Tennessee Valley Authority Power Bonds 1998 Series D due June 1, 2028 (TVC)

The Tennessee Valley Authority (TVA) is the company behind the symbol TVC, which on the New York Stock Exchange marks its 1998 Series D power bonds due in 2028 1.

TVA reported operating revenues of $10.0 billion for the nine months ended 30 June 2026, against $9.8 billion a year earlier 2. Net income was $965 million, up from $745 million 2.

TVA says revenue rose because of higher fuel cost recovery rates, driven by higher natural gas prices, and higher sales to data processing and web hosting customers 2.

On 20 August 2026 the TVA board approved its 2026 Integrated Resource Plan, which suggests the region needs 11 to 32 gigawatts of added generating capacity between now and 2040 3.

Mike Skaggs has led TVA as interim president and chief executive since 24 April 2026 25.

TVA was created in 1933 by federal legislation, on a proposal from President Franklin Roosevelt 1. Its purposes were to improve navigation on the Tennessee River, reduce flood damage and develop the region's economy, and to supply the electricity generated at the facilities it operates 1.

Congress paid for everything at first 1. Direct appropriations for the power program ended in 1959, and appropriations for stewardship and economic development ended in 1999 1. Since 1999 TVA has funded its operations almost entirely from the sale of electricity and power system financings 1.

TVA also repaid part of the government's early investment in its power plants 1. It met its requirement to repay $1.0 billion of that investment in 2014, so the repayment is no longer part of rate setting 1.

In August 2011 the board began putting its resource plan in place 6. It authorized completing one unit at the Bellefonte nuclear plant, a $4.9 billion project expected to generate 1,260 megawatts, and approved the purchase of a 909 megawatt gas plant in Mississippi 6.

Revenue slipped to $12.1 billion in 2023 from $12.5 billion in 2022, mainly because milder weather cut sales volume and lower natural gas prices cut fuel rates 7. Winter Storm Elliott in late December 2022 forced rolling outages when several generating facilities failed to operate as planned 7.

In 2023 TVA documented its final decision to retire the two coal-fired units at Cumberland, with a 1,450 megawatt combined cycle plant to replace the first 7.

Revenue then jumped 11.0 percent to $13.7 billion in 2025 from $12.3 billion in 2024 1. TVA credits higher fuel rates, a 5.25 percent base rate increase from 1 October 2024 and higher sales volume 1. Net income rose to $1,360 million from $1,135 million 1.

Demand hit a record in the winter of 2025 1. On 22 January 2025 TVA reached an all-time peak of about 35,430 megawatts, over 800 megawatts above the previous peak set in January 2024 1.

The board then lost its quorum on 1 April 2025, leaving three members 1. Utility Dive reported that President Trump fired three board members in July after the board authorized retiring coal units at Cumberland and Kingston 4. A new board with a quorum took office in January 2026 2.

Who buys the power

TVA supplies power mostly at wholesale to local power companies, which pass it on to homes and businesses 1. It had contracts with 153 of them at 30 September 2025, and they brought in about 90 percent of 2025 operating revenues 1.

Directly served industrial customers brought in about eight percent, and the two largest local companies, Memphis Light, Gas and Water and Nashville Electric Service, nine and eight percent 1. About 10 million people live in the seven-state area it serves 1.

Only the TVA board sets its rates, and no state commission or court reviews them 1. In 2025 electricity brought in $13.5 billion, virtually all of revenue 1.

Power plants

In 2025 nuclear plants supplied 33 percent of TVA's power, gas and oil 24 percent, coal 15 percent, hydroelectric dams 8 percent and purchased power 20 percent 1.

TVA runs three nuclear sites with seven units, four coal plants with 24 active units, and a gas fleet of 12,643 megawatts 1. New gas projects are under way at Cumberland, Kingston, Allen and Caledonia 1.

People in charge

Mike Skaggs is interim chief executive until 24 April 2027, with an option to extend 2. He joined TVA in 1994 and was its chief operating officer from 2018 to 2021, Public Power reported 5.

Mitch Graves became board chair on 27 February 2026, and Jeff Hagood is chair elect 2.

Rivals and problems

TVA says its service area is largely free of competition, protected by the "fence" and the anti-cherrypicking provision, but federal action could limit that protection 1.

On 20 July 2026 Appalachian Voices and the Sierra Club sent a notice of intent to sue over the Kingston gas and coal plants, alleging Clean Air Act violations 2.

The TVC bonds

TVC marks the 1998 Series D Putable Automatic Rate Reset Securities, due June 2028 1. Their coupon has been reset eight times, from 6.750 percent to 2.134 percent 1.

After $318 million were redeemed, $256 million were outstanding at 30 September 2025 1. The U.S. government does not guarantee TVA's bonds, which Moody's, Fitch and S&P rated Aa1, AA+ and AA+ 12.

The umbrella, in words

TVA is a wholly owned corporate agency of the United States and is not authorized to issue equity securities 1. Members of its board are appointed by the President and confirmed by the Senate 1.

The annual report lists no operating subsidiaries here 1. It generally does not own land itself, because it acquires real property in the name of the United States 1.

TVA has financed some gas plants through leases with special purpose entities it consolidates, such as Johnsonville Aeroderivative Combustion Turbine Generation LLC 1. It may have up to $30.0 billion of bonds outstanding at a time 1.

On 20 August 2026 the board approved a fiscal 2027 budget with more than $13 billion planned through FY29 to maintain reliability and expand capacity 3. It covers construction of 4,120 megawatts of new TVA-owned capacity and 3,000 megawatts under evaluation 3.

The plan the board approved suggests 11 to 32 gigawatts of new capacity are needed by 2040 3. Utility Dive reported that the draft sees 7 to 26 gigawatts of gas, up to 5 of nuclear, and a pause in wind additions 4.

TVA applied to the Nuclear Regulatory Commission for a construction permit for a BWRX-300 small modular reactor at Clinch River, and the application was accepted for review in July 2025 1. In December 2025 TVA and partners were selected to negotiate an approximate $400 million Energy Department grant 2.

In February 2026 the board authorized operating the Kingston and Cumberland coal units, and TVA asked Tennessee in March 2026 to allow operation past 31 December 2028 2. It signed two battery storage agreements, expected to start by summer 2029 and to total over $1.3 billion 2.