Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13, 15(d), or 37 of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 2, 2024

TENNESSEE VALLEY AUTHORITY

(Exact name of registrant as specified in its charter)

A corporate agency of the United States created by an act of Congress

(State or other jurisdiction of incorporation or organization)

000-52313

(Commission file number)

62-0474417

(IRS Employer Identification No.)

400 W. Summit Hill Drive

Knoxville, Tennessee

(Address of principal executive offices)

37902

(Zip Code)

(865) 632-2101

(Registrant's telephone number, including area code)

None

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 1.01 Entry into a Material Definitive Agreement.

On October 2, 2024 (the “Closing Date”), TVA entered into a lease-purchase transaction involving its Johnsonville Aeroderivative Combustion Turbine Facility (the “Facility”) located in Humphreys County, Tennessee. The Facility consists of ten combustion turbine generators and associated balance-of-plant systems and equipment and will use natural gas as fuel. The Facility is expected to begin commercial operations by April 2025.

In connection with this transaction, TVA entered into three material definitive agreements on the Closing Date with Johnsonville Aeroderivative Combustion Turbine Generation LLC, a single-purpose Delaware limited liability company (“JACTG”): a Head Lease Agreement (the “Head Lease”) (the United States of America is also a party to this agreement), a Facility Lease-Purchase Agreement (the “Facility Lease”), and a Construction Management Agreement (the “CMA”). Each of these agreements is described in more detail below.

•Head Lease. Under the Head Lease, TVA will lease the Facility to JACTG for a term of fifty years. In exchange, JACTG made a one-time rental payment to TVA on the Closing Date. The Head Lease, however, will terminate sooner (upon the expiration of the Facility Lease) so long as (1) all payments under the Facility Lease have been made, and (2) there is no significant lease event of default for which JACTG has exercised remedies to dispossess TVA of the Facility.

•Facility Lease. Under the Facility Lease, TVA will lease the Facility back from JACTG for a term of thirty years. TVA will make rental payments to JACTG on each April 1 and October 1, commencing on April 1, 2025, and ending on October 1, 2054. The amount of rent payable on each rent payment date is listed in a schedule attached to this report as Exhibit 99.1, which schedule is incorporated herein by reference. These rent payments may be accelerated (1) immediately upon (a) the occurrence of a bankruptcy event (to the extent TVA becomes subject to bankruptcy law in the future), insolvency event, or similar event with respect to TVA or (b) repudiation by TVA of the Head Lease, the Facility Lease, or the related Ground Lease Agreement or (2) on a date no earlier than 180 days after the occurrence of certain payment defaults by TVA. Throughout the term of the Facility Lease, TVA will operate and maintain (and improve to the extent required by applicable law) the Facility and take all power from the Facility. At the end of the Facility Lease, TVA will own the Facility as long as TVA is not in default under the Facility Lease.

•CMA. Under the CMA, TVA is obligated to use commercially reasonable efforts to cause the Facility to achieve provisional acceptance by September 25, 2025, or as soon thereafter as commercially practicable. On the Closing Date, JACTG made a one-time payment to TVA in exchange for TVA's agreement to perform its obligations under the CMA.

JACTG is owned by an equity investor that contributed cash equity to JACTG in the amount of $80,000,000 on the Closing Date. In addition, JACTG issued secured notes on the Closing Date in an aggregate principal amount of $720,000,000. Of the $800,000,000 raised by JACTG, JACTG paid $775,087,079 to TVA on the Closing Date under the Head Lease and the CMA, and deposited the remaining $24,912,921 with a lease indenture trustee. The lease indenture trustee will use the $24,912,921 to fund the principal and interest due on the secured notes on the first debt service payment date as well as to fund the return on the equity investment accruing from the Closing Date through the first debt service payment date. TVA plans to use its aggregate proceeds of $775,087,079 for the benefit of its power program and to pay transaction expenses.

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The information set forth in Item 1.01 above is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.


EXHIBIT NO.			DESCRIPTION OF EXHIBIT
99.1			Schedule of Amount of Rent Payable on Each Rent Payment Date Under the Facility Lease-Purchase Agreement Dated as of October 2, 2024, Between Johnsonville Aeroderivative Combustion Turbine Generation LLC and TVA

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.



			Tennessee Valley Authority
			(Registrant)



Date: October 4, 2024			/s/ John M. Thomas, III
			John M. Thomas, III
			Executive Vice President and
			Chief Financial and Strategy Officer

EXHIBIT INDEX

This exhibit is filed pursuant to Items 1.01 and 2.03 hereof.


