the Sierra Club, alleging that TVA violated the National Environmental Policy Act ("NEPA") in deciding to build a new aeroderivative combustion turbine project at its Johnsonville facility. Both parties moved for summary judgment, and on September 30, 2024, the court granted TVA's motion for summary judgment and dismissed the lawsuit. The Sierra Club did not file an appeal within 60 days from the date of the decision, so this litigation has now ended. See Note 22 — Commitments and Contingencies — Legal Proceedings — Case Involving Johnsonville Aeroderivative Combustion Turbine Project in the Annual Report.

Case Involving Kingston Gas-Fired Plant. On October 10, 2024, Appalachian Voices, the Center for Biological Diversity, and the Sierra Club filed a lawsuit in the U.S. District Court for the Eastern District of Tennessee alleging that TVA violated NEPA and TVA's least-cost planning obligations in deciding to build a gas plant at its Kingston Facility. TVA filed its answer on December 16, 2024. The plaintiffs filed a motion to compete the administrative record on June 30, 2025. TVA cannot predict the outcome of this litigation. See Note 22 — Commitments and Contingencies — Legal Proceedings — Case Involving Kingston Gas-Fired Plant in the Annual Report.

Challenge to Kingston Construction Permit. On December 16, 2024, the Southern Environmental Law Center filed an appeal on behalf of Appalachian Voices challenging the construction permit that the Technical Secretary acting on behalf of the Tennessee Air Pollution Control Board issued to TVA on November 15, 2024, for the construction of natural gas generation at Kingston. Appalachian Voices alleges that TDEC unlawfully issued a construction permit that would allow TVA to construct the plant without meeting the requirements set forth in the Tennessee Air Quality Act's and Federal Clean Air Act’s Prevention of Significant Deterioration program. Among other things, Appalachian Voices is requesting that the Tennessee Air Pollution Control Board stay the effectiveness of the permit and order TDEC to revoke the permit. On January 7, 2025, TVA filed a petition to intervene in the administrative proceeding, which was granted on January 15, 2025. The parties filed competing motions for summary judgement on March 14, 2025, and oral argument on these motions was held on June 24, 2025. TVA cannot predict the outcome of this litigation.

Challenge to Certificate for Cumberland Pipeline. On April 29, 2024, the Southern Environmental Law Center, on behalf of the Sierra Club and Appalachian Voices, filed a petition with the United States Court of Appeals for the District of Columbia Circuit ("D.C. Circuit") challenging the Federal Energy Regulatory Commission's ("FERC’s") issuance of a certificate of public convenience for the pipeline that will need to be constructed in order for TVA to operate the Cumberland Combined Cycle Plant (the “Cumberland Pipeline”). The petitioners allege that they and their members have been and will be aggrieved by the approval, construction, and operation of the Cumberland Pipeline and are asking the D.C. Circuit to review and set aside FERC’s order approving the pipeline. The D.C. Circuit heard oral arguments on the merits on March 4, 2025, but has not yet issued a ruling. TVA, the Tennessee Valley Public Power Association, and Tennessee Gas Pipeline Company, L.L.C., which has contracted with TVA to build and operate the pipeline, have intervened in the proceeding. TVA cannot predict the outcome of this litigation.

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Revenue (Notes)

9 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue

Revenue from Sales of Electricity

TVA's revenue from contracts with customers is primarily derived from the generation and sale of electricity to its customers and is included in Revenue from sales of electricity on the Consolidated Statements of Operations. Electricity is sold primarily to LPCs for distribution to their end-use customers. In addition, TVA sells electricity to directly served industrial companies, federal agencies, and others.

LPC sales

Approximately 91 percent and 92 percent of TVA's Revenue from sales of electricity for the three and nine months ended June 30, 2025, and the three and nine months ended June 30, 2024, respectively, was from LPCs, which then distribute the power to their customers using their own distribution systems. Power is delivered to each LPC at delivery points within the LPC's service territory. TVA recognizes revenue when the customer takes possession of the power at the delivery point. For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Credits are designed to achieve objectives of the TVA Act and include items such as hydro preference credits for residential customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.

Directly served customers

Directly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.

Other Revenue

Other revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, Renewable Energy Certificate sales, and certain other ancillary goods or services.

Disaggregated Revenues

During the three and nine months ended June 30, 2025, revenues generated from TVA's electricity sales were $3.3 billion and $9.6 billion, respectively, and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues By State (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Alabama	$	477	$	409	$	1,428	$	1,274
Georgia	74		65		242		214
Kentucky	209		179		605		557
Mississippi	310		277		886		816
North Carolina	18		19		67		70
Tennessee	2,161		1,869		6,345		5,685
Virginia	11		10		39		35
Subtotal	3,260		2,828		9,612		8,651
Off-system sales	2		2		4		6
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

TVA's operating revenues by customer type for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues by Customer Type (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Revenue from sales of electricity
Local power companies	$	2,967	$	2,596	$	8,782	$	7,925
Industries directly served	259		205		734		642
Federal agencies and other	36		29		100		90
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a partnership agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA’s failure to limit rate increases to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the agreements. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. The total wholesale bill credits to LPCs participating in the Partnership Agreement were $53 million and $51 million for the three months ended June 30, 2025 and 2024, respectively. The total wholesale bill credits to LPCs participating in the Partnership Agreement were $164 million and $152 million for the nine months ended June 30, 2025 and 2024, respectively. In 2020, TVA

provided participating LPCs a flexibility option, named Generation Flexibility, that allows them to locally generate or purchase up to approximately five percent of their average total hourly energy sales over a certain time period in order to meet their individual customers' needs. Revised flexibility agreements were made available to LPCs in 2023 which permit projects to be located anywhere in TVA's service area, either connected to the LPC distribution system or TVA's transmission system, and make it easier for LPCs to partner in projects. As of June 30, 2025, 148 LPCs had signed the Partnership Agreement with TVA, and 107 LPCs had signed a Power Supply Flexibility Agreement.

The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three and nine months ended June 30, 2025, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the tables below:

TVA Local Power Company Contracts At or for the Three Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	2,541	76.9	%
5-year termination notice	5	426		12.9	%
Total	153	$	2,967	89.8	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

TVA Local Power Company Contracts At or for the Nine Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	7,612	78.0	%
5-year termination notice	5	1,170		12.0	%
Total	153	$	8,782	90.0	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively. Sales to MLGW and NES each accounted for eight percent of TVA's total operating revenues for both the nine months ended June 30, 2025 and the nine months ended June 30, 2024.

Contract Balances

Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA did not have any material contract assets at June 30, 2025.

Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers. These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation. See Economic Development Incentives below and Note 11 — Other Long-Term Liabilities — Long-Term Deferred Revenue.

Economic Development Incentives. Under certain economic development programs, TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley. TVA records those incentives as reductions of revenue. Incentives recorded as a reduction to revenue were $80 million for both the three months ended June 30, 2025 and 2024. Incentives recorded as a reduction to revenue were $248 million and $233 million for the nine months ended June 30, 2025 and 2024, respectively. Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At June 30, 2025, and September 30, 2024, the outstanding unpaid incentives were $197 million and $187 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements.

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Research and Development

9 Months Ended

Jun. 30, 2025

Research and Development [Abstract]

Collaborative Arrangement Disclosure

20. Collaborative Arrangement

In 2023, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Hitachi Nuclear Energy ("GEH") entered into a multi-party collaborative arrangement to advance the global deployment of the GEH BWRX-300 small modular reactor. GEH is responsible for standard design development. Under the agreement, TVA will contribute up to $93 million for design costs incurred by GEH through 2026. At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits.

Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred. TVA recorded no expenses related to this agreement for the three months ended June 30, 2025 and $12 million of expenses for the three months ended June 30, 2024. TVA recorded $10 million and $29 million of expenses related to this agreement for the nine months ended June 30, 2025 and 2024, respectively. TVA also had a $6 million letter of credit posted under this arrangement at June 30, 2025.

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Restructuring and Related Activities

9 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure

Restructuring

TVA’s demand continues to grow, driving the need for significant future capital investment. TVA must continue to drive efficiencies and cost savings across the enterprise to provide affordable, reliable electricity, while funding the capital investment needed to meet growing demand. This effort has evolved into an Enterprise Transformation Program ("ETP") focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through supply chain, and making the workforce more efficient. As part of these efforts, certain employees are eligible for severance payments. These amounts are recognized in Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred. Severance costs that have been incurred but not paid are included in Accounts payable and accrued liabilities on TVA's Consolidated Balance Sheets. The table below summarizes the activity related to severance costs:

Severance Cost Liability Activity (in millions)
Severance cost liability at September 30, 2024	$	—
Liabilities incurred during the period	40
Actual costs paid during the period	(26)
Severance cost liability at June 30, 2025	$	14

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Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended	9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Mar. 31, 2024	Jun. 30, 2025	Jun. 30, 2024
Pay vs Performance Disclosure
Net income (loss)	$ 212	$ 181	$ 615	$ 745	$ 615

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Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2025
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Significant Accounting Policies (Policies)

9 Months Ended

Jun. 30, 2025

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying consolidated interim financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 10 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Cash, Cash Equivalents, and Restricted Cash

Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:

Cash, Cash Equivalents, and Restricted Cash (in millions)
	At June 30, 2025		At September 30, 2024
Cash and cash equivalents	$	501	$	502
Restricted cash and cash equivalents included in Other long-term assets	21		21
Total cash, cash equivalents, and restricted cash	$	522	$	523

Allowance for Uncollectible Accounts

Allowance for Uncollectible Accounts

TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period.

To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.

To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.

The allowance for uncollectible accounts was $10 million and less than $1 million at June 30, 2025, and September 30, 2024, respectively, for trade accounts receivable. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one local power company customer ("LPC"). Additionally, loans receivable of $114 million and $105 million at June 30, 2025, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $2 million at both June 30, 2025, and September 30, 2024.

Depreciation

Depreciation    

TVA accounts for depreciation of its properties using the composite depreciation convention of accounting. Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years, with the latest study implemented during the first quarter of 2022. Depreciation expense was $484 million and $463 million for the three months ended June 30, 2025 and 2024, respectively. Depreciation expense was $1.4 billion for both the nine months ended June 30, 2025 and 2024. See Note 7 — Plant Closures for a discussion of the impact of plant closures.

