Tennessee Valley Authority

At September 30, 2025, TVA-operated generating assets consisted of seven nuclear units, 24 active coal-fired units, 68 simple-cycle gas units, one cogeneration unit, 10 aeroderivative units, 14 combined-cycle gas power blocks, 109 conventional hydroelectric units (106 active units and three units in long-term outage and unavailable for service), four pumped-storage hydroelectric units, five diesel generator units, and nine operating solar installations. As of September 30, 2025, four of the combined-cycle power blocks and 10 aeroderivative units were leased to special purpose entities ("SPEs") and leased back to TVA under long-term leases. See Note 12 — Variable Interest Entities and Note 15 — Debt and Other Obligations — Lease/Leasebacks. In addition, TVA is leasing the three Caledonia combined-cycle power blocks under a long-term lease. For a discussion of these assets, see Item 1, Business — Power Supply and Load Management Resources.

Net Capability

Net capability is defined as the ability of an electric system, generating unit, or other system component to carry or generate power for a specified time period. It does not include real-time bulk electrical system operating constraints such as transmission line loading limitations, fuel availability such as coal, gas, and seasonal river reservoir levels, fuel blend, severe weather events, environmental and/or other regulatory constraints, transmission system outages, generator outages, or generator derates. Summer net capability as presented in the table below reflects the expected output of individual resources at

TVA’s anticipated summer demand peak. The summation of those individual resources does not include the real-time bulk electrical system operating constraints previously noted. See also Item 1A, Risk Factors — Operational Risks and Risks Related to the Environment and Catastrophic Events.

In addition to the TVA-operated generating facilities presented in the table below, TVA also has 8,482 MWs of operating capacity available through PPAs. The summation of TVA's PPAs under contract does not include real-time operating constraints, such as intermittency of renewable resources associated with weather or other factors. See Item 1, Business — Power Supply and Load Management Resources — Power Purchase and Other Agreements for information on TVA's renewable and nonrenewable power purchase contracts by resource type and location.

The following table summarizes TVA's summer net capability in MW at September 30, 2025:

SUMMER NET CAPABILITYAt September 30, 2025

Source of Capability · Location · Number of Units · Summer Net Capability (MW) · Date First Unit Placed in Service (CY) · Date Last Unit Placed in Service (CY)

TVA-Operated Generating Facilities

Nuclear

Browns Ferry · Alabama · 3 · 3,662 · 1974 · 1977

Sequoyah · Tennessee · 2 · 2,292 · 1981 · 1982

Watts Bar · Tennessee · 2 · 2,348 · 1996 · 2016

Total Nuclear · 7 · 8,302

Coal-Fired

Cumberland · Tennessee · 2 · 2,470 · 1973 · 1973

Gallatin · Tennessee · 4 · 976 · 1956 · 1959

Kingston · Tennessee · 9 · 1,298 · 1954 · 1955

Shawnee · Kentucky · 9 · 1,071 · 1953 · 1955

Total Coal-Fired · 24 · 5,815

Natural Gas and/or Oil-Fired(1)

