Tennessee Valley Authority Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Tennessee Valley Authority submitted its 10-Q filing for the quarter ending December 31, 2023, detailing financial positions and key metrics.</b>

AI Summary

Tennessee Valley Authority (TVC) filed a Quarterly Report (10-Q) with the SEC on January 30, 2024. The filing covers the quarterly period from October 1, 2023, to December 31, 2023. It includes financial data for the periods ending December 31, 2023, and September 30, 2023. Key financial statement items such as Power Program Appropriation Investment, Power Program Retained Earnings, and Nonpower Programs Appropriation Investment Net are reported. The filing references specific dates for financial reporting, including 2023-12-31, 2023-09-30, 2022-12-31, and 2022-09-30. It also details commodity contracts and other assets as of December 31, 2023, and September 30, 2023.

Why It Matters

For investors and stakeholders tracking Tennessee Valley Authority, this filing contains several important signals. This 10-Q provides a snapshot of TVA's financial health and operational status for the most recent fiscal quarter, crucial for investors and stakeholders to assess performance. The detailed financial data allows for comparison with previous periods, enabling an understanding of trends in revenue, assets, and liabilities.

Risk Assessment

Risk Level: medium — Tennessee Valley Authority shows moderate risk based on this filing. The filing is a standard 10-Q, which typically contains detailed financial information but does not inherently signal significant positive or negative events beyond routine reporting. The risk is medium due to the inherent complexities of financial reporting and the potential for unforeseen issues in the utility sector.

Analyst Insight

Review the detailed financial statements and segment information to understand the drivers of any changes in assets, liabilities, and equity compared to prior periods.

Key Numbers

• 2023-12-31 — Period End Date (Conformed Period of Report)
• 2023-10-01 — Quarter Start Date (Reporting Period)
• 2022-12-31 — Prior Year Period End Date (Comparative Financial Data)
• 2022-10-01 — Prior Year Quarter Start Date (Comparative Financial Data)

Key Players & Entities

• Tennessee Valley Authority (company) — Filer
• 2023-12-31 (date) — Conformed Period of Report
• 2024-01-30 (date) — Filed as of date
• 4911 (other) — Standard Industrial Classification for Electric Services
• 400 WEST SUMMIT HILL DRIVE (address) — Business Address Street 1
• KNOXVILLE (location) — Business Address City
• TN (location) — Business Address State
• 37902 (postal_code) — Business Address Zip

FAQ

Key Dates

• 2023-12-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-01-30: Filing Date — Date the 10-Q was officially submitted to the SEC.

Filing Documents

• tve-20231231.htm (10-Q) — 1530KB
• tve-123123xex101executives.htm (EX-10.1) — 161KB
• tve-123123xex3111stquarter.htm (EX-31.1) — 11KB
• tve-123123xex3121stquarter.htm (EX-31.2) — 11KB
• tve-123123xex3211stquarter.htm (EX-32.1) — 6KB
• tve-123123xex3221stquarter.htm (EX-32.2) — 6KB
• image_0a.jpg (GRAPHIC) — 32KB
• tve-20231231_g1.jpg (GRAPHIC) — 59KB
• tve-20231231_g2.jpg (GRAPHIC) — 61KB
• tve-20231231_g3.jpg (GRAPHIC) — 33KB
• tve-20231231_g4.jpg (GRAPHIC) — 45KB
• tve-20231231_g5.jpg (GRAPHIC) — 43KB
• tve-20231231_g6.jpg (GRAPHIC) — 43KB
• tve-20231231_g7.jpg (GRAPHIC) — 21KB
• tve-20231231_g8.jpg (GRAPHIC) — 23KB
• tve-20231231_g9.jpg (GRAPHIC) — 22KB
• 0001376986-24-000005.txt (&nbsp;) — 11385KB
• tve-20231231.xsd (EX-101.SCH) — 102KB
• tve-20231231_cal.xml (EX-101.CAL) — 78KB
• tve-20231231_def.xml (EX-101.DEF) — 544KB
• tve-20231231_lab.xml (EX-101.LAB) — 969KB
• tve-20231231_pre.xml (EX-101.PRE) — 701KB
• tve-20231231_htm.xml (XML) — 1638KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ............................................................................................................................................. 7 Consolidated Statements of Operations (Unaudited)............................................................................................................ 7 Consolidated Statements of Comprehensive Income (Loss) (Unaudited)............................................................................ 7 Consolidated Balance Sheets (Unaudited)........................................................................................................................... 8 Consolidated Statements of Cash Flows (Unaudited).......................................................................................................... 10 Consolidated Statements of Changes in Proprietary Capital (Unaudited)............................................................................ 11 Notes to Consolidated Financial Statements (Unaudited).................................................................................................... 12

