DEI Document
DEI Document shares in Millions, $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) shares | |
Document Information [Line Items] | |
Entity Registrant Name | TENNESSEE VALLEY AUTHORITY |
Entity Central Index Key | 0001376986 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-K |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | shares | 0 |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Well-known Seasoned Issuer | No |
Entity Public Float | $ | $ 0 |
Document Transition Report | false |
Entity File Number | 000-52313 |
Entity Tax Identification Number | 62-0474417 |
Entity Address, State or Province | TN |
Entity Address, City or Town | Knoxville |
Entity Address, Address Line One | 400 W. Summit Hill Drive |
Local Phone Number | 632-2101 |
City Area Code | (865) |
Entity Address, Postal Zip Code | 37902 (Zip Code) |
Entity Interactive Data Current | Yes |
ICFR Auditor Attestation Flag | true |
Entity Incorporation, State or Country Code | X1 |
Entity Current Reporting Status | Yes |
Document Annual Report | true |
Document Period End Date | Sep. 30, 2022 |
Entity Small Business | false |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --09-30 |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2022 | |
Auditor [Line Items] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Chattanooga, Tennessee |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Operating revenues | |||
Electric revenue | $ 12,371 | $ 10,357 | $ 10,104 |
Other revenue | 169 | 146 | 145 |
Revenue from sales of electricity | 12,540 | 10,503 | 10,249 |
Operating expenses | |||
Fuel | 2,567 | 1,737 | 1,584 |
Purchased power | 1,921 | 984 | 880 |
Operating and maintenance | 2,986 | 2,890 | 2,720 |
Depreciation and amortization | 2,054 | 1,533 | 1,826 |
Tax equivalents | 601 | 514 | 528 |
Total operating expenses | 10,129 | 7,658 | 7,538 |
Operating income | 2,411 | 2,845 | 2,711 |
Other income (expense), net | 7 | 13 | 36 |
Defined Benefit Plan, Other Cost (Credit) | 258 | 258 | 253 |
Interest expense | |||
Interest expense | 1,052 | 1,088 | 1,142 |
Net income (loss) | 1,108 | 1,512 | 1,352 |
ALABAMA | |||
Operating revenues | |||
Electric revenue | 1,778 | 1,508 | 1,439 |
GEORGIA | |||
Operating revenues | |||
Electric revenue | 299 | 254 | 249 |
KENTUCKY | |||
Operating revenues | |||
Electric revenue | 821 | 655 | 624 |
MISSISSIPPI | |||
Operating revenues | |||
Electric revenue | 1,182 | 984 | 941 |
NORTH CAROLINA | |||
Operating revenues | |||
Electric revenue | 87 | 66 | 65 |
TENNESSEE | |||
Operating revenues | |||
Electric revenue | 8,137 | 6,841 | 6,740 |
VIRGINIA | |||
Operating revenues | |||
Electric revenue | $ 48 | $ 42 | $ 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Current assets | ||
Cash and Cash Equivalents, at Carrying Value | $ 500 | $ 499 |
Accounts receivable, net | 2,007 | 1,566 |
Inventories, net | 1,072 | 950 |
Regulatory assets | 138 | 196 |
Other current assets | 257 | 287 |
Total current assets | 3,974 | 3,498 |
Property, plant, and equipment | ||
Completed plant | 66,442 | 66,411 |
Less accumulated depreciation | (34,239) | (34,663) |
Net completed plant | 32,203 | 31,748 |
Construction in progress | 2,535 | 2,458 |
Nuclear fuel | 1,492 | 1,566 |
Finance lease, Right-of-Use-Asset | 630 | 692 |
Total property, plant, and equipment, net | 36,860 | 36,464 |
Long-term Investments | 3,671 | 4,053 |
Regulatory and other long-term assets | ||
Regulatory assets | 6,134 | 7,956 |
Operating Lease, Right-of-Use Asset | 155 | 165 |
Other long-term assets | 394 | 320 |
Total regulatory and other long-term assets | 6,683 | 8,441 |
Total assets | 51,188 | 52,456 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,466 | 2,215 |
Accrued interest | 273 | 282 |
Asset Retirement Obligation, Current | 275 | 266 |
Leaseback obligations, current | 0 | 25 |
Regulatory liabilities | 391 | 340 |
Short-term debt, net of discounts | 1,172 | 780 |
Total Current maturities of power bonds issued at par | 29 | 1,028 |
Current maturities of long-term debt of variable interest entities issued at par | 39 | 43 |
Total current liabilities | 4,645 | 4,979 |
Other liabilities | ||
Post-retirement and post-employment benefit obligations | 3,072 | 5,045 |
Asset retirement obligations | 6,887 | 6,736 |
Other long-term liabilities | 1,485 | 2,041 |
Non-current regulatory liabilities | 172 | 40 |
Total other liabilities | 12,244 | 14,549 |
Long-term debt, net | ||
Long-term power bonds, net | 17,826 | 17,457 |
Long-term debt of variable interest entities, net | 968 | 1,006 |
Total long-term debt, net | 18,794 | 18,463 |
Total liabilities | 35,683 | 37,991 |
Proprietary capital | ||
Power program appropriation investment | 258 | 258 |
Power program retained earnings | 14,800 | 13,689 |
Total power program proprietary capital | 15,058 | 13,947 |
Nonpower programs appropriation investment, net | 533 | 540 |
Accumulated other comprehensive income (loss) | (86) | (22) |
Total proprietary capital | 15,505 | 14,465 |
Total liabilities and proprietary capital | 51,188 | 52,456 |
Finance Lease, Liability, Noncurrent | $ 628 | $ 687 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 520 | $ 518 | $ 521 |
Cash flows from operating activities | |||
Net income (loss) | 1,108 | 1,512 | 1,352 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities | |||
Depreciation and amortization (including amortization of debt issuance costs and premiums/discounts) | 2,076 | 1,555 | 1,848 |
Amortization of nuclear fuel cost | 347 | 383 | 388 |
Non-cash retirement benefit expense | 328 | 333 | 324 |
Regulatory asset amount expensed | (70) | (72) | (21) |
Changes in current assets and liabilities | |||
Accounts receivable, net | (412) | (18) | 259 |
Inventories and other current assets, net | (163) | 42 | (12) |
Accounts payable and accrued liabilities | 282 | 178 | (38) |
Accrued interest | (7) | (18) | 1 |
Pension contributions | (308) | (306) | (305) |
Settlements of asset retirement obligations | (291) | (242) | 114 |
Other, net | (82) | (91) | (46) |
Net cash provided by operating activities | 2,948 | 3,256 | 3,636 |
Cash flows from investing activities | |||
Construction expenditures | (2,361) | (1,963) | (1,643) |
Nuclear fuel expenditures | (283) | (354) | (342) |
Purchases of investments | (51) | (50) | (49) |
Loans and other receivables | |||
Repayments | 15 | 9 | 7 |
Other, net | 26 | 27 | 20 |
Net cash used in investing activities | (2,663) | (2,338) | (2,015) |
Long-term debt | |||
Issues of power bonds | 484 | 500 | 997 |
Redemptions and repurchases of power bonds | (1,028) | (1,860) | (1,427) |
Payments on debt of variable interest entities | (43) | (41) | (39) |
Redemptions of Notes Payable | 0 | 0 | 23 |
Short-term debt issues (redemptions), net | 392 | 723 | (865) |
Finance Lease, Principal Payments | 85 | 250 | 55 |
Financing costs, net | (3) | (2) | (4) |
Other, net | 0 | 9 | (6) |
Net cash (used in) provided by financing activities | (283) | (921) | (1,422) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 2 | (3) | 199 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 2 | ||
Advances on loans receivable | $ (9) | $ (7) | $ (8) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Balance at beginning of year | $ 14,465 | $ 12,932 | $ 11,625 |
Net income (loss) | 1,108 | 1,512 | 1,352 |
Total other comprehensive income (loss) | (64) | 29 | (39) |
Return on power program appropriation investment | (4) | (4) | (6) |
Balance at end of year | 15,505 | 14,465 | 12,932 |
Power Program Appropriation Investment | |||
Balance at beginning of year | 258 | 258 | 258 |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss) | 0 | 0 | 0 |
Return on power program appropriation investment | 0 | 0 | 0 |
New Accounting Standard - CECL | 0 | ||
Balance at end of year | 258 | 258 | 258 |
Power Program Retained Earnings | |||
Balance at beginning of year | 13,689 | 12,177 | 10,823 |
Net income (loss) | 1,115 | 1,520 | 1,360 |
Total other comprehensive income (loss) | 0 | 0 | 0 |
Return on power program appropriation investment | (4) | (4) | (6) |
New Accounting Standard - CECL | (4) | ||
Balance at end of year | 14,800 | 13,689 | 12,177 |
Nonpower Programs Appropriation Investment, Net | |||
Balance at beginning of year | 540 | 548 | 556 |
Net income (loss) | (7) | (8) | (8) |
Total other comprehensive income (loss) | 0 | 0 | 0 |
Return on power program appropriation investment | 0 | 0 | 0 |
New Accounting Standard - CECL | 0 | ||
Balance at end of year | 533 | 540 | 548 |
Accumulated Other Comprehensive Income (Loss) Net Gains (Losses) on Cash Flow Hedges | |||
Balance at beginning of year | (22) | (51) | (12) |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss) | (64) | 29 | (39) |
Return on power program appropriation investment | 0 | 0 | 0 |
New Accounting Standard - CECL | 0 | ||
Balance at end of year | $ (86) | $ (22) | $ (51) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 1,108 | $ 1,512 | $ 1,352 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (157) | 126 | (1) |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 93 | (97) | (38) |
Total other comprehensive income (loss) | (64) | 29 | (39) |
Total comprehensive income (loss) | $ 1,044 | $ 1,541 | $ 1,313 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Interest paid was $1.1 billion for each of 2022, 2021, and 2020. These amounts differ from interest expense in certain years due to the timing of payments. There was no interest capitalized in 2022, 2021, or 2020. Construction in progress and asset retirement obligation project accruals and nuclear fuel expenditures included in Accounts payable and accrued liabilities at September 30, 2022, 2021, and 2020 were $629 million, $637 million, and $398 million, respectively, and are excluded from the Statements of Consolidated Cash Flows for the years ended September 30, 2022, 2021, and 2020 as non-cash investing activities. Excluded from the Statement of Consolidated Cash Flows for the year ended September 30, 2021, were non-cash investing and financing activities of $233 million related primarily to an increase in lease assets and liabilities incurred for a finance lease that was amended in March 2021. Excluded from the Statement of Consolidated Cash Flows for the year ended September 30, 2020, as non-cash financing activities, was $394 million related to lease obligations incurred primarily in connection with a PPA. See Note 8 — Leases for further information regarding TVA's finance leases. Also excluded from the Statement of Consolidated Cash Flows for the year ended September 30, 2020, were $80 million and $73 million as non-cash financing and investing activities, respectively, due to derecognition of the Paradise pipeline financing obligation and asset. No material finance leases were entered into during the year ended September 30, 2022. Cash flows from swap contracts that are accounted for as hedges are classified in the same category as the item being hedged or on a basis consistent with the nature of the instrument. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Supplemental Cash Flow Information | |||
Interest paid | $ 1,100 | $ 1,100 | $ 1,100 |
Capital lease obligations incurred | 394 | ||
Non-cash financing activities | 80 | ||
Non-cash investing activities | 73 | ||
Lease assets obtained in exchange for lease obligations - finance | 0 | 233 | 394 |
Accounts payable and accrued liabilities | |||
Supplemental Cash Flow Information | |||
Construction in progress and Nuclear fuel expenditures | $ 629 | $ 637 | $ 398 |
Summary of Significant Accounti
Summary of Significant Accounting Policies [Text Block] | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | General The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt. TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates. Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people. TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development. TVA performs these management duties in cooperation with other federal and state agencies that have jurisdiction and authority over certain aspects of the river system. In addition, the TVA Board of Directors ("TVA Board") has established two councils — the Regional Resource Stewardship Council and the Regional Energy Resource Council — to advise TVA on its stewardship activities in the Tennessee Valley and its energy resource activities. The power program has historically been separate and distinct from the stewardship programs. It is required to be self-supporting from power revenues and proceeds from power financings, such as proceeds from the issuance of bonds, notes, or other evidences of indebtedness (collectively, "Bonds"). Although TVA does not currently receive Congressional appropriations, it is required to make annual payments to the United States Department of the Treasury ("U.S. Treasury") as a return on the government's appropriation investment in TVA's power facilities (the "Power Program Appropriation Investment"). In the 1998 Energy and Water Development Appropriations Act, Congress directed TVA to fund essential stewardship activities related to its management of the Tennessee River system and nonpower or stewardship properties with power revenues in the event that there were insufficient appropriations or other available funds to pay for such activities in any fiscal year. Congress has not provided any appropriations to TVA to fund such activities since 1999. Consequently, during 2000, TVA began paying for essential stewardship activities primarily with power revenues, with the remainder funded with user fees and other forms of revenues derived in connection with those activities. The activities related to stewardship properties do not meet the criteria of an operating segment under accounting principles generally accepted in the United States of America ("GAAP"). Accordingly, these assets and properties are included as part of the power program, TVA's only operating segment. Power rates are established by the TVA Board as authorized by the Tennessee Valley Authority Act of 1933, as amended, 16 U.S.C. §§ 831-831ee ("TVA Act"). The TVA Act requires TVA to charge rates for power that will produce gross revenues sufficient to provide funds for operation, maintenance, and administration of its power system; payments to states and counties in lieu of taxes ("tax equivalents"); debt service on outstanding indebtedness; payments to the U.S. Treasury in repayment of and as a return on the Power Program Appropriation Investment; and such additional margin as the TVA Board may consider desirable for investment in power system assets, retirement of outstanding Bonds in advance of maturity, additional reduction of the Power Program Appropriation Investment, and other purposes connected with TVA's power business. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment with the 2014 payment; therefore, this repayment obligation is no longer a component of rate setting. In setting TVA's rates, the TVA Board is charged by the TVA Act to have due regard for the primary objectives of the TVA Act, including the objective that power shall be sold at rates as low as are feasible. Rates set by the TVA Board are not subject to review or approval by any state or other federal regulatory body. Fiscal Year TVA's fiscal year ends September 30. Years (2022, 2021, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years. Cost-Based Regulation Since the TVA Board is authorized by the TVA Act to set rates for power sold to its customers, TVA is self-regulated. Additionally, TVA's regulated rates are designed to recover its costs. Based on current projections, TVA believes that rates, set at levels that will recover TVA's costs, can be charged and collected. As a result of these factors, TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. TVA assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, potential legislation, and changes in technology. Based on these assessments, TVA believes the existing regulatory assets are probable of recovery. This determination reflects the current regulatory and political environment and is subject to change in the future. If future recovery of regulatory assets ceases to be probable, or TVA is no longer considered to be a regulated entity, then costs would be required to be written off. All regulatory asset write offs would be required to be recognized in earnings in the period in which future recovery ceases to be probable. Basis of Presentation The accompanying consolidated financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 11 — Variable Interest Entities . Intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements. Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period. Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results. Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows. Cash, Cash Equivalents, and Restricted Cash Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations. See Note 21 — Commitments and Contingencies — Legal Proceedings — Environmental Agreements . The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows: Cash, Cash Equivalents, and Restricted Cash At September 30 (in millions) 2022 2021 Cash and cash equivalents $ 500 $ 499 Restricted cash and cash equivalents included in Other long-term assets 20 19 Total cash, cash equivalents, and restricted cash $ 520 $ 518 Allowance for Uncollectible Accounts TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period. To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses. To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio. The allowance for uncollectible accounts was less than $1 million at both September 30, 2022 and 2021, for trade accounts receivable. Additionally, loans receivable of $105 million and $99 million at September 30, 2022 and 2021, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $3 million and $4 million at September 30, 2022 and 2021, respectively. Revenues TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month. Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements. Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net. Inventories Certain Fuel, Materials, and Supplies . Materials and supplies inventories are valued using an average unit cost method. A new average cost is computed after each inventory purchase transaction, and inventory issuances are priced at the latest moving weighted average unit cost. Coal, fuel oil, and natural gas inventories are valued using an average cost method. A new weighted average cost is computed monthly, and monthly issues are priced accordingly. Renewable Energy Certificates. TVA accounts for Renewable Energy Certificates ("RECs") using the specific identification cost method. RECs that are acquired through power purchases are recorded as inventory and charged to purchased power expense when the RECs are subsequently used or sold. TVA assigns a value to the RECs at the inception of the power purchase arrangement using a relative standalone selling price approach. RECs created through TVA-owned asset generation are recorded at zero cost. Emission Allowances . TVA accounts for emission allowances using the specific identification cost method. Allowances that are acquired through third party purchases are recorded as inventory at cost and charged to operating expense based on tons emitted during the respective compliance periods. Allowance for Inventory Obsolescence . TVA reviews materials and supplies inventories by category and usage on a periodic basis. Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data. TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence. Property, Plant, and Equipment, and Depreciation Property, Plant, and Equipment. Additions to plant are recorded at cost, which includes direct and indirect costs. The cost of current repairs and minor replacements is charged to operating expense. Nuclear fuel, which is included in Property, plant, and equipment, is valued using the average cost method for raw materials and the specific identification method for nuclear fuel in a reactor. Amortization of nuclear fuel in a reactor is calculated on a units-of-production basis and is included in fuel expense. When property, plant, and equipment is retired, accumulated depreciation is charged for the original cost of the assets. Gains or losses are only recognized upon the sale of land or an entire operating unit. TVA capitalizes certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in Property, plant, and equipment on the Consolidated Balance Sheets and are generally amortized over seven years. Depreciation. TVA accounts for depreciation of its properties using the composite depreciation convention of accounting. Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years. During the first quarter of 2022, TVA implemented a new depreciation study related to its completed plant. The new study included a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. Implementation of the study resulted in an estimated increase to depreciation and amortization expense of approximately $345 million during 2022. This estimate represents the effect of using the new depreciation rates on the property, plant, and equipment balances at September 30, 2021, and does not include any potential impact from additions to or retirements of net completed plant, that occurred since September 30, 2021. Depreciation expense for the years ended September 30, 2022, 2021, and 2020 was $1.8 billion, $1.4 billion, and $1.6 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 2.98 percent for 2022, 2.28 percent for 2021, and 2.74 percent for 2020. Average depreciation rates by asset class are as follows: Property, Plant, and Equipment Depreciation Rates At September 30 2022 2021 2020 Asset Class Nuclear 2.72 2.38 2.38 Coal-fired (1) 4.27 1.95 3.62 Hydroelectric 1.85 1.60 1.60 Gas and oil-fired 3.38 2.98 3.04 Transmission 1.51 1.34 1.34 Other 3.64 7.12 7.26 Note (1) The rates include the acceleration of depreciation related to retiring certain coal-fired units and potentially retiring the remainder of the coal-fired fleet by 2035. See Note 7 — Plant Closures . Reacquired Rights . Property, plant, and equipment includes intangible reacquired rights, net of amortization, of $178 million and $184 million as of September 30, 2022 and 2021, respectively, related to the purchase of residual interests from lease/leaseback agreements of certain combustion turbine units ("CTs"). Reacquired rights are amortized over the estimated useful lives of the underlying CTs which range from 33 to 35 years. Amortization expense was $6 million for 2022 and $8 million for the years 2021 and 2020, and accumulated amortization at September 30, 2022 and 2021 totaled $42 million and $36 million, respectively. At September 30, 2022, the estimated aggregate amortization expense (in millions) for each of the next five years and thereafter is shown below: 2023 2024 2025 2026 2027 Thereafter Reacquired Rights $ 6 $ 6 $ 6 $ 6 $ 6 $ 148 Impairment of Assets. TVA evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For long-lived assets, TVA bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, regulatory approval and ability to set rates at levels that allow for recoverability of the assets, and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, TVA determines whether an impairment has occurred based on an estimate of undiscounted cash flows attributable to the asset as compared with the carrying value of the asset. If an impairment has occurred, the amount of the impairment recognized is measured as the excess of the asset's carrying value over its fair value. Additionally, TVA regularly evaluates construction projects. If the project is canceled or deemed to have no future economic benefit, the project is written off as an asset impairment or, upon TVA Board approval, reclassified as a regulatory asset and amortized over the Board-approved period. See Note 7 — Plant Closures . Leases TVA recognizes a lease asset and lease liability for leases with terms of greater than 12 months. Lease assets represent TVA's right to use an underlying asset for the lease term, and lease liabilities represent TVA's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. TVA has certain lease agreements that include variable lease payments that are based on energy production levels. These variable lease payments are not included in the measurement of the lease assets or lease liabilities but are recognized in the period in which the expenses are incurred. While not specifically structured as leases, certain power purchase agreements ("PPAs") are deemed to contain a lease of the underlying generating units when the terms convey the right to control the use of the assets. Amounts recorded for these leases are generally based on the amount of the scheduled capacity payments due over the remaining terms of the PPAs, the terms of which vary. The total lease obligations included in Accounts payable and accrued liabilities and Other long-term liabilities and Finance lease liabilities related to these agreements were $425 million and $133 million for finance and operating leases, respectively, at September 30, 2022. The total lease obligations included in Accounts payable and accrued liabilities and Other long-term liabilities and Finance lease liabilities related to these agreements were $464 million and $143 million for finance and operating leases, respectively, at September 30, 2021. TVA has agreements with lease and non-lease components and has elected to account for the components separately. Consideration is allocated to lease and non-lease components generally based on relative standalone selling prices. TVA has lease agreements which include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in TVA's lease measurements. Leases with an initial term of 12 months or less, which do not include an option to extend the initial term of the lease to greater than 12 months that TVA is reasonably certain to exercise, are not recorded on the Consolidated Balance Sheets at September 30, 2022. Operating leases are recognized on a straight-line basis over the term of the lease agreement. Rent expense associated with short-term leases and variable leases is recorded in Operating and maintenance expense, Fuel expense, or Purchased power expense on the Consolidated Statements of Operations. Expenses associated with finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the related lease asset on the Consolidated Statements of Operations. Decommissioning Costs TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets. These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration. Revisions to the forecasted costs of decommissioning activities are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially. Studies are updated for both nuclear and non-nuclear decommissioning costs at least every five years. Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset. See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations. Down-blend Offering for Tritium TVA, the U.S. Department of Energy ("DOE"), and certain nuclear fuel contractors have entered into agreements, referred to as the Down-blend Offering for Tritium ("DBOT"), that provide for the production, processing, and storage of low-enriched uranium that is to be made using surplus DOE highly enriched uranium and other uranium. Low-enriched uranium can be fabricated into fuel for use in a nuclear power plant. Production of the low-enriched uranium began in 2019 and is contracted to continue through September 2025. Contract activity will consist of storage and flag management. Flag management ensures that the uranium is of U.S. origin, free from foreign obligations, and unencumbered by policy restrictions, so that it can be used in connection with the production of tritium. Under the terms of the interagency agreement between the DOE and TVA, the DOE will reimburse TVA for a portion of the costs of converting the highly enriched uranium to low-enriched uranium. Since 2019, TVA has received $188 million in reimbursements from the DOE. At September 30, 2022, TVA recorded $9 million in Accounts receivable, net related to this agreement. Investment Funds Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 21 — Commitments and Contingencies — Decommissioning Costs ), the Supplemental Executive Retirement Plan ("SERP") (see Note 20 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan ), and the Deferred Compensation Plan ("DCP"). The Nuclear Decommissioning Trust ("NDT") holds funds primarily for the ultimate decommissioning of TVA's nuclear power plants. The Asset Retirement Trust ("ART") holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance. The NDT, ART, SERP, and DCP funds are all classified as trading. Insurance Although TVA uses private companies to administer its healthcare plans for eligible active and retired employees not covered by Medicare, TVA does not purchase health insurance. Third-party actuarial specialists assist TVA in determining certain liabilities for self-insured claims. TVA recovers the costs of claims through power rates and through adjustments to the participants' contributions to their benefit plans. These liabilities are included in Other long-term liabilities on the Consolidated Balance Sheets. The Federal Employees' Compensation Act ("FECA") governs liability to employees for service-connected injuries. TVA purchases excess workers' compensation insurance above a self-insured retention. In addition to excess workers' compensation insurance, TVA purchases property and liability insurance for nuclear assets and operations. See Note 21 — Commitments and Contingencies — Nuclear Insurance . TVA also purchases liability insurance and property insurance for certain conventional (non-nuclear) assets, and other insurance policies when commercially feasible. The insurance policies are subject to the terms and conditions of the specific policy, including deductibles or self-insured retentions. To the extent insurance would not provide either a partial or total recovery of the costs associated with a loss, TVA would have to recover any such costs through other means, including through power rates. Research and Development Costs Research and development costs are expensed when incurred. TVA's research programs include those related to power delivery technologies, emerging technologies (clean energy, renewables, distributed resources, and energy efficiency), technologies related to generation (fossil fuel, nuclear, and hydroelectric), and environmental technologies. Tax Equivalents TVA is not subject to federal income taxation. In addition, neither TVA nor its property, franchises, or income is subject to taxation by states or their subdivisions. The TVA Act requires TVA to make payments to states and counties in which TVA conducts its power operations and in which TVA has acquired power properties previously subject to state and local taxation. The total amount of these payments is five percent of gross revenues from sales of power during the preceding year, excluding sales or deliveries to other federal agencies and off-system sales with other utilities, with a provision for minimum payments under certain circumstances. TVA calculates tax equivalent expense by subtracting the prior year fuel cost-related tax equivalent regulatory asset or liability from the payments made to the states and counties during the current year and adding back the current year fuel cost-related tax equivalent regulatory asset or liability. Fuel cost-related tax equivalent expense is recognized in the same accounting period in which the fuel cost-related revenue is recognized. |
Impact of New Accounting Standa
Impact of New Accounting Standards and Interpretations | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle [Text Block] | Impact of New Accounting Standards and Interpretations The following are accounting standard updates issued by the Financial Accounting Standards Board ("FASB") that TVA adopted during 2022: Lessor-Certain Leases with Variable Lease Payments Description This guidance amends the lessor lease classification for leases that have variable lease payments that are not based on an index or rate. If the lease meets the criteria for classification as either (1) a sale-type or (2) a direct finance lease, and application of the lease guidance would result in recognition of a day-one selling loss, then the lease should be classified as an operating lease. There are two transition methods provided by the guidance for entities that have adopted the standard: • Retrospective application to leases that commenced or were modified after the beginning of the period in which the standard was adopted, or • Prospective application to leases that commence or are modified subsequent to the date that amendments in the guidance are first applied. Effective Date for TVA October 1, 2021 Effect on the Financial Statements or Other Significant Matters TVA adopted this standard on a prospective basis. Adoption of this standard did not have a material Reference Rate Reform Description This guidance provides temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rates ("SOFR"). Effective Date for TVA December 31, 2021 Effect on the Financial Statements or Other Significant Matters TVA had interest rate swap contracts that totaled a notional value of $1.5 billion at December 31, 2021, that were indexed to LIBOR. TVA adopted the International Swaps and Derivative Association’s ("ISDA’s") LIBOR fallback protocol for interest rate swaps prior to December 31, 2021. Under this protocol, U.S. dollar LIBOR transactions would fall back to the SOFR upon cessation of the related LIBOR publication. The interest rate swap contracts did not receive hedge accounting treatment, and therefore TVA did not elect any optional expedients for this modification. TVA does not have any other significant contracts, including lease agreements, that include payments indexed to LIBOR. Therefore, the change of reference rate did not have a material impact on TVA’s financial condition, results of operations, or cash flows. The following accounting standards have been issued but as of September 30, 2022, were not effective and had not been adopted by TVA: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers Description This guidance requires an entity (acquirer) to recognize and measure contract assets and contract Effective Date for TVA This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, Effect on the Financial Statements or Other Significant Matters TVA does not expect the adoption of this standard to have a material impact on its financial condition, Troubled Debt Restructurings and Vintage Disclosures Description This guidance eliminates the recognition and measurement guidance on troubled debt restructuring for Effective Date for TVA This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, Effect on the Financial Statements or Other Significant Matters TVA does not expect the adoption of this standard to have a material impact on its financial condition, |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | 3. Accounts Receivable, Net Accounts receivable primarily consist of amounts due from customers for power sales. The table below summarizes the types and amounts of TVA's accounts receivable: Accounts Receivable, Net At September 30 (in millions) 2022 2021 Power receivables $ 1,899 $ 1,480 Other receivables 108 86 Accounts receivable, net (1) $ 2,007 $ 1,566 Note (1) Allowance for uncollectible accounts was less than $1 million at both September 30, 2022 and 2021, and therefore is not represented in the table above. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Sep. 30, 2022 | |