Use of Estimates

Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where

changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.

Fiscal Period, Policy

Fiscal Year

TVA's fiscal year ends September 30.  Years (2025, 2024, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Pre-Commercial Plant Operations

Pre-Commercial Plant Operations

As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on Paradise combustion turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023. TVA also capitalized related fuel costs for this project of $3 million for the nine months ended June 30, 2024, all of which was recognized in the three months ended December

31, 2023. Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during the nine months ended June 30, 2025, and Units 21-25 and 27-30 became operational on May 6, 2025. Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively.

TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively.

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Accounting Changes and Error Corrections (Policies)

9 Months Ended

Jun. 30, 2025

Accounting Changes and Error Corrections [Abstract]

Impact of New Accounting Standards and Interpretations

The following accounting standards or rules have been issued but as of June 30, 2025, were not effective and have not been adopted by TVA:

Improvements to Reportable Segment Disclosures
Description	This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments require a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendments and all existing segment disclosures. The amendments are effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. Upon adoption, a public entity should apply the amendments retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Annual disclosures to be adopted for the fiscal year ending September 30, 2025 and interim period disclosures to be adopted beginning October 1, 2025.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

Enhancement and Standardization of Climate-Related Disclosures for Investors
Description	In March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors). In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges, in March 2025, the SEC withdrew its legal defense of the rule, and in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule. The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances. If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2027 for non-accelerated filers.
Effective Date for TVA	Fiscal year beginning October 1, 2027.
Effect on the Financial Statements or Other Significant Matters	TVA is currently evaluating the impact of the rule on its disclosures.
Disaggregation of Income Statement Expenses
Description	This guidance improves the disclosures about a public entity's expenses in the notes to the financial statements and requires disclosure of specified information about certain costs and expenses. The amendments require a public entity to disclose, on an annual and interim basis, purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. Specified expenses, gains, or losses that are already disclosed under existing US GAAP are required to be included in the disaggregated income statement expense line item disclosures, and any relevant remaining amounts need to be described qualitatively. Separate disclosures of total selling expenses and an entity’s definition of those expenses are also required. The amendments are effective for public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, a public entity can apply the amendments prospectively or apply them retrospectively to all prior periods presented in the financial statements.
Effective Date for TVA	Fiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant Matters	The adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows.

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies)	9 Months Ended
	Jun. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Derivatives, Methods of Accounting, Hedging Derivatives	Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies)

9 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Financing Receivable

Loans and Other Long-Term Receivables. At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million and $21 million, respectively. Loans receivables are reported net of allowances for uncollectible accounts. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.

The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.

Allowance Components (in millions)
	At June 30, 2025		At September 30, 2024
EnergyRight® loan reserve	$	1	$	1
Economic development loan specific loan reserve	1		1
Total allowance for loan losses	$	2	$	2

Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy

EnergyRight® Receivables. In association with the EnergyRight® program, TVA's LPCs offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 11 — Other Long-Term Liabilities for information regarding the associated financing obligation.

Credit Loss, Financial Instrument

Allowance Components (in millions)
	At June 30, 2025		At September 30, 2024
EnergyRight® loan reserve	$	1	$	1
Economic development loan specific loan reserve	1		1
Total allowance for loan losses	$	2	$	2

Service Agreements

Prepaid Long-Term Service Agreements. At June 30, 2025, and September 30, 2024, prepayments of $16 million and $7 million, respectively, were recorded in Other current assets.

Goodwill and Intangible Assets, Intangible Assets, Policy

Cloud Assets. At June 30, 2025, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $3 million and $13 million, respectively.

Commodity contract derivative asset

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

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Variable Interest Entities (Policies)

9 Months Ended

Jun. 30, 2025

Text Block [Abstract]

Consolidation, Variable Interest Entity, Policy

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.

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Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Tables)

9 Months Ended

Jun. 30, 2025

Cash and Cash Equivalents [Abstract]

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:

Cash, Cash Equivalents, and Restricted Cash (in millions)
	At June 30, 2025		At September 30, 2024
Cash and cash equivalents	$	501	$	502
Restricted cash and cash equivalents included in Other long-term assets	21		21
Total cash, cash equivalents, and restricted cash	$	522	$	523

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Accounts Receivable, Net (Tables)

9 Months Ended

Jun. 30, 2025

Accounts Receivable, after Allowance for Credit Loss [Abstract]

Accounts Receivable, Net

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:

Accounts Receivable, Net (in millions)
	At June 30, 2025		At September 30, 2024
Power receivables	$	1,791	$	1,683
Other receivables	106		118
Allowance for uncollectible accounts(1)	(10)		—
Accounts receivable, net	$	1,887	$	1,801

Note

(1) To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date, among other considerations. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one LPC customer.

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Inventories, Net (Tables)

9 Months Ended

Jun. 30, 2025

Inventory, Net [Abstract]

Inventories, Net

The table below summarizes the types and amounts of TVA's inventories:

Inventories, Net (in millions)
	At June 30, 2025		At September 30, 2024
Materials and supplies inventory	$	980	$	931
Fuel inventory	280		286
Renewable energy certificates/emissions allowance inventory, net	10		11
Allowance for inventory obsolescence	(86)		(73)
Inventories, net	$	1,184	$	1,155

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)

9 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Schedule of Other Current Assets

Other current assets consisted of the following:

Other Current Assets  (in millions)
	At June 30, 2025		At September 30, 2024
Inventory work-in-progress	$	52	$	41
Prepaid software maintenance	33		22
Prepaid insurance	27		19
Current portion of prepaid long-term service agreements	16		7
Commodity contract derivative assets	13		5
Prepaid fees and dues	11		6
Cloud assets	3		13
Other	14		7
Other current assets	$	169	$	120

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Other Long-Term Assets (Tables)

9 Months Ended

Jun. 30, 2025

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Long-Term Assets

The table below summarizes the types and amounts of TVA's other long-term assets:

Other Long-Term Assets (in millions)
	At June 30, 2025		At September 30, 2024
Loans and other long-term receivables, net	$	111	$	84
Cloud assets	98		35
Prepaid long-term service agreements	68		62
Prepaid capital assets	67		29
EnergyRight® receivables, net	44		44
Commodity contract derivative assets	17		2
Other	85		88
Total other long-term assets	$	490	$	344

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Regulatory Assets and Liabilities (Tables)

9 Months Ended

Jun. 30, 2025

Regulatory Assets and Liabilities Disclosure [Abstract]

Regulatory Assets and Liabilities

Components of regulatory assets and regulatory liabilities are summarized in the table below.

Regulatory Assets and Liabilities (in millions)
	At June 30, 2025		At September 30, 2024
Current regulatory assets
Unrealized losses on commodity derivatives	$	22	$	102
Unrealized losses on interest rate derivatives	51		54
Fuel cost adjustment receivable	79		35
Total current regulatory assets	152		191
Non-current regulatory assets
Non-nuclear decommissioning costs	6,135		6,187
Retirement benefit plans deferred costs	1,915		1,979
Nuclear decommissioning costs	276		362
Unrealized losses on interest rate derivatives	321		447
Environmental compliance and remediation costs	313		215
Unrealized losses on commodity derivatives	8		64
Other non-current regulatory assets	169		154
Total non-current regulatory assets	9,137		9,408
Total regulatory assets	$	9,289	$	9,599
Current regulatory liabilities
Fuel cost adjustment tax equivalents	$	189	$	169
Unrealized gains on commodity derivatives	13		5
Total current regulatory liabilities	202		174
Non-current regulatory liabilities
Retirement benefit plans deferred credits	68		81
Unrealized gains on commodity derivatives	17		2
Total non-current regulatory liabilities	85		83
Total regulatory liabilities	$	287	$	257

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Variable Interest Entities (Tables)

9 Months Ended

Jun. 30, 2025

Text Block [Abstract]

Schedule of Variable Interest Entities

The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, and JHLLC at June 30, 2025, and September 30, 2024, as reflected on the Consolidated Balance Sheets, are as follows:

Summary of Impact of VIEs on Consolidated Balance Sheets (in millions)
	At June 30, 2025		At September 30, 2024
Current liabilities
Accrued interest	$	30	$	9
Accounts payable and accrued liabilities	1		1
Current maturities of long-term debt of variable interest entities	48		37
Total current liabilities	79		47
Other liabilities
Other long-term liabilities	15		16
Long-term debt, net
Long-term debt of variable interest entities, net	1,651		897
Total liabilities	$	1,745	$	960

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Other Long-Term Liabilities (Tables)

9 Months Ended

Jun. 30, 2025

Other Liabilities, Noncurrent [Abstract]

Other Long-Term Liabilities

The table below summarizes the types and amounts of Other long-term liabilities:

Other Long-Term Liabilities (in millions)
	At June 30, 2025		At September 30, 2024(1)
Interest rate swap liabilities	$	622	$	792
Environmental compliance and remediation costs	272		212
Long-term project cost accruals	198		140
Currency swap liabilities	85		109
Operating lease liabilities	74		88
EnergyRight® financing obligation	52		52
Long-term deferred compensation	47		50
Long-term deferred revenue	38		48
Accrued long-term service agreements	20		7
Advances for construction	15		55
Commodity contract derivative liabilities	8		64
Other	76		95
Total other long-term liabilities	$	1,507	$	1,712

Note

(1) At September 30, 2024, $7 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Accrued long-term service agreements (a component of Other long-term liabilities) to conform with current year presentation.

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Asset Retirement Obligations (Tables)

9 Months Ended

Jun. 30, 2025

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligation Activity

Asset Retirement Obligation Activity (in millions)
	Nuclear		Non-nuclear		Total
Balance at September 30, 2024	$	3,814	$	6,992	$	10,806	(1)
Settlements	(9)		(178)		(187)
Revisions in estimate (non-cash)	2		(24)		(22)
Accretion (recorded as regulatory asset)	130		197		327
Balance at June 30, 2025	$	3,937	$	6,987	$	10,924	(1)

Note

(1) Includes $316 million and $283 million at June 30, 2025, and September 30, 2024, respectively, in Current liabilities.

