DEI Document
DEI Document shares in Millions | 3 Months Ended |
Dec. 31, 2023 shares | |
DEI [Abstract] | |
Entity Registrant Name | TENNESSEE VALLEY AUTHORITY |
Current Fiscal Year End Date | --09-30 |
Entity Address, Country | US |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | false |
Document Type | 10-Q |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 0 |
Entity Current Reporting Status | Yes |
Entity Shell Company | false |
Document Quarterly Report | true |
Local Phone Number | 632-2101 |
City Area Code | (865) |
Entity Tax Identification Number | 62-0474417 |
Entity File Number | 000-52313 |
Entity Address, Address Line One | 400 W. Summit Hill Drive |
Entity Address, City or Town | Knoxville |
Entity Address, State or Province | TN |
Entity Incorporation, State or Country Code | X1 |
Entity Address, Postal Zip Code | 37902 |
Entity Interactive Data Current | Yes |
Entity Central Index Key | 0001376986 |
Entity Small Business | false |
Document Transition Report | false |
Document Information [Line Items] | |
Entity Incorporation, State or Country Code | X1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Operating expenses | ||
Fuel | $ 496 | $ 615 |
Purchased power | 359 | 491 |
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses | 867 | 827 |
Depreciation and amortization | 521 | 533 |
Tax equivalents | 133 | 151 |
Costs and Expenses | 2,376 | 2,617 |
Operating income | 389 | 398 |
Other income (expense), net | 23 | 16 |
Defined Benefit Plan, Other Cost (Credit) | 23 | 51 |
Interest expense | ||
Interest expense | 262 | 262 |
Net income (loss) | 127 | 101 |
Regulated Operating Revenue | 2,731 | 2,963 |
Unregulated Operating Revenue | 34 | 52 |
Regulated and Unregulated Operating Revenue | $ 2,765 | $ 3,015 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Net income (loss) | $ 127,000,000 | $ 101,000,000 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 20,000,000 | 71,000,000 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 19,000,000 | 34,000,000 | [1] |
Other comprehensive income (loss) | |||
Total other comprehensive income (loss) | 1,000,000 | 37,000,000 | |
Total comprehensive income (loss) | $ 128,000,000 | $ 138,000,000 | |
[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 $3 million of gains from Accumulated other comprehensive income (loss) ("AOCI") to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt. |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 498 | $ 501 |
Accounts receivable, net | 1,593 | 1,745 |
Inventories, net | 1,182 | 1,108 |
Regulatory assets | 251 | 178 |
Prepaid Expense and Other Assets, Current | 152 | 134 |
Total current assets | 3,676 | 3,666 |
Property, plant, and equipment | ||
Completed plant | 67,073 | 68,199 |
Less accumulated depreciation | (34,445) | (35,871) |
Property, Plant, and Equipment, Owned, Net | 32,628 | 32,328 |
Construction in progress | 3,425 | 3,238 |
Nuclear fuel | 1,364 | 1,344 |
Finance lease, asset | 562 | 572 |
Total property, plant, and equipment, net | 37,979 | 37,482 |
Investment funds | 4,472 | 4,123 |
Regulatory and other long-term assets | ||
Regulatory assets | 5,551 | 5,566 |
Operating Lease, Right-of-Use Asset | 258 | 177 |
Other long-term assets | 312 | 330 |
Investments and Other Noncurrent Assets | 6,121 | 6,073 |
Total assets | 52,248 | 51,344 |
Current liabilities | ||
Accounts payable and accrued liabilities | 2,451 | 2,618 |
Accrued interest | 268 | 272 |
Asset Retirement Obligation, Current | 275 | 272 |
Regulatory liabilities | 259 | 222 |
Short-term debt, net | 1,042 | 432 |
Current maturities of power bonds | 1,022 | 1,022 |
Current maturities of long-term debt of variable interest entities | 35 | 35 |
Total current liabilities | 5,352 | 4,873 |
Other liabilities | ||
Post-retirement and post-employment benefit obligations | 2,457 | 2,527 |
Asset retirement obligations | 7,295 | 7,217 |
Finance Lease, Liability | 571 | 576 |
Other long-term liabilities | 1,488 | 1,211 |
Regulatory liabilities | 103 | 107 |
Liabilities, Other than Long-Term Debt, Noncurrent | 11,914 | 11,638 |
Long-term debt, net | ||
Long-term power bonds, net | 17,867 | 17,844 |
Long-term debt of variable interest entities, net | 933 | 933 |
Total long-term debt, net | 18,800 | 18,777 |
Total liabilities | 36,066 | 35,288 |
Proprietary capital | ||
Power program appropriation investment | 258 | 258 |
Power program retained earnings | 15,429 | 15,302 |
Total power program proprietary capital | 15,687 | 15,560 |
Nonpower programs appropriation investment, net | 523 | 525 |
Accumulated other comprehensive income (loss) | (28) | (29) |
Total proprietary capital | 16,182 | 16,056 |
Liabilities and Equity | $ 52,248 | $ 51,344 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect [Abstract] | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $ (3) | $ 0 | |
Cash flows from operating activities | |||
Net income (loss) | 127 | 101 | |
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) | 527 | 538 | |
Amortization of nuclear fuel cost | 99 | 88 | |
Non-cash retirement benefit expense | 33 | 63 | |
Amortization of Regulatory Asset | (46) | (69) | |
Changes in current assets and liabilities | |||
Accounts receivable, net | 153 | 256 | |
Inventories and other current assets, net | (105) | (216) | |
Accounts payable and accrued liabilities | (289) | (86) | |
Accrued interest | (2) | (16) | |
Pension contributions | (75) | (75) | |
Other, net | (121) | (145) | |
Net cash provided by operating activities | 393 | 439 | |
Cash flows from investing activities | |||
Construction expenditures | (863) | (605) | |
Nuclear fuel expenditures | (146) | (192) | |
Payments to Acquire Assets, Investing Activities | (1) | 0 | |
Acquisition of leasehold interests in combustion turbine assets | 0 | 78 | |
Loans and other receivables | |||
Advances | (4) | 0 | |
Repayments | 2 | 3 | |
Other, net | 10 | (4) | |
Net cash used in investing activities | (1,002) | (876) | |
Long-term debt | |||
Redemptions and repurchases of power bonds | (1) | [1] | (1) |
Short-term debt issues (redemptions), net | 610 | 446 | |
Finance Lease, Principal Payments | 10 | 10 | |
Other, net | 7 | 2 | |
Net cash provided by (used in) financing activities | 606 | 437 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 518 | $ 520 | |
[1] (1) All redemptions were at 100 percent of par. |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL (UNAUDITED) - USD ($) | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Power Program Appropriation Investment | $ 258,000,000 | $ 258,000,000 | ||
Power Program Retained Earnings | 15,429,000,000 | 15,302,000,000 | ||
Nonpower Programs Appropriation Investment, Net | 523,000,000 | 525,000,000 | ||
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges | (28,000,000) | (29,000,000) | ||
Total Proprietary Capital | 16,182,000,000 | $ 15,642,000,000 | 16,056,000,000 | $ 15,505,000,000 |
Net income (loss) | 127,000,000 | 101,000,000 | ||
Total other comprehensive income (loss) | 1,000,000 | 37,000,000 | ||
Return on power program appropriation investment | (2,000,000) | (1,000,000) | ||
Power Program Appropriation Investment | ||||
Power Program Appropriation Investment | 258,000,000 | 258,000,000 | 258,000,000 | 258,000,000 |
Net income (loss) | 0 | 0 | ||
Total other comprehensive income (loss) | 0 | 0 | ||
Return on power program appropriation investment | 0 | 0 | ||
Power Program Retained Earnings | ||||
Power Program Retained Earnings | 15,429,000,000 | 14,902,000,000 | 15,302,000,000 | 14,800,000,000 |
Net income (loss) | 129,000,000 | 103,000,000 | ||
Total other comprehensive income (loss) | 0 | 0 | ||
Return on power program appropriation investment | (2,000,000) | (1,000,000) | ||
Nonpower Programs Appropriation Investment, Net | ||||
Nonpower Programs Appropriation Investment, Net | 523,000,000 | 531,000,000 | 525,000,000 | 533,000,000 |
Net income (loss) | (2,000,000) | (2,000,000) | ||
Total other comprehensive income (loss) | 0 | 0 | ||
Return on power program appropriation investment | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges | ||||
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges | (28,000,000) | (49,000,000) | $ (29,000,000) | $ (86,000,000) |
Net income (loss) | 0 | 0 | ||
Total other comprehensive income (loss) | 1,000,000 | 37,000,000 | ||
Return on power program appropriation investment | $ 0 | $ 0 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information Statement - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Significant Noncash Transactions [Line Items] | ||
Capital Expenditures Incurred but Not yet Paid | $ 552 | $ 363 |
Noncash or Part Noncash Acquisition, Payables Assumed | $ 46 | $ 62 |
Statement of Cash Flows, Supple
Statement of Cash Flows, Supplemental Disclosures | 3 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | Supplemental Cash Flow Information Construction in progress and nuclear fuel expenditures included in Accounts payable and accrued liabilities at December 31, 2023 and 2022, were $552 million and $363 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022, as non-cash investing activities. ARO project accruals included in Accounts payable and accrued liabilities at December 31, 2023 and 2022 were $46 million and $62 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the three months ended December 31, 2023 and 2022, as non-cash operating activities. 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. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Basis of Presentation The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") for consolidated interim financial information. Accordingly, TVA's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. As such, they should be read in conjunction with the audited financial statements for the year ended September 30, 2023, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2023 (the "Annual Report"). In the opinion of management, all adjustments (consisting of items of a normal recurring nature) considered necessary for fair presentation are included on the consolidated interim financial statements. The accompanying consolidated interim 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 9 — Variable Interest Entities . Intercompany balances and transactions have been eliminated in consolidation. Fiscal Year TVA's fiscal year ends September 30. Years (2024, 2023, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years. 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. 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 (in millions) At December 31, 2023 At September 30, 2023 Cash and cash equivalents $ 498 $ 501 Restricted cash and cash equivalents included in Other long-term assets 20 20 Total cash, cash equivalents, and restricted cash $ 518 $ 521 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 December 31, 2023, and September 30, 2023, for trade accounts receivable. Additionally, loans receivable of $105 million and $104 million at December 31, 2023, and September 30, 2023, 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 December 31, 2023 and September 30, 2023. 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 Paradise Combustion Turbine Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the three months ended December 31, 2023. TVA also capitalized related fuel costs for this project of $3 million for the three months ended December 31, 2023. 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 was $452 million and $466 million for the three months ended December 31, 2023 and 2022, respectively. See Note 6 — Plant Closures for a discussion of the impact of plant closures. |
Impact of New Accounting Standa
Impact of New Accounting Standards and Interpretations (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Accounting Standards Update and Change in Accounting Principle | Impact of New Accounting Standards and Interpretations The following are accounting standard updates issued by the Financial Accounting Standards Board that TVA adopted during 2024: 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 liabilities acquired in a business combination in accordance with revenue with customers. It is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured contract assets and contract liabilities in the acquiree’s financial statements. The entity should apply the standard prospectively to business combinations occurring on or after the effective date of the standard. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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 creditors that have adopted Financial Instruments-Credit Losses and requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. Additionally, the guidance requires public business entities to present current-period gross write-offs by year of origination in their vintage disclosures. The entity should apply the standard prospectively except for the transition method related to the recognition and measurement of troubled debt restructuring. For the transition method, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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. The following accounting standard has been issued but as of December 31, 2023, was not effective and has not been adopted by TVA: Improvements to Reportable Segment Disclosures Description This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendment and all existing segment disclosures. The amendment is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The amendment should be adopted retrospectively unless it is impracticable to do so. Upon adoption, a public entity will adopt the amendment as of the beginning of the earliest period presented. Effective Date for TVA October 1, 2024 Effect on the Financial Statements or Other Significant Matters TVA is currently reviewing and evaluating this standard. TVA does not expect the adoption of this standard to have a material impact on TVA's financial condition, results of operations, or cash flows. |
