DEI Document
DEI Document shares in Millions, $ in Millions | 12 Months Ended |
Sep. 30, 2023 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 | 2023 |
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, 2023 |
Entity Small Business | false |
Entity Voluntary Filers | No |
Current Fiscal Year End Date | --09-30 |
Document Financial Statement Error Correction [Flag] | false |
Auditor Name | Ernst & Young LLP |
Audit Information
Audit Information | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Operating revenues | |||
Electric revenue | $ 11,899 | $ 12,371 | $ 10,357 |
Other revenue | 155 | 169 | 146 |
Revenue from sales of electricity | 12,054 | 12,540 | 10,503 |
Operating expenses | |||
Fuel | 2,549 | 2,567 | 1,737 |
Purchased power | 1,633 | 1,921 | 984 |
Operating and maintenance | 3,372 | 2,986 | 2,890 |
Depreciation and amortization | 2,213 | 2,054 | 1,533 |
Tax equivalents | 593 | 601 | 514 |
Total operating expenses | 10,360 | 10,129 | 7,658 |
Operating income | 1,694 | 2,411 | 2,845 |
Other income (expense), net | 61 | 7 | 13 |
Defined Benefit Plan, Other Cost (Credit) | 199 | 258 | 258 |
Interest expense | |||
Interest expense | 1,056 | 1,052 | 1,088 |
Net income (loss) | 500 | 1,108 | 1,512 |
ALABAMA | |||
Operating revenues | |||
Electric revenue | 1,731 | 1,778 | 1,508 |
GEORGIA | |||
Operating revenues | |||
Electric revenue | 284 | 299 | 254 |
KENTUCKY | |||
Operating revenues | |||
Electric revenue | 773 | 821 | 655 |
MISSISSIPPI | |||
Operating revenues | |||
Electric revenue | 1,146 | 1,182 | 984 |
NORTH CAROLINA | |||
Operating revenues | |||
Electric revenue | 89 | 87 | 66 |
TENNESSEE | |||
Operating revenues | |||
Electric revenue | 7,819 | 8,137 | 6,841 |
VIRGINIA | |||
Operating revenues | |||
Electric revenue | $ 46 | $ 48 | $ 42 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Current assets | ||
Cash and Cash Equivalents, at Carrying Value | $ 501 | $ 500 |
Accounts receivable, net | 1,745 | 2,007 |
Inventories, net | 1,108 | 1,072 |
Regulatory assets | 178 | 138 |
Other current assets | 134 | 257 |
Total current assets | 3,666 | 3,974 |
Property, plant, and equipment | ||
Completed plant | 68,199 | 66,442 |
Less accumulated depreciation | (35,871) | (34,239) |
Net completed plant | 32,328 | 32,203 |
Construction in progress | 3,238 | 2,535 |
Nuclear fuel | 1,344 | 1,492 |
Finance Lease, Right-of-Use-Asset, after Accumulated Amortization | 572 | 630 |
Total property, plant, and equipment, net | 37,482 | 36,860 |
Long-term Investments | 4,123 | 3,671 |
Regulatory and other long-term assets | ||
Regulatory assets | 5,566 | 6,134 |
Operating Lease, Right-of-Use Asset | 177 | 155 |
Other long-term assets | 330 | 394 |
Total regulatory and other long-term assets | 6,073 | 6,683 |
Total assets | 51,344 | 51,188 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,618 | 2,466 |
Accrued interest | 272 | 273 |
Asset Retirement Obligation, Current | 272 | 275 |
Regulatory liabilities | 222 | 391 |
Short-term debt, net of discounts | 432 | 1,172 |
Total Current maturities of power bonds issued at par | 1,022 | 29 |
Current maturities of long-term debt of variable interest entities issued at par | 35 | 39 |
Total current liabilities | 4,873 | 4,645 |
Other liabilities | ||
Post-retirement and post-employment benefit obligations | 2,527 | 3,072 |
Asset retirement obligations | 7,217 | 6,887 |
Other long-term liabilities | 1,211 | 1,485 |
Non-current regulatory liabilities | 107 | 172 |
Total other liabilities | 11,638 | 12,244 |
Long-term debt, net | ||
Long-term power bonds, net | 17,844 | 17,826 |
Long-term debt of variable interest entities, net | 933 | 968 |
Total long-term debt, net | 18,777 | 18,794 |
Total liabilities | 35,288 | 35,683 |
Proprietary capital | ||
Power program appropriation investment | 258 | 258 |
Power program retained earnings | 15,302 | 14,800 |
Total power program proprietary capital | 15,560 | 15,058 |
Nonpower programs appropriation investment, net | 525 | 533 |
Accumulated other comprehensive income (loss) | (29) | (86) |
Total proprietary capital | 16,056 | 15,505 |
Total liabilities and proprietary capital | 51,344 | 51,188 |
Finance Lease, Liability, Noncurrent | $ 576 | $ 628 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 521 | $ 520 | $ 518 |
Cash flows from operating activities | |||
Net income (loss) | 500 | 1,108 | 1,512 |
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) | 2,235 | 2,076 | 1,555 |
Amortization of nuclear fuel cost | 371 | 347 | 383 |
Non-cash retirement benefit expense | 241 | 328 | 333 |
Regulatory asset amount expensed | 31 | 70 | 72 |
Changes in current assets and liabilities | |||
Accounts receivable, net | 301 | (412) | (18) |
Inventories and other current assets, net | (83) | (163) | 42 |
Accounts payable and accrued liabilities | (1) | 282 | 178 |
Accrued interest | (1) | (7) | (18) |
Pension contributions | (306) | (308) | (306) |
Settlements of asset retirement obligations | (327) | (291) | 242 |
Other, net | (89) | (82) | (91) |
Net cash provided by operating activities | 2,872 | 2,948 | 3,256 |
Cash flows from investing activities | |||
Construction expenditures | (2,526) | (2,361) | (1,963) |
Nuclear fuel expenditures | (273) | (283) | (354) |
Acquisition of leasehold interests in combustion turbine assets | (155) | 0 | 0 |
Purchases of investments | (51) | (51) | (50) |
Loans and other receivables | |||
Repayments | 8 | 15 | 9 |
Other, net | 10 | 26 | 27 |
Net cash used in investing activities | (2,994) | (2,663) | (2,338) |
Long-term debt | |||
Issues of power bonds | 992 | 484 | 500 |
Redemptions and repurchases of power bonds | (29) | (1,028) | (1,860) |
Payments on debt of variable interest entities | (39) | (43) | (41) |
Short-term debt issues (redemptions), net | (740) | 392 | 723 |
Finance Lease, Principal Payments | 56 | 85 | 250 |
Financing costs, net | (4) | (3) | (2) |
Other, net | (1) | 0 | 9 |
Net cash (used in) provided by financing activities | 123 | (283) | (921) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect | 1 | 2 | (3) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total | 1 | ||
Advances on loans receivable | $ (7) | $ (9) | $ (7) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Balance at beginning of year | $ 15,505 | $ 14,465 | $ 12,932 |
Net income (loss) | 500 | 1,108 | 1,512 |
Total other comprehensive income (loss) | 57 | (64) | 29 |
Return on power program appropriation investment | (6) | (4) | (4) |
Balance at end of year | 16,056 | 15,505 | 14,465 |
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 | 14,800 | 13,689 | 12,177 |
Net income (loss) | 508 | 1,115 | 1,520 |
Total other comprehensive income (loss) | 0 | 0 | 0 |
Return on power program appropriation investment | (6) | (4) | (4) |
New Accounting Standard - CECL | (4) | ||
Balance at end of year | 15,302 | 14,800 | 13,689 |
Nonpower Programs Appropriation Investment, Net | |||
Balance at beginning of year | 533 | 540 | 548 |
Net income (loss) | (8) | (7) | (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 | 525 | 533 | 540 |
Accumulated Other Comprehensive Income (Loss) Net Gains (Losses) on Cash Flow Hedges | |||
Balance at beginning of year | (86) | (22) | (51) |
Net income (loss) | 0 | 0 | 0 |
Total other comprehensive income (loss) | 57 | (64) | 29 |
Return on power program appropriation investment | 0 | 0 | 0 |
New Accounting Standard - CECL | 0 | ||
Balance at end of year | $ (29) | $ (86) | $ (22) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 500 | $ 1,108 | $ 1,512 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 99 | (157) | 126 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | (42) | 93 | (97) |
Total other comprehensive income (loss) | 57 | (64) | 29 |
Total comprehensive income (loss) | $ 557 | $ 1,044 | $ 1,541 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Interest paid was $1.1 billion for each of 2023, 2022, and 2021. These amounts differ from interest expense in certain years due to the timing of payments. There was no interest capitalized in 2023, 2022, or 2021. Construction in progress and nuclear fuel expenditures included in Accounts payable and accrued liabilities at September 30, 2023, 2022, and 2021 were $559 million, $510 million, and $539 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the years ended September 30, 2023, 2022, and 2021 as non-cash investing activities. ARO project accruals included in Accounts payable and accrued liabilities at September 30, 2023, 2022, and 2021 were $71 million, $119 million, and $98 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the years ended September 30, 2023, 2022, and 2021 as non-cash operating activities. There are no material finance leases that were entered into during the years ended September 30, 2023 and 2022. Excluded from the Consolidated Statements of Cash Flows for the year ended September 30, 2021, were non-cash investing and financing activities of $233 million related primarily to an increase in lease assets and liabilities incurred for a finance lease that was amended in March 2021. See Note 8 — Leases for further information regarding TVA's finance leases. Cash flows from swap contracts that are accounted for as hedges are classified in the same category as the item being hedged or on a basis consistent with the nature of the instrument. |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Supplemental Cash Flow Information | |||
Interest Paid, Excluding Capitalized Interest, Operating Activities | $ 1,100 | $ 1,100 | $ 1,100 |
ARO project accruals included in AP | 71 | 119 | 98 |
Lease assets obtained in exchange for lease obligations - finance | 3 | 0 | 233 |
Accounts payable and accrued liabilities | |||
Supplemental Cash Flow Information | |||
Construction in progress and Nuclear fuel expenditures | $ 559 | $ 510 | $ 539 |
Summary of Significant Accounti
Summary of Significant Accounting Policies [Text Block] | 12 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. 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 ("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 (2023, 2022, 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 22 — 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) 2023 2022 Cash and cash equivalents $ 501 $ 500 Restricted cash and cash equivalents included in Other long-term assets 20 20 Total cash, cash equivalents, and restricted cash $ 521 $ 520 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, 2023 and 2022, for trade accounts receivable. Additionally, loans receivable of $104 million and $105 million at September 30, 2023 and 2022, 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 at both September 30, 2023 and 2022. 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. Pre-Commercial Plant Operations As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on Colbert Combustion Turbine Units 9-10 in June 2023 and on Colbert Combustion Turbine Unit 11 in early July 2023. All three units became operational on July 25, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the year ended September 30, 2023. TVA also capitalized related fuel costs for this project of $3 million for the year ended September 30, 2023. 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. 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. Nuclear Fuel. 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. 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 $219 million in reimbursements from the DOE, which is recorded as a reduction in nuclear fuel inventory costs. At September 30, 2023, TVA recorded $11 million in Accounts receivable, net related to this agreement. 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, with the latest study implemented during the first quarter of 2022. Depreciation expense for the years ended September 30, 2023, 2022, and 2021 was $1.9 billion, $1.8 billion, and $1.4 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 3.14 percent for 2023, 2.98 percent for 2022, and 2.28 percent for 2021. Average depreciation rates by asset class are as follows: Property, Plant, and Equipment Depreciation Rates At September 30 2023 2022 2021 Asset Class Nuclear 2.73 2.72 2.38 Coal-fired (1) 4.98 4.27 1.95 Hydroelectric 1.82 1.85 1.60 Gas and oil-fired 3.17 3.38 2.98 Transmission 1.52 1.51 1.34 Other 4.43 3.64 7.12 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 $324 million and $178 million as of September 30, 2023 and 2022, 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 30 to 35 years. Amortization expense was $10 million, $6 million, and $8 million for the years ended September 30, 2023, 2022, and 2021, respectively, and accumulated amortization at September 30, 2023 and 2022 totaled $52 million and $42 million, respectively. At September 30, 2023, the estimated aggregate amortization expense for each of the next five years and thereafter is shown below: 2024 2025 2026 2027 2028 Thereafter Reacquired Rights $ 11 $ 12 $ 11 $ 12 $ 11 $ 267 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, Other long-term liabilities, and Finance lease liabilities related to these agreements were $390 million and $135 million for finance and operating leases, respectively, at September 30, 2023. The total lease obligations included in Accounts payable and accrued liabilities, 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. 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, 2023. 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. Investment Funds Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 22 — Commitments and Contingencies — Contingencies — Decommissioning Costs ), the Supplemental Executive Retirement Plan ("SERP") (see Note 20 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan ), the Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). 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, DCP, and RP 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, DCP, and RP funds are all classified as trading. 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. Maintenance Costs |
Impact of New Accounting Standa
Impact of New Accounting Standards and Interpretations | 12 Months Ended |
Sep. 30, 2023 | |
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 accounting standards have been issued but as of September 30, 2023, 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 Adoption of this standard did not have a material impact on TVA's financial condition, results of operations, or cash flows. 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 Adoption of this standard did not have a material impact on TVA's financial condition, results of operations, or cash flows. |
Accounts Receivable, Net
Accounts Receivable, Net | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Power receivables $ 1,627 $ 1,899 Other receivables 118 108 Accounts receivable, net (1) $ 1,745 $ 2,007 Note (1) Allowance for uncollectible accounts was less than $1 million at both September 30, 2023 and 2022, and therefore is not represented in the table above. |
Inventories, Net
Inventories, Net | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Materials and supplies inventory $ 849 $ 808 Fuel inventory 313 303 Renewable energy certificates/emissions allowance inventory, net 15 18 Allowance for inventory obsolescence (69) (57) Inventories, net $ 1,108 $ 1,072 |
Deferred Costs, Capitalized, Pr
Deferred Costs, Capitalized, Prepaid, and Other Assets - Text Block | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 (1) Inventory work-in-progress $ 28 $ 18 Current portion of prepaid long-term service agreements 25 12 Commodity contract derivative assets 21 172 Prepaid software maintenance 18 14 Prepaid insurance 16 16 Other 26 25 Other current assets $ 134 $ 257 Note (1) At September 30, 2022, $18 million, $14 million, $16 million, and $12 million previously classified as Other (a component of Other current assets) have been reclassified to Inventory work-in-progress (a component of Other current assets), Prepaid software maintenance (a component of Other current assets), Prepaid insurance (a component of Other current assets), and Current portion of prepaid long-term service agreements (a component of Other current assets), respectively, to conform with current year presentation. Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. 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 |
Net Completed Plant
Net Completed Plant | 12 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment, Net, by Type [Abstract] | |
Property, Plant, and Equipment and Intangible Assets | 6. Net Completed Plant Net completed plant consisted of the following: Net Completed Plant At September 30 (in millions) 2023 2022 Cost Accumulated Depreciation Cost Accumulated Depreciation Net Coal-fired (1) $ 18,525 $ 14,464 $ 4,061 $ 18,145 $ 13,649 $ 4,496 Gas and oil-fired 6,663 2,057 4,606 6,112 1,957 4,155 Nuclear 26,803 13,557 13,246 26,629 12,928 13,701 Transmission 9,375 3,359 6,016 8,919 3,301 5,618 Hydroelectric 4,109 1,241 2,868 3,987 1,192 2,795 Other electrical plant 1,798 780 1,018 1,724 807 917 Multipurpose dams 900 404 496 900 396 504 Other stewardship 26 9 17 26 9 17 Total $ 68,199 $ 35,871 $ 32,328 $ 66,442 $ 34,239 $ 32,203 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, 2023 | |
Assets, Noncurrent [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) 2023 2022 Loans and other long-term receivables, net $ 97 $ 99 Prepaid long-term service agreements 64 74 EnergyRight ® receivables, net 47 49 Prepaid capital assets 28 — Commodity contract derivative assets 12 102 Other 82 70 Total other long-term assets $ 330 $ 394 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, 2023 and 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $7 million and $6 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, 2023 and 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million and $13 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) 2023 2022 EnergyRight ® loan reserve $ 1 $ 1 Economic development loan collective reserve 1 1 Economic development loan specific loan reserve 1 1 Total allowance for loan losses $ 3 $ 3 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 September 30, 2023 and 2022, prepayments of $25 million and $12 million, respectively, 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 as well as certain financial derivative contracts to hedge exposure to the price of natural gas. 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 |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities [Text Block] | 12 Months Ended |
Sep. 30, 2023 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | 10. 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) 2023 2022 Current regulatory assets Unrealized losses on interest rate derivatives $ 31 $ 47 Unrealized losses on commodity derivatives 136 14 Fuel cost adjustment receivable 11 77 Total current regulatory assets 178 138 Non-current regulatory assets Retirement benefit plans deferred costs 1,440 1,839 Non-nuclear decommissioning costs 2,922 2,856 Unrealized losses on interest rate derivatives 272 479 Nuclear decommissioning costs 728 821 Unrealized losses on commodity derivatives 52 1 Other non-current regulatory assets 152 138 Total non-current regulatory assets 5,566 6,134 Total regulatory assets $ 5,744 $ 6,272 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 201 $ 218 Unrealized gains on commodity derivatives 21 173 Total current regulatory liabilities 222 391 Non-current regulatory liabilities Retirement benefit plans deferred credits 95 70 Unrealized gains on commodity derivatives 12 102 Total non-current regulatory liabilities 107 172 Total regulatory liabilities $ 329 $ 563 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 discontinued this regulatory accounting practice as all such deferred costs were recovered as of September 30, 2023. 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 asset retirement obligations ("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 2023 and 2022, 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 Sheets. Due to rising interest rates in the financial markets and net settlement payments made during 2023, TVA experienced a reduction in unrealized losses related to its derivative instruments for the year ended September 30, 2023. 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 decreased $93 million for the year ended September 30, 2023 as compared to the same period of the prior year, primarily due to investment gains in the NDT and amortization of regulatory assets into expenses during 2023 as amounts were collected in rates, and these increases were partially offset by 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 March 2026. 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, 2023 | |
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 seven 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, 2023 and 2022, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets At September 30 (in millions) 2023 2022 Current liabilities Accrued interest $ 9 $ 10 Accounts payable and accrued liabilities 1 2 Current maturities of long-term debt of variable interest entities 35 39 Total current liabilities 45 51 Other liabilities Other long-term liabilities 17 18 Long-term debt, net Long-term debt of variable interest entities, net 933 968 Total liabilities $ 995 $ 1,037 Interest expense of $48 million, $50 million, and $52 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, 2023, 2022, and 2021, respectively. At September 30, 2023, TVA had outstanding debt of VIEs of $968 million and outstanding membership interests subject to mandatory redemption (including current portion) of $18 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, 2023: Maturities Due in the Year Ending September 30 (in millions) 2024 2025 2026 2027 2028 Thereafter Long-term debt of VIEs including current maturities (1) $ 35 $ 37 $ 39 $ 40 $ 42 $ 781 Membership interests of variable interest entity subject to mandatory redemption 1 1 1 1 1 13 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, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | 13. Asset Retirement Obligations During the year ended September 30, 2023, TVA's total ARO liability increased $327 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. 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 $362 million for the year ended September 30, 2023. During the year coal combustion residuals ("CCR") closure liabilities at Bull Run, Johnsonville, and Cumberland increased $458 million due to revised cost estimates for final closure activities based on TVA's current approved closure strategies at these sites. Partially offsetting these increases, expected reductions in CCR post-closure costs for long-term monitoring at Gallatin resulted in a decrease of $60 million. In addition, CCR closure liabilities at Cumberland decreased $15 million due to identified changes in the projected timing of certain asset retirement activities, and CCR closure liabilities at Paradise decreased $9 million based on refined project cost estimates. The revisions in non-nuclear estimates increased $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. 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 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. Additionally, during the years ended September 30, 2023 and 2022, 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 2023, 2022, and 2021, $188 million, $137 million, and $72 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 22 — Commitments and Contingencies — 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, 2021 $ 3,428 $ 3,574 $ 7,002 Settlements (2) (309) (311) 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) Settlements (8) (271) (279) Revisions in estimate 7 362 369 Accretion (recorded as regulatory asset) 166 71 237 Balance at September 30, 2023 $ 3,808 $ 3,681 $ 7,489 (1) Note (1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 12 Months Ended |