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Debt and Other Obligations (Tables)

9 Months Ended

Jun. 30, 2025

Debt Disclosure [Abstract]

Debt Outstanding

Total debt outstanding at June 30, 2025, and September 30, 2024, consisted of the following:

Debt Outstanding  (in millions)
	At June 30, 2025		At September 30, 2024
Short-term debt
Short-term debt, net of discounts	$	319	$	1,167
Current maturities of power bonds issued at par	1,370		1,022
Current maturities of long-term debt of VIEs issued at par	48		37
Total current debt outstanding, net	1,737		2,226
Long-term debt
Long-term power bonds(1)	19,389		17,995
Long-term debt of VIEs, net	1,651		897
Unamortized discounts, premiums, issue costs, and other	(160)		(128)
Total long-term debt, net	20,880		18,764
Total debt outstanding	$	22,617	$	20,990

Note

(1) Includes total net exchange gain from currency transactions of $48 million and $62 million at June 30, 2025, and September 30, 2024, respectively.

Debt Securities Activity

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2024, to June 30, 2025:

Debt Securities Activity
	Date	Amount (in millions)
Issues
Debt of variable interest entities	October 2024	$	800
2025 Series A(1)	February 2025	1,250
2025 Series B(2)	May 2025	1,500
Discount on debt issues		(28)
Total long-term debt issues		$	3,522
Redemptions/Maturities(3)
2009 Series B	December 2024	$	1
2020 Series A	May 2025	1,000
2009 Series B	June 2025	21
Total redemptions/maturities of power bonds		1,022
Debt of variable interest entities		23
Total redemptions/maturities of debt		$	1,045

Notes

(1) The 2025 Series A Bonds were issued at 98.517 percent of par.

(2) The 2025 Series B Bonds were issued at 99.360 percent of par.

(3) All redemptions were at 100 percent of par.

Summary of Long-Term Credit Facilities

Summary of Credit Facilities At June 30, 2025 (in millions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
March 2026	$	150	$	38	$	—	$	112
September 2026	1,000		71		—		929
March 2027	1,000		194		—		806
February 2028	500		214		—		286
Total	$	2,650	$	517	$	—	$	2,133

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Risk Management Activities and Derivative Transactions (Tables)

9 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments That Receive Hedge Accounting Treatment

The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1)  Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	Objective of Hedge Transaction	Accounting for Derivative Hedging Instrument	2025		2024		2025		2024
Currency swaps	To protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)	Unrealized gains and losses are recorded in Accumulated other comprehensive income (loss) ("AOCI") and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction	$	47	$	1	$	24	$	17

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship	2025		2024		2025		2024
Currency swaps	$	38	$	7	$	15	$	20

Note

(1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

^[1]

Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment

Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment Amount of Gain (Loss) Recognized in Income on Derivatives(1) (in millions)
			Three Months Ended June 30				Nine Months Ended June 30
Derivative Type	Objective of Derivative	Accounting for Derivative Instrument	2025		2024		2025		2024
Interest rate swaps	To fix short-term debt variable rate to a fixed rate (interest rate risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow	$	(11)	$	(8)	$	(33)	$	(23)
Commodity derivatives under the FHP	To protect against fluctuations in market prices of purchased commodities (price risk)	Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)	(13)		(72)		(64)		(227)

Notes

(1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three and nine months ended June 30, 2025 and for the three and nine months ended June 30, 2024.

(2) Of the amount recognized for the three months ended June 30, 2025, $3 million and $10 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2024, $59 million and $13 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2025, $12 million and $52 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2024, $186 million and $41 million were reported in Fuel expense and Purchased power expense, respectively.

Fair Value of TVA Derivatives

Fair Values of TVA Derivatives (in millions)
	At June 30, 2025			At September 30, 2024
Derivatives That Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Currency swaps
£250 million Sterling	$	(35)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(31)	$	(49)	Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)
£150 million Sterling	(56)		Accounts payable and accrued liabilities $(2); Other long-term liabilities $(54)	(67)		Accounts payable and accrued liabilities $(3); Other long-term liabilities $(64)
Derivatives That Do Not Receive Hedge Accounting Treatment:
	Balance		Balance Sheet Presentation	Balance		Balance Sheet Presentation
Interest rate swaps
$1.0 billion notional	$	(508)	Accounts payable and accrued liabilities $(30); Accrued interest $(8); Other long-term liabilities $(470)	$	(622)	Accounts payable and accrued liabilities $(10); Accrued interest $(26); Other long-term liabilities $(586)
$476 million notional	(165)		Accounts payable and accrued liabilities $(12); Accrued interest $(1); Other long-term liabilities $(152)	(218)		Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(206)
Commodity contract derivatives	1		Other current assets $6; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)	2		Other current assets $5; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(2)
Commodity derivatives under the FHP	(1)		Other long-term assets $17; Other current assets $7; Accounts payable and accrued liabilities $(19); Other long-term liabilities $(6)	(161)		Accounts payable and accrued liabilities $(99); Other long-term liabilities $(62)

Commodity Contract Derivatives

Commodity Contract Derivatives
	At June 30, 2025				At September 30, 2024
	Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount	Fair Value (MtM) (in millions)
Natural gas contract derivatives	57	412 million mmBtu	$	1	45	321 million mmBtu	$	2

Offsetting Assets and Liabilities

The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:

Derivative Assets and Liabilities(1) (in millions)
	At June 30, 2025		At September 30, 2024
Assets
Commodity contract derivatives	$	6	$	7
Commodity derivatives under the FHP(2)	24		—
Total derivatives subject to master netting or similar arrangement	$	30	$	7
Liabilities
Currency swaps	$	91	$	116
Interest rate swaps(3)	673		840
Commodity contract derivatives	5		5
Commodity derivatives under the FHP(2)	25		161
Total derivatives subject to master netting or similar arrangement	$	794	$	1,122

Notes

(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either June 30, 2025, or September 30, 2024.

(2) At June 30, 2025, the gross derivative asset and gross derivative liability were $54 million and $55 million, respectively, with offsetting amounts for each totaling $30 million. At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.

(3) Letters of credit of $411 million and $535 million were posted as collateral at June 30, 2025, and September 30, 2024, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.

Schedule of Derivative Instruments Commodity Contracts Under FHP

Commodity Derivatives under Financial Hedging Program(1)
	At June 30, 2025					At September 30, 2024
	Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)		Number of Contracts	Notional Amount		Fair Value (MtM) (in millions)
Natural gas swap contracts	210	284	million mmBtu	$	(1)	126	230	million mmBtu	$	(161)

Note

(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.

[1] There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

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Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Valuation Techniques

The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:

Level 1	—	Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2	—	Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3	—	Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.

Unrealized Investment Gains (Losses)

TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:

Unrealized Investment Gains (Losses)(1) (in millions)
		Three Months Ended June 30				Nine Months Ended June 30
Fund	Financial Statement Presentation	2025		2024		2025		2024
NDT	Regulatory assets(2)	$	200	$	(21)	$	133	$	230
ART	Regulatory assets(3)	97		(4)		69		119
SERP	Other income (expense), net	5		—		(1)		9
DCP	Other income (expense), net	2		—		—		2

Notes

(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2025 and for both the three and nine months ended June 30, 2024, and therefore were not represented in the table above.

(2) Includes $41 million and $7 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $12 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

(3) Includes $10 million and $1 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $5 million of unrealized losses and $24 million of unrealized gains related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.

Fair Value Measurements

Fair Value Measurements At June 30, 2025 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	736	$	—	$	—	$	736
Government debt securities(1)(2)	408		44		—		452
Corporate debt securities(3)	—		379		—		379
Mortgage and asset-backed securities	—		35		—		35
Institutional mutual funds	352		—		—		352
Forward debt securities contracts	—		18		—		18
Cash equivalents and other short-term investments(2)(4)	48		202		—		250
Private equity funds measured at net asset value(5)	—		—		—		868
Private real asset funds measured at net asset value(5)	—		—		—		474
Private credit funds measured at net asset value(5)	—		—		—		267
Commingled funds measured at net asset value(5)	—		—		—		1,446
Total investments	1,544		678		—		5,277
Commodity contract derivatives	—		6		—		6
Commodity derivatives under the FHP	—		24		—		24
Total	$	1,544	$	708	$	—	$	5,307
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	91	$	—	$	91
Interest rate swaps	—		673		—		673
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		25		—		25
Total	$	—	$	794	$	—	$	794

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $408 million of U.S. Treasury securities in Level 1 Government debt securities and $48 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $456 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $98 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $204 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Fair Value Measurements At September 30, 2024 (in millions)
	Quoted Prices in Active  Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets
Investments
Equity securities	$	770	$	—	$	—	$	770
Government debt securities(1)(2)	400		57		—		457
Corporate debt securities(3)	—		378		—		378
Mortgage and asset-backed securities	—		43		—		43
Institutional mutual funds	342		—		—		342
Forward debt securities contracts	—		11		—		11
Cash equivalents and other short-term investments(2)(4)	95		183		—		278
Private equity funds measured at net asset value(5)	—		—		—		738
Private real asset funds measured at net asset value(5)	—		—		—		432
Private credit funds measured at net asset value(5)	—		—		—		219
Commingled funds measured at net asset value(5)	—		—		—		1,300
Total investments	1,607		672		—		4,968
Commodity contract derivatives	—		7		—		7
Total	$	1,607	$	679	$	—	$	4,975
	Quoted Prices in Active Markets for Identical Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Liabilities
Currency swaps(6)	$	—	$	116	$	—	$	116
Interest rate swaps	—		840		—		840
Commodity contract derivatives	—		5		—		5
Commodity derivatives under the FHP	—		161		—		161
Total	$	—	$	1,122	$	—	$	1,122

Notes

(1) Includes obligations of government-sponsored entities.

(2) There are $400 million of U.S. Treasury securities in Level 1 Government debt securities and $95 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $495 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.

(3) Includes both U.S. and foreign debt.

(4) Includes $78 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $174 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.

(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.