Accounts Receivable, Net (Text
Accounts Receivable, Net (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | 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 (in millions) At December 31, 2023 At September 30, 2023 Power receivables $ 1,451 $ 1,627 Other receivables 142 118 Accounts receivable, net (1) $ 1,593 $ 1,745 Note |
Inventories, Net (Text Block)
Inventories, Net (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories, Net | Inventories, Net The table below summarizes the types and amounts of TVA's inventories: Inventories, Net (in millions) At December 31, 2023 At September 30, 2023 Materials and supplies inventory $ 884 $ 849 Fuel inventory 354 313 Renewable energy certificates/emissions allowance inventory, net 16 15 Allowance for inventory obsolescence (72) (69) Inventories, net $ 1,182 $ 1,108 |
Deferred Costs, Capitalized, Pr
Deferred Costs, Capitalized, Prepaid, and Other Assets (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | Other Current Assets Other current assets consisted of the following: Other Current Assets (in millions) At December 31, 2023 At September 30, 2023 Inventory work-in-progress $ 47 $ 28 Prepaid software maintenance 36 18 Commodity contract derivative assets 19 21 Prepaid insurance 16 16 Current portion of prepaid long-term service agreements 10 25 Other 24 26 Other current assets $ 152 $ 134 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 13 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a |
Plant Closures (Text Block)
Plant Closures (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment Impairment or Disposal [Abstract] | |
Plant Closures Disclosure | 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 of Directors ("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 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. 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. 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 recognized a cumulative $659 million of accelerated depreciation from the second quarter of 2019 through September 30, 2023. Of this amount, $36 million was recognized for Bull Run during the three months ended December 31, 2022. 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 $64 million of additional depreciation since January 2023, related to this decision. |
Other Long-Term Assets (Text Bl
Other Long-Term Assets (Text Block) | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | Other Long-Term Assets The table below summarizes the types and amounts of TVA's other long-term assets: Other Long-Term Assets (in millions) At December 31, 2023 At September 30, 2023 Loans and other long-term receivables, net $ 101 $ 97 EnergyRight ® receivables, net 46 47 Prepaid long-term service agreements 44 64 Prepaid capital assets 21 28 Commodity contract derivative assets 12 12 Other 88 82 Total other long-term assets $ 312 $ 330 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 December 31, 2023 and September 30, 2023, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $4 million and $7 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 December 31, 2023, and September 30, 2023, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $13 million and $12 million, respectively. See Note 10 — 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 (in millions) At December 31, 2023 At September 30, 2023 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 December 31, 2023, and September 30, 2023, prepayments of $10 million and $25 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 13 — 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. |
Regulatory Assets and Liabiliti
Regulatory Assets and Liabilities | 3 Months Ended |
Dec. 31, 2023 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Assets and Liabilities | 8. 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 (in millions) At December 31, 2023 At September 30, 2023 Current regulatory assets Unrealized losses on interest rate derivatives $ 37 $ 31 Unrealized losses on commodity derivatives 213 136 Fuel cost adjustment receivable — 11 Other current regulatory assets 1 — Total current regulatory assets 251 178 Non-current regulatory assets Retirement benefit plans deferred costs 1,438 1,440 Non-nuclear decommissioning costs 2,838 2,922 Unrealized losses on interest rate derivatives 459 272 Nuclear decommissioning costs 543 728 Unrealized losses on commodity derivatives 98 52 Other non-current regulatory assets 175 152 Total non-current regulatory assets 5,551 5,566 Total regulatory assets $ 5,802 $ 5,744 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 190 $ 201 Fuel cost adjustment 50 — Unrealized gains on commodity derivatives 19 21 Total current regulatory liabilities 259 222 Non-current regulatory liabilities Retirement benefit plans deferred credits 91 95 Unrealized gains on commodity derivatives 12 12 Total non-current regulatory liabilities 103 107 Total regulatory liabilities $ 362 $ 329 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Dec. 31, 2023 | |
Text Block [Abstract] | |
Variable Interest Entity Disclosure | 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 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 at December 31, 2023, and September 30, 2023, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets (in millions) At December 31, 2023 At September 30, 2023 Current liabilities Accrued interest $ 21 $ 9 Accounts payable and accrued liabilities 1 1 Current maturities of long-term debt of variable interest entities 35 35 Total current liabilities 57 45 Other liabilities Other long-term liabilities 17 17 Long-term debt, net Long-term debt of variable interest entities, net 933 933 Total liabilities $ 1,007 $ 995 Interest expense of $12 million for both the three months ended December 31, 2023 and 2022, is included in the Consolidated Statements of Operations related to debt of VIEs and membership interests of VIEs subject to mandatory redemption. 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. |
Other Long-Term Liabilities
Other Long-Term Liabilities | 3 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to operating leases. The table below summarizes the types and amounts of Other long-term liabilities: Other Long-Term Liabilities (in millions) At December 31, 2023 At September 30, 2023 Interest rate swap liabilities $ 782 $ 627 Operating lease liabilities 163 93 Currency swap liabilities 112 131 Commodity contract derivative liabilities 98 52 EnergyRight ® financing obligation 55 55 Advances for construction 46 56 Long-term deferred revenue 46 45 Long-term deferred compensation 32 41 Other 154 111 Total other long-term liabilities $ 1,488 $ 1,211 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 13 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives 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 December 31, 2023, and September 30, 2023, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $81 million and $71 million, respectively. 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 13 — 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 13 — 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 December 31, 2023, and September 30, 2023, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $14 million. See Note 7 — 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 December 31, 2023 and September 30, 2023, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $32 million and $65 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 December 31, 2023 and September 30, 2023, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $60 million and $39 million, respectively. Long-Term Deferred Revenue . Long-term deferred revenue represents payments received that exceed services rendered resulting in the deferral of revenue. The 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 reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At December 31, 2023 and September 30, 2023, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $23 million and $21 million, respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | 3 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations | Asset Retirement Obligations During the three months ended December 31, 2023, TVA's total asset retirement obligations ("ARO") liability increased $81 million as a result of revisions in estimate and periodic accretion, partially offset by settlements related to retirement projects that were conducted during the period. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During the three months ended December 31, 2023, $47 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 8 — Regulatory Assets and Liabilities . TVA maintains investment trusts to help fund its decommissioning obligations. See Note 14 — Fair Value Measurements — Investment Funds and Note 20 — Contingencies and Legal Proceedings — 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, 2023 $ 3,808 $ 3,681 $ 7,489 (1) Settlements (4) (59) (63) Revisions in estimate — 78 78 Accretion (recorded as regulatory asset) 43 23 66 Balance at December 31, 2023 $ 3,847 $ 3,723 $ 7,570 (1) Note (1) Includes $275 million and $272 million at December 31, 2023, and September 30, 2023, respectively, in Current liabilities. |
Debt and Other Obligations
Debt and Other Obligations | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt and Other Obligations | Debt and Other Obligations Debt Outstanding Total debt outstanding at December 31, 2023, and September 30, 2023, consisted of the following: Debt Outstanding At December 31, 2023 At September 30, 2023 Short-term debt Short-term debt, net of discounts $ 1,042 $ 432 Current maturities of power bonds issued at par 1,022 1,022 Current maturities of long-term debt of VIEs issued at par 35 35 Total current debt outstanding, net 2,099 1,489 Long-term debt Long-term power bonds (1) 17,990 17,970 Long-term debt of VIEs, net 933 933 Unamortized discounts, premiums, issue costs, and other (123) (126) Total long-term debt, net 18,800 18,777 Total debt outstanding $ 20,899 $ 20,266 Note (1) Includes total net exchange gain from currency transactions of $88 million and $109 million at December 31, 2023, and September 30, 2023, respectively. Debt Securities Activity The table below summarizes the long-term debt securities activity for the period from October 1, 2023, to December 31, 2023: Debt Securities Activity Date Amount (in millions) Redemptions/Maturities (1) 2009 Series B December 2023 $ 1 Total redemptions/maturities of debt $ 1 Note (1) All redemptions were at 100 percent of par. 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 December 31, 2023, and September 30, 2023, there were $469 million and $535 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 13 — 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 December 31, 2023 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2025 $ 500 $ 223 $ — $ 277 March 2026 150 38 — 112 September 2026 1,000 112 — 888 March 2027 1,000 96 — 904 Total $ 2,650 $ 469 $ — $ 2,181 TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the Tennessee Valley Authority Act of 1933, as amended ("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, notes, or other evidences of indebtedness (collectively, "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 December 31, 2023. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit. |
Risk Management Activities and