Sep. 30, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | 12. 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) 2023 2022 (1) Interest rate swap liabilities $ 627 $ 851 Operating lease liabilities 93 93 Currency swap liabilities 131 228 Commodity contract derivative liabilities 52 1 EnergyRight ® financing obligation 55 58 Long-term deferred compensation 41 39 Advances for construction 56 53 Long-term deferred revenue 45 39 Other 111 123 Total other long-term liabilities $ 1,211 $ 1,485 Note (1) At September 30, 2022, $1 million previously classified as Other (a component of Other long-term liabilities) has been reclassified to Commodity contract derivative liabilities (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 Other current assets, Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets. See Note 15 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivative s for information regarding the interest rate swap liabilities. Operating Lease Liabilities . TVA's operating leases consist primarily of railcars, equipment, real estate/land, and power generating facilities. At September 30, 2023 and 2022, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $71 million and $59 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. See Note 15 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities. Commodity Contract Derivative Liabilities. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. 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 discussion of TVA's commodity contract derivatives. 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 both September 30, 2023 and 2022, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $14 million. 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, 2023 and 2022, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $65 million and $53 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, 2023 and 2022, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $39 million and $33 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, 2023 and 2022, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $21 million and $16 million, respectively. |
Debt and Other Obligations
Debt and Other Obligations | 12 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | 14. 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, 2023, 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 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, 2023, 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 September 30, 2023 and 2022 totaled $968 million and $1.0 billion, respectively. Short-Term Debt The following table provides information regarding TVA's short-term borrowings: Short-Term Borrowings At September 30 2023 2022 Gross amount outstanding - discount notes (in millions) $ 432 $ 1,173 Weighted average interest rate - discount notes 5.29 % 2.93 % 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, 2023. 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, 2023. 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, 2023 and 2022. Debt Securities Activity For the years ended September 30 (in millions) 2023 2022 Issues 2022 Series A (1) $ — $ 500 2023 Series A (2) 1,000 — Discount on debt issues (8) (16) Total $ 992 $ 484 Redemptions/Maturities (3) 2009 Series B $ 29 $ 28 2012 Series A — 1,000 Total redemptions/maturities of power bonds 29 1,028 Debt of variable interest entities 39 43 Total redemptions/maturities of debt $ 68 $ 1,071 Notes (1) The 2022 Series A Bonds were issued at 96.786 percent of par. (2) The 2023 Series A Bonds were issued at 99.187 percent of par. (3) All redemptions were at 100 percent of par. Debt Outstanding Total debt outstanding at September 30, 2023 and 2022, consisted of the following: Short-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity 2023 2022 Short-term debt, net of discounts $ 432 $ 1,172 Current maturities of long-term debt of VIEs issued at par 35 39 Current maturities of power bonds issued at par 880591EF5 12/15/2023 3.770% 1 1 880591EF5 6/15/2024 3.770% 21 28 880591ER9 9/15/2024 2.875% 1,000 — Total current maturities of power bonds issued at par 1,022 29 Total current debt outstanding, net $ 1,489 $ 1,240 Long-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity Coupon 2023 Par 2022 Par Stock Exchange Listings 880591ER9 9/15/2024 2.875% $ — $ 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) 305 (1) 279 (1) New York, Luxembourg 880591DV1 7/15/2033 4.700% 472 472 New York, Luxembourg 880591EF5 6/15/2034 3.770% 139 160 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) 183 (1) 168 (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% 500 500 New York 880591EZ1 3/15/2028 3.875% 1,000 — New York Subtotal 17,970 17,950 Unamortized discounts, premiums, issue costs, and other (126) (124) Total long-term outstanding power bonds, net 17,844 17,826 Long-term debt of VIEs, net 933 968 Total long-term debt, net $ 18,777 $ 18,794 Notes (1) Includes total net exchange gain from currency transactions of $109 million and $150 million at September 30, 2023 and 2022, 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) 2024 2025 2026 2027 2028 Thereafter Total Long-term power bonds including current maturities (1) $ 1,022 $ 1,022 $ 1,370 $ 1,020 $ 1,272 $ 13,395 $ 19,101 Short-term debt (2) 432 — — — — — 432 Notes (1) Long-term power bonds do not include non-cash items of foreign currency exchange gain of $109 million, unamortized debt issue costs of $41 million, or net discount on sale of Bonds of $85 million. (2) Short-term debt does not include the non-cash item of discount on issuance of discount notes of less than $1 million. Credit Facility Agreements TVA has funding available under four long-term revolving credit facilities totaling $2.7 billion. See the table below for additional information on the four long-term revolving credit facilities. 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, 2023 and 2022, there were $535 million and $704 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps. See Note 15 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral . TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit. 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, 2023 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2025 $ 500 $ 302 $ — $ 198 March 2026 150 38 — 112 September 2026 1,000 99 — 901 March 2027 1,000 96 — 904 Total $ 2,650 $ 535 $ — $ 2,115 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 2024 with a maturity date of September 30, 2024. 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, 2023. 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. There were no outstanding leaseback obligations related to the remaining CTs and QTE at September 30, 2023 and 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. In December 2021, TVA gave notice of its election to acquire the leasehold interests related to the remaining eight CTs for a total of $155 million. One associated acquisition closed in December 2022 for $78 million, and the other acquisition closed in May 2023 for $77 million. As a result, TVA recorded the cash consideration as reacquired rights, which is an intangible asset included in Completed plant on the Consolidated Balance Sheet. The amount will be amortized over the remaining estimated useful life of the underlying CTs. TVA recognized $3 million of amortization expense related to the reacquired rights within the Consolidated Statements of Operations for the year ended September 30, 2023 . Transaction costs were not material. The estimated amortization expense will be $5 million annually from 2024 through 2052. The estimated amortization expense will be $2 million in 2053. |
Risk Management Activities and
Risk Management Activities and Derivative Transactions | 12 Months Ended |
Sep. 30, 2023 | |
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. 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 (in millions) Derivatives in Cash Flow Hedging Relationship Objective of Hedge Transaction Accounting for Derivative 2023 2022 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 $ 99 $ (157) 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 2023 2022 Currency swaps $ 42 $ (93) 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 $20 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 (in millions) Derivative Type Objective of Derivative Accounting for Derivative Instrument 2023 2022 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 $ (45) $ (103) 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) (348) 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, 2023 and 2022. (2) Of the amount recognized in 2023, $301 million and $47 million were reported in Fuel expense and Purchased power expense, respectively. 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 (in millions) 2023 2022 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (72) Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66) $ (130) Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123) £150 million Sterling (69) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(65) (110) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (499) Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473) $ (672) Accounts payable and accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630) $476 million notional (159) Other current assets $3; Accrued interest $(8); Other long-term liabilities $(154) (233) Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(221) Commodity contract derivatives 31 Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) 145 Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1) Commodity derivatives under the FHP (186) Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51) 115 Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8) 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, 2023: 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 6.587% 2003 £150 million 2043 4.962% 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 Other current assets, 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, 2023 and 2022, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $240 million and $728 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 may also enter into short-term PPAs with a term of less than one year that provide an option to financially settle contracted power deliveries. This option creates an embedded derivative in the hosting power purchase agreement. TVA marks to market these contracts and defers the unrealized gains (losses) as regulatory liabilities (assets). At September 30, 2023, TVA's natural gas contract derivatives had terms of up to three years. Commodity Contract Derivatives At September 30 2023 2022 Number of Contracts Notional Amount Fair Value (MtM) Number of Contracts Notional Amount Fair Value ( MtM ) (in millions) Natural gas contract derivatives 54 318 million mmBtu $ 31 44 296 million mmBtu $ 145 Commodity Derivatives under the FHP. In 2022, the FHP was reinstated, 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 FHP policy prohibits trading financial instruments under the FHP for speculative purposes. At September 30, 2023, TVA's natural gas swap contracts under the FHP had remaining terms of up to five years. Commodity Derivatives under Financial Hedging Program (1) At September 30 2023 2022 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas Swap contracts 221 388 million mmBtu $ (186) 225 256 million mmBtu $ 115 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. The fair value of commodity derivatives under the FHP decreased $301 million primarily due to a decrease in forward natural gas prices at September 30, 2023 as compared to September 30, 2022. 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) 2023 2022 Assets Interest rate swaps $ 4 $ — Commodity contract derivatives 33 152 Commodity derivatives under the FHP (2) — 123 Total derivatives subject to master netting or similar arrangement $ 37 $ 275 Liabilities Currency swaps $ 141 $ 240 Interest rate swaps (3) 662 905 Commodity contract derivatives 2 7 Commodity derivatives under the FHP (2) 186 8 Total derivatives subject to master netting or similar arrangement $ 991 $ 1,160 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, 2023 or 2022. (2) At September 30, 2023, the gross derivative asset and gross derivative liability was $26 million and $212 million, respectively, with offsetting amounts for each totaling $26 million. (3) Letters of credit of approximately $509 million and $704 million were posted as collateral at September 30, 2023 and 2022, 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, DCP, and RP. 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, 2023 and 2022, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $11 million and $4 million at September 30, 2023 and 2022, 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, 2023, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $987 million. TVA's collateral obligations at September 30, 2023, under these arrangements were $429 million, for which TVA had posted $509 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. 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 $1.6 billion and $1.9 billion of receivables from power sales outstanding at September 30, 2023 and 2022, 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, 2023 and 2022. 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 continues to experience impacts due to inflation, supply chain material challenges, and labor availability. This has led to project delays, limited availability, and/or price increases for supplies and labor. TVA has been able to manage these challenges with limited business disruptions at this time; however, should pressures continue long term, TVA could experience more significant disruptions and pressure to increase power rates. Natural Gas and Fuel Oil . 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 help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers at September 30, 2023. 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. 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. Both TVA's Self-Directed Solar project and TVA's existing solar PPA portfolio are not immune from these challenges. Similar to the experience of the rest of the industry, the majority of TVA's contracted PPAs from previous requests for proposals ("RFPs") that are not yet online have been impacted by project delays and price increases, and TVA terminated one PPA because of counterparty default. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 16. 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, DCP, and RP 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, 2023, Investment funds were comprised of $4.1 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, DCP, and RP. 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 $2.8 billion and $1.2 billion, respectively, at September 30, 2023. 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 RP is a non-qualified excess 401(K) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by Internal Revenue Service ("IRS") rules to save additional amounts for retirement and receive non-elective and matching employer contributions. The NDT, ART, SERP, DCP, and RP 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, DCP, and RP 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 $237 million, private real assets of $123 million, and private credit of $81 million at September 30, 2023. The ART had unfunded commitments related to limited partnerships in private equity of $124 million, private real assets of $60 million, and private credit of $43 million at September 30, 2023. 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, DCP, and RP 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) (1) For the years ended September 30 (in millions) Fund Financial Statement Presentation 2023 2022 NDT Regulatory assets (2) $ 162 $ (396) ART Regulatory assets (3) 96 (190) SERP Other income (expense) 6 (19) DCP Other income (expense) 1 (5) Notes (1) Employee contributions to the RP began in the second quarter of 2023. As of September 30, 2023, the unrealized losses for the RP were less than $1 million, and therefore were not represented in the table above. (2) Includes $27 million of unrealized gains and $138 million of unrealized losses related to NDT equity securities (excluding commingled funds) for the years ended September 30, 2023 and 2022, respectively. (3) Includes $13 million of unrealized gains and $44 million of unrealized losses related to ART equity securities (excluding commingled funds) for the years ended September 30, 2023 and 2022, respectively. 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. These contracts are classified as Level 2 valuations. 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 2022) 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 $1 million decrease in the fair value of assets and a $1 million decrease in the fair value of liabilities at September 30, 2023. 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, 2023 and 2022. 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, 2023 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 608 $ — $ — $ 608 Government debt securities (1)(2) 287 60 — 347 Corporate debt securities (3) — 300 — 300 Mortgage and asset-backed securities — 36 — 36 Institutional mutual funds 288 — — 288 Forward debt securities contracts — 11 — 11 Cash equivalents and other short-term investments (2) 104 166 — 270 Private equity funds measured at net asset value (4) — — — 583 Private real asset funds measured at net asset value (4) — — — 387 Private credit funds measured at net asset value (4) — — — 158 Commingled funds measured at net asset value (4) — — — 1,135 Total investments 1,287 573 — 4,123 Interest rate swaps — 4 — 4 Commodity contract derivatives — 33 — 33 Total $ 1,287 $ 610 $ — $ 4,160 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (5) $ — $ 141 $ — $ 141 Interest rate swaps — 662 — 662 Commodity contract derivatives — 2 — 2 Commodity derivatives under the FHP — 186 — 186 Total $ — $ 991 $ — $ 991 Notes (1) Includes securities of government-sponsored entities. (2) There are $287 million of U.S. Treasury Securities in Level 1 Government debt securities and $104 million of U.S. Treasury Securities in Level 1 Cash equivalents and other short-term investments for a total of $391 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) Includes both U.S. and foreign debt. (4) Certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. 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. (5) 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 . 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)(2)(3) 297 35 — 332 Corporate debt securities (3)(4) — 282 — 282 Mortgage and asset-backed securities — 52 — 52 Institutional mutual funds 242 — — 242 Forward debt securities contracts — 4 — 4 Cash equivalents and other short-term investments (2)(3) 61 118 — 179 Private equity funds measured at net asset value (5) — — — 487 Private real asset funds measured at net asset value (5) — — — 369 Private credit funds measured at net asset value (5) — — — 103 Commingled funds measured at net asset value (3)(5) — — — 1,087 Total investments 1,134 491 — 3,671 Commodity contract derivatives — 152 — 152 Commodity derivatives under the FHP — 123 — 123 Total $ 1,134 $ 766 $ — $ 3,946 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (6) $ — $ 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 securities of government-sponsored entities. (2) There are $297 million of U.S. Treasury Securities in Level 1 Government debt securities and $61 million of U.S. Treasury Securities in Level 1 Cash equivalents and other short-term investments for a total of $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) At September 30, 2022, $61 million of the Level 1 Government debt securities have been reclassified to Level 1 Cash equivalents and other short-term investments. At September 30, 2022, $1 million of the Level 2 Government debt securities, $1 million of the Level 2 Corporate debt securities, and $116 million of the Commingled funds measured at net asset value have been reclassified to Level 2 Cash equivalents and other short-term investments. (4) Includes both U.S. and foreign debt. (5) Certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. 