The Tennessee Valley Authority’s net income rose 56% in fiscal 2026, and the federal power provider said stronger earnings would support reinvestment in a system whose local power companies serve about 10 million people.
TVA’s Form 10-K shows operating revenue advanced 4% to $14.218 billion from $13.672 billion for the year ended Sept. 30. Net income reached $2.121 billion, up from $1.360 billion. Total operating expenses fell 1.6% to $10.926 billion from $11.103 billion. The filing also records an $89 million increase in other income.
Electricity sales totaled 171.705 billion kilowatt-hours, compared with 167.612 billion the previous year. The filing points to greater electricity use among residential and small commercial customers and in data processing, web hosting and related services. It also cites a 10.3% year-over-year rise in cooling degree days and higher fuel-cost recovery rates as factors behind revenue growth.
Fuel and purchased-power costs rose $329 million to $4.811 billion. TVA attributed the increase to higher wholesale power and natural gas prices, while saying greater availability from its own generating fleet partly cushioned the rise. Operating and maintenance costs fell $264 million to $3.453 billion; TVA said Inflation Reduction Act tax credits recorded during the year were the primary reason.
Capital expenditures reached $4.927 billion in fiscal 2026, and the filing estimates $4.205 billion for fiscal 2027. The board approved TVA’s 2026 Integrated Resource Plan in August. The plan identifies a need for 11 to 32 gigawatts of additional generation capacity through 2040. Chief Financial Officer Tom Rice said stronger net income would support further investment in the power system.
TVA is a U.S. government corporate agency. Its 153 local power company customers serve about 10 million people in parts of seven southeastern states, and it has 62 directly served customers. The board sets power rates under a statutory objective to keep them as low as feasible, according to the filing.
TVA expects to submit a license-renewal application for its two Watts Bar units to the Nuclear Regulatory Commission in the second quarter of 2027.
