The Tennessee Valley Authority recently said it has made the decision to continue to operate the existing combustion turbine natural gas units at its Johnsonville site in Humphreys County, Tennessee, until further notice and, separately, reported Fiscal Year 2025 financial results.
TVA cited increasing electricity demand in its decision to continue to operate the existing combustion turbine natural gas units at the Johnsonville site. Details of the decision and consideration of potential environmental impacts are posted in the Final Environmental Assessment at tva.com/nepa.
TVA prepared the EA and requested public comments as we consider all options for meeting increased power demand in our region. The 10 CT units were previously planned for retirement.
The units were built in 1974 and are designed to run during periods of peak energy demand to ensure grid reliability and a stable power supply. TVA will continue to run them in the same fashion.
Together, the units can supply up to 650 megawatts of energy during those peak periods.
TVA will continue the decommissioning of six other CT units at the Johnsonville site as planned.
Johnsonville is also home to 10 state-of-the-art aeroderivative gas turbines, which provide additional resiliency and flexibility to the system during peak demand with a capacity of about 530 megawatts, TVA noted.
TVA currently has more than 6,200 megawatts of additional generation either under construction or in consideration, including natural gas, solar, and energy storage.
TVA Reports FY 2025 Financial Results
On Nov. 13, TVA reported $13.7 billion in total operating revenues on 168 billion kilowatt-hours of electricity sales for fiscal year 2025, which ended on September 30, 2025.
Total operating revenues increased 11% over last year, primarily due to higher effective fuel and base rates and increased sales volume.
Sales of electricity increased approximately 3% compared to last year, 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.
“Across TVA, we have experienced leaders and subject matter experts in every part of the organization who help plan, build, operate, maintain and upgrade one of the most diverse energy systems in the nation. It’s a 24 hours a day, 7 days a week, 365 days a year job, and I could not be more proud of how the TVA team worked this past year to deliver this critical value while also identifying efficiencies and improvements that help the Tennessee Valley region pay electric rates that are lower than those in the vast majority of the nation,” said Don Moul, TVA’s Chief Executive Officer and President.
“Our business is growing across our entire service territory, and the low rates and high reliability that TVA provides, along with our economic development efforts, are a part of that growth,” said Tom Rice, TVA’s Chief Financial Officer. “With that growth comes additional sales and revenue, and that revenue is important as we invest it back into the fleet and in building new assets.”
Fuel and purchased power expense was $732 million higher, primarily due to higher demand for purchased power and higher cost coal and gas generation as a result of less availability of nuclear generation. Forty-seven percent of TVA’s power supply was carbon-free in fiscal year 2025 — coming from nuclear, hydroelectric, and other renewables. Operating and maintenance expense increased by $76 million primarily due to increases in payroll and benefit costs related to severance costs associated with Enterprise Transformation Program efforts.
Depreciation and amortization expense increased $133 million over the prior year, primarily as a result of an increase in amortization expense of decommissioning costs and finance leases and additions to net completed plant. Interest expense was $130 million higher for the year ended September 30, 2025, primarily driven by higher average balances and rates on long-term debt and an increase in interest on other financing leases.
TVA’s net income was $1.4 billion for the fiscal year 2025, which was $225 million higher than the prior year mainly due to higher operating revenues.
TVA has approximately 6,200 megawatts of new firm, dispatchable generation under construction or being evaluated for potential construction. TVA has added nearly 1,900 megawatts of new gas units at Paradise in Kentucky, Colbert in Alabama, and Johnsonville in Tennessee.
“As we continue to execute one of the most significant investment periods in TVA’s history, we remain focused on maintaining our financial discipline, building America’s energy future, and supporting our region’s growing energy needs,” said Rice.