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. (6) 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, 2023 and 2022, 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, 2023 and 2022, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At September 30, 2023 At September 30, 2022 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 59 $ 55 $ 62 $ 62 Loans and other long-term receivables, net (including current portion) Level 2 104 96 105 96 EnergyRight ® financing obligations (including current portion) Level 2 69 81 72 81 Unfunded loan commitments Level 2 — 1 — — Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 18 19 20 22 Long-term outstanding power bonds, net (including current maturities) Level 2 18,866 17,963 17,856 18,070 Long-term debt of VIEs, net (including current maturities) Level 2 968 927 1,007 989 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, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 18. Other Income, 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) 2023 2022 2021 Bellefonte $ — $ — $ (28) Interest income 34 15 12 External services 15 16 13 Gains (losses) on investments 13 (17) 16 Miscellaneous (1) (7) — Total other income, net $ 61 $ 7 $ 13 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 22. Commitments and Contingencies Commitments Power Purchase Obligations. TVA has contracted with various independent power producers and LPCs for additional capacity to be made available to TVA. Several of these agreements have contractual minimum payments and are accounted for as either finance or operating leases. In total, these agreements provide 4,487 megawatts ("MW") of summer net capability. The remaining terms of the agreements range up to 12 years. Additionally, TVA has contracted with regional transmission organizations to reserve 2,792 MW of transmission service to support purchases from the market and wind PPAs. The remaining terms of these agreements range up to four years. Excluding lease-related costs, TVA incurred $301 million, $318 million, and $202 million of expense under these power purchase and transmission service agreements during 2023, 2022, and 2021, respectively. TVA has one power purchase agreement that meets the definition of an unconditional purchase obligation. At September 30, 2023, the non-lease portion of the commitment for each of the next five years and thereafter is shown below: 2024 2025 2026 2027 2028 Thereafter Unconditional purchase obligation $ 155 $ 155 $ 155 $ 155 $ 154 $ 541 Under federal law, TVA is obligated to purchase power from qualifying facilities (cogenerators and small power producers). As of September 30, 2023, there was a combined qualifying facility capacity of 285 MW from 955 different generation sources, from which TVA purchased power under this law. Unfunded Loan Commitments . At September 30, 2023, TVA's commitments under unfunded loan commitments were $1 million for 2024. TVA has no commitments under unfunded loan commitments for 2025 through 2028. Other Commitments. See Note 8 — Leases , Note 11 — Variable Interest Entities , Note 14 — Debt and Other Obligations , and Note 20 — Benefit Plans for the obligations and commitments attributable to leases, VIEs and membership interests of VIEs subject to mandatory redemption, leaseback obligations, and the retirement plan, respectively. Contingencies Nuclear Insurance . Section 170 of the Atomic Energy Act, commonly known as the Price-Anderson Act, provides a layered framework of financial protection to compensate for liability claims of members of the public for personal injury and property damages arising from a nuclear incident in the U.S. This financial protection consists of two layers of coverage. The primary level is private insurance underwritten by American Nuclear Insurers and provides public liability insurance coverage of $450 million for each nuclear power plant licensed to operate. If this amount is not sufficient to cover claims arising from a nuclear incident, the second level, Secondary Financial Protection, applies. Within the Secondary Financial Protection level, the licensee of each nuclear reactor has a contingent obligation to pay a retrospective premium, equal to its proportionate share of the loss in excess of the primary level, regardless of proximity to the incident of fault, up to a maximum of $138 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $963 million. This retrospective premium is payable at a maximum rate currently set at $20 million per year per nuclear incident per reactor. Currently, 97 reactors are participating in the Secondary Financial Protection program. In the event that a nuclear incident results in public liability claims, the primary level provided by American Nuclear Insurers combined with the Secondary Financial Protection should provide up to $13.8 billion in coverage. Federal law requires that each NRC power reactor licensee obtain property insurance from private sources to cover the cost of stabilizing and decontaminating a reactor and its station site after an accident. TVA carries property, decommissioning liability, and decontamination liability insurance from Nuclear Electric Insurance Limited ("NEIL") and European Mutual Association for Nuclear Insurance. The limits available for a loss are up to $2.1 billion for two of TVA's nuclear sites and up to $2.8 billion for the remaining site. Some of this insurance may require the payment of retrospective premiums up to a maximum of $114 million. TVA purchases accidental outage (business interruption) insurance for TVA's nuclear sites from NEIL. In the event that an accident covered by this policy takes a nuclear unit offline or keeps a nuclear unit offline, NEIL will pay TVA, after a waiting period, an indemnity (a set dollar amount per week) with a maximum indemnity of $490 million per unit. This insurance policy may require the payment of retrospective premiums up to a maximum of $44 million, but only to the extent the retrospective premium is deemed necessary by the NEIL Board of Directors to pay losses unable to be covered by NEIL's surplus. Decommissioning Costs. TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets related primarily to nuclear generating plants, coal-fired generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets. See Note 13 — Asset Retirement Obligations . Nuclear Decommissioning . Provision for decommissioning costs of nuclear generating units is based on options prescribed by the NRC procedures to dismantle and decontaminate the facilities to meet the NRC criteria for license termination. At September 30, 2023, $3.8 billion, representing the discounted value of future estimated nuclear decommissioning costs, was included in nuclear AROs. The actual decommissioning costs may vary from the derived estimates because of, among other things, changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment. Utilities that own and operate nuclear plants are required to use different procedures in calculating nuclear decommissioning costs under GAAP than those that are used in calculating nuclear decommissioning costs when reporting to the NRC. The two sets of procedures produce different estimates for the costs of decommissioning primarily because of differences in the underlying assumptions. TVA bases its nuclear decommissioning estimates on site-specific cost studies. The most recent study was approved and implemented in September 2022. Site-specific cost studies are updated for each of TVA's nuclear units at least every five years. TVA maintains an NDT to provide funding for the ultimate decommissioning of its nuclear power plants. See Note 16 — Fair Value Measurements — Investment Funds . TVA monitors the value of its NDT and believes that, over the long term and before cessation of nuclear plant operations and commencement of decommissioning activities, adequate funds from investments and additional contributions, if necessary, will be available to support decommissioning. TVA's operating nuclear power units are licensed through various dates between 2033 - 2055, depending on the unit. It may be possible to extend the operating life of some of the units with approval from the NRC. See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations . Non-Nuclear Decommissioning . At September 30, 2023 , $3.7 billion, representing the discounted value of future estimated non-nuclear decommissioning costs, was included in non-nuclear AROs. This decommissioning cost estimate involves estimating the amount and timing of future expenditures and making judgments concerning whether or not such costs are considered a legal obligation. Estimating the amount and timing of future expenditures includes, among other things, making projections of the timing and duration of the asset retirement process and how costs will escalate with inflation. The actual decommissioning costs may vary from the derived estimates because of changes in current assumptions, such as the assumed dates of decommissioning, changes in regulatory requirements, changes in technology, and changes in the cost of labor, materials, and equipment. TVA updates its underlying assumptions for non-nuclear decommissioning AROs at least every five years. However, material changes in underlying assumptions that impact the amount and timing of undiscounted cash flows are continuously monitored and incorporated into ARO balances in the period identified. TVA maintains an ART to help fund the ultimate decommissioning of its non-nuclear power assets. See Note 16 — Fair Value Measurements — Investment Funds . Estimates involved in determining if additional funding will be made to the ART include inflation rate, rate of return projections on the fund investments, and the planned use of other sources to fund decommissioning costs. See Note 10 — Regulatory Assets and Liabilities — Non-Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations . Environmental Matters. TVA's generation activities, like those across the utility industry and in other industrial sectors, are subject to federal, state, and local environmental laws and regulations. Major areas of regulation affecting TVA's activities include air quality control, greenhouse gas ("GHG") emissions, water quality control, and management and disposal of solid and hazardous wastes. Regulations in these major areas continue to become more stringent and have, and will continue to have, a particular emphasis on climate change, renewable generation, and energy efficiency. TVA has incurred, and expects to continue to incur, substantial capital and operating and maintenance costs to comply with evolving environmental requirements primarily associated with, but not limited to, the operation of TVA's coal-fired and natural gas-fired generating units in general and emissions of pollutants from those units. Environmental requirements placed on the operation of coal-fired and other generating units using fossil fuels such as oil and natural gas will likely continue to become more restrictive over time. Failure to comply with environmental and safety requirements can result in enforcement actions and litigation, which can lead to the imposition of significant civil liability, including fines and penalties, criminal sanctions, and/or temporary or permanent closure of non-compliant facilities. Historical non-compliance can also lead to difficulty in renewing existing permits, as well as difficulty in obtaining permits to bring new generation facilities online. Other obstacles to renewal or permitting of new facilities include a proliferation of non-government organizations seeking to use litigation tools to delay or stop altogether permitting of new fossil fuel facilities in favor of renewable energy projects . From 1970 to 2023, TVA spent $6.8 billion to reduce emissions from its power plants, including $25 million, $16 million, and $17 million in 2023, 2022, and 2021, respectively, on clean air controls. TVA estimates that compliance with existing Clean Air Act ("CAA") requirements (excluding GHG requirements and new or proposed regulations) could lead to costs of $252 million from 2024 to 2028, which include existing controls capital projects and air operations and maintenance projects. TVA also estimates additional expenditures of $1.6 billion from 2024 to 2028 relating to TVA's CCR Program, as well as expenditures of $190 million from 2024 to 2028 relating to compliance with Clean Water Act ("CWA") requirements. Future costs could differ from these estimates if new environmental laws or regulations become applicable to TVA or the facilities it operates, or if existing environmental laws or regulations are revised or reinterpreted. There could also be costs that cannot reasonably be predicted at this time, due to uncertainty of actions, that could increase these estimates, and these estimates do not include expenditures expected to be incurred after 2028. Compliance with the EPA's CCR Rule required implementation of a groundwater monitoring program, additional engineering, and ongoing analysis. As further analyses are performed, including evaluation of monitoring results, there is the potential for additional costs for investigation and/or remediation. These costs cannot reasonably be predicted until a final remedy is selected where required. Liability for releases, natural resource damages, and required cleanup of hazardous substances is primarily regulated by the federal Comprehensive Environmental Response, Compensation, and Liability Act ("CERCLA"), the Resource Conservation and Recovery Act ("RCRA"), and other federal and parallel state statutes. In a manner similar to many other governmental entities, industries, and power systems, TVA has generated or used hazardous substances over the years. TVA operations at some facilities have resulted in releases of contaminants that TVA has addressed or is addressing consistent with state and federal requirements. At September 30, 2023 and 2022, TVA's estimated liability for required cleanup and similar environmental work for those sites for which sufficient information is available to develop a cost estimate was $16 million and $17 million, respectively, on a non-discounted basis, and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Additionally, the potential inclusion of new hazardous substances under CERCLA and RCRA jurisdiction could significantly affect TVA's future liability for remediating historical releases. Potential Liability Associated with Workers' Exposure to CCR Materials. In response to the 2008 ash spill at Kingston, TVA hired Jacobs Engineering Group, Inc. ("Jacobs") to oversee aspects of the cleanup. After the cleanup was completed, Jacobs was sued in the U.S. District Court for the Eastern District of Tennessee ("Eastern District") by employees of a contractor involved in the cleanup and family members of some of the employees. The plaintiffs alleged that Jacobs failed to take or provide proper health precautions and misled workers about the health risks associated with exposure to coal fly ash, which is a CCR material. The plaintiffs also alleged that exposure to the fly ash caused significant illnesses, including in some cases death. Other contractor employees and family members also filed lawsuits against Jacobs in the Eastern District. In the third quarter of 2023, Jacobs announced that it reached a global settlement that resolved all of these lawsuits. While TVA was not a party to any of these lawsuits, TVA may potentially have an indemnity obligation to reimburse Jacobs in some circumstances. TVA does not expect any potential liability to have a material adverse impact on its results of operations or financial condition. Legal Proceedings From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting TVA's activities, as a result of a catastrophic event or otherwise. General. At September 30, 2023, TVA had accrued $28 million of probable losses with respect to Legal Proceedings. Of the accrued amount, $10 million is included in Other long-term liabilities and $18 million is included in Accounts payable and accrued liabilities. No assurance can be given that TVA will not be subject to significant additional claims and liabilities. If actual liabilities significantly exceed the estimates made, TVA's results of operations, liquidity, and financial condition could be materially adversely affected. Environmental Agreements . On April 14, 2011, TVA entered into two substantively similar agreements, one with the EPA and the other with Alabama, Kentucky, North Carolina, Tennessee, and three environmental advocacy groups (collectively, the "Environmental Agreements"). To resolve alleged New Source Review claims, TVA committed under the Environmental Agreements to, among other things, take now-completed actions regarding coal units and invest $290 million in certain TVA environmental projects. Of this amount, TVA had spent approximately $283 million as of September 30, 2023. Additionally, TVA holds restricted cash in an interest earning trust to fund the remaining project commitments. Any interest earned through the trust must also be spent on agreed upon environmental projects. The total remaining committed costs, including interest earned through the trust, were approximately $8 million as of September 30, 2023. The liabilities related to the Environmental Agreements are included in Accounts payable and accrued liabilities and Other long-term liabilities on the September 30, 2023, Consolidated Balance Sheets. In conjunction with the approval of the Environmental Agreements, the TVA Board determined that it was appropriate to record TVA's obligations under the Environmental Agreements as regulatory assets, and they are included as such on the September 30, 2023, Consolidated Balance Sheets and will be recovered in rates in future periods. Case Involving Johnsonville Aeroderivative Combustion Turbine Project. On December 22, 2022, the Southern Environmental Law Center filed a lawsuit in the U.S. District Court for the Middle District of Tennessee on behalf of the Sierra Club, alleging that TVA violated the National Environmental Policy Act ("NEPA") in deciding to build a new aeroderivative combustion turbine project at its Johnsonville facility. The Sierra Club claims that TVA violated NEPA by failing to adequately analyze the climate consequences of the project, adequately address GHG mitigation in light of EOs to decarbonize the power sector, consider a reasonable range of alternatives to the project, and prepare an environmental impact statement ("EIS"). The Sierra Club requests the federal court to enter a declaratory judgment that TVA's environmental assessment ("EA") violates NEPA and that TVA's decision to issue a finding of no significant impact ("FONSI") was arbitrary, vacate the EA and FONSI, order TVA to prepare an EIS, and prohibit further construction and operation of the combustion turbines until TVA has complied with NEPA. On March 20, 2023, TVA moved to dismiss the case, and that motion remains pending before the court. In addition, on October 23, 2023, TVA and the plaintiffs filed cross-motions for summary judgment. TVA cannot predict the outcome of this litigation. Case Involving Cumberland Combined Cycle Plant. On June 14, 2023, Appalachian Voices, the Center for Biological Diversity, and the Sierra Club filed a lawsuit in the United States District Court for the Middle District of Tennessee alleging that TVA violated NEPA in deciding to build a 1,450 MW combined cycle plant at its Cumberland facility. The plaintiffs request the court, among other things, to enter a declaratory judgment that the Cumberland EIS violated NEPA and TVA's decision to issue the Cumberland Record of Decision was arbitrary, capricious, and/or not in accordance with law; enter a declaratory judgment that TVA’s failure to supplement the Cumberland EIS violated NEPA and was arbitrary, capricious, and/or not in accordance with law; vacate the Cumberland EIS and the Cumberland Record of Decision; order TVA to prepare a revised draft EIS or |
Related Parties
Related Parties | 12 Months Ended |
Sep. 30, 2023 | |
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 $6 million, $4 million, and $4 million in 2023, 2022, and 2021, 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 1.99 percent, 1.47 percent, and 1.64 percent for 2023, 2022, and 2021, 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, 2024, 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) 2023 2022 2021 Revenue from sales of electricity $ 120 $ 134 $ 109 Other income 282 296 280 Expenditures Operating expenses 234 228 214 Additions to property, plant, and equipment 8 11 10 Cash and cash equivalents 31 30 30 Accounts receivable, net 87 78 65 Investment funds 391 358 573 Long-term accounts receivable 38 43 31 Accounts payable and accrued liabilities 42 42 15 Long-term power bonds, net 1 1 1 Return on power program appropriation investment 6 4 4 |
Revenue
Revenue | 12 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | 17. Revenue Revenue from Sales of Electricity TVA's revenue from contracts with customers is primarily derived from the generation and sale of electricity to its customers and is included in Revenue from sales of electricity on the Consolidated Statements of Operations. Electricity is sold primarily to LPCs for distribution to their end-use customers. In addition, TVA sells electricity to directly served industrial companies, federal agencies, and others. LPC sales Approximately 92 percent of TVA's Revenue from sales of electricity for both the years ended September 30, 2023 and 2022, was from LPCs, which then distribute the power to their customers using their own distribution systems. Power is delivered to each LPC at delivery points within the LPC's service territory. TVA recognizes revenue when the customer takes possession of the power at the delivery point. For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. Directly served customers Directly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered. The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley, pandemic credits created to support directly served customers in response to the COVID-19 pandemic, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance. Other Revenue Other revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, REC sales, and certain other ancillary goods or services. Disaggregated Revenues During 2023, revenues generated from TVA's electricity sales were $11.9 billion and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for each of the last three years are detailed in the table below: Operating Revenues By State For the years ended September 30 (in millions) 2023 2022 2021 Alabama $ 1,731 $ 1,778 $ 1,508 Georgia 284 299 254 Kentucky 773 821 655 Mississippi 1,146 1,182 984 North Carolina 89 87 66 Tennessee 7,819 8,137 6,841 Virginia 46 48 42 Subtotal 11,888 12,352 10,350 Off-system sales 14 19 7 Revenue capitalized during pre-commercial plant operations (1) (3) — — Revenue from sales of electricity 11,899 12,371 10,357 Other revenue 155 169 146 Total operating revenues $ 12,054 $ 12,540 $ 10,503 Note (1) Represents revenue capitalized during pre-commercial operations at Colbert Combustion Turbine Units 9-11. TVA's operating revenues by customer type for each of the last three years are detailed in the table below: Operating Revenues by Customer Type For the years ended September 30 (in millions) 2023 2022 2021 Revenue from sales of electricity Local power companies $ 10,903 $ 11,291 $ 9,534 Industries directly served 864 926 707 Federal agencies and other 135 154 116 Revenue capitalized during pre-commercial plant operations (1) (3) — — Revenue from sales of electricity 11,899 12,371 10,357 Other revenue 155 169 146 Total operating revenues $ 12,054 $ 12,540 $ 10,503 Note (1) Represents revenue capitalized during pre-commercial operations at Colbert Combustion Turbine Units 9-11. TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a Partnership Agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA's failure to limit rate increases as provided for in the agreements going forward. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. The total wholesale bill credits to LPCs participating in the Partnership Agreement were $199 million, $199 million, and $189 million, respectively, for the years ended September 30, 2023, 2022, and 2021. In 2020, TVA provided participating LPCs a flexibility option, named Generation Flexibility, that allows them to locally generate or purchase up to approximately five percent of their average total hourly energy sales over a certain time period in order to meet their individual customers' needs. Revised flexibility agreements were made available to LPCs in August 2023 which permit projects to be located anywhere in TVA's service area, either connected to the LPC distribution system or TVA's transmission system, and make it easier for LPCs to partner in projects. As of September 30, 2023, 147 LPCs had signed the Partnership Agreement with TVA, and 89 LPCs had signed a Power Supply Flexibility Agreement. In previous years, the TVA Board approved pandemic credits, which were effective for 2021, 2022, and 2023. These credits provided an annual 2.5 percent monthly base rate credit and applied to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers. For the years ended September 30, 2023, 2022, and 2021, pandemic credits totaled $225 million and $228 million, and $221 million, respectively. The number of LPCs by contract arrangement, the revenues derived from such arrangements for 2023, and the percentage those revenues comprised of TVA's total operating revenues for 2023, are summarized in the table below: TVA Local Power Company Contracts At or for the year ended September 30, 2023 Contract Arrangements (1) Number of LPCs Revenue from Sales of Electricity to LPCs Percentage of Total Operating Revenues 20-year termination notice 147 $ 9,367 77.7 % 5-year termination notice 6 1,536 12.7 % Total 153 $ 10,903 90.4 % Note (1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in a contract with one of the LPCs with a five-year termination notice, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election. TVA's two largest LPCs — Memphis Light, Gas and Water Division ("MLGW") and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively. Sales to MLGW and NES accounted for nine percent and eight percent, respectively, of TVA's total operating revenues in 2023, 2022, and 2021. 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, 2023. 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 . Economic Development Incentives. |