Risk Management Activities and Derivative Transactions | 3 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Risk Management Activities and Derivative Transactions | 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. 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) (in millions) Three Months Ended December 31 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 $ 20 $ 71 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 (in millions) Three Months Ended December 31 Derivatives in Cash Flow Hedging Relationship 2023 2022 Currency swaps $ 19 $ 34 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 $3 million of gains from Accumulated other comprehensive income (loss) ("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) (in millions) Three Months Ended December 31 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 $ (8) $ (15) 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) (54) (19) 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 assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three months ended December 31, 2023 and for the three months ended December 31, 2022. (2) Of the amount recognized for the three months ended December 31, 2023, $44 million and $10 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for three months ended December 31, 2022, $15 million and $4 million were reported in Fuel expense and Purchased power expense, respectively. Fair Values of TVA Derivatives (in millions) At December 31, 2023 At September 30, 2023 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (56) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(51) $ (72) Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66) £150 million Sterling (65) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(61) (69) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(65) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (607) Accounts payable and accrued liabilities $(22); Accrued interest $(6); Other long-term liabilities $(579) $ (499) Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473) $476 million notional (211) Accounts payable and accrued liabilities $(8); Other long-term liabilities $(203) (159) Other current assets $3; Accrued interest $(8); Other long-term liabilities $(154) Commodity contract derivatives 29 Other current assets $19; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) 31 Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) Commodity derivatives under the FHP (309) Accounts payable and accrued liabilities $(212); Other long-term liabilities $(97) (186) Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51) 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 occurre d. TVA h ad two currency swaps outstanding at December 31, 2023, with total currency exposure of £400 million and expiration dates in 2032 and 2043. 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 mark-to-market ("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 three months ended December 31, 2023 and 2022, the changes in fair market value of the interest rate swaps resulted in the increase in unrealized losses of $189 million and reduction in unrealized losses of $14 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 power purchase agreements ("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 PPA. TVA marks to market these contracts and defers the unrealized gains (losses) as regulatory liabilities (assets). At December 31, 2023, TVA's natural gas contract derivatives had terms of up to approximately two Commodity Contract Derivatives At December 31, 2023 At September 30, 2023 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas contract derivatives 45 366 million mmBtu $ 29 54 318 million mmBtu $ 31 Commodity Derivatives under the FHP. 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 December 31, 2023, TVA's natural gas swap contracts under the FHP had remaining terms of up to approximately four Commodity Derivatives under Financial Hedging Program (1) At December 31, 2023 At September 30, 2023 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas Swap contracts 206 351 million mmBtu $ (309) 221 388 million mmBtu $ (186) 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 $123 million primarily due to a decrease in forward natural gas prices at December 31, 2023 as compared to September 30, 2023. 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) (in millions) At December 31, 2023 At September 30, 2023 Assets Commodity contract derivatives $ 31 $ 33 Interest rate swaps — 4 Total derivatives subject to master netting or similar arrangement $ 31 $ 37 Liabilities Currency swaps $ 121 $ 141 Interest rate swaps (2) 818 662 Commodity contract derivatives 2 2 Commodity derivatives under the FHP (3) 309 186 Total derivatives subject to master netting or similar arrangement $ 1,250 $ 991 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 December 31, 2023, or September 30, 2023. (2) Letters of credit of $443 million and $509 million were posted as collateral at December 31, 2023, and September 30, 2023, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative. (3) At December 31, 2023, the gross derivative asset and gross derivative liability were $8 million and $317 million, respectively, with offsetting amounts for each totaling $8 million. Other Derivative Instruments Investment Fund Derivatives . Investment funds consist primarily of funds held in the Nuclear Decommissioning Trust ("NDT"), the Asset Retirement Trust ("ART"), the Supplemental Executive Retirement Plan ("SERP"), the TVA Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). See Note 14 — 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 December 31, 2023, and September 30, 2023, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $3 million and $11 million at December 31, 2023, and September 30, 2023, 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 December 31, 2023, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $1.3 billion. TVA's collateral obligations at December 31, 2023, under these arrangements were $537 million, for which TVA had posted $443 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 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 $1.5 billion and $1.6 billion of receivables from power sales outstanding at December 31, 2023, and September 30, 2023, respectively, nearly all of the counterparties were rated investment grade. The obligations of these customers that are not investment grade are secured by collateral. T VA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional utilities related to delivered power. 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 7 — Other Long-Term Assets . TVA had revenue from two LPCs that collectively accounted for 16 percent of total operating revenues for both the three months ended December 31, 2023 and the three months ended December 31, 2022. Suppliers . TVA assesses potential supplier performance risks, including procurement of fuel, purchased power, 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 and 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 further 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 a supplier experiences an incident that limits its ability to fulfill its firm contractual obligations to supply TVA natural gas, TVA will leverage its storage and balancing services and/or replace the volume with a third party to ensure reliability of generation. Coal . To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers at December 31, 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 ("EO") 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 reliability risk 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. 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. Derivative Counterparties . T |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs. Valuation Techniques The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows: Level 1 — Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing. Level 2 — Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means. Level 3 — Pricing inputs that are unobservable, or less observable, from objective sources. Unobservable inputs are only to be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available. A financial instrument's level within the fair value hierarchy (where Level 1 is the highest and Level 3 is the lowest) is based on the lowest level of input significant to the fair value measurement. The following sections describe the valuation methodologies TVA uses to measure different financial instruments at fair value. Except for gains and losses on SERP and DCP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss). Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements. Investment Funds At December 31, 2023, Investment funds were comprised of $4.5 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 $3.0 billion and $1.3 billion, respectively, at December 31, 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, 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 $296 million, private real assets of $110 million, and private credit of $88 million at December 31, 2023. The ART had unfunded commitments related to limited partnerships in private equity of $122 million, private real assets of $54 million, and private credit of $47 million at December 31, 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 of the Notes to Consolidated Financial Statements in the Annual Report and Note 8 — 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) (in millions) Three Months Ended December 31 Fund Financial Statement Presentation 2023 2022 NDT Regulatory assets (2) $ 197 $ 136 ART Regulatory assets (3) 89 69 SERP Other income, net 7 3 DCP Other income, net 1 — Notes (1) Employee contributions to the RP began in the second quarter of 2023. As of December 31, 2023, the unrealized gains for the RP were less than $1 million, and therefore were not represented in the table above. (2) Includes $61 million and $20 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended December 31, 2023 and 2022, respectively. (3) Includes $18 million and $10 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended December 31, 2023 and 2022, respectively. Currency and Interest Rate Swap Derivatives See Note 13 — 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 13 — 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 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 December 31, 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 December 31, 2023, and September 30, 2023. 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 (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 684 $ — $ — $ 684 Government debt securities (1) 453 69 — 522 Corporate debt securities (2) — 321 — 321 Mortgage and asset-backed securities — 37 — 37 Institutional mutual funds 309 — — 309 Forward debt securities contracts — 3 — 3 Cash equivalents and other short-term investments — 163 — 163 Private equity funds measured at net asset value (3) — — — 657 Private real asset funds measured at net asset value (3) — — — 408 Private credit funds measured at net asset value (3) — — — 184 Commingled funds measured at net asset value (3) — — — 1,184 Total investments 1,446 593 — 4,472 Commodity contract derivatives — 31 — 31 Total $ 1,446 $ 624 $ — $ 4,503 Quoted Prices in Active Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 121 $ — $ 121 Interest rate swaps — 818 — 818 Commodity contract derivatives — 2 — 2 Commodity derivatives under the FHP — 309 — 309 Total $ — $ 1,250 $ — $ 1,250 Notes (1) Includes securities of government-sponsored entities, including $453 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV 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. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Fair Value Measurements (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 608 $ — $ — $ 608 Government debt securities (1)(2) 391 60 — 451 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) — 145 — 145 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 (2)(4) — — — 1,156 Total investments 1,287 552 — 4,123 Interest rate swaps — 4 — 4 Commodity contract derivatives — 33 — 33 Total $ 1,287 $ 589 $ — $ 4,160 Quoted Prices in Active 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, including $391 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) At September 30, 2023, $104 million previously classified as Level 1 Cash equivalents and other short-term investments have been reclassified to Level 1 Government debt securities to conform with current year presentation. At September 30, 2023, $21 million previously classified as Level 2 Cash equivalents and other short-term investments have been reclassified to Commingled funds measured at net asset value to conform with current year presentation. (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 if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — 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 December 31, 2023, and September 30, 2023, 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 December 31, 2023, and September 30, 2023, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At December 31, 2023 At September 30, 2023 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 59 $ 55 $ 59 $ 55 Loans and other long-term receivables, net (including current portion) Level 2 105 97 104 96 EnergyRight ® financing obligations (including current portion) Level 2 69 81 69 81 Unfunded loan commitments Level 2 — — — 1 Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 18 20 18 19 Long-term outstanding power bonds, net (including current maturities) Level 2 18,889 19,079 18,866 17,963 Long-term debt of VIEs, net (including current maturities) Level 2 968 987 968 927 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 | 3 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income, Net Income and expenses not related to TVA's operating activities are summarized in the following table: Other Income, Net (in millions) Three Months Ended December 31 2023 2022 Interest income $ 10 $ 7 External services 4 3 Gains on investments 9 6 Total other income, net $ 23 $ 16 |
Benefit Plans