(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

Estimated Values of Financial Instruments Not Recorded at Fair Value

The estimated values of TVA's financial instruments not recorded at fair value at June 30, 2025, and September 30, 2024, were as follows:

Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions)
		At June 30, 2025				At September 30, 2024
	Valuation Classification	Carrying Amount		Fair Value		Carrying Amount		Fair Value
EnergyRight® receivables, net (including current portion)	Level 2	$	56	$	56	$	56	$	56
Loans and other long-term receivables, net (including current portion)	Level 2	114		108		105		99
EnergyRight® financing obligations (including current portion)	Level 2	65		73		66		74
Membership interests of VIEs subject to mandatory redemption (including current portion)	Level 2	16		18		17		19
Long-term outstanding power bonds, net (including current maturities)	Level 2	20,599		20,483		18,889		19,416
Long-term debt of VIEs, net (including current maturities)	Level 2	1,699		1,693		934		966

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Other Income (Expense), Net (Tables)

9 Months Ended

Jun. 30, 2025

Other Income and Expenses [Abstract]

Other Income (Expense), Net

Income and expenses not related to TVA's operating activities are summarized in the following table:

Other Income, Net (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Interest income	$	10	$	10	$	31	$	30
External services	8		4		22		12
Gains on investments	10		2		8		16
Miscellaneous	1		(2)		(3)		(3)
Total other income, net	$	29	$	14	$	58	$	55

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Benefit Plans (Tables)

9 Months Ended

Jun. 30, 2025

Retirement Benefits [Abstract]

Components of TVA's Benefit Plans

The components of net periodic benefit cost for the three and nine months ended June 30, 2025 and 2024, were as follows:

Components of Net Periodic Benefit Cost(1) (in millions)
	For the Three Months Ended June 30								For the Nine Months Ended June 30
	Pension Benefits				Other Post-Retirement Benefits				Pension Benefits				Other Post-Retirement Benefits
	2025		2024		2025		2024		2025		2024		2025		2024
Service cost	$	8	$	7	$	3	$	3	$	24	$	22	$	9	$	8
Interest cost	131		145		3		4		394		434		12		15
Expected return on plan assets	(126)		(123)		—		—		(379)		(370)		—		—
Amortization of prior service credit	(22)		(22)		(4)		(4)		(67)		(67)		(13)		(13)
Recognized net actuarial loss	44		25		—		—		131		75		—		—
Total net periodic benefit cost	35		32		2		3		103		94		8		10
Special/contractual termination benefits(2)	—		—		1		—		—		—		1		—
Total benefit cost	$	35	$	32	$	3	$	3	$	103	$	94	$	9	$	10

Note

(1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations.

(2) Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.

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Revenue (Tables)

9 Months Ended

Jun. 30, 2025

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue [Table Text Block]

TVA's operating revenues by state for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues By State (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Alabama	$	477	$	409	$	1,428	$	1,274
Georgia	74		65		242		214
Kentucky	209		179		605		557
Mississippi	310		277		886		816
North Carolina	18		19		67		70
Tennessee	2,161		1,869		6,345		5,685
Virginia	11		10		39		35
Subtotal	3,260		2,828		9,612		8,651
Off-system sales	2		2		4		6
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

Revenue from External Customers by Products and Services [Table Text Block]

TVA's operating revenues by customer type for the three and nine months ended June 30, 2025 and 2024, are detailed in the table below:

Operating Revenues by Customer Type (in millions)
	Three Months Ended June 30				Nine Months Ended June 30
	2025		2024		2025		2024
Revenue from sales of electricity
Local power companies	$	2,967	$	2,596	$	8,782	$	7,925
Industries directly served	259		205		734		642
Federal agencies and other	36		29		100		90
Revenue capitalized during pre-commercial plant operations(1)	(1)		—		(3)		(3)
Revenue from sales of electricity	3,261		2,830		9,613		8,654
Other revenue	45		49		145		144
Total operating revenues	$	3,306	$	2,879	$	9,758	$	8,798

Note

(1) Represents revenue capitalized during pre-commercial operations at Johnsonville Aeroderivative CT Units 21-30 in the three and nine months ended June 30, 2025 and Paradise CT Units 5-7 in the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.

Schedule of Long-term Contracts for Purchase of Electric Power

TVA Local Power Company Contracts At or for the Nine Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	7,612	78.0	%
5-year termination notice	5	1,170		12.0	%
Total	153	$	8,782	90.0	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

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Revenue Local Power Company Contracts (Tables)

9 Months Ended

Jun. 30, 2025

Long-term Contract for Purchase of Electric Power [Line Items]

Long-term Contracts or Programs Disclosure [Text Block]

The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three and nine months ended June 30, 2025, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the tables below:

TVA Local Power Company Contracts At or for the Three Months Ended June 30, 2025
Contract Arrangements(1)	Number of LPCs	Revenue from Sales of Electricity to LPCs (in millions)		Percentage of Total Operating Revenues
20-year termination notice	148	$	2,541	76.9	%
5-year termination notice	5	426		12.9	%
Total	153	$	2,967	89.8	%

Note

(1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election.

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Restructuring and Related Activities (Tables)

9 Months Ended

Jun. 30, 2025

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The table below summarizes the activity related to severance costs:

Severance Cost Liability Activity (in millions)
Severance cost liability at September 30, 2024	$	—
Liabilities incurred during the period	40
Actual costs paid during the period	(26)
Severance cost liability at June 30, 2025	$	14

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Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024	Jun. 30, 2024	Sep. 30, 2023
Cash and Cash Equivalents [Line Items]
Cash and Cash Equivalent	$ 501	$ 502
Restricted Cash and Cash Equivalent, Noncurrent	21	21
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 522	$ 523	$ 521	$ 521

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Summary of Significant Accounting Policies Allowance for Uncollectible Accounts (Details) $ in Millions	9 Months Ended
	Jun. 30, 2025 USD ($) Units	Sep. 30, 2024 USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for uncollectible accounts	$ 10	$ 1
Financing Receivable, after Allowance for Credit Loss	108	99
Accounts and Financing Receivable, Allowance for Credit Loss	2	2
Holly Springs
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for uncollectible accounts	$ 8
Number of customers with allowance for uncollectible accounts | Units	1
Reported Value Measurement
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, after Allowance for Credit Loss	$ 114	$ 105

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Summary of Significant Accounting Policies Revenues (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Sep. 30, 2024
Property, Plant and Equipment [Line Items]
Pre-commercial Ops - capitalized revenue	$ 1	$ 0	$ 3	$ (3)
Accounts and Financing Receivable, Allowance for Credit Loss	2		2		$ 2
Paradise CT Units 5-7
Property, Plant and Equipment [Line Items]
Pre-commercial Ops - capitalized revenue				3
Pre-commercial Ops - Capitalized Fuel				$ 3
Johnsonville Aeroderivative CT Units 25-28
Property, Plant and Equipment [Line Items]
Pre-commercial Ops - capitalized revenue	1		3
Pre-commercial Ops - Capitalized Fuel	$ 2		$ 6

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Summary of Significant Accounting Policies Depreciation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 484	$ 463	$ 1,400	$ 1,400

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Accounts Receivable, Net (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Accounts Receivable, Net
Accounts Receivable, before Allowance for Credit Loss, Current	$ 1,791	$ 1,683
Other receivables	106	118
Allowance for uncollectible accounts	10	1
Accounts receivable, net	1,887	1,801
Accounts Receivable, Allowance for Credit Loss	$ 10	$ 0

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Inventories, Net (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Inventories, Net
Materials and supplies inventory	$ 980	$ 931
Fuel inventory	280	286
Renewable energy certificates/emission allowance inventory, net	10	11
Allowance for inventory obsolescence	(86)	(73)
Inventories, net	$ 1,184	$ 1,155

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Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets, Miscellaneous, Current	$ 14	$ 7
Other current assets	169	120
Prepaid Insurance	27	19
Prepaid Expense and Other Assets, Current	16	7
Prepaid Expense, Current	11	6
Fair value	8	64
Prepaid software maintenance	33	22
Inventory, Work in Process and Raw Materials	$ 52	$ 41

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Plant Closures (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		15 Months Ended	30 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2025
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 484	$ 463	$ 1,400	$ 1,400
Property, Plant and Equipment, Dispositions	4 million	4 million	12 million	11 million
Kingston
Property, Plant and Equipment [Line Items]
Accelerated depreciation					$ 9
Accumulated additional depreciation					$ 45
Cumberland
Property, Plant and Equipment [Line Items]
Accelerated depreciation						$ 16
Accumulated additional depreciation						$ 160

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Other Long-Term Assets (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2025	Sep. 30, 2024
Other Long-Term Assets
Loans and other long-term receivables, net	$ 111	$ 84
EnergyRight® receivables, net	56	56
Other Intangible Assets, Net	98	35
Prepaid Expense and Other Assets, Noncurrent	68	62
Prepaid capital assets	67	29
Total other long-term assets	490	344
Prepaid Expense, Current	11	6
Financing Receivable, after Allowance for Credit Loss, Current	3	21
EnergyRight® financing obligation	73	74
Accounts and Financing Receivable, Allowance for Credit Loss	2	2
EnergyRight loan reserve
Other Long-Term Assets
Accounts and Financing Receivable, Allowance for Credit Loss	1	1
Economic development loan specific loan reserve
Other Long-Term Assets
Accounts and Financing Receivable, Allowance for Credit Loss	1	1
Accounts Receivable [Member]
Other Long-Term Assets
EnergyRight® receivables, net	12	12
Other long-term assets
Other Long-Term Assets
EnergyRight® receivables, net	44	44
Other	85	88
Other current assets
Other Long-Term Assets
Other Intangible Assets, Net	3	13
Other long-term assets
Other Long-Term Assets
Commodity Contract Asset, Noncurrent	$ 17	$ 2
Energy Right
Other Long-Term Assets
Number of days in default	180 days
Energy Right | Minimum
Other Long-Term Assets
Debt Instrument, Term	5 years
Energy Right | Maximum
Other Long-Term Assets
Debt Instrument, Term	10 years

