The Tennessee Valley Authority on May 5 reported $6.6 billion in total operating revenues on nearly 82 billion kilowatt-hours of electricity sales for the six months ending March 31, 2026.
Total operating revenues for the Fiscal Year 2026 second quarter increased 2% over the same period last year, primarily due to higher sales volume and higher fuel cost recovery rates.
Sales of electricity increased approximately 1% compared to the same period last year, primarily driven by increases within the data processing, hosting, and related services sector.
Fuel and purchased power expense was $144 million higher in the first six months of fiscal year 2026 over the same period of the prior year, primarily due to higher purchased power market prices and higher effective fuel rates as a result of higher natural gas prices.
TVA noted that its 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 second quarter of fiscal year 2026.
Operating and maintenance expenses decreased by $118 million over the same period last year, driven primarily by tax credits and lower payroll and benefit costs. Depreciation and amortization expense was $37 million lower than the same period last year, primarily due to the Browns Ferry Nuclear Plant license renewal.
Interest expense was $44 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 $658 million for the six months ending on Mar. 31, 2026, $125 million higher than the same period of the prior year, primarily due to higher operating revenues.
“TVA delivered a strong first half to fiscal year 2026. Financial discipline and our diverse generation portfolio enabled us to reinvest in critical infrastructure and maintain low rates for the people of the Tennessee Valley,” said Tom Rice, TVA’s Chief Financial Officer and Executive Vice President. “TVA’s mission of service remains unwavering, and we are delivering strong results. With demand rising across the Valley, we are executing one of the largest capital programs in our history ― building 3,770 megawatts of new generation, extending licenses, and making other strategic asset decisions.”
On April 24, 2026, TVA’s Board named Mike Skaggs as TVA’s Interim President and Chief Executive Officer. He succeeds Don Moul, who announced his retirement early last month.
“It is good to be back at TVA. I truly believe the TVA team is one of the most talented and dedicated groups in the utility industry ― with broad energy experience, strong relationships and a solid leadership team that is focused on delivering results for the more than 10 million people in our region,” said Skaggs.
“In the weeks ahead, my focus will be on listening, getting up to speed quickly, and ensuring we maintain the operational excellence that people throughout our seven-state region depend on every day. Strengthening relationships with our local power companies, directly served customers, and partners at every level remains a top priority,” he said.
Skaggs continued, “TVA plays a vital role in America’s energy future. We will continue to support reliable growth across the region while maintaining strong financial performance. That includes evaluating opportunities in new nuclear generation, updating our long-range resource and strategic asset plans, and ensuring our rate structure continues to support load growth while protecting the Valley’s ratepayers.”
Skaggs has a strong understanding of TVA’s important role in powering the Tennessee Valley region, TVA noted.
Having served as TVA’s Chief Operating Officer from 2018 to 2021, he played key roles in some of the agency’s most significant nuclear milestones, including the completion and startup of Watts Bar Nuclear Plant Unit 2, restoration of a Browns Ferry unit, and successful management of two major steam generator replacement projects.
"His leadership and deep knowledge of nuclear generation align directly with TVA’s strategic focus on expanding and modernizing its nuclear fleet to support the region’s growing energy needs," TVA added.
Skaggs joined TVA in 1994 as a project manager at Watts Bar Nuclear Plant and held multiple executive leadership positions across nuclear operations and construction. His assignments included roles in TVA’s corporate offices as well as at the Browns Ferry, Sequoyah, and Watts Bar nuclear stations, where he helped strengthen performance, enhance operational discipline, and deliver complex capital projects safely and efficiently.