Benefit Plans | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans TVA sponsors a pension plan that covers most of its full-time employees hired before July 1, 2014, a qualified defined contribution plan ("401(k) plan") that covers most of its full-time employees, two unfunded post-retirement health care plans that provide for non-vested contributions toward the cost of eligible retirees' medical coverage, other post-employment benefits, such as workers' compensation, the SERP, and the RP. The pension plan and the 401(k) plan are administered by a separate legal entity, the TVA Retirement System ("TVARS"), which is governed by its own board of directors. The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the three months ended December 31, 2023 and 2022, were as follows: Components of TVA's Benefit Plans (1) (in millions) For the Three Months Ended December 31 Pension Benefits Other Post-Retirement Benefits 2023 2022 2023 2022 Service cost $ 7 $ 9 $ 3 $ 3 Interest cost 144 142 5 5 Expected return on plan assets (124) (123) — — Amortization of prior service credit (22) (22) (4) (4) Recognized net actuarial loss (gain) 25 34 (1) — Total net periodic benefit cost as actuarially determined 30 40 3 4 Amount expensed due to actions of regulator — 19 — — Total net periodic benefit cost $ 30 $ 59 $ 3 $ 4 Note (1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations. TVA's minimum required pension plan contribution for 2024 is $300 million. TVA contributes $25 million per month to TVARS and as of December 31, 2023, had contributed $75 million. The remaining $225 million will be contributed by September 30, 2024. For the three months ended December 31, 2023, TVA also contributed $35 million to the 401(k) plan and $8 million (net of $1 million in rebates) to the other post-retirement plans. TVA expects to contribute $6 million to the SERP in 2024. |
Contingencies and Legal Proceed
Contingencies and Legal Proceedings | 3 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies and Legal Proceedings | 20. Contingencies and Legal Proceedings 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 approximately $166 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $1.2 billion. This retrospective premium is payable at a maximum rate currently set at approximately $25 million per year per nuclear incident per reactor. Currently, 95 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 $16.2 billion in coverage. Federal law requires that each Nuclear Regulatory Commission ("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 approximately $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 approximately $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 11 — 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 December 31, 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 14 — 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 8 — Regulatory Assets and Liabilities and Note 11 — Asset Retirement Obligations . Non-Nuclear Decommissioning . At December 31, 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 14 — 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 8 — Regulatory Assets and Liabilities and Note 11 — 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. TVA estimates that compliance with existing Clean Air Act requirements (excluding GHG requirements and new or proposed regulations) could lead to costs of $228 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 coal combustion residuals ("CCR") Program, as well as expenditures of $197 million from 2024 to 2028 relating to compliance with Clean Water Act requirements. Future costs could differ from these estimates if, among other things, 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 Environmental Protection Agency'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 both December 31, 2023 and September 30, 2023, 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 approximately $16 million 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. In August 2015, Tennessee Department of Environment and Conservation ("TDEC") issued an order that includes an iterative process through which TVA and TDEC will identify and evaluate any CCR contamination risks and, if necessary, respond to such risks. As part of this process, TVA has submitted Environmental Assessment Reports ("EARs") to TDEC, and after the EARs are approved, TVA will submit Corrective Action/Risk Assessment Plans that will identify the unacceptable risks and TVA's proposed remediation. At December 31, 2023, TVA's estimated liability for costs associated with these environmental remediation activities for sites for which sufficient information is available to develop a cost estimate was approximately $26 million and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Potential Liability Associated with Workers' Exposure to CCR Materials. In response to the 2008 ash spill at Kingston Fossil Plant, 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 similar 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 There have been no material changes to the legal proceedings described in Note 22 — Commitments and Contingencies — Legal Proceedings of the Annual Report. |
Revenue (Notes)
Revenue (Notes) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | 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 91 percent of TVA's Revenue from sales of electricity for both the three months ended December 31, 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. 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. Credits are designed to achieve objectives of the TVA Act and include items such as hydro preference credits for residential customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, 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. 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 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, Renewable Energy Certificate sales, and certain other ancillary goods or services. Disaggregated Revenues During the three months ended December 31, 2023, revenues generated from TVA's electricity sales were $2.7 billion, and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for the three months ended December 31, 2023 and 2022, are detailed in the table below: Operating Revenues By State (in millions) Three Months Ended December 31 2023 2022 Alabama $ 408 $ 428 Georgia 69 76 Kentucky 177 198 Mississippi 255 278 North Carolina 23 25 Tennessee 1,789 1,941 Virginia 11 13 Subtotal 2,732 2,959 Off-system sales 2 4 Revenue capitalized during pre-commercial plant operations (1) (3) — Revenue from sales of electricity 2,731 2,963 Other revenue 34 52 Total operating revenues $ 2,765 $ 3,015 Note (1) Represents revenue capitalized during pre-commercial operations at Paradise Combustion Turbine Units 5-7. TVA's operating revenues by customer type for the three months ended December 31, 2023 and 2022, are detailed in the table below: Operating Revenues by Customer Type (in millions) Three Months Ended December 31 2023 2022 Revenue from sales of electricity Local power companies $ 2,487 $ 2,706 Industries directly served 217 225 Federal agencies and other 30 32 Revenue capitalized during pre-commercial plant operations (1) (3) — Revenue from sales of electricity 2,731 2,963 Other revenue 34 52 Total operating revenues $ 2,765 $ 3,015 Note (1) Represents revenue capitalized during pre-commercial operations at Paradise Combustion Turbine Units 5-7. 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 $47 million and $48 million for the three months ended December 31, 2023 and 2022, respectively. 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 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 December 31, 2023, 147 LPCs had signed the Partnership Agreement with TVA, and 92 LPCs had signed a Power Supply Flexibility Agreement. The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three months ended December 31, 2023, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the table below: TVA Local Power Company Contracts At or for the Three Months Ended December 31, 2023 Contract Arrangements (1) Number of LPCs Revenue from Sales of Electricity to LPCs (in millions) Percentage of Total Operating Revenues 20-year termination notice 147 $ 2,156 78.0 % 5-year termination notice 6 331 12.0 % Total 153 $ 2,487 90.0 % 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 each accounted for eight percent of TVA's total operating revenues for both the three months ended December 31, 2023 and the three months ended December 31, 2022. 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 December 31, 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 10 — Other Long-Term Liabilities — Long-Term Deferred Revenue . Economic Development Incentives. |
Research and Development
Research and Development | 3 Months Ended |
Dec. 31, 2023 | |
Research and Development [Abstract] | |
Collaborative Arrangement Disclosure | 19. Collaborative Arrangement In 2023, 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. 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 Statement of Operations in the period incurred. TVA recorded $9 million and $16 million of expenses related to this agreement for the three months ended December 31, 2023 and 2022, respectively. TVA also had a $6 million letter of credit posted under this arrangement at December 31, 2023. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income (loss) | $ 127 | $ 101 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 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 (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") for consolidated interim financial information. Accordingly, TVA's consolidated interim financial statements do not include all of the information and notes required by GAAP for annual financial statements. As such, they should be read in conjunction with the audited financial statements for the year ended September 30, 2023, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2023 (the "Annual Report"). In the opinion of management, all adjustments (consisting of items of a normal recurring nature) considered necessary for fair presentation are included on the consolidated interim financial statements. The accompanying consolidated interim 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 9 — Variable Interest Entities |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | 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. 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 (in millions) At December 31, 2023 At September 30, 2023 Cash and cash equivalents $ 498 $ 501 Restricted cash and cash equivalents included in Other long-term assets 20 20 Total cash, cash equivalents, and restricted cash $ 518 $ 521 |
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. The allowance for uncollectible accounts was less than $1 million at both December 31, 2023, and September 30, 2023, for trade accounts receivable. Additionally, loans receivable of $105 million and $104 million at December 31, 2023, and September 30, 2023, 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 December 31, 2023 and September 30, 2023. |
Revenue | 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 Paradise Combustion Turbine Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023. Estimated revenue of $3 million related to this project was capitalized to offset project costs for the three months ended December 31, 2023. TVA also capitalized related fuel costs for this project of $3 million for the three months ended December 31, 2023. |
Depreciation | 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 was $452 million and $466 million for the three months ended December 31, 2023 and 2022, respectively. See Note 6 — Plant Closures for a discussion of the impact of plant closures. |
Accounting Changes and Error Co
Accounting Changes and Error Corrections (Policies) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Impact of New Accounting Standards and Interpretations | The following are accounting standard updates issued by the Financial Accounting Standards Board that TVA adopted during 2024: 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 liabilities acquired in a business combination in accordance with revenue with customers. It is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured contract assets and contract liabilities in the acquiree’s financial statements. The entity should apply the standard prospectively to business combinations occurring on or after the effective date of the standard. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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 creditors that have adopted Financial Instruments-Credit Losses and requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. Additionally, the guidance requires public business entities to present current-period gross write-offs by year of origination in their vintage disclosures. The entity should apply the standard prospectively except for the transition method related to the recognition and measurement of troubled debt restructuring. For the transition method, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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. The following accounting standard has been issued but as of December 31, 2023, was not effective and has not been adopted by TVA: Improvements to Reportable Segment Disclosures Description This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendment and all existing segment disclosures. The amendment is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The amendment should be adopted retrospectively unless it is impracticable to do so. Upon adoption, a public entity will adopt the amendment as of the beginning of the earliest period presented. Effective Date for TVA October 1, 2024 Effect on the Financial Statements or Other Significant Matters TVA is currently reviewing and evaluating this standard. TVA does not expect the adoption of this standard to have a material impact on TVA's financial condition, results of operations, or cash flows. |
