Tennessee Valley Authority (TVC) risk factors, FY2025 10-K

Tennessee Valley Authority's FY2025 10-K, filed Nov 13, 2025, lists 47 risk factors in 6 groups. Against the prior year's 48: 4 new, 5 dropped, 22 substantially reworded.

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Risk factors listed
476 groups
New this year
4vs 48 last year
Dropped
5since the prior 10-K
Substantially reworded
22of those kept
Section length
11k wordsItem 1A

What the changes say

  • TVA faces heightened risks from congressional actions, including potential asset divestment and rate-setting changes.
  • The loss of a TVA Board quorum impairs strategic decision-making.
  • Nuclear operations face component availability and fuel cost pressures.

What changed since the prior 10-K

New

  • NewREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    TVA may become subject to other laws, regulations, or orders or be negatively affected by congressional actions or inactions

    Congressional actions could force a sale or privatization of TVA assets, revoke the Board's rate-setting authority, or restrict access to funds.

  • NewOPERATIONAL RISKS

    disposal of the spent fuel itself. Such a requirement would cause TVA to incur substantial expense, including substantial capital expenditures, and could cause TVA to change how it operates its nuclear plants

    Decreasing availability of specialized nuclear components, intellectual property, and nuclear fuel could force operational changes and substantial expenses.

  • NewFINANCIAL, ECONOMIC, AND MARKET RISKS

    TVA may be subject to additional liability or be required to purchase additional liability insurance in the future to address losses of legal liability protections

    Disruptions in insurance markets could increase deductibles and premiums or leave TVA with unrecovered legal liabilities.

  • NewFINANCIAL, ECONOMIC, AND MARKET RISKS

    When a particular series of Bonds is offered through underwriters, those underwriters may attempt to make a market in

    Investor and underwriter restrictions on fossil fuels or carbon metrics could limit the market and pricing for TVA Bonds.

Dropped

  • DroppedREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    New, existing, or amended laws, regulations, and administrative or executive orders, or congressional actions or inactions, create certain risks due to unique aspects of TVA’s structure and business

  • DroppedOPERATIONAL RISKS

    TVA may not be able to meet its carbon reduction aspirations, which may result in additional capital expenditures or higher operating expense

    Costs of complying with unique federal laws and regulations governing TVA.

  • DroppedOPERATIONAL RISKS

    as an equipment manufacturer's inability to meet a guideline, specification, or requirement

  • DroppedCYBERSECURITY AND INFORMATION TECHNOLOGY RISKS

    cybersecurity, negatively affect TVA’s cash flows, results of operations, financial condition, and reputation, and pose health and safety risks to TVA personnel and the customers and communities that TVA serves

  • DroppedFINANCIAL, ECONOMIC, AND MARKET RISKS

    Changes in technology could affect relationships with customers, require TVA to change how it conducts its operations, or impact TVA's financial condition

Reworded

  • 84% rewrittenREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    TVA may become subject to new environmental laws, regulations, or orders or may be required to expend significant funds in the future to comply with current laws, regulations, or orders

    Added specific references to CCR management, air or water pollution standards, and natural gas or transmission regulation.

    Was: TVA may become subject to additional environmental regulations or may be required to expend significant funds in the future to comply with current regulations

  • 79% rewrittenREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    TVA's governmental status may interfere with its ability to quickly respond to the needs of its current or prospective customers or to act solely in the interest of its ratepayers and may impose additional obligations on TVA

    Added the federal requirement for TVA to use revenues for flood control and navigation of the Tennessee River.

    Was: TVA's governmental status may interfere with its ability to quickly respond to the needs of its current or potential customers or to act solely in the interest of its ratepayers

  • 74% rewrittenHUMAN CAPITAL AND MANAGEMENT RISKS

    A prolonged loss of a quorum of the TVA Board could limit TVA's ability to adapt to changing business conditions

    Updated to reflect that the TVA Board actually lost a quorum on April 1, 2025, and currently has only three members.

    Was: Loss of a quorum of the TVA Board could limit TVA's ability to adapt to changing business conditions

  • 69% rewrittenFINANCIAL, ECONOMIC, AND MARKET RISKS

    The market for TVA Bonds might be limited

    Removed underwriter market-making details from the prior year risk text.

  • 65% rewrittenOPERATIONAL RISKS

    TVA may experience delays and incur additional costs in its major projects or may be unable to obtain necessary regulatory approval for them

    Expanded to include capital improvements for transmission, distribution, and CCR facilities alongside natural gas-fired generation projects.

  • 62% rewrittenOPERATIONAL RISKS

    TVA relies on certain assumptions about the future that may prove inaccurate, including when determining the appropriate mix of generation assets and when and to what extent to update its transmission system

    Clarified specific generation-mix modeling factors including nuclear availability, coal and gas costs, and air pollution controls.