Plant Closures (Text Block)
Plant Closures (Text Block) | 12 Months Ended |
Sep. 30, 2023 | |
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, and as of September 30, 2023, the facility was retired. 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. In January 2023, TVA issued its Record of Decision to retire the two coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028. 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 $659 million of accelerated depreciation since the second quarter of 2019. Of this amount, $177 million, $140 million, and $136 million were recognized for the years ended September 30, 2023, 2022, and 2021, respectively. TVA's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. TVA estimates it has recognized a cumulative $48 million of additional depreciation since January 2023, related to this decision. |
Leases (Text Block)
Leases (Text Block) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Assets Operating Operating lease assets, net of amortization $ 177 $ 155 Finance Finance leases 572 630 Total lease assets $ 749 $ 785 Liabilities Current Operating Accounts payable and accrued liabilities $ 71 $ 59 Finance Accounts payable and accrued liabilities 56 59 Non-current Operating Other long-term liabilities 93 93 Finance Finance lease liabilities 576 628 Total lease liabilities $ 796 $ 839 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 23 years. The components of lease costs were as follows: Lease Costs For the years ended September 30 (in millions) 2023 2022 2021 Operating lease costs (1) $ 69 $ 56 $ 52 Variable lease costs (1) 134 78 75 Short-term lease costs (1) 18 26 12 Finance lease costs Amortization of lease assets (2) 57 58 51 Interest on lease liabilities (3)(4) 43 42 39 Total finance lease costs 100 100 90 Total lease costs $ 321 $ 260 $ 229 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) 2023 2022 2021 Operating cash flows for operating leases $ 77 $ 57 $ 53 Operating cash flows for finance leases 43 42 39 Financing cash flows for finance leases 56 60 52 Lease assets obtained in exchange for lease obligations (non-cash) Operating leases (1) $ 84 $ 43 $ (22) Finance leases 3 — 233 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 terms in years and the weighted average discount rate for TVA's operating and financing leases were as follows: Weighted Averages At September 30 2023 2022 Weighted average remaining lease terms Operating leases 3 years 3 years Finance leases 10 years 11 years Weighted average discount rate (1) Operating leases 4.1% 1.5% Finance leases 21.6% 17.8% 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, 2023 : Future Minimum Lease Payments Minimum payments outstanding at September 30, 2023 (in millions) Operating leases 2024 $ 76 2025 51 2026 24 2027 9 2028 3 Thereafter 11 Minimum annual payments 174 Less: present value discount (10) Operating present value of net minimum lease payments $ 164 Finance leases 2024 $ 109 2025 107 2026 106 2027 104 2028 102 Thereafter 450 Minimum annual payments 978 Less: amount representing interest (346) Finance present value of net minimum lease payments $ 632 During the fourth quarter of 2023, TVA entered into a PPA with a term of 2 years that commenced in October 2023. Lease payments made over the term are expected to total approximately $43 million. TVA has entered into three 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 2024 and April 2025. Total capacity payments related to these batteries over the term of these PPAs are expected to total $394 million. |
Research and Development
Research and Development | 12 Months Ended |
Sep. 30, 2023 | |
Research and Development [Abstract] | |
Collaborative Arrangement Disclosure | 21 . Collaborative Arrangement In December 2022, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Hitachi Nuclear Energy ("GEH") entered into a multi-party collaborative arrangement to advance the global deployment of the GEH BWRX-300 small modular reactor ("SMR"). GEH is responsible for standard design development. Under the agreement, TVA will contribute up to $88 million for design costs incurred by GEH through 2026. At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits. Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statements of Operations in the period incurred. TVA recorded $31 million of expenses related to this agreement for the year ended September 30, 2023. TVA also had a $6 million letter of credit posted under this arrangement at September 30, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) | $ 500 | $ 1,108 | $ 1,512 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies [Policy Text Block] | 12 Months Ended |
Sep. 30, 2023 | |
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 ("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 (2023, 2022, 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 22 — 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) 2023 2022 Cash and cash equivalents $ 501 $ 500 Restricted cash and cash equivalents included in Other long-term assets 20 20 Total cash, cash equivalents, and restricted cash $ 521 $ 520 |
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. 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. Nuclear Fuel. 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. 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 $219 million in reimbursements from the DOE, which is recorded as a reduction in nuclear fuel inventory costs. At September 30, 2023, TVA recorded $11 million in Accounts receivable, net related to this agreement. 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, with the latest study implemented during the first quarter of 2022. Depreciation expense for the years ended September 30, 2023, 2022, and 2021 was $1.9 billion, $1.8 billion, and $1.4 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 3.14 percent for 2023, 2.98 percent for 2022, and 2.28 percent for 2021. Average depreciation rates by asset class are as follows: Property, Plant, and Equipment Depreciation Rates At September 30 2023 2022 2021 Asset Class Nuclear 2.73 2.72 2.38 Coal-fired (1) 4.98 4.27 1.95 Hydroelectric 1.82 1.85 1.60 Gas and oil-fired 3.17 3.38 2.98 Transmission 1.52 1.51 1.34 Other 4.43 3.64 7.12 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 $324 million and $178 million as of September 30, 2023 and 2022, 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 30 to 35 years. Amortization expense was $10 million, $6 million, and $8 million for the years ended September 30, 2023, 2022, and 2021, respectively, and accumulated amortization at September 30, 2023 and 2022 totaled $52 million and $42 million, respectively. At September 30, 2023, the estimated aggregate amortization expense for each of the next five years and thereafter is shown below: 2024 2025 2026 2027 2028 Thereafter Reacquired Rights $ 11 $ 12 $ 11 $ 12 $ 11 $ 267 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, Other long-term liabilities, and Finance lease liabilities related to these agreements were $390 million and $135 million for finance and operating leases, respectively, at September 30, 2023. The total lease obligations included in Accounts payable and accrued liabilities, 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. 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, 2023. 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 — Asset Retirement Obligations. |
Investment Funds | Investment Funds Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 22 — Commitments and Contingencies — Contingencies — Decommissioning Costs ), the Supplemental Executive Retirement Plan ("SERP") (see Note 20 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan ), the Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). 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, DCP, and RP 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, DCP, and RP funds are all classified as trading. |
Insurance | |
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. |
Pre-Commercial Plant Operations | Pre-Commercial Plant Operations As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on Colbert Combustion Turbine Units 9-10 in June 2023 and on Colbert Combustion Turbine Unit 11 in early July 2023. All three units became operational on July 25, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the year ended September 30, 2023. TVA also capitalized related fuel costs for this project of $3 million for the year ended September 30, 2023. |
Deferred Costs, Capitalized, _2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Derivatives, Methods of Accounting, Hedging Derivatives | Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. 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 |
Deferred Costs, Capitalized, _3
Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
Assets, Noncurrent [Abstract] | |
Financing Receivable | 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, 2023 and 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $7 million and $6 million, respectively. |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy | 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, 2023 and 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million and $13 million, respectively. See Note 12 — Other Long-Term Liabilities for information regarding the associated financing obligation. |
Credit Loss, Financial Instrument | 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) 2023 2022 EnergyRight ® loan reserve $ 1 $ 1 Economic development loan collective reserve 1 1 Economic development loan specific loan reserve 1 1 Total allowance for loan losses $ 3 $ 3 |
Service Agreements | 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 September 30, 2023 and 2022, prepayments of $25 million and $12 million, respectively, were recorded in Other current assets. |
Commodity contract derivative asset | Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. 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 |
Variable Interest Entities (Pol
Variable Interest Entities (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
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, 2023 and 2022, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets At September 30 (in millions) 2023 2022 Current liabilities Accrued interest $ 9 $ 10 Accounts payable and accrued liabilities 1 2 Current maturities of long-term debt of variable interest entities 35 39 Total current liabilities 45 51 Other liabilities Other long-term liabilities 17 18 Long-term debt, net Long-term debt of variable interest entities, net 933 968 Total liabilities $ 995 $ 1,037 |
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, 2023 | |
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 — Asset Retirement Obligations. |
Benefit Plans Benefit Plans (Po
Benefit Plans Benefit Plans (Policies) | 12 Months Ended |
Sep. 30, 2023 | |
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 discontinued this regulatory accounting practice as all such deferred costs were recovered as of September 30, 2023. 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 and 14 years for the post-retirement plans. 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, 2020, and 2021 with remaining amortization periods ranging from one to six 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, 2023 | |
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, 2023 | |
Plant Closure [Abstract] | |
Plant Retirement and Abandonment, Policy [Policy Text Block] | 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, and as of September 30, 2023, the facility was retired. 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. In January 2023, TVA issued its Record of Decision to retire the two coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028. 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 $659 million of accelerated depreciation since the second quarter of 2019. Of this amount, $177 million, $140 million, and $136 million were recognized for the years ended September 30, 2023, 2022, and 2021, respectively. TVA's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. TVA estimates it has recognized a cumulative $48 million of additional depreciation since January 2023, related to this decision. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies [Table Text Block] | 12 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 2021 Asset Class Nuclear 2.73 2.72 2.38 Coal-fired (1) 4.98 4.27 1.95 Hydroelectric 1.82 1.85 1.60 Gas and oil-fired 3.17 3.38 2.98 Transmission 1.52 1.51 1.34 Other 4.43 3.64 7.12 |
Accounts Receivable, Net Accoun
Accounts Receivable, Net Accounts Receivable, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Power receivables $ 1,627 $ 1,899 Other receivables 118 108 Accounts receivable, net (1) $ 1,745 $ 2,007 Note (1) Allowance for uncollectible accounts was less than $1 million at both September 30, 2023 and 2022, and therefore is not represented in the table above. |
Inventories, Net Inventories, N
Inventories, Net Inventories, Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Inventory, Net [Abstract] | |
Inventories, Net | The table below summarizes the types and amounts of TVA's inventories: Inventories, Net At September 30 (in millions) 2023 2022 Materials and supplies inventory $ 849 $ 808 Fuel inventory 313 303 Renewable energy certificates/emissions allowance inventory, net 15 18 Allowance for inventory obsolescence (69) (57) Inventories, net $ 1,108 $ 1,072 |
Deferred Costs, Capitalized, _4
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Other current assets consisted of the following: Other Current Assets At September 30 (in millions) 2023 2022 (1) Inventory work-in-progress $ 28 $ 18 Current portion of prepaid long-term service agreements 25 12 Commodity contract derivative assets 21 172 Prepaid software maintenance 18 14 Prepaid insurance 16 16 Other 26 25 Other current assets $ 134 $ 257 Note (1) At September 30, 2022, $18 million, $14 million, $16 million, and $12 million previously classified as Other (a component of Other current assets) have been reclassified to Inventory work-in-progress (a component of Other current assets), Prepaid software maintenance (a component of Other current assets), Prepaid insurance (a component of Other current assets), and Current portion of prepaid long-term service agreements (a component of Other current assets), respectively, to conform with current year presentation. |
Net Completed Plant Net Complet
Net Completed Plant Net Completed Plant (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Cost Accumulated Depreciation Cost Accumulated Depreciation Net Coal-fired (1) $ 18,525 $ 14,464 $ 4,061 $ 18,145 $ 13,649 $ 4,496 Gas and oil-fired 6,663 2,057 4,606 6,112 1,957 4,155 Nuclear 26,803 13,557 13,246 26,629 12,928 13,701 Transmission 9,375 3,359 6,016 8,919 3,301 5,618 Hydroelectric 4,109 1,241 2,868 3,987 1,192 2,795 Other electrical plant 1,798 780 1,018 1,724 807 917 Multipurpose dams 900 404 496 900 396 504 Other stewardship 26 9 17 26 9 17 Total $ 68,199 $ 35,871 $ 32,328 $ 66,442 $ 34,239 $ 32,203 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 (Tables)
Other Long-Term Assets (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Assets, Noncurrent [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) 2023 2022 Loans and other long-term receivables, net $ 97 $ 99 Prepaid long-term service agreements 64 74 EnergyRight ® receivables, net 47 49 Prepaid capital assets 28 — Commodity contract derivative assets 12 102 Other 82 70 Total other long-term assets $ 330 $ 394 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Current regulatory assets Unrealized losses on interest rate derivatives $ 31 $ 47 Unrealized losses on commodity derivatives 136 14 Fuel cost adjustment receivable 11 77 Total current regulatory assets 178 138 Non-current regulatory assets Retirement benefit plans deferred costs 1,440 1,839 Non-nuclear decommissioning costs 2,922 2,856 Unrealized losses on interest rate derivatives 272 479 Nuclear decommissioning costs 728 821 Unrealized losses on commodity derivatives 52 1 Other non-current regulatory assets 152 138 Total non-current regulatory assets 5,566 6,134 Total regulatory assets $ 5,744 $ 6,272 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 201 $ 218 Unrealized gains on commodity derivatives 21 173 Total current regulatory liabilities 222 391 Non-current regulatory liabilities Retirement benefit plans deferred credits 95 70 Unrealized gains on commodity derivatives 12 102 Total non-current regulatory liabilities 107 172 Total regulatory liabilities $ 329 $ 563 |
Asset Retirement Obligations _2
Asset Retirement Obligations Asset Retirement Obligations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Activity | Asset Retirement Obligation Activity (in millions) Nuclear Non-Nuclear Total Balance at September 30, 2021 $ 3,428 $ 3,574 $ 7,002 Settlements (2) (309) (311) 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) Settlements (8) (271) (279) Revisions in estimate 7 362 369 Accretion (recorded as regulatory asset) 166 71 237 Balance at September 30, 2023 $ 3,808 $ 3,681 $ 7,489 (1) Note (1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Other Long-Term Liabilities Oth
Other Long-Term Liabilities Other Long-Term Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities At September 30 (in millions) 2023 2022 (1) Interest rate swap liabilities $ 627 $ 851 Operating lease liabilities 93 93 Currency swap liabilities 131 228 Commodity contract derivative liabilities 52 1 EnergyRight ® financing obligation 55 58 Long-term deferred compensation 41 39 Advances for construction 56 53 Long-term deferred revenue 45 39 Other 111 123 Total other long-term liabilities $ 1,211 $ 1,485 Note |
Debt and Other Obligations Debt
Debt and Other Obligations Debt and Other Obligations (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 2023 2022 Gross amount outstanding - discount notes (in millions) $ 432 $ 1,173 Weighted average interest rate - discount notes 5.29 % 2.93 % |
Debt Securities Activity | The table below summarizes the long-term debt securities activity for the years ended September 30, 2023 and 2022. Debt Securities Activity For the years ended September 30 (in millions) 2023 2022 Issues 2022 Series A (1) $ — $ 500 2023 Series A (2) 1,000 — Discount on debt issues (8) (16) Total $ 992 $ 484 Redemptions/Maturities (3) 2009 Series B $ 29 $ 28 2012 Series A — 1,000 Total redemptions/maturities of power bonds 29 1,028 Debt of variable interest entities 39 43 Total redemptions/maturities of debt $ 68 $ 1,071 Notes (1) The 2022 Series A Bonds were issued at 96.786 percent of par. (2) The 2023 Series A Bonds were issued at 99.187 percent of par. (3) All redemptions were at 100 percent of par. |
Debt Outstanding | Total debt outstanding at September 30, 2023 and 2022, consisted of the following: Short-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity 2023 2022 Short-term debt, net of discounts $ 432 $ 1,172 Current maturities of long-term debt of VIEs issued at par 35 39 Current maturities of power bonds issued at par 880591EF5 12/15/2023 3.770% 1 1 880591EF5 6/15/2024 3.770% 21 28 880591ER9 9/15/2024 2.875% 1,000 — Total current maturities of power bonds issued at par 1,022 29 Total current debt outstanding, net $ 1,489 $ 1,240 Long-Term Debt At September 30 (in millions) CUSIP or Other Identifier Maturity Coupon 2023 Par 2022 Par Stock Exchange Listings 880591ER9 9/15/2024 2.875% $ — $ 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) 305 (1) 279 (1) New York, Luxembourg 880591DV1 7/15/2033 4.700% 472 472 New York, Luxembourg 880591EF5 6/15/2034 3.770% 139 160 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) 183 (1) 168 (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% 500 500 New York 880591EZ1 3/15/2028 3.875% 1,000 — New York Subtotal 17,970 17,950 Unamortized discounts, premiums, issue costs, and other (126) (124) Total long-term outstanding power bonds, net 17,844 17,826 Long-term debt of VIEs, net 933 968 Total long-term debt, net $ 18,777 $ 18,794 Notes (1) Includes total net exchange gain from currency transactions of $109 million and $150 million at September 30, 2023 and 2022, 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) 2024 2025 2026 2027 2028 Thereafter Total Long-term power bonds including current maturities (1) $ 1,022 $ 1,022 $ 1,370 $ 1,020 $ 1,272 $ 13,395 $ 19,101 Short-term debt (2) 432 — — — — — 432 Notes (1) Long-term power bonds do not include non-cash items of foreign currency exchange gain of $109 million, unamortized debt issue costs of $41 million, or net discount on sale of Bonds of $85 million. (2) Short-term debt does not include the non-cash item of discount on issuance of discount notes of less than $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, 2023 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2025 $ 500 $ 302 $ — $ 198 March 2026 150 38 — 112 September 2026 1,000 99 — 901 March 2027 1,000 96 — 904 Total $ 2,650 $ 535 $ — $ 2,115 |