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Regulatory Assets and Liabilities (Details) $ in Millions	Jun. 30, 2025 USD ($)	Sep. 30, 2024 USD ($)
Regulatory Assets and Liabilities
Current regulatory assets	$ 152	$ 191
Non-current regulatory assets	9,137	9,408
Environmental Remediation Costs Recognized [Abstract]	313	215
Regulatory assets	9,289	9,599
Current regulatory liabilities	202	174
Regulatory Liability, Noncurrent	85	83
Regulatory Liabilities	287	257
Fair value	$ 8	$ 64
Commodity Contract Derivatives
Regulatory Assets and Liabilities
Number of contracts	57	45
Derivative, Nonmonetary Notional Amount	412,000,000	321,000,000
Fair value	$ 1	$ 2
Fuel cost adjustment tax equivalents
Regulatory Assets and Liabilities
Current regulatory liabilities	189	169
Unrealized gains/losses on commodity derivatives
Regulatory Assets and Liabilities
Current regulatory liabilities	13	5
Regulatory Liability, Noncurrent	17	2
Postretirement Benefit Costs
Regulatory Assets and Liabilities
Regulatory Liability, Noncurrent	68	81
Unrealized losses on interest rate derivatives [Member]
Regulatory Assets and Liabilities
Current regulatory assets	51	54
Non-current regulatory assets	321	447
Unrealized gains/losses on commodity derivatives
Regulatory Assets and Liabilities
Current regulatory assets	22	102
Non-current regulatory assets	8	64
Fuel cost adjustment receivable/liability
Regulatory Assets and Liabilities
Current regulatory assets	79	35
Pension Costs [Member]
Regulatory Assets and Liabilities
Non-current regulatory assets	1,915	1,979
Nuclear desommissioning costs [Member]
Regulatory Assets and Liabilities
Non-current regulatory assets	276	362
Non-nuclear decommissioning [Member]
Regulatory Assets and Liabilities
Non-current regulatory assets	6,135	6,187
Other non-current regulatory assets [Member]
Regulatory Assets and Liabilities
Non-current regulatory assets	$ 169	$ 154

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Variable Interest Entities Variable Interest Entities (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Oct. 02, 2024	Sep. 30, 2024	Sep. 30, 2013	Sep. 30, 2012
Variable Interest Entities
Other long-term liabilities	$ 1,507		$ 1,507			$ 1,712
Accrued interest	30		30			9
VIE Financing
Face amount	$ 40		$ 40				$ 360
Financial instruments subject to mandatory redemption, interest rate, stated percentage	7.00%		7.00%
Liabilities
Current maturities of long-term debt of variable interest entities	$ 48		$ 48			37
Long-term debt of variable interest entities, net	1,651		1,651			897
Liabilities, Current	5,548		5,548			5,873
Assets, Total	59,885		59,885			57,703
Variable Interest Entity, Primary Beneficiary [Member]
Variable Interest Entities
Other long-term liabilities	15		15			16
Liabilities	1,745		1,745			960		$ 1,000
VIE Financing
Debt and Lease Obligation					$ 800
Liabilities
Liabilities, Current	79		79			47
Interest Expense	21	$ 12	64	$ 35
Accounts Payable and Accrued Liabilities	$ 1		$ 1			$ 1
JSCCG
VIE Financing
Face amount								900
Holdco
VIE Financing
Face amount								$ 100
SCCG
VIE Financing
Debt and Lease Obligation							$ 400
JACTG
VIE Financing
Face amount					720
JHLLC
VIE Financing
Face amount					$ 80

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Other Long-Term Liabilities (Details) - USD ($) $ in Millions		Jun. 30, 2025	Sep. 30, 2024
Other Long-Term Liabilities
Deferred Revenue, Noncurrent		$ 38	$ 48
Environmental Remediation Costs Recognized Disclosure
Interest Rate Derivative Liabilities, at Fair Value		673	840
Operating Lease, Liability, Noncurrent		74	88
Currency swap liabilities	[1]	91	116
Fair value		8	64
Environmental Exit Costs, Anticipated Cost		(272)	(212)
EnergyRight® financing obligation		(73)	(74)
Deferred Compensation Liability, Classified, Noncurrent		47	50
Other long-term liabilities		1,507	1,712
Regulatory Liability, Noncurrent		85	83
Deferred Compensation Liability, Current		57	74
Deferred Revenue, Current		42	28
Long-term project cost accruals		198	140
Operating Lease, Liability, Current		56	63
Operating Lease, Liability, Current		56	63
Commodity Contract Derivatives
Environmental Remediation Costs Recognized Disclosure
Fair value		1	2
Accounts payable and accrued liabilities
Environmental Remediation Costs Recognized Disclosure
Environmental Exit Costs, Anticipated Cost		(41)	(3)
EnergyRight® financing obligation		(13)	(13)
Customer Advances for Construction		127	60
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current		11	16
Accounts payable and accrued liabilities | Commodity Contract Derivatives
Environmental Remediation Costs Recognized Disclosure
Fair value		(3)	(3)
Other long-term liabilities
Other Long-Term Liabilities
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Noncurrent		20	7
Environmental Remediation Costs Recognized Disclosure
Interest Rate Derivative Liabilities, at Fair Value		622	792
Currency swap liabilities		85	109
EnergyRight® financing obligation		(52)	(52)
Other		76	95
Customer Advances for Construction		15	55
Other long-term liabilities | Commodity Contract Derivatives
Environmental Remediation Costs Recognized Disclosure
Fair value		(2)	(2)
Accounts Payable
Environmental Remediation Costs Recognized Disclosure
Long-term project cost accruals		$ 219	124
Other long-term assets | Commodity Contract Derivatives
Environmental Remediation Costs Recognized Disclosure
Fair value			$ 2

[1] TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

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Asset Retirement Obligations (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2025	Sep. 30, 2024
Asset Retirement Obligations
Asset Retirement Obligation, Period Increase (Decrease)	$ 118
Amortization and Depreciation of Decontaminating and Decommissioning Assets	165
Asset Retirement Obligation, Beginning Balance	10,806
Settlements	(187)
Asset Retirement Obligation, Revision of Estimate	(22)
Accretion Expense, Including Asset Retirement Obligations	327
Asset Retirement Obligation, Ending Balance	10,924
Current portion of ARO	(316)	$ (283)
Change in closure liabilities	(34)
Increase in Asset Retirement Obligation, Revision in Estimate	16
Nuclear
Asset Retirement Obligations
Asset Retirement Obligation, Beginning Balance	3,814
Settlements	(9)
Asset Retirement Obligation, Revision of Estimate	2
Accretion Expense, Including Asset Retirement Obligations	130
Asset Retirement Obligation, Ending Balance	3,937
Non-nuclear
Asset Retirement Obligations
Asset Retirement Obligation, Beginning Balance	6,992
Settlements	(178)
Asset Retirement Obligation, Revision of Estimate	(24)
Accretion Expense, Including Asset Retirement Obligations	197
Asset Retirement Obligation, Ending Balance	$ 6,987

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Debt and Other Obligations Debt Outstanding (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Short-term debt
Short-term debt, net	$ 319	$ 1,167
Current maturities of power bonds	1,370	1,022
Current maturities of long-term debt of variable interest entities	48	37
Debt, Current	1,737	2,226
Long-term debt
Long-term power bonds	19,389	17,995
Unamortized discounts, premiums, issues costs, and other	160	128
Total long-term debt, net	20,880	18,764
Total outstanding debt	22,617	20,990
Long-term debt of variable interest entities, net	1,651	897
Net exchange gain from currency transaction, noncurrent	$ 48	$ 62

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Debt and Other Obligations Debt Securities Activity (Details) - USD ($) $ in Millions		9 Months Ended
		Jun. 30, 2025		Jun. 30, 2024	Oct. 02, 2024	Sep. 30, 2024
Debt Instrument
Total long-term debt, net		$ 20,880				$ 18,764
Repayments of Unsecured Debt		1,022	[1]	$ 22
Amount of letters of credit outstanding		$ 6
Percent of par value	[1]	100.00%
Long-term power bonds, net		$ 19,229				$ 17,867
Repayments of Other Long-term Debt		$ 23		$ 17
Debt Instrument, Redemption, Description		1,045
Proceeds from Issuance of Debt		$ 3,522
Debt Instrument, Unamortized Discount (Premium), Net		28
2009 series B
Debt Instrument
Repayments of Unsecured Debt		1
2009 Series B June Payment
Debt Instrument
Repayments of Unsecured Debt		21
2020 Series A Payment
Debt Instrument
Repayments of Unsecured Debt		$ 1,000
880591FC1
Debt Instrument
Percent of par value		98.517%
Long-term power bonds, net		$ 1,250
880591FD9
Debt Instrument
Percent of par value		99.36%
Long-term power bonds, net		$ 1,500
Variable Interest Entity, Primary Beneficiary [Member]
Debt Instrument
Debt and Lease Obligation					$ 800

[1] (3) All redemptions were at 100 percent of par.