Simple-Cycle Combustion Turbine

Allen · Tennessee · 2 · 92 · 1971 · 1972

Brownsville · Tennessee · 4 · 425 · 1999 · 1999

Colbert · Alabama · 11 · 998 · 1972 · 2023

Gallatin · Tennessee · 8 · 534 · 1975 · 2000

Gleason · Tennessee · 3 · 463 · 2000 · 2000

Johnsonville(2) · Tennessee · 13 · 208 · 1975 · 2000

Kemper · Mississippi · 4 · 273 · 2002 · 2002

Lagoon Creek · Tennessee · 12 · 844 · 2001 · 2002

Marshall County · Kentucky · 8 · 571 · 2002 · 2002

Paradise · Kentucky · 3 · 681 · 2023 · 2023

Subtotal Simple-Cycle Combustion Turbine · 68 · 5,089

Combined-Cycle Combustion Turbine

Ackerman(3) · Mississippi · 1 · 713 · 2007 · 2007

Allen(4) · Tennessee · 1 · 1,106 · 2018 · 2018

Caledonia(5) · Mississippi · 3 · 819 · 2003 · 2003

John Sevier(6) · Tennessee · 1 · 871 · 2012 · 2012

Lagoon Creek(7) · Tennessee · 1 · 596 · 2010 · 2010

Magnolia · Mississippi · 3 · 951 · 2003 · 2003

Paradise(8) · Kentucky · 1 · 1,100 · 2017 · 2017

Southaven · Mississippi · 3 · 802 · 2003 · 2003

Subtotal Combined-Cycle Combustion Turbine · 14 · 6,958

Co-Generation

Johnsonville · Tennessee · 1 · 66 · 1975 · 2000

Aeroderivative Combustion Turbine

Johnsonville · Tennessee · 10 · 530 · 2025 · 2025

Total Natural Gas and/or Oil-Fired · 93 · 12,643

Hydroelectric

Conventional Plants · Alabama · 36 · 1,170 · 1925 · 1962

Georgia · 2 · 37 · 1931 · 1956

Kentucky · 5 · 224 · 1944 · 1948

North Carolina · 6 · 478 · 1940 · 1956

Tennessee(9)(10) · 60 · 1,874 · 1912 · 1972

Pumped-Storage(11) · Tennessee · 4 · 1,715 · 1978 · 1979

Total Hydroelectric · 113 · 5,498

Diesel Generator

Meridian · Mississippi · 5 · 9 · 1998 · 1998

TVA Non-hydro Renewable Resources(12) · 1

Total TVA-Operated Generating Facilities Summer Net Capability · 32,268

(1) See Generating Properties above for a discussion of TVA-operated natural gas and/or oil-fired facilities subject to leaseback and long-term lease arrangements.

(2) As of September 30, 2025, TVA had 10 idled units at Johnsonville Combustion Turbine Facility (Units 1-10). These units are included in their respective locations in the table above; however, the capacity from these units is excluded.

(3) Ackerman Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).

(4) Allen Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).

(5) Caledonia Combined Cycle Plant ("Caledonia CC") is currently a leased facility operated by TVA.

• TVA may not be able to operate one or more of its nuclear power units.
• Physical attacks, threats, or other interference could damage or interfere with TVA's facilities and operations.
• TVA's assets or their supporting infrastructure may not operate as planned.
• TVA's operations present significant safety risks that are not able to be completely eliminated.
• TVA's service reliability could be affected by problems at other utilities or at TVA facilities, or by the increase in intermittent sources of power.
• TVA's supplies of fuel, purchased power, or other critical items may be disrupted or obtained at a higher cost than planned.
• Global conflicts, terrorist activities, or military actions could adversely affect TVA’s business.
• CYBERSECURITY 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.
• Cyber attacks on third parties or the failure of their technology infrastructure could interfere with or harm TVA.
• The failure of TVA’s information technology systems could have adverse consequences to TVA.
• The 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.
• TVA could lose its competitive edge if it fails to keep up with the changes in technology.
• FINANCIAL, ECONOMIC, AND MARKET RISKS
• Demand for electricity could be higher or lower in the future than TVA currently expects or is financially planning for.
• TVA 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.
• TVA’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.
• TVA's debt ceiling may limit TVA's ability to carry out its business in the event that TVA were to approach or reach it.
• TVA, together with owners of TVA securities, may be impacted by downgrades of TVA's credit ratings.
• TVA is subject to a variety of market risks that may negatively affect TVA's cash flows, results of operations, and financial condition.
• 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.
• The market for TVA Bonds might be limited.
• Payment of principal and interest on TVA securities is not guaranteed by the U.S government.
• HUMAN CAPITAL AND MANAGEMENT RISKS
• Failure to attract and retain an appropriately qualified workforce may negatively affect TVA's results of operations.
• Changes in the membership of the TVA Board and TVA senior management could impact how TVA operates.
• A prolonged loss of a quorum of the TVA Board could limit TVA's ability to adapt to changing business conditions.
• RISKS RELATED TO THE ENVIRONMENT AND CATASTROPHIC EVENTS
• Weather 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.
• Events 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.
• Catastrophic events are an ever-present risk of financial loss and disruption to TVA's business.
• ACCOUNTING AND FINANCIAL REPORTING RISKS
• TVA's financial control system cannot guarantee that all control issues and instances of fraud or errors will be prevented or detected.
• TVA may be unable to use regulatory accounting for some or all costs.
• GENERAL RISK FACTORS
• TVA may not be able to implement its business strategy successfully.
• TVA's cost reduction efforts may not be successful.
• TVA'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.
• TVA may have difficulty adapting its business model to changes in the utility industry and customer preferences.
• TVA's reputation may be negatively impacted.