    Was: TVA relies on certain assumptions about the future that may prove inaccurate, including when determining the appropriate mix of generation assets

  • 54% rewrittenOPERATIONAL RISKS

    Global conflicts, terrorist activities, or military actions could adversely affect TVA’s business

    Added specific mentions of conflicts in Ukraine and Israel and changed security impacts from component costs to enhanced measures.

  • 54% rewrittenOPERATIONAL RISKS

    If TVA were to have to make additional contributions to the NDT, the contributions may negatively affect TVA's cash flows, results of operations, and financial condition

    Minor edits leaving the core nuclear regulatory and waste disposal risks substantially unchanged.

  • 51% rewrittenHUMAN CAPITAL AND MANAGEMENT RISKS

    Changes in the membership of the TVA Board and TVA senior management could impact how TVA operates

  • 47% rewrittenOPERATIONAL RISKS

    TVA faces certain risks arising solely from its operation of nuclear units

  • 45% rewrittenCYBERSECURITY AND INFORMATION TECHNOLOGY RISKS

    TVA’s facilities and information infrastructure may not operate as planned due to cyber threats to TVA’s assets and operations

  • 44% rewrittenRISKS RELATED TO THE ENVIRONMENT AND CATASTROPHIC EVENTS

    TVA's cost reduction efforts may not be successful

  • 41% rewrittenFINANCIAL, ECONOMIC, AND MARKET RISKS

    TVA is subject to a variety of market risks that may negatively affect TVA's cash flows, results of operations, and financial condition

  • 40% rewrittenHUMAN CAPITAL AND MANAGEMENT RISKS

    Failure to attract and retain an appropriately qualified workforce may negatively affect TVA's results of operations

    Was: Failure to attract and retain an appropriately qualified, diverse, and inclusive workforce may negatively affect TVA's results of operations

  • 35% rewrittenREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    TVA may become subject to additional NERC requirements

  • 30% rewrittenREGULATORY, LEGISLATIVE, AND LEGAL RISKS

    TVA is involved in various legal and administrative proceedings, the outcomes of which may affect TVA's finances and operations

  • 28% rewrittenOPERATIONAL RISKS

    TVA may not be able to operate one or more of its nuclear power units

  • 28% rewrittenOPERATIONAL RISKS

    TVA's management and operation of CCR facilities expose it to additional costs and risks

  • 26% rewrittenCYBERSECURITY AND INFORMATION TECHNOLOGY RISKS

    Cyber attacks on third parties or the failure of their technology infrastructure could interfere with or harm TVA

  • 25% rewrittenRISKS RELATED TO THE ENVIRONMENT AND CATASTROPHIC EVENTS

    TVA may have difficulty adapting its business model to changes in the utility industry and customer preferences

  • 24% rewrittenFINANCIAL, ECONOMIC, AND MARKET RISKS

    Demand for electricity could be higher or lower in the future than TVA currently expects or is financially planning for

  • 22% rewrittenOPERATIONAL RISKS

    TVA's supplies of fuel, purchased power, or other critical items may be disrupted or obtained at a higher cost than planned

All 47 risk factors

Headings as the filing states them, in filing order.

REGULATORY, LEGISLATIVE, AND LEGAL RISKS

  1. 01TVA may become subject to new environmental laws, regulations, or orders or may be required to expend significant funds in the future to comply with current laws, regulations, or orders84% rewritten
  2. 02TVA may become subject to other laws, regulations, or orders or be negatively affected by congressional actions or inactionsNew
  3. 03TVA's governmental status may interfere with its ability to quickly respond to the needs of its current or prospective customers or to act solely in the interest of its ratepayers and may impose additional obligations on TVA79% rewritten
  4. 04TVA is involved in various legal and administrative proceedings, the outcomes of which may affect TVA's finances and operations30% rewritten
  5. 05TVA could lose its protected service territory
  6. 06TVA may become subject to additional NERC requirements35% rewritten