Deferred Costs, Capitalized, _2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies) | 3 Months Ended |
Dec. 31, 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 13 — 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) | 3 Months Ended |
Dec. 31, 2023 | |
Text Block [Abstract] | |
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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | Cash, Cash Equivalents, and Restricted Cash (in millions) At December 31, 2023 At September 30, 2023 Cash and cash equivalents $ 498 $ 501 Restricted cash and cash equivalents included in Other long-term assets 20 20 Total cash, cash equivalents, and restricted cash $ 518 $ 521 |
Impact of New Accounting Stan_2
Impact of New Accounting Standards and Interpretations Impact of New Accounting Standards and Interpretations (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following are accounting standard updates issued by the Financial Accounting Standards Board that TVA adopted during 2024: 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 liabilities acquired in a business combination in accordance with revenue with customers. It is expected that an acquirer will generally recognize and measure acquired contract assets and contract liabilities in a manner consistent with how the acquiree recognized and measured contract assets and contract liabilities in the acquiree’s financial statements. The entity should apply the standard prospectively to business combinations occurring on or after the effective date of the standard. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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 creditors that have adopted Financial Instruments-Credit Losses and requires enhanced disclosures about loan modifications for borrowers experiencing financial difficulty. Additionally, the guidance requires public business entities to present current-period gross write-offs by year of origination in their vintage disclosures. The entity should apply the standard prospectively except for the transition method related to the recognition and measurement of troubled debt restructuring. For the transition method, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. Effective Date for TVA TVA adopted the standard on October 1, 2023, on a prospective basis. 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. The following accounting standard has been issued but as of December 31, 2023, was not effective and has not been adopted by TVA: Improvements to Reportable Segment Disclosures Description This guidance improves reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendment requires a public entity to disclose, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit and loss. It also requires a public entity that has a single reportable segment to provide all of the disclosures required by the amendment and all existing segment disclosures. The amendment is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The amendment should be adopted retrospectively unless it is impracticable to do so. Upon adoption, a public entity will adopt the amendment as of the beginning of the earliest period presented. Effective Date for TVA October 1, 2024 Effect on the Financial Statements or Other Significant Matters TVA is currently reviewing and evaluating this standard. TVA does not expect the adoption of this standard to have a material impact on TVA's financial condition, results of operations, or cash flows. |
Accounts Receivable, Net (Table
Accounts Receivable, Net (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | |
Accounts Receivable, Net | The table below summarizes the types and amounts of TVA's accounts receivable: Accounts Receivable, Net (in millions) At December 31, 2023 At September 30, 2023 Power receivables $ 1,451 $ 1,627 Other receivables 142 118 Accounts receivable, net (1) $ 1,593 $ 1,745 Note |
Inventories, Net (Tables)
Inventories, Net (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Inventory, Net [Abstract] | |
Inventories, Net | The table below summarizes the types and amounts of TVA's inventories: Inventories, Net (in millions) At December 31, 2023 At September 30, 2023 Materials and supplies inventory $ 884 $ 849 Fuel inventory 354 313 Renewable energy certificates/emissions allowance inventory, net 16 15 Allowance for inventory obsolescence (72) (69) Inventories, net $ 1,182 $ 1,108 |
Deferred Costs, Capitalized, _3
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables) | 3 Months Ended |
Dec. 31, 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 (in millions) At December 31, 2023 At September 30, 2023 Inventory work-in-progress $ 47 $ 28 Prepaid software maintenance 36 18 Commodity contract derivative assets 19 21 Prepaid insurance 16 16 Current portion of prepaid long-term service agreements 10 25 Other 24 26 Other current assets $ 152 $ 134 |
Other Long-Term Assets (Tables)
Other Long-Term Assets (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Long-Term Assets | The table below summarizes the types and amounts of TVA's other long-term assets: Other Long-Term Assets (in millions) At December 31, 2023 At September 30, 2023 Loans and other long-term receivables, net $ 101 $ 97 EnergyRight ® receivables, net 46 47 Prepaid long-term service agreements 44 64 Prepaid capital assets 21 28 Commodity contract derivative assets 12 12 Other 88 82 Total other long-term assets $ 312 $ 330 |
Regulatory Assets and Liabili_2
Regulatory Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 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 (in millions) At December 31, 2023 At September 30, 2023 Current regulatory assets Unrealized losses on interest rate derivatives $ 37 $ 31 Unrealized losses on commodity derivatives 213 136 Fuel cost adjustment receivable — 11 Other current regulatory assets 1 — Total current regulatory assets 251 178 Non-current regulatory assets Retirement benefit plans deferred costs 1,438 1,440 Non-nuclear decommissioning costs 2,838 2,922 Unrealized losses on interest rate derivatives 459 272 Nuclear decommissioning costs 543 728 Unrealized losses on commodity derivatives 98 52 Other non-current regulatory assets 175 152 Total non-current regulatory assets 5,551 5,566 Total regulatory assets $ 5,802 $ 5,744 Current regulatory liabilities Fuel cost adjustment tax equivalents $ 190 $ 201 Fuel cost adjustment 50 — Unrealized gains on commodity derivatives 19 21 Total current regulatory liabilities 259 222 Non-current regulatory liabilities Retirement benefit plans deferred credits 91 95 Unrealized gains on commodity derivatives 12 12 Total non-current regulatory liabilities 103 107 Total regulatory liabilities $ 362 $ 329 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Text Block [Abstract] | |
Schedule of Variable Interest Entities | The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, and SCCG at December 31, 2023, and September 30, 2023, as reflected on the Consolidated Balance Sheets, are as follows: Summary of Impact of VIEs on Consolidated Balance Sheets (in millions) At December 31, 2023 At September 30, 2023 Current liabilities Accrued interest $ 21 $ 9 Accounts payable and accrued liabilities 1 1 Current maturities of long-term debt of variable interest entities 35 35 Total current liabilities 57 45 Other liabilities Other long-term liabilities 17 17 Long-term debt, net Long-term debt of variable interest entities, net 933 933 Total liabilities $ 1,007 $ 995 |
Other Long-Term Liabilities (Ta
Other Long-Term Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Long-Term Liabilities | The table below summarizes the types and amounts of Other long-term liabilities: Other Long-Term Liabilities (in millions) At December 31, 2023 At September 30, 2023 Interest rate swap liabilities $ 782 $ 627 Operating lease liabilities 163 93 Currency swap liabilities 112 131 Commodity contract derivative liabilities 98 52 EnergyRight ® financing obligation 55 55 Advances for construction 46 56 Long-term deferred revenue 46 45 Long-term deferred compensation 32 41 Other 154 111 Total other long-term liabilities $ 1,488 $ 1,211 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Activity | Asset Retirement Obligation Activity (in millions) Nuclear Non-Nuclear Total Balance at September 30, 2023 $ 3,808 $ 3,681 $ 7,489 (1) Settlements (4) (59) (63) Revisions in estimate — 78 78 Accretion (recorded as regulatory asset) 43 23 66 Balance at December 31, 2023 $ 3,847 $ 3,723 $ 7,570 (1) Note (1) Includes $275 million and $272 million at December 31, 2023, and September 30, 2023, respectively, in Current liabilities. Revisions to non-nuclear estimates increased the liability balance by $78 million for the three months ended December 31, 2023. The increase was primarily attributable to a change in closure liabilities of $76 million at Cumberland based on scope changes to the interim closure plan and updated cost estimates for activities associated with final closure. |
Debt and Other Obligations (Tab
Debt and Other Obligations (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt Outstanding | Total debt outstanding at December 31, 2023, and September 30, 2023, consisted of the following: Debt Outstanding At December 31, 2023 At September 30, 2023 Short-term debt Short-term debt, net of discounts $ 1,042 $ 432 Current maturities of power bonds issued at par 1,022 1,022 Current maturities of long-term debt of VIEs issued at par 35 35 Total current debt outstanding, net 2,099 1,489 Long-term debt Long-term power bonds (1) 17,990 17,970 Long-term debt of VIEs, net 933 933 Unamortized discounts, premiums, issue costs, and other (123) (126) Total long-term debt, net 18,800 18,777 Total debt outstanding $ 20,899 $ 20,266 Note (1) Includes total net exchange gain from currency transactions of $88 million and $109 million at December 31, 2023, and September 30, 2023, respectively. |
Debt Securities Activity | Debt Securities Activity The table below summarizes the long-term debt securities activity for the period from October 1, 2023, to December 31, 2023: Debt Securities Activity Date Amount (in millions) Redemptions/Maturities (1) 2009 Series B December 2023 $ 1 Total redemptions/maturities of debt $ 1 Note (1) All redemptions were at 100 percent of par. |
Summary of Long-Term Credit Facilities | Summary of Long-Term Credit Facilities At December 31, 2023 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2025 $ 500 $ 223 $ — $ 277 March 2026 150 38 — 112 September 2026 1,000 112 — 888 March 2027 1,000 96 — 904 Total $ 2,650 $ 469 $ — $ 2,181 |
Risk Management Activities an_2
Risk Management Activities and Derivative Transactions (Tables) | 3 Months Ended | |
Dec. 31, 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) (in millions) Three Months Ended December 31 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 $ 20 $ 71 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 (in millions) Three Months Ended December 31 Derivatives in Cash Flow Hedging Relationship 2023 2022 Currency swaps $ 19 $ 34 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 $3 million of gains from Accumulated other comprehensive income (loss) ("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. | [1] |
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) (in millions) Three Months Ended December 31 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 $ (8) $ (15) 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) (54) (19) 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 assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three months ended December 31, 2023 and for the three months ended December 31, 2022. | |
Fair Value of TVA Derivatives | Fair Values of TVA Derivatives (in millions) At December 31, 2023 At September 30, 2023 Derivatives That Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Currency swaps £250 million Sterling $ (56) Accounts payable and accrued liabilities $(5); Other long-term liabilities $(51) $ (72) Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66) £150 million Sterling (65) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(61) (69) Accounts payable and accrued liabilities $(4); Other long-term liabilities $(65) Derivatives That Do Not Receive Hedge Accounting Treatment: Balance Balance Sheet Presentation Balance Balance Sheet Presentation Interest rate swaps $1.0 billion notional $ (607) Accounts payable and accrued liabilities $(22); Accrued interest $(6); Other long-term liabilities $(579) $ (499) Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473) $476 million notional (211) Accounts payable and accrued liabilities $(8); Other long-term liabilities $(203) (159) Other current assets $3; Accrued interest $(8); Other long-term liabilities $(154) Commodity contract derivatives 29 Other current assets $19; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) 31 Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1) Commodity derivatives under the FHP (309) Accounts payable and accrued liabilities $(212); Other long-term liabilities $(97) (186) Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51) | |