Inventory, Net [Abstract] | |
Inventories, Net | 4. Inventories, Net The table below summarizes the types and amounts of TVA's inventories: Inventories, Net At September 30 (in millions) 2022 2021 Materials and supplies inventory $ 808 $ 775 Fuel inventory 303 198 Renewable energy certificates/emissions allowance inventory, net 18 12 Allowance for inventory obsolescence (57) (35) Inventories, net $ 1,072 $ 950 Fuel inventory increased $105 million at September 30, 2022, as compared to September 30, 2021, primarily due to an increase in coal inventory of $58 million and an increase in natural gas inventory of $32 million. Coal inventory increased primarily due to higher costs of fuel, including transportation costs, as a result of continued supply constraints driven by both domestic and export demand, limited production capacity, and market volatility. Coal inventory also increased over the prior year due to coal conservation efforts and an increase in inventory levels as TVA prepares for winter inventory needs. Natural gas inventory increased primarily due to higher gas prices, as well as an increase in the amount of stored gas to mitigate fuel price volatility. |
Net Completed Plant
Net Completed Plant | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Property, Plant, and Equipment and Intangible Assets | Net Completed Plant Net completed plant consisted of the following: Net Completed Plant At September 30 (in millions) 2022 2021 Cost Accumulated Depreciation Cost Accumulated Depreciation Net Coal-fired (1) $ 18,145 $ 13,649 $ 4,496 $ 19,319 $ 14,357 $ 4,962 Gas and oil-fired 6,112 1,957 4,155 6,076 1,824 4,252 Nuclear 26,629 12,928 13,701 26,024 12,632 13,392 Transmission 8,919 3,301 5,618 8,597 3,215 5,382 Hydroelectric 3,987 1,192 2,795 3,525 1,135 2,390 Other electrical plant 1,724 807 917 1,943 1,103 840 Multipurpose dams 900 396 504 900 388 512 Other stewardship 26 9 17 27 9 18 Total $ 66,442 $ 34,239 $ 32,203 $ 66,411 $ 34,663 $ 31,748 Note (1) TVA recognized accelerated depreciation as a result of the decision to idle or retire certain units and the potential retirement of the remainder of the coal-fired fleet by 2035. See Note 7 — Plant Closures |
Other Long-Term Assets _Text Bl
Other Long-Term Assets [Text Block] | 12 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | 9. Other Long-Term Assets The table below summarizes the types and amounts of TVA's other long-term assets: Other Long-Term Assets At September 30 (in millions) 2022 2021 Loans and other long-term receivables, net $ 99 $ 96 EnergyRight ® receivables, net 49 57 Prepaid long-term service agreements 74 44 Commodity contract derivative assets 102 40 Other 70 83 Total other long-term assets $ 394 $ 320 Loans and Other Long-Term Receivables . TVA's loans and other long-term receivables primarily consist of economic development loans for qualifying organizations and a receivable for reimbursements to recover the cost of providing long-term, on-site storage for spent nuclear fuel. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2022 and 2021, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $6 million and $3 million, respectively. EnergyRight ® Receivables . In association with the EnergyRight ® program, TVA's local power company customers ("LPCs") offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2022 and 2021, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $13 million and $15 million, respectively. See Note 12 — Other Long-Term Liabilities for information regarding the associated financing obligation. Allowance for Loan Losses. The allowance for loan loss is an estimate of expected credit losses, measured over the estimated life of the loan receivables, that considers reasonable and supportable forecasts of future economic conditions in addition to information about historical experience and current conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts . The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis. Allowance Components At September 30 (in millions) 2022 2021 EnergyRight ® loan reserve $ 1 $ 1 Economic development loan collective reserve 1 1 Economic development loan specific loan reserve 1 2 Total allowance for loan losses $ 3 $ 4 Prepaid Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, payments made exceed the value of parts received and services rendered. The current and long-term portions of the resulting prepayments are reported in Other current assets and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both September 30, 2022 and 2021, prepayments of $12 million were recorded in Other current assets. Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA also reinstated the FHP in December 2021, and hedging activity began under the program in the second quarter of 2022. See Note 15 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP f or a |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities [Text Block] | 12 Months Ended |
Sep. 30, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Regulatory Assets and Liabilities TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. Components of regulatory assets and regulatory liabilities are summarized in the table below. Regulatory Assets and Liabilities At September 30 (in millions) 2022 2021 Current regulatory assets Unrealized losses on interest rate derivatives $ 47 $ 114 Unrealized losses on commodity derivatives 14 3 Fuel cost adjustment receivable 77 79 Total current regulatory assets 138 196 Non-current regulatory assets Retirement benefit plans deferred costs 1,839 3,668 Non-nuclear decommissioning costs 2,856 2,653 Unrealized losses on interest rate derivatives 479 1,122 Nuclear decommissioning costs 821 363 Unrealized losses on commodity derivatives 1 — Other non-current regulatory assets 138 150 Total non-current regulatory assets 6,134 7,956 Total regulatory assets $ 6,272 $ 8,152 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 218 $ 130 Unrealized gains on commodity derivatives 173 210 Total current regulatory liabilities 391 340 Non-current regulatory liabilities Retirement benefit plans deferred credits 70 — Unrealized gains on commodity derivatives 102 40 Total non-current regulatory liabilities 172 40 Total regulatory liabilities $ 563 $ 380 Retirement Benefit Plans Deferred Costs (Credits) . TVA measures the funded status of its pension and post-retirement ("OPEB") benefit plans at each year-end balance sheet date. The funded status is measured as the difference between the fair value of plan assets and the benefit obligations at the measurement date for each plan. The changes in funded status are actuarial gains and losses that are recognized on TVA's Consolidated Balance Sheets by adjusting the recognized pension and OPEB liabilities, with the offset deferred as a regulatory asset or a regulatory liability. In an unregulated environment, these deferred costs (credits) would be recognized as an increase or decrease to accumulated other comprehensive income (loss) ("AOCI"). "Incurred cost" is a cost arising from cash paid out or an obligation to pay for an acquired asset or service, and a loss from any cause that has been sustained and for which payment has been or must be made. In the cases of pension and OPEB costs, the unfunded obligation represents a projected liability to the employee for services rendered, and thus it meets the definition of an incurred cost. Therefore, amounts that otherwise would be charged to AOCI for these costs are recorded as a regulatory asset or liability since TVA has historically recovered pension and OPEB expense in rates. Through historical and current year expense included in ratemaking, the TVA Board has demonstrated the ability and intent to include pension and OPEB costs in allowable costs and in rates for ratemaking purposes. As a result, it is probable that future revenue will result from inclusion of the pension and OPEB regulatory assets or regulatory liability in allowable costs for ratemaking purposes. The regulatory asset and liability are classified as long-term, which is consistent with the pension and OPEB liabilities, and are not amortized to the Consolidated Statements of Operations over a specified recovery period. They are adjusted either upward or downward each year in conjunction with the adjustments to the unfunded pension liability and OPEB liability, as calculated by the actuaries. Ultimately the regulatory asset and liability will be recognized in the Consolidated Statements of Operations in the form of pension and OPEB expense as the actuarial liabilities are eliminated in future periods. See Note 20 — Benefit Plans — Obligations and Funded Status . Additionally on October 1, 2014, TVA began recognizing pension costs as a regulatory asset to the extent that the amount calculated under GAAP as pension expense differs from the amount TVA contributes to the pension plan. As a result of previous plan design changes, future contributions are expected to exceed the expense calculated under U.S. GAAP. Accordingly, TVA will discontinue this regulatory accounting practice once all such deferred costs have been recovered, at which time it will recognize pension costs in accordance with U.S. GAAP. Non-Nuclear Decommissioning Costs. Non-nuclear decommissioning costs include: (1) certain deferred charges related to the future closure and decommissioning of TVA's non-nuclear long-lived assets, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's ART, and (4) certain other deferred charges under the accounting rules for AROs. TVA has established the ART to more effectively segregate, manage, and invest funds to help meet future non-nuclear AROs. The funds from the ART may be used, among other things, to pay the costs related to the future closure and retirement of non-nuclear long-lived assets under various legal requirements. These future costs can be funded through a combination of investment funds set aside in the ART, future earnings on those investment funds, and future cash contributions to the ART. In 2022 and 2021, TVA recovered in rates an amount determined by the average life of debt financed for non-nuclear decommissioning expenditures, assuming a 20-year debt service period, and contributions to the ART. Deferred charges will be recovered in rates based on an analysis of the expected expenditures, contributions, and investment earnings required to recover the decommissioning costs. Recovery of future decommissioning costs is dependent upon the future earnings of the ART, timing of decommissioning activities, and changes in decommissioning estimates. The regulatory asset is classified as long-term as amounts recovered are used to service debt or to contribute to the ART, which is restricted for future decommissioning costs. Unrealized Losses on Interest Rate Derivatives . TVA uses regulatory accounting treatment to defer the unrealized gains and losses on certain interest rate derivative contracts. When amounts in these contracts are realized, the resulting gains or losses are included in the ratemaking formula. The unrealized losses on these interest rate derivatives are recorded on TVA's Consolidated Balance Sheets as current and non-current regulatory assets, and the related realized gains or losses, if any, are recorded on TVA's Consolidated Statements of Operations when the contracts settle. A portion of certain unrealized gains and losses will be amortized into earnings over the remaining lives of the contracts. Gains and losses on interest rate derivatives that are expected to be realized within the next year are included as a current regulatory asset or liability on TVA's Consolidated Balance Sheet. Due to rising interest rates in the financial markets and net settlement payments made during 2022, TVA experienced a reduction in unrealized losses related to its derivative instruments for the year ended September 30, 2022. TVA does not recognize unrealized gains and losses from the investment portfolios and derivative instruments within earnings but rather defers all such gains and losses within a regulatory liability or asset in accordance with its accounting policy. See Note 15 — Risk Management Activities and Derivative Transactions and Note 16 — Fair Value Measurements. Nuclear Decommissioning Costs. Nuclear decommissioning costs include: (1) certain deferred charges related to the future closure and decommissioning of TVA's nuclear generating units under the Nuclear Regulatory Commission ("NRC") requirements, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's NDT, and (4) certain other deferred charges under the accounting rules for AROs. These future costs can be funded through a combination of investment funds set aside in the NDT and ART and future earnings on those investment funds. Deferred charges will be recovered in rates based on the analysis of expected expenditures, contributions, and investment earnings required to recover the decommissioning costs. See Note 1 — Summary of Significant Accounting Policies — Investment Funds. Recovery of future decommissioning costs is dependent upon the future earnings of the NDT and ART, timing of decommissioning activities, and changes in decommissioning estimates. The regulatory asset is classified as long-term as amounts recovered are contributed to the NDT or the ART, which are restricted for future decommissioning costs. Nuclear decommissioning costs increased $458 million for the year ended September 30, 2022 as compared to the same period of the prior year, primarily due to investment losses in the NDT and accretion of the related AROs. See Note 13 — Asset Retirement Obligations and Note 16 — Fair Value Measurements Unrealized Gains (Losses) on Commodity Derivatives. TVA enters into certain derivative contracts for natural gas that require the physical delivery of the contracted quantity of the commodity. Unrealized gains (losses) on natural gas purchase contracts, included as part of unrealized gains (losses) on commodity derivatives, relate to the mark-to-market ("MtM") valuation of natural gas purchase contracts. The natural gas purchase contracts qualify as derivative contracts but do not qualify for cash flow hedge accounting treatment. As a result, TVA recognizes the changes in the market value of these derivative contracts as a regulatory liability or asset. This treatment reflects TVA's ability and intent to recover the cost of these commodity contracts on a settlement basis for ratemaking purposes through the fuel cost adjustment. TVA recognizes the actual cost of fuel received under these contracts in fuel expense at the time the fuel is used to generate electricity. These contracts expire at various times through October 2024. Unrealized gains and losses on contracts with a maturity of less than one year are included as a current regulatory asset or liability on TVA's Consolidated Balance Sheets. See Note 15 — Risk Management Activities and Derivative Transactions . TVA reinstated the FHP in December 2021, and hedging activity began under the program in the second quarter of 2022. Currently, TVA is hedging exposure to the price of natural gas under the FHP. Deferred gains and losses relating to TVA's FHP are included as part of unrealized gains and losses on commodity derivatives. TVA defers all MtM unrealized gains or losses as regulatory liabilities or assets, respectively, and records the realized gains or losses in fuel and purchased power expense as the contracts settle to match the delivery period of the underlying commodity. This accounting treatment reflects TVA's ability and intent to include the realized gains or losses of these commodity contracts in future periods through the fuel cost adjustment. Net unrealized gains and losses for any settlements that occur within 12 months or less are classified as a current regulatory liability or asset. See Note 15 — Risk Management Activities and Derivative Transactions. Fuel Cost Adjustment Receivable. The fuel cost adjustment provides a mechanism to alter rates monthly to reflect changing fuel and purchased power costs. There is typically a lag between the occurrence of a change in fuel and purchased power costs and the reflection of the change in fuel rates. Balances in the fuel cost adjustment regulatory accounts represent over-collected or under-collected revenues that offset fuel and purchased power costs, and the fuel rate is designed to recover or refund the balance in less than one year. Other Non-Current Regulatory Assets. Other non-current regulatory assets consist of the following: Deferred Lease Asset and Other Financing Obligations . For certain leases, TVA recognized the initial finance lease and other financing asset and liability at inception of the lease or other obligation. However, the annual expense recognized in rates is equal to the annual payments, which differs from GAAP treatment for non-regulated entities. This practice results in TVA's asset balances being higher than they otherwise would have been under GAAP, with the difference representing a regulatory asset related to the lease or other financing obligation. These costs will be amortized over the respective lease or other financing obligation terms as payments are made. As the costs associated with this regulatory asset are not currently being considered in rates and the asset is expected to increase over the next year, the regulatory asset has been classified as long-term. Debt Reacquisition Costs . Reacquisition expenses, call premiums, and other related costs, such as unamortized debt issue costs associated with redeemed Bond issues, are deferred and amortized (accreted) on a straight-line basis over the weighted average life of TVA's debt portfolio. Because timing of additional reacquisition expenses and changes to the weighted average life of the debt are uncertain, the regulatory asset is classified as long-term. Retirement Removal Costs . Retirement removal costs, net of salvage, that are not legally required are recognized as a regulatory asset. Net removal costs are amortized over a one-year period subsequent to completion of the removal activities. TVA treats this regulatory asset as long-term in its entirety primarily because it relates to assets that are long-term in nature. |
Variable Interest Entities (Tex
Variable Interest Entities (Text Block) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities | 11. Variable Interest Entities A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis. John Sevier VIEs In 2012, TVA entered into a $1.0 billion construction management agreement and lease financing arrangement with John Sevier Combined Cycle Generation LLC ("JSCCG") for the completion and lease by TVA of the John Sevier Combined Cycle Facility ("John Sevier CCF"). JSCCG is a special single-purpose limited liability company formed in January 2012 to finance the John Sevier CCF through a $900 million secured note issuance (the "JSCCG notes") and the issuance of $100 million of membership interests subject to mandatory redemption. The membership interests were purchased by John Sevier Holdco LLC ("Holdco"). Holdco is a special single-purpose entity, also formed in January 2012, established to acquire and hold the membership interests in JSCCG. A non-controlling interest in Holdco is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated. The membership interests held by Holdco in JSCCG were purchased with proceeds from the issuance of $100 million of secured notes (the "Holdco notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each January 15 and July 15, with a final payment due in January 2042. The payment dates for the mandatorily redeemable membership interests are the same as those of the Holdco notes. The sale of the JSCCG notes, the membership interests in JSCCG, and the Holdco notes closed in January 2012. The JSCCG notes are secured by TVA's lease payments, and the Holdco notes are secured by Holdco's investment in, and amounts receivable from, JSCCG. TVA's lease payments to JSCCG are equal to and payable on the same dates as JSCCG's and Holdco's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JSCCG and Holdco. Certain agreements related to this transaction contain default and acceleration provisions. Due to its participation in the design, business activity, and credit and financial support of JSCCG and Holdco, TVA has determined that it has a variable interest in each of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JSCCG and Holdco and, as such, is required to account for the VIEs on a consolidated basis. Holdco's membership interests in JSCCG are eliminated in consolidation. Southaven VIE In 2013, TVA entered into a $400 million lease financing arrangement with Southaven Combined Cycle Generation LLC ("SCCG") for the lease by TVA of the Southaven Combined Cycle Facility ("Southaven CCF"). SCCG is a special single-purpose limited liability company formed in June 2013 to finance the Southaven CCF through a $360 million secured notes issuance (the "SCCG notes") and the issuance of $40 million of membership interests subject to mandatory redemption. The membership interests were purchased by Southaven Holdco LLC ("SHLLC"). SHLLC is a special single-purpose entity, also formed in June 2013, established to acquire and hold the membership interests in SCCG. A non-controlling interest in SHLLC is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows of SHLLC are allocated. The membership interests held by SHLLC were purchased with proceeds from the issuance of $40 million of secured notes (the "SHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each February 15 and August 15, with a final payment due on August 15, 2033. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes, and the payment amounts are sufficient to provide returns on, as well as returns of, capital until the investment has been repaid to SHLLC in full. The rate of return on investment to SHLLC is 7.0 percent, which is reflected as interest expense in the Consolidated Statements of Operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC ("SSSL") on each lease payment date as agreed in SHLLC's formation documents (the "Seven States Return"). The current and long-term portions of the Membership interests of VIE subject to mandatory redemption are included in Accounts payable and accrued liabilities and Other long-term liabilities, respectively. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes. The SCCG notes are secured by TVA's lease payments, and the SHLLC notes are secured by SHLLC's investment in, and amounts receivable from, SCCG. TVA's lease payments to SCCG are payable on the same dates as SCCG's and SHLLC's semi-annual debt service payments and are equal to the sum of (i) the amount of SCCG's semi-annual debt service payments, (ii) the amount of SHLLC's semi-annual debt service payments, and (iii) the amount of the Seven States Return. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by SCCG and SHLLC. Certain agreements related to this transaction contain default and acceleration provisions. In the event that TVA were to choose to exercise an early buy out feature of the Southaven facility lease, in part or in whole, TVA must pay to SCCG amounts sufficient for SCCG to repay or partially repay on a pro rata basis the membership interests held by SHLLC, including any outstanding investment amount plus accrued but unpaid return. TVA also has the right, at any time and without any early redemption of the other portions of the Southaven facility lease payments due to SCCG, to fully repay SHLLC's investment, upon which repayment SHLLC will transfer the membership interests to a designee of TVA. TVA participated in the design, business activity, and financial support of SCCG and has determined that it has a direct variable interest in SCCG resulting from risk associated with the value of the Southaven CCF at the end of the lease term. Based on its analysis, TVA has determined that it is the primary beneficiary of SCCG and, as such, is required to account for the VIE on a consolidated basis. Impact on Consolidated Financial Statements The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, and SCCG as of September 30, 2022 and 2021, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets At September 30 (in millions) 2022 2021 Current liabilities Accrued interest $ 10 $ 10 Accounts payable and accrued liabilities 2 3 Current maturities of long-term debt of variable interest entities 39 43 Total current liabilities 51 56 Other liabilities Other long-term liabilities 18 20 Long-term debt, net Long-term debt of variable interest entities, net 968 1,006 Total liabilities $ 1,037 $ 1,082 Interest expense of $50 million, $52 million, and $54 million related to debt of VIEs and membership interests of variable interest entity subject to mandatory redemption is included on the Consolidated Statements of Operations for the years ended September 30, 2022, 2021, and 2020, respectively. At September 30, 2022, TVA had outstanding debt of VIEs of $1.0 billion and outstanding membership interests subject to mandatory redemption (including current portion) of $20 million issued by one of its VIEs of which it is the primary beneficiary. The following table sets forth TVA's future payments at September 30, 2022: Maturities Due in the Year Ending September 30 (in millions) 2023 2024 2025 2026 2027 Thereafter Long-term debt of VIEs including current maturities (1) $ 39 $ 36 $ 37 $ 39 $ 40 $ 822 Membership interests of variable interest entity subject to mandatory redemption 2 1 1 1 1 14 Note (1) Long-term debt of VIEs does not include non-cash item of unamortized debt issue costs of $6 million. Creditors of the VIEs do not have any recourse to the general credit of TVA. TVA does not have any obligations to provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations During the year ended September 30, 2022, TVA's total ARO liability increased $160 million. To estimate its decommissioning obligation related to its nuclear generating stations, TVA uses a probability-weighted, discounted cash flow model which, on a unit-by-unit basis, considers multiple outcome scenarios that include significant estimations and assumptions. Those assumptions include (1) estimates of the cost of decommissioning; (2) the method of decommissioning and the timing of the related cash flows; (3) the license period of the nuclear plant, considering the probability of license extensions; (4) cost escalation factors; and (5) the credit adjusted risk free rate to measure the obligation at the present value of the future estimated costs. TVA has ascribed probabilities to two different decommissioning methods related to its nuclear decommissioning obligation estimate: the DECON method and the SAFSTOR method. The DECON method requires radioactive contamination to be removed from a site and safely disposed of or decontaminated to a level that permits the site to be released for unrestricted use shortly after it ceases operation. The SAFSTOR method allows nuclear facilities to be placed and maintained in a condition that allows the facilities to be safely stored and subsequently decontaminated to levels that permit release for unrestricted use. The revisions in nuclear estimates increased the liability balance by $61 million for the year ended September 30, 2022. This was primarily due to approval and implementation of the most recent site-specific cost study in September 2022 resulting in an increase of $58 million. TVA also has decommissioning obligations related to its non-nuclear generating sites, ash impoundments, transmission substation and distribution assets, and certain general facilities. To estimate its decommissioning obligation related to these assets, TVA uses estimations and assumptions for the amounts and timing of future expenditures and makes judgments concerning whether or not such costs are considered a legal obligation. Those assumptions include (1) estimates of the costs of decommissioning, (2) the method of decommissioning and the timing of the related cash flows, (3) the expected retirement date of each asset, (4) cost escalation factors, and (5) the credit adjusted risk free rate to measure the obligation at the present value of the future estimated costs. TVA bases its decommissioning estimates for each asset on its identified preferred closure method. The revisions in non-nuclear estimates increased the liability balance by $186 million for the year ended September 30, 2022. During the year, TVA completed an engineering review of its cost estimates for closure of certain areas containing coal fines at Paradise Fossil Plant ("Paradise"), which resulted in an increase of $119 million due to expected cost increases for necessary changes in activities associated with proper completion of the closure. Coal combustion residuals ("CCR") closure liabilities at Paradise and Cumberland increased $82 million due to new vendor bids, modified closure designs, and revised estimates for construction costs. Refined project cost assumptions and scope changes related to TVA's AROs for the closure of certain coal yards at its fossil plants resulted in an increase of $57 million. In addition, effective October 1, 2022, TVA implemented revised depreciation rates applicable to its completed plant due to the results of a new depreciation study. The study included a decline in the service life estimates of TVA's coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the change in service life estimates reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA increased AROs by $47 million due to identified changes in the projections of timing of certain asset retirement activities. Partially offsetting these increases, expected reductions in CCR post-closure costs for maintenance and monitoring at Paradise, Shawnee, and Colbert Fossil Plant ("Colbert") resulted in a decrease of $53 million. CCR closure liabilities at Gallatin decreased $30 million due to selection of a new vendor bid and changes to anticipated timing of certain asset retirement activities. In addition, CCR closure liabilities at Allen Fossil Plant decreased $15 million as a result of changes in cost estimates and anticipated timing of various retirement activities. The revisions in non-nuclear estimates increased $191 million for the year ended September 30, 2021. This increase was primarily driven by revisions of approximately $122 million to certain CCR closure liabilities at Shawnee, Paradise, Colbert, Cumberland, and Gallatin resulting from revised engineering estimates for construction costs, new vendor bids, modified closure designs, and expected costs associated with post-closure care of closed areas. CCR ARO liabilities associated with groundwater well monitoring also increased approximately $69 million due to expansion in the scope of recurring activities including measuring, modeling, and reporting. In addition, TVA's use of a new CCR landfill at Shawnee and expansion of landfill acreage used at Gallatin resulted in new obligations of $30 million and $13 million, respectively. Additionally, during the years ended September 30, 2022 and 2021, both the nuclear and non-nuclear liabilities were increased by periodic accretion, partially offset by settlement projects that were conducted during these periods. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During 2022, 2021, and 2020, $137 million, $72 million, and $169 million, respectively, of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 10 — Regulatory Assets and Liabilities . TVA maintains investment trusts to help fund its decommissioning obligations. See Note 16 — Fair Value Measurements — Investment Funds and Note 21 — Commitments and Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts. Asset Retirement Obligation Activity (in millions) Nuclear Non-Nuclear Total Balance at September 30, 2020 $ 3,278 $ 3,507 $ 6,785 Settlements (11) (231) (242) Revisions in estimate 12 191 203 Additional obligations — 43 43 Accretion (recorded as regulatory asset) 149 64 213 Balance at September 30, 2021 3,428 3,574 7,002 (1) Settlements (2) (309) (311) (2) Revisions in estimate 61 186 247 Accretion (recorded as regulatory asset) 156 68 224 Balance at September 30, 2022 $ 3,643 $ 3,519 $ 7,162 (1) Note (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to operating leases. The table below summarizes the types and amounts of Other long-term liabilities: Other Long-Term Liabilities At September 30 (in millions) 2022 2021 (1) Interest rate swap liabilities $ 851 $ 1,524 Operating lease liabilities 93 122 Currency swap liabilities 228 76 EnergyRight® financing obligation 58 66 Long-term deferred compensation 39 42 Advances for construction 53 24 Long-term deferred revenue 39 37 Accrued long-term service agreements — 29 Other 124 121 Total other long-term liabilities $ 1,485 $ 2,041 Note (1) At September 30, 2021, $5 million and $19 million previously classified as Long-term deferred revenue (a component of Other long-term liabilities) and Other (a component of Other long-term liabilities), respectively, were reclassified to Advances for construction (a component of Other long-term liabilities) to conform with current year presentation. Interest Rate Swap Liabilities . TVA uses interest rate swaps to fix variable short-term debt to a fixed rate. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets. At September 30, 2022 and 2021, the carrying amount of the interest rate swap liabilities reported in Accounts payable and accrued liabilities and Accrued interest was $54 million and $115 million, respectively. See Note 15 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivative s for information regarding the interest rate swap liabilities. As of September 30, 2022, interest rate swap liabilities (including current portion) decreased $734 million as compared to September 30, 2021, primarily due to increases in market interest rates along with net settlement payments made during the year. Operating Lease Liabilities . TVA's operating leases consist primarily of railcars, equipment, real estate/land, and power generating facilities. At September 30, 2022 and 2021, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $59 million and $40 million, respectively. See Note 8 — Leases for more information regarding leases. Currency Swap Liabilities . To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges. The values of these derivatives are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At September 30, 2022 and 2021, the carrying amount of the currency swap liabilities reported in Accounts payable and accrued liabilities was $12 million and $7 million, respectively. As of September 30, 2022, currency swap liabilities (including current portion) increased $157 million as compared to September 30, 2021, primarily due to the strengthening of the U.S. dollar against the British pound sterling. See Note 15 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities. EnergyRight ® Financing Obligation . TVA purchases certain loans receivable from its LPCs in association with the EnergyRight ® program. The current and long-term portions of the resulting financing obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2022 and 2021, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $14 million and $16 million, respectively. See Note 9 — Other Long-Term Assets for information regarding the associated loans receivable. Long-Term Deferred Compensation . TVA provides compensation arrangements to engage and retain certain employees, both executive and non-executive, which are designed to provide participants with the ability to defer compensation to future periods. The current and long-term portions are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At September 30, 2022 and 2021, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $53 million and $51 million, respectively. Advances for Construction . TVA receives refundable and non-refundable advances for construction that are generally intended to defray all or a portion of the costs of building or extending TVA’s existing power assets. Amounts received are deferred as a liability with the long-term portion representing amounts that will not be recognized within the next 12 months. As projects meet milestones or other contractual obligations, the refundable portion is refunded to the customer and the non-refundable portion is recognized as contributions in aid of construction and offsets the cost of plant assets. At September 30, 2022 and 2021, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $33 million and $38 million, respectively. Long-Term Deferred Revenue . Long-term deferred revenue represents payments received that exceed services rendered resulting in the deferral of revenue. This long-term portion represents amounts that will not be recognized within the next 12 months primarily related to fiber and transmission agreements. The current and long-term portions of the deferral are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At September 30, 2022 and 2021, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $16 million and $17 million, respectively. Accrued Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, parts received and services rendered exceed payments made. The current and long-term portions of the resulting obligation are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on |