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Debt and Other Obligations Credit Facility Agreements (Details)

9 Months Ended

Jun. 30, 2025

USD ($)

Credit_facilities

Sep. 30, 2024

USD ($)

Line of Credit Facility [Line Items]

Summary of Long-Term Credit Facilities

Summary of Credit Facilities At June 30, 2025 (in millions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
March 2026	$	150	$	38	$	—	$	112
September 2026	1,000		71		—		929
March 2027	1,000		194		—		806
February 2028	500		214		—		286
Total	$	2,650	$	517	$	—	$	2,133

Borrowings under U.S. Treasury credit facility

$ 0

Amount of letters of credit outstanding for credit facilities

6,000,000

Line of Credit

Line of Credit Facility [Line Items]

Current borrowing capacity for credit facilities

150,000,000

Revolving Credit Facilities

Line of Credit Facility [Line Items]

Current borrowing capacity for credit facilities

$ 2,650,000,000

Number of revolving credit facilities | Credit_facilities

4

December 2019 Credit Facility

$ 150,000,000

February 2022 Credit Facility

1,000,000,000

June 2020 Credit Facility

500,000,000

September 2020 Credit Facility

1,000,000,000

Cash Borrowings-December 2019 Credit Facility

0

Cash Borrowings-June 2020 Credit Facility

0

Cash Borrowings-September 2020 Credit Facility

0

Total Cash Borrowings for Credit Facilities

0

Remaining Availability, December 2019 Credit Facility

112,000,000

Remaining Availability, February 2022 Credit Facility

806,000,000

Long-term Line of Credit, Borrowings 3

0

Remaining Availability, June 2020 Credit Facility

286,000,000

Remaining Availability, September 2020 Credit Facility

929,000,000

Total Remaining Availability for Credit Facilities

2,133,000,000

Letter of Credit

Line of Credit Facility [Line Items]

Letters of Credit Outstanding, Amount 1

214,000,000

Letter of Credit Outstanding, December 2019 Credit Facility

38,000,000

Letter of Credit Outstanding, February 2022 Credit Facility

194,000,000

Letter of Credit Outstanding, September 2020 Credit Facility

71,000,000

Amount of letters of credit outstanding for credit facilities

$ 517,000,000

$ 566,000,000

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Risk Management Activities and Derivative Transactions Derivative Instruments That Receive Hedge Accounting Treatment (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024		Jun. 30, 2025		Jun. 30, 2024
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
Reclassification to earnings from cash flow hedges in the next 12 months				$ 1
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax	$ 38	$ 7	[1]	15	[1]	$ 20
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax	47	1		24		17
Commodity Contract under FHP
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(13)	(72)		(64)		(227)
Fuel Expense | Commodity Contract under FHP
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	(3)	59		(12)		186
Purchased Power Expense | Commodity Contract under FHP
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (10)	$ 13		$ (52)		$ 41

[1] There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $1 million of loss from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange gains on the debt.

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Risk Management Activities and Derivative Transactions Derivative Instruments That Do Not Receive Hedge Accounting Treatment (Details)	3 Months Ended			9 Months Ended
	Jun. 30, 2025 USD ($)	Jun. 30, 2024 USD ($)		Jun. 30, 2025 USD ($)		Jun. 30, 2024 USD ($)		Sep. 30, 2024 USD ($)
Derivative
Change in Unrealized gains (losses) on Interest Rate Derivatives	$ (6,000,000)	$ 32,000,000		$ (141,000,000)		$ 63,000,000
Fair value	8,000,000			8,000,000				$ 64,000,000
Interest Rate Swap
Derivative
Amount recognized for unrealized gains (losses)				0
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (11,000,000)	(8,000,000)	[1]	$ (33,000,000)	[1]	(23,000,000)	[1]
Commodity Contract Derivatives
Derivative
Number of contracts	57			57				45
Derivative, Nonmonetary Notional Amount	412,000,000			412,000,000				321,000,000
Fair value	$ 1,000,000			$ 1,000,000				$ 2,000,000
Derivative, Term of Contract	10 years
Derivative, Term of Contract	10 years
Commodity Contract under FHP
Derivative
Number of contracts	210			210				126
Derivative, Nonmonetary Notional Amount	284			284				230
Fair value	$ (1,000,000)			$ (1,000,000)				$ (161,000,000)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net	$ (13,000,000)	$ (72,000,000)		$ (64,000,000)		$ (227,000,000)
Derivative, Term of Contract	5 years
Derivative, Term of Contract	5 years

[1] All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three and nine months ended June 30, 2025 and for the three and nine months ended June 30, 2024. (2) Of the amount recognized for the three months ended June 30, 2025, $3 million and $10 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2024, $59 million and $13 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2025, $12 million and $52 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2024, $186 million and $41 million were reported in Fuel expense and Purchased power expense, respectively.

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Risk Management Activities and Derivative Transactions Fair Values of TVA Derivatives (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Derivatives, Fair Value
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11
Fair value	8	64
Other current assets
Derivatives, Fair Value
Fair value	13
250 million Sterling currency swap
Derivatives, Fair Value
Fair value	(35)	(49)
250 million Sterling currency swap | Other long-term liabilities
Derivatives, Fair Value
Fair value	(31)	(45)
250 million Sterling currency swap | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(4)	(4)
150 million Sterling currency swap
Derivatives, Fair Value
Fair value	(56)	(67)
150 million Sterling currency swap | Other long-term liabilities
Derivatives, Fair Value
Fair value	(54)	(64)
150 million Sterling currency swap | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(2)	(3)
$1.0 billion notional interest rate swap
Derivatives, Fair Value
Fair value	(508)	(622)
$1.0 billion notional interest rate swap | Other long-term liabilities
Derivatives, Fair Value
Fair value	(470)	(586)
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(30)	(10)
$1.0 billion notional interest rate swap | Interest payable, current
Derivatives, Fair Value
Fair value	(8)	(26)
Commodity contract derivatives
Derivatives, Fair Value
Fair value	1	2
Commodity contract derivatives | Other long-term assets
Derivatives, Fair Value
Fair value		2
Commodity contract derivatives | Other current assets
Derivatives, Fair Value
Fair value	6	5
Commodity contract derivatives | Other long-term liabilities
Derivatives, Fair Value
Fair value	(2)	(2)
Commodity contract derivatives | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(3)	(3)
Commodity Contract under FHP
Derivatives, Fair Value
Fair value	(1)	(161)
Gross amounts of recognized liabilities	55	165
Commodity Contract under FHP | Other long-term assets
Derivatives, Fair Value
Fair value	17
Commodity Contract under FHP | Other current assets
Derivatives, Fair Value
Fair value	7
Commodity Contract under FHP | Other long-term liabilities
Derivatives, Fair Value
Fair value	(6)	(62)
Commodity Contract under FHP | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(19)	(99)
$476 million notational interest rate swap
Derivatives, Fair Value
Fair value	(165)	(218)
$476 million notational interest rate swap | Other long-term liabilities
Derivatives, Fair Value
Fair value	(152)	(206)
$476 million notational interest rate swap | Accounts payable and accrued liabilities
Derivatives, Fair Value
Fair value	(12)	(3)
$476 million notational interest rate swap | Interest payable, current
Derivatives, Fair Value
Fair value		(9)
Fair Value, Inputs, Level 2
Derivatives, Fair Value
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11

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Risk Management Activities and Derivative Transactions Currency Swaps Outstanding (Details) $ in Millions	9 Months Ended
	Jun. 30, 2025 USD ($)	Sep. 30, 2024 Bond_issues
Derivative
Number of currency swaps outstanding | Bond_issues		2
Amount of letters of credit outstanding for credit facilities	$ 6
Associated TVA bond issues currency exposure	$ 400
Minimum | 250 million Sterling currency swap
Derivative
Expiration date range of swaps	2032
Maximum | 150 million Sterling currency swap
Derivative
Expiration date range of swaps	2043

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Risk Management Activities and Derivative Transactions Derivatives Under FTP (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Derivative
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11
Fair value	8	64
Commodity Contract under FHP
Derivative
Fair value	(1)	(161)
Fair Value, Inputs, Level 2
Derivative
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11

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Risk Management Activities and Derivative Transactions Offsetting of Derivative Assets (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Offsetting Assets [Line Items]
Derivative Asset, Subject to Master Netting Arrangement, after Offset	$ 30	$ 7
Amount of letters of credit outstanding for credit facilities	6
Forward Contract Derivative Asset, at Fair Value	18	11
Derivative Liability, Subject to Master Netting Arrangement, after Offset	794	1,122
Offsetting Derivative Assets [Abstract]
Derivative Asset, Fair Value, Gross Liability	30	4
Letter of Credit
Offsetting Assets [Line Items]
Amount of letters of credit outstanding for credit facilities	517	566
Currency Swap
Offsetting Assets [Line Items]
Derivative Liability, Subject to Master Netting Arrangement, after Offset	91	116
Commodity Contract under FHP
Offsetting Assets [Line Items]
Derivative Asset, Subject to Master Netting Arrangement, after Offset	24	0
Derivative Liability, Subject to Master Netting Arrangement, after Offset	25	161
Offsetting Derivative Assets [Abstract]
Derivative Asset, Subject to Master Netting Arrangement, before Offset	54	4
Gross amounts of recognized liabilities	55	165
Interest Rate Swap
Offsetting Assets [Line Items]
Derivative Liability, Subject to Master Netting Arrangement, after Offset	673	840
Commodity Contract Derivatives
Offsetting Assets [Line Items]
Derivative Asset, Subject to Master Netting Arrangement, after Offset	6	7
Derivative Liability, Subject to Master Netting Arrangement, after Offset	5	5
Fair Value, Inputs, Level 2
Offsetting Assets [Line Items]
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11

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Risk Management Activities and Derivative Transactions Offsetting for Derivative Liabilities (Details) $ in Millions	Jun. 30, 2025 USD ($)	Sep. 30, 2024 USD ($) Bond_issues
Offsetting Liabilities [Line Items]
Number of currency swaps outstanding | Bond_issues		2
Accounts Receivable, before Allowance for Credit Loss, Current	$ 1,791	$ 1,683
Amount of letters of credit outstanding	6
Forward Contract Derivative Asset, at Fair Value	18	11
Letter of Credit
Offsetting Liabilities [Line Items]
Amount of letters of credit outstanding	517	566
Interest Swap Collateral
Offsetting Liabilities [Line Items]
Amount of letters of credit outstanding	411
Fair Value, Inputs, Level 2
Offsetting Liabilities [Line Items]
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11

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Risk Management Activities and Derivative Transactions Collateral (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Derivative
Amount of letters of credit outstanding	$ 6
Forward Contract Derivative Asset, at Fair Value	18	$ 11
Likely cash collateral obligation increase	22
Derivative Liability, Subject to Master Netting Arrangement, after Offset	794	1,122
Collateralized Securities [Member]
Derivative
Derivative, Collateral, Right to Reclaim Cash	439
Credit Risk
Derivative
Derivative Liability, Subject to Master Netting Arrangement, after Offset	794
Letter of Credit
Derivative
Amount of letters of credit outstanding	517	566
Interest Swap Collateral
Derivative
Amount of letters of credit outstanding	411
Interest rate swap collateral
Derivative
Amount of letters of credit outstanding		535
Fair Value, Inputs, Level 2
Derivative
Forward Contract Derivative Asset, at Fair Value	$ 18	$ 11