Commodity Contract Derivatives | Commodity Contract Derivatives At December 31, 2023 At September 30, 2023 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas contract derivatives 45 366 million mmBtu $ 29 54 318 million mmBtu $ 31 | |
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) (in millions) At December 31, 2023 At September 30, 2023 Assets Commodity contract derivatives $ 31 $ 33 Interest rate swaps — 4 Total derivatives subject to master netting or similar arrangement $ 31 $ 37 Liabilities Currency swaps $ 121 $ 141 Interest rate swaps (2) 818 662 Commodity contract derivatives 2 2 Commodity derivatives under the FHP (3) 309 186 Total derivatives subject to master netting or similar arrangement $ 1,250 $ 991 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 December 31, 2023, or September 30, 2023. (2) Letters of credit of $443 million and $509 million were posted as collateral at December 31, 2023, and September 30, 2023, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative. | |
Schedule of Derivative Instruments Commodity Contracts Under FHP | Commodity Derivatives under Financial Hedging Program (1) At December 31, 2023 At September 30, 2023 Number of Contracts Notional Amount Fair Value (MtM) (in millions) Number of Contracts Notional Amount Fair Value (MtM) (in millions) Natural gas Swap contracts 206 351 million mmBtu $ (309) 221 388 million mmBtu $ (186) 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. | |
[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 $3 million of gains from Accumulated other comprehensive income (loss) ("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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
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) (in millions) Three Months Ended December 31 Fund Financial Statement Presentation 2023 2022 NDT Regulatory assets (2) $ 197 $ 136 ART Regulatory assets (3) 89 69 SERP Other income, net 7 3 DCP Other income, net 1 — Notes (1) Employee contributions to the RP began in the second quarter of 2023. As of December 31, 2023, the unrealized gains for the RP were less than $1 million, and therefore were not represented in the table above. (2) Includes $61 million and $20 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended December 31, 2023 and 2022, respectively. |
Fair Value Measurements | Fair Value Measurements (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 684 $ — $ — $ 684 Government debt securities (1) 453 69 — 522 Corporate debt securities (2) — 321 — 321 Mortgage and asset-backed securities — 37 — 37 Institutional mutual funds 309 — — 309 Forward debt securities contracts — 3 — 3 Cash equivalents and other short-term investments — 163 — 163 Private equity funds measured at net asset value (3) — — — 657 Private real asset funds measured at net asset value (3) — — — 408 Private credit funds measured at net asset value (3) — — — 184 Commingled funds measured at net asset value (3) — — — 1,184 Total investments 1,446 593 — 4,472 Commodity contract derivatives — 31 — 31 Total $ 1,446 $ 624 $ — $ 4,503 Quoted Prices in Active Significant Other Significant Total Liabilities Currency swaps (4) $ — $ 121 $ — $ 121 Interest rate swaps — 818 — 818 Commodity contract derivatives — 2 — 2 Commodity derivatives under the FHP — 309 — 309 Total $ — $ 1,250 $ — $ 1,250 Notes (1) Includes securities of government-sponsored entities, including $453 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) Includes both U.S. and foreign debt. (3) Certain investments that are measured at fair value using the NAV 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. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Fair Value Measurements (in millions) Quoted Prices in Active Significant Other Significant Total Assets Investments Equity securities $ 608 $ — $ — $ 608 Government debt securities (1)(2) 391 60 — 451 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) — 145 — 145 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 (2)(4) — — — 1,156 Total investments 1,287 552 — 4,123 Interest rate swaps — 4 — 4 Commodity contract derivatives — 33 — 33 Total $ 1,287 $ 589 $ — $ 4,160 Quoted Prices in Active 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, including $391 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (2) At September 30, 2023, $104 million previously classified as Level 1 Cash equivalents and other short-term investments have been reclassified to Level 1 Government debt securities to conform with current year presentation. At September 30, 2023, $21 million previously classified as Level 2 Cash equivalents and other short-term investments have been reclassified to Commingled funds measured at net asset value to conform with current year presentation. (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 if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — 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 December 31, 2023, and September 30, 2023, were as follows: Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions) At December 31, 2023 At September 30, 2023 Valuation Classification Carrying Fair Carrying Fair EnergyRight ® receivables, net (including current portion) Level 2 $ 59 $ 55 $ 59 $ 55 Loans and other long-term receivables, net (including current portion) Level 2 105 97 104 96 EnergyRight ® financing obligations (including current portion) Level 2 69 81 69 81 Unfunded loan commitments Level 2 — — — 1 Membership interests of VIEs subject to mandatory redemption (including current portion) Level 2 18 20 18 19 Long-term outstanding power bonds, net (including current maturities) Level 2 18,889 19,079 18,866 17,963 Long-term debt of VIEs, net (including current maturities) Level 2 968 987 968 927 |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | 16. Other Income, Net Income and expenses not related to TVA's operating activities are summarized in the following table: Other Income, Net (in millions) Three Months Ended December 31 2023 2022 Interest income $ 10 $ 7 External services 4 3 Gains on investments 9 6 Total other income, net $ 23 $ 16 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Components of TVA's Benefit Plans | The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the three months ended December 31, 2023 and 2022, were as follows: Components of TVA's Benefit Plans (1) (in millions) For the Three Months Ended December 31 Pension Benefits Other Post-Retirement Benefits 2023 2022 2023 2022 Service cost $ 7 $ 9 $ 3 $ 3 Interest cost 144 142 5 5 Expected return on plan assets (124) (123) — — Amortization of prior service credit (22) (22) (4) (4) Recognized net actuarial loss (gain) 25 34 (1) — Total net periodic benefit cost as actuarially determined 30 40 3 4 Amount expensed due to actions of regulator — 19 — — Total net periodic benefit cost $ 30 $ 59 $ 3 $ 4 Note (1) The components of net benefit cost other than the service cost component are included in Other net periodic benefit cost on the Consolidated Statements of Operations. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
State [Table Text Block] | TVA's operating revenues by state for the three months ended December 31, 2023 and 2022, are detailed in the table below: Operating Revenues By State (in millions) Three Months Ended December 31 2023 2022 Alabama $ 408 $ 428 Georgia 69 76 Kentucky 177 198 Mississippi 255 278 North Carolina 23 25 Tennessee 1,789 1,941 Virginia 11 13 Subtotal 2,732 2,959 Off-system sales 2 4 Revenue capitalized during pre-commercial plant operations (1) (3) — Revenue from sales of electricity 2,731 2,963 Other revenue 34 52 Total operating revenues $ 2,765 $ 3,015 |
Revenue from External Customers by Products and Services [Table Text Block] | TVA's operating revenues by customer type for the three months ended December 31, 2023 and 2022, are detailed in the table below: Operating Revenues by Customer Type (in millions) Three Months Ended December 31 2023 2022 Revenue from sales of electricity Local power companies $ 2,487 $ 2,706 Industries directly served 217 225 Federal agencies and other 30 32 Revenue capitalized during pre-commercial plant operations (1) (3) — Revenue from sales of electricity 2,731 2,963 Other revenue 34 52 Total operating revenues $ 2,765 $ 3,015 |
Schedule of Long-term Contracts for Purchase of Electric Power | The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three months ended December 31, 2023, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the table below: TVA Local Power Company Contracts At or for the Three Months Ended December 31, 2023 Contract Arrangements (1) Number of LPCs Revenue from Sales of Electricity to LPCs (in millions) Percentage of Total Operating Revenues 20-year termination notice 147 $ 2,156 78.0 % 5-year termination notice 6 331 12.0 % Total 153 $ 2,487 90.0 % 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. |
Revenue Local Power Company Con
Revenue Local Power Company Contracts (Tables) | 3 Months Ended |
Dec. 31, 2023 | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Long-term Contracts or Programs Disclosure [Text Block] | The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three months ended December 31, 2023, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the table below: TVA Local Power Company Contracts At or for the Three Months Ended December 31, 2023 Contract Arrangements (1) Number of LPCs Revenue from Sales of Electricity to LPCs (in millions) Percentage of Total Operating Revenues 20-year termination notice 147 $ 2,156 78.0 % 5-year termination notice 6 331 12.0 % Total 153 $ 2,487 90.0 % 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. |
Accounting Policies Cash and Ca
Accounting Policies Cash and Cash Equivalents (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Cash and Cash Equivalents [Line Items] | ||||
Cash and Cash Equivalents, at Carrying Value | $ 498 | $ 501 | ||
Restricted Cash and Cash Equivalents, Noncurrent | 20 | 20 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 518 | $ 521 | $ 520 | $ 520 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies Allowance for Uncollectible Accounts (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for uncollectible accounts | $ 1 | $ 1 |
Financing Receivable, after Allowance for Credit Loss | 97 | 96 |
Loans and Leases Receivable, Allowance | 3 | 3 |
Reported Value Measurement | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Financing Receivable, after Allowance for Credit Loss | $ 105 | $ 104 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies Revenues (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Pre-commercial Ops - capitalized revenue | $ 3 | $ 0 |
Pre-commercial Ops - Capitalized Fuel | $ 3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies Depreciation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 452 | $ 466 |
Accounts Receivable, Net (Detai
Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Accounts Receivable, Net | ||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 1,451 | $ 1,627 |
Other receivables | 142 | 118 |
Allowance for uncollectible accounts | 1 | 1 |
Accounts receivable, net | $ 1,593 | $ 1,745 |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Inventories, Net | ||
Materials and supplies inventory | $ 884 | $ 849 |
Fuel inventory | 354 | 313 |
Renewable energy certificates/emission allowance inventory, net | 16 | 15 |
Allowance for inventory obsolescence | (72) | (69) |
Inventories, net | $ 1,182 | $ 1,108 |
Deferred Costs, Capitalized, _4
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Other Assets, Miscellaneous, Current | $ 24 | $ 26 |
Other current assets | 152 | 134 |
Prepaid Insurance | 16 | 16 |
Prepaid Expense, Current | 10 | 25 |
Prepaid software maintenance | 36 | 18 |
Inventory, Work in Process and Raw Materials | $ 47 | $ 28 |
Plant Closures (Details)
Plant Closures (Details) - USD ($) | 3 Months Ended | 12 Months Ended | 57 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | Sep. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||||
Accelerated depreciation | $ 659,000,000 | |||
Depreciation expense | $ 452,000,000 | $ 466,000,000 | ||
Accumulated additional depreciation | $ 36,000,000 | |||
Cumberland | ||||
Property, Plant and Equipment [Line Items] | ||||
Accelerated depreciation | $ 16,000,000 | |||
Accumulated additional depreciation | $ 64,000,000 |
Other Long-Term Assets (Details
Other Long-Term Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Other Long-Term Assets | ||
Loans and other long-term receivables, net | $ 101 | $ 97 |
EnergyRight® receivables, net | 55 | 55 |
Prepaid Expense, Noncurrent | 44 | 64 |
Prepaid capital assets | 21 | 28 |
Total other long-term assets | 312 | 330 |
