Item 2. Properties
ITEM 2. PROPERTIES
TVA holds personal property in its own name but generally holds real property as agent for the U.S. TVA may acquire real property as an agent of the U.S. by negotiated purchase or by eminent domain.
Generating Properties
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
50
Table of Contents
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.
51
Table of Contents
The following table summarizes TVA's summer net capability in MW at September 30, 2025:
SUMMER NET CAPABILITY
At 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
Notes
(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).
52
Table of Contents
(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.
(6) John Sevier Combined Cycle Facility ("John Sevier CCF") is a single steam cycle unit driven by three gas turbines (3x1 configuration).
(7) Lagoon Creek Combined Cycle Facility is a single steam cycle unit driven by two gas turbines (2x1 configuration).
(8) Paradise Combined Cycle Facility is a single steam cycle unit driven by three gas turbines (3x1 configuration).
(9) As of September 30, 2025, TVA had three units that were in long-term outage and unavailable for service at Wilbur Hydroelectric Facility (Units 1-3). These units are included in their respective locations in the table above; however, the capability from these units is excluded.
(10) Includes 86 MW of summer net capability associated with Hiwassee Hydro Unit 2. See Item 1, Business — Power Supply and Load Management Resources — Renewable Energy Resources — Conventional Hydroelectric Dam s.
(11) See Item 1, Business — Power Supply and Load Management Resources — Hydroelectric Pumped-Storage for a discussion of Raccoon Mountain Pumped-Storage Plant.
(12) TVA owns approximately one MW of renewable solar capability among nine operating solar installations.
Transmission Properties
TVA's transmission system interconnects with systems of surrounding utilities and, at September 30, 2025, consisted primarily of approximately 2,500 circuit miles of 500 kilovolt, 12,100 circuit miles of 161 kilovolt, and 1,900 circuit miles of other voltage transmission lines; 5,445 miles of fiber optic lines; 590 transmission substations, power switchyards, and switching stations; and 1,361 customer connection points (customer, generation, and interconnection).
Public Land Management Reservoir Properties
TVA operates and maintains 49 dams and manages approximately 11,000 miles of reservoir shoreline, 293,000 acres of reservoir land, 650,000 surface acres of reservoir water, and approximately 150 public recreation areas throughout the Tennessee Valley, including campgrounds, day-use areas, and boat launching ramps.
Additionally, TVA manages 154 agreements for commercial recreation (such as campgrounds and marinas). As part of its stewardship responsibilities, TVA approval is required to be obtained before any obstruction affecting navigation, flood control, or public lands can be constructed across, along, or in the Tennessee River and its tributaries. These public lands and waters managed by TVA provide both conservation and sustainable recreation.
Buildings
TVA has buildings and structures located throughout its service area to support TVA's mission of service. These buildings and structures include generation and transmission facilities, corporate offices, customer service centers, power service centers, warehouses, visitor centers, and crew quarters. Two significant buildings are its Knoxville Office Complex and the Chattanooga Office Complex in Tennessee. See Part II, Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations — Key Initiatives and Challenges — Real Property Portfolio .
Disposal of Property
TVA has broad authority to dispose of personal property but only limited authority to dispose of real property. TVA's primary, but not exclusive, authority to dispose of real property is as follows: TVA has authority to dispose of surplus real property at a public auction; TVA may dispose of real property for certain specified purposes, including providing replacement lands for certain entities whose lands were flooded or destroyed by dam or reservoir construction, providing real property for recreational use, and granting easements and rights-of-way upon which are located transmission or distribution lines; TVA can dispose of real property in connection with the construction of generating plants or other facilities under certain circumstances; and TVA has authority to grant easements for rights-of-way and other purposes.
The Basic Tennessee Valley Authority Power Bond Resolution adopted by the TVA Board on October 6, 1960, as amended on September 28, 1976, October 17, 1989, and March 25, 1992 (the "Basic Resolution") prohibits TVA (1) from mortgaging any part of its power properties and (2) from disposing of all or any substantial portion of these properties unless TVA provides for a continuance of the interest, principal, and sinking fund payments due and to become due on all outstanding Bonds, or for the retirement of such Bonds.