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS... 40 Executive Overview ............................................................................................................................................................... 40 Results of Operations ............................................................................................................................................................ 41 Liquidity and Capital Resources ............................................................................................................................................ 46 Key Initiatives and Challenges.............................................................................................................................................. 48 Environmental Matters.......................................................................................................................................................... 49 Legal Proceedings................................................................................................................................................................ 50 Off-Balance Sheet Arrangements.......................................................................................................................................... 50 Critical Accounting Estimates ................................................................................................................................................ 50 New Accounting Standards and Interpretations .................................................................................................................... 50 Legislative and Regulatory Matters....................................................................................................................................... 50 ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ....................................

- OTHER INFORMATION

PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS .................................................................................................................................................. 51 ITEM 1A. R ISK FACTORS............................................................................................................................................................ 51 ITEM 5. OTHER INFORMATION.................................................................................................................................................. 51 ITEM 6. EXHIBITS ........................................................................................................................................................................ 52 SIGNATURES ............................................................................................................................................................................... 53 2 Table of Contents GLOSSARY OF COMMON ACRONYMS Following are definitions of some of the terms or acronyms that may be used in this Quarterly Report on Form 10-Q for the quarter ended December 31, 2023 (the "Quarterly Report"): Term or Acronym Definition AOCI Accumulated other comprehensive income (loss) ARO Asset retirement obligation ART Asset Retirement Trust Bonds Bonds, notes, or other evidences of indebtedness Bull Run Bull Run Fossil Plant CCR Coal combustion residuals Cumberland Cumberland Fossil Plant CVA Credit valuation adjustment CY Calendar year DCP Deferred Compensation Plan EO(s) Executive Order(s) FERC Federal Energy Regulatory Commission FHP Financial Hedging Program GAAP Accounting principles generally accepted in the United States of America GAC Grid access charge GEH GE Hitachi Nuclear Energy Holdco John Sevier Holdco LLC Jacobs Jacobs Engineering Group, Inc. JSCCG John Sevier Combined Cycle Generation LLC kWh Kilowatt hours LPCs Local power company customers MLGW Mem

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TENNESSEE VALLEY AUTHORITY CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months Ended December 31 (in millions) 2023 2022 Operating revenues Revenue from sales of electricity $ 2,731 $ 2,963 Other revenue 34 52 Total operating revenues 2,765 3,015 Operating expenses Fuel 496 615 Purchased power 359 491 Operating and maintenance 867 827 Depreciation and amortization 521 533 Tax equivalents 133 151 Total operating expenses 2,376 2,617 Operating income 389 398 Other income, net 23 16 Other net periodic benefit cost 23 51 Interest expense 262 262 Net income $ 127 $ 101 The accompanying notes are an integral part of these consolidated financial statements. TENNESSEE VALLEY AUTHORITY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) Three Months Ended December 31 (in millions) 2023 2022 Net income $ 127 $ 101 Other comprehensive income (loss) Net unrealized gain on cash flow hedges 20 71 Net unrealized gain reclassified to earnings from cash flow hedges ( 19 ) ( 34 ) Total other comprehensive income 1 37 Total comprehensive income $ 128 $ 138 The accompanying notes are an integral part of these consolidated financial statements. 7 Table of Contents TENNESSEE VALLEY AUTHORITY CONSOLIDATED BALANCE SHEETS (Unaudited) (in millions) ASSETS December 31, 2023 September 30, 2023 Current assets Cash and cash equivalents $ 498 $ 501 Accounts receivable, net 1,593 1,745 Inventories, net 1,182 1,108 Regulatory assets 251 178 Other current assets 152 134 Total current assets 3,676 3,666 Property, plant, and equipment Completed plant 67,073 68,199 Less accumulated depreciation ( 34,445 ) ( 35,871 ) Net completed plant 32,628 32,328 Construction in progress 3,425 3,238 Nuclear fuel 1,364 1,344 Finance leases 562 572 Total property, plant, and equipment, net 37,979 37,482 Investment funds 4,472 4,123 Regulatory and other long-term assets Regulatory assets 5,551 5

View Full Filing

View this 10-Q filing on SEC EDGAR