Prepaid Expense, Current | 10 | 25 |
Loans and Leases Receivable, Allowance | 3 | 3 |
Financing Receivable, after Allowance for Credit Loss, Current | 4 | 7 |
EnergyRight loan 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 |
Economic Development Loan Collective Reserve | ||
Other Long-Term Assets | ||
Loans and Leases Receivable, Allowance | 1 | 1 |
Accounts Receivable [Member] | ||
Other Long-Term Assets | ||
EnergyRight® receivables, net | 13 | 12 |
Other long-term assets | ||
Other Long-Term Assets | ||
EnergyRight® receivables, net | 46 | 47 |
Other | 88 | 82 |
Other long-term assets | ||
Other Long-Term Assets | ||
Commodity Contract Asset, Noncurrent | $ 12 | $ 12 |
Energy Right | ||
Other Long-Term Assets | ||
Number of days in default | 180 days | |
Energy Right | Minimum | ||
Other Long-Term Assets | ||
Debt Instrument, Term | 5 years | |
Energy Right | Maximum | ||
Other Long-Term Assets | ||
Debt Instrument, Term | 10 years |
Regulatory Assets and Liabili_3
Regulatory Assets and Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) |
Regulatory Assets and Liabilities | ||
Current regulatory assets | $ 251 | $ 178 |
Non-current regulatory assets | 5,551 | 5,566 |
Regulatory assets | 5,802 | 5,744 |
Current regulatory liabilities | 259 | 222 |
Regulatory Liability, Noncurrent | 103 | 107 |
Regulatory Liabilities | 362 | 329 |
Fair value | $ 98 | $ 52 |
Commodity Contract Derivatives | ||
Regulatory Assets and Liabilities | ||
Number of contracts | 45 | 54 |
Derivative, Nonmonetary Notional Amount | 366,000,000 | 318,000,000 |
Fair value | $ 29 | $ 31 |
Fuel cost adjustment tax equivalents | ||
Regulatory Assets and Liabilities | ||
Current regulatory liabilities | 190 | 201 |
Fuel cost adjustment receivable/liability | ||
Regulatory Assets and Liabilities | ||
Current regulatory liabilities | 50 | 0 |
Unrealized gains/losses on commodity derivatives | ||
Regulatory Assets and Liabilities | ||
Current regulatory liabilities | 19 | 21 |
Regulatory Liability, Noncurrent | 12 | 12 |
Postretirement Benefit Costs | ||
Regulatory Assets and Liabilities | ||
Regulatory Liability, Noncurrent | 91 | 95 |
Unrealized losses on interest rate derivatives [Member] | ||
Regulatory Assets and Liabilities | ||
Current regulatory assets | 37 | 31 |
Non-current regulatory assets | 459 | 272 |
Unrealized gains/losses on commodity derivatives | ||
Regulatory Assets and Liabilities | ||
Current regulatory assets | 213 | 136 |
Non-current regulatory assets | 98 | 52 |
Fuel cost adjustment receivable/liability | ||
Regulatory Assets and Liabilities | ||
Current regulatory assets | 0 | 11 |
Pension Costs [Member] | ||
Regulatory Assets and Liabilities | ||
Non-current regulatory assets | 1,438 | 1,440 |
Nuclear desommissioning costs [Member] | ||
Regulatory Assets and Liabilities | ||
Non-current regulatory assets | 543 | 728 |
Non-nuclear decommissioning [Member] | ||
Regulatory Assets and Liabilities | ||
Non-current regulatory assets | 2,838 | 2,922 |
Other non-current regulatory assets [Member] | ||
Regulatory Assets and Liabilities | ||
Non-current regulatory assets | 175 | 152 |
Other Regulatory Assets (Liabilities) | ||
Regulatory Assets and Liabilities | ||
Current regulatory assets | $ 1 | $ 0 |
Variable Interest Entities Vari
Variable Interest Entities Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2013 | Sep. 30, 2012 | |
Variable Interest Entities | |||||
Other long-term liabilities | $ 1,488 | $ 1,211 | |||
Accrued interest | 21 | 9 | |||
VIE Financing | |||||
Face amount | $ 40 | $ 360 | |||
Financial instruments subject to mandatory redemption, interest rate, stated percentage | 7% | ||||
Liabilities | |||||
Current maturities of long-term debt of variable interest entities | $ 35 | 35 | |||
Long-term debt of variable interest entities, net | 933 | 933 | |||
Liabilities, Current | 5,352 | 4,873 | |||
Variable Interest Entity, Primary Beneficiary [Member] | |||||
Variable Interest Entities | |||||
Other long-term liabilities | 17 | 17 | |||
Liabilities | 1,007 | 995 | $ 1,000 | ||
Liabilities | |||||
Liabilities, Current | 57 | 45 | |||
Interest Expense | 12 | $ 12 | |||
Accounts Payable and Accrued Liabilities | $ 1 | $ 1 | |||
JSCCG | |||||
VIE Financing | |||||
Face amount | 900 | ||||
Holdco | |||||
VIE Financing | |||||
Face amount | $ 100 | ||||
SCCG | |||||
VIE Financing | |||||
Debt and Lease Obligation | $ 400 |
Other Long-Term Liabilities (De
Other Long-Term Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 | |
Other Long-Term Liabilities | |||
Deferred Revenue, Noncurrent | $ 46 | $ 45 | |
Interest Rate Derivative Liabilities, at Fair Value | 818 | 662 | |
Operating Lease, Liability, Noncurrent | 163 | 93 | |
Currency swap liabilities | [1] | 121 | 141 |
Fair value | 98 | 52 | |
EnergyRight® financing obligation | (81) | (81) | |
Deferred Compensation Liability, Classified, Noncurrent | 32 | 41 | |
Other long-term liabilities | 1,488 | 1,211 | |
Regulatory Liability, Noncurrent | 103 | 107 | |
Deferred Compensation Liability, Current | 32 | 65 | |
Deferred Revenue, Current | 23 | 21 | |
Operating Lease, Liability, Current | 81 | 71 | |
Operating Lease, Liability, Current | 81 | 71 | |
Accounts payable and accrued liabilities | |||
Other Long-Term Liabilities | |||
EnergyRight® financing obligation | (14) | (14) | |
Customer Advances for Construction | 60 | 39 | |
Other long-term liabilities | |||
Other Long-Term Liabilities | |||
Interest Rate Derivative Liabilities, at Fair Value | 782 | 627 | |
Currency swap liabilities | 112 | 131 | |
EnergyRight® financing obligation | (55) | (55) | |
Other | 154 | 111 | |
Customer Advances for Construction | $ 46 | $ 56 | |
[1]TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . |
Asset Retirement Obligations (D
Asset Retirement Obligations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2023 | |
Asset Retirement Obligations | ||
Asset Retirement Obligation, Period Increase (Decrease) | $ 81 | |
Amortization and Depreciation of Decontaminating and Decommissioning Assets | 47 | |
Asset Retirement Obligation, Beginning Balance | 7,489 | |
Settlements | (63) | |
Asset Retirement Obligation, Revision of Estimate | 78 | |
Accretion (recorded as regulatory asset) | 66 | |
Asset Retirement Obligation, Ending Balance | 7,570 | |
Current portion of ARO | (275) | $ (272) |
Changes in closure liabilities | 76 | |
Nuclear | ||
Asset Retirement Obligations | ||
Asset Retirement Obligation, Beginning Balance | 3,808 | |
Settlements | (4) | |
Asset Retirement Obligation, Revision of Estimate | 0 | |
Accretion Expense, Including Asset Retirement Obligations | 43 | |
Asset Retirement Obligation, Ending Balance | 3,847 | |
Non-nuclear | ||
Asset Retirement Obligations | ||
Asset Retirement Obligation, Beginning Balance | 3,681 | |
Settlements | (59) | |
Asset Retirement Obligation, Revision of Estimate | 78 | |
Accretion (recorded as regulatory asset) | 23 | |
Asset Retirement Obligation, Ending Balance | $ 3,723 |
Debt and Other Obligations Debt
Debt and Other Obligations Debt Outstanding (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Short-term debt | ||
Short-term debt, net | $ 1,042 | $ 432 |
Current maturities of power bonds | 1,022 | 1,022 |
Current maturities of long-term debt of variable interest entities | 35 | 35 |
Debt, Current | 2,099 | 1,489 |
Long-term debt | ||
Long-term power bonds | 17,990 | 17,970 |
Unamortized discounts, premiums, issues costs, and other | 123 | 126 |
Total long-term debt, net | 18,800 | 18,777 |
Total outstanding debt | 20,899 | 20,266 |
Long-term debt of variable interest entities, net | 933 | 933 |
Net exchange gain from currency transaction, noncurrent | $ 88 | $ 109 |
Debt and Other Obligations De_2
Debt and Other Obligations Debt Securities Activity (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | ||
Debt Instrument | ||||
Total long-term debt, net | $ 18,800 | $ 18,777 | ||
Redemptions and repurchases of power bonds | 1 | [1] | $ 1 | |
Amount of letters of credit outstanding | 6 | |||
Long-term power bonds, net | $ 17,867 | $ 17,844 | ||
Total | ||||
Debt Instrument | ||||
Percent of par value | 100% | |||
2009 Series B June Payment | ||||
Debt Instrument | ||||
Redemptions and repurchases of power bonds | $ 1 | |||
[1] (1) All redemptions were at 100 percent of par. |
Debt and Other Obligations Cred
Debt and Other Obligations Credit Facility Agreements (Details) | 3 Months Ended | |
Dec. 31, 2023 USD ($) Credit_facilities | Sep. 30, 2023 USD ($) | |
Line of Credit Facility [Line Items] | ||
Summary of Long-Term Credit Facilities | Summary of Long-Term Credit Facilities At December 31, 2023 (in millions) Maturity Date Facility Limit Letters of Credit Outstanding Cash Borrowings Availability February 2025 $ 500 $ 223 $ — $ 277 March 2026 150 38 — 112 September 2026 1,000 112 — 888 March 2027 1,000 96 — 904 Total $ 2,650 $ 469 $ — $ 2,181 | |
Borrowings under U.S. Treasury credit facility | $ 0 | |
February 2022 Credit Facility | 1,000,000,000 | |
Amount of letters of credit outstanding for credit facilities | 6,000,000 | |
Line of Credit | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity for credit facilities | 150,000,000 | |
Revolving Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Current borrowing capacity for credit facilities | $ 2,650,000,000 | |
Number of revolving credit facilities | Credit_facilities | 4 | |
December 2019 Credit Facility | $ 150,000,000 | |
June 2020 Credit Facility | 500,000,000 | |
September 2020 Credit Facility | 1,000,000,000 | |
Cash Borrowings-December 2019 Credit Facility | 0 | |
Cash Borrowings-June 2020 Credit Facility | 0 | |
Cash Borrowings-September 2020 Credit Facility | 0 | |
Total Cash Borrowings for Credit Facilities | 0 | |
Remaining Availability, December 2019 Credit Facility | 112,000,000 | |
Remaining Availability, February 2022 Credit Facility | 904,000,000 | |
Long-term Line of Credit, Borrowings 3 | 0 | |
Remaining Availability, June 2020 Credit Facility | 277,000,000 | |
Remaining Availability, September 2020 Credit Facility | 888,000,000 | |
Total Remaining Availability for Credit Facilities | 2,181,000,000 | |
Letter of Credit | ||
Line of Credit Facility [Line Items] | ||
Letters of Credit Outstanding, Amount 1 | 223,000,000 | |
Letter of Credit Outstanding, December 2019 Credit Facility | 38,000,000 | |
Letter of Credit Outstanding, February 2022 Credit Facility | 96,000,000 | |
Letter of Credit Outstanding, September 2020 Credit Facility | 112,000,000 | |
Amount of letters of credit outstanding for credit facilities | $ 469,000,000 | $ 535,000,000 |
Risk Management Activities an_3
Risk Management Activities and Derivative Transactions Derivative Instruments That Receive Hedge Accounting Treatment (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Reclassification to earnings from cash flow hedges in the next 12 months | $ (3) | ||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax | 19 | $ 34 | [1] |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | 20 | 71 | |
Fuel Expense | Commodity Contract under FHP | |||
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | 44 | 15 | |
Purchased Power Expense | Commodity Contract under FHP | |||
Summary of Derivative Instruments That Receive Hedge Accounting Treatment | |||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ 10 | $ 4 | |
[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 $3 million of gains from Accumulated other comprehensive income (loss) ("AOCI") to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt. |
Risk Management Activities an_4
Risk Management Activities and Derivative Transactions Derivative Instruments That Do Not Receive Hedge Accounting Treatment (Details) | 3 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | ||
Derivative | ||||
Change in Unrealized gains (losses) on Interest Rate Derivatives | $ (189,000,000) | $ 14,000,000 | ||
Fair value | 98,000,000 | $ 52,000,000 | ||
Increase (Decrease) in Derivative Assets | 123,000,000 | |||
Interest Rate Swap | ||||
Derivative | ||||
Amount recognized for unrealized gains (losses) | 0 | |||
Interest Rate Swap | Other Regulatory Assets (Liabilities) | ||||
Derivative | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (8,000,000) | (15,000,000) | [1] | |
Commodity Contract Derivatives | ||||
Derivative | ||||
Number of contracts | 45 | 54 | ||
Derivative, Nonmonetary Notional Amount | 366,000,000 | 318,000,000 | ||
Fair value | $ 29,000,000 | $ 31,000,000 | ||
Derivative, Term of Contract | 2 years | |||
Derivative, Term of Contract | 2 years | |||
Commodity Contract under FHP | ||||
Derivative | ||||
Number of contracts | 206 | 221 | ||
Derivative, Nonmonetary Notional Amount | 351 | 388 | ||
Fair value | $ (309,000,000) | $ (186,000,000) | ||
Derivative, Term of Contract | 4 years | |||
Derivative, Term of Contract | 4 years | |||
Commodity Contract under FHP | Other Regulatory Assets (Liabilities) | ||||
Derivative | ||||
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net | $ (54,000,000) | $ (19,000,000) | ||
