The Tennessee Valley Authority is reporting another year of financial and operational growth, posting $13.7 billion in total operating revenue for fiscal year 2025 — an 11% increase from the previous year.
The gains were driven by higher fuel and base rates, along with a roughly 3% increase in electricity sales, particularly to residential users, small businesses, and the expanding data-processing sector.
TVA recorded 168 billion kilowatt-hours in electricity sales for the year ending Sept. 30. Officials said the rise in demand reflects continued economic growth across the Tennessee Valley and the agency’s role in supporting new industry.
Leadership emphasized that TVA’s workforce and system investments continue to pay off, as CEO and President Don Moul said the agency’s employees work around the clock to manage one of the nation’s most diverse energy systems.
He said TVA’s focus on efficiency and system improvements helps keep electric rates lower than most of the nation while maintaining reliability.
CFO Tom Rice said TVA’s revenue growth mirrors that across its service territory, noting that strong reliability and competitive power costs remain key factors in attracting and retaining industry. He added that increased revenue is reinvested back into TVA’s generating fleet and new construction projects.
Financially, TVA saw higher expenses across several categories. Fuel and purchased power costs rose by $732 million, mainly due to greater demand and higher costs for coal- and gas-fired generation as nuclear availability declined.
Operating and maintenance costs increased by $76 million, partly tied to payroll, benefits, and severance related to TVA’s Enterprise Transformation Program.
Depreciation and amortization expenses rose by $133 million, driven by plant additions and higher decommissioning-related costs. Interest expenses were $130 million higher due to higher long-term debt balances and borrowing costs.
Despite rising costs, TVA finished the fiscal year with $1.4 billion in net income, up $225 million from FY24.