Risk Management Activities an_2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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 (in millions) Derivatives in Cash Flow Hedging Relationship Objective of Hedge Transaction Accounting for Derivative 2023 2022 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 $ 99 $ (157) 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 2023 2022 Currency swaps $ 42 $ (93) 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 $20 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 (in millions) Derivative Type Objective of Derivative Accounting for Derivative Instrument 2023 2022 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 $ (45) $ (103) 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) (348) 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, 2023 and 2022. (2) Of the amount recognized in 2023, $301 million and $47 million were reported in Fuel expense and Purchased power expense, respectively. 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 (in millions) 2023 2022 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (72) Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66) $ (130) Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123) £150 million Sterling (69) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(65) (110) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (499) Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473) $ (672) Accounts payable and accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630) $476 million notional (159) Other current assets $3; Accrued interest $(8); Other long-term liabilities $(154) (233) Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(221) Commodity contract derivatives 31 Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) 145 Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1) Commodity derivatives under the FHP (186) Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51) 115 Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8) |
Currency Swaps Outstanding | TVA had the following currency swaps outstanding at September 30, 2023: 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 6.587% 2003 £150 million 2043 4.962% |
Commodity Contract Derivatives | Commodity Contract Derivatives At September 30 2023 2022 Number of Contracts Notional Amount Fair Value (MtM) Number of Contracts Notional Amount Fair Value ( MtM ) (in millions) Natural gas contract derivatives 54 318 million mmBtu $ 31 44 296 million mmBtu $ 145 |
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) 2023 2022 Assets Interest rate swaps $ 4 $ — Commodity contract derivatives 33 152 Commodity derivatives under the FHP (2) — 123 Total derivatives subject to master netting or similar arrangement $ 37 $ 275 Liabilities Currency swaps $ 141 $ 240 Interest rate swaps (3) 662 905 Commodity contract derivatives 2 7 Commodity derivatives under the FHP (2) 186 8 Total derivatives subject to master netting or similar arrangement $ 991 $ 1,160 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, 2023 or 2022. (2) At September 30, 2023, the gross derivative asset and gross derivative liability was $26 million and $212 million, respectively, with offsetting amounts for each totaling $26 million. |
Schedule of Derivative Instruments Commodity Contracts under FHP | Commodity Derivatives under Financial Hedging Program (1) At September 30 2023 2022 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas Swap contracts 221 388 million mmBtu $ (186) 225 256 million mmBtu $ 115 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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
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) (1) For the years ended September 30 (in millions) Fund Financial Statement Presentation 2023 2022 NDT Regulatory assets (2) $ 162 $ (396) ART Regulatory assets (3) 96 (190) SERP Other income (expense) 6 (19) DCP Other income (expense) 1 (5) Notes (1) Employee contributions to the RP began in the second quarter of 2023. As of September 30, 2023, the unrealized losses for the RP were less than $1 million, and therefore were not represented in the table above. (2) Includes $27 million of unrealized gains and $138 million of unrealized losses related to NDT equity securities (excluding commingled funds) for the years ended September 30, 2023 and 2022, respectively. | |
Fair Value Measurements | Fair Value Measurements At September 30, 2023 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 608 $ — $ — $ 608 Government debt securities (1)(2) 287 60 — 347 Corporate debt securities (3) — 300 — 300 Mortgage and asset-backed securities — 36 — 36 Institutional mutual funds 288 — — 288 Forward debt securities contracts — 11 — 11 Cash equivalents and other short-term investments (2) 104 166 — 270 Private equity funds measured at net asset value (4) — — — 583 Private real asset funds measured at net asset value (4) — — — 387 Private credit funds measured at net asset value (4) — — — 158 Commingled funds measured at net asset value (4) — — — 1,135 Total investments 1,287 573 — 4,123 Interest rate swaps — 4 — 4 Commodity contract derivatives — 33 — 33 Total $ 1,287 $ 610 $ — $ 4,160 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (5) $ — $ 141 $ — $ 141 Interest rate swaps — 662 — 662 Commodity contract derivatives — 2 — 2 Commodity derivatives under the FHP — 186 — 186 Total $ — $ 991 $ — $ 991 Notes (1) Includes securities of government-sponsored entities. (2) There are $287 million of U.S. Treasury Securities in Level 1 Government debt securities and $104 million of U.S. Treasury Securities in Level 1 Cash equivalents and other short-term investments for a total of $391 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) Includes both U.S. and foreign debt. (4) Certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. 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. (5) 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 . 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)(2)(3) 297 35 — 332 Corporate debt securities (3)(4) — 282 — 282 Mortgage and asset-backed securities — 52 — 52 Institutional mutual funds 242 — — 242 Forward debt securities contracts — 4 — 4 Cash equivalents and other short-term investments (2)(3) 61 118 — 179 Private equity funds measured at net asset value (5) — — — 487 Private real asset funds measured at net asset value (5) — — — 369 Private credit funds measured at net asset value (5) — — — 103 Commingled funds measured at net asset value (3)(5) — — — 1,087 Total investments 1,134 491 — 3,671 Commodity contract derivatives — 152 — 152 Commodity derivatives under the FHP — 123 — 123 Total $ 1,134 $ 766 $ — $ 3,946 Quoted Prices in Active Markets for Identical Liabilities Significant Other Significant Total Liabilities Currency swaps (6) $ — $ 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 securities of government-sponsored entities. (2) There are $297 million of U.S. Treasury Securities in Level 1 Government debt securities and $61 million of U.S. Treasury Securities in Level 1 Cash equivalents and other short-term investments for a total of $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) At September 30, 2022, $61 million of the Level 1 Government debt securities have been reclassified to Level 1 Cash equivalents and other short-term investments. At September 30, 2022, $1 million of the Level 2 Government debt securities, $1 million of the Level 2 Corporate debt securities, and $116 million of the Commingled funds measured at net asset value have been reclassified to Level 2 Cash equivalents and other short-term investments. (4) Includes both U.S. and foreign debt. (5) Certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. 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. (6) 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, 2023 and 2022, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At September 30, 2023 At September 30, 2022 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 59 $ 55 $ 62 $ 62 Loans and other long-term receivables, net (including current portion) Level 2 104 96 105 96 EnergyRight ® financing obligations (including current portion) Level 2 69 81 72 81 Unfunded loan commitments Level 2 — 1 — — Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 18 19 20 22 Long-term outstanding power bonds, net (including current maturities) Level 2 18,866 17,963 17,856 18,070 Long-term debt of VIEs, net (including current maturities) Level 2 968 927 1,007 989 |
Other Income (Expense), Net Oth
Other Income (Expense), Net Other Income (Expense), Net (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 2021 Bellefonte $ — $ — $ (28) Interest income 34 15 12 External services 15 16 13 Gains (losses) on investments 13 (17) 16 Miscellaneous (1) (7) — Total other income, net $ 61 $ 7 $ 13 |
Benefit Plans Benefit Plans (Ta
Benefit Plans Benefit Plans (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Retirement Benefits [Abstract] | |
Obligations and Funded Status | The changes in plan obligations, assets, and funded status for the years ended September 30, 2023 and 2022, were as follows: Obligations and Funded Status For the years ended September 30 (in millions) 812,900,000 Pension Benefits Other Post-Retirement Benefits 809,400,000 2023 2022 2023 2022 Change in benefit obligation Benefit obligation at beginning of year $ 10,536 $ 13,348 $ 388 $ 498 Service cost 32 53 10 17 Interest cost 568 378 18 15 Plan participants' contributions 4 5 — — Collections (1) — — 13 15 Actuarial (gain) loss (284) (2,509) (44) (114) Net transfers (to) from variable fund/401(k) plan 4 11 — — Expenses paid (7) (6) — — Benefits paid (754) (744) (38) (43) Benefit obligation at end of year 10,099 10,536 347 388 Change in plan assets Fair value of net plan assets at beginning of year 8,094 9,110 — — Actual return on plan assets 482 (590) — — Plan participants' contributions 4 5 — — Collections (1) — — 13 15 Net transfers (to) from variable fund/401(k) plan 4 11 — — Employer contributions 306 308 25 28 Expenses paid (7) (6) — — Benefits paid (754) (744) (38) (43) Fair value of net plan assets at end of year 8,129 8,094 — — Funded status $ (1,970) $ (2,442) $ (347) $ (388) 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, 2023 and 2022, 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 2023 2022 2023 2022 Regulatory assets (liabilities) $ 1,440 $ 1,839 $ (95) $ (70) Accounts payable and accrued liabilities (6) (6) (21) (22) Pension and post-retirement benefit obligations (1) (1,964) (2,436) (326) (366) Note (1) The table above excludes $237 million and $270 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, 2023 and 2022, 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, 2023 and 2022, consisted of the following: Post-Retirement Benefit Costs Deferred as Regulatory Assets (Liabilities) At September 30 (in millions) Pension Benefits Other Post-Retirement Benefits 2023 2022 2023 2022 Unrecognized prior service credit $ (336) $ (424) $ (59) $ (76) Unrecognized net loss (gain) 1,776 2,186 (36) 6 Amount capitalized due to actions of regulator — 77 — — Total regulatory assets (liabilities) $ 1,440 $ 1,839 $ (95) $ (70) |
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) 2023 2022 Accumulated benefit obligation $ 10,069 $ 10,508 Fair value of net plan assets 8,129 8,094 |
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, 2023, 2022, and 2021 were as follows: Components of Net Periodic Benefit Cost For the years ended September 30 (in millions) Pension Benefits Other Post-Retirement Benefits 2023 2022 2021 2023 2022 2021 Service cost $ 32 $ 53 $ 57 $ 10 $ 17 $ 18 Interest cost 568 378 368 18 15 16 Expected return on plan assets (492) (435) (493) — — — Amortization of prior service credit (88) (93) (97) (17) (17) (18) Recognized net actuarial loss (gain) 135 392 452 (2) 5 11 Total net periodic benefit cost as actuarially determined 155 295 287 9 20 27 Amount expensed due to actions of regulator 77 13 19 — — — Net periodic benefit cost $ 232 $ 308 $ 306 $ 9 $ 20 $ 27 |
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 2023 Pension Cost (in millions) Impact on 2023 Projected Benefit Obligation (in millions) Discount rate (0.25) % $ 12 $ 236 Rate of return on plan assets (0.25) % 19 N/A Cost of living adjustments 0.25 % 24 165 |
Asset Holdings and Fair Value Measurements | At September 30, 2023 and 2022, the asset holdings of TVARS included the following: Asset Holdings of TVARS Plan Assets at September 30 Asset Category Target Allocation 2023 2022 Growth assets 17 % 22 % 20 % Defensive growth assets 30 % 33 % 34 % Defensive assets 33 % 17 % 18 % Inflation-sensitive assets 20 % 28 % 28 % Total 100 % 100 % 100 % Fair Value Measurements The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2023: TVA Retirement System At September 30, 2023 (in millions) Total (1)(2) Quoted Prices in Active Markets for Identical Significant Other Significant Assets Equity securities $ 732 $ 731 $ — $ 1 Preferred securities 4 — 4 — Debt securities Corporate debt securities 1,109 — 1,107 2 Residential mortgage-backed securities 330 — 323 7 Debt securities issued by U.S. Treasury 602 602 — — Debt securities issued by foreign governments 12 — 10 2 Asset-backed securities 173 — 130 43 Debt securities issued by state/local governments 21 — 21 — Commercial mortgage-backed securities 113 — 108 5 Commingled funds measured at net asset value (3) Equity 360 — — — Debt 544 — — — Blended 101 — — — Institutional mutual funds 363 363 — — Cash equivalents and other short-term investments 315 51 264 — Private credit funds measured at net asset value (3) 694 — — — Private equity funds measured at net asset value (3) 1,769 — — — Private real asset funds measured at net asset value (3) 1,162 — — — Securities lending collateral 181 — 181 — Derivatives Futures 1 1 — — Swaps 17 — 17 — Foreign currency forward receivable 2 — 2 — Total assets $ 8,605 $ 1,748 $ 2,167 $ 60 Liabilities Derivatives Futures $ 5 $ 5 $ — $ — Swaps 26 — 26 — Options 1 1 — — Securities sold under agreements to repurchase 96 — 96 — Total liabilities $ 128 $ 6 $ 122 $ — Notes (1) Excludes approximately $167 million in net payables associated with security purchases and sales and various other payables. (2) Excludes a $181 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 or its equivalent ("alternative investments") have not been classified in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. 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 funds measured at net asset value (3) 522 — — — Private equity funds measured at net asset value (3) 1,454 — — — Private real asset funds 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 or its equivalent ("alternative investments") have not been classified in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. |
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, 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 Net realized/unrealized gains (losses) 1 Purchases, sales, issuances, and settlements (net) 2 Transfers in and/or out of Level 3 (5) Balance at September 30, 2023 $ 60 |
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, 2023 (in millions) Pension Benefits (1) Other Post-Retirement Benefits 2024 $ 809 $ 22 2025 814 21 2026 812 21 2027 812 21 2028 809 21 2029 - 2033 3,918 119 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) 2023 2022 Accounts payable and accrued liabilities $ 29 $ 29 Post-retirement and post-employment benefit obligations 237 270 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Unfunded loan commitments | At September 30, 2023, TVA's commitments under unfunded loan commitments were $1 million for 2024. TVA has no commitments under unfunded loan commitments for 2025 through 2028. |
Related Parties Related Parties
Related Parties Related Parties (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 2021 Revenue from sales of electricity $ 120 $ 134 $ 109 Other income 282 296 280 Expenditures Operating expenses 234 228 214 Additions to property, plant, and equipment 8 11 10 Cash and cash equivalents 31 30 30 Accounts receivable, net 87 78 65 Investment funds 391 358 573 Long-term accounts receivable 38 43 31 Accounts payable and accrued liabilities 42 42 15 Long-term power bonds, net 1 1 1 Return on power program appropriation investment 6 4 4 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 30, 2023 | |
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. |
Leases (Table Text Block)
Leases (Table Text Block) | 12 Months Ended |
Sep. 30, 2023 | |
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) 2023 2022 Assets Operating Operating lease assets, net of amortization $ 177 $ 155 Finance Finance leases 572 630 Total lease assets $ 749 $ 785 Liabilities Current Operating Accounts payable and accrued liabilities $ 71 $ 59 Finance Accounts payable and accrued liabilities 56 59 Non-current Operating Other long-term liabilities 93 93 Finance Finance lease liabilities 576 628 Total lease liabilities $ 796 $ 839 |
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 23 years. The components of lease costs were as follows: Lease Costs For the years ended September 30 (in millions) 2023 2022 2021 Operating lease costs (1) $ 69 $ 56 $ 52 Variable lease costs (1) 134 78 75 Short-term lease costs (1) 18 26 12 Finance lease costs Amortization of lease assets (2) 57 58 51 Interest on lease liabilities (3)(4) 43 42 39 Total finance lease costs 100 100 90 Total lease costs $ 321 $ 260 $ 229 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) 2023 2022 2021 Operating cash flows for operating leases $ 77 $ 57 $ 53 Operating cash flows for finance leases 43 42 39 Financing cash flows for finance leases 56 60 52 Lease assets obtained in exchange for lease obligations (non-cash) Operating leases (1) $ 84 $ 43 $ (22) Finance leases 3 — 233 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 terms in years and the weighted average discount rate for TVA's operating and financing leases were as follows: Weighted Averages At September 30 2023 2022 Weighted average remaining lease terms Operating leases 3 years 3 years Finance leases 10 years 11 years Weighted average discount rate (1) Operating leases 4.1% 1.5% Finance leases 21.6% 17.8% 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, 2023 : Future Minimum Lease Payments Minimum payments outstanding at September 30, 2023 (in millions) Operating leases 2024 $ 76 2025 51 2026 24 2027 9 2028 3 Thereafter 11 Minimum annual payments 174 Less: present value discount (10) Operating present value of net minimum lease payments $ 164 Finance leases 2024 $ 109 2025 107 2026 106 2027 104 2028 102 Thereafter 450 Minimum annual payments 978 Less: amount representing interest (346) Finance present value of net minimum lease payments $ 632 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - General (Details) $ in Millions | 12 Months Ended | ||||
Sep. 30, 2023 USD ($) People | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2020 USD ($) | Sep. 30, 2016 USD ($) | |
Accounting Policies [Abstract] | |||||
Cash and Cash Equivalents, at Carrying Value | $ 501 | $ 500 | |||
Reimbursements from DOE | 219 | ||||
Restricted Cash and Investments, Noncurrent | 20 | 20 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 521 | 520 | $ 518 | $ 521 | |
Accounts receivable from DOE | 11 | ||||
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 | $ 501 | 500 | |||
Restricted Cash and Investments, Noncurrent | $ 20 | $ 20 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Reclassificatons (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Reclassifications | |
Finance Lease, Liability | $ 632 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Portion at Other than Fair Value Measurement [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | $ 104 | $ 105 |
Financing Receivable, after Allowance for Credit Loss | 96 | 96 |
Allowance for uncollectible accounts - receivables | 1 | 1 |
Loans and Leases Receivable, Allowance | $ 3 | $ 3 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant, and Equipment, and Depreciation | |||
Depreciation | $ 1,900 | $ 1,800 | $ 1,400 |
Composite depreciation rate for completed plant | 3.14% | 2.98% | 2.28% |
Reacquired Rights | $ 324 | $ 178 | |
Amortization of Reacquired Rights | $ 10 | 6 | $ 8 |
Capitalized software amortization period | 7 years | ||
Accelerated depreciation | $ 177 | 140 | $ 136 |
Accumulated Amortization of Reacquired Rights | 52 | $ 42 | |
Amortization Reacquired Rights, Year 1 | 11 | ||
Amortization Reacquired Rights, Year 2 | 12 | ||
Amortization Reacquired Rights, Year 3 | 11 | ||
Amortization Reacquired Rights, Year 4 | 12 | ||
Amortization Reacquired Rights, Year 5 | 11 | ||
Amortization Reacquired Rights, Year Thereafter | 267 | ||
Reimbursements from DOE | 219 | ||
Accounts receivable from DOE | $ 11 | ||
Nuclear | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 2.73% | 2.72% | 2.38% |
Coal-fired | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 4.98% | 4.27% | 1.95% |
Hydroelectric | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 1.82% | 1.85% | 1.60% |
Gas and oil-fired | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 3.17% | 3.38% | 2.98% |
Transmission | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 1.52% | 1.51% | 1.34% |
Other | |||
Property, Plant, and Equipment, and Depreciation | |||
Composite depreciation rate for completed plant | 4.43% | 3.64% | 7.12% |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Energy Prepayment Obligations and Discounts on Sales (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | |||
Finance lease under PPA | $ 390 | $ 425 | |
Operating lease under PPA | 135 | 133 | |
Operating cash flows for operating leases | $ 77 | $ 57 | $ 53 |
Summary of Significant Accou_10
Summary of Significant Accounting Policies - Pre-commercial Plant Ops (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue capitalized during pre-commercial operations | $ 3 | $ 0 | $ 0 |
Fuel capitalized during pre-commercial ops | $ 3 |
Impact of New Accounting Stan_2
Impact of New Accounting Standards and Interpretations (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | $ 177 | $ 155 |
Accounts Receivable, Net Acco_2
Accounts Receivable, Net Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Power receivables | $ 1,627 | $ 1,899 | |
Other receivables | 118 | 108 | |
Allowance for uncollectible accounts | (1) | [1] | (1) |
Accounts receivable, net | $ 1,745 | $ 2,007 | |
[1]Allowance for uncollectible accounts was less than $1 million at both September 30, 2023 and 2022, and therefore is not represented in the table above. |
Inventories, Net Inventories,_2
Inventories, Net Inventories, Net (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Inventories, Net | ||
Materials and supplies inventory | $ 849 | $ 808 |
Fuel inventory | 313 | 303 |
Renewable energy certificates/emissions allowance inventory, net | 15 | 18 |
Allowance for inventory obsolescence | (69) | (57) |
Inventories, net | $ 1,108 | $ 1,072 |
Deferred Costs, Capitalized, _5
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Inventory, Work in Process, Gross | $ 28 | $ 18 |