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Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details) $ in Millions	9 Months Ended
	Jun. 30, 2025 USD ($) Customers	Jun. 30, 2024	Sep. 30, 2024 USD ($)
Derivative
Accounts Receivable, before Allowance for Credit Loss, Current | $	$ 1,791		$ 1,683
Two Largest Customer Percentage of Total Operating Revenue	1600.00%	1600.00%
Moody's, A1 Rating [Member]
Derivative
Natural Gas Banking Counterparties Credit Rating	A1
Moody's, B1 Rating [Member]
Derivative
Natural Gas Banking Counterparties Credit Rating	B1
Moody's, A2 Rating
Derivative
Banking Counterparties Credit Rating	A2
Credit of Customers
Derivative
Number of customers that represent the percent of sales	2
Number of customers that represent the percent of sales	2

XML

Risk Management Activities and Derivative Transactions Cash Flow from Hedging (Details) $ in Millions	Jun. 30, 2025 USD ($)
Cash Flow from Hedging [Abstract]
Associated bond issues currency exposure	$ 400

XML

Fair Value Measurements Fair Value Measurements - Investments (Details) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025 USD ($) Units	Jun. 30, 2024 USD ($)	Jun. 30, 2025 USD ($) Units	Jun. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)
Investment Gains (Losses)
Financing Receivable, after Allowance for Credit Loss	$ 108		$ 108		$ 99
Period of time where the investor contributes capital to an investment in a private partnership - minimum | Units	3		3
Period of time where the investor contributes capital to an investment in a private partnership - maximum | Units	4		4
Minimum investment period | Units	10		10
Number of readily available quoted exchange prices for the investments	0		0
Investment funds	$ 5,277		$ 5,277		$ 4,968
NDT [Member]
Investment Gains (Losses)
Investment funds	3,500		3,500
ART [Member]
Investment Gains (Losses)
Investment funds	1,600		1,600
LTDCP [Member]
Investment Gains (Losses)
Unrealized gains (losses) on investments	(2)	$ 0	0	$ (2)
SERP
Investment Gains (Losses)
Unrealized gains (losses) on investments	(5)	0	1	(9)
ART [Member]
Investment Gains (Losses)
Unrealized gains (losses) on investments	(97)	4	(69)	(119)
Debt and Equity Securities, Unrealized Gain (Loss)	10	1	5	24
NDT [Member]
Investment Gains (Losses)
Unrealized gains (losses) on investments	(200)	21	133	(230)
Debt and Equity Securities, Unrealized Gain (Loss)	41	$ 7	12	$ 70
Real Estate Funds | NDT [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	128		128
Real Estate Funds | ART [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	77		77
Private Equity Funds [Member] | NDT [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	368		368
Private Equity Funds [Member] | ART [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	143		143
Private Credit [Member] | NDT [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	119		119
Private Credit [Member] | ART [Member]
Investment Gains (Losses)
NDT unfunded commitments related to private equity and real estate	$ 58		$ 58

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Fair Value Measurements Fair Value Measurements - Nonperformance Risk (Details) $ in Millions	Jun. 30, 2025 USD ($)
Nonperformance Risk
Derivative Credit Risk Valuation Adjustment, Derivative Assets	$ 0
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities	$ 3

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Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions		3 Months Ended		9 Months Ended
		Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Sep. 30, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Financing Receivable, after Allowance for Credit Loss		$ 108		$ 108		$ 99
Investments
Government debt securities		452		452		457
Corporate debt securities		379		379		378
Mortgage and asset-backed securities		35		35		43
Institutional mutual funds		352		352		342
Forward debt securities contracts		18		18		11
Private credit measured at net asset value		267		267		219
Private equity funds measured at net asset value(1)		868		868		738	[1]
Private real estate funds measured at net asset value(1)		474		474		432	[1]
Commingled funds measured at net asset value(1)		1,446		1,446		1,300	[1]
Total investments		5,277		5,277		4,968
Commodity contract derivatives		6		6		7
Total		5,307		5,307		4,975
Liabilities
Currency swaps	[2]	91		91		116
Interest rate swaps		673		673		840
Commodity contract derivatives		5		5		5
Total		794		794		1,122
Equity Securities, FV-NI		736		736		770
Cash, Cash Equivalents, and Short-Term Investments		250		250		278
Government debt securities reclassed		48		48		95
Commingled funds reclassed		456		456		495
Net Payables		98		98		78
Repurchase Agreements		204		204		174
Commodity Contract under FHP
Investments
Total derivatives not subject to master netting or similar arrangement		24		24
Liabilities
Derivative Liability, Not Subject to Master Netting Arrangement		25		25		161
NDT [Member]
Liabilities
Debt and Equity Securities, Unrealized Gain (Loss)		41	$ 7	12	$ 70
Debt and Equity Securities, Unrealized Gain (Loss)		41	7	12	70
ART [Member]
Liabilities
Debt and Equity Securities, Unrealized Gain (Loss)		10	1	5	24
Debt and Equity Securities, Unrealized Gain (Loss)		10	$ 1	5	24
RP
Liabilities
Debt and Equity Securities, Unrealized Gain (Loss)				1	1
Debt and Equity Securities, Unrealized Gain (Loss)				1	$ 1
Fair Value, Inputs, Level 1
Investments
Government debt securities		408		408		400
Corporate debt securities		0		0		0
Mortgage and asset-backed securities		0		0		0
Institutional mutual funds		352		352		342
Forward debt securities contracts		0		0		0
Private credit measured at net asset value		0		0		0
Private equity funds measured at net asset value(1)		0		0		0	[1]
Private real estate funds measured at net asset value(1)		0		0		0	[1]
Commingled funds measured at net asset value(1)		0		0		0	[1]
Total investments		1,544		1,544		1,607
Commodity contract derivatives		0		0		0
Total		1,544		1,544		1,607
Liabilities
Currency swaps		0		0		0	[2]
Interest rate swaps		0		0		0
Commodity contract derivatives		0		0		0
Total		0		0		0
Equity Securities, FV-NI		736		736		770
Cash, Cash Equivalents, and Short-Term Investments		48		48		95
Fair Value, Inputs, Level 1 | Commodity Contract under FHP
Investments
Total derivatives not subject to master netting or similar arrangement		0		0
Liabilities
Derivative Liability, Not Subject to Master Netting Arrangement		0		0		0
Fair Value, Inputs, Level 2
Investments
Government debt securities		44		44		57
Corporate debt securities		379		379		378
Mortgage and asset-backed securities		35		35		43
Institutional mutual funds		0		0		0
Forward debt securities contracts		18		18		11
Private credit measured at net asset value		0		0		0
Private equity funds measured at net asset value(1)		0		0		0	[1]
Private real estate funds measured at net asset value(1)		0		0		0	[1]
Commingled funds measured at net asset value(1)		0		0		0	[1]
Total investments		678		678		672
Commodity contract derivatives		6		6		7
Total		708		708		679
Liabilities
Currency swaps		91		91		116	[2]
Interest rate swaps		673		673		840
Commodity contract derivatives		5		5		5
Total		794		794		1,122
Equity Securities, FV-NI		0		0		0
Cash, Cash Equivalents, and Short-Term Investments		202		202		183
Fair Value, Inputs, Level 2 | Commodity Contract under FHP
Investments
Total derivatives not subject to master netting or similar arrangement		24		24
Liabilities
Derivative Liability, Not Subject to Master Netting Arrangement		25		25		161
Fair Value, Inputs, Level 3
Investments
Government debt securities		0		0		0
Corporate debt securities		0		0		0
Mortgage and asset-backed securities		0		0		0
Institutional mutual funds		0		0		0
Forward debt securities contracts		0		0		0
Private credit measured at net asset value		0		0		0
Private equity funds measured at net asset value(1)		0		0		0	[1]
Private real estate funds measured at net asset value(1)		0		0		0	[1]
Commingled funds measured at net asset value(1)		0		0		0	[1]
Total investments		0		0		0
Commodity contract derivatives		0		0		0
Total		0		0		0
Liabilities
Currency swaps		0		0		0	[2]
Interest rate swaps		0		0		0
Commodity contract derivatives		0		0		0
Total		0		0		0
Equity Securities, FV-NI		0		0		0
Cash, Cash Equivalents, and Short-Term Investments		0		0		0
Fair Value, Inputs, Level 3 | Commodity Contract under FHP
Investments
Total derivatives not subject to master netting or similar arrangement		0		0
Liabilities
Derivative Liability, Not Subject to Master Netting Arrangement		$ 0		$ 0		$ 0

[1] Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

[2] TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

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Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodity contract derivatives	$ 6	$ 7
Commodity contract derivatives	5	5
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Commodity contract derivatives	0	0
Commodity contract derivatives	$ 0	$ 0

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Fair Value Measurements Estimated Values of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Estimated Values of Financial Intruments Not Recorded at Fair Value
EnergyRight® receivables, net (including current portion)	$ 56	$ 56
Loans and other long-term receivables, net (including current portion)	108	99
EnergyRight® financing obligations (including current portion)	73	74
Membership interests of VIEs subject to mandatory redemption (including current portion)	18	19
Long-term outstanding power bonds, net (including current maturities)	20,483	19,416
Long-term debt of VIEs, net (including current maturities)	1,693	966
Reported Value Measurement
Estimated Values of Financial Intruments Not Recorded at Fair Value
EnergyRight® receivables, net (including current portion)	56	56
Loans and other long-term receivables, net (including current portion)	114	105
EnergyRight® financing obligations (including current portion)	65	66
Membership interests of VIEs subject to mandatory redemption (including current portion)	16	17
Long-term outstanding power bonds, net (including current maturities)	20,599	18,889
Long-term debt of VIEs, net (including current maturities)	$ 1,699	$ 934

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Other Income (Expense), Net (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Other Income (Expense), Net
External services	$ 8	$ 4	$ 22	$ 12
Interest income	10	10	31	30
Gains (losses) on investments	10	2	8	16
Other income (expense), net	29	14	58	55
Miscellaneous	$ 1	$ 2	$ 3	$ 3