[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 assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three months ended December 31, 2023 and for the three months ended December 31, 2022. (2) Of the amount recognized for the three months ended December 31, 2023, $44 million and $10 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for three months ended December 31, 2022, $15 million and $4 million were reported in Fuel expense and Purchased power expense, respectively. |
Risk Management Activities an_5
Risk Management Activities and Derivative Transactions Fair Values of TVA Derivatives (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Derivatives, Fair Value | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Fair value | 98 | 52 |
250 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (56) | (72) |
250 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (51) | (66) |
250 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (5) | (6) |
150 million Sterling currency swap | ||
Derivatives, Fair Value | ||
Fair value | (65) | (69) |
150 million Sterling currency swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (61) | (65) |
150 million Sterling currency swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (4) | (4) |
$1.0 billion notional interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | (607) | (499) |
$1.0 billion notional interest rate swap | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 1 | |
$1.0 billion notional interest rate swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (579) | (473) |
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (22) | |
$1.0 billion notional interest rate swap | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (6) | (27) |
Commodity contract derivatives | ||
Derivatives, Fair Value | ||
Fair value | 29 | 31 |
Commodity contract derivatives | Other long-term assets | ||
Derivatives, Fair Value | ||
Fair value | 12 | 12 |
Commodity contract derivatives | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 19 | 21 |
Commodity contract derivatives | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | (1) |
Commodity contract derivatives | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (1) | (1) |
Commodity Contract under FHP | ||
Derivatives, Fair Value | ||
Fair value | (309) | (186) |
Gross amounts of recognized liabilities | 317 | |
Commodity Contract under FHP | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (97) | (51) |
Commodity Contract under FHP | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (212) | (135) |
$476 million notational interest rate swap | ||
Derivatives, Fair Value | ||
Fair value | (211) | (159) |
$476 million notational interest rate swap | Other current assets | ||
Derivatives, Fair Value | ||
Fair value | 3 | |
$476 million notational interest rate swap | Other long-term liabilities | ||
Derivatives, Fair Value | ||
Fair value | (203) | (154) |
$476 million notational interest rate swap | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value | ||
Fair value | (8) | |
$476 million notational interest rate swap | Interest payable, current | ||
Derivatives, Fair Value | ||
Fair value | (8) | |
Fair Value, Inputs, Level 2 | ||
Derivatives, Fair Value | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Risk Management Activities an_6
Risk Management Activities and Derivative Transactions Currency Swaps Outstanding (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) | Mar. 31, 2023 Bond_issues | |
Derivative | ||
Number of currency swaps outstanding | Bond_issues | 2 | |
Amount of letters of credit outstanding for credit facilities | $ 6 | |
Associated TVA bond issues currency exposure | $ 400 | |
Minimum | 250 million Sterling currency swap | ||
Derivative | ||
Expiration date range of swaps | 2032 | |
Maximum | 150 million Sterling currency swap | ||
Derivative | ||
Expiration date range of swaps | 2043 |
Risk Management Activities an_7
Risk Management Activities and Derivative Transactions Derivatives Under FTP (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Fair value | 98 | 52 |
Commodity Contract under FHP | ||
Derivative | ||
Fair value | (309) | (186) |
Fair Value, Inputs, Level 2 | ||
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Risk Management Activities an_8
Risk Management Activities and Derivative Transactions Offsetting of Derivative Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Offsetting Assets [Line Items] | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | $ 31 | $ 37 |
Amount of letters of credit outstanding for credit facilities | 6 | |
Forward Contract Derivative Asset, at Fair Value | 3 | 11 |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 1,250 | 991 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Fair Value, Gross Liability | 8 | |
Letter of Credit | ||
Offsetting Assets [Line Items] | ||
Amount of letters of credit outstanding for credit facilities | 469 | 535 |
Currency Swap | ||
Offsetting Assets [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 121 | 141 |
Commodity Contract under FHP | ||
Offsetting Assets [Line Items] | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 309 | 186 |
Offsetting Derivative Assets [Abstract] | ||
Derivative Asset, Subject to Master Netting Arrangement, before Offset | 8 | |
Gross amounts of recognized liabilities | 317 | |
Interest Rate Swap | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 0 | 4 |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 818 | 662 |
Commodity Contract Derivatives | ||
Offsetting Assets [Line Items] | ||
Derivative Asset, Subject to Master Netting Arrangement, after Offset | 31 | 33 |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 2 | 2 |
Fair Value, Inputs, Level 2 | ||
Offsetting Assets [Line Items] | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Risk Management Activities an_9
Risk Management Activities and Derivative Transactions Offsetting for Derivative Liabilities (Details) $ in Millions | Dec. 31, 2023 USD ($) | Sep. 30, 2023 USD ($) | Mar. 31, 2023 Bond_issues |
Offsetting Liabilities [Line Items] | |||
Number of currency swaps outstanding | Bond_issues | 2 | ||
Accounts Receivable, before Allowance for Credit Loss, Current | $ 1,451 | $ 1,627 | |
Amount of letters of credit outstanding | 6 | ||
Forward Contract Derivative Asset, at Fair Value | 3 | 11 | |
Letter of Credit | |||
Offsetting Liabilities [Line Items] | |||
Amount of letters of credit outstanding | 469 | 535 | |
Interest Swap Collateral | |||
Offsetting Liabilities [Line Items] | |||
Amount of letters of credit outstanding | 443 | ||
Fair Value, Inputs, Level 2 | |||
Offsetting Liabilities [Line Items] | |||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Risk Management Activities a_10
Risk Management Activities and Derivative Transactions Collateral (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Derivative | ||
Amount of letters of credit outstanding | $ 6 | |
Forward Contract Derivative Asset, at Fair Value | 3 | $ 11 |
Likely cash collateral obligation increase | 22 | |
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 1,250 | 991 |
Collateralized Securities [Member] | ||
Derivative | ||
Derivative, Collateral, Right to Reclaim Cash | 537 | |
Credit Risk | ||
Derivative | ||
Derivative Liability, Subject to Master Netting Arrangement, after Offset | 1,300 | |
Letter of Credit | ||
Derivative | ||
Amount of letters of credit outstanding | 469 | 535 |
Interest Swap Collateral | ||
Derivative | ||
Amount of letters of credit outstanding | 443 | |
Interest rate swap collateral | ||
Derivative | ||
Amount of letters of credit outstanding | 509 | |
Fair Value, Inputs, Level 2 | ||
Derivative | ||
Forward Contract Derivative Asset, at Fair Value | $ 3 | $ 11 |
Risk Management Activities a_11
Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) Customers | Sep. 30, 2023 USD ($) | |
Derivative | ||
Accounts Receivable, before Allowance for Credit Loss, Current | $ | $ 1,451 | $ 1,627 |
Two Largest Customer Percentage of Total Operating Revenue | 1,600% | |
Moody's, A1 Rating [Member] | ||
Derivative | ||
Natural Gas Banking Counterparties Credit Rating | A1 | |
Moody's, B1 Rating [Member] | ||
Derivative | ||
Natural Gas Banking Counterparties Credit Rating | B1 | |
Moody's, A2 Rating | ||
Derivative | ||
Banking Counterparties Credit Rating | A2 | |
Credit of Customers | ||
Derivative | ||
Number of customers that represent the percent of sales | 2 | |
Number of customers that represent the percent of sales | 2 |
Risk Management Activities a_12
Risk Management Activities and Derivative Transactions Cash Flow from Hedging (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Cash Flow from Hedging [Abstract] | |
Associated bond issues currency exposure | $ 400 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements - Investments (Details) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 USD ($) Units | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Investment Gains (Losses) | |||
Financing Receivable, after Allowance for Credit Loss | $ 97 | $ 96 | |
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 | Units | 10 | ||
Number of readily available quoted exchange prices for the investments | 0 | ||
Investment funds | $ 4,472 | $ 4,123 | |
NDT [Member] | |||
Investment Gains (Losses) | |||
Investment funds | 3,000 | ||
ART [Member] | |||
Investment Gains (Losses) | |||
Investment funds | 1,300 | ||
LTDCP [Member] | |||
Investment Gains (Losses) | |||
Unrealized gains (losses) on investments | (1) | $ 0 | |
SERP | |||
Investment Gains (Losses) | |||
Unrealized gains (losses) on investments | (7) | (3) | |
ART [Member] | |||
Investment Gains (Losses) | |||
Unrealized gains (losses) on investments | (89) | (69) | |
NDT [Member] | |||
Investment Gains (Losses) | |||
Unrealized gains (losses) on investments | (197) | $ (136) | |
Real Estate Funds | NDT [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | 110 | ||
Real Estate Funds | ART [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | 54 | ||
Private Equity Funds [Member] | NDT [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | 296 | ||
Private Equity Funds [Member] | ART [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | 122 | ||
Private Credit [Member] | NDT [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | 88 | ||
Private Credit [Member] | ART [Member] | |||
Investment Gains (Losses) | |||
NDT unfunded commitments related to private equity and real estate | $ 47 |
Fair Value Measurements Fair _2
Fair Value Measurements Fair Value Measurements - Nonperformance Risk (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Nonperformance Risk | |
Derivative Credit Risk Valuation Adjustment, Derivative Assets | $ 1 |
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities | $ 1 |
Fair Value Measurements Fair _3
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Financing Receivable, after Allowance for Credit Loss | $ 97 | $ 96 | |||
Investments | |||||
Government debt securities | 522 | 451 | |||
Corporate debt securities | 321 | 300 | |||
Mortgage and asset-backed securities | 37 | 36 | |||
Institutional mutual funds | 309 | 288 | |||
Forward debt securities contracts | 3 | 11 | |||
Private credit measured at net asset value | 184 | 158 | |||
Private equity funds measured at net asset value(1) | 657 | 583 | [1] | ||
Private real estate funds measured at net asset value(1) | 408 | 387 | [1] | ||
Commingled funds measured at net asset value(1) | 1,184 | 1,156 | [1] | ||
Total investments | 4,472 | 4,123 | |||
Commodity contract derivatives | 31 | 33 | |||
Total | 4,503 | 4,160 | |||
Liabilities | |||||
Currency swaps | [2] | 121 | 141 | ||
Interest rate swaps | 818 | 662 | |||
Commodity contract derivatives | 2 | 2 | |||
Total | 1,250 | 991 | |||
Equity Securities, FV-NI | 684 | 608 | |||
Cash, Cash Equivalents, and Short-Term Investments | 163 | 145 | |||
Interest Rate Derivative Assets, at Fair Value | 4 | ||||
Government debt securities reclassed | 104 | ||||
Commingled funds reclassed | 21 | ||||
Commodity Contract under FHP | |||||
Liabilities | |||||
Derivative Liability, Not Subject to Master Netting Arrangement | 309 | 186 | |||
NDT [Member] | |||||
Liabilities | |||||
Debt and Equity Securities, Unrealized Gain (Loss) | 61 | $ 20 | |||
Debt and Equity Securities, Unrealized Gain (Loss) | 61 | 20 | |||
ART [Member] | |||||
Liabilities | |||||
Debt and Equity Securities, Unrealized Gain (Loss) | 18 | 10 | |||
Debt and Equity Securities, Unrealized Gain (Loss) | 18 | $ 10 | |||
RP | |||||
Liabilities | |||||
Debt and Equity Securities, Unrealized Gain (Loss) | 1 | ||||
Debt and Equity Securities, Unrealized Gain (Loss) | 1 | ||||
Fair Value, Inputs, Level 1 | |||||
Investments | |||||
Government debt securities | 453 | 391 | |||
Corporate debt securities | 0 | 0 | |||
Mortgage and asset-backed securities | 0 | 0 | |||
Institutional mutual funds | 309 | 288 | |||
Forward debt securities contracts | 0 | 0 | |||
Private credit measured at net asset value | 0 | 0 | |||
Private equity funds measured at net asset value(1) | 0 | 0 | [1] | ||
Private real estate funds measured at net asset value(1) | 0 | 0 | [1] | ||
Commingled funds measured at net asset value(1) | 0 | 0 | [1] | ||
Total investments | 1,446 | 1,287 | |||
Commodity contract derivatives | 0 | 0 | |||
Total | 1,446 | 1,287 | |||
Liabilities | |||||
Currency swaps | 0 | 0 | [2] | ||
Interest rate swaps | 0 | 