EXHIBIT NO.			DESCRIPTION OF EXHIBIT
99.1			Schedule of Amount of Rent Payable on Each Rent Payment Date Under the Facility Lease-Purchase Agreement Dated as of October 2 , 20 24 , Between John sonville Aeroderivative Combustion Turbine Generation LLC and TVA

Exhibit No. 99.1


BASIC LEASE RENT

Rent Payment Date	Basic Lease Rent (Debt Portion)	Basic Lease Rent (Equity Portion)
April 1, 2025	$22,629,677	$2,283,244
October 1, 2025	22,629,677	2,804,717
April 1, 2026	22,629,677	2,804,717
October 1, 2026	22,629,677	2,804,717
April 1, 2027	22,629,677	2,804,717
October 1, 2027	22,629,677	2,804,717
April 1, 2028	22,629,677	2,804,717
October 1, 2028	22,629,677	2,804,717
April 1, 2029	22,629,677	2,804,717
October 1, 2029	22,629,677	2,804,717
April 1, 2030	22,629,677	2,804,717
October 1, 2030	22,629,677	2,804,717
April 1, 2031	22,629,677	2,804,717
October 1, 2031	22,629,677	2,804,717
April 1, 2032	22,629,677	2,804,717
October 1, 2032	22,629,677	2,804,717
April 1, 2033	22,629,677	2,804,717
October 1, 2033	22,629,677	2,804,717
April 1, 2034	22,629,677	2,804,717
October 1, 2034	22,629,677	2,804,717
April 1, 2035	22,629,677	2,804,717
October 1, 2035	22,629,677	2,804,717
April 1, 2036	22,629,677	2,804,717
October 1, 2036	22,629,677	2,804,717


Rent Payment Date	Basic Lease Rent (Debt Portion)	Basic Lease Rent (Equity Portion)
April 1, 2037	22,629,677	2,804,717
October 1, 2037	22,629,677	2,804,717
April 1, 2038	22,629,677	2,804,717
October 1, 2038	22,629,677	2,804,717
April 1, 2039	22,629,677	2,804,717
October 1, 2039	22,629,677	2,804,717
April 1, 2040	22,629,677	2,804,717
October 1, 2040	22,629,677	2,804,717
April 1, 2041	22,629,677	2,804,717
October 1, 2041	22,629,677	2,804,717
April 1, 2042	22,629,677	2,804,717
October 1, 2042	22,629,677	2,804,717
April 1, 2043	22,629,677	2,804,717
October 1, 2043	22,629,677	2,804,717
April 1, 2044	22,629,677	2,804,717
October 1, 2044	22,629,677	2,804,717
April 1, 2045	27,302,246	2,733,852
October 1, 2045	27,302,246	2,733,852
April 1, 2046	27,302,246	2,733,852
October 1, 2046	27,302,246	2,733,852
April 1, 2047	27,302,246	2,733,852
October 1, 2047	27,302,246	2,733,852
April 1, 2048	27,302,246	2,733,852
October 1, 2048	27,302,246	2,733,852
April 1, 2049	27,302,246	2,733,852
October 1, 2049	27,302,246	2,733,852


Rent Payment Date	Basic Lease Rent (Debt Portion)	Basic Lease Rent (Equity Portion)
April 1, 2050	27,302,246	2,733,852
October 1, 2050	27,302,246	2,733,852
April 1, 2051	27,302,246	2,733,852
October 1, 2051	27,302,246	2,733,852
April 1, 2052	27,302,246	2,733,852
October 1, 2052	27,302,246	2,733,852
April 1, 2053	27,302,246	2,733,852
October 1, 2053	27,302,246	2,733,852
April 1, 2054	27,302,246	2,733,852
October 1, 2054	27,302,246	8,229,600

Cover	Oct. 02, 2024
Document Information [Line Items]
City Area Code	(865)
Local Phone Number	632-2101
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Entity Emerging Growth Company	false
Entity Address, Postal Zip Code	37902
Entity Address, Address Line One	400 W. Summit Hill Drive
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity File Number	000-52313
Entity Tax Identification Number	62-0474417
Entity Registrant Name	TENNESSEE VALLEY AUTHORITY
Document Period End Date	Oct. 02, 2024
Document Type	8-K
Entity Central Index Key	0001376986
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	X1