The Tennessee Valley Authority on Feb. 3 reported $3 billion in total operating revenues on 40 billion kilowatt-hours of electricity sales for the three months ending on Dec. 31, 2025.
Total operating revenues increased 4.4% over the same period last year, primarily due to higher sales volume. Sales of electricity increased approximately 4% compared to the same period of the prior year, primarily driven by weather impacts and increases within the data processing, hosting, and related services sector.
"TVA is leading America’s energy independence and security,” said TVA President and CEO Don Moul. “These results reflect more than financial strength ― they underscore TVA’s role in shaping the nation’s future. Our mission is clear: deliver reliable, affordable power while driving innovation that positions the U.S. at the forefront of the global energy and AI revolution.”
"That mission was put to the test when Winter Storm Fern struck ― bringing icy conditions across a large part of TVA’s service territory, and these are among the most challenging scenarios for utilities. TVA’s investments in resilience ensured the grid stood strong, and the TVA team worked around the clock for the people of the region," TVA noted.
“Beginning Sunday, January 25, TVA crews worked to restore customer connection points supplying electricity to local power companies. By Wednesday, January 28, 2026, all the connection points were restored, further clearing the way for those local power providers to complete restoration of their systems,” Moul said. “We continue to coordinate closely with the local power distributors and are supporting their efforts to restore their systems and help their communities, including providing drones to evaluate damage and delivering other supplies. Thank you to all those line workers, site and field personnel, and system operators who responded immediately ― and continue to respond ― to bring power back to storm-affected areas as quickly as possible.”
Fuel and purchased power expense was $25 million higher in the first three months of fiscal year 2026 over the same period of the prior year, primarily due to higher purchased power market prices and higher demand for energy as compared to the same period of the prior year.
TVA’s diverse energy portfolio ― including nuclear, natural gas, hydroelectric and other renewables, coal, and storage technologies ― enabled it to maintain system reliability and successfully meet demand throughout the first quarter of fiscal year 2026, it noted.
Operating and maintenance expenses decreased by $56 million over the same period last year, driven primarily by IRA tax credits recorded in the three months ended Dec. 31, 2025.
Depreciation and amortization expense was $14 million higher than the same period last year, primarily due to an increase in depreciation expense related to net completed plant additions.
Interest expense was $29 million higher than in the same period last year, primarily driven by higher average balances and rates on long-term debt. TVA’s net income was $266 million for the three months ending on Dec. 31, 2025, $141 million higher than the same period of the prior year, primarily due to higher operating revenues.
"TVA delivered a solid start to fiscal year 2026, supported by growing power demand and financial discipline,” said Tom Rice, TVA’s Chief Financial Officer. “Our strong operating performance and revenue growth enable us to reinvest in critical infrastructure and fund new generation resources to support the national mandate to achieve energy dominance. As we navigate one of the most significant investment periods in TVA’s history, we remain focused on maintaining long-term financial strength while meeting the region’s growing energy needs.”
