KNOXVILLE, TN ― The Tennessee Valley Authority reported $14.2 billion in total operating revenues on nearly 172 billion kilowatt-hours of electricity sales for fiscal year 2026, which ended September 30, 2026. Total operating revenues increased approximately 4% over last year, primarily as a result of higher sales volume and higher fuel cost recovery rates. Sales of electricity increased approximately 2% compared to last year, primarily driven by higher sales within the data processing, web hosting, and related services sector, higher sales within the residential and small commercial sector, and an increase in cooling degree days of 10 percent.
“Our strong fiscal results reflect the exceptional work of our employees delivering reliable power at the lowest feasible rates while supporting the Tennessee Valley’s continued growth,” said Mike Skaggs, TVA’s Chief Executive Officer. “Their commitment to safety, reliability and operational excellence enabled us to meet record demand, invest in our system, support our communities and power the region’s economic future.”
Fuel and purchased power expense increased $329 million compared with the prior year, primarily due to higher purchased power market prices and higher effective fuel rates resulting from higher natural gas prices, partially offset by higher levels of TVA generation.
Operating and maintenance expense decreased $264 million compared with the prior year, primarily due to IRA tax credits recorded in fiscal year 2026.
Depreciation and amortization expense decreased $288 million compared with the prior year, primarily due to depreciable life assumption changes for the Kingston and Cumberland coal-fired plants and the subsequent license renewal for the Browns Ferry Nuclear Plant.
Interest expense increased $65 million compared with the prior year, reflecting higher average balances and rates on long-term debt and the lease financing arrangement for Cumberland Combined Cycle Plant.
TVA’s net income was $2.1 billion for fiscal year 2026, which was $761 million higher than the prior year mainly due to higher operating revenues and lower overall operating expenses.
“TVA delivered exceptional financial results in fiscal year 2026, achieving strong net income to enable continued reinvestment in the power system,” said Tom Rice, TVA’s Chief Financial Officer. “This performance reflects our success in supporting economic growth, along with our disciplined cost management and efficiency efforts. As we continue the largest capital investment program in TVA’s history, our financial strength is central to supporting investment in existing assets, building new generation and transmission infrastructure, and reliably serving the Tennessee Valley’s growing energy needs while maintaining low rates for our customers.”
TVA’s executive leadership team will host a conference call and webcast today to discuss fiscal year 2026 results at 9:30 a.m. ET. Please click here to pre-register. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/investors.
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Selected Financial Data – Twelve Months Ended September 30 |
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Sales (millions of kWh)
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2026
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2025
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Sales
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171,705
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167,612
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Revenues and Expenses ($ million)
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Operating Revenues
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$ 14,218
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$ 13,672
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Fuel & Purchased Power Expense
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4,811
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4,482
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Operating & Maintenance Expense
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3,453
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3,717
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Interest Expense
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1,261
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1,196
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Net Income
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2,121
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1,360
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Net Cash Provided by (Used in) ($ million)
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Operating Activities
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$ 3,543
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$ 3,324
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Investing Activities
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(3,861)
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(4,661)
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Financing Activities
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463
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2,411
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TVA’s annual report on Form 10-K provides additional financial, operational, and descriptive information, including audited financial statements for the year ended September 30, 2026. TVA’s annual report and other SEC reports are available without charge on TVA’s website at http://www.tva.com/investors or on the SEC’s website at http://www.sec.gov.
This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to TVA’s most recent annual report on Form 10-K and quarterly report on Form 10-Q for a discussion of factors that could cause actual results to differ from those in the forward-looking statements.
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