Prepaid long-term service agreements, current | 25 | 12 |
Other current assets | 134 | 257 |
Prepaid Insurance | 16 | 16 |
Other Assets, Miscellaneous, Current | 26 | 25 |
Commodity Contract Asset, Current | 21 | 172 |
Prepaid software maintenance | $ 18 | $ 14 |
Net Completed Plant Net Compl_2
Net Completed Plant Net Completed Plant (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Completed Plant | ||
Completed plant cost | $ 68,199 | $ 66,442 |
Accumulated depreciation | 35,871 | 34,239 |
Net completed plant | 32,328 | 32,203 |
Coal-fired | ||
Completed Plant | ||
Completed plant cost | 18,525 | 18,145 |
Accumulated depreciation | 14,464 | 13,649 |
Net completed plant | 4,061 | 4,496 |
Gas and oil-fired | ||
Completed Plant | ||
Completed plant cost | 6,663 | 6,112 |
Accumulated depreciation | 2,057 | 1,957 |
Net completed plant | 4,606 | 4,155 |
Nuclear | ||
Completed Plant | ||
Completed plant cost | 26,803 | 26,629 |
Accumulated depreciation | 13,557 | 12,928 |
Net completed plant | 13,246 | 13,701 |
Transmission | ||
Completed Plant | ||
Completed plant cost | 9,375 | 8,919 |
Accumulated depreciation | 3,359 | 3,301 |
Net completed plant | 6,016 | 5,618 |
Hydroelectric | ||
Completed Plant | ||
Completed plant cost | 4,109 | 3,987 |
Accumulated depreciation | 1,241 | 1,192 |
Net completed plant | 2,868 | 2,795 |
Other electrical plant | ||
Completed Plant | ||
Completed plant cost | 1,798 | 1,724 |
Accumulated depreciation | 780 | 807 |
Net completed plant | 1,018 | 917 |
Multipurpose dams | ||
Completed Plant | ||
Completed plant cost | 900 | 900 |
Accumulated depreciation | 404 | 396 |
Net completed plant | 496 | 504 |
Other stewardship | ||
Completed Plant | ||
Completed plant cost | 26 | 26 |
Accumulated depreciation | 9 | 9 |
Net completed plant | $ 17 | $ 17 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Assets, Noncurrent [Abstract] | ||
Financing Receivable, after Allowance for Credit Loss, Noncurrent | $ 97 | $ 99 |
Financing Receivable, after Allowance for Credit Loss, Current | 7 | 6 |
Commodity contract derivative assets | 12 | 102 |
Prepaid long-term service agreements, noncurrent | 64 | 74 |
Prepaid capital assets | 28 | 0 |
Other Assets, Miscellaneous, Noncurrent | 82 | 70 |
Restricted Cash and Investments, Noncurrent | 20 | 20 |
Total other long-term assets | 330 | 394 |
Other Long-Term Assets | ||
Loans and Leases Receivable, Allowance | 3 | 3 |
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 55 | 62 |
Other Assets, Miscellaneous, Current | 26 | 25 |
Accounts Receivable [Member] | ||
Other Long-Term Assets | ||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 12 | 13 |
Other Noncurrent Assets [Member] | ||
Other Long-Term Assets | ||
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | 47 | 49 |
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 | $ 1 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | $ 107 | $ 172 | |
Current regulatory assets | 178 | 138 | |
Regulatory assets | 5,566 | 6,134 | |
Net unrealized gains (losses) | (52) | (1) | |
Regulatory Assets | 5,744 | 6,272 | |
Current regulatory liabilities | 222 | 391 | |
Regulatory asset amount expensed | 31 | 70 | $ 72 |
Regulatory Liabilities | 329 | 563 | |
Change in nuclear decommissioning costs | 93 | ||
Regulatory Asset | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 152 | 138 | |
Unrealized losses on interest rate derivatives | |||
Regulatory Assets and Liabilities | |||
Current regulatory assets | 31 | 47 | |
Regulatory assets | 272 | 479 | |
Non-nuclear decommissioning costs | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 2,922 | 2,856 | |
Pension Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 1,440 | 1,839 | |
Unrealized gains/losses on commodity derivatives | |||
Regulatory Assets and Liabilities | |||
Current regulatory assets | 136 | 14 | |
Regulatory assets | 52 | 1 | |
Deferred Fuel Costs [Member] | |||
Regulatory Assets and Liabilities | |||
Current regulatory assets | 11 | 77 | |
Nuclear decommissioning costs | |||
Regulatory Assets and Liabilities | |||
Regulatory assets | 728 | 821 | |
Unrealized gains/losses on commodity derivatives | |||
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | 12 | 102 | |
Current regulatory liabilities | 21 | 173 | |
Deferred other post-retirement benefits cost | |||
Regulatory Assets and Liabilities | |||
Non-current regulatory liabilities | 95 | 70 | |
Fuel cost adjustment tax equivalents | |||
Regulatory Assets and Liabilities | |||
Current regulatory liabilities | $ 201 | $ 218 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Millions | 12 Months Ended | 348 Months Ended | |||||
Sep. 30, 2053 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2052 | Sep. 30, 2013 | Sep. 30, 2012 | |
Liabilities | |||||||
Current maturities of long-term debt of variable interest entities issued at par | $ 35 | $ 39 | |||||
Liabilities, Current | 4,873 | 4,645 | |||||
Other long-term liabilities | 1,211 | 1,485 | |||||
Long-term debt of variable interest entities, net | 933 | 968 | |||||
VIE Financing | |||||||
Face Amount | $ 40 | $ 360 | |||||
Rate of Return SHLLC | 7% | ||||||
Accrued interest | $ 9 | 10 | |||||
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months | 1 | ||||||
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 | 13 | ||||||
Other Long-term Debt, Maturity, Year One | 35 | ||||||
Other Long-term Debt, Maturity, Year Two | 37 | ||||||
Other Long-term Debt, Maturity, Year Three | 39 | ||||||
Other Long-term Debt, Maturity, Year Four | 40 | ||||||
Other Long-term Debt, Maturity, Year Five | 42 | ||||||
Other Long-term Debt, Maturity, Year Six | 781 | ||||||
Long-term debt of variable interest entities (including current maturities) | 927 | 989 | |||||
Amount of letters of credit outstanding | 6 | ||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 126 | 124 | |||||
Variable Interest Entity, Primary Beneficiary [Member] | |||||||
VIE Financing | |||||||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | 6 | ||||||
Portion at Other than Fair Value Measurement [Member] | |||||||
VIE Financing | |||||||
Long-term debt of variable interest entities (including current maturities) | 968 | 1,007 | |||||
Lagoon Creek [Member] | |||||||
VIE Financing | |||||||
Amortization of reacquired rights | 3 | ||||||
Lagoon Creek [Member] | Scenario, Forecast | |||||||
VIE Financing | |||||||
Amortization of reacquired rights | $ 2 | $ 5 | |||||
Letter of Credit | |||||||
VIE Financing | |||||||
Amount of letters of credit outstanding | 535 | 704 | |||||
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 | 45 | 51 | |||||
Other long-term liabilities | 17 | 18 | |||||
VIE Financing | |||||||
Accounts Payable and Accrued Liabilities | 1 | 2 | |||||
Liabilities | 995 | 1,037 | $ 1,000 | ||||
Interest Expense | $ 48 | $ 50 | $ 52 |
Asset Retirement Obligations _3
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Liabilities Settled [Line Items] | ||||
Increase in ARO liability | $ 327 | |||
Change in estimate | [1] | 369 | $ 247 | |
Balance | [1] | 7,489 | 7,162 | $ 7,002 |
Asset Retirement Obligation, Liabilities Settled | [1] | 279 | 311 | |
Accretion (recorded as regulatory asset) | [1] | 237 | 224 | |
Asset Retirement Obligation, Current | 272 | 275 | ||
Amortization and Depreciation of Decontaminating and Decommissioning Assets | 188 | 137 | 72 | |
Total ARO change due to CCR | 458 | 82 | ||
Change due to cost study | 58 | |||
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 | 60 | 30 | ||
Change in cost estimates at Allen | 15 | |||
Changes in closure liabilities | 15 | |||
Increase in Asset Retirement Obligation, Revisions in Estimate | 9 | |||
Nuclear | ||||
Liabilities Settled [Line Items] | ||||
Change in estimate | 7 | 61 | ||
Balance | 3,808 | 3,643 | 3,428 | |
Asset Retirement Obligation, Liabilities Settled | 8 | 2 | ||
Accretion (recorded as regulatory asset) | 166 | 156 | ||
Non-nuclear | ||||
Liabilities Settled [Line Items] | ||||
Change in estimate | 362 | 186 | ||
Balance | 3,681 | 3,519 | $ 3,574 | |
Asset Retirement Obligation, Liabilities Settled | 271 | 309 | ||
Accretion (recorded as regulatory asset) | $ 71 | $ 68 | ||
[1](1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Other Long-Term Liabilities O_2
Other Long-Term Liabilities Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Portion at Other than Fair Value Measurement [Member] | |||
Derivative, Fair Value, Net [Abstract] | |||
EnergyRight financing obligation | $ (69) | $ (72) | |
Long-term debt of variable interest entities (including current maturities) | 968 | 1,007 | |
Interest rate swaps | 662 | 905 | |
Currency swap liabilities | 141 | 240 | [1] |
EnergyRight financing obligation | (81) | (81) | |
Deferred Revenue, Noncurrent | 45 | 39 | |
Non-current regulatory liabilities | 107 | 172 | |
Total other long-term liabilities | 1,211 | $ 1,485 | |
Finance Lease, Liability | $ 632 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | |
Deferred Compensation Liability, Current | $ (65) | $ (53) | |
Current portion of energy prepayment obligations | 21 | 16 | |
Fair value | 52 | 1 | |
Long-term debt of variable interest entities (including current maturities) | 927 | 989 | |
Other long-term liabilities | |||
Other Long-Term Liabilities | |||
Interest rate swaps | 627 | 851 | |
Currency swap liabilities | 131 | 228 | |
Derivative, Fair Value, Net [Abstract] | |||
EnergyRight financing obligation | (55) | (58) | |
Environmental agreements liability | 41 | 39 | |
Customer Advances for Construction | 56 | 53 | |
Other | 111 | 123 | |
Accounts payable and accrued liabilities | |||
Derivative, Fair Value, Net [Abstract] | |||
EnergyRight financing obligation | (14) | (14) | |
Customer Advances for Construction | $ 39 | $ 33 | |
[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, 2023 | 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, 2023 | Sep. 30, 2022 | 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 | 19 | $ 22 | ||||
Long-term debt of variable interest entities (including current maturities) | 927 | $ 989 | ||||
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, 2023 | 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, 2023 | Sep. 30, 2022 | |
Short-Term Debt, Gross [Line Items] | ||
Short-Term Debt | $ 432 | $ 1,172 |
Short-term Borrowings Gross | $ 432 | $ 1,173 |
Weighted average interest rate - discount notes | 5.29% | 2.93% |
Foreign Currency Transaction Gain (Loss), Unrealized | $ 109 | $ 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, 2023 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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2013 | Jan. 17, 2012 | |
Debt Instrument | |||||
Face Amount | $ 40 | $ 360 | |||
Discount on debt issues | (8) | $ (16) | |||
Redemptions/Maturities of variable interest entities | 39 | 43 | $ 41 | ||
Redemptions/Maturities of power bonds | $ 29 | $ 1,028 | $ 1,860 | ||
Percent of par value | 99.187% | 96.786% | |||
Total Current maturities of power bonds issued at par | $ 1,022 | $ 29 | |||
Interest rate | 7.10% | ||||
Short-term debt, net of discounts | 432 | 1,172 | |||
Current maturities of long-term debt of variable interest entities issued at par | 35 | 39 | |||
Long-term power bonds, net | 17,844 | 17,826 | |||
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, 2023 | ||||
880591EF5 (6.15.21) | |||||
Debt Instrument | |||||
Total Current maturities of power bonds issued at par | $ 21 | 28 | |||
Interest rate | 3.77% | ||||
Debt Instrument, Maturity Date | Jun. 15, 2024 | ||||
880591ER9 | |||||
Debt Instrument | |||||
Total Current maturities of power bonds issued at par | $ 1,000 | $ 0 | |||
Interest rate | 2.875% | ||||
Debt Instrument, Maturity Date | Sep. 15, 2024 | ||||
Total | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Period, End Date | 68 | 1,071 | |||
Percent of par value | 100% | ||||
Debt of variable interest entities | |||||
Debt Instrument | |||||
Redemptions/Maturities of variable interest entities | $ 39 | $ 43 | |||
2009 Series B | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 29 | 28 | |||
2012 Series A | |||||
Debt Instrument | |||||
Redemptions/Maturities of power bonds | 0 | 1,000 | |||
Total | |||||
Debt Instrument | |||||
Debt Securities Issues | 992 | 484 | |||
880591EY4 | |||||
Debt Instrument | |||||
Face Amount | $ 0 | 500 | |||
Interest rate | 4.25% | ||||
Debt Instrument, Maturity Date | Sep. 15, 2052 | ||||
Long-term power bonds, net | $ 500 | 500 | |||
880591EX6 | |||||
Debt Instrument | |||||
Interest rate | 1.50% | ||||
Debt Instrument, Maturity Date | Sep. 15, 2031 | ||||
Long-term power bonds, net | $ 500 | 500 | |||
880591EZ1 | |||||
Debt Instrument | |||||
Interest rate | 3.875% | ||||
Debt Instrument, Maturity Date | Mar. 15, 2028 | ||||
Long-term power bonds, net | $ 1,000 | $ 0 |
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, 2023 | Sep. 30, 2022 | Jan. 17, 2012 | ||
Short-term debt | ||||
Coupon rate | 7.10% | |||
Short-term debt, net of discounts | $ 432 | $ 1,172 | ||
Current maturities of long-term debt of variable interest entities issued at par | 35 | 39 | ||
Total Current maturities of power bonds issued at par | 1,022 | 29 | ||
Current maturities of power bonds | 1,022 | 29 | ||
Total current debt outstanding, net | 1,489 | 1,240 | ||
Long-term debt | ||||
Long-term power bonds, net | 17,844 | 17,826 | ||
Long-term power bonds | [1] | 17,970 | 17,950 | |
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (126) | (124) | ||
Long-term debt of variable interest entities, net | 933 | 968 | ||
Total long-term debt, net | $ 18,777 | 18,794 | ||
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 | $ 139 | 160 | ||
880591ER9 | ||||
Short-term debt | ||||
Coupon rate | 2.875% | |||
Debt Instrument, Maturity Date | Sep. 15, 2024 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 0 | 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 | $ 305 | 279 | ||
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 | $ 183 | 168 | ||
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 | 500 | ||
880591EZ1 | ||||
Short-term debt | ||||
Coupon rate | 3.875% | |||
Debt Instrument, Maturity Date | Mar. 15, 2028 | |||
Long-term debt | ||||
Long-term power bonds, net | $ 1,000 | $ 0 | ||
[1]Includes total net exchange gain from currency transactions of $109 million and $150 million at September 30, 2023 and 2022 |
Debt and Other Obligations De_9
Debt and Other Obligations Debt and Other Obligations - Maturities Due (Details) - USD ($) $ in Millions | 12 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2029 | Sep. 30, 2028 | Sep. 30, 2027 | Sep. 30, 2026 | Sep. 30, 2025 | |
Debt Instrument | |||||||
2018 | $ 1,022 | ||||||
2019 | 1,022 | ||||||
2020 | 1,370 | ||||||
2021 | 1,020 | ||||||
2022 | 1,272 | ||||||
Thereafter | 13,395 | ||||||
Total | 19,101 | ||||||
Short-Term Debt | 432 | $ 1,172 | |||||
Net discount on sale of Bonds | 85 | ||||||
Foreign Currency Transaction Gain (Loss), Unrealized | 109 | 150 | |||||
Short-term Borrowings Gross | 432 | $ 1,173 | |||||
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 | $ 41 |
Debt and Other Obligations D_10
Debt and Other Obligations Debt and Other Obligations - Credit Facility Agreements (Details) | Sep. 30, 2023 USD ($) Credit_facilities | Sep. 30, 2022 USD ($) |
Credit Facility Agreements | ||
Amount of letters of credit outstanding | $ 6,000,000 | |
Letters of Credit Outstanding, Amount 3 | 99,000,000 | |
Letter of Credit Outstanding, Amount 2 | 96,000,000 | |
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 | 904,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity 2 | 112,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity 3 | 198,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity 1 | 901,000,000 | |
Line of Credit Facility, Remaining Borrowing Capacity | 2,115,000,000 | |
Letter of Credit | ||
Credit Facility Agreements | ||
Amount of letters of credit outstanding | 535,000,000 | $ 704,000,000 |
Letters of Credit Outstanding, Amount 4 | 38,000,000 | |
Letters of Credit Outstanding, Amount 1 | $ 302,000,000 |
Debt and Other Obligations D_11
Debt and Other Obligations Debt and Other Obligations - Lease/Leasebacks (Details) - USD ($) $ in Millions | 12 Months Ended | 348 Months Ended | |
Sep. 30, 2053 | Sep. 30, 2023 | Sep. 30, 2052 | |
Lagoon Creek [Member] | |||
Sale Leaseback Transaction [Line Items] | |||
Amortization of reacquired rights | $ 3 | ||
Lagoon Creek [Member] | Scenario, Forecast | |||
Sale Leaseback Transaction [Line Items] | |||
Amortization of reacquired rights | $ 2 | $ 5 | |
Kemper/Lagoon Creek Leasehold Interests | |||
Sale Leaseback Transaction [Line Items] | |||
Leasehold Interests | 155 | ||
Lagoon Creek [Member] | |||
Sale Leaseback Transaction [Line Items] | |||
Leasehold Interests | 78 | ||
Kemper [Member] | |||
Sale Leaseback Transaction [Line Items] | |||
Leasehold Interests | $ 77 |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Interest rate swaps | $ 662,000,000 | $ 905,000,000 | |
Ineffective portion excluded from testing | 0 | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | 20,000,000 | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 42,000,000 | (93,000,000) | $ 97,000,000 |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ 99,000,000 | $ (157,000,000) | $ 126,000,000 |
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, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Derivative | ||
Change in Unrealized gains (losses) on Interest Rate Derivatives | $ (240,000,000) | $ (728,000,000) |
Fair value | 52,000,000 | 1,000,000 |
Interest rate swaps | 662,000,000 | $ 905,000,000 |
Unrealized gains/losses on derivatives | $ 0 | |
Commodity Contract Derivatives | ||
Derivative | ||
Number of contracts | 54 | 44 |
Notional amount | 318,000,000 | 296,000,000 |
Fair value | $ 31,000,000 | $ 145,000,000 |
Commodity Contract under FHP | ||
Derivative | ||
Number of contracts | 221 | 225 |
Notional amount | 388 | 256 |
Fair value | $ (186,000,000) | $ 115,000,000 |
Commodity Contract under FHP | Fuel Expense | ||
Derivative | ||
Unrealized gains/losses on derivatives | 301,000,000 | 38,000,000 |
Commodity Contract under FHP | Purchased Power Expense | ||
Derivative | ||
Unrealized gains/losses on derivatives | 47,000,000 | 9,000,000 |
Accounts payable and accrued liabilities | Commodity Contract Derivatives | ||
Derivative | ||
Fair value | (1,000,000) | (6,000,000) |
Accounts payable and accrued liabilities | Commodity Contract under FHP | ||
Derivative | ||
Fair value | (135,000,000) | (8,000,000) |
Other Regulatory Assets (Liabilities) | Interest Rate Swap | ||
Derivative | ||
Unrealized gains/losses on derivatives | (45,000,000) | (103,000,000) |
Other Regulatory Assets (Liabilities) | Commodity Contract under FHP | ||
Derivative | ||
Unrealized gains/losses on derivatives | $ (348,000,000) | $ 47,000,000 |
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, 2023 | Sep. 30, 2022 |
Derivatives, Fair Value | ||
Amount of letters of credit outstanding | $ 6 | |
Fair value | 52 | $ 1 |
250 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (72) | (130) |
250 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (66) | (123) |
250 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (6) | (7) |
150 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (69) | (110) |
150 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (65) | (105) |
150 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (4) | (5) |
$1.0 billion notional interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | (499) | (672) |
$1.0 billion notional interest rate swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (473) | (630) |
$1.0 billion notional interest rate swap | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 1 | |
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (9) | |
$1.0 billion notional interest rate swap | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (27) | (33) |
Commodity contract derivatives | ||
Derivatives, Fair Value | ||
Fair value | 31 | 145 |
Commodity contract derivatives | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value | ||
Fair value | 12 | 34 |
Commodity contract derivatives | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | (1) |
Commodity contract derivatives | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 21 | 118 |
Commodity contract derivatives | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | (6) |
$14 million notional | ||
Derivatives, Fair Value | ||
Fair value | (159) | (233) |
$14 million notional | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (154) | (221) |
$14 million notional | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 3 | |
$14 million notional | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (3) | |
$14 million notional | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (8) | (9) |
Commodity Contract under FHP | ||
Derivatives, Fair Value | ||
Derivative Liability, Fair Value, Gross Liability | 212 | |
Fair value | (186) | 115 |
Commodity Contract under FHP | Other Noncurrent Assets [Member] | ||
Derivatives, Fair Value | ||
Fair value | 68 | |
Commodity Contract under FHP | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (51) | |
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 | $ (135) | (8) |
Commodity Contract under FHP | Accounts Receivable [Member] | ||
Derivatives, Fair Value | ||
Fair value | $ 1 |
Risk Management Activities an_6
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Currency Swaps Outstanding (Details) £ in Millions | Sep. 30, 2023 GBP (£) |
250 million Sterling currency swap | |
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 | 6.587% |
150 million Sterling currency swap | |
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 | 4.962% |
Risk Management Activities an_7
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Derivatives Under Financial Trading Program (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Derivative | ||
Unrealized gains (losses) deferred as regulatory liabilities (assets) | $ 52 | $ 1 |
Risk Management Activities an_8
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Counterparty Credit Risk (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 USD ($) Customers | Sep. 30, 2022 USD ($) | |
Derivative | ||
Receivables from power sales | $ | $ 1,627 | $ 1,899 |
Credit of Customers | ||
Derivative | ||
Number of customers that represent the percent of sales | Customers | 2 |
Risk Management Activities an_9
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Offsetting Assets [Line Items] | ||
Amount of letters of credit outstanding | $ 6 | |
Letter of Credit | ||
Offsetting Assets [Line Items] | ||
Amount of letters of credit outstanding | 535 | $ 704 |
Commodity Contract under FHP | ||
Offsetting Assets [Line Items] | ||
Gross Amounts of Recognized Assets, subject to master netting or similar arrangements | $ 26 |
Risk Management Activities a_10
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Offsetting Liabilities [Line Items] | ||