OPERATIONAL RISKS

  1. 07TVA's management and operation of CCR facilities expose it to additional costs and risks28% rewritten
  2. 08TVA relies on certain assumptions about the future that may prove inaccurate, including when determining the appropriate mix of generation assets and when and to what extent to update its transmission system62% rewritten
  3. 09TVA may experience delays and incur additional costs in its major projects or may be unable to obtain necessary regulatory approval for them65% rewritten
  4. 10TVA faces certain risks arising solely from its operation of nuclear units47% rewritten
  5. 11If TVA were to have to make additional contributions to the NDT, the contributions may negatively affect TVA's cash flows, results of operations, and financial condition54% rewritten
  6. 12disposal of the spent fuel itself. Such a requirement would cause TVA to incur substantial expense, including substantial capital expenditures, and could cause TVA to change how it operates its nuclear plantsNew
  7. 13TVA may not be able to operate one or more of its nuclear power units28% rewritten
  8. 14Physical attacks, threats, or other interference could damage or interfere with TVA's facilities and operations
  9. 15TVA's assets or their supporting infrastructure may not operate as planned
  10. 16TVA's operations present significant safety risks that are not able to be completely eliminated
  11. 17TVA's service reliability could be affected by problems at other utilities or at TVA facilities, or by the increase in intermittent sources of power
  12. 18TVA's supplies of fuel, purchased power, or other critical items may be disrupted or obtained at a higher cost than planned22% rewritten
  13. 19Global conflicts, terrorist activities, or military actions could adversely affect TVA’s business54% rewritten

CYBERSECURITY AND INFORMATION TECHNOLOGY RISKS

  1. 20TVA’s facilities and information infrastructure may not operate as planned due to cyber threats to TVA’s assets and operations45% rewritten
  2. 21Cyber attacks on third parties or the failure of their technology infrastructure could interfere with or harm TVA26% rewritten
  3. 22The failure of TVA’s information technology systems could have adverse consequences to TVA
  4. 23The emergence of artificial intelligence technology could create challenges for TVA, and TVA may not be able to adopt the use of technology in step with private utilities
  5. 24TVA could lose its competitive edge if it fails to keep up with the changes in technology

FINANCIAL, ECONOMIC, AND MARKET RISKS

  1. 25Demand for electricity could be higher or lower in the future than TVA currently expects or is financially planning for24% rewritten
  2. 26TVA could have to make significant future contributions to fund its qualified pension plan, and the increasing costs of the plan and employee benefits could adversely affect TVA's results of operations, financial condition, or cash flows
  3. 27TVA’s reliance on debt markets may make TVA more vulnerable to being unable to meet cash requirements than private utilities that can issue equity securities
  4. 28TVA's debt ceiling may limit TVA's ability to carry out its business in the event that TVA were to approach or reach it
  5. 29TVA, together with owners of TVA securities, may be impacted by downgrades of TVA's credit ratings
  6. 30TVA is subject to a variety of market risks that may negatively affect TVA's cash flows, results of operations, and financial condition41% rewritten
  7. 31TVA may be subject to additional liability or be required to purchase additional liability insurance in the future to address losses of legal liability protectionsNew
  8. 32The market for TVA Bonds might be limited69% rewritten
  9. 33When a particular series of Bonds is offered through underwriters, those underwriters may attempt to make a market inNew
  10. 34Payment of principal and interest on TVA securities is not guaranteed by the U.S government

HUMAN CAPITAL AND MANAGEMENT RISKS

  1. 35Failure to attract and retain an appropriately qualified workforce may negatively affect TVA's results of operations40% rewritten
  2. 36Changes in the membership of the TVA Board and TVA senior management could impact how TVA operates51% rewritten
  3. 37A prolonged loss of a quorum of the TVA Board could limit TVA's ability to adapt to changing business conditions74% rewritten

RISKS RELATED TO THE ENVIRONMENT AND CATASTROPHIC EVENTS

  1. 38Weather conditions may hamper TVA's ability to supply power or negatively impact net revenue, and weather conditions may cause customers' demand for power to exceed TVA's then-present power supply capabilities
  2. 39Events that affect the supply or quality of water from the Tennessee River system or Cumberland River system, or elsewhere, may interfere with TVA's ability to generate power
  3. 40Catastrophic events are an ever-present risk of financial loss and disruption to TVA's business
  4. 41TVA's financial control system cannot guarantee that all control issues and instances of fraud or errors will be prevented or detected
  5. 42TVA may be unable to use regulatory accounting for some or all costs
  6. 43TVA may not be able to implement its business strategy successfully
  7. 44TVA's cost reduction efforts may not be successful44% rewritten
  8. 45TVA's organizational structure may not adequately support TVA's anticipated business needs or enable it to meet the needs of its current or potential customers
  9. 46TVA may have difficulty adapting its business model to changes in the utility industry and customer preferences25% rewritten
  10. 47TVA's reputation may be negatively impacted

Other Tennessee Valley Authority 10-Ks

  • FY2024 10-K risk factors
    48 risks

    Stricter environmental regulations and nuclear compliance could increase operational costs and capital expenditure requirements for generation assets. TVA's unique federal governmental structure limits market responsiveness and creates reliance on debt financing without equity access. Cyber threats, aging infrastructure, and potential water supply constraints pose continuous operational disruption risks.

    Filed Nov 14, 2024

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.