Tennessee Valley Authority Reports Strong Q3 Performance for FY 2025 with Increased Electricity Sales

TVA Reports Third Quarter Fiscal Year 2025 Financial Results

The Tennessee Valley Authority (TVA), a leading public power provider, recently announced its financial performance for the third quarter of fiscal year 2025. The results demonstrate a remarkable resilience and adaptability in the face of increasing demand for electricity across its service area. As part of its commitment to powering growth in the Tennessee Valley region, TVA reported total operating revenues reaching a significant $9.8 billion.

Revenue Insights

For the nine months that concluded on June 30, 2025, TVA's electricity sales amounted to 121 billion kilowatt-hours. This figure marks an 11% increase in total revenues compared to the previous year, driven primarily by a 3% rise in electricity sales. The boost in sales can be attributed to heightened demand from residential customers and small businesses, as well as growth in sectors like data processing and hosting services.

Don Moul, TVA's President and CEO, remarked on the importance of responding to the region’s growth, stating, "Our region continues to experience population and load growth, and TVA is rising to meet this moment. To power growth and prosperity, TVA is making some of the largest capital investments in our history."

Significant Capital Investments

To support future growth, TVA is actively investing in the construction of new energy generation. Approximately 6,200 megawatts of new firm, dispatchable power generation capacity is either under construction or under consideration for development. This expansion includes nearly 1,900 megawatts of new gas units across multiple states, sufficient to power over 1.1 million homes. These initiatives are critical, not just for meeting current energy needs but also for preparing the region's energy infrastructure for the future, especially in emerging industries such as artificial intelligence and nuclear technologies.

Financial Overview

However, the financial landscape is not without its challenges. TVA faced a significant increase in fuel and purchased power expenses, amounting to $490 million more than the same period last year, largely due to the decreased availability of nuclear power generation. Operating and maintenance expenses also jumped by $100 million, primarily from rising payroll costs and an increase in nuclear outage days. Furthermore, depreciation and amortization expenses surged by $98 million, reflecting ongoing adjustments in asset management and financial operations.

Despite these challenges, TVA reported a net income of $745 million for the nine-month period ending June 30, 2025, which is $130 million higher than the previous year. This positive outcome reinforces TVA's commitment to financial discipline and operational excellence.

Tom Rice, TVA's Chief Financial Officer, noted, "TVA delivered another quarter of strong financial performance, driven by growing power demand, higher sales, and continued focus on financial discipline. Our capital plan remains on track, and we are strategically managing financing to support one of the largest investment periods in TVA's history."

Future Outlook

Looking to the future, TVA is poised to expand its capabilities further. The authority has plans to evaluate additional energy projects that align with its long-term commitment to providing reliable, affordable, and sustainable energy. TVA officers emphasize the importance of maintaining a diversified energy portfolio, which now includes substantial contributions from carbon-free sources—46% of TVA's power supply in Q3 was generated through nuclear, hydroelectric, solar, and wind power.

Engagement and Transparency

As part of its transparency efforts, TVA will hold a conference call and webcast today at 8:30 a.m. ET. This session will provide further insights into the financial results and strategic plans for both current and potential stakeholders. For those interested, a replay of the webcast and detailed transcripts will be accessible on TVA’s official website.

The Tennessee Valley Authority remains steadfast in its mission to serve approximately 10 million residents across seven southeastern states, ensuring reliability and affordability while driving innovations in energy.

For ongoing updates and further information, visit TVA’s website.

Conclusion

The third quarter financial results highlight TVA’s strong operational framework, with a keen eye toward future development and stability. Through significant capital investments and a focus on sustainable practices, TVA is ready to navigate the evolving energy landscape and continue contributing to the growth of the Tennessee Valley region.