TVA Reports Third Quarter Fiscal Year 2026 Financial Results

by Staff
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KNOXVILLE, TN ― The Tennessee Valley Authority reported $10 billion in total operating revenues on nearly 122 billion kilowatt-hours of electricity sales for the nine months ending June 30, 2026. Total operating revenues increased approximately 3% over the same period last year, primarily due to higher fuel cost recovery rates and higher sales volume. Sales of electricity increased approximately 1% compared to the same period last year, primarily driven by increases within the data processing, web hosting, and related services sector.

“As we sharpen our strategic focus in key areas, we continue to deliver TVA’s longstanding mission of service — namely the affordable and reliable electricity our region needs for ongoing economic growth,” said TVA’s Interim President and CEO Mike Skaggs. “Our third quarter results reflect our employees’ dedication to operational and financial excellence, as well as the strength of our partnerships at the federal, state and community levels.”

More on TVA’s third-quarter financial results:

Fuel and purchased power expense was $253 million higher in the first nine 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’s diverse energy portfolio ― including nuclear, natural gas, coal, hydroelectric, renewable, and storage technologies ― enabled us to maintain system reliability and successfully meet demand throughout the third quarter of fiscal year 2026.

Operating and maintenance expenses decreased by $76 million over the same period last year, driven primarily by tax credits.

Depreciation and amortization expense was $161 million lower than the same period last year, primarily due to asset-related decisions, including the Browns Ferry Nuclear Plant license extension.

Interest expense was $53 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 $965 million for the nine months ending on June 30, 2026, $220 million higher than the same period of the prior year, primarily due to higher operating revenues.

“TVA continues to support growing power demand with sound financial discipline as reflected in the strong financial performance for the first nine months of fiscal year 2026,” said Tom Rice, TVA’s Chief Financial Officer. “Efficiency efforts and revenue growth enable strategic investments in our balanced portfolio of generation resources. This disciplined approach positions us to maintain reliability and affordability and sustains long-term financial health as the region continues to grow.”

A replay and transcript will also be available for one year on TVA’s website at https://www.tva.com/investors.

Selected Financial Data – Nine Months Ended June 30
Sales, Revenues & Expenses
2026
2025
Sales (millions of kWh)
 121,771
 120,527
Operating Revenues ($ millions)
$ 10,037
$ 9,758
Fuel & Purchased Power Expense
 3,443
 3,190
Operating & Maintenance Expense
 2,695
 2,771
Taxes, Depreciation, Other Expenses
 2,001
 2,172
Interest Expense
 933
 880
Net Income
 965
 745
Net Cash Provided by / (Used in) ($ millions)
Operating Activities
$ 1,883
$ 2,076
Investing Activities
(2,999)
(3,628)
Financing Activities
1,024
1,551

Media Release/Melissa Greene, TVA Media Relations

 

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