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Benefit Plans Components of Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Pension Plan
Retirement Plan Disclosure
Service cost	$ 8	$ 7	$ 24	$ 22
Interest cost	131	145	394	434
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	(126)	123	(379)	370
Amortization of prior service cost	(22)	(22)	(67)	(67)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	44	(25)	131	(75)
Net periodic benefit cost as acutarially determined	35	32	103	94
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	35	32	103	94
Other Postretirement Benefit Plan
Retirement Plan Disclosure
Service cost	3	3	9	8
Interest cost	3	4	12	15
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	0	0	0	0
Amortization of prior service cost	(4)	(4)	(13)	(13)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	0	0	0	0
Net periodic benefit cost as acutarially determined	3	3	9	10
Defined Benefit Plan, Net Periodic Benefit Cost (Credit)	2	3	8	10
Defined benefit plan contributions			19
Other Pension Plan
Retirement Plan Disclosure
Defined benefit plan contributions			225
401K [Member]
Retirement Plan Disclosure
Defined benefit plan contributions			95
Special Termination Benefits
Retirement Plan Disclosure
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	0	$ 0	0	$ 0
Postemployment Retirement Benefits
Retirement Plan Disclosure
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss)	$ 1		$ 1

XML

Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Other Pension Plan
Retirement Plan Disclosure
Defined benefit plan contributions			$ 225
Pension Benefits
Retirement Plan Disclosure
Service cost	$ 8	$ 7	24	$ 22
Interest cost	131	145	394	434
Expected return on plan assets	126	(123)	379	(370)
Amortization of prior service cost	(22)	(22)	(67)	(67)
Recognized net actuarial loss	(44)	25	(131)	75
Total net periodic benefit cost as actuarially determined	35	32	103	94
Total net periodic benefit cost	35	32	103	94
Other Post-retirement Benefits
Retirement Plan Disclosure
Defined benefit plan contributions			19
Service cost	3	3	9	8
Interest cost	3	4	12	15
Expected return on plan assets	0	0	0	0
Amortization of prior service cost	(4)	(4)	(13)	(13)
Recognized net actuarial loss	0	0	0	0
Total net periodic benefit cost as actuarially determined	3	3	9	10
Total net periodic benefit cost	$ 2	$ 3	$ 8	$ 10

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Benefit Plans Contributions (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2025	Jun. 30, 2025
Retirement Plan Disclosure
Remaining Employer Contributions		$ 75
Other Pension Plan
Retirement Plan Disclosure
Defined benefit plan contributions		225
defined benefit plan, plan assets, monthly contributions by employer		25
Other Post-retirement Benefits
Retirement Plan Disclosure
Defined benefit plan contributions		19
SERP
Retirement Plan Disclosure
Defined benefit plan contributions		10
Rebates [Member]
Retirement Plan Disclosure
Defined benefit plan contributions		4
401K [Member]
Retirement Plan Disclosure
Defined benefit plan contributions		$ 95
Minimum | Other Pension Plan
Retirement Plan Disclosure
Defined benefit plan contributions	$ 300

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Contingencies and Legal Proceedings Contingencies (Details) $ in Millions	3 Months Ended	9 Months Ended
	Dec. 31, 2024	Jun. 30, 2025 USD ($) reactors Insurance_layers Procedures	Sep. 30, 2024 USD ($)
Loss Contingencies
Nuclear liability insurance		$ 500
Assessment from licensees for each licensed reactor		$ 166
Number of licensed reactors in US | reactors		95
Nuclear accident assessment limitation per year per unit		$ 25
Maximum assessment per nuclear incident		1,200
Total amount of protection available		16,300
Amount of insurance available for loss at any one site		2,100
Maximum amount of retrospective premiums		122
Maximum idemnity if a covered accident takes or keeps a nuclear unit offline		490
Maximum retrospective premiums		50
Estimated future decommissioning cost		$ 10,924	$ 10,806
Number of procedures for determining estimates for the costs of nuclear decommissioning | Procedures		2
Estimated liability for cleanup and environmental work		$ 10	15
Amount of insurance available for loss at any one site (top range)		2,800
Long-term debt of VIEs, net (including current maturities)		$ 1,693	966
The U.S. Congress is required to take action if these layes are exhausted | Insurance_layers		2
Environmental Remediation
Loss Contingencies
Accrual for Environmental Loss Contingencies, Significant Assumptions	215 million	313 million
Accrual for Environmental Loss Contingencies, Significant Assumptions	215 million	313 million
Nuclear
Loss Contingencies
Estimated future decommissioning cost		$ 3,937	3,814
Non-nuclear
Loss Contingencies
Estimated future decommissioning cost		$ 6,987	$ 6,992

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Subsequent Event (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025		Jun. 30, 2024	Sep. 30, 2024
Subsequent Event [Line Items]
Repayments of Unsecured Debt			$ 1,022	[1]	$ 22
Current regulatory assets	$ 152		152			$ 191
Interest expense	307	$ 267	880		$ 795
Non-current regulatory assets	9,137		9,137			9,408
Unrealized gains/losses on commodity derivatives
Subsequent Event [Line Items]
Current regulatory assets	22		22			102
Non-current regulatory assets	$ 8		$ 8			$ 64

[1] (3) All redemptions were at 100 percent of par.

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Gallatin Coal Combustion Residual Facilities (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Other Long-Term Liabilities
Current regulatory assets	$ 152	$ 191

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Revenue (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	$ 3,261	$ 2,830	$ 9,613	$ 8,654
Electric revenue	(3,260)	(2,828)	(9,612)	(8,651)
Off System Sales of Electricity	2	2	4	6
Pre-commercial Ops - capitalized revenue	1	0	3	(3)
Unregulated Operating Revenue	45	49	145	144
Regulated and Unregulated Operating Revenue	$ 3,306	2,879	$ 9,758	$ 8,798
Total long duration contract revenue recognition	2,967		8,782
Percent of wholesale Credit offered			310.00%
Percent of Generation Flexibility Credit			5.00%
NES's % of operating revenues			800.00%	800.00%
Percent of Generation Flexibility Credit			5.00%
MLGW's % of operating revenues			800.00%	800.00%
ALABAMA
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	$ 477	409	$ 1,428	$ 1,274
GEORGIA
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	74	65	242	214
KENTUCKY
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	209	179	605	557
MISSISSIPPI
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	310	277	886	816
NORTH CAROLINA
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	18	19	67	70
TENNESSEE
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	2,161	1,869	6,345	5,685
VIRGINIA
Disaggregation of Revenue [Line Items]
Regulated Operating Revenue	$ 11	$ 10	$ 39	$ 35

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Revenue Customer Type (Details) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025 USD ($) Units	Jun. 30, 2024 USD ($)	Jun. 30, 2025 USD ($) Units	Jun. 30, 2024 USD ($)
Revenue, Major Customer [Line Items]
MLGW's % of operating revenues			800.00%	800.00%
NES's % of operating revenues			800.00%	800.00%
Off System Sales of Electricity	$ 2	$ 2	$ 4	$ 6
Bill credits for LTA	$ (53)	$ (51)	$ (164)	$ (152)
Number of LPCs signed LTA | Units	148		148
Number of LPCs signed Flexibility Agreement | Units	107		107
Percent of sales of electricity to LPCs	91.00%	92.00%	91.00%	92.00%
Pre-commercial Ops - capitalized revenue	$ (1)	$ 0	$ (3)	$ 3
Regulated Operating Revenue	3,261	2,830	9,613	8,654
Unregulated Operating Revenue	45	49	145	144
Regulated and Unregulated Operating Revenue	3,306	2,879	9,758	8,798
lpcs [Domain]
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	2,967	2,596	8,782	7,925
industries directly served [Domain]
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	259	205	734	642
federal agencies and other [Domain]
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	36	29	100	90
ALABAMA
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	477	409	1,428	1,274
GEORGIA
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	74	65	242	214
KENTUCKY
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	209	179	605	557
MISSISSIPPI
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	310	277	886	816
NORTH CAROLINA
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	18	19	67	70
TENNESSEE
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	2,161	1,869	6,345	5,685
VIRGINIA
Revenue, Major Customer [Line Items]
Regulated Operating Revenue	$ 11	$ 10	$ 39	$ 35

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Revenue Unpaid Incentives (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Sep. 30, 2024
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]
Paid Economic Incentives	$ 80	$ 80	$ 248	$ 233
Unpaid Economic Incentives	$ (197)		$ (197)		$ (187)

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Revenue Local Power Company Contracts (Details) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2025 USD ($) Units	Jun. 30, 2025 USD ($) Units
Long-term Contract for Purchase of Electric Power [Line Items]
Total long-duration contracts revenue recognition | $	2,967	8,782
Total percentage of operating revenues	89.80%	90.00%
Number of LPCs signed LTA	148	148
Total Number of LPCs	153	153
5-year Termination Notice [Member]
Long-term Contract for Purchase of Electric Power [Line Items]
Revenues | $	$ 426	$ 1,170
Percentage of total operating revenues	12.90%	12.00%
Number of LPCs signed LTA	5	5
20-year Termination Notice [Member]
Long-term Contract for Purchase of Electric Power [Line Items]
Revenues | $	$ 2,541	$ 7,612
Percentage of total operating revenues	76.90%	78.00%
Number of LPCs signed LTA	148	148

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Leases (Details) - USD ($) $ in Millions	Jun. 30, 2025	Sep. 30, 2024
Amounts Recognized on TVA's Consolidated Balance Sheet [Line Items]
Finance lease, asset	$ 684	$ 729
Operating Lease, Liability, Current	56	63
Operating Lease, Liability, Noncurrent	$ 74	$ 88

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Research and Development (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		48 Months Ended
	Jun. 30, 2025	Jun. 30, 2024	Jun. 30, 2025	Jun. 30, 2024	Sep. 30, 2026
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Other Research and Development Expense	$ 0	$ 12	$ 10	$ 29
Amount of letters of credit outstanding	$ 6		$ 6
Forecast
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Other Research and Development Expense					$ 93

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Restructuring and Related Activities (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2025	Sep. 30, 2024
Restructuring Cost and Reserve [Line Items]
Increase (Decrease) in Restructuring Reserve	$ 40
Restructuring and Related Cost, Incurred Cost	(26)
Employee Severance
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 14	$ 0