Debt and Other Obligations
Debt and Other Obligations | 12 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | Debt and Other Obligations General The TVA Act authorizes TVA to issue Bonds in an amount not to exceed $30.0 billion at any time. At September 30, 2022, TVA had only two types of Bonds outstanding: power bonds and discount notes. Power bonds have maturities between one year and 50 years, and discount notes have maturities of less than one year. Power bonds and discount notes are both issued pursuant to Section 15d of the TVA Act and pursuant to 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"). Bonds are not obligations of the U.S., and the U.S. does not guarantee the payments of principal or interest on Bonds. Power bonds and discount notes rank on parity and have first priority of payment from net power proceeds, which are defined as the remainder of TVA's gross power revenues after deducting the costs of operating, maintaining, and administering its power properties and tax equivalent payments, but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds from the sale or other disposition of any power facility or interest therein. TVA considers its scheduled rent payments under its leaseback transactions, as well as its scheduled payments under its lease financing arrangements involving John Sevier CCF and Southaven CCF, as costs of operating, maintaining, and administering its power properties. Costs of operating, maintaining, and administering TVA's power properties have priority over TVA's payments on the Bonds. Once net power proceeds have been applied to payments on power bonds and discount notes as well as any other Bonds that TVA may issue in the future that rank on parity with or subordinate to power bonds and discount notes, Section 2.3 of the Basic Resolution provides that the remaining net power proceeds shall be used only for (1) minimum payments into the U.S. Treasury required by the TVA Act as repayment of, and as a return on, the Power Program Appropriation Investment; (2) investment in power system assets; (3) additional reductions of TVA's capital obligations; and (4) other lawful purposes related to TVA's power business. The TVA Act and the Basic Resolution each contain two bond tests: the rate test and the bondholder protection test. Under the rate test, TVA must charge rates for power which will produce gross revenues sufficient to provide funds for, among other things, debt service on outstanding Bonds. As of September 30, 2022, TVA was in compliance with the rate test. See Note 1 — Summary of Significant Accounting Policies — General. Under the bondholder protection test, TVA must, in successive five-year periods, use an amount of net power proceeds at least equal to the sum of (1) the depreciation accruals and other charges representing the amortization of capital expenditures and (2) the net proceeds from any disposition of power facilities for either the reduction of its capital obligations (including Bonds and the Power Program Appropriation Investment) or investment in power assets. TVA met the bondholder protection test for the five-year period ended September 30, 2020, and must next meet the bondholder protection test for the five-year period ending September 30, 2025 . Secured Debt of VIEs On August 9, 2013, SCCG issued secured notes totaling $360 million that bear interest at a rate of 3.846 percent. The SCCG notes require amortizing semi-annual payments on each February 15 and August 15, and mature on August 15, 2033. Also on August 9, 2013, SCCG issued $40 million of membership interests subject to mandatory redemption. The proceeds from the secured notes issuance and the issuance of the membership interests were paid to TVA in accordance with the terms of the Southaven head lease. See Note 11 — Variable Interest Entities — Southaven VIE . TVA used the proceeds from the transaction primarily to fund the acquisition of the Southaven CCF from SSSL. On January 17, 2012, JSCCG issued secured notes totaling $900 million in aggregate principal amount that bear interest at a rate of 4.626 percent. Also on January 17, 2012, Holdco issued secured notes totaling $100 million that bear interest at a rate of 7.1 percent. The JSCCG notes and the Holdco notes require amortizing semi-annual payments on each January 15 and July 15, and mature on January 15, 2042. The Holdco notes require a $10 million balloon payment upon maturity. See Note 11 — Variable Interest Entities — John Sevier VIEs . TVA used the proceeds from the transaction to meet its requirements under the TVA Act. Secured debt of VIEs, including current maturities, outstanding at both September 30, 2022 and 2021 totaled $1.0 billion. Short-Term Debt The following table provides information regarding TVA's short-term borrowings: Short-term Borrowings At September 30 2022 2021 Gross amount outstanding - discount notes (in millions) $ 1,173 $ 780 Weighted average interest rate - discount notes 2.93 % 0.03 % Put Options TVA has two issues of Putable Automatic Rate Reset Securities ("PARRS") outstanding. After a fixed-rate period of five years, the coupon rate on the PARRS may automatically be reset downward under certain market conditions on an annual basis. The coupon rate reset on the PARRS is based on a calculation. For both series of PARRS, the coupon rate will reset downward on the reset date if the rate calculated is below the then-current coupon rate on the Bond. The calculation dates, potential reset dates, and terms of the calculation are different for each series. The coupon rate on the 1998 Series D PARRS may be reset on June 1 (annually) if the sum of the five-day average of the 30-Year Constant Maturity Treasury ("CMT") rate for the week ending the last Friday in April, plus 94 basis points, is below the then-current coupon rate. The coupon rate on the 1999 Series A PARRS may be reset on May 1 (annually) if the sum of the five-day average of the 30-Year CMT rate for the week ending the last Friday in March, plus 84 basis points, is below the then-current coupon rate. The coupon rates may only be reset downward, but investors may request to redeem their Bonds at par value in conjunction with a coupon rate reset for a limited period of time prior to the reset dates under certain circumstances. The coupon rate for the 1998 Series D PARRS, which mature in June 2028, has been reset eight times, from an initial rate of 6.750 percent to the current rate of 2.134 percent. In connection with these resets, $318 million of the Bonds have been redeemed; therefore, $256 million of the Bonds were outstanding at September 30, 2022. The coupon rate for the 1999 Series A PARRS, which mature in May 2029, has been reset seven times, from an initial rate of 6.50 percent to the current rate of 2.216 percent. In connection with these resets, $316 million of the Bonds have been redeemed; therefore, $208 million of the Bonds were outstanding at September 30, 2022. Due to the contingent nature of the put option on the PARRS, TVA determines whether the PARRS should be classified as long-term debt or current maturities of long-term debt by calculating the expected reset rate for the Bonds on the calculation dates, described above. If the determination date for reset is before the balance sheet date of the reporting period and the expected reset rate is less than the then-current coupon rate on the PARRS, the PARRS are included in current maturities. Otherwise, the PARRS are included in long-term debt. Debt Securities Activity The table below summarizes the long-term debt securities activity for the years ended September 30, 2022 and 2021. Debt Securities Activity For the years ended September 30 (in millions) 2022 2021 Issues 2021 Series A (1) $ — $ 500 2022 Series A (2) 500 — Discount on debt issues (16) — Total $ 484 $ 500 Redemptions/Maturities (3) 2009 Series B $ 28 $ 29 2011 Series A — 1,500 1998 Series H — 331 2012 Series A 1,000 — Total redemptions/maturities of power bonds 1,028 1,860 Debt of variable interest entities 43 41 Total redemptions/maturities of debt $ 1,071 $ 1,901 Notes (1) The 2021 Series A Bonds were issued at 99.982 percent of par. (2) The 2022 Series A Bonds were issued at 96.786 percent of par. (3) All redemptions were at 100 percent of par. Debt Outstanding Total debt outstanding at September 30, 2022 and 2021, consisted of the following: Short-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity 2022 2021 Short-term debt, net of discounts $ 1,172 $ 780 Current maturities of long-term debt of VIEs issued at par 39 43 Current maturities of power bonds issued at par 880591EN8 8/15/2022 1.875% — 1,000 880591EF5 12/15/2022 3.770% 1 1 880591EF5 6/15/2023 3.770% 28 27 Total current maturities of power bonds issued at par 29 1,028 Total current debt outstanding, net $ 1,240 $ 1,851 Long-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity Coupon 2022 Par 2021 Par Stock Exchange Listings 880591ER9 9/15/2024 2.875% $ 1,000 $ 1,000 New York 880591EW8 5/15/2025 0.750% 1,000 1,000 New York 880591CJ9 11/1/2025 6.750% 1,350 1,350 New York, Hong Kong, Luxembourg, Singapore 880591EU2 2/1/2027 2.875% 1,000 1,000 New York 880591300 (3) 6/1/2028 2.134% 256 256 New York 880591409 (3) 5/1/2029 2.216% 208 208 New York 880591DM1 5/1/2030 7.125% 1,000 1,000 New York, Luxembourg 880591EX6 9/15/2031 1.500% 500 500 New York 880591DP4 6/7/2032 6.587% (2) 279 (1) 337 (1) New York, Luxembourg 880591DV1 7/15/2033 4.700% 472 472 New York, Luxembourg 880591EF5 6/15/2034 3.770% 160 190 None 880591DX7 6/15/2035 4.650% 436 436 New York 880591CK6 4/1/2036 5.980% 121 121 New York 880591CS9 4/1/2036 5.880% 1,500 1,500 New York 880591CP5 1/15/2038 6.150% 1,000 1,000 New York 880591ED0 6/15/2038 5.500% 500 500 New York 880591EH1 9/15/2039 5.250% 2,000 2,000 New York 880591EP3 12/15/2042 3.500% 1,000 1,000 New York 880591DU3 6/7/2043 4.962% (2) 168 (1) 202 (1) New York, Luxembourg 880591EB4 1/15/2048 4.875% 500 500 New York, Luxembourg 880591DZ2 4/1/2056 5.375% 1,000 1,000 New York 880591EJ7 9/15/2060 4.625% 1,000 1,000 New York 880591ES7 9/15/2065 4.250% 1,000 1,000 New York 880591EY4 9/15/2052 4.250% 500 — New York Subtotal 17,950 17,572 Unamortized discounts, premiums, issue costs, and other (124) (115) Total long-term outstanding power bonds, net 17,826 17,457 Long-term debt of VIEs, net 968 1,006 Total long-term debt, net $ 18,794 $ 18,463 Notes (1) Includes net exchange gain from currency transactions of $150 million and $58 million at September 30, 2022 and 2021, respectively. (2) The coupon rate represents TVA's effective interest rate. (3) TVA PARRS, CUSIP numbers 880591300 and 880591409, may be redeemed under certain conditions. See Put Options above. Maturities Due in the Year Ending September 30 (in millions) 2023 2024 2025 2026 2027 Thereafter Total Long-term power bonds including current maturities (1) $ 29 $ 1,022 $ 1,022 $ 1,370 $ 1,020 $ 13,666 $ 18,129 Short-term debt (2) 1,173 — — — — — 1,173 Notes (1) Long-term power bonds does not include non-cash items of foreign currency exchange gain of $150 million, unamortized debt issue costs of $42 million, and net discount on sale of Bonds of $82 million. (2) Short-term debt does not include the non-cash item of discount on issuance of discount notes of $1 million. Credit Facility Agreements TVA has funding available under four long-term revolving credit facilities totaling approximately $2.7 billion: a $150 million credit facility that matures on February 9, 2024, a $500 million credit facility that matures on February 1, 2025, a $1.0 billion credit facility that matures on September 21, 2026, and a $1.0 billion credit facility that matures on March 25, 2027. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At September 30, 2022 and 2021, there were approximately $704 million and $1.2 billion of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 15 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral . The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities: Summary of Long-Term Credit Facilities At September 30, 2022 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2024 $ 150 $ 38 $ — $ 112 February 2025 500 500 — — September 2026 1,000 99 — 901 March 2027 1,000 67 — 933 Total $ 2,650 $ 704 $ — $ 1,946 TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2023 with a maturity date of September 30, 2023. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less. There were no outstanding borrowings under the facility at September 30, 2022. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit. Lease/Leasebacks TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking CTs as well as certain qualified technological equipment and software ("QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. At September 30, 2021, the outstanding le aseback obligations related to the remaining CTs and QTE were $25 million . There were no outstanding leaseback obligations related to the remaining CTs and QTE at September 30, 2022. Prior to 2021, TVA made final rent payments involving 16 CTs, and acquired the equity interest related to these transactions. Rent payments under the remaining CT lease/leaseback transactions were made through January 2022. TVA gave notice in December 2021 of its election to acquire the equity interests related to the remaining eight CTs for a total of $155 million. The associated acquisitions are expected to close in December 2022 and May 2023. In October 2019, TVA provided notice of its intent to purchase the ownership interest in certain QTE through a series of installments. TVA made its last repurchase payment in December 2021, after which the associated leases were terminated. |
Risk Management Activities and
Risk Management Activities and Derivative Transactions | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management Activities and Derivative Transactions | TVA is exposed to various risks related to commodity prices, investment prices, interest rates, currency exchange rates, and inflation as well as counterparty credit and performance risks. To help manage certain of these risks, TVA has historically entered into various derivative transactions, principally commodity option contracts, forward contracts, swaps, swaptions, futures, and options on futures. Other than certain derivative instruments in its trust investment funds, it is TVA's policy to enter into these derivative transactions solely for hedging purposes and not for speculative purposes. In November 2021, the TVA Board approved the elimination of the Value at Risk aggregate transaction limit for the FHP and authorized the use of tolerances and measures that will be reviewed annually by the TVA Board. The tolerances will address counterparty exposure, liquidity risk, and reduction in fuel cost volatility. In addition, the TVA Board approved certain administrative changes to the FHP. In December 2021, TVA reinstated the FHP, and hedging activity began under the program in the second quarter of 2022. Overview of Accounting Treatment TVA recognizes certain of its derivative instruments as either assets or liabilities on its Consolidated Balance Sheets at fair value. The accounting for changes in the fair value of these instruments depends on (1) whether TVA uses regulatory accounting to defer the derivative gains and losses, (2) whether the derivative instrument has been designated and qualifies for hedge accounting treatment, and (3) if so, the type of hedge relationship (for example, cash flow hedge). The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive: Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) For the years ended September 30 Derivatives in Cash Flow Hedging Relationship Objective of Hedge Transaction Accounting for Derivative 2022 2021 Currency swaps To protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk) Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction $ (157) $ 126 Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2) (1) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense For the years ended September 30 Derivatives in Cash Flow Hedging Relationship 2022 2021 Currency swaps $ (93) $ 97 Note (1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $29 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt. Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment Amount of Gain (Loss) Recognized in Income on Derivatives (1) For the years ended September 30 Derivative Type Objective of Derivative Accounting for Derivative Instrument 2022 2021 Interest rate swaps To fix short-term debt variable rate to a fixed rate (interest rate risk) Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow $ (103) $ (115) Commodity derivatives To protect against fluctuations in market prices of purchased commodities (price risk) Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity (2) 47 — Notes (1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory liabilities and assets. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the years ended September 30, 2022 and 2021. (2) Of the amount recognized in 2022, $38 million and $9 million were reported in Fuel expense and Purchased power expense, respectively. Fair Values of TVA Derivatives At September 30 2022 2021 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (130) Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123) $ (36) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(32) £150 million Sterling (110) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105) (47) Accounts payable and accrued liabilities $(3); Other long-term liabilities $(44) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (672) Accounts payable and accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630) $ (1,182) Accounts payable and accrued liabilities $(44); Accrued interest $(37); Other long-term liabilities $(1,101) $476 million notional (233) Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(221) (455) Accounts payable and accrued liabilities $(22); Accrued interest $(10); Other long-term liabilities $(423) $42 million notional (1) — N/A (2) Accounts payable and accrued liabilities $(1); Accrued interest $(1) Commodity contract derivatives 145 Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1) 247 Other current assets $210; Other long-term assets $40; Accounts payable and accrued liabilities $(3) Commodity derivatives under the FHP 115 Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8) — N/A Note (1) At September 30, 2021, represented two interest rate swaps with notional amounts of $28 million and $14 million. In 2022, final payments were made on both of the interest rate swaps. Cash Flow Hedging Strategy for Currency Swaps To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred. TVA had the following currency swaps outstanding at September 30, 2022: Currency Swaps Outstanding Effective Date of Currency Swap Contract Associated TVA Bond Issues Currency Exposure Expiration Date of Swap Overall Effective 2001 £250 million 2032 6.59% 2003 £150 million 2043 4.96% When the dollar strengthens against the British pound sterling, the exchange gain on the Bond liability and related accrued interest is offset by an equal amount of loss on the swap contract that is reclassified out of AOCI. Conversely, the exchange loss on the Bond liability and related accrued interest is offset by an equal amount of gain on the swap contract that is reclassified out of AOCI. All such exchange gains or losses on the Bond liability and related accrued interest are included in Long-term debt, net and Accrued interest, respectively. The offsetting exchange losses or gains on the swap contracts are recognized in AOCI. If any gain (loss) were to be incurred as a result of the early termination of the foreign currency swap contract, the resulting income (expense) would be amortized over the remaining life of the associated Bond as a component of Interest expense. The values of the currency swap liabilities are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Derivatives Not Receiving Hedge Accounting Treatment Interest Rate Derivatives . Generally TVA uses interest rate swaps to fix variable short-term debt to a fixed rate, and TVA uses regulatory accounting treatment to defer the MtM gains and losses on its interest rate swaps. The net deferred unrealized gains and losses are classified as regulatory liabilities or assets on TVA's Consolidated Balance Sheets and are included in the ratemaking formula when gains or losses are realized. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets, and realized gains and losses, if any, are included on TVA's Consolidated Statements of Operations. For the years ended September 30, 2022 and 2021, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $728 million and $402 million, respectively. TVA may hold short-term debt balances lower than the notional amount of the interest rate swaps from time to time due to changes in business conditions and other factors. While actual balances vary, TVA generally plans to maintain average balances of short-term debt equal to or in excess of the combined notional amount of the interest rate swaps. Commodity Derivatives . TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA marks to market these natural gas contracts and defers the fair market values as regulatory assets or liabilities on a gross basis. At September 30, 2022, TVA's natural gas contract derivatives had terms of up to two years. Commodity Contract Derivatives At September 30 2022 2021 Number of Contracts Notional Amount Fair Value (MtM) Number of Contracts Notional Amount Fair Value ( MtM ) (in millions) Natural gas contract derivatives 44 296 million mmBtu $ 145 40 263 million mmBtu $ 247 Commodity Derivatives under the FHP. In December 2021, TVA reinstated the FHP, and hedging activity began under the program in the second quarter of 2022. Currently, TVA is hedging exposure to the price of natural gas under the FHP. There is no Value at Risk aggregate transaction limit under the current FHP structure, but the TVA Board reviews and authorizes the use of tolerances and measures annually. TVA's policy prohibits trading financial instruments under the FHP for speculative purposes. At September 30, 2022, TVA's natural gas swap contracts under the FHP had remaining terms of up to four years. Commodity Derivatives under Financial Hedging Program (1) At September 30, 2022 At September 30, 2021 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas Swap contracts 225 256 million mmBtu $ 115 — — million mmBtu $ — Note (1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts. TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity. Offsetting of Derivative Assets and Liabilities The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below: Derivative Assets and Liabilities (1) At September 30 (in millions) 2022 2021 Assets Commodity contract derivatives $ 152 $ 250 Commodity derivatives under the FHP (2) 123 — Total derivatives subject to master netting or similar arrangement $ 275 $ 250 Liabilities Currency swaps $ 240 $ 83 Interest rate swaps (3) 905 1,639 Commodity contract derivatives 7 3 Commodity derivatives under the FHP (2) 8 — Total derivatives subject to master netting or similar arrangement $ 1,160 $ 1,725 Notes (1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2022 or 2021. (2) At September 30, 2022, the gross derivative asset and gross derivative liability was $168 million and $53 million, respectively, with offsetting amounts for each totaling $45 million. TVA received $68 million of collateral from counterparties as of September 30, 2022, which is recorded separately from the fair values of the derivative assets and liabilities and reported in Accounts payable and accrued liabilities. (3) Letters of credit of approximately $704 million and $1.2 billion were posted as collateral at September 30, 2022 and 2021, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative. Other Derivative Instruments Investment Fund Derivatives . Investment funds consist primarily of funds held in the NDT, ART, SERP, and DCP. See Note 16 — Fair Value Measurements — Investment Funds for a discussion of the trusts, plans, and types of investments. The NDT and ART may invest in derivative instruments which may include swaps, futures, options, forwards, and other instruments. At September 30, 2022 and 2021, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $4 million and $2 million at September 30, 2022 and 2021, respectively. Collateral . TVA's interest rate swaps, currency swaps, and commodity derivatives under the FHP contain contract provisions that require a party to post collateral (in a form such as cash or a letter of credit) when the party's liability balance under the agreement exceeds a certain threshold. At September 30, 2022, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $1.2 billion. TVA's collateral obligations at September 30, 2022, under these arrangements were $602 million, for which TVA had posted $704 million in letters of credit. These letters of credit reduce the available balance under the related credit facilities. TVA's assessment of the risk of its nonperformance includes a reduction in its exposure under the interest rate swap contracts as a result of this posted collateral. In addition, as of September 30, 2022, TVA received $68 million of collateral from counterparties related to the commodity derivatives under the FHP. For all of its derivative instruments with credit-risk related contingent features: • If TVA remains a majority-owned U.S. government entity but Standard & Poor's Financial Services, LLC ("S&P") or Moody's Investors Service, Inc. ("Moody's") downgrades TVA's credit rating to AA or Aa2, respectively, TVA's collateral obligations would likely increase by $22 million, and • If TVA ceases to be majority-owned by the U.S. government, TVA's credit rating would likely be downgraded and TVA would be required to post additional collateral. Counterparty Risk TVA may be exposed to certain risks when a counterparty has the potential to fail to meet its obligations in accordance with agreed terms. These risks may be related to credit, operational, or nonperformance matters. To mitigate certain counterparty risk, TVA analyzes the counterparty's financial condition prior to entering into an agreement, establishes credit limits, monitors the appropriateness of those limits, as well as any changes in the creditworthiness of the counterparty, on an ongoing basis, and when required, employs credit mitigation measures, such as collateral or prepayment arrangements and master purchase and sale agreements. Customers . TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $1.9 billion and $1.5 billion of receivables from power sales outstanding at September 30, 2022 and 2021, respectively, nearly all counterparties were rated investment grade. The obligations of customers that are not investment grade are secured by collateral. TVA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional utilities related to either delivered power or the replacement of open positions of longer-term purchased power or fuel agreements. TVA believes its policies and procedures for counterparty performance risk reviews have generally protected TVA against significant exposure related to market and economic conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts, Note 3 — Accounts Receivable, Net , and Note 9 — Other Long-Term Assets . TVA had revenue from two LPCs that collectively accounted for 17 percent of total operating revenues for both the years ended September 30, 2022 and 2021. Suppliers. TVA assesses potential supplier performance risks, including procurement of fuel, parts, and services. If suppliers are unable to perform under TVA's existing contracts or if TVA is unable to obtain similar services or supplies from other vendors, TVA could experience delays, disruptions, additional costs, or other operational outcomes that may impact generation, maintenance, and capital programs. If certain fuel or purchased power suppliers fail to perform under the terms of their contract with TVA, TVA might lose the money that it paid to the supplier under the contract and have to purchase replacement fuel or power on the spot market, perhaps at a significantly higher price than TVA was entitled to pay under the contract. In addition, TVA might not be able to acquire replacement fuel or power in a timely manner and thus might be unable to satisfy its own obligations to deliver power. TVA continues evaluating potential supplier performance risks and supplier impact but cannot determine or predict the duration of such risks/impacts or the extent to which such risks/impacts could affect TVA's business, operations, and financial results or cause potential business disruptions. TVA has experienced an increase in supplier impacts as a result of Coronavirus Disease 2019 ("COVID-19") and the state of global supply chains and the economy, such as project delays, limited availability of supplies, and price increases. Russia's invasion of Ukraine has further intensified the state of global supply chains and inflationary pressures, and TVA will continue to monitor these pressures. Natural Gas . TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market. TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines. TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions. TVA plans to continue using contracts of various lengths and terms to meet the projected natural gas needs of its natural gas fleet. TVA also maintains on-site, fuel oil backup to operate at the majority of the combustion turbine sites in the event of major supply disruptions. In the event suppliers are unable to perform under existing contracts, TVA can utilize its storage portfolio or other suppliers to help secure replacement natural gas volumes. Coal . To ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers at September 30, 2022. The contracted supply of coal is sourced from several geographic regions of the U.S. and is delivered via barge and rail. As a result of emerging technologies, environmental regulations, industry trends, and natural gas market volatility over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios. A long-term continued decline in demand for coal could result in more consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios. Current market conditions indicate limited availability of spot market coal due to increased exports, utility demand, and mine capacity and capability. TVA experienced challenges in 2021 related to coal supply, as a result of supply limitation and transportation challenges. Coal supply and transportation continued to be constrained in 2022, and these constraints are anticipated to continue into 2023. Rail service continues to limit TVA’s ability to receive contracted supply, and TVA is also seeing supply constraints and price increases for reagents, diesel fuel, and fuel surcharges associated with coal transport, which are also expected to continue. TVA will continue to monitor the coal supply challenges and utilize its contracting strategy and diverse generation portfolio to balance needs and ensure adequate fuel supplies. Nuclear Fuel . Nuclear fuel is obtained predominantly through long-term uranium concentrate supply contracts, contracted conversion services, contracted enrichment services, or a combination thereof, and contracted fuel fabrication services. The supply markets for uranium concentrates and certain nuclear fuel services are subject to price fluctuations and availability restrictions. Supply market conditions may make procurement contracts subject to credit risk related to the potential nonperformance of counterparties. In the event of nonperformance by these or other suppliers, TVA believes that replacement uranium concentrate and nuclear fuel services can be obtained, although at prices that may be unfavorable when compared to the prices under the current supply agreements. As a result of Russia’s invasion of Ukraine, new contracts for Russian origin nuclear fuel have been limited by Executive Order 14066, and further restrictions on the purchase or use of Russian origin fuel may be forthcoming. TVA should have no direct impact from existing or future restrictions since TVA has no Russian origin nuclear fuel in inventory for use in its reactors and it is not contracted to purchase any Russian origin nuclear fuel. TVA could be impacted by higher market prices as a result of general market impacts associated with supply restrictions; however, at this time TVA's nuclear fuel is obtained predominantly through long-term contracts. Purchased Power . TVA acquires power from a variety of power producers through long-term and short-term PPAs as well as through spot market purchases. Because of the long-term nature and reliability of purchased power, TVA requires that the PPAs contain certain counterparty performance assurance requirements to help insure counterparty performance during the term of the agreements. Other Suppliers . Mounting solar supply chain constraints, commodity price increases, and the recent trade policy investigation into solar panel imports have created challenges for the U.S. solar industry, threatening project delays, cancellations, and price increases. These constraints are affecting contracted PPAs from previous requests for proposals that are not yet online and TVA's Self-Directed Solar project. Derivative Counterparties . TVA has entered into physical and financial contracts that are classified as derivatives for hedging purposes, and TVA's NDT, ART, and qualified defined benefit plan ("pension plan") have entered into derivative contracts for investment purposes. If a counterparty to one of the physical or financial derivative transactions defaults, TVA might incur costs in connection with entering into a replacement transaction. If a counterparty to the derivative contracts into which the NDT, the ART, or the pension plan have entered for investment purposes defaults, the value of the investment could decline significantly or perhaps become worthless. TVA has concentrations of credit risk from the banking, coal, and gas industries because multiple companies in these industries serve as counterparties to TVA in various derivative transactions. At September 30, 2022, all of TVA's commodity derivatives under the FHP, currency swaps, and interest rate swaps were with counterparties whose Moody's credit ratings were A2 or higher. TVA classifies forward natural gas contracts as derivatives. See Derivatives Not Receiving Hedge Accounting Treatment |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. Valuation Techniques The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows: Level 1 — Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing. Level 2 — Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means. Level 3 — Pricing inputs that are unobservable, or less observable, from objective sources. Unobservable inputs are only to be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available. A financial instrument's level within the fair value hierarchy (where Level 1 is the highest and Level 3 is the lowest) is based on the lowest level of input significant to the fair value measurement. The following sections describe the valuation methodologies TVA uses to measure different financial instruments at fair value. Except for gains and losses on SERP and DCP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss). Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements. Investment Funds At September 30, 2022, Investment funds were comprised of $3.7 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, and DCP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $2.5 billion and $1.1 billion, respectively, at September 30, 2022. TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations. The DCP is designed to provide participants with the ability to defer compensation to future periods. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance. The NDT, ART, SERP, and DCP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities ("TIPS"), real estate investment trust securities, and cash securities and certain derivative instruments are measured based on quoted exchange prices in active markets and are classified as Level 1 valuations. Fixed-income investments, high-yield fixed-income investments, currencies, and most derivative instruments are non-exchange traded and are classified as Level 2 valuations. These measurements are based on market and income approaches with observable market inputs. Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers. These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years. The investment period is generally, at a minimum, 10 years or longer. The NDT had unfunded commitments related to private equity limited partnerships of $187 million, private real assets of $128 million, and private credit of $57 million at September 30, 2022. The ART had unfunded commitments related to limited partnerships in private equity of $104 million, private real assets of $75 million, and private credit of $32 million at September 30, 2022. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. TVA's private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset values ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy. Commingled funds represent investment funds comprising multiple individual financial instruments. The commingled funds held by the NDT, ART, SERP, and DCP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities. All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments. The fair value of commingled funds is based on NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds. These commingled funds can be redeemed at the measurement date NAV and are classified as Commingled funds measured at NAV in the fair value hierarchy. Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies — Cost-Based Regulation and Note 10 — Regulatory Assets and Liabilities . TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows: Unrealized Investment Gains (Losses) For the years ended September 30 (in millions) Fund Financial Statement Presentation 2022 2021 NDT Regulatory assets $ (396) $ 279 ART Regulatory assets (190) 145 SERP Other income, net (19) 7 DCP Other income, net (5) 1 Currency and Interest Rate Swap Derivatives See Note 15 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps. These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments. Commodity Contract Derivatives and Commodity Derivatives under the FHP Commodity Contract Derivatives. Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage service. Commodity Derivatives under the FHP. Swap contracts are valued using a pricing model based on New York Mercantile Exchange inputs and are subject to nonperformance risk outside of the exit price. These contracts are classified as Level 2 valuations . See Note 15 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP . Nonperformance Risk The assessment of nonperformance risk, which includes credit risk, considers changes in current market conditions, readily available information on nonperformance risk, letters of credit, collateral, other arrangements available, and the nature of master netting arrangements. TVA is a counterparty to currency swaps, interest rate swaps, commodity contracts, and other derivatives which subject TVA to nonperformance risk. Nonperformance risk on the majority of investments and certain exchange-traded instruments held by TVA is incorporated into the exit price that is derived from quoted market data that is used to mark the investment to market. Nonperformance risk for most of TVA's derivative instruments is an adjustment to the initial asset/liability fair value. TVA adjusts for nonperformance risk, both of TVA (for liabilities) and the counterparty (for assets), by applying credit valuation adjustments ("CVAs"). TVA determines an appropriate CVA for each applicable financial instrument based on the term of the instrument and TVA's or the counterparty's credit rating as obtained from Moody's. For companies that do not have an observable credit rating, TVA uses internal analysis to assign a comparable rating to the counterparty. TVA discounts each financial instrument using the historical default rate (as reported by Moody's for CY 1983 to CY 2021) for companies with a similar credit rating over a time period consistent with the remaining term of the contract. The application of CVAs resulted in a $2 million decrease in the fair value of assets and a $2 million decrease in the fair value of liabilities at September 30, 2022. Fair Value Measurements The following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2022 and 2021. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels. Fair Value Measurements At September 30, 2022 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 534 $ — $ — $ 534 Government debt securities (1) 358 36 — 394 Corporate debt securities (2) — 283 — 283 Mortgage and asset-backed securities — 52 — 52 Institutional mutual funds 242 — — 242 Forward debt securities contracts — 4 — 4 Private equity funds measured at net asset value (3) — — — 487 Private real asset funds measured at net asset value (3) — — — 369 Private credit measured at net asset value (3) — — — 103 Commingled funds measured at net asset value (3) — — — 1,203 Total investments 1,134 375 — 3,671 Commodity contract derivatives — 152 — 152 Commodity derivatives under the FHP — 123 — 123 Total $ 1,134 $ 650 $ — $ 3,946 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 240 $ — $ 240 Interest rate swaps — 905 — 905 Commodity contract derivatives — 7 — 7 Commodity derivatives under the FHP — 8 — 8 Total $ — $ 1,160 $ — $ 1,160 Notes (1) Includes government-sponsored entities, including $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Fair Value Measurements At September 30, 2021 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 634 $ — $ — $ 634 Government debt securities (1) 573 24 — 597 Corporate debt securities (2) — 411 — 411 Mortgage and asset-backed securities — 63 — 63 Institutional mutual funds 225 — — 225 Forward debt securities contracts — 2 — 2 Private equity funds measured at net asset value (3) — — — 357 Private real asset funds measured at net asset value (3) — — — 272 Private credit measured at net asset value (3) — — — 71 Commingled funds measured at net asset value (3) — — — 1,421 Total investments 1,432 500 — 4,053 Commodity contract derivatives — 250 — 250 Total $ 1,432 $ 750 $ — $ 4,303 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 83 $ — $ 83 Interest rate swaps — 1,639 — 1,639 Commodity contract derivatives — 3 — 3 Total $ — $ 1,725 $ — $ 1,725 Notes (1) Includes government-sponsored entities, including $573 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Other Financial Instruments Not Recorded at Fair Value TVA uses the methods and assumptions described below to estimate the fair value of each significant class of financial instruments. The fair value of the financial instruments held at September 30, 2022 and 2021, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption. The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2022 and 2021, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At September 30, 2022 At September 30, 2021 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 62 $ 62 $ 72 $ 71 Loans and other long-term receivables, net (including current portion) Level 2 105 96 99 94 EnergyRight ® financing obligations (including current portion) Level 2 72 81 82 92 Unfunded loan commitments Level 2 — — — 3 Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 20 22 23 30 Long-term outstanding power bonds, net (including current maturities) Level 2 17,856 18,070 18,485 24,309 Long-term debt of VIEs, net (including current maturities) Level 2 1,007 989 1,049 1,307 The carrying value of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values. The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable. The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Income and expenses not related to TVA's operating activities are summarized in the following table: Other Income, Net For the years ended September 30 (in millions) 2022 2021 2020 Bellefonte $ — $ (28) $ — Interest income 15 12 18 External services 16 13 12 Gains (losses) on investments (17) 16 9 Miscellaneous (7) — (3) Total other income, net $ 7 $ 13 $ 36 |
Related Parties
Related Parties | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Parties | TVA is a wholly-owned corporate agency of the federal government, and because of this relationship, TVA's revenues and expenses are included as part of the federal budget as a revolving fund. TVA's purpose and responsibilities as an agency are described under the "Other Agencies" section of the federal budget. TVA's power program and stewardship (nonpower) programs were originally funded primarily by appropriations from Congress. In 1959, Congress passed an amendment to the TVA Act that required TVA's power program to be self-financing from power revenues and proceeds from power program financings. While TVA's power program did not directly receive appropriated funds after it became self-financing, TVA continued to receive appropriations for certain multipurpose and other nonpower mission-related activities as well as for its stewardship activities. TVA has not received any appropriations from Congress for any activities since 1999, and since that time, TVA has funded stewardship program activities primarily with power revenues. The 1959 amendment to the TVA Act also required TVA, beginning in 1961, to make annual payments to the U.S. Treasury from net power proceeds as a repayment of and as a return on the Power Program Appropriation Investment until a total of $1.0 billion of the Power Program Appropriation Investment has been repaid in accordance with the 1959 amendment. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment in 2014. The TVA Act requires TVA to continue making payments to the U.S. Treasury as a return on the remaining $258 million of the Power Program Appropriation Investment. TVA paid the U.S. Treasury $4 million, $4 million, and $6 million in 2022, 2021, and 2020, respectively, as a return on the Power Program Appropriation Investment. The amount of the return on the Power Program Appropriation Investment is based on the Power Program Appropriation Investment balance at the beginning of that year and the computed average interest rate payable by the U.S. Treasury on its total marketable public obligations at the same date. The interest rates payable by TVA on the Power Program Appropriation Investment were 1.47 percent, 1.64 percent, and 2.44 percent for 2022, 2021, and 2020, respectively. TVA also has access to a financing arrangement with the U.S. Treasury pursuant to the TVA Act. TVA and the U.S. Treasury entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility has a maturity date of September 30, 2023, and is typically renewed annually. Access to this credit facility or other similar financing arrangements has been available to TVA since the 1960s. See Note 14 — Debt and Other Obligations — Credit Facility Agreements. In the normal course of business, TVA contracts with other federal agencies for sales of electricity and other services. Transactions with agencies of the federal government were as follows: Related Party Transactions At or for the years ended September 30 (in millions) 2022 2021 2020 Revenue from sales of electricity $ 134 $ 109 $ 105 Other income 296 280 260 Expenditures Operating expenses 228 214 224 Additions to property, plant, and equipment 11 10 9 Cash and cash equivalents 30 30 31 Accounts receivable, net 78 65 94 Investment funds 358 573 485 Long-term accounts receivable 43 31 27 Accounts payable and accrued liabilities 42 15 39 Long-term power bonds, net 1 1 1 Return on power program appropriation investment 4 4 6 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | . Subsequent Events Valuation Changes in Derivative Transactions As of November xx , 2022, TVA’s interest rate swap derivative liability and related regulatory asset for unrealized losses are estimated to decrease approximately $120 million compared to September 30, 2022, due to increases in market interest rates. As of November xx , 2022, TVA’s commodity contract derivative asset and related regulatory liability for unrealized gains are estimated to decrease approximately $48 million compared to September 30, 2022. The commodity derivative liability and related regulatory asset for unrealized losses are estimated to decrease $2 million compared to September 30, 2022. TVA's commodity derivative asset under the FHP and related regulatory liability for unrealized gains are estimated to decrease approximately $50 million compared to September 30, 2022. TVA’s commodity derivative liability under the FHP and related regulatory asset for unrealized losses is estimated to increase approximately $27 million compared to September 30, 2022. These changes are primarily due to recent decreases in natural gas prices. |
Plant Closures (Text Block)
Plant Closures (Text Block) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Plant Closures | 7. Plant Closures Background TVA must continuously evaluate all generating assets to ensure an optimal energy portfolio that provides safe, clean, and reliable power while maintaining flexibility and fiscal responsibility to the people of the Tennessee Valley. Based on results of assessments presented to the TVA Board in 2019, the retirement of Bull Run Fossil Plant ("Bull Run") by December 2023 was approved. In addition, TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental reviews, public input, and TVA Board approval. Due to these evaluations, certain planning assumptions were updated, and their financial impacts are discussed below. Financial Impact TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. As a result of TVA's decision to accelerate the retirement of Bull Run, TVA has recognized a cumulative $482 million of accelerated depreciation since the second quarter of 2019. Of this amount, $140 million, $136 million, and $125 million were recognized for the years ended September 30, 2022, 2021, and 2020, respectively. In addition, service lives for Cumberland Fossil Plant ("Cumberland"), Gallatin Fossil Plant ("Gallatin"), Kingston Fossil Plant ("Kingston"), and Shawnee Fossil Plant ("Shawnee") were shortened in a new depreciation study implemented during the first quarter of 2022 to reflect current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result, TVA recognized an estimated $339 million of additional depreciation related to these four coal-fired plants during the year ended September 30, 2022. This estimate represents the effect of using the new depreciation rates on the property, plant, and equipment balances at September 30, 2021, and does not include any potential impact from additions to or retirements of net completed plant, that occurred since September 30, 2021. For the years ended September 30, 2022, 2021, and 2020, respectively, TVA also recognized $22 million, $4 million, and $13 million in Operating and maintenance expense related to additional inventory reserves and project write-offs for the coal-fired fleet, including Bull Run. |
Leases (Text Block)
Leases (Text Block) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | 8 . Leases The following table provides information regarding the presentation of leases on the Consolidated Balance Sheets: Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions) 2022 2021 Assets Operating Operating lease assets, net of amortization $ 155 $ 165 Finance Finance leases 630 692 Total lease assets $ 785 $ 857 Liabilities Current Operating Accounts payable and accrued liabilities $ 59 $ 40 Finance Accounts payable and accrued liabilities 59 60 Non-current Operating Other long-term liabilities 93 122 Finance Finance lease liabilities 628 687 Total lease liabilities $ 839 $ 909 TVA's leases consist primarily of railcars, equipment, real estate/land, power generating facilities, and gas pipelines. TVA's leases have various terms and expiration dates remaining from less than one year to approximately 24 years. The components of lease costs were as follows: Lease Costs For the years ended September 30 (in millions) 2022 2021 2020 Operating lease costs (1) $ 56 $ 52 $ 84 Variable lease costs (1) 78 75 75 Short-term lease costs (1) 26 12 7 Finance lease costs Amortization of lease assets (2) 58 51 15 Interest on lease liabilities (3)(4) 42 39 33 Total finance lease costs 100 90 48 Total lease costs $ 260 $ 229 $ 214 Notes (1) Costs are included in Operating and maintenance expense, Fuel expense, Purchased power expense, and Tax equivalents expense on the Consolidated Statements of Operations. (2) Expense is included in Depreciation and amortization expense on the Consolidated Statements of Operations. (3) Expense is included in Interest expense on the Consolidated Statements of Operations. (4) Certain finance leases receive regulatory accounting treatment and are reclassified to Fuel expense and Purchased power expense. TVA's variable lease costs are primarily related to renewable energy purchase agreements that require TVA to purchase all output from the underlying facility. Payments under those agreements are solely based on the actual output over the lease term. Certain TVA lease agreements contain renewal options. Those renewal options that are reasonably certain to be exercised are included in the lease measurements. The following table contains additional information with respect to cash and non-cash activities related to leases: Amounts Recognized on TVA's Consolidated Statements of Cash Flows For the years ended September 30 (in millions) 2022 2021 2020 Operating cash flows for operating leases $ 57 $ 53 $ 85 Operating cash flows for finance leases 42 39 33 Financing cash flows for finance leases 60 52 15 Lease assets obtained in exchange for lease obligations (non-cash) Operating leases (1) $ 43 $ (22) $ 110 Finance leases — 233 394 Note (1) Amount for 2021 represents a non-cash reduction due to a lease that was amended during the fiscal year resulting in derecognition of the operating lease asset and obligation upon remeasurement. TVA has certain finance leases under PPAs under which the present value of the minimum lease payments exceeds the fair value of the related lease asset at the date of measurement. This resulted in an interest rate that was higher than TVA's incremental borrowing rate. The weighted average remaining lease term in years and the weighted average discount rate for TVA's operating and financing leases were as follows: Weighted Averages At September 30 2022 2021 Weighted average remaining lease terms Operating leases 3 years 5 years Finance leases 11 years 12 years Weighted average discount rate (1) Operating leases 1.5% 1.5% Finance leases 17.8% 17.7% Note (1) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. If the rate used by the lessor is not readily determinable, TVA uses its incremental borrowing rate as permitted by accounting guidance. The incremental borrowing rate is influenced by TVA's credit rating and lease term and as such may differ for individual leases, embedded leases, or portfolios of leased assets. The following table presents maturities of lease liabilities and a reconciliation of the undiscounted cash flows to lease liabilities at September 30, 2022 : Future Minimum Lease Payments Minimum payments due at September 30, 2022 (in millions) Operating leases 2023 $ 61 2024 43 2025 35 2026 10 2027 2 Thereafter 5 Minimum annual payments 156 Less: present value discount (4) Operating present value of net minimum lease payments $ 152 Finance leases 2023 $ 112 2024 107 2025 106 2026 105 2027 104 Thereafter 552 Minimum annual payments 1,086 Less: amount representing interest (399) Finance present value of net minimum lease payments $ 687 TVA has entered into five PPAs with renewable resource providers for solar generation and rights to charge and discharge battery energy storage systems. The systems are considered a lease component in these agreements. These PPAs have terms of 20 years, and are expected to commence between April 2023 and December 2024. Payments made over the term of these PPAs are expected to total approximately $414 million. During the fourth quarter of 2022, TVA entered into an office lease with a term of approximately 11 years and an expected commencement date of April 2023. Payments made over the term of this lease are expected to total approximately $15 million. |
Deferred Costs, Capitalized, Pr
Deferred Costs, Capitalized, Prepaid, and Other Assets - Text Block | 12 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | 5. Other Current Assets Other current assets consisted of the following: Other Current Assets At September 30 (in millions) 2022 2021 Commodity contract derivative assets $ 172 $ 210 Other 85 77 Other current assets $ 257 $ 287 Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA also reinstated the Financial Hedging Program ("FHP") (formerly the Financial Trading Program, which was suspended in 2014) in December 2021, and hedging activity began under the program in the second quarter of 2022. Commodity contract derivative assets classified as current include deliveries or settlements that will occur within 12 months or less. See Note 15 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies [Policy Text Block] | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
General | General The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt. TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates. Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people. TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development. TVA performs these management duties in cooperation with other federal and state agencies that have jurisdiction and authority over certain aspects of the river system. In addition, the TVA Board of Directors ("TVA Board") has established two councils — the Regional Resource Stewardship Council and the Regional Energy Resource Council — to advise TVA on its stewardship activities in the Tennessee Valley and its energy resource activities. The power program has historically been separate and distinct from the stewardship programs. It is required to be self-supporting from power revenues and proceeds from power financings, such as proceeds from the issuance of bonds, notes, or other evidences of indebtedness (collectively, "Bonds"). Although TVA does not currently receive Congressional appropriations, it is required to make annual payments to the United States Department of the Treasury ("U.S. Treasury") as a return on the government's appropriation investment in TVA's power facilities (the "Power Program Appropriation Investment"). In the 1998 Energy and Water Development Appropriations Act, Congress directed TVA to fund essential stewardship activities related to its management of the Tennessee River system and nonpower or stewardship properties with power revenues in the event that there were insufficient appropriations or other available funds to pay for such activities in any fiscal year. Congress has not provided any appropriations to TVA to fund such activities since 1999. Consequently, during 2000, TVA began paying for essential stewardship activities primarily with power revenues, with the remainder funded with user fees and other forms of revenues derived in connection with those activities. The activities related to stewardship properties do not meet the criteria of an operating segment under accounting principles generally accepted in the United States of America ("GAAP"). Accordingly, these assets and properties are included as part of the power program, TVA's only operating segment. Power rates are established by the TVA Board as authorized by the Tennessee Valley Authority Act of 1933, as amended, 16 U.S.C. §§ 831-831ee ("TVA Act"). The TVA Act requires TVA to charge rates for power that will produce gross revenues sufficient to provide funds for operation, maintenance, and administration of its power system; payments to states and counties in lieu of taxes ("tax equivalents"); debt service on outstanding indebtedness; payments to the U.S. Treasury in repayment of and as a return on the Power Program Appropriation Investment; and such additional margin as the TVA Board may consider desirable for investment in power system assets, retirement of outstanding Bonds in advance of maturity, additional reduction of the Power Program Appropriation Investment, and other purposes connected with TVA's power business. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment with the 2014 payment; therefore, this repayment obligation is no longer a component of rate setting. In setting TVA's rates, the TVA Board is charged by the TVA Act to have due regard for the primary objectives of the TVA Act, including the objective that power shall be sold at rates as low as are feasible. Rates set by the TVA Board are not subject to review or approval by any state or other federal regulatory body. |
Fiscal Year | Fiscal Year TVA's fiscal year ends September 30. Years (2022, 2021, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years. |
Cost-Based Regulation | Cost-Based Regulation Since the TVA Board is authorized by the TVA Act to set rates for power sold to its customers, TVA is self-regulated. Additionally, TVA's regulated rates are designed to recover its costs. Based on current projections, TVA believes that rates, set at levels that will recover TVA's costs, can be charged and collected. As a result of these factors, TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. TVA assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, potential legislation, and changes in technology. Based on these assessments, TVA believes the existing regulatory assets are probable of recovery. This determination reflects the current regulatory and political environment and is subject to change in the future. If future recovery of regulatory assets ceases to be probable, or TVA is no longer considered to be a regulated entity, then costs would be required to be written off. All regulatory asset write offs would be required to be recognized in earnings in the period in which future recovery ceases to be probable. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 11 — Variable Interest Entities |
Use of Estimates | Use of Estimates The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements. Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period. Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results. Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows. |
Reclassification, Comparability Adjustment | |
Cash and Cash Equivalents and Restricted Cash and Investments | Cash, Cash Equivalents, and Restricted Cash Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations. See Note 21 — Commitments and Contingencies — Legal Proceedings — Environmental Agreements . The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows: Cash, Cash Equivalents, and Restricted Cash At September 30 (in millions) 2022 2021 Cash and cash equivalents $ 500 $ 499 Restricted cash and cash equivalents included in Other long-term assets 20 19 Total cash, cash equivalents, and restricted cash $ 520 $ 518 |
Allowance for Uncollectible Accounts | Allowance for Uncollectible Accounts TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period. To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses. To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio. |
Revenues | Revenues TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month. Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements. Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net. |
Inventories | Inventories Certain Fuel, Materials, and Supplies . Materials and supplies inventories are valued using an average unit cost method. A new average cost is computed after each inventory purchase transaction, and inventory issuances are priced at the latest moving weighted average unit cost. Coal, fuel oil, and natural gas inventories are valued using an average cost method. A new weighted average cost is computed monthly, and monthly issues are priced accordingly. Renewable Energy Certificates. TVA accounts for Renewable Energy Certificates ("RECs") using the specific identification cost method. RECs that are acquired through power purchases are recorded as inventory and charged to purchased power expense when the RECs are subsequently used or sold. TVA assigns a value to the RECs at the inception of the power purchase arrangement using a relative standalone selling price approach. RECs created through TVA-owned asset generation are recorded at zero cost. Emission Allowances . TVA accounts for emission allowances using the specific identification cost method. Allowances that are acquired through third party purchases are recorded as inventory at cost and charged to operating expense based on tons emitted during the respective compliance periods. Allowance for Inventory Obsolescence . TVA reviews materials and supplies inventories by category and usage on a periodic basis. Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data. TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence. |
Property, Plant, and Equipment, and Depreciation | Property, Plant, and Equipment, and Depreciation Property, Plant, and Equipment. Additions to plant are recorded at cost, which includes direct and indirect costs. The cost of current repairs and minor replacements is charged to operating expense. Nuclear fuel, which is included in Property, plant, and equipment, is valued using the average cost method for raw materials and the specific identification method for nuclear fuel in a reactor. Amortization of nuclear fuel in a reactor is calculated on a units-of-production basis and is included in fuel expense. When property, plant, and equipment is retired, accumulated depreciation is charged for the original cost of the assets. Gains or losses are only recognized upon the sale of land or an entire operating unit. TVA capitalizes certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in Property, plant, and equipment on the Consolidated Balance Sheets and are generally amortized over seven years. Depreciation. TVA accounts for depreciation of its properties using the composite depreciation convention of accounting. Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years. During the first quarter of 2022, TVA implemented a new depreciation study related to its completed plant. The new study included a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. Implementation of the study resulted in an estimated increase to depreciation and amortization expense of approximately $345 million during 2022. This estimate represents the effect of using the new depreciation rates on the property, plant, and equipment balances at September 30, 2021, and does not include any potential impact from additions to or retirements of net completed plant, that occurred since September 30, 2021. Depreciation expense for the years ended September 30, 2022, 2021, and 2020 was $1.8 billion, $1.4 billion, and $1.6 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 2.98 percent for 2022, 2.28 percent for 2021, and 2.74 percent for 2020. Average depreciation rates by asset class are as follows: Property, Plant, and Equipment Depreciation Rates At September 30 2022 2021 2020 Asset Class Nuclear 2.72 2.38 2.38 Coal-fired (1) 4.27 1.95 3.62 Hydroelectric 1.85 1.60 1.60 Gas and oil-fired 3.38 2.98 3.04 Transmission 1.51 1.34 1.34 Other 3.64 7.12 7.26 Note (1) The rates include the acceleration of depreciation related to retiring certain coal-fired units and potentially retiring the remainder of the coal-fired fleet by 2035. See Note 7 — Plant Closures . Reacquired Rights . Property, plant, and equipment includes intangible reacquired rights, net of amortization, of $178 million and $184 million as of September 30, 2022 and 2021, respectively, related to the purchase of residual interests from lease/leaseback agreements of certain combustion turbine units ("CTs"). Reacquired rights are amortized over the estimated useful lives of the underlying CTs which range from 33 to 35 years. Amortization expense was $6 million for 2022 and $8 million for the years 2021 and 2020, and accumulated amortization at September 30, 2022 and 2021 totaled $42 million and $36 million, respectively. At September 30, 2022, the estimated aggregate amortization expense (in millions) for each of the next five years and thereafter is shown below: 2023 2024 2025 2026 2027 Thereafter Reacquired Rights $ 6 $ 6 $ 6 $ 6 $ 6 $ 148 Impairment of Assets. TVA evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. For long-lived assets, TVA bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, regulatory approval and ability to set rates at levels that allow for recoverability of the assets, and other external market conditions or factors that may be present. If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, TVA determines whether an impairment has occurred based on an estimate of undiscounted cash flows attributable to the asset as compared with the carrying value of the asset. If an impairment has occurred, the amount of the impairment recognized is measured as the excess of the asset's carrying value over its fair value. Additionally, TVA regularly evaluates construction projects. If the project is canceled or deemed to have no future economic benefit, the project is written off as an asset impairment or, upon TVA Board approval, reclassified as a regulatory asset and amortized over the Board-approved period. See Note 7 — Plant Closures |