Gross Amounts Offset in the Balance Sheet | $ 26 | |
Amount of letters of credit outstanding | 6 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 991 | $ 1,160 |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 37 | 275 |
Commodity contract derivatives | 33 | 152 |
Currency Swap | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 141 | 240 |
Commodity Contract under FHP | ||
Offsetting Liabilities [Line Items] | ||
Gross Amounts of Recognized Liabilities, subject to master netting or similar arrangements | 212 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 186 | 8 |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 0 | 123 |
Interest Rate Swap | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 662 | 905 |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 4 | 0 |
Commodity Contract Derivatives | ||
Offsetting Liabilities [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 2 | 7 |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 33 | 152 |
Letter of Credit | ||
Offsetting Liabilities [Line Items] | ||
Amount of letters of credit outstanding | $ 535 | $ 704 |
Risk Management Activities a_11
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Other Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 11 | $ 4 |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 991 | 1,160 |
Fair Value, Inputs, Level 2 | ||
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 11 | $ 4 |
Risk Management Activities a_12
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Collateral (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Derivative | ||
Amount of letters of credit outstanding | $ 6 | |
Likely collateral obligation increase if downgraded | 22 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 991 | $ 1,160 |
Collateralized Securities [Member] | ||
Derivative | ||
Collateral obligations | 429 | |
Credit Risk | ||
Derivative | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 987 | |
Letter of Credit | ||
Derivative | ||
Amount of letters of credit outstanding | 535 | $ 704 |
Interest swap collateral | ||
Derivative | ||
Amount of letters of credit outstanding | $ 509 |
Risk Management Activities a_13
Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details) | 12 Months Ended |
Sep. 30, 2023 | |
Derivative | |
Two Largest Customer Percentage of Total Operating Revenue | 17% |
Moody's, A1 Rating | |
Derivative | |
Natural Gas Banking Counterparties Credit Rating | A1 |
Moody's, B1 Rating | |
Derivative | |
Natural Gas Banking Counterparties Credit Rating | B1 |
Moody's, A2 Rating | |
Derivative | |
Banking Counterparties Credit Rating | A2 |
Risk Management Activities a_14
Risk Management Activities and Derivative Transactions (Details) - Commodity Derivatives Under the FHP $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Increase (Decrease) in Derivative Assets | $ 301 |
Fair Value Measurements - Inves
Fair Value Measurements - Investments (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 USD ($) Units | Sep. 30, 2022 USD ($) | |
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Long-term Investments | $ 4,123 | $ 3,671 |
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 | $ 8,605 | 8,566 |
Number of readily available quoted exchange prices for the investments | 0 | |
NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Long-term Investments | $ 2,800 | |
ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Long-term Investments | 1,200 | |
LTDCP | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | 1 | (5) |
SERP | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | 6 | (19) |
ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | 96 | (190) |
Debt and Equity Securities, Unrealized Gain (Loss) | 13 | (44) |
NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Unrealized gains (losses) on investments | 162 | (396) |
Debt and Equity Securities, Unrealized Gain (Loss) | 27 | $ (138) |
Equity Funds [Member] | NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 237 | |
Real Estate Funds [Member] | NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 123 | |
Credit [Member] | NDT | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 81 | |
Defensive growth assets | ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 124 | |
Private real estate funds | ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 60 | |
Private Credit [Member] | ART | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Commitments, Fair Value Disclosure | 43 | |
RP | ||
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items] | ||
Debt and Equity Securities, Unrealized Gain (Loss) | $ 1 |
Fair Value Measurements - Nonpe
Fair Value Measurements - Nonperformance Risk (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Nonperformance Risk | |
Derivative credit valuation adjustment, assets | $ 1 |
Derivative credit valuation adjustment, liabilities | $ 1 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | $ 52 | $ 1 | |
Investments | |||
Government debt securities | 347 | 332 | |
Corporate debt securities | 300 | 282 | |
Mortgage and asset-backed securities | 36 | 52 | |
Institutional mutual funds | 288 | 242 | |
Forward debt securities contracts - asset | 11 | 4 | |
Cash, Cash Equivalents, and Short-term Investments | 270 | 179 | |
Private equity funds measured at net asset value | 583 | 487 | |
Private real estate measured at net asset value | 387 | 369 | |
Private credit measured at net asset value | 158 | 103 | |
Commingled funds measured at net asset value | 1,135 | 1,087 | |
Total investments | 4,123 | 3,671 | |
Interest Rate Derivative Assets, at Fair Value | 4 | ||
Commodity contract derivatives | 33 | 152 | |
Total | 4,160 | 3,946 | |
Liabilities | |||
Currency swaps | 141 | 240 | [1] |
Interest rate swaps | 662 | 905 | |
Commodity contract derivatives | 2 | 7 | |
Total | 991 | 1,160 | |
Equity Securities, FV-NI, Noncurrent | 608 | 534 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 991 | 1,160 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 37 | 275 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash, Cash Equivalents, and Short-term Investments | 270 | 179 | |
Government debt securities reclassed | 1 | ||
Corporate debt securities reclassed | 1 | ||
Commingled funds reclassed | 116 | ||
Commodity Contract under FHP | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value | (186) | 115 | |
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 186 | 8 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 0 | 123 | |
Fair Value, Inputs, Level 1 | |||
Investments | |||
Government debt securities | 287 | 297 | |
Corporate debt securities | 0 | 0 | |
Mortgage and asset-backed securities | 0 | 0 | |
Institutional mutual funds | 288 | 242 | |
Forward debt securities contracts - asset | 0 | 0 | |
Cash, Cash Equivalents, and Short-term Investments | 104 | 61 | |
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 | 1,287 | 1,134 | |
Interest Rate Derivative Assets, at Fair Value | 0 | ||
Commodity contract derivatives | 0 | 0 | |
Total | 1,287 | 1,134 | |
Liabilities | |||
Currency swaps | 0 | 0 | |
Interest rate swaps | 0 | 0 | |
Commodity contract derivatives | 0 | 0 | |
Total | 0 | 0 | |
Equity Securities, FV-NI, Noncurrent | 608 | 534 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash, Cash Equivalents, and Short-term Investments | 104 | 61 | |
Fair Value, Inputs, Level 1 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 0 | 0 | |
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 0 | ||
Fair Value, Inputs, Level 2 | |||
Investments | |||
Government debt securities | 60 | 35 | |
Corporate debt securities | 300 | 282 | |
Mortgage and asset-backed securities | 36 | 52 | |
Institutional mutual funds | 0 | 0 | |
Forward debt securities contracts - asset | 11 | 4 | |
Cash, Cash Equivalents, and Short-term Investments | 166 | 118 | |
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 | 573 | 491 | |
Interest Rate Derivative Assets, at Fair Value | 4 | ||
Commodity contract derivatives | 33 | 152 | |
Total | 610 | 766 | |
Liabilities | |||
Currency swaps | 141 | 240 | |
Interest rate swaps | 662 | 905 | |
Commodity contract derivatives | 2 | 7 | |
Total | 991 | 1,160 | |
Equity Securities, FV-NI, Noncurrent | 0 | 0 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash, Cash Equivalents, and Short-term Investments | 166 | 118 | |
Fair Value, Inputs, Level 2 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 186 | 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 | |
Cash, Cash Equivalents, and Short-term Investments | 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 | |
Interest Rate Derivative Assets, at Fair Value | 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 Measurement Inputs and Valuation Techniques [Line Items] | |||
Cash, Cash Equivalents, and Short-term Investments | 0 | 0 | |
Fair Value, Inputs, Level 3 | Commodity Contract under FHP | |||
Liabilities | |||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | $ 0 | 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, 2023 | Sep. 30, 2022 |
Fair Value Measurements | ||
Commodity contract derivatives, assets | $ 33 | $ 152 |
Commodity contract derivatives, liabilities | 2 | 7 |
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, 2023 | Sep. 30, 2022 |
Estimated Values of Financial Instruments (Level 2 Valuation) | ||
EnergyRight receivables (including current portion) | $ 55 | $ 62 |
Financing Receivable, after Allowance for Credit Loss | 96 | 96 |
EnergyRight® financing obligations (including current portion) | 81 | 81 |
Unfunded Loan Commitments | 1 | 0 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 19 | 22 |
Long-term outstanding power bonds (including current maturities), net | 17,963 | 18,070 |
Long-term debt of variable interest entities (including current maturities) | 927 | 989 |
Portion at Other than Fair Value Measurement [Member] | ||
Estimated Values of Financial Instruments (Level 2 Valuation) | ||
EnergyRight receivables (including current portion) | 59 | 62 |
Financing Receivable, after Allowance for Credit Loss | 104 | 105 |
EnergyRight® financing obligations (including current portion) | 69 | 72 |
Unfunded Loan Commitments | 0 | 0 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 18 | 20 |
Long-term outstanding power bonds (including current maturities), net | 18,866 | 17,856 |
Long-term debt of variable interest entities (including current maturities) | $ 968 | $ 1,007 |
Proprietary Capital (Details)
Proprietary Capital (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Appropriation Investment | |||
Amount of appropriation investment that was repaid | $ 1,000 | ||
Balance at beginning of year | 15,505 | $ 14,465 | $ 12,932 |
Net income (loss) | 500 | 1,108 | 1,512 |
Return on power program appropriation investment | (6) | (4) | (4) |
Balance at end of year | 16,056 | 15,505 | $ 14,465 |
Net proprietary capital at September 30 | $ 16,056 | $ 15,505 | |
Computed average interest rate payable | 1.99% | 1.47% | 1.64% |
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 | 14,800 | 13,689 | 12,177 |
Net income (loss) | 508 | 1,115 | 1,520 |
Return on power program appropriation investment | (6) | (4) | (4) |
Balance at end of year | 15,302 | 14,800 | 13,689 |
New Accounting Standard - CECL | (4) | ||
Nonpower Programs Appropriation Investment, Net | |||
Appropriation Investment | |||
Balance at beginning of year | 533 | 540 | 548 |
Net income (loss) | (8) | (7) | (8) |
Return on power program appropriation investment | 0 | 0 | 0 |
Balance at end of year | 525 | 533 | 540 |
New Accounting Standard - CECL | 0 | ||
Affiliated Entity | |||
Appropriation Investment | |||
Return on power program appropriation investment | $ (6) | $ (4) | $ (4) |
Proprietary Capital - Accumulat
Proprietary Capital - Accumulated Other Comprehensive Income (Loss) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2023 USD ($) | |
Accumulated Other Comprehensive Income (Loss) | |
Reclassification to earnings from cash flow hedges in the next twelve months | $ (20) |
Other Income (Expense), Net O_2
Other Income (Expense), Net Other Income (Expense), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other Income (Expense), Net | |||
Interest income | $ 34 | $ 15 | $ 12 |
External services | 15 | 16 | 13 |
Gain (Loss) on Investments | 13 | (17) | 16 |
Miscellaneous | (1) | (7) | 0 |
Other income (expense), net | 61 | 7 | 13 |
Sale of Bellefonte | $ 0 | $ 0 | $ (28) |
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 | |
Defined Benefit Plan Disclosure | |||
Fixed and variable fund annual maximum contribution | $ 10,000 | ||
Defined contribution plan contribution amount | $ 105,000,000 | $ 97,000,000 | $ 92,000,000 |
Minimum | |||
Defined Benefit Plan Disclosure | |||
Threshold for Deferral of Actuarial Gain/Loss Under Corridor Approach | 10% |
Benefit Plans Obligations and F
Benefit Plans Obligations and Funded Status (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | ||
Pension Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation | $ 10,536 | $ 13,348 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | 10,099 | 10,536 | ||
Service cost | 32 | 53 | $ 57 | |
Plan participants' contributions | 4 | 5 | ||
Change in Plan Assets due to Collections | 0 | 0 | ||
Collections | [1] | 0 | 0 | |
Actuarial loss (gain) | 284 | (2,509) | ||
Net transfers from variable fund/401(k) plan | 4 | 11 | ||
Expenses paid | (7) | (6) | ||
Benefits paid | 754 | 744 | ||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 8,129 | 8,094 | ||
Change in plan assets | ||||
Fair value of net plan assets | 8,094 | 9,110 | ||
Actual return on plan assets | 482 | (590) | ||
Employer contributions | 306 | 308 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Funded status | $ (1,970) | $ (2,442) | ||
Discount rate | 5.95% | 5.60% | 2.90% | |
Amount of defined benefit plan actuarial gain (loss) from discount rate change | $ (334) | $ (3,500) | ||
Amount of defined benefit plan actuarial gain (loss) from change in mortality assumption | (61) | (78) | ||
Amount of defined benefit plan actuarial gain (loss) from change in demograhic and plan experience | 12 | 527 | ||
Amount of defined benefit plan actuarial gain (loss) from assumption change in elections | 411 | |||
Other Post-retirement Benefits | ||||
Change in benefit obligation | ||||
Benefit obligation | 347 | 388 | ||
Postconfirmation, Other Postretirement Obligations | 388 | 498 | ||
Service cost | 10 | 17 | $ 18 | |
Plan participants' contributions | 0 | 0 | ||
Change in Plan Assets due to Collections | 13 | 15 | ||
Collections | [1] | 13 | 15 | |
Actuarial loss (gain) | 44 | 114 | ||
Net transfers from variable fund/401(k) plan | 0 | 0 | ||
Expenses paid | 0 | 0 | ||
Benefits paid | 38 | 43 | ||
Actuarial Gain (Loss) from Changes in Discount Rate | 17 | 168 | ||
Actuarial Gain (Loss) Reflecting Plan Experience for Contribution Costs | 27 | |||
Actuarial Gain (Loss) from Delaying post-Medicare Trend Rate Assumption | 31 | |||
Actuarial Gain (Loss) from pre-Medicare Trend Rate Assumptions | 67 | |||
Actuarial Gain (Loss) from Changes in Mortality Assumptions | 18 | |||
Change in plan assets | ||||
Fair value of net plan assets | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Employer contributions | 25 | 28 | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Funded status | $ (347) | $ (388) | ||
Discount rate | 6.05% | 5.65% | 305% | |
[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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure | ||||
Regulatory assets | $ (5,566) | $ (6,134) | ||
Non-current regulatory liabilities | (107) | (172) | ||
Accounts payable and accrued liabilities | (2,618) | (2,466) | ||
Pension and post-retirement benefit obligations | (2,527) | (3,072) | ||
Postemployment benefits liability, noncurrent | 266 | 299 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Amount capitalized due to actions of regulator | 0 | 77 | ||
Regulatory assets | (1,440) | (1,839) | ||
Accounts payable and accrued liabilities | (6) | (6) | ||
Pension and post-retirement benefit obligations | [1] | (1,964) | (2,436) | |
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Amount capitalized due to actions of regulator | 0 | 0 | ||
Regulatory assets | (95) | (70) | ||
Non-current regulatory liabilities | (95) | |||
Accounts payable and accrued liabilities | (21) | (22) | ||
Pension and post-retirement benefit obligations | [1] | (326) | (366) | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | ||||
Defined Benefit Plan Disclosure | ||||
Postemployment benefits liability, noncurrent | $ 237 | $ 270 | $ 340 | |
[1]The table above excludes $237 million and $270 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2023 and 2022, respectively. |
Benefit Plans Postretirement Be
Benefit Plans Postretirement Benefit Costs Deferred as Regulatory Assets (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Defined Benefit Plan Disclosure | ||
Regulatory assets | $ (5,566) | $ (6,134) |
Non-current regulatory liabilities | 107 | 172 |
Pension Benefits | ||
Defined Benefit Plan Disclosure | ||
Unrecognized prior service cost (credit) | (336) | (424) |
Unrecognized net loss | 1,776 | 2,186 |
Amount capitalized due to actions of regulator | 0 | (77) |
Regulatory assets | (1,440) | (1,839) |
Other Post-retirement Benefits | ||
Defined Benefit Plan Disclosure | ||
Unrecognized prior service cost (credit) | (59) | (76) |
Unrecognized net loss | (36) | 6 |
Amount capitalized due to actions of regulator | 0 | 0 |
Regulatory assets | (95) | $ (70) |
Non-current regulatory liabilities | $ 95 |
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, 2023 | Sep. 30, 2022 |
Defined Benefit Plan Disclosure | ||
Accumulated benefit obligation | $ 10,069 | $ 10,508 |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 8,129 | 8,094 |
Fair value of net plan assets | $ 8,094 | $ 9,110 |
Benefit Plans Components of Net
Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | $ 32 | $ 53 | $ 57 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditInterestCostStatementOfIncome | 568 | 378 | 368 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditExpectedReturnLossStatementOfIncome | (492) | (435) | (493) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfPriorServiceCostCreditStatementOfIncome | (88) | (93) | (97) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfGainLossStatementOfIncome | 135 | 392 | 452 |
Net periodic benefit cost as acutarially determined | 155 | 295 | 287 |
Amount expensed due to actions of regulator | (77) | (13) | (19) |
Total net period benefit cost | 232 | 308 | 306 |
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Service cost | 10 | 17 | 18 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditInterestCostStatementOfIncome | 18 | 15 | 16 |
Expected return on plan assets | 0 | 0 | 0 |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfPriorServiceCostCreditStatementOfIncome | (17) | (17) | (18) |
DefinedBenefitPlanNetPeriodicBenefitCostCreditAmortizationOfGainLossStatementOfIncome | (2) | (5) | (11) |
Net periodic benefit cost as acutarially determined | 9 | 20 | 27 |
Amount expensed due to actions of regulator | 0 | 0 | 0 |
Total net period benefit cost | $ 9 | $ 20 | $ 27 |
Benefit Plans Actuarial Assumpt
Benefit Plans Actuarial Assumptions (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2024 | |
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 0.25% | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Discount rate | 5.60% | 2.90% | 2.75% | |
Discount rate | 5.95% | 5.60% | 2.90% | |
Rate of compensation increase | 4.05% | 3.32% | ||
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate | 5.13% | 5.14% | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate | 5.14% | 5.14% | 5.15% | |
Expected return on plan assets | 6.50% | 5.75% | 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 | 3.32% | 3.37% | ||
COLA percentage increase (decrease) | 6% | |||
Actual Return on Plan Assets | 6.13% | (6.64%) | 20.30% | |
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Discount rate | 5.65% | 3.05% | 3.05% | |
Discount rate | 6.05% | 5.65% | 305% | |
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% | |
Minimum | ||||
Defined Benefit Plan Disclosure | ||||
Rate of compensation increase | 3% | |||
Maximum | ||||
Defined Benefit Plan Disclosure | ||||
Rate of compensation increase | 5.50% | |||
Scenario, Forecast | Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Cost of Living Adjustment Assumption Next Fiscal Year | 4.05% | |||
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 | 2026 | 2024 | 2024 | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2026 | 2026 | ||
Pre-Medicare Eligible per Capita Claim Costs | Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Current health care cost trend rate | 7% | 6.25% | 6.50% | |
Ultimate health care cost trend rate | 5% | 5% | 5% | |
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2034 | 2031 | 2027 | |
Initial health care cost trend rate | $ 0.0750 | $ 0.0700 | ||
Defined Benefit Plan, Year ultimate trend rate is reached for net periodic benefit | 2031 | 2027 | ||
Pre-Medicare Eligible per Capita Contributions | Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Current health care cost trend rate | 5% | 8.51% | 11.93% | |
Ultimate health care cost trend rate | 5% | 5% | 5% | |
Defined Benefit Plan, Year ultimate trend rate is reached per capita contributions | 2027 | |||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2022 | 2022 | 2027 | |
Initial health care cost trend rate | $ 0.0500 | $ 0.0500 |
Benefit Plans Sensitivity to Ce
Benefit Plans Sensitivity to Certain Changes in Pension Assumptions (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
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 | $ 12,000,000 | ||
Impact on Projected Benefit Obligation | $ 236,000,000 | ||
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 | $ 24,000,000 | ||
Impact on Projected Benefit Obligation | $ 165,000,000 | ||
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% |
Discount rate | 6.05% | 5.65% | 305% |
Actuarial assumption COLA | $ 0.06 | $ 0.035 | $ 0.0113 |
Pension Benefits | |||
Defined Benefit Plan Disclosure | |||
Defined Benefit Plan, Cost of Living Adjustment Assumption | 2% | 2% | 2% |
COLA percentage increase (decrease) | 6% | ||
Discount rate | 5.95% | 5.60% | 2.90% |
Benefit Plans Asset Holdings (D
Benefit Plans Asset Holdings (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure | |||
Target Allocation | 100% | ||
Plan Asset Allocations | 100% | 100% | |
Growth Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 17% | ||
Plan Asset Allocations | 22% | 20% | |
Defensive growth assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 30% | ||
Plan Asset Allocations | 33% | 34% | |
Defensive Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 33% | ||
Plan Asset Allocations | 17% | 18% | |
Inflation-sensitive Assets | |||
Defined Benefit Plan Disclosure | |||
Target Allocation | 20% | ||
Plan Asset Allocations | 28% | 28% | |
