Letter from TVA CEO Jeff Lyash

Dear fellow stakeholders,

Tracy and I have been blessed with nine grandchildren, each with unique personalities, talents and perspectives. It is a joy to be part of their lives and lifting them up as they grow.

Almost everything we accomplish in life is the product of support and encouragement from others…family, friends, community. From our parents’ guidance during childhood, to the efforts of teachers, coaches, mentors and spiritual leaders…it’s easy to see how almost everything we become is built on the shoulders of others.

Nine decades ago, TVA arose as a force for good. To lift up a struggling region of our nation. TVA’s very foundation is built upon a strong mission to benefi t the public good. It’s a mission that has stood the test of time.

Today, the challenges are different yet no less critical to the communities we serve.

At TVA, our strength lies in our collective power. And that power comes from the unique experiences, perspectives and knowledge each individual brings to the table.

Building the Future... With You

Mission of Service

Every day, we deliver on our mission, focused on:

• Energy: affordable, reliable, resilient and clean • Environmental Stewardship: protecting and preserving public lands and water • Economic Development: attracting jobs and capital investment

Providing support when it’s needed most

Our team members take this mission of service to heart, and they rise to the call time and again.

An example of this dedication to community lies in TVA’s response to the devastating tornado outbreak that left a swath of destruction miles long across Kentucky last December.

When I refl ect on our team members’ response to tragedies such as this one, I’m grateful. Around the clock, more than 300 TVA transmission employees rebuilt damaged transmission structures and reconnected lines. Other employees addressed critical needs — food, water, supplies, equipment.

I met with my friend Marty Ivy of Mayfi eld Electric and Water Systems to see fi rsthand the storm system’s toll on lives and property. It was astonishing. Meanwhile, the outpouring of support was incredible.

The strength of partnerships — support for each other in times of need — cannot be overstated.

Similarly awe-inspiring is the spirit of innovation TVA’s team members bring to their roles each day, from that very fi rst day in 1933.

Throughout its history, TVA has been an innovator. It was among the fi rst to harness the river system for power generation and fl ood control. Then, at the dawn of the commercial nuclear age, TVA constructed some of the earliest nuclear reactors in the nation.

Today, we recognize the urgency and TVA’s unique position to lead in developing solutions that will help deliver a carbonfree energy future for our region and the nation. It requires innovation and partnerships to go further, faster to make our vision a reality.

Marty Ivy, of Mayfield Electric and Water Systems, TVA’s Jeff Lyash, Jeannette Mills and Don Moul survey the damage.

TVA dams control flooding along the Tennessee River watershed.

TVA manages the Tennessee River, which attracts an estimated 285,000 paddlers each year.

To help achieve this, we are expanding our renewable generation and researching emerging technologies. We are optimizing our existing nuclear fl eet and demonstrating excellent performance.

And we are looking ahead as we explore advanced nuclear technology — small modular reactors — as part of our pursuit of a net-zero carbon energy future.

Delivering on our promises

As we innovate and help our neighbors, we also continually work to lower our costs. These savings are passed on to our communities.

We recognize the impact infl ation has had on families and are focused on doing everything we can to keep energy costs as low as possible.

Residential customers served by the top 100 U.S. utilities pay around 80% more for energy than customers served by TVA, and our industrial rates are lower than more than 95% of the nation.

A big part of delivering on our promises is ensuring we provide reliable, resilient energy.

The strength of our power system was demonstrated during record freezing temperatures last February and record-setting peak and daily energy records in both May and June.

TVA has delivered energy with 99.999% reliability for 23 consecutive years, putting our performance in the top quartile among the nation’s largest utilities.

To ensure our customers can always count on us, we continually invest in our system. This year, such investment included signifi cant infrastructure improvements to the grid and the completion of a sevenyear remediation project at Boone Dam in upper East Tennessee.

This project was the largest dam modifi cation project in TVA history. It was completed safely, on time, and under budget; and it is receiving national accolades as a geotechnical engineering feat.

Economic development is also fundamental to TVA’s work in the region. This past year, TVA helped create or retain an estimated 66,500 jobs and more than $10.2 billion in projected capital investments.

For these and other achievements, Site Selection magazine recognized TVA as a “Top Utility for Economic Development” for the 17th consecutive year.

Living our values

At TVA, our core values — Safety, Integrity, Inclusion and Service — defi ne how we interact with our customers, communities and — most importantly — each other. These are more than just words. We hold ourselves and each other accountable to these values every day.

We are committed to a TVA that truly values inclusion with diversity, which treats people with respect and dignity, and where everyone can do their best work and be their best self every day.

I am pleased to report that TVA became the fi rst federal agency to earn the coveted Compliance Leader Verifi cation™ from Ethisphere® — a global leader in ethical business practices. This honor demonstrates that TVA fosters a culture of ethics and integrity that builds public trust.

Joining the TVA family was one of the best decisions I’ve ever made. I am honored to serve with such a talented and dedicated group of individuals. Our mission drives and inspires us to pursue new ideas and innovative solutions that improve our service to the people who call our region home.

It’s an exciting time to be at TVA. It’s a time of challenges and opportunities, a time when the innovative spirit of our workforce will be called upon to solve complex issues and open the door to new ways of thinking. It’s the beginning of a highly emergent period in the development of our nation’s clean energy future, and TVA is helping lead that transformation.

Throughout the history of TVA, we have been defi ned more than anything by our ability to respond to challenges. Those challenges take many forms — war, tornadoes, ice storms, record heat waves, droughts, fi nancial market uncertainty, political and regulatory uncertainty. Despite these challenges, we continue to demonstrate that we are up to the task.

Jeff Lyash

President and Chief Executive Offi cer

TENNESSEE VALLEY AUTHORITY

Safety

We are committed to the safety and well-being of each TVA employee and the communities we serve.

Integrity

We are honest and straightforward.

Inclusion

We strive to treat everyone with dignity and respect by welcoming each person’s individuality so we can all reach our full potential.

Service

We are proud to serve in the communities in which we live, work and play.