Lessee, Leases | Leases TVA recognizes a lease asset and lease liability for leases with terms of greater than 12 months. Lease assets represent TVA's right to use an underlying asset for the lease term, and lease liabilities represent TVA's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. TVA has certain lease agreements that include variable lease payments that are based on energy production levels. These variable lease payments are not included in the measurement of the lease assets or lease liabilities but are recognized in the period in which the expenses are incurred. While not specifically structured as leases, certain power purchase agreements ("PPAs") are deemed to contain a lease of the underlying generating units when the terms convey the right to control the use of the assets. Amounts recorded for these leases are generally based on the amount of the scheduled capacity payments due over the remaining terms of the PPAs, the terms of which vary. The total lease obligations included in Accounts payable and accrued liabilities and Other long-term liabilities and Finance lease liabilities related to these agreements were $425 million and $133 million for finance and operating leases, respectively, at September 30, 2022. The total lease obligations included in Accounts payable and accrued liabilities and Other long-term liabilities and Finance lease liabilities related to these agreements were $464 million and $143 million for finance and operating leases, respectively, at September 30, 2021. TVA has agreements with lease and non-lease components and has elected to account for the components separately. Consideration is allocated to lease and non-lease components generally based on relative standalone selling prices. TVA has lease agreements which include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in TVA's lease measurements. Leases with an initial term of 12 months or less, which do not include an option to extend the initial term of the lease to greater than 12 months that TVA is reasonably certain to exercise, are not recorded on the Consolidated Balance Sheets at September 30, 2022. Operating leases are recognized on a straight-line basis over the term of the lease agreement. Rent expense associated with short-term leases and variable leases is recorded in Operating and maintenance expense, Fuel expense, or Purchased power expense on the Consolidated Statements of Operations. Expenses associated with finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the related lease asset on the Consolidated Statements of Operations. |
Decommissioning Costs | Decommissioning Costs TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets. These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration. Revisions to the forecasted costs of decommissioning activities are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially. Studies are updated for both nuclear and non-nuclear decommissioning costs at least every five years. Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset. See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — |
Down-blend Offering for Tritium | Down-blend Offering for Tritium TVA, the U.S. Department of Energy ("DOE"), and certain nuclear fuel contractors have entered into agreements, referred to as the Down-blend Offering for Tritium ("DBOT"), that provide for the production, processing, and storage of low-enriched uranium that is to be made using surplus DOE highly enriched uranium and other uranium. Low-enriched uranium can be fabricated into fuel for use in a nuclear power plant. Production of the low-enriched uranium began in 2019 and is contracted to continue through September 2025. Contract activity will consist of storage and flag management. Flag management ensures that the uranium is of U.S. origin, free from foreign obligations, and unencumbered by policy restrictions, so that it can be used in connection with the production of tritium. Under the terms of the interagency agreement between the DOE and TVA, the DOE will reimburse TVA for a portion of the costs of converting the highly enriched uranium to low-enriched uranium. Since 2019, TVA has received $188 million in reimbursements from the DOE. At September 30, 2022, TVA recorded $9 million in Accounts receivable, net related to this agreement. |
Investment Funds | Investment Funds Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 21 — Commitments and Contingencies — Decommissioning Costs ), the Supplemental Executive Retirement Plan ("SERP") (see Note 20 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan ), and the Deferred Compensation Plan ("DCP"). The Nuclear Decommissioning Trust ("NDT") holds funds primarily for the ultimate decommissioning of TVA's nuclear power plants. The Asset Retirement Trust ("ART") holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance. The NDT, ART, SERP, and DCP funds are all classified as trading. |
Insurance | Insurance Although TVA uses private companies to administer its healthcare plans for eligible active and retired employees not covered by Medicare, TVA does not purchase health insurance. Third-party actuarial specialists assist TVA in determining certain liabilities for self-insured claims. TVA recovers the costs of claims through power rates and through adjustments to the participants' contributions to their benefit plans. These liabilities are included in Other long-term liabilities on the Consolidated Balance Sheets. The Federal Employees' Compensation Act ("FECA") governs liability to employees for service-connected injuries. TVA purchases excess workers' compensation insurance above a self-insured retention. In addition to excess workers' compensation insurance, TVA purchases property and liability insurance for nuclear assets and operations. See Note 21 — Commitments and Contingencies — Nuclear Insurance . TVA also purchases liability insurance and property insurance for certain conventional (non-nuclear) assets, and other insurance policies when commercially feasible. |
Research and Development Costs | Research and Development Costs Research and development costs are expensed when incurred. TVA's research programs include those related to power delivery technologies, emerging technologies (clean energy, renewables, distributed resources, and energy efficiency), technologies related to generation (fossil fuel, nuclear, and hydroelectric), and environmental technologies. |
Tax Equivalents | Tax Equivalents TVA is not subject to federal income taxation. In addition, neither TVA nor its property, franchises, or income is subject to taxation by states or their subdivisions. The TVA Act requires TVA to make payments to states and counties in which TVA conducts its power operations and in which TVA has acquired power properties previously subject to state and local taxation. The total amount of these payments is five percent of gross revenues from sales of power during the preceding year, excluding sales or deliveries to other federal agencies and off-system sales with other utilities, with a provision for minimum payments under certain circumstances. TVA calculates tax equivalent expense by subtracting the prior year fuel cost-related tax equivalent regulatory asset or liability from the payments made to the states and counties during the current year and adding back the current year fuel cost-related tax equivalent regulatory asset or liability. Fuel cost-related tax equivalent expense is recognized in the same accounting period in which the fuel cost-related revenue is recognized. |
Maintenance Costs | Maintenance CostsTVA records maintenance costs and repairs related to its property, plant, and equipment on the Consolidated Statements of Operations as they are incurred except for the recording of certain regulatory assets for retirement and removal costs. |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Impact of VIEs on Consolidated Balance Sheets | The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, and SCCG as of September 30, 2022 and 2021, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets At September 30 (in millions) 2022 2021 Current liabilities Accrued interest $ 10 $ 10 Accounts payable and accrued liabilities 2 3 Current maturities of long-term debt of variable interest entities 39 43 Total current liabilities 51 56 Other liabilities Other long-term liabilities 18 20 Long-term debt, net Long-term debt of variable interest entities, net 968 1,006 Total liabilities $ 1,037 $ 1,082 |
Consolidation, Variable Interest Entity, Policy | A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis. |
Asset Retirement Obligations As
Asset Retirement Obligations Asset Retirement Obligations (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations, Policy | Decommissioning Costs TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets. These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration. Revisions to the forecasted costs of decommissioning activities are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially. Studies are updated for both nuclear and non-nuclear decommissioning costs at least every five years. Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset. See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — |
Benefit Plans Benefit Plans (Po
Benefit Plans Benefit Plans (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Accounting Mechanisms Regulatory Accounting. TVA has classified all amounts related to unrecognized prior service costs/(credits), net actuarial gains or losses, and the funded status as regulatory assets or liabilities as such amounts are probable of collection in future rates. Additionally, TVA recognizes pension costs as regulatory assets or regulatory liabilities to the extent that the amount calculated under U.S. GAAP as pension expense differs from the amount TVA contributes to the pension plan as pension plan contributions. As a result of plan design changes, future contributions are expected to exceed the expense calculated under U.S. GAAP. Accordingly, TVA will discontinue this regulatory accounting practice once all such deferred costs have been recovered, at which time it will recognize pension costs in accordance with U.S. GAAP. Cost Method. TVA uses the projected unit credit cost method to determine the service cost and the projected benefit obligation for retirement, termination, and ancillary benefits. Under this method, a "projected accrued benefit" is calculated at the beginning of the year and at the end of the year for each benefit that may be payable in the future. The "projected accrued benefit" is based on the plan's accrual formula and upon service at the beginning or end of the year, but it uses final average compensation, social security benefits, and other relevant factors projected to the age at which the employee is assumed to leave active service. The projected benefit obligation is the actuarial present value of the "projected accrued benefits" at the beginning of the year for employed participants and is the actuarial present value of all benefits for other participants. The service cost is the actuarial present value of the difference between the "projected accrued benefits" at the beginning and end of the year. Amortization of Net Gain or Loss. TVA utilizes the corridor approach for gain/loss amortization. Differences between actuarial assumptions and actual plan results are deferred and amortized into periodic cost only when the accumulated differences exceed 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets. If necessary, the excess is amortized over the average future expected working lifetime of participants expected to receive benefits, which is approximately 11 years for the pension plan. Amortization of Prior Service Cost/(Credit). Amortization of net prior service cost/(credit) resulting from a plan change is included as a component of period expense in the year first recognized and every year thereafter until it is fully amortized. The increase or decrease in the benefit obligation due to the plan change is amortized over the average remaining service period of participating employees expected to receive benefits under the plan. The pension and post-retirement plans currently have prior service costs/(credits) from plan changes made in 2016, 2018, 2019, 2020, and 2021 with remaining amortization periods ranging from one to seven years. However, when a plan change reduces the benefit obligation, existing positive prior service costs are reduced or eliminated starting with the earliest established before a new prior service credit base is established. Asset Method . TVA's asset method calculates a market-related value of assets ("MRVA") that recognizes realized and unrealized investment gains and losses over a three-year smoothing period to decrease the volatility of annual net periodic pension benefit costs. The MRVA is used to determine the expected return on plan assets, a component of net periodic pension benefit cost. The difference in the expected return on the MRVA and the actual return on the fair value on plan assets is recognized as an actuarial (gain)/loss in the pension benefit obligation at September 30. However, the MRVA has no impact on the fair value of plan assets measured at September 30. |
Revenue (Policies)
Revenue (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month. Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements. Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net. |
Plant Closures (Policies)
Plant Closures (Policies) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Plant Retirement and Abandonment, Policy [Policy Text Block] | Financial Impact TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. As a result of TVA's decision to accelerate the retirement of Bull Run, TVA has recognized a cumulative $482 million of accelerated depreciation since the second quarter of 2019. Of this amount, $140 million, $136 million, and $125 million were recognized for the years ended September 30, 2022, 2021, and 2020, respectively. In addition, service lives for Cumberland Fossil Plant ("Cumberland"), Gallatin Fossil Plant ("Gallatin"), Kingston Fossil Plant ("Kingston"), and Shawnee Fossil Plant ("Shawnee") were shortened in a new depreciation study implemented during the first quarter of 2022 to reflect current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result, TVA recognized an estimated $339 million of additional depreciation related to these four coal-fired plants during the year ended September 30, 2022. This estimate represents the effect of using the new depreciation rates on the property, plant, and equipment balances at September 30, 2021, and does not include any potential impact from additions to or retirements of net completed plant, that occurred since September 30, 2021. For the years ended September 30, 2022, 2021, and 2020, respectively, TVA also recognized $22 million, $4 million, and $13 million in Operating and maintenance expense related to additional inventory reserves and project write-offs for the coal-fired fleet, including Bull Run. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies [Table Text Block] | 12 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Property, Plant, and Equipment Depreciation Rates | Average depreciation rates by asset class are as follows: Property, Plant, and Equipment Depreciation Rates At September 30 2022 2021 2020 Asset Class Nuclear 2.72 2.38 2.38 Coal-fired (1) 4.27 1.95 3.62 Hydroelectric 1.85 1.60 1.60 Gas and oil-fired 3.38 2.98 3.04 Transmission 1.51 1.34 1.34 Other 3.64 7.12 7.26 |
Accounts Receivable, Net Accoun
Accounts Receivable, Net Accounts Receivable, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | Accounts receivable primarily consist of amounts due from customers for power sales. The table below summarizes the types and amounts of TVA's accounts receivable: Accounts Receivable, Net At September 30 (in millions) 2022 2021 Power receivables $ 1,899 $ 1,480 Other receivables 108 86 Accounts receivable, net (1) $ 2,007 $ 1,566 |
Inventories, Net Inventories, N
Inventories, Net Inventories, Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Inventory, Net [Abstract] | |
Inventories, Net | The table below summarizes the types and amounts of TVA's inventories: Inventories, Net At September 30 (in millions) 2022 2021 Materials and supplies inventory $ 808 $ 775 Fuel inventory 303 198 Renewable energy certificates/emissions allowance inventory, net 18 12 Allowance for inventory obsolescence (57) (35) Inventories, net $ 1,072 $ 950 Fuel inventory increased $105 million at September 30, 2022, as compared to September 30, 2021, primarily due to an increase in coal inventory of $58 million and an increase in natural gas inventory of $32 million. Coal inventory increased primarily due to higher costs of fuel, including transportation costs, as a result of continued supply constraints driven by both domestic and export demand, limited production capacity, and market volatility. Coal inventory also increased over the prior year due to coal conservation efforts and an increase in inventory levels as TVA prepares for winter inventory needs. Natural gas inventory increased primarily due to higher gas prices, as well as an increase in the amount of stored gas to mitigate fuel price volatility. |
Net Completed Plant Net Complet
Net Completed Plant Net Completed Plant (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Net Completed Plant | Net completed plant consisted of the following: Net Completed Plant At September 30 (in millions) 2022 2021 Cost Accumulated Depreciation Cost Accumulated Depreciation Net Coal-fired (1) $ 18,145 $ 13,649 $ 4,496 $ 19,319 $ 14,357 $ 4,962 Gas and oil-fired 6,112 1,957 4,155 6,076 1,824 4,252 Nuclear 26,629 12,928 13,701 26,024 12,632 13,392 Transmission 8,919 3,301 5,618 8,597 3,215 5,382 Hydroelectric 3,987 1,192 2,795 3,525 1,135 2,390 Other electrical plant 1,724 807 917 1,943 1,103 840 Multipurpose dams 900 396 504 900 388 512 Other stewardship 26 9 17 27 9 18 Total $ 66,442 $ 34,239 $ 32,203 $ 66,411 $ 34,663 $ 31,748 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | The table below summarizes the types and amounts of TVA's other long-term assets: Other Long-Term Assets At September 30 (in millions) 2022 2021 Loans and other long-term receivables, net $ 99 $ 96 EnergyRight ® receivables, net 49 57 Prepaid long-term service agreements 74 44 Commodity contract derivative assets 102 40 Other 70 83 Total other long-term assets $ 394 $ 320 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | Components of regulatory assets and regulatory liabilities are summarized in the table below. Regulatory Assets and Liabilities At September 30 (in millions) 2022 2021 Current regulatory assets Unrealized losses on interest rate derivatives $ 47 $ 114 Unrealized losses on commodity derivatives 14 3 Fuel cost adjustment receivable 77 79 Total current regulatory assets 138 196 Non-current regulatory assets Retirement benefit plans deferred costs 1,839 3,668 Non-nuclear decommissioning costs 2,856 2,653 Unrealized losses on interest rate derivatives 479 1,122 Nuclear decommissioning costs 821 363 Unrealized losses on commodity derivatives 1 — Other non-current regulatory assets 138 150 Total non-current regulatory assets 6,134 7,956 Total regulatory assets $ 6,272 $ 8,152 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 218 $ 130 Unrealized gains on commodity derivatives 173 210 Total current regulatory liabilities 391 340 Non-current regulatory liabilities Retirement benefit plans deferred credits 70 — Unrealized gains on commodity derivatives 102 40 Total non-current regulatory liabilities 172 40 Total regulatory liabilities $ 563 $ 380 |
Asset Retirement Obligations _2
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Activity | Asset Retirement Obligation Activity (in millions) Nuclear Non-Nuclear Total Balance at September 30, 2020 $ 3,278 $ 3,507 $ 6,785 Settlements (11) (231) (242) Revisions in estimate 12 191 203 Additional obligations — 43 43 Accretion (recorded as regulatory asset) 149 64 213 Balance at September 30, 2021 3,428 3,574 7,002 (1) Settlements (2) (309) (311) (2) Revisions in estimate 61 186 247 Accretion (recorded as regulatory asset) 156 68 224 Balance at September 30, 2022 $ 3,643 $ 3,519 $ 7,162 (1) Note (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Other Long-Term Liabilities Oth
Other Long-Term Liabilities Other Long-Term Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities At September 30 (in millions) 2022 2021 (1) Interest rate swap liabilities $ 851 $ 1,524 Operating lease liabilities 93 122 Currency swap liabilities 228 76 EnergyRight® financing obligation 58 66 Long-term deferred compensation 39 42 Advances for construction 53 24 Long-term deferred revenue 39 37 Accrued long-term service agreements — 29 Other 124 121 Total other long-term liabilities $ 1,485 $ 2,041 Note (1) At September 30, 2021, $5 million and $19 million previously classified as Long-term deferred revenue (a component of Other long-term liabilities) and Other (a component of Other long-term liabilities), respectively, were reclassified to Advances for construction (a component of Other long-term liabilities) to conform |
Debt and Other Obligations Debt
Debt and Other Obligations Debt and Other Obligations (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Debt and Other Obligations [Abstract] | |
Schedule of short-term borrowings | The following table provides information regarding TVA's short-term borrowings: Short-term Borrowings At September 30 2022 2021 Gross amount outstanding - discount notes (in millions) $ 1,173 $ 780 Weighted average interest rate - discount notes 2.93 % 0.03 % |
Debt Securities Activity | The table below summarizes the long-term debt securities activity for the years ended September 30, 2022 and 2021. Debt Securities Activity For the years ended September 30 (in millions) 2022 2021 Issues 2021 Series A (1) $ — $ 500 2022 Series A (2) 500 — Discount on debt issues (16) — Total $ 484 $ 500 Redemptions/Maturities (3) 2009 Series B $ 28 $ 29 2011 Series A — 1,500 1998 Series H — 331 2012 Series A 1,000 — Total redemptions/maturities of power bonds 1,028 1,860 Debt of variable interest entities 43 41 Total redemptions/maturities of debt $ 1,071 $ 1,901 Notes (1) The 2021 Series A Bonds were issued at 99.982 percent of par. (2) The 2022 Series A Bonds were issued at 96.786 percent of par. (3) All redemptions were at 100 percent of par. |
Debt Outstanding | Total debt outstanding at September 30, 2022 and 2021, consisted of the following: Short-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity 2022 2021 Short-term debt, net of discounts $ 1,172 $ 780 Current maturities of long-term debt of VIEs issued at par 39 43 Current maturities of power bonds issued at par 880591EN8 8/15/2022 1.875% — 1,000 880591EF5 12/15/2022 3.770% 1 1 880591EF5 6/15/2023 3.770% 28 27 Total current maturities of power bonds issued at par 29 1,028 Total current debt outstanding, net $ 1,240 $ 1,851 Long-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity Coupon 2022 Par 2021 Par Stock Exchange Listings 880591ER9 9/15/2024 2.875% $ 1,000 $ 1,000 New York 880591EW8 5/15/2025 0.750% 1,000 1,000 New York 880591CJ9 11/1/2025 6.750% 1,350 1,350 New York, Hong Kong, Luxembourg, Singapore 880591EU2 2/1/2027 2.875% 1,000 1,000 New York 880591300 (3) 6/1/2028 2.134% 256 256 New York 880591409 (3) 5/1/2029 2.216% 208 208 New York 880591DM1 5/1/2030 7.125% 1,000 1,000 New York, Luxembourg 880591EX6 9/15/2031 1.500% 500 500 New York 880591DP4 6/7/2032 6.587% (2) 279 (1) 337 (1) New York, Luxembourg 880591DV1 7/15/2033 4.700% 472 472 New York, Luxembourg 880591EF5 6/15/2034 3.770% 160 190 None 880591DX7 6/15/2035 4.650% 436 436 New York 880591CK6 4/1/2036 5.980% 121 121 New York 880591CS9 4/1/2036 5.880% 1,500 1,500 New York 880591CP5 1/15/2038 6.150% 1,000 1,000 New York 880591ED0 6/15/2038 5.500% 500 500 New York 880591EH1 9/15/2039 5.250% 2,000 2,000 New York 880591EP3 12/15/2042 3.500% 1,000 1,000 New York 880591DU3 6/7/2043 4.962% (2) 168 (1) 202 (1) New York, Luxembourg 880591EB4 1/15/2048 4.875% 500 500 New York, Luxembourg 880591DZ2 4/1/2056 5.375% 1,000 1,000 New York 880591EJ7 9/15/2060 4.625% 1,000 1,000 New York 880591ES7 9/15/2065 4.250% 1,000 1,000 New York 880591EY4 9/15/2052 4.250% 500 — New York Subtotal 17,950 17,572 Unamortized discounts, premiums, issue costs, and other (124) (115) Total long-term outstanding power bonds, net 17,826 17,457 Long-term debt of VIEs, net 968 1,006 Total long-term debt, net $ 18,794 $ 18,463 Notes (1) Includes net exchange gain from currency transactions of $150 million and $58 million at September 30, 2022 and 2021, respectively. (2) The coupon rate represents TVA's effective interest rate. (3) TVA PARRS, CUSIP numbers 880591300 and 880591409, may be redeemed under certain conditions. See Put Options above. |
Maturities Due in the Year Ending September 30 | Maturities Due in the Year Ending September 30 (in millions) 2023 2024 2025 2026 2027 Thereafter Total Long-term power bonds including current maturities (1) $ 29 $ 1,022 $ 1,022 $ 1,370 $ 1,020 $ 13,666 $ 18,129 Short-term debt (2) 1,173 — — — — — 1,173 Notes (1) Long-term power bonds does not include non-cash items of foreign currency exchange gain of $150 million, unamortized debt issue costs of $42 million, and net discount on sale of Bonds of $82 million. (2) Short-term debt does not include the non-cash item of discount on issuance of discount notes of $1 million. |
Summary of Long-Term Credit Facilities | The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities: Summary of Long-Term Credit Facilities At September 30, 2022 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2024 $ 150 $ 38 $ — $ 112 February 2025 500 500 — — September 2026 1,000 99 — 901 March 2027 1,000 67 — 933 Total $ 2,650 $ 704 $ — $ 1,946 |
Risk Management Activities an_2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive: Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) For the years ended September 30 Derivatives in Cash Flow Hedging Relationship Objective of Hedge Transaction Accounting for Derivative 2022 2021 Currency swaps To protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk) Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction $ (157) $ 126 Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2) (1) Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense For the years ended September 30 Derivatives in Cash Flow Hedging Relationship 2022 2021 Currency swaps $ (93) $ 97 Note (1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $29 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt. |
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment | Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment Amount of Gain (Loss) Recognized in Income on Derivatives (1) For the years ended September 30 Derivative Type Objective of Derivative Accounting for Derivative Instrument 2022 2021 Interest rate swaps To fix short-term debt variable rate to a fixed rate (interest rate risk) Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow $ (103) $ (115) Commodity derivatives To protect against fluctuations in market prices of purchased commodities (price risk) Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity (2) 47 — Notes (1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory liabilities and assets. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the years ended September 30, 2022 and 2021. (2) Of the amount recognized in 2022, $38 million and $9 million were reported in Fuel expense and Purchased power expense, respectively. |
Fair Values of TVA Derivatives | Fair Values of TVA Derivatives At September 30 2022 2021 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (130) Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123) $ (36) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(32) £150 million Sterling (110) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105) (47) Accounts payable and accrued liabilities $(3); Other long-term liabilities $(44) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (672) Accounts payable and accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630) $ (1,182) Accounts payable and accrued liabilities $(44); Accrued interest $(37); Other long-term liabilities $(1,101) $476 million notional (233) Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(221) (455) Accounts payable and accrued liabilities $(22); Accrued interest $(10); Other long-term liabilities $(423) $42 million notional (1) — N/A (2) Accounts payable and accrued liabilities $(1); Accrued interest $(1) Commodity contract derivatives 145 Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1) 247 Other current assets $210; Other long-term assets $40; Accounts payable and accrued liabilities $(3) Commodity derivatives under the FHP 115 Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8) — N/A |
Currency Swaps Outstanding | TVA had the following currency swaps outstanding at September 30, 2022: Currency Swaps Outstanding Effective Date of Currency Swap Contract Associated TVA Bond Issues Currency Exposure Expiration Date of Swap Overall Effective 2001 £250 million 2032 6.59% 2003 £150 million 2043 4.96% |
Commodity Contract Derivatives | Commodity Contract Derivatives At September 30 2022 2021 Number of Contracts Notional Amount Fair Value (MtM) Number of Contracts Notional Amount Fair Value ( MtM ) (in millions) Natural gas contract derivatives 44 296 million mmBtu $ 145 40 263 million mmBtu $ 247 |
Offsetting Assets and Liabilities | The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below: Derivative Assets and Liabilities (1) At September 30 (in millions) 2022 2021 Assets Commodity contract derivatives $ 152 $ 250 Commodity derivatives under the FHP (2) 123 — Total derivatives subject to master netting or similar arrangement $ 275 $ 250 Liabilities Currency swaps $ 240 $ 83 Interest rate swaps (3) 905 1,639 Commodity contract derivatives 7 3 Commodity derivatives under the FHP (2) 8 — Total derivatives subject to master netting or similar arrangement $ 1,160 $ 1,725 Notes (1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2022 or 2021. (2) At September 30, 2022, the gross derivative asset and gross derivative liability was $168 million and $53 million, respectively, with offsetting amounts for each totaling $45 million. TVA received $68 million of collateral from counterparties as of September 30, 2022, which is recorded separately from the fair values of the derivative assets and liabilities and reported in Accounts payable and accrued liabilities. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | ||
Valuation Techniques | The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows: Level 1 — Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing. Level 2 — Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means. Level 3 — Pricing inputs that are unobservable, or less observable, from objective sources. Unobservable inputs are only to be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available. | |
Unrealized Investment Gains (Losses) | TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows: Unrealized Investment Gains (Losses) For the years ended September 30 (in millions) Fund Financial Statement Presentation 2022 2021 NDT Regulatory assets $ (396) $ 279 ART Regulatory assets (190) 145 SERP Other income, net (19) 7 DCP Other income, net (5) 1 | |
Fair Value Measurements | Fair Value Measurements At September 30, 2022 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 534 $ — $ — $ 534 Government debt securities (1) 358 36 — 394 Corporate debt securities (2) — 283 — 283 Mortgage and asset-backed securities — 52 — 52 Institutional mutual funds 242 — — 242 Forward debt securities contracts — 4 — 4 Private equity funds measured at net asset value (3) — — — 487 Private real asset funds measured at net asset value (3) — — — 369 Private credit measured at net asset value (3) — — — 103 Commingled funds measured at net asset value (3) — — — 1,203 Total investments 1,134 375 — 3,671 Commodity contract derivatives — 152 — 152 Commodity derivatives under the FHP — 123 — 123 Total $ 1,134 $ 650 $ — $ 3,946 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 240 $ — $ 240 Interest rate swaps — 905 — 905 Commodity contract derivatives — 7 — 7 Commodity derivatives under the FHP — 8 — 8 Total $ — $ 1,160 $ — $ 1,160 Notes (1) Includes government-sponsored entities, including $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Fair Value Measurements At September 30, 2021 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 634 $ — $ — $ 634 Government debt securities (1) 573 24 — 597 Corporate debt securities (2) — 411 — 411 Mortgage and asset-backed securities — 63 — 63 Institutional mutual funds 225 — — 225 Forward debt securities contracts — 2 — 2 Private equity funds measured at net asset value (3) — — — 357 Private real asset funds measured at net asset value (3) — — — 272 Private credit measured at net asset value (3) — — — 71 Commingled funds measured at net asset value (3) — — — 1,421 Total investments 1,432 500 — 4,053 Commodity contract derivatives — 250 — 250 Total $ 1,432 $ 750 $ — $ 4,303 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 83 $ — $ 83 Interest rate swaps — 1,639 — 1,639 Commodity contract derivatives — 3 — 3 Total $ — $ 1,725 $ — $ 1,725 Notes (1) Includes government-sponsored entities, including $573 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . | |
Estimated Values of Financial Instruments Not Recorded at Fair Value | The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2022 and 2021, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At September 30, 2022 At September 30, 2021 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 62 $ 62 $ 72 $ 71 Loans and other long-term receivables, net (including current portion) Level 2 105 96 99 94 EnergyRight ® financing obligations (including current portion) Level 2 72 81 82 92 Unfunded loan commitments Level 2 — — — 3 Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 20 22 23 30 Long-term outstanding power bonds, net (including current maturities) Level 2 17,856 18,070 18,485 24,309 Long-term debt of VIEs, net (including current maturities) Level 2 1,007 989 1,049 1,307 |
Other Income (Expense), Net Oth
Other Income (Expense), Net Other Income (Expense), Net (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Income and expenses not related to TVA's operating activities are summarized in the following table: Other Income, Net For the years ended September 30 (in millions) 2022 2021 2020 Bellefonte $ — $ (28) $ — Interest income 15 12 18 External services 16 13 12 Gains (losses) on investments (17) 16 9 Miscellaneous (7) — (3) Total other income, net $ 7 $ 13 $ 36 |
Benefit Plans Benefit Plans (Ta
Benefit Plans Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Retirement Benefits [Abstract] | |
Obligations and Funded Status | The changes in plan obligations, assets, and funded status for the years ended September 30, 2022 and 2021, were as follows: Obligations and Funded Status For the years ended September 30 (in millions) 809,400,000 Pension Benefits Other Post-Retirement Benefits 2022 2021 2022 2021 Change in benefit obligation Benefit obligation at beginning of year $ 13,348 $ 13,675 $ 498 $ 544 Service cost 53 57 17 18 Interest cost 378 368 15 16 Plan participants' contributions 5 5 — — Collections (1) — — 15 17 Actuarial (gain) loss (2,509) (25) (114) (53) Net transfers (to) from variable fund/401(k) plan 11 2 — — Expenses paid (6) (6) — — Benefits paid (744) (728) (43) (44) Benefit obligation at end of year 10,536 13,348 388 498 Change in plan assets Fair value of net plan assets at beginning of year 9,110 7,959 — — Actual return on plan assets (590) 1,572 — — Plan participants' contributions 5 5 — — Collections (1) — — 15 17 Net transfers (to) from variable fund/401(k) plan 11 2 — — Employer contributions 308 306 28 27 Expenses paid (6) (6) — — Benefits paid (744) (728) (43) (44) Fair value of net plan assets at end of year 8,094 9,110 — — Funded status $ (2,442) $ (4,238) $ (388) $ (498) Note (1) Collections include retiree contributions as well as provider discounts and rebates. |
Amounts Recognized on TVA's Consolidated Balance Sheets | Amounts related to these benefit plans recognized on TVA's Consolidated Balance Sheets consist of regulatory assets and liabilities that have not been recognized as components of net periodic benefit cost at September 30, 2022 and 2021, and the funded status of TVA's benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations: Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions) Pension Benefits Other Post-Retirement Benefits 2022 2021 2022 2021 Regulatory assets (liabilities) $ 1,839 $ 3,636 $ (70) $ 32 Accounts payable and accrued liabilities (6) (7) (22) (24) Pension and post-retirement benefit obligations (1) (2,436) (4,231) (366) (474) Note (1) The table above excludes $270 million and $340 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2022 and 2021, respectively. |
Post-Retirement Benefit Costs Deferred as Regulatory Assets | Unrecognized amounts included in regulatory assets or liabilities yet to be recognized as components of accrued benefit cost at September 30, 2022 and 2021, consisted of the following: Post-Retirement Benefit Costs Deferred as Regulatory Assets (Liabilities) At September 30 (in millions) Pension Benefits Other Post-Retirement Benefits 2022 2021 2022 2021 Unrecognized prior service credit $ (424) $ (517) $ (76) $ (93) Unrecognized net loss 2,186 4,062 6 125 Amount capitalized due to actions of regulator 77 91 — — Total regulatory assets (liabilities) $ 1,839 $ 3,636 $ (70) $ 32 |
Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets | Information for the pension projected benefit obligation ("PBO") in excess of plan assets and other post-retirement accumulated postretirement benefit obligation ("APBO") has been disclosed in the Obligations and Funded Status table above. The following table provides the pension plan accumulated benefit obligation ("ABO") in excess of plan assets. The other post-retirement plans are unfunded or have no plan assets. Accumulated Benefit Obligations in Excess of Plan Assets At September 30 (in millions) 2022 2021 Accumulated benefit obligation $ 10,508 $ 13,299 Fair value of net plan assets 8,094 9,110 |
Components of Net Periodic Benefit Cost | The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2022, 2021, and 2020 were as follows: Components of Net Periodic Benefit Cost For the years ended September 30 (in millions) Pension Benefits Other Post-Retirement Benefits 2022 2021 2020 2022 2021 2020 Service cost $ 53 $ 57 $ 55 $ 17 $ 18 $ 16 Interest cost 378 368 415 15 16 16 Expected return on plan assets (435) (493) (488) — — — Amortization of prior service credit (93) (97) (97) (17) (18) (24) Recognized net actuarial loss 392 452 436 5 11 10 Total net periodic benefit cost as actuarially determined 295 287 321 20 27 18 Amount expensed (capitalized) due to actions of regulator 13 19 (15) — — — Net periodic benefit cost $ 308 $ 306 $ 306 $ 20 $ 27 $ 18 |
Sensitivity to Certain Changes in Pension Assumptions | The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions: Sensitivity to Certain Changes in Pension Assumptions Actuarial Assumption Change in Assumption Impact on 2022 Pension Cost (in millions) Impact on 2022 Projected Benefit Obligation (in millions) Discount rate (0.25) % $ 16 $ 257 Rate of return on plan assets (0.25) % 19 N/A Cost of living adjustments 0.25 % 29 179 |
Asset Holdings and Fair Value Measurements | At September 30, 2022 and 2021, the asset holdings of TVARS included the following: Asset Holdings of TVARS Plan Assets at September 30 Asset Category Target Allocation 2022 2021 Growth assets 17 % 20 % 18 % Defensive growth assets 38 % 34 % 35 % Defensive assets 20 % 18 % 20 % Inflation-sensitive assets 25 % 28 % 27 % Total 100 % 100 % 100 % Fair Value Measurements The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2022: TVA Retirement System At September 30, 2022 (in millions) Total (1)(2) Quoted Prices in Active Markets for Identical Significant Other Significant Assets Equity securities $ 709 $ 707 $ — $ 2 Preferred securities 6 1 5 — Debt securities Corporate debt securities 1,087 — 1,087 — Residential mortgage-backed securities 293 — 289 4 Debt securities issued by U.S. Treasury 616 616 — — Debt securities issued by foreign governments 130 — 130 — Asset-backed securities 176 — 136 40 Debt securities issued by state/local governments 23 — 23 — Commercial mortgage-backed securities 161 — 145 16 Commingled funds measured at net asset value (3) Equity 436 — — — Debt 657 — — — Blended 111 — — — Institutional mutual funds 454 454 — — Cash equivalents and other short-term investments 431 133 298 — Private credit measured at net asset value (3) 522 — — — Private equity measured at net asset value (3) 1,454 — — — Private real assets measured at net asset value (3) 1,080 — — — Securities lending collateral 196 — 196 — Derivatives Futures 5 5 — — Swaps 17 — 17 — Foreign currency forward receivable 2 — 2 — Total assets $ 8,566 $ 1,916 $ 2,328 $ 62 Liabilities Derivatives Futures $ 10 $ 10 $ — $ — Foreign currency forward payable 1 — 1 — Swaps 54 — 54 — Securities sold under agreements to repurchase 111 — 111 — Total liabilities $ 176 $ 10 $ 166 $ — Notes (1) Excludes approximately $100 million in net payables associated with security purchases and sales and various other payables. (2) Excludes a $196 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs. (3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2021: TVA Retirement System At September 30, 2021 (in millions) Total (1)(2) Quoted Prices in Active Markets for Identical Significant Other Significant Assets Equity securities $ 992 $ 990 $ — $ 2 Preferred securities 9 2 6 1 Debt securities Corporate debt securities 1,360 — 1,359 1 Residential mortgage-backed securities 275 — 267 8 Debt securities issued by U.S. Treasury 741 741 — — Debt securities issued by foreign governments 204 — 200 4 Asset-backed securities 151 — 110 41 Debt securities issued by state/local governments 28 — 28 — Commercial mortgage-backed securities 168 — 151 17 Commingled funds measured at net asset value (3) Equity 619 — — — Debt 881 — — — Blended 105 — — — Institutional mutual funds 841 841 — — Cash equivalents and other short-term investments 710 323 387 — Private credit measured at net asset value (3) 324 — — — Private equity measured at net asset value (3) 1,333 — — — Private real assets measured at net asset value (3) 760 — — — Securities lending collateral 240 — 240 — Derivatives Futures 1 1 — — Swaps 6 — 6 — Foreign currency forward receivable 1 — 1 — Total assets $ 9,749 $ 2,898 $ 2,755 $ 74 Liabilities Derivatives Futures $ 4 $ 4 $ — $ — Foreign currency forward payable 1 — 1 — Swaps 23 — 23 — Securities sold under agreements to repurchase 108 — 108 — Total liabilities $ 136 $ 4 $ 132 $ — Notes (1) Excludes approximately $263 million in net payables associated with security purchases and sales and various other payables. (2) Excludes a $240 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs. (3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. |
Fair Value Measurements Using Significant Unobservable Inputs | The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3): Fair Value Measurements Using Significant Unobservable Inputs (in millions) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Balance at September 30, 2020 $ 94 Net realized/unrealized gains (losses) (48) Purchases, sales, issuances, and settlements (net) 32 Transfers in and/or out of Level 3 (4) Balance at September 30, 2021 74 Net realized/unrealized gains (losses) (4) Purchases, sales, issuances, and settlements (net) 2 Transfers in and/or out of Level 3 (10) Balance at September 30, 2022 $ 62 |
Estimated Future Benefit Payments | Cash Flows Estimated Future Benefit Payments. The following table sets forth the estimated future benefit payments under the benefit plans. Estimated Future Benefits Payments At September 30, 2022 (in millions) Pension Benefits (1) Other Post-Retirement Benefits 2023 $ 793 $ 22 2024 808 21 2025 813 21 2026 810 21 2027 807 22 2028 - 2032 3,932 126 Note (1) Participants are assumed to receive the Fixed Fund in a lump sum in lieu of available annuity options allowed for certain grandfathered participants resulting in higher estimated pension benefits payments. |
Amounts recognized on Consolidated Balance Sheets | Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions) 2022 2021 Accounts payable and accrued liabilities (1) $ 29 $ — Post-retirement and post-employment benefit obligations 270 340 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded loan commitments | At September 30, 2022, TVA had no commitments under unfunded loan commitments for 2023. TVA also has no commitments under unfunded loan commitments for 2024 through 2027. |
Related Parties Related Parties
Related Parties Related Parties (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Transactions with agencies of the federal government were as follows: Related Party Transactions At or for the years ended September 30 (in millions) 2022 2021 2020 Revenue from sales of electricity $ 134 $ 109 $ 105 Other income 296 280 260 Expenditures Operating expenses 228 214 224 Additions to property, plant, and equipment 11 10 9 Cash and cash equivalents 30 30 31 Accounts receivable, net 78 65 94 Investment funds 358 573 485 Long-term accounts receivable 43 31 27 Accounts payable and accrued liabilities 42 15 39 Long-term power bonds, net 1 1 1 Return on power program appropriation investment 4 4 6 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenues | Revenues TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month. Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements. Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net. |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA did not have any material contract assets at September 30, 2022. Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers. These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation. See Economic Development Incentives below and Note 12 — Other Long-Term Liabilities — Long-Term Deferred Revenue . |
Leases (Table Text Block)
Leases (Table Text Block) | 12 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Amounts Recognized on Balance Sheets | The following table provides information regarding the presentation of leases on the Consolidated Balance Sheets: Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions) 2022 2021 Assets Operating Operating lease assets, net of amortization $ 155 $ 165 Finance Finance leases 630 692 Total lease assets $ 785 $ 857 Liabilities Current Operating Accounts payable and accrued liabilities $ 59 $ 40 Finance Accounts payable and accrued liabilities 59 60 Non-current Operating Other long-term liabilities 93 122 Finance Finance lease liabilities 628 687 Total lease liabilities $ 839 $ 909 |
Lease Costs | TVA's leases consist primarily of railcars, equipment, real estate/land, power generating facilities, and gas pipelines. TVA's leases have various terms and expiration dates remaining from less than one year to approximately 24 years. The components of lease costs were as follows: Lease Costs For the years ended September 30 (in millions) 2022 2021 2020 Operating lease costs (1) $ 56 $ 52 $ 84 Variable lease costs (1) 78 75 75 Short-term lease costs (1) 26 12 7 Finance lease costs Amortization of lease assets (2) 58 51 15 Interest on lease liabilities (3)(4) 42 39 33 Total finance lease costs 100 90 48 Total lease costs $ 260 $ 229 $ 214 Notes (1) Costs are included in Operating and maintenance expense, Fuel expense, Purchased power expense, and Tax equivalents expense on the Consolidated Statements of Operations. (2) Expense is included in Depreciation and amortization expense on the Consolidated Statements of Operations. (3) Expense is included in Interest expense on the Consolidated Statements of Operations. (4) Certain finance leases receive regulatory accounting treatment and are reclassified to Fuel expense and Purchased power expense. |
Amounts Recognized on Statements of Cash Flows | The following table contains additional information with respect to cash and non-cash activities related to leases: Amounts Recognized on TVA's Consolidated Statements of Cash Flows For the years ended September 30 (in millions) 2022 2021 2020 Operating cash flows for operating leases $ 57 $ 53 $ 85 Operating cash flows for finance leases 42 39 33 Financing cash flows for finance leases 60 52 15 Lease assets obtained in exchange for lease obligations (non-cash) Operating leases (1) $ 43 $ (22) $ 110 Finance leases — 233 394 Note (1) Amount for 2021 represents a non-cash reduction due to a lease that was amended during the fiscal year resulting in derecognition of the operating lease asset and obligation upon remeasurement. |
Weighted Averages | TVA has certain finance leases under PPAs under which the present value of the minimum lease payments exceeds the fair value of the related lease asset at the date of measurement. This resulted in an interest rate that was higher than TVA's incremental borrowing rate. The weighted average remaining lease term in years and the weighted average discount rate for TVA's operating and financing leases were as follows: Weighted Averages At September 30 2022 2021 Weighted average remaining lease terms Operating leases 3 years 5 years Finance leases 11 years 12 years Weighted average discount rate (1) Operating leases 1.5% 1.5% Finance leases 17.8% 17.7% Note (1) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. If the rate used by the lessor is not readily determinable, TVA uses its incremental borrowing rate as permitted by accounting guidance. The incremental borrowing rate is influenced by TVA's credit rating and lease term and as such may differ for individual leases, embedded leases, or portfolios of leased assets. |
Future Minimum Lease Payments | The following table presents maturities of lease liabilities and a reconciliation of the undiscounted cash flows to lease liabilities at September 30, 2022 : Future Minimum Lease Payments Minimum payments due at September 30, 2022 (in millions) Operating leases 2023 $ 61 2024 43 2025 35 2026 10 2027 2 Thereafter 5 Minimum annual payments 156 Less: present value discount (4) Operating present value of net minimum lease payments $ 152 Finance leases 2023 $ 112 2024 107 2025 106 2026 105 2027 104 Thereafter 552 Minimum annual payments 1,086 Less: amount representing interest (399) Finance present value of net minimum lease payments $ 687 |
Deferred Costs, Capitalized, _2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) | 12 Months Ended |
Sep. 30, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other Current Assets At September 30 (in millions) 2022 2021 Commodity contract derivative assets $ 172 $ 210 Other 85 77 Other current assets $ 257 $ 287 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - General (Details) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2022 USD ($) People | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2019 USD ($) | Sep. 30, 2015 USD ($) | |
Accounting Policies [Abstract] | |||||
Cash and Cash Equivalents, at Carrying Value | $ 500 | $ 499 | |||
Allowance for uncollectible accounts - loans | 3 | 4 | |||
Reimbursements from DOE | 188 | ||||
Restricted Cash and Investments, Noncurrent | 20 | 19 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 520 | 518 | $ 521 | $ 322 | |
Accounts receivable from DOE | 9 | ||||
Appropriation-investment power program | $ 258 | 258 | $ 1,000 | ||
Population of Service Area [Line Items] | |||||
Population of service area | People | 10,000,000 | ||||
Cash and Cash Equivalents, at Carrying Value | $ 500 | 499 | |||
Restricted Cash and Investments, Noncurrent | $ 20 | $ 19 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reclassificatons (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Reclassifications | |
Finance Lease, Liability | $ 687 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Portion at Other than Fair Value Measurement [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | $ 105 | $ 99 |
Financing Receivable, after Allowance for Credit Loss | 96 | 94 |
Allowance for uncollectible accounts - receivables | 1 | 1 |
Allowance for uncollectible accounts - loans | $ 3 | $ 4 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property, Plant, and Equipment, and Depreciation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant, and Equipment, and Depreciation | |||
Depreciation | $ 1,800 | $ 1,400 | $ 1,600 |
Composite depreciation rate for completed plant | 2.98% | 2.28% | 2.74% |
Reacquired Rights | $ 178 | $ 184 | |
Amortization of Reacquired Rights | $ 6 | 8 | $ 8 |
Capitalized software amortization period | 7 years | ||
Accelerated depreciation | $ 140 | 136 | $ 125 |
Increase (decrease) in Year 1 due to new depreciation study | 345 | ||
Accumulated Amortization of Reacquired Rights | 42 | $ 36 | |
Amortization Reacquired Rights, Year 1 | 6 | ||
Amortization Reacquired Rights, Year 2 | 6 | ||
Amortization Reacquired Rights, Year 3 | 6 | ||
Amortization Reacquired Rights, Year 4 | 6 | ||
Amortization Reacquired Rights, Year 5 | 6 | ||
Amortization Reacquired Rights, Year Thereafter | $ 148 | ||
Nuclear | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 2.72% | 2.38% | 2.38% |
Coal-fired | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 4.27% | 1.95% | 3.62% |
Hydroelectric | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 1.85% | 1.60% | 1.60% |
Gas and oil-fired | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 3.38% | 2.98% | 3.04% |
Transmission | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 1.51% | 1.34% | 1.34% |
Other | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 3.64% | 7.12% | 7.26% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Energy Prepayment Obligations and Discounts on Sales (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Energy Prepayment Obligations and Discounts on Sales | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 1 | $ 1 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | |||
Finance lease under PPA | $ 425 | $ 464 | |
Operating lease under PPA | 133 | 143 | |
Operating cash flows for operating leases | $ 57 | $ 53 | $ 85 |
Impact of New Accounting Stan_2
Impact of New Accounting Standards and Interpretations (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 155 | $ 165 |
Accounts Receivable, Net Acco_2
Accounts Receivable, Net Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Power receivables | $ 1,899 | $ 1,480 | |
Other receivables | 108 | 86 | |
Allowance for uncollectible accounts | (1) | [1] | (1) |
Accounts receivable, net | $ 2,007 | $ 1,566 | |
[1]Allowance for uncollectible accounts was less than $1 million at both September 30, 2022 and 2021, and therefore is not represented in the table above. |
Inventories, Net Inventories,_2
Inventories, Net Inventories, Net (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Inventories, Net | ||
Materials and supplies inventory | $ 808 | $ 775 |
Fuel inventory | 303 | 198 |
Renewable energy certificates/emissions allowance inventory, net | 18 | 12 |
Allowance for inventory obsolescence | (57) | (35) |
Inventories, net | 1,072 | $ 950 |
Increase (Decrease) in Coal Inventories | 58 | |
Increase (Decrease) in Fuel Inventories | 105 | |
Increase (Decrease) in Other Fossil Fuel Inventories | $ 32 |
Net Completed Plant Net Compl_2
Net Completed Plant Net Completed Plant (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Completed Plant | ||
Completed plant cost | $ 66,442 | $ 66,411 |
Accumulated depreciation | 34,239 | 34,663 |
Net completed plant | 32,203 | 31,748 |
Coal-fired | ||
Completed Plant | ||
Completed plant cost | 18,145 | 19,319 |
Accumulated depreciation | 13,649 | 14,357 |
Net completed plant | 4,496 | 4,962 |
Gas and oil-fired | ||
Completed Plant | ||
Completed plant cost | 6,112 | 6,076 |
Accumulated depreciation | 1,957 | 1,824 |
Net completed plant | 4,155 | 4,252 |
Nuclear | ||
Completed Plant | ||
Completed plant cost | 26,629 | 26,024 |
Accumulated depreciation | 12,928 | 12,632 |
Net completed plant | 13,701 | 13,392 |
Transmission | ||
Completed Plant | ||
Completed plant cost | 8,919 | 8,597 |
Accumulated depreciation | 3,301 | 3,215 |
Net completed plant | 5,618 | 5,382 |
Hydroelectric | ||
Completed Plant | ||
Completed plant cost | 3,987 | 3,525 |
Accumulated depreciation | 1,192 | 1,135 |
Net completed plant | 2,795 | 2,390 |
Other electrical plant | ||
Completed Plant | ||
Completed plant cost | 1,724 | 1,943 |
Accumulated depreciation | 807 | 1,103 |
Net completed plant | 917 | 840 |
Multipurpose dams | ||
Completed Plant | ||
Completed plant cost | 900 | 900 |
Accumulated depreciation | 396 | 388 |
Net completed plant | 504 | 512 |
Other stewardship | ||
Completed Plant | ||
Completed plant cost | 26 | 27 |
Accumulated depreciation | 9 | 9 |
Net completed plant | $ 17 | $ 18 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Other Long-Term Assets | ||
EnergyRight receivables | $ 62 | $ 71 |
Prepaid Expense, Noncurrent | 74 | 44 |
Restricted Cash and Investments, Noncurrent | 20 | 19 |
Total other long-term assets | 394 | 320 |
Prepaid Expense, Current | 12 | |
Loans and Leases Receivable, Allowance | 3 | 4 |
Financing Receivable, after Allowance for Credit Loss, Current | 6 | 3 |
Other Assets, Miscellaneous, Current | 85 | 77 |
EnergyRight loan reserve | ||
Other Long-Term Assets | ||
Loans and Leases Receivable, Allowance | 1 | 1 |
Economic development loan collective reserve | ||
Other Long-Term Assets | ||
Loans and Leases Receivable, Allowance | 1 | 1 |
Economic development loan specific loan reserve | ||
Other Long-Term Assets | ||
Loans and Leases Receivable, Allowance | 1 | 2 |
Accounts Receivable [Member] | ||
Other Long-Term Assets | ||
EnergyRight receivables | 13 | 15 |
Other long-term assets | ||
Other Long-Term Assets | ||
EnergyRight receivables | 49 | 57 |
Loans and other long-term receivables, net | 99 | 96 |
Commodity contract derivative assets | 102 | 40 |
Other | $ 70 | $ 83 |
Energy Right | ||
Other Long-Term Assets | ||
Number of days in default | 180 days | |
Minimum | Energy Right | ||
Other Long-Term Assets | ||
EnergyRight loan terms | 5 years | |
Maximum | Energy Right | ||
Other Long-Term Assets | ||
EnergyRight loan terms | 10 years |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | $ 172 | $ 40 | |
Current regulatory assets | 138 | 196 | |
Regulatory assets | 6,134 | 7,956 | |
Regulatory Assets | 6,272 | 8,152 | |
Current regulatory liabilities | 391 | 340 | |
Regulatory asset amount expensed | 70 | 72 | $ 21 |
Regulatory Liabilities | 563 | 380 | |
Change in nuclear decommissioning costs | 458 | ||
Deferred Project Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Gallatin coal combustion residual facilities estimated cost to cap and close | 47 | 114 | |
Regulatory Asset | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 138 | 150 | |
Removal Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 479 | 1,122 | |
Unrealized losses on interest rate derivatives | |||
Regulatory Assets and Liabilities | |||
Current regulatory assets | 14 | 3 | |
Regulatory assets | 1 | 0 | |
Non-nuclear decommissioning costs | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 2,856 | 2,653 | |
Pension Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 1,839 | 3,668 | |
Deferred Fuel Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Current regulatory assets | 77 | 79 | |
Nuclear decommissioning costs | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 821 | 363 | |
Unrealized gains/losses on commodity derivatives | |||
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | 102 | 40 | |
Current regulatory liabilities | 173 | 210 | |
Deferred other post-retirement benefits cost | |||
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | 70 | 0 | |
Fuel cost adjustment tax equivalents | |||
Regulatory Assets and Liabilities | |||
Current regulatory liabilities | $ 218 | $ 130 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2013 | Sep. 30, 2012 | |
Liabilities | |||||
Current maturities of long-term debt of variable interest entities issued at par | $ 39 | $ 43 | |||
Liabilities, Current | 4,645 | 4,979 | |||
Other long-term liabilities | 1,485 | 2,041 | |||
Long-term debt of variable interest entities, net | 968 | 1,006 | |||
VIE Financing | |||||
Face Amount | $ 40 | $ 360 | |||
Rate of Return SHLLC | 7% | ||||
Accrued interest | $ 10 | 10 | |||
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months | 2 | ||||
Minimum payments on membership interests subject to mandatory redemption, due in year two | 1 | ||||
Minimum payments on membership interests subject to mandatory redemption, due in year three | 1 | ||||
Minimum payments on membership interests subject to mandatory redemption, due in year four | 1 | ||||
Minimum payments on membership interests subject to mandatory redemption, due in year five | 1 | ||||
Minimum payments on membership interests subject to mandatory redemption, due thereafter | 14 | ||||
Other Long-term Debt, Maturity, Year One | 39 | ||||
Other Long-term Debt, Maturity, Year Two | 36 | ||||
Other Long-term Debt, Maturity, Year Three | 37 | ||||
Other Long-term Debt, Maturity, Year Four | 39 | ||||
Other Long-term Debt, Maturity, Year Five | 40 | ||||
Other Long-term Debt, Maturity, Year Six | 822 | ||||
SCCG | |||||
VIE Financing | |||||
Debt and Lease Obligation | $ 400 | ||||
Holdco | |||||
VIE Financing | |||||
Face Amount | $ 100 | ||||
JSCCG | |||||
VIE Financing | |||||
Face Amount | 900 | ||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Liabilities | |||||
Liabilities, Current | 51 | 56 | |||
Other long-term liabilities | 18 | 20 | |||
VIE Financing | |||||
Accounts Payable and Accrued Liabilities | 2 | 3 | |||
Liabilities | 1,037 | 1,082 | $ 1,000 | ||
Interest Expense | $ 50 | $ 52 | $ 54 |
Asset Retirement Obligations _3
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Liabilities Settled [Line Items] | ||||
Increase in ARO liability | $ 160 | |||
Change in estimate | [1] | 247 | $ 203 | |
Additional obligations | [1] | 43 | ||
Balance | [1] | 7,162 | 7,002 | $ 6,785 |
Asset Retirement Obligation, Liabilities Settled | [1] | 311 | 242 | |
Accretion (recorded as regulatory asset) | [1] | 224 | 213 | |
Asset Retirement Obligation, Current | 275 | 266 | ||
Amortization and Depreciation of Decontaminating and Decommissioning Assets | 137 | 72 | 169 | |
Total ARO change due to CCR | 82 | 122 | ||
Change in ARO from operating CCR facilities | 30 | |||
Change in ARO from inactive CCR facilities | 13 | |||
ARO change due to groundwater monitoring | 69 | |||
Accounts payable and accrued liabilities | ||||
Liabilities Settled [Line Items] | ||||
Asset Retirement Obligation, Liabilities Settled | 20 | |||
Nuclear | ||||
Liabilities Settled [Line Items] | ||||
Change in estimate | 61 | 12 | ||
Additional obligations | 0 | |||
Balance | 3,643 | 3,428 | 3,278 | |
Asset Retirement Obligation, Liabilities Settled | 2 | 11 | ||
Accretion (recorded as regulatory asset) | 156 | 149 | ||
Change due to cost study | 58 | |||
Non-nuclear | ||||
Liabilities Settled [Line Items] | ||||
Change in estimate | 186 | 191 | ||
Additional obligations | 43 | |||
Balance | 3,519 | 3,574 | $ 3,507 | |
Asset Retirement Obligation, Liabilities Settled | 309 | 231 | ||
Accretion (recorded as regulatory asset) | 68 | $ 64 | ||
Change in estimate due to coal fines | 119 | |||
Change in estimate due to closure of coal yards | 57 | |||
Change in estimate due to timing of maintenance | 53 | |||
Change in estimate due to timing of asset retirement activities | 47 | |||
Change in estimate due to Gallatin CCR closure | 30 | |||
Change in cost estimates at Allen | $ 15 | |||
[1] (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Other Long-Term Liabilities O_2
Other Long-Term Liabilities Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Long-Term Liabilities | |||
Interest rate swaps | $ 905 | $ 1,639 | |
Derivative Liability | (734) | ||
Currency swap liabilities | 240 | 83 | [1] |
EnergyRight financing obligation | (81) | (92) | |
Deferred Revenue, Noncurrent | 39 | 37 | |
Non-current regulatory liabilities | 172 | 40 | |
Total other long-term liabilities | 1,485 | $ 2,041 | |
Finance Lease, Liability | $ 687 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Deferred Compensation Liability, Current | $ (53) | $ (51) | |
Current portion of energy prepayment obligations | 16 | 17 | |
Change in currency swap liabilities | 157 | ||
Other long-term liabilities | |||
Other Long-Term Liabilities | |||
Interest rate swaps | 851 | 1,524 | |
Currency swap liabilities | 228 | 76 | |
EnergyRight financing obligation | (58) | (66) | |
Environmental agreements liability | 39 | 42 | |
Customer Advances for Construction | 53 | 24 | |
Membership interests of VIE subject to mandatory redemption | 0 | 29 | |
Other | 124 | 121 | |
Accounts payable and accrued liabilities | |||
Other Long-Term Liabilities | |||
Interest rate swaps | 54 | 115 | |
Service agreements | (32) | (28) | |
EnergyRight financing obligation | (14) | (16) | |
Customer Advances for Construction | $ 33 | $ 38 | |
[1]See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . |
Debt and Other Obligations De_2
Debt and Other Obligations Debt and Other Obligations - General (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2013 | Jan. 17, 2012 | |
Debt Instrument | |||
Interest rate | 7.10% | ||
Debt ceiling | $ 30,000 | ||
Face Amount | $ 40 | $ 360 | |
PARRS 1998 Series D Bond | |||
Debt Instrument | |||
PARRS interest rate after rate reset | 2.134% | ||
Amount of bonds redeemed | $ 318 | ||
Amount of redeemable bond issues outstanding | $ 256 | ||
PARRS interest rate after rate reset | 2.134% | ||
PARRS 1999 Series A Bond | |||
Debt Instrument | |||
PARRS interest rate after rate reset | 2.216% | ||
Amount of bonds redeemed | $ 316 | ||
Amount of redeemable bond issues outstanding | $ 208 | ||
PARRS interest rate after rate reset | 2.216% |
Debt and Other Obligations De_3
Debt and Other Obligations Debt and Other Obligations - Secured Debt of VIEs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2013 | Aug. 09, 2013 | Sep. 30, 2012 | Jan. 17, 2012 |
Variable Interest Entities | ||||||
Face Amount | $ 40 | $ 360 | ||||
Interest rate | 7.10% | |||||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 22 | $ 30 | ||||
Long-term debt of variable interest entities (including current maturities) | 989 | $ 1,307 | ||||
SCCG | ||||||
Variable Interest Entities | ||||||
Interest rate | 3.846% | |||||
JSCCG | ||||||
Variable Interest Entities | ||||||
Face Amount | $ 900 | |||||
Debt Instrument, Interest Rate | 4.626% | |||||
Holdco | ||||||
Variable Interest Entities | ||||||
Face Amount | $ 100 | |||||
Holdco balloon payment upon maturity | $ 10 |
Debt and Other Obligations De_4
Debt and Other Obligations Debt and Other Obligations - Secured Notes of SPEs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2013 | Jan. 17, 2012 |
Secured notes | |||
Secured notes | $ 40 | $ 360 | |
Interest rate | 7.10% |
Debt and Other Obligations De_5
Debt and Other Obligations Debt and Other Obligations - Short-Term Debt (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Short-Term Debt, Gross [Line Items] | ||
Short-Term Debt | $ 1,172 | $ 780 |
Short-term Borrowings Gross | $ 1,173 | $ 780 |
Weighted average interest rate - discount notes | 2.93% | 0.03% |
Foreign Currency Transaction Gain (Loss), Unrealized | $ 150 |
Debt and Other Obligations De_6
Debt and Other Obligations Debt and Other Obligations - Put and Call Options (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
PARRS 1998 Series D Bond | |
Debt Instrument | |
Amount of redeemable bond issues outstanding | $ 256 |
PARRS interest rate prior to rate reset | 6.75% |
PARRS interest rate after rate reset | 2.134% |
Amount of bonds redeemed | $ 318 |
PARRS 1999 Series A Bond | |
Debt Instrument | |
Amount of redeemable bond issues outstanding | $ 208 |
PARRS interest rate prior to rate reset | 6.50% |
PARRS interest rate after rate reset | 2.216% |