Other Post-retirement Benefits | |||
Defined Benefit Plan Disclosure | |||
Actuarial assumption COLA | $ 0.06 | $ 0.035 | $ 0.0113 |
Benefit Plans Fair Value Measur
Benefit Plans Fair Value Measurements (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Years | Sep. 30, 2022 USD ($) | Oct. 01, 2019 USD ($) | |
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | $ 8,605 | $ 8,566 | |
Derivative liabilities | 128 | 176 | |
Net payables | 167 | 100 | |
Payables for collateral on loaned securities | $ 181 | 196 | |
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 | $ 1,748 | 1,916 | |
Derivative liabilities | 6 | 10 | |
Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2,167 | 2,328 | |
Derivative liabilities | 122 | 166 | |
Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 60 | 62 | $ 74 |
Derivative liabilities | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 732 | 709 | |
Equity securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 731 | 707 | |
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 | 1 | 2 | |
Preferred securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 4 | 6 | |
Preferred securities | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 1 | |
Preferred securities | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 4 | 5 | |
Preferred securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Corporate debt securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1,109 | 1,087 | |
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 | 1,107 | 1,087 | |
Corporate debt securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 0 | |
Residential mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 330 | 293 | |
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 | 323 | 289 | |
Residential mortgage-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 7 | 4 | |
Debt securities issued by U.S. Treasury and other U.S. government agencies | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 602 | 616 | |
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 | 602 | 616 | |
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 | 173 | 176 | |
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 | 130 | 136 | |
Asset-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 43 | 40 | |
Debt securities issued by state/local governments | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 21 | 23 | |
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 | 21 | 23 | |
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 | 12 | 130 | |
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 | 10 | 130 | |
Debt securities issued by foreign governments | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 0 | |
Commercial mortgage-backed securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 113 | 161 | |
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 | 108 | 145 | |
Commercial mortgage-backed securities | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 5 | 16 | |
Equity security commingled funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 360 | 436 | |
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 | 544 | 657 | |
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 | 101 | 111 | |
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 | 363 | 454 | |
Institutional mutual funds | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 363 | 454 | |
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 | 315 | 431 | |
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 51 | 133 | |
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 264 | 298 | |
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 | 694 | 522 | |
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 | 1,769 | 1,454 | |
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 | 1,162 | 1,080 | |
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 | 181 | 196 | |
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 | 181 | 196 | |
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 | 1 | 5 | |
Derivative liabilities | 5 | 10 | |
Futures | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 1 | 5 | |
Derivative liabilities | 5 | 10 | |
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 | 17 | |
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 | 17 | |
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 | 26 | 54 | |
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 | 26 | 54 | |
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 | 2 | |
Derivative liabilities | 1 | ||
Foreign currency forward | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | ||
Foreign currency forward | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 2 | 2 | |
Derivative liabilities | 1 | ||
Foreign currency forward | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of gross plan assets | 0 | 0 | |
Derivative liabilities | 0 | ||
Credit default swaps | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 1 | ||
Credit default swaps | Fair Value, Inputs, Level 1 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 1 | ||
Credit default swaps | Fair Value, Inputs, Level 2 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 0 | ||
Credit default swaps | Fair Value, Inputs, Level 3 | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 0 | ||
Securities Sold under Agreements to Repurchase [Member] | |||
Defined Benefit Plan Disclosure | |||
Derivative liabilities | 96 | 111 | |
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 | 96 | 111 | |
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, 2023 | Sep. 30, 2022 | Oct. 01, 2019 | |
Defined Benefit Plan Disclosure | |||
Net payables | $ 167 | $ 100 | |
Payables for collateral on loaned securities | 181 | 196 | |
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward] | |||
Fair value of gross plan assets | 8,605 | 8,566 | |
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 | 60 | 62 | $ 74 |
Net realized/unrealized gains | 1 | (4) | |
Purchases, sales, issuances, and settlements, net | 2 | 2 | |
Transfers in and/or out of Level 3 | (5) | $ (10) | |
Fair value of net plan assets | $ 60 |
Benefit Plans Estimated Future
Benefit Plans Estimated Future Benefit Payments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $ 809 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Two | 814 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Three | 812 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Four | 812 |
Defined Benefit Plan, Expected Future Benefit Payments, Year Five | 809 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | 3,918 |
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 | 21 |
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 119 |
Benefit Plans Contributions (De
Benefit Plans Contributions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Sep. 30, 2024 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Defined Benefit Plan Disclosure | ||||
Defined contribution plan contribution amount | $ 105 | $ 97 | $ 92 | |
Other postretirement benefit contributions | 25 | 28 | ||
Contribution related to TVARS case | 4 | 4 | ||
Supplemental Employee Retirement Plans, Defined Benefit | ||||
Defined Benefit Plan Disclosure | ||||
Defined Benefit Plan, Related to SERP | 6 | 8 | ||
Other Post-retirement Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | 25 | 28 | ||
Pension Benefits | ||||
Defined Benefit Plan Disclosure | ||||
Employer contributions | 306 | $ 308 | ||
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 | 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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2024 | |
Other Post-Employment Benefits | ||||
Discount rate | 4.59% | 3.83% | 1.52% | |
Period expense | $ (3) | $ (40) | $ (20) | |
Postemployment benefits liability, noncurrent | 266 | 299 | ||
Accounts Payable and Accrued Liabilities | ||||
Other Post-Employment Benefits | ||||
Postemployment Benefits Liability, Current | 29 | 29 | ||
Accounts Payable and Accrued Liabilities | Scenario, Forecast | ||||
Other Post-Employment Benefits | ||||
Postemployment Benefits Liability, Current | $ 28 | |||
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent | ||||
Other Post-Employment Benefits | ||||
Postemployment benefits liability, noncurrent | $ 237 | $ 270 | $ 340 |
Commitments and Contingencies -
Commitments and Contingencies - Table (Details) $ in Millions | Sep. 30, 2023 USD ($) megawatts | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Obligations | ||||
Megawatts provided under transmission obligations | megawatts | 2,792 | |||
Accrual for Environmental Loss Contingencies, Gross | $ 16 | $ 17 | ||
Estimated future decommissioning cost | [1] | 7,489 | 7,162 | $ 7,002 |
Nuclear | ||||
Obligations | ||||
Estimated future decommissioning cost | $ 3,808 | $ 3,643 | $ 3,428 | |
[1](1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Commitments and Contingencies_2
Commitments and Contingencies - Membership Interests of VIE Subject to Mandatory Redemption (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
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 | $ 18 | $ 20 |
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount | 19 | $ 22 |
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months | 1 | |
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, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Leases | ||||
Estimated future decommissioning cost | [1] | $ 7,489 | $ 7,162 | $ 7,002 |
[1](1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Commitments and Contingencies_4
Commitments and Contingencies - Purchase Obligations (Details) $ in Millions | 12 Months Ended | ||||||||
Sep. 30, 2023 USD ($) Megawatts megawatts | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2029 USD ($) | Sep. 30, 2028 USD ($) | Sep. 30, 2027 USD ($) | Sep. 30, 2026 USD ($) | Sep. 30, 2025 USD ($) | Sep. 30, 2024 USD ($) | |
Obligations | |||||||||
Megawatts provided under power purchase obligations | Megawatts | 4,487 | ||||||||
Remaining terms of the agreements, high end of range | 12 years | ||||||||
Megawatts provided under transmission obligations | megawatts | 2,792 | ||||||||
Power purchased under agreement | $ | $ 301 | $ 318 | $ 202 | ||||||
2019 | $ | $ 1 | ||||||||
Scenario, Forecast | |||||||||
Obligations | |||||||||
Purchase Obligation | $ | $ 541 | $ 154 | $ 155 | $ 155 | $ 155 | $ 155 | |||
Purchase Agreements Required by Federal Law | |||||||||
Obligations | |||||||||
Megawatts provided under power purchase obligations | Megawatts | 285 | ||||||||
Number of generation sources under PPAs | Megawatts | 955 |
Commitments and Contingencies_5
Commitments and Contingencies - Contingencies (Details) $ in Millions | 12 Months Ended | |||
Sep. 30, 2023 USD ($) reactors Units Procedures Insurance_layers | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | ||
Contingencies | ||||
Nuclear liability insurance | $ 450 | |||
Assessment from licensees for each licensed reactor | $ 138 | |||
Number of licensed reactors in US | reactors | 97 | |||
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 | $ 13,800 | |||
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 | 114 | |||
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] | $ 7,489 | $ 7,162 | $ 7,002 |
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 | 25 | 16 | 17 | |
Possible additional future costs for compliance with Clean Air Act requirements | 252 | |||
Possible additional future costs for compliance with CCR requirements | 1,600 | |||
Possible additional future costs for compliance with Clean Water requirements. | 190 | |||
Estimated liability for cleanup and similar environmental work on a non-discounted basis | 16 | 17 | ||
Amount of insurance available for loss at any one site, max | 2,800 | |||
Nuclear | ||||
Contingencies | ||||
Estimated future decommissioning cost | 3,808 | 3,643 | 3,428 | |
Non-nuclear | ||||
Contingencies | ||||
Estimated future decommissioning cost | $ 3,681 | $ 3,519 | $ 3,574 | |
[1](1) Includes $272 million and $275 million at September 30, 2023 and 2022, respectively, in Current liabilities. |
Commitments and Contingencies_6
Commitments and Contingencies - Legal Proceedings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Legal Proceedings | ||
Possible additional future costs for compliance with CCR requirements | $ 1,600 | |
Contribution related to TVARS case | 4 | $ 4 |
Possible additional future costs for compliance with Clean Water requirements. | 190 | |
Amount remaining to be spent under environmental agreements | 8 | |
General | ||
Legal Proceedings | ||
Legal loss contingency accrual | 28 | |
Environmental Agreements | ||
Legal Proceedings | ||
Amount to be invested in certain environmental projects | 290 | |
Amount invested in certain environmental projects | 283 | |
Other long-term liabilities | General | ||
Legal Proceedings | ||
Legal loss contingency accrual | 10 | |
Accounts payable and accrued liabilities | General | ||
Legal Proceedings | ||
Legal loss contingency accrual | $ 18 |
Commitments and Contingencies U
Commitments and Contingencies Unfunded loan commitments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Other commitments - unfunded loan commitments [Abstract] | |
2019 | $ 1 |
2020 | $ 0 |
Related Parties Related Parti_2
Related Parties Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Parties | |||
Revenue from sales of electricity | $ 12,054 | $ 12,540 | $ 10,503 |
Long-term Investments | 4,123 | 3,671 | |
Return on power program appropriation investment | (6) | (4) | (4) |
Related Party Transactions | |||
Related Parties | |||
Revenue from sales of electricity | 120 | 134 | 109 |
Other income | 282 | 296 | 280 |
Operating expenses | 234 | 228 | 214 |
Additions to property, plant, and equipment | 8 | 11 | 10 |
Cash and cash equivalents | 31 | 30 | 30 |
Receivables from Customers | 87 | 78 | 65 |
Long-term Investments | 391 | 358 | 573 |
Receivables, Long-term Contracts or Programs | 38 | 43 | 31 |
Accounts payable and accrued liabilities | 42 | 42 | 15 |
Long-term power bonds, net | 1 | 1 | 1 |
Return on power program appropriation investment | $ (6) | $ (4) | $ (4) |
Unaudited Quarterly Financial I
Unaudited Quarterly Financial Information Unaudited Quarterly Financial Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |||
Revenue from sales of electricity | $ 12,054 | $ 12,540 | $ 10,503 |
Operating expenses | 10,360 | 10,129 | 7,658 |
Operating income | 1,694 | 2,411 | 2,845 |
Net income (loss) | $ 500 | $ 1,108 | $ 1,512 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Other revenue | $ 155 | $ 169 | $ 146 |
Off-system sales | 14 | 19 | 7 |
Sales of Electricity (subtotal) | 11,888 | 12,352 | 10,350 |
Electric revenue | (11,899) | (12,371) | (10,357) |
Revenues | 12,054 | 12,540 | 10,503 |
Pandemic Relief Credit | $ (225) | (228) | 221 |
Revenue from Contract with Customer [Abstract] | |||
Percent of Pandemic Credit Offered | 2.50% | ||
ALABAMA | |||
Electric revenue | $ (1,731) | (1,778) | (1,508) |
GEORGIA | |||
Electric revenue | (284) | (299) | (254) |
KENTUCKY | |||
Electric revenue | (773) | (821) | (655) |
MISSISSIPPI | |||
Electric revenue | (1,146) | (1,182) | (984) |
NORTH CAROLINA | |||
Electric revenue | (89) | (87) | (66) |
TENNESSEE | |||
Electric revenue | (7,819) | (8,137) | (6,841) |
VIRGINIA | |||
Electric revenue | $ (46) | $ (48) | $ (42) |
Revenue Customer Type (Details)
Revenue Customer Type (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Units | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Electric revenue | $ 11,899 | $ 12,371 | $ 10,357 |
Other revenue | 155 | 169 | 146 |
Revenues | 12,054 | 12,540 | 10,503 |
Bill credits for LTA | $ (199) | (199) | 189 |
Number of LPCs signed LTA | Units | 147 | ||
Percentage of total operating revenues | 90.40% | ||
Total number of LPCs | Units | 153 | ||
Off-system sales | $ 14 | 19 | 7 |
Revenue capitalized during pre-commercial operations | $ (3) | 0 | 0 |
Percent of sales of electricity to LPCs | 92% | ||
Pandemic Relief Credit | $ (225) | $ (228) | $ 221 |
Number of LPCs signed flexibility agreement | Units | 89 | ||
MLGW's % of operating revenues | 9% | 9% | 9% |
NES's % of operating revenues | 8% | 8% | 8% |
20-year contract arrangement [Member] | |||
Percentage of total operating revenues | 77.70% | ||
5-year contract arrangement [Member] | |||
Number of LPCs signed LTA | Units | 6 | ||
Percentage of total operating revenues | 12.70% | ||
TENNESSEE | |||
Electric revenue | $ 7,819 | $ 8,137 | $ 6,841 |
VIRGINIA | |||
Electric revenue | 46 | 48 | 42 |
NORTH CAROLINA | |||
Electric revenue | 89 | 87 | 66 |
MISSISSIPPI | |||
Electric revenue | 1,146 | 1,182 | 984 |
KENTUCKY | |||
Electric revenue | 773 | 821 | 655 |
GEORGIA | |||
Electric revenue | 284 | 299 | 254 |
ALABAMA | |||
Electric revenue | 1,731 | 1,778 | 1,508 |
Federal agencies and other [Member] | |||
Electric revenue | 135 | 154 | 116 |
20-year contract arrangement [Member] | |||
Electric revenue | 9,367 | ||
5-year contract arrangement [Member] | |||
Electric revenue | 1,536 | ||
Local Power Company [Member] | |||
Electric revenue | 10,903 | 11,291 | 9,534 |
Industries Directly Served [Member] | |||
Electric revenue | $ 864 | $ 926 | $ 707 |
Revenue Local Power Company Con
Revenue Local Power Company Contracts (Details) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 USD ($) Units | Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | |
Number of LPCs signed LTA | Units | 147 | ||
Electric revenue | $ 11,899 | $ 12,371 | $ 10,357 |
Total number of LPCs | Units | 153 | ||
Percentage of total operating revenues | 90.40% | ||
Percent of wholesale Credit offered | 3.10% | ||
20-year contract arrangement [Member] | |||
Electric revenue | $ 9,367 | ||
5-year contract arrangement [Member] | |||
Electric revenue | 1,536 | ||
Local Power Company [Member] | |||
Electric revenue | $ 10,903 | $ 11,291 | $ 9,534 |
5-year contract arrangement [Member] | |||
Number of LPCs signed LTA | Units | 6 | ||
Percentage of total operating revenues | 12.70% |
Revenue Economic Development In
Revenue Economic Development Incentives (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |||
Revenues | $ 330 | $ 328 | $ 315 |
Unpaid economic incentives | $ (188) | $ (187) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Sep. 30, 2022 |
Debt Instrument, Redemption [Line Items] | ||
Non-current regulatory liabilities | $ 107 | $ 172 |
Regulatory assets | 5,566 | 6,134 |
Unrealized gains/losses on commodity derivatives | ||
Debt Instrument, Redemption [Line Items] | ||
Regulatory assets | 52 | 1 |
Unrealized gains/losses on commodity derivatives | ||
Debt Instrument, Redemption [Line Items] | ||
Non-current regulatory liabilities | $ 12 | $ 102 |
Plant Closures (Details)
Plant Closures (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | ||||
Accelerated depreciation | $ 177 | $ 140 | $ 136 | |
Completed Plant | ||||
Accelerated depreciation | 177 | 140 | 136 | |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | $ 659 | 659 | ||
Depreciation | 1,900 | 1,800 | $ 1,400 | |
Accumulated depreciation | 35,871 | 35,871 | $ 34,239 | |
Cumberland | ||||
Property, Plant and Equipment [Abstract] | ||||
Accelerated depreciation | 16 | 48 | ||
Completed Plant | ||||
Accelerated depreciation | $ 16 | $ 48 | ||
Property, Plant and Equipment [Member] | ||||
Completed Plant | ||||
Property, Plant and Equipment, Dispositions | 14 million | 22 million | 4 million |
Leases (Details)
Leases (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | $ 177,000,000 | $ 155,000,000 | |
Finance Lease, Right-of-Use-Asset, after Accumulated Amortization | 572,000,000 | 630,000,000 | |
Total lease assets | 749,000,000 | 785,000,000 | |
Operating Lease, Liability, Current | 71,000,000 | ||
Operating Lease, Liability, Noncurrent | 93,000,000 | 93,000,000 | |
Finance Lease, Liability, Noncurrent | 576,000,000 | 628,000,000 | |
Total lease liabilities | 796,000,000 | 839,000,000 | |
Operating Lease, Cost | 69,000,000 | 56,000,000 | $ 52,000,000 |
Variable Lease, Cost | 134,000,000 | 78,000,000 | 75,000,000 |
Short-term Lease, Cost | 18,000,000 | 26,000,000 | 12,000,000 |
Finance Lease, Right-of-Use Asset, Amortization | 57,000,000 | 58,000,000 | 51,000,000 |
Finance Lease, Interest Expense | 43,000,000 | 42,000,000 | 39,000,000 |
Total finance lease costs | 100,000,000 | 100,000,000 | 90,000,000 |
Lease, Cost | $ 321,000,000 | $ 260,000,000 | $ 229,000,000 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current | |
Operating lease under PPA | $ 135,000,000 | $ 133,000,000 | |
Leases | |||
Finance lease under PPA | $ 390,000,000 | 425,000,000 | |
Operating lease liability | |||
Lessee, Lease, Description [Line Items] | |||
Accounts Payable and Accrued Liabilities | $ 59,000,000 |
Leases, SoCF (Details)
Leases, SoCF (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating cash flows for operating leases | $ 77 | $ 57 | $ 53 |
Operating cash flows for finance leases | 43 | 42 | 39 |
Financing cash flows for finance leases | 56 | 60 | 52 |
Lease assets obtained in exchange for lease obligations - finance | 3 | 0 | 233 |
Lease assets obtained in exchange for lease obligations - operating | $ 84 | $ 43 | $ (22) |
Leases, Weighted Averages (Deta
Leases, Weighted Averages (Details) | Sep. 30, 2023 | Sep. 30, 2022 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Weighted Average Remaining Lease Term | 3 years | 3 years |
Finance Lease, Weighted Average Remaining Lease Term | 10 years | 11 years |
Operating Lease, Weighted Average Discount Rate, Percent | 4.10% | 1.50% |
Finance Lease, Weighted Average Discount Rate, Percent | 21.60% | 17.80% |
Leases, Future Minimum Payments
Leases, Future Minimum Payments (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 76 |
Total | 174 |
Operating Leases, Future Minimum Payments, Due in Two Years | 51 |
Present value of future minimum lease payments, operating | (10) |
Operating present value of net minimum lease payments | 164 |
Finance Lease, Liability, to be Paid, Year One | 109 |
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 | 104 |
Finance Lease, Liability, to be Paid, Year Five | 102 |
Finance Lease, Liability, to be Paid, after Year Five | 450 |
Finance Lease, Liability, Payment, Due | 978 |
Finance Lease, Liability, Payment Amounts Representing Interest | (346) |
Finance Lease, Liability | 632 |
Purchased Power Lease | 43 |
Operating Leases, Future Minimum Payments, Due in Three Years | 24 |
Operating Leases, Future Minimum Payments, Due in Four Years | 9 |
Operating Leases, Future Minimum Payments, Due in Five Years | 3 |
Operating Leases, Future Minimum Payments, Due Thereafter | 11 |
New PPAs with battery storage | $ 394 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 12 Months Ended | 48 Months Ended |
Sep. 30, 2023 | Sep. 30, 2026 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross | $ 31 | |
Amount of letters of credit outstanding | $ 6 | |
Scenario, Forecast | ||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | ||
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross | $ 88 |