US Electric Utilities: Top Takeaways from Lunch with Tenn Valley Authority

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US Electric Utilities: Top Takeaways from Lunch with Tenn Valley Authority

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16 Jun 2026 19:48:38 ET │ 9 pages

US Electric Utilities

Top Takeaways from Lunch with Tenn Valley Authority

CITI’S TAKE

After meeting with the Tennessee Valley Authority management team over

lunch, we came away with the view that TVA’s new nuclear development

provides a duplicable framework for established nuclear players, including

CEG and NEE in our coverage. The framework would include co-location

of load and generation and a “four wall” risk sharing model among the Ryan LevineAC

government, OEM, customer, and utility. Outside of nuclear, TVA has a +1-212-816-6555

data center driven load growth story, which is a snapshot of broad trends ryan.levine@citi.com

within our utilities coverage. Utilities are attempting to solve capacity

Xinru Yin

constraints through investing in new gas peakers and solve transmission

+1-212-816-9080

constraints by investing in significant transmission buildout, while xinru.yin@citi.com

figuring out how much load is actually showing up, and debottlenecking

supply chain and labor to accelerate time to market.

Making Progress on New Nuclear Development: We think TVA is regarded in the

utility industry as a first mover of new nuclear with close ties with the federal

government which may make federal funding easier. Its unique governance structure

(not subject to state utility commission) makes it possible to use more creative

financing structures. As TVA has nuclear deployment-ready sites and indicated an

update on its new nuclear development in the next few weeks, this is a positive data

point for potential new nuclear developers with similar expertise and risk tolerance

profile, including CEG and NEE in our coverage. The industry continues to coalesce