Amount of bonds redeemed | $ 316 |
Debt and Other Obligations De_7
Debt and Other Obligations Debt and Other Obligations - Debt Securities Activity (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2013 | Jan. 17, 2012 | |
Debt Instrument | |||||
Issues of power bonds | $ 484 | $ 500 | $ 997 | ||
Face Amount | 40 | $ 360 | |||
Discount on debt issues | (16) | 0 | |||
Redemptions/Maturities of variable interest entities | 43 | 41 | 39 | ||
Redemptions/Maturities of power bonds | $ 1,028 | $ 1,860 | $ 1,427 | ||
Percent of par value | 96.786% | 99.982% | |||
Total Current maturities of power bonds issued at par | $ 29 | $ 1,028 | |||
Interest rate | 7.10% | ||||
Short-term debt, net of discounts | 1,172 | 780 | |||
Current maturities of long-term debt of variable interest entities issued at par | 39 | 43 | |||
Long-term power bonds, net | 17,826 | 17,457 | |||
880591EF5 (12.15.20) | |||||
Debt Instrument | |||||
Total Current maturities of power bonds issued at par | $ 1 | 1 | |||
Interest rate | 3.77% | ||||
Debt Instrument, Maturity Date | Dec. 15, 2022 | ||||
880591EF5 (6.15.21) | |||||
Debt Instrument | |||||
Total Current maturities of power bonds issued at par | $ 28 | 27 | |||
Interest rate | 3.77% | ||||
Debt Instrument, Maturity Date | Jun. 15, 2023 | ||||
880591EN8 | |||||
Debt Instrument | |||||
Total Current maturities of power bonds issued at par | $ 0 | $ 1,000 | |||
Interest rate | 1.875% | ||||
Debt Instrument, Maturity Date | Aug. 15, 2022 | ||||
Total | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Period, End Date | 1,071 | 1,901 | |||
Percent of par value | 100% | ||||
Debt of variable interest entities | |||||
Debt Instrument | |||||
Redemptions/Maturities of variable interest entities | $ 43 | $ 41 | |||
2009 Series B | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 28 | 29 | |||
2011 Series A | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 0 | 1,500 | |||
1998 Series H | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 0 | 331 | |||
2012 Series A | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 1,000 | 0 | |||
Total | |||||
Debt Instrument | |||||
Debt Securities Issues | 484 | 500 | |||
2021 Series A | |||||
Debt Instrument | |||||
Debt Securities Issues | $ 0 | ||||
880591EY4 | |||||
Debt Instrument | |||||
Interest rate | 4.25% | ||||
Debt Instrument, Maturity Date | Sep. 15, 2052 | ||||
Long-term power bonds, net | $ 500 | 0 | |||
880591EX6 | |||||
Debt Instrument | |||||
Interest rate | 1.50% | ||||
Debt Instrument, Maturity Date | Sep. 15, 2031 | ||||
Long-term power bonds, net | $ 500 | $ 500 |
Debt and Other Obligations De_8
Debt and Other Obligations Debt and Other Obligations - Debt Outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Jan. 17, 2012 | ||
Short-term debt | ||||
Coupon rate | 7.10% | |||
Short-term debt, net of discounts | $ 1,172 | $ 780 | ||
Current maturities of long-term debt of variable interest entities issued at par | 39 | 43 | ||
Total Current maturities of power bonds issued at par | 29 | 1,028 | ||
Current maturities of power bonds | 29 | 1,028 | ||
Total current debt outstanding, net | 1,240 | 1,851 | ||
Long-term debt | ||||
Long-term power bonds, net | 17,826 | 17,457 | ||
Long-term power bonds | [1] | 17,950 | 17,572 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (124) | (115) | ||
Long-term debt of variable interest entities, net | 968 | 1,006 | ||
Total long-term debt, net | 18,794 | 18,463 | ||
Foreign Currency Transaction Gain (Loss), before Tax | $ 150 | 58 | ||
880591DX7 | ||||
Short-term debt | ||||
Coupon rate | 4.65% | |||
Debt Instrument, Maturity Date | Jun. 15, 2035 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 436 | 436 | ||
880591EF5 | ||||
Short-term debt | ||||
Coupon rate | 3.77% | |||
Debt Instrument, Maturity Date | Jun. 15, 2034 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 160 | 190 | ||
880591ER9 | ||||
Short-term debt | ||||
Coupon rate | 2.875% | |||
Debt Instrument, Maturity Date | Sep. 15, 2024 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591CJ9 | ||||
Short-term debt | ||||
Coupon rate | 6.75% | |||
Debt Instrument, Maturity Date | Nov. 01, 2025 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,350 | 1,350 | ||
880591EU2 [Member] | ||||
Short-term debt | ||||
Coupon rate | 2.875% | |||
Debt Instrument, Maturity Date | Feb. 01, 2027 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591300 | ||||
Short-term debt | ||||
Coupon rate | 2.134% | |||
Debt Instrument, Maturity Date | Jun. 01, 2028 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 256 | 256 | ||
880591409 | ||||
Short-term debt | ||||
Coupon rate | 2.216% | |||
Debt Instrument, Maturity Date | May 01, 2029 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 208 | 208 | ||
880591DM1 | ||||
Short-term debt | ||||
Coupon rate | 7.125% | |||
Debt Instrument, Maturity Date | May 01, 2030 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591DV1 | ||||
Short-term debt | ||||
Coupon rate | 4.70% | |||
Debt Instrument, Maturity Date | Jul. 15, 2033 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 472 | 472 | ||
880591DP4 | ||||
Short-term debt | ||||
Coupon rate | 6.587% | |||
Debt Instrument, Maturity Date | Jun. 07, 2032 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 279 | 337 | ||
880591CK6 | ||||
Short-term debt | ||||
Coupon rate | 5.98% | |||
Debt Instrument, Maturity Date | Apr. 01, 2036 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 121 | 121 | ||
880591CS9 | ||||
Short-term debt | ||||
Coupon rate | 5.88% | |||
Debt Instrument, Maturity Date | Apr. 01, 2036 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,500 | 1,500 | ||
880591CP5 | ||||
Short-term debt | ||||
Coupon rate | 6.15% | |||
Debt Instrument, Maturity Date | Jan. 15, 2038 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591ED0 | ||||
Short-term debt | ||||
Coupon rate | 5.50% | |||
Debt Instrument, Maturity Date | Jun. 15, 2038 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 500 | 500 | ||
880591EH1 | ||||
Short-term debt | ||||
Coupon rate | 5.25% | |||
Debt Instrument, Maturity Date | Sep. 15, 2039 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 2,000 | 2,000 | ||
880591EP3 | ||||
Short-term debt | ||||
Coupon rate | 3.50% | |||
Debt Instrument, Maturity Date | Dec. 15, 2042 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591DU3 | ||||
Short-term debt | ||||
Coupon rate | 4.962% | |||
Debt Instrument, Maturity Date | Jun. 07, 2043 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 168 | 202 | ||
880591EB4 | ||||
Short-term debt | ||||
Coupon rate | 4.875% | |||
Debt Instrument, Maturity Date | Jan. 15, 2048 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 500 | 500 | ||
880591DZ2 | ||||
Short-term debt | ||||
Coupon rate | 5.375% | |||
Debt Instrument, Maturity Date | Apr. 01, 2056 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591EJ7 | ||||
Short-term debt | ||||
Coupon rate | 4.625% | |||
Debt Instrument, Maturity Date | Sep. 15, 2060 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591ES7 | ||||
Short-term debt | ||||
Coupon rate | 4.25% | |||
Debt Instrument, Maturity Date | Sep. 15, 2065 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591EW8 [Member] | ||||
Short-term debt | ||||
Coupon rate | 0.75% | |||
Debt Instrument, Maturity Date | May 15, 2025 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | 1,000 | ||
880591EX6 | ||||
Short-term debt | ||||
Coupon rate | 1.50% | |||
Debt Instrument, Maturity Date | Sep. 15, 2031 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 500 | 500 | ||
880591EY4 | ||||
Short-term debt | ||||
Coupon rate | 4.25% | |||
Debt Instrument, Maturity Date | Sep. 15, 2052 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 500 | $ 0 | ||
[1]Includes net exchange gain from currency transactions of $150 million and $58 million at September 30, 2022 and 2021 |
Debt and Other Obligations De_9
Debt and Other Obligations Debt and Other Obligations - Maturities Due (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2028 | Sep. 30, 2027 | Sep. 30, 2026 | Sep. 30, 2025 | Sep. 30, 2024 | |
Debt Instrument | |||||||
2018 | $ 29 | ||||||
2019 | 1,022 | ||||||
2020 | 1,022 | ||||||
2021 | 1,370 | ||||||
2022 | 1,020 | ||||||
Thereafter | 13,666 | ||||||
Total | 18,129 | ||||||
Short-Term Debt | 1,172 | $ 780 | |||||
Foreign Currency Transaction Gain (Loss), before Tax | 150 | 58 | |||||
Net discount on sale of Bonds | 82 | ||||||
Foreign Currency Transaction Gain (Loss), Unrealized | 150 | ||||||
Short-term Borrowings Gross | 1,173 | $ 780 | |||||
Short-Term Debt | |||||||
Debt Instrument | |||||||
Debt issuance costs | 1 | ||||||
Scenario, Forecast | |||||||
Debt Instrument | |||||||
Short-Term Debt | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||
Power bonds | |||||||
Debt Instrument | |||||||
Debt issuance costs | 42 | ||||||
Other long-term debt | |||||||
Debt Instrument | |||||||
Debt issuance costs | $ 6 |
Debt and Other Obligations D_10
Debt and Other Obligations Debt and Other Obligations - Credit Facility Agreements (Details) | Sep. 30, 2022 USD ($) Credit_facilities | Sep. 30, 2021 USD ($) |
Credit Facility Agreements | ||
Letters of Credit Outstanding, Amount 3 | $ 99,000,000 | |
Letter of Credit Outstanding, Amount 2 | 67,000,000 | |
Long-term Line of Credit, Borrowings 3 | 0 | |
Long-term Line of Credit, Borrowings 2 | 0 | |
Borrowings under U.S. Treasury credit facility | 0 | |
Revolving Credit Facilities | ||
Credit Facility Agreements | ||
Current borrowing capacity | 2,650,000,000 | |
Credit facility agreements borrowings outstanding | $ 0 | |
Number of revolving credit facilities | Credit_facilities | 4 | |
Revolving Credit Facility 4 | $ 150,000,000 | |
Revolving credit facility 3 | 1,000,000,000 | |
Revolving credit facility 1 | 500,000,000 | |
Revolving Credit Facility 2 | 1,000,000,000 | |
Long-term Line of Credit, Borrowings 4 | 0 | |
Long-term Line of Credit, Borrowings 1 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity 4 | 933,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity 2 | 112,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity 3 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity 1 | 901,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 1,946,000,000 | |
Letter of Credit | ||
Credit Facility Agreements | ||
Amount of letters of credit outstanding | 704,000,000 | $ 1,200,000,000 |
Letters of Credit Outstanding, Amount 4 | 38,000,000 | |
Letters of Credit Outstanding, Amount 1 | $ 500,000,000 |
Debt and Other Obligations D_11
Debt and Other Obligations Debt and Other Obligations - Lease/Leasebacks (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Lease/Leasebacks [Abstract] | ||
CT and QTE outstanding leaseback obligation | $ 25 | |
Kemper/Lagoon Creek Leasehold Interests | ||
Variable Interest Entities | ||
Leasehold Interests | $ 155 |
Risk Management Activities an_3
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Derivative Instruments That Receive Hedge Accounting Treatment (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Interest rate swaps | $ 905,000,000 | $ 1,639,000,000 | |
Ineffective portion excluded from testing | 0 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 29,000,000 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (93,000,000) | 97,000,000 | $ 38,000,000 |
Accounts payable and accrued liabilities | |||
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Interest rate swaps | $ 54,000,000 | $ 115,000,000 |
Risk Management Activities an_4
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Derivative Instruments That Do Not Receive Hedge Accounting Treatment (Details) | 12 Months Ended | |
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Derivative | ||
Change in Unrealized gains (losses) on Interest Rate Derivatives | $ (728,000,000) | $ (402,000,000) |
Interest rate swaps | 905,000,000 | 1,639,000,000 |
Unrealized gains/losses on derivatives | 0 | |
Interest Rate Swap | ||
Derivative | ||
Fair value | (233,000,000) | (455,000,000) |
Commodity Contract Derivatives | ||
Derivative | ||
Fair value | $ 145,000,000 | $ 247,000,000 |
Natural Gas Contract Derivatives | ||
Derivative | ||
Number of contracts | 44 | 40 |
Notional amount | 296,000,000 | 263,000,000 |
Fair value | $ 145,000,000 | $ 247,000,000 |
Commodity Contract under FHP | ||
Derivative | ||
Number of contracts | 225 | 0 |
Notional amount | 256 | |
Fair value | $ 115,000,000 | $ 0 |
Accounts payable and accrued liabilities | ||
Derivative | ||
Fair value | 12,000,000 | 7,000,000 |
Interest rate swaps | 54,000,000 | 115,000,000 |
Accounts payable and accrued liabilities | Interest Rate Swap | ||
Derivative | ||
Fair value | (3,000,000) | (22,000,000) |
Accounts payable and accrued liabilities | Commodity Contract Derivatives | ||
Derivative | ||
Fair value | (3,000,000) | |
Accounts payable and accrued liabilities | Commodity Contract under FHP | ||
Derivative | ||
Fair value | (8,000,000) | |
Other Regulatory Assets (Liabilities) | Interest Rate Swap | ||
Derivative | ||
Unrealized gains/losses on derivatives | (103,000,000) | (115,000,000) |
Other Regulatory Assets (Liabilities) | Commodity Contract under FHP | ||
Derivative | ||
Unrealized gains/losses on derivatives | $ 47,000,000 | $ 0 |
Risk Management Activities an_5
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Mark-to-Market Values of TVA Derivatives (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | $ 53 | |
Derivative, Notional Amount | 1,500 | |
Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | 12 | $ 7 |
250 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (130) | (36) |
250 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (123) | (32) |
250 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (7) | (4) |
150 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (110) | (47) |
150 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (105) | (44) |
150 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (5) | (3) |
$1.0 billion notional interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | (672) | (1,182) |
$1.0 billion notional interest rate swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (630) | (1,101) |
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (9) | (44) |
$1.0 billion notional interest rate swap | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (33) | (37) |
$476 million notional interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | (233) | (455) |
$476 million notional interest rate swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (221) | (423) |
$476 million notional interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (3) | (22) |
$476 million notional interest rate swap | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (9) | (10) |
$42 million notional interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | 0 | (2) |
$42 million notional interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | |
Commodity contract derivatives | ||
Derivatives, Fair Value | ||
Fair value | 145 | 247 |
Commodity contract derivatives | Other long-term assets | ||
Derivatives, Fair Value | ||
Fair value | 40 | |
Commodity contract derivatives | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 172 | 210 |
Commodity contract derivatives | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (3) | |
$28 million notional | ||
Derivatives, Fair Value | ||
Derivative, Notional Amount | 28 | |
$14 million notional | ||
Derivatives, Fair Value | ||
Derivative, Notional Amount | 14 | |
Commodity Contract under FHP | ||
Derivatives, Fair Value | ||
Fair value | 115 | $ 0 |
Commodity Contract under FHP | Other long-term assets | ||
Derivatives, Fair Value | ||
Fair value | 68 | |
Commodity Contract under FHP | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 54 | |
Commodity Contract under FHP | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (8) | |
Commodity Contract under FHP | Accounts Receivable [Member] | ||
Derivatives, Fair Value | ||
Fair value | 1 | |
Commodity Contract not under FHP | Other long-term assets | ||
Derivatives, Fair Value | ||
Fair value | 34 | |
Commodity Contract not under FHP | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | |
Commodity Contract not under FHP | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 118 | |
Commodity Contract not under FHP | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | $ (6) |
Risk Management Activities an_6
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Currency Swaps Outstanding (Details) £ in Millions | 12 Months Ended |
Sep. 30, 2022 GBP (£) | |
2001 Currency Swap Contract | |
Derivative | |
Effective Date of Currency Swap Contract | 2001 |
Associated TVA bond issues currency exposure | £ 250 |
Expiration Date of Swap | 2032 |
Overall effective cost to TVA | 6.59% |
2003 Currency Swap Contract | |
Derivative | |
Effective Date of Currency Swap Contract | 2003 |
Associated TVA bond issues currency exposure | £ 150 |
Expiration Date of Swap | 2043 |
Overall effective cost to TVA | 4.96% |
Risk Management Activities an_7
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Counterparty Credit Risk (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 USD ($) Customers | Sep. 30, 2021 USD ($) | |
Derivative | ||
Receivables from power sales | $ | $ 1,899 | $ 1,480 |
Credit of Customers | ||
Derivative | ||
Number of customers that represent the percent of sales | Customers | 2 |
Risk Management Activities an_8
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Letter of Credit | ||
Offsetting Assets [Line Items] | ||
Amount of letters of credit outstanding | $ 704 | $ 1,200 |
Commodity Contract under FHP | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, subject to master netting or similar arrangements | $ 168 |
Risk Management Activities an_9
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Offsetting Liabilities [Line Items] | |||
Gross Amounts of Recognized Liabilities, subject to master netting or similar arrangements | $ 53 | ||
Gross Amounts Offset in the Balance Sheet | 45 | ||
Total derivatives not subject to master netting or similar arrangement | 7 | $ 3 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 1,160 | 1,725 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 275 | 250 | |
Commodity contract derivatives | 152 | 250 | |
Derivative Liability, Fair Value of Collateral | 68 | ||
Currency Swap | |||
Offsetting Liabilities [Line Items] | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 240 | 83 | [1] |
Interest Rate Contract | |||
Offsetting Liabilities [Line Items] | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 905 | 1,639 | [1] |
Other Contract | |||
Offsetting Liabilities [Line Items] | |||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 250 | ||
Commodity Contract under FHP | |||
Offsetting Liabilities [Line Items] | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 8 | 0 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 123 | 0 | |
Letter of Credit | |||
Offsetting Liabilities [Line Items] | |||
Amount of letters of credit outstanding | $ 704 | $ 1,200 | |
[1]Letters of credit of approximately $704 million and $1.2 billion were posted as collateral at September 30, 2022 and 2021, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative. |
Risk Management Activities a_10
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Other Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 4 | $ 2 |
Fair Value, Inputs, Level 2 | ||
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 4 | $ 2 |
Risk Management Activities a_11
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Derivative | ||
Likely collateral obligation increase if downgraded | $ 22 | |
Collateralized Securities [Member] | ||
Derivative | ||
Aggregate fair value of derivative instruments with credit-risk related contingent features that were in a liability position | 1,200 | |
Collateral obligations | 602 | |
Letter of Credit | ||
Derivative | ||
Amount of letters of credit outstanding | $ 704 | $ 1,200 |
Risk Management Activities a_12
Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details) | 12 Months Ended |
Sep. 30, 2022 | |
Derivative | |
Two Largest Customer Percentage of Total Operating Revenue | 17% |
Moody's, A1 Rating | |
Derivative | |
Banking Counterparties Credit Rating | A2 |
Natural Gas Banking Counterparties Credit Rating | A1 |
Moody's, B1 Rating | |
Derivative | |
Natural Gas Banking Counterparties Credit Rating | B1 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 USD ($) Units | Sep. 30, 2021 USD ($) | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Long-term Investments | $ 3,671 | $ 4,053 |
Balance in the NDT | 2,500 | |
Balance in the ART | $ 1,100 | |
Period of time where the investor contributes capital to an investment in a private partnership - minimum | Units | 3 | |
Period of time where the investor contributes capital to an investment in a private partnership - maximum | Units | 4 | |
Minimum investment period | 10 years | |
Fair value of gross plan assets | $ 8,566 | 9,749 |
Number of readily available quoted exchange prices for the investments | 0 | |
LTDCP | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | $ (5) | 1 |
SERP | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | (19) | 7 |
ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | (190) | 145 |
NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | (396) | $ 279 |
Equity Funds [Member] | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 187 | |
Real Estate Funds [Member] | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 128 | |
Credit [Member] | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 57 | |
Defensive growth assets | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 104 | |
Private real estate funds | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Fair value of gross plan assets | 75 | |
Private Credit [Member] | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | $ 32 |
Fair Value Measurements - Nonpe
Fair Value Measurements - Nonperformance Risk (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Nonperformance Risk | |
Derivative credit valuation adjustment, assets | $ (2) |
Derivative credit valuation adjustment, liabilities | $ 2 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | |
Investments | |||
Government debt securities | $ 394 | $ 597 | |
Corporate debt securities | 283 | 411 | |
Mortgage and asset-backed securities | 52 | 63 | |
Institutional mutual funds | 242 | 225 | |
Forward debt securities contracts - asset | 4 | 2 | |
Private equity funds measured at net asset value | 487 | 357 | |
Private real estate measured at net asset value | 369 | 272 | |
Private credit measured at net asset value | 103 | 71 | |
Commingled funds measured at net asset value | 1,203 | 1,421 | |
Total investments | 3,671 | 4,053 | |
Commodity contract derivatives | 152 | 250 | |
Total | 3,946 | 4,303 | |
Liabilities | |||
Currency swaps | 240 | 83 | [1] |
Interest rate swaps | 905 | 1,639 | |
Commodity contract derivatives | 7 | 3 | |
Total | 1,160 | 1,725 | |
Equity Securities, FV-NI, Noncurrent | 534 | 634 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 1,160 | 1,725 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 275 | 250 | |
Commodity Contract under FHP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | 115 | 0 | |
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 8 | 0 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 123 | 0 | |
Fair Value, Inputs, Level 1 | |||
Investments | |||
Government debt securities | 358 | 573 | |
Corporate debt securities | 0 | 0 | |
Mortgage and asset-backed securities | 0 | 0 | |
Institutional mutual funds | 242 | 225 | |
Forward debt securities contracts - asset | 0 | 0 | |
Private equity funds measured at net asset value | 0 | 0 | |
Private real estate measured at net asset value | 0 | 0 | |
Private credit measured at net asset value | 0 | 0 | |
Commingled funds measured at net asset value | 0 | 0 | |
Total investments | 1,134 | 1,432 | |
Commodity contract derivatives | 0 | 0 | |
Total | 1,134 | 1,432 | |
Liabilities | |||
Currency swaps | 0 | 0 | |
Interest rate swaps | 0 | 0 | |
Commodity contract derivatives | 0 | 0 | |
Total | 0 | 0 | |
Equity Securities, FV-NI, Noncurrent | 534 | 634 | |
Fair Value, Inputs, Level 1 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 0 | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 0 | ||
Fair Value, Inputs, Level 2 | |||
Investments | |||
Government debt securities | 36 | 24 | |
Corporate debt securities | 283 | 411 | |
Mortgage and asset-backed securities | 52 | 63 | |
Institutional mutual funds | 0 | 0 | |
Forward debt securities contracts - asset | 4 | 2 | |
Private equity funds measured at net asset value | 0 | 0 | |
Private real estate measured at net asset value | 0 | 0 | |
Private credit measured at net asset value | 0 | 0 | |
Commingled funds measured at net asset value | 0 | 0 | |
Total investments | 375 | 500 | |
Commodity contract derivatives | 152 | 250 | |
Total | 650 | 750 | |
Liabilities | |||
Currency swaps | 240 | 83 | |
Interest rate swaps | 905 | 1,639 | |
Commodity contract derivatives | 7 | 3 | |
Total | 1,160 | 1,725 | |
Equity Securities, FV-NI, Noncurrent | 0 | 0 | |
Fair Value, Inputs, Level 2 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 8 | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 123 | ||
Fair Value, Inputs, Level 3 | |||
Investments | |||
Government debt securities | 0 | 0 | |
Corporate debt securities | 0 | 0 | |
Mortgage and asset-backed securities | 0 | 0 | |
Institutional mutual funds | 0 | 0 | |
Forward debt securities contracts - asset | 0 | 0 | |
Private equity funds measured at net asset value | 0 | 0 | |
Private real estate measured at net asset value | 0 | 0 | |
Private credit measured at net asset value | 0 | 0 | |
Commingled funds measured at net asset value | 0 | 0 | |
Total investments | 0 | 0 | |
Commodity contract derivatives | 0 | 0 | |
Total | 0 | 0 | |
Liabilities | |||
Currency swaps | 0 | 0 | |
Interest rate swaps | 0 | 0 | |
Commodity contract derivatives | 0 | 0 | |
Total | 0 | 0 | |
Equity Securities, FV-NI, Noncurrent | 0 | $ 0 | |
Fair Value, Inputs, Level 3 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 0 | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | $ 0 | ||
[1]See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . |
Fair Value Measurements - Fai_2
Fair Value Measurements - Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Fair Value Measurements | ||
Commodity contract derivatives, assets | $ 152 | $ 250 |
Commodity contract derivatives, liabilities | 7 | 3 |
Fair Value, Inputs, Level 3 | ||
Fair Value Measurements | ||
Commodity contract derivatives, assets | 0 | 0 |
Commodity contract derivatives, liabilities | $ 0 | $ 0 |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Values of Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Estimated Values of Financial Instruments (Level 2 Valuation) | ||
EnergyRight receivables (including current portion) | $ 62 | $ 71 |
Financing Receivable, after Allowance for Credit Loss | 96 | 94 |
EnergyRight® financing obligations (including current portion) | 81 | 92 |
Unfunded Loan Commitments | 0 | 3 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 22 | 30 |
Long-term outstanding power bonds (including current maturities), net | 18,070 | 24,309 |
Long-term debt of variable interest entities (including current maturities) | 989 | 1,307 |
Portion at Other than Fair Value Measurement [Member] | ||
Estimated Values of Financial Instruments (Level 2 Valuation) | ||
EnergyRight receivables (including current portion) | 62 | 72 |
Financing Receivable, after Allowance for Credit Loss | 105 | 99 |
EnergyRight® financing obligations (including current portion) | 72 | 82 |
Unfunded Loan Commitments | 0 | 0 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 20 | 23 |
Long-term outstanding power bonds (including current maturities), net | 17,856 | 18,485 |
Long-term debt of variable interest entities (including current maturities) | $ 1,007 | $ 1,049 |
Proprietary Capital (Details)
Proprietary Capital (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Appropriation Investment | |||
Amount of appropriation investment that was repaid | $ 1,000 | ||
Balance at beginning of year | 14,465 | $ 12,932 | $ 11,625 |
Net income (loss) | 1,108 | 1,512 | 1,352 |
Return on power program appropriation investment | (4) | (4) | (6) |
Balance at end of year | 15,505 | 14,465 | $ 12,932 |
Net proprietary capital at September 30 | $ 15,505 | $ 14,465 | |
Computed average interest rate payable | 1.47% | 1.64% | 2.44% |
Power Program Appropriation Investment | |||
Appropriation Investment | |||
Balance at beginning of year | $ 258 | $ 258 | $ 258 |
Net income (loss) | 0 | 0 | 0 |
Return on power program appropriation investment | 0 | 0 | 0 |
Balance at end of year | 258 | 258 | 258 |
New Accounting Standard - CECL | 0 | ||
Power Program Retained Earnings | |||
Appropriation Investment | |||
Balance at beginning of year | 13,689 | 12,177 | 10,823 |
Net income (loss) | 1,115 | 1,520 | 1,360 |
Return on power program appropriation investment | (4) | (4) | (6) |
Balance at end of year | 14,800 | 13,689 | 12,177 |
New Accounting Standard - CECL | (4) | ||
Nonpower Programs Appropriation Investment, Net | |||
Appropriation Investment | |||
Balance at beginning of year | 540 | 548 | 556 |
Net income (loss) | (7) | (8) | (8) |
Return on power program appropriation investment | 0 | 0 | 0 |
Balance at end of year | 533 | 540 | 548 |
New Accounting Standard - CECL | 0 | ||
Affiliated Entity | |||
Appropriation Investment | |||
Return on power program appropriation investment | $ (4) | $ (4) | $ (6) |
Proprietary Capital - Accumulat
Proprietary Capital - Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2022 USD ($) | |
Accumulated Other Comprehensive Income (Loss) | |
Reclassification to earnings from cash flow hedges in the next twelve months | $ (29) |
Other Income (Expense), Net O_2
Other Income (Expense), Net Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Income (Expense), Net | |||
Other income | $ 0 | $ 28 | $ 0 |
Interest income | 15 | 12 | 18 |
External services | 16 | 13 | 12 |
Gain (Loss) on Investments | (17) | 16 | 9 |
Miscellaneous | (7) | 0 | (3) |
Other income (expense), net | $ 7 | $ 13 | $ 36 |
Benefit Plans Components of Ben
Benefit Plans Components of Benefit Plans (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure | ||||
Fixed and variable fund annual maximum contribution | $ 10,000 | |||
Defined contribution plan contribution amount | $ 97,000,000 | $ 92,000,000 | $ 88,000,000 | |
Minimum | ||||
Defined Benefit Plan Disclosure | ||||
Threshold for Deferral of Actuarial Gain/Loss Under Corridor Approach | 10% | |||
Scenario, Forecast | ||||
Defined Benefit Plan Disclosure | ||||
Defined contribution plan contribution amount | $ 101,000,000 |
Benefit Plans Obligations and F
Benefit Plans Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | ||
Pension Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation | $ 13,348 | $ 13,675 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 10,536 | 13,348 | ||
Service cost | 53 | 57 | $ 55 | |
Plan participants' contributions | 5 | 5 | ||
Change in Plan Assets due to Collections | 0 | 0 | ||
Collections | [1] | 0 | 0 | |
Actuarial loss (gain) | (2,509) | (25) | ||
Net transfers from variable fund/401(k) plan | 11 | 2 | ||
Expenses paid | (6) | (6) | ||
Benefits paid | 744 | 728 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 8,094 | 9,110 | ||
Change in plan assets | ||||
Fair value of net plan assets | 9,110 | 7,959 | ||
Actual return on plan assets | (590) | 1,572 | ||
Employer contributions | 308 | 306 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Funded status | $ (2,442) | $ (4,238) | ||
Discount rate | 5.60% | 2.90% | 2.75% | |
Amount of defined benefit plan actuarial gain (loss) from discount rate change | $ (3,500) | $ (248) | ||
Amount of defined benefit plan actuarial gain (loss) from change in mortality assumption | (527) | (28) | ||
Amount of defined benefit plan actuarial gain (loss) from change in demograhic and plan experience | 78 | 104 | ||
Amount of defined benefit plan actuarial gain (loss) from assumption change in elections | 411 | 91 | ||
Other Post-retirement Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation | 388 | 498 | ||
Postconfirmation, Other Postretirement Obligations | 498 | 544 | ||
Service cost | 17 | 18 | $ 16 | |
Plan participants' contributions | 0 | 0 | ||
Change in Plan Assets due to Collections | 15 | 17 | ||
Collections | [1] | 15 | 17 | |
Actuarial loss (gain) | (114) | (53) | ||
Net transfers from variable fund/401(k) plan | 0 | 0 | ||
Expenses paid | 0 | 0 | ||
Benefits paid | 43 | 44 | ||
Change in plan assets | ||||
Fair value of net plan assets | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 28 | 27 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Funded status | $ (388) | $ (498) | ||
Discount rate | 5.65% | 3.05% | ||
Amount of defined benefit plan actuarial gain (loss) from updated capita claims costs and retiree contributions | $ (47) | |||
Amount of change related to actual | 1 | |||
Amount of defined benefit plan actuarial gain (loss) from change in demograhic and plan experience | $ 7 | |||
[1]Collections include retiree contributions as well as provider discounts and rebates. |
Benefit Plans Amounts Recognize
Benefit Plans Amounts Recognized on TVA's Consolidated Balance Sheets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure | ||||
Regulatory assets | $ (6,134) | $ (7,956) | ||
Non-current regulatory liabilities | (172) | (40) | ||
Accounts payable and accrued liabilities | (2,466) | (2,215) | ||
Pension and post-retirement benefit obligations | (3,072) | (5,045) | ||
Postemployment benefits liability, noncurrent | 299 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Amount capitalized due to actions of regulator | 77 | 91 | ||
Regulatory assets | (1,839) | (3,636) | ||
Accounts payable and accrued liabilities | (6) | (7) | ||
Pension and post-retirement benefit obligations | [1] | (2,436) | (4,231) | |
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Amount capitalized due to actions of regulator | 0 | 0 | ||
Regulatory assets | (70) | (32) | ||
Non-current regulatory liabilities | (70) | |||
Accounts payable and accrued liabilities | (22) | (24) | ||
Pension and post-retirement benefit obligations | [1] | (366) | (474) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | ||||
Defined Benefit Plan Disclosure | ||||
Postemployment benefits liability, noncurrent | $ 270 | $ 340 | $ 390 | |
[1]The table above excludes $270 million and $340 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2022 and 2021, respectively. |
Benefit Plans Postretirement Be
Benefit Plans Postretirement Benefit Costs Deferred as Regulatory Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure | ||
Regulatory assets | $ (6,134) | $ (7,956) |
Non-current regulatory liabilities | 172 | 40 |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Unrecognized prior service cost (credit) | (424) | (517) |
Unrecognized net loss | 2,186 | 4,062 |
Amount capitalized due to actions of regulator | (77) | (91) |
Regulatory assets | (1,839) | (3,636) |
Other Post-retirement Benefits | ||
Defined Benefit Plan Disclosure | ||
Unrecognized prior service cost (credit) | (76) | (93) |
Unrecognized net loss | 6 | 125 |
Amount capitalized due to actions of regulator | 0 | 0 |
Regulatory assets | (70) | $ (32) |
Non-current regulatory liabilities | $ 70 |
Benefit Plans Projected Benefit
Benefit Plans Projected Benefit Obligations and Accumulated Benefit Obligations in Exess of Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Defined Benefit Plan Disclosure | ||
Accumulated benefit obligation | $ 10,508 | $ 13,299 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 8,094 | 9,110 |
Fair value of net plan assets | $ 9,110 | $ 7,959 |
Benefit Plans Components of Net
Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | $ 53 | $ 57 | $ 55 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditInterestCostStatementOfIncome | 378 | 368 | 415 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditExpectedReturnLossStatementOfIncome | (435) | (493) | (488) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfPriorServiceCostCreditStatementOfIncome | (93) | (97) | (97) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfGainLossStatementOfIncome | 392 | 452 | 436 |
Net periodic benefit cost as acutarially determined | 295 | 287 | 321 |
Amount expensed (capitalized) due to actions of regulator | (13) | (19) | 15 |
Total net period benefit cost | 308 | 306 | 306 |
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | 17 | 18 | 16 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditInterestCostStatementOfIncome | 15 | 16 | 16 |
Expected return on plan assets | 0 | 0 | 0 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfPriorServiceCostCreditStatementOfIncome | (17) | (18) | (24) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfGainLossStatementOfIncome | 5 | (11) | (10) |
Net periodic benefit cost as acutarially determined | 20 | 27 | 18 |
Amount expensed (capitalized) due to actions of regulator | 0 | 0 | 0 |
Total net period benefit cost | $ 20 | $ 27 | $ 18 |
Benefit Plans Actuarial Assumpt
Benefit Plans Actuarial Assumptions (Details) - USD ($) | 12 Months Ended | ||||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2024 | Sep. 30, 2023 | |
Defined Benefit Plan Disclosure | |||||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 0.25% | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Discount rate | 2.90% | 2.75% | 3.20% | ||
Discount rate | 5.60% | 2.90% | 2.75% | ||
Rate of compensation increase | 3.32% | 3.37% | |||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.14% | 5.15% | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.14% | 5.15% | 5.15% | ||
Expected return on plan assets | 5.75% | 6.75% | 6.75% | ||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 3.37% | 3.43% | |||
COLA percentage increase (decrease) | 6% | ||||
Actual Return on Plan Assets | (6.64%) | 20.30% | 5.11% | ||
Other Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Discount rate | 3.05% | 3.05% | 3.30% | ||
Discount rate | 5.65% | 3.05% | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% | ||
Minimum | |||||
Defined Benefit Plan Disclosure | |||||
Rate of compensation increase | 2.50% | ||||
Maximum | |||||
Defined Benefit Plan Disclosure | |||||
Rate of compensation increase | 14% | ||||
Scenario, Forecast | Pension Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Defined Benefit Plan, Cost of Living Adjustment Assumption Next Fiscal Year | 315% | 6% | |||
Post-Medicare Eligible [Member] [Member] | Other Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Current health care cost trend rate | 0% | 0% | 0% | ||
Ultimate health care cost trend rate | 4% | 4% | 4% | ||
Year health care cost ultimate trend rate is reached for Net Benefit Cost Assumption | 2024 | 2024 | 2023 | ||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2026 | 2024 | |||
Pre-Medicare Eligible per Capita Claim Costs | Other Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Current health care cost trend rate | 6.25% | 6.50% | 6.75% | ||
Ultimate health care cost trend rate | 5% | 5% | 5% | ||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2031 | 2027 | 2027 | ||
Initial health care cost trend rate | $ 0.0700 | $ 0.0625 | |||
Pre-Medicare Eligible per Capita Claim Costs | Pension Costs [Member] | |||||
Defined Benefit Plan Disclosure | |||||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2027 | ||||
Pre-Medicare Eligible per Capita Contributions | Other Post-retirement Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Current health care cost trend rate | 8.51% | 11.93% | 6.75% | ||
Ultimate health care cost trend rate | 5% | 5% | 5% | ||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2022 | 2027 | 2027 | ||
Initial health care cost trend rate | $ 0.0500 | $ 0.0851 | |||
Pre-Medicare Eligible per Capita Contributions | Pension Costs [Member] | |||||
Defined Benefit Plan Disclosure | |||||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2027 |
Benefit Plans Sensitivity to Ce
Benefit Plans Sensitivity to Certain Changes in Pension Assumptions (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 0.25% | ||
Discount rate | |||
Defined Benefit Plan Disclosure | |||
Change in Assumption | (0.25%) | ||
Impact on Pension Cost | $ 16,000,000 | ||
Impact on Projected Benefit Obligation | $ 257,000,000 | ||
Rate of return on plan assets | |||
Defined Benefit Plan Disclosure | |||
Change in Assumption | (0.25%) | ||
Impact on Pension Cost | $ 19,000,000 | ||
Cost of Living Adjustments [Domain] | |||
Defined Benefit Plan Disclosure | |||
Change in Assumption | 0.25% | ||
Impact on Pension Cost | $ 29,000,000 | ||
Impact on Projected Benefit Obligation | $ 179,000,000 | ||
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% |
Discount rate | 5.65% | 3.05% | |
Actuarial assumption COLA | $ 0.035 | $ 0.0113 | $ 0.0154 |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% |
COLA percentage increase (decrease) | 6% | ||
Discount rate | 5.60% | 2.90% | 2.75% |
Benefit Plans Asset Holdings (D
Benefit Plans Asset Holdings (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure | |||
Target Allocation | 100% | ||
Plan Asset Allocations | 100% | 100% | |
Growth Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 17% | ||
Plan Asset Allocations | 20% | 18% | |
Defensive growth assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 38% | ||
Plan Asset Allocations | 34% | 35% | |
Defensive Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 20% | ||
Plan Asset Allocations | 18% | 20% | |
Inflation-sensitive Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 25% | ||
Plan Asset Allocations | 28% | 27% | |
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Actuarial assumption COLA | $ 0.035 | $ 0.0113 | $ 0.0154 |
Benefit Plans Fair Value Measur
Benefit Plans Fair Value Measurements (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Years | Sep. 30, 2021 USD ($) | Oct. 01, 2019 USD ($) | |
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | $ 8,566 | $ 9,749 | |
Derivative liabilities | 176 | 136 | |
Net payables | 100 | 263 | |
Payables for collateral on loaned securities | $ 196 | 240 | |
Voting percentage required to desolve partnership in private equity | 80% | ||
Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | $ 1,916 | 2,898 | |
Derivative liabilities | 10 | 4 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2,328 | 2,755 | |
Derivative liabilities | 166 | 132 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 62 | 74 | $ 94 |
Derivative liabilities | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 709 | 992 | |
Equity securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 707 | 990 | |
Equity securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Equity securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 2 | |
Preferred securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 6 | 9 | |
Preferred securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1 | 2 | |
Preferred securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 5 | 6 | |
Preferred securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 1 | |
Corporate debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1,087 | 1,360 | |
Corporate debt securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Corporate debt securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1,087 | 1,359 | |
Corporate debt securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 1 | |
Residential mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 293 | 275 | |
Residential mortgage-backed securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Residential mortgage-backed securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 289 | 267 | |
Residential mortgage-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 4 | 8 | |
Debt securities issued by U.S. Treasury and other U.S. government agencies | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 616 | 741 | |
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 616 | 741 | |
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Asset-backed securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 176 | 151 | |
Asset-backed securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Asset-backed securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 136 | 110 | |
Asset-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 40 | 41 | |
Debt securities issued by state/local governments | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 23 | 28 | |
Debt securities issued by state/local governments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt securities issued by state/local governments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 23 | 28 | |
Debt securities issued by state/local governments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt securities issued by foreign governments | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 130 | 204 | |
Debt securities issued by foreign governments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt securities issued by foreign governments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 130 | 200 | |
Debt securities issued by foreign governments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 4 | |
Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 161 | 168 | |
Commercial mortgage-backed securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Commercial mortgage-backed securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 145 | 151 | |
Commercial mortgage-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 16 | 17 | |
Equity security commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 436 | 619 | |
Equity security commingled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Equity security commingled funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Equity security commingled funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt security commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 657 | 881 | |
Debt security commingled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt security commingled funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Debt security commingled funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Blended security commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 111 | 105 | |
Blended security commingled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Blended security commingled funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Blended security commingled funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Institutional mutual funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 454 | 841 | |
Institutional mutual funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 454 | 841 | |
Institutional mutual funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Institutional mutual funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Cash equivalents and other short-term investments | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 431 | 710 | |
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 133 | 323 | |
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 298 | 387 | |
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private Credit [Member] | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 522 | 324 | |
Private Credit [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private Credit [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private Credit [Member] | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private equity funds measured at net asset value | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1,454 | 1,333 | |
Private equity funds measured at net asset value | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private equity funds measured at net asset value | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private equity funds measured at net asset value | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private real estate funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1,080 | 760 | |
Private real estate funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private real estate funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Private real estate funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Securities lending commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 196 | 240 | |
Securities lending commingled funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Securities lending commingled funds | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 196 | 240 | |
Securities lending commingled funds | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Futures | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 5 | 1 | |
Derivative liabilities | 10 | 4 | |
Futures | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 5 | 1 | |
Derivative liabilities | 10 | 4 | |
Futures | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Futures | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Purchased options | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 17 | 6 | |
Purchased options | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Purchased options | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 17 | 6 | |
Purchased options | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Interest Rate Swap | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 54 | 23 | |
Interest Rate Swap | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 0 | 0 | |
Interest Rate Swap | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 54 | 23 | |
Interest Rate Swap | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 0 | 0 | |
Foreign currency forward | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 1 | |
Derivative liabilities | 1 | 1 | |
Foreign currency forward | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Foreign currency forward | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 1 | |
Derivative liabilities | 1 | 1 | |
Foreign currency forward | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Securities Sold under Agreements to Repurchase [Member] | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 111 | 108 | |
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 0 | 0 | |
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 111 | 108 | |
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | $ 0 | $ 0 | |
Minimum | |||
Defined Benefit Plan Disclosure | |||
Number of years partnerships in private equity generally continue | Years | 10 | ||
Number of one year extensions for partnerships in private equity | Years | 2 | ||
Maximum | |||
Defined Benefit Plan Disclosure | |||
Number of years partnerships in private equity generally continue | Years | 14 | ||
Number of one year extensions for partnerships in private equity | Years | 3 |
Benefit Plans Fair Value Meas_2
Benefit Plans Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Oct. 01, 2019 | |
Defined Benefit Plan Disclosure | |||
Net payables | $ 100 | $ 263 | |
Payables for collateral on loaned securities | 196 | 240 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of gross plan assets | 8,566 | 9,749 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of gross plan assets | 62 | 74 | $ 94 |
Net realized/unrealized gains | (4) | (48) | |
Purchases, sales, issuances, and settlements, net | 2 | 32 | |
Transfers in and/or out of Level 3 | (10) | $ (4) | |
Fair value of net plan assets | $ 62 |
Benefit Plans Estimated Future
Benefit Plans Estimated Future Benefit Payments (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 793 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 808 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 813 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 810 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 807 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 3,932 |
Other Post-retirement Benefits | |
Defined Benefit Plan Disclosure | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 22 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 21 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 21 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 21 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 22 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 126 |
Benefit Plans Contributions (De
Benefit Plans Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure | ||||
Defined contribution plan contribution amount | $ 97 | $ 92 | $ 88 | |
Other postretirement benefit contributions | 28 | 25 | ||
Contribution related to TVARS case | 4 | 5 | ||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Related to SERP | 8 | 6 | ||
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | 28 | 27 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | 308 | $ 306 | ||
Other Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | 300 | |||
Minimum | Other Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | $ 300 | |||
Scenario, Forecast | ||||
Defined Benefit Plan Disclosure | ||||
Defined contribution plan contribution amount | $ 101 | |||
Scenario, Forecast | Other Pension Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | $ 300 |
Benefit Plans Other Postemploym
Benefit Plans Other Postemployment Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other Post-Employment Benefits | |||
Discount rate | 3.83% | 1.52% | 0.69% |
Period expense | $ (40) | $ (20) | $ (45) |
Postemployment benefits liability, noncurrent | 299 | ||
Accounts Payable and Accrued Liabilities | |||
Other Post-Employment Benefits | |||
Postemployment Benefits Liability, Current | 29 | 0 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | |||
Other Post-Employment Benefits | |||
Postemployment benefits liability, noncurrent | $ 270 | $ 340 | $ 390 |
Commitments and Contingencies -
Commitments and Contingencies - Table (Details) $ in Millions | Sep. 30, 2022 USD ($) megawatts | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Obligations | ||||
Megawatts provided under transmission obligations | megawatts | 2,450 | |||
Accrual for Environmental Loss Contingencies, Gross | $ 17 | $ 18 | ||
Estimated future decommissioning cost | [1] | 7,162 | 7,002 | $ 6,785 |
CT and QTE outstanding leaseback obligation | 25 | |||
Nuclear | ||||
Obligations | ||||
Estimated future decommissioning cost | $ 3,643 | $ 3,428 | $ 3,278 | |
[1] (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Commitments and Contingencies_2
Commitments and Contingencies - Membership Interests of VIE Subject to Mandatory Redemption (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Portion at Other than Fair Value Measurement [Member] | ||
Long-term Purchase Commitment [Line Items] | ||
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | $ 20 | $ 23 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 22 | $ 30 |
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months | 2 | |
Minimum payments on membership interests subject to mandatory redemption, due in year two | 1 | |
Minimum payments on membership interests subject to mandatory redemption, due in year three | 1 | |
Minimum payments on membership interests subject to mandatory redemption, due in year four | 1 | |
Minimum payments on membership interests subject to mandatory redemption, due in year five | $ 1 |
Commitments and Contingencies_3
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Leases | ||||
CT and QTE outstanding leaseback obligation | $ 25 | |||
Estimated future decommissioning cost | [1] | $ 7,162 | $ 7,002 | $ 6,785 |
[1] (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Commitments and Contingencies_4
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended | ||||||||
Sep. 30, 2022 USD ($) Megawatts megawatts | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2028 USD ($) | Sep. 30, 2027 USD ($) | Sep. 30, 2026 USD ($) | Sep. 30, 2025 USD ($) | Sep. 30, 2024 USD ($) | Sep. 30, 2023 USD ($) | |
Obligations | |||||||||
Megawatts provided under power purchase obligations | Megawatts | 3,949 | ||||||||
Remaining terms of the agreements, high end of range | 13 years | ||||||||
Megawatts provided under transmission obligations | megawatts | 2,450 | ||||||||
Power purchased under agreement | $ | $ 318 | $ 202 | $ 202 | ||||||
2019 | $ | $ 0 | ||||||||
Scenario, Forecast | |||||||||
Obligations | |||||||||
Purchase Obligation | $ | $ 766 | $ 145 | $ 145 | $ 145 | $ 145 | $ 146 | |||
Purchase Agreements Required by Federal Law | |||||||||
Obligations | |||||||||
Megawatts provided under power purchase obligations | Megawatts | 278 | ||||||||
Number of generation sources under PPAs | Megawatts | 642 |
Commitments and Contingencies_5
Commitments and Contingencies - Contingencies (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2022 USD ($) Insurance_layers reactors Units Procedures | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | ||
Contingencies | ||||
Loss Contingency, Damages Sought, Value | $ 30 | |||
Nuclear liability insurance | 450 | |||
Assessment from licensees for each licensed reactor | $ 138 | |||
Number of licensed reactors in US | reactors | 96 | |||
Nuclear accident assessment limitation per year per unit | $ 20 | |||
Number of licensed nuclear units | Units | 7 | |||
Maximum assessment per nuclear incident | $ 963 | |||
Total amount of protection available | $ 13,700 | |||
Number of layers until the U.S. Congress is required to take action | Insurance_layers | 2 | |||
Amount of insurance available for loss at any one site | $ 2,100 | |||
Maximum amount of retrospective premiums | 115 | |||
Maximum idemnity if a covered accident tasks or keeps a nuclear unit offline | 490 | |||
Maximum amount of retrospective premiums | 44 | |||
Estimated future decommissioning cost | [1] | $ 7,162 | $ 7,002 | $ 6,785 |
Number of procedures for determining estimates for the costs of nuclear decommissioning | Procedures | 2 | |||
Amount spent to reduce emissions since 1970 | $ 6,800 | |||
Amount spent to reduce emissions | 16 | 17 | 19 | |
Possible additional future costs for compliance with Clean Air Act requirements | 128 | |||
Possible additional future costs for compliance with CCR requirements | 900 | |||
Possible additional future costs for compliance with Clean Water requirements. | 111 | |||
Estimated liability for cleanup and similar environmental work on a non-discounted basis | 17 | 18 | ||
Amount of insurance available for loss at any one site, max | 2,800 | |||
Nuclear | ||||
Contingencies | ||||
Estimated future decommissioning cost | 3,643 | 3,428 | 3,278 | |
Non-nuclear | ||||
Contingencies | ||||
Estimated future decommissioning cost | $ 3,519 | $ 3,574 | $ 3,507 | |
[1] (1) Includes $275 million a nd $266 million at September 30, 2022 and 2021, respectively, in Current liabilities. (2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of $20 million. |
Commitments and Contingencies_6
Commitments and Contingencies - Legal Proceedings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Legal Proceedings | ||
Possible additional future costs for compliance with CCR requirements | $ 900 | |
Contribution related to TVARS case | 4 | $ 5 |
Possible additional future costs for compliance with Clean Water requirements. | 111 | |
Amount remaining to be spent under environmental agreements | 9 | |
Loss Contingency, Damages Sought, Value | 30 | |
Down payment from Nuclear Development | 22 | |
Compensated costs to Nuclear Development | 1 | |
General | ||
Legal Proceedings | ||
Legal loss contingency accrual | 11 | |
Environmental Agreements | ||
Legal Proceedings | ||
Amount to be invested in certain environmental projects | 290 | |
Amount invested in certain environmental projects | 282 | |
Other long-term liabilities | General | ||
Legal Proceedings | ||
Legal loss contingency accrual | 10 | |
Accounts payable and accrued liabilities | General | ||
Legal Proceedings | ||
Legal loss contingency accrual | $ 1 |
Commitments and Contingencies U
Commitments and Contingencies Unfunded loan commitments (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Other commitments - unfunded loan commitments [Abstract] | |
2019 | $ 0 |
2020 | $ 0 |
Related Parties Related Parti_2
Related Parties Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Related Parties | |||
Revenue from sales of electricity | $ 12,540 | $ 10,503 | $ 10,249 |
Other income | 0 | (28) | 0 |
Long-term Investments | 3,671 | 4,053 | |
Return on power program appropriation investment | (4) | (4) | (6) |
Related Party Transactions | |||
Related Parties | |||
Revenue from sales of electricity | 134 | 109 | 105 |
Other income | 296 | 280 | 260 |
Operating expenses | 228 | 214 | 224 |
Additions to property, plant, and equipment | 11 | 10 | 9 |
Cash and cash equivalents | 30 | 30 | 31 |
Receivables from Customers | 78 | 65 | 94 |
Long-term Investments | 358 | 573 | 485 |
Receivables, Long-term Contracts or Programs | 43 | 31 | 27 |
Accounts payable and accrued liabilities | 42 | 15 | 39 |
Long-term power bonds, net | 1 | 1 | 1 |
Return on power program appropriation investment | $ (4) | $ (4) | $ (6) |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information Unaudited Quarterly Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Revenue from sales of electricity | $ 12,540 | $ 10,503 | $ 10,249 |
Operating expenses | 10,129 | 7,658 | 7,538 |
Operating income | 2,411 | 2,845 | 2,711 |
Net income (loss) | $ 1,108 | $ 1,512 | $ 1,352 |
Revenue (Details)
Revenue (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Other revenue | $ 169,000,000 | $ 146,000,000 | $ 145,000,000 |
Off-system sales | 19,000,000 | 7,000,000 | 4,000,000 |
Sales of Electricity (subtotal) | 12,352,000,000 | 10,350,000,000 | 10,100,000,000 |
Electric revenue | (12,371,000,000) | (10,357,000,000) | (10,104,000,000) |
Revenues | 12,540,000,000 | 10,503,000,000 | 10,249,000,000 |
Pandemic Relief Credit | (228,000,000) | (221,000,000) | |
Revenue Not from Contract with Customer | $ 0.015 | ||
Revenue from Contract with Customer [Abstract] | |||
Percent of Pandemic Credit Offered | 2.50% | ||
ALABAMA | |||
Electric revenue | $ (1,778,000,000) | (1,508,000,000) | (1,439,000,000) |
GEORGIA | |||
Electric revenue | (299,000,000) | (254,000,000) | (249,000,000) |
KENTUCKY | |||
Electric revenue | (821,000,000) | (655,000,000) | (624,000,000) |
MISSISSIPPI | |||
Electric revenue | (1,182,000,000) | (984,000,000) | (941,000,000) |
NORTH CAROLINA | |||
Electric revenue | (87,000,000) | (66,000,000) | (65,000,000) |
TENNESSEE | |||
Electric revenue | (8,137,000,000) | (6,841,000,000) | (6,740,000,000) |
VIRGINIA | |||
Electric revenue | $ (48,000,000) | $ (42,000,000) | $ (42,000,000) |
Revenue Customer Type (Details)
Revenue Customer Type (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) Units | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Electric revenue | $ 12,371 | $ 10,357 | $ 10,104 | |
Other revenue | 169 | 146 | 145 | |
Revenues | 12,540 | 10,503 | 10,249 | |
Bill credits for LTA | $ (199) | (189) | 163 | |
Number of LPCs signed LTA | Units | 147 | |||
Percentage of total operating revenues | 90% | |||
Total number of LPCs | Units | 153 | |||
Off-system sales | $ 19 | 7 | 4 | |
Percent of sales of electricity to LPCs | 91% | |||
Pandemic Relief Credit | $ (228) | (221) | ||
MLGW's % of operating revenues | 9% | |||
NES's % of operating revenues | 8% | |||
Scenario, Forecast | ||||
Pandemic Relief Credit | $ 230 | |||
20-year contract arrangement [Member] | ||||
Percentage of total operating revenues | 77.10% | |||
5-year contract arrangement [Member] | ||||
Number of LPCs signed LTA | Units | 6 | |||
Percentage of total operating revenues | 12.90% | |||
TENNESSEE | ||||
Electric revenue | $ 8,137 | 6,841 | 6,740 | |
VIRGINIA | ||||
Electric revenue | 48 | 42 | 42 | |
NORTH CAROLINA | ||||
Electric revenue | 87 | 66 | 65 | |
MISSISSIPPI | ||||
Electric revenue | 1,182 | 984 | 941 | |
KENTUCKY | ||||
Electric revenue | 821 | 655 | 624 | |
GEORGIA | ||||
Electric revenue | 299 | 254 | 249 | |
ALABAMA | ||||
Electric revenue | 1,778 | 1,508 | 1,439 | |
Federal agencies and other [Member] | ||||
Electric revenue | 154 | 116 | 110 | |
20-year contract arrangement [Member] | ||||
Electric revenue | 9,670 | |||
5-year contract arrangement [Member] | ||||
Electric revenue | 1,621 | |||
Local Power Company [Member] | ||||
Electric revenue | 11,291 | 9,534 | 9,406 | |
Industries Directly Served [Member] | ||||
Electric revenue | $ 926 | $ 707 | $ 588 |
Revenue Local Power Company Con
Revenue Local Power Company Contracts (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 USD ($) Units | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | |
Number of LPCs signed LTA | Units | 147 | ||
Electric revenue | $ 12,371 | $ 10,357 | $ 10,104 |
Total number of LPCs | Units | 153 | ||
Percentage of total operating revenues | 90% | ||
Percent of wholesale Credit offered | 3.10% | ||
20-year contract arrangement [Member] | |||
Electric revenue | $ 9,670 | ||
5-year contract arrangement [Member] | |||
Electric revenue | 1,621 | ||
Local Power Company [Member] | |||
Electric revenue | $ 11,291 | $ 9,534 | $ 9,406 |
5-year contract arrangement [Member] | |||
Number of LPCs signed LTA | Units | 6 | ||
Percentage of total operating revenues | 12.90% |
Revenue Economic Development In
Revenue Economic Development Incentives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |||
Revenues | $ 328 | $ 315 | $ 318 |
Unpaid economic incentives | $ 187 | $ (176) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Nov. 14, 2022 | Sep. 30, 2022 | Sep. 30, 2021 |
Debt Instrument, Redemption [Line Items] | |||
Non-current regulatory liabilities | $ 172 | $ 40 | |
Regulatory assets | 6,134 | 7,956 | |
Unrealized gains/losses on commodity derivatives | |||
Debt Instrument, Redemption [Line Items] | |||
Non-current regulatory liabilities | $ 102 | $ 40 | |
Scenario, Forecast | |||
Debt Instrument, Redemption [Line Items] | |||
Increase/Decrease in Interest Rate Swap Liability | $ 120 | ||
Scenario, Forecast | Unrealized gains/losses on commodity derivatives | |||
Debt Instrument, Redemption [Line Items] | |||
Regulatory assets | 2 | ||
Scenario, Forecast | DeferredDerivativeGainLossUnderFHP | |||
Debt Instrument, Redemption [Line Items] | |||
Regulatory assets | 27 | ||
Scenario, Forecast | Unrealized gains/losses on commodity derivatives | |||
Debt Instrument, Redemption [Line Items] | |||
Non-current regulatory liabilities | 48 | ||
Scenario, Forecast | DeferredDerivativeGainLossUnderFHP | |||
Debt Instrument, Redemption [Line Items] | |||
Non-current regulatory liabilities | $ 50 |
Plant Closures (Details)
Plant Closures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |||
Accelerated depreciation | $ 140 | $ 136 | $ 125 |
Completed Plant | |||
Accelerated depreciation | 140 | 136 | 125 |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | 482 | ||
Depreciation | 1,800 | $ 1,400 | $ 1,600 |
Additional depreciation for coal-fired fleet | |||
Completed Plant | |||
Depreciation | $ 339 | ||
Property, Plant and Equipment [Member] | |||
Completed Plant | |||
Property, Plant and Equipment, Dispositions | 22 million | 4 million | 13 million |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 155 | $ 165 | |
Finance lease, Right-of-Use-Asset | 630 | 692 | |
Total lease assets | 785 | 857 | |
Operating Lease, Liability, Noncurrent | 93 | 122 | |
Finance Lease, Liability, Noncurrent | 628 | 687 | |
Total lease liabilities | 839 | 909 | |
Operating Lease, Cost | 56 | 52 | $ 84 |
Variable Lease, Cost | 78 | 75 | 75 |
Short-term Lease, Cost | 26 | 12 | 7 |
Finance Lease, Right-of-Use Asset, Amortization | 58 | 51 | 15 |
Finance Lease, Interest Expense | 42 | 39 | 33 |
Total finance lease costs | 100 | 90 | 48 |
Lease, Cost | 260 | 229 | $ 214 |
Derivative, Notional Amount | 1,500 | ||
Operating lease liability | |||
Lessee, Lease, Description [Line Items] | |||
Accounts Payable and Accrued Liabilities | 59 | 40 | |
Finance lease liability | |||
Lessee, Lease, Description [Line Items] | |||
Accounts Payable and Accrued Liabilities | $ 59 | $ 60 |
Leases, SoCF (Details)
Leases, SoCF (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Operating cash flows for operating leases | $ 57 | $ 53 | $ 85 |
Operating cash flows for finance leases | 42 | 39 | 33 |
Financing cash flows for finance leases | 60 | 52 | 15 |
Lease assets obtained in exchange for lease obligations - finance | 0 | 233 | 394 |
Lease assets obtained in exchange for lease obligations - operating | $ 43 | $ (22) | $ 110 |
Leases, Weighted Averages (Deta
Leases, Weighted Averages (Details) | Sep. 30, 2022 | Sep. 30, 2021 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 3 years | 5 years |
Finance Lease, Weighted Average Remaining Lease Term | 11 years | 12 years |
Operating Lease, Weighted Average Discount Rate, Percent | 1.50% | 1.50% |
Finance Lease, Weighted Average Discount Rate, Percent | 17.80% | 17.70% |
Leases, Future Minimum Payments
Leases, Future Minimum Payments (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 61 |
Operating Leases, Future Minimum Payments, Due in Two Years | 43 |
Operating Leases, Future Minimum Payments, Due in Three Years | 35 |
Operating Leases, Future Minimum Payments, Due in Four Years | 10 |
Operating Leases, Future Minimum Payments, Due in Five Years | 2 |
Operating Leases, Future Minimum Payments, Due Thereafter | 5 |
Total | 156 |
Present value of future minimum lease payments, operating | (4) |
Operating present value of net minimum lease payments | 152 |
Finance Lease, Liability, to be Paid, Year One | 112 |
Finance Lease, Liability, to be Paid, Year Two | 107 |
Finance Lease, Liability, to be Paid, Year Three | 106 |
Finance Lease, Liability, to be Paid, Year Four | 105 |
Finance Lease, Liability, to be Paid, Year Five | 104 |
Finance Lease, Liability, Payments Due Thereafter | 552 |
Finance Lease, Liability, Payment, Due | 1,086 |
Finance Lease, Liability, Payment Amounts Representing Interest | (399) |
Finance Lease, Liability | 687 |
Purchased Power Lease | 414 |
Purchased Power Lease - Gulch Union | $ 15 |
Deferred Costs, Capitalized, _3
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Sep. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other Assets, Miscellaneous, Current | $ 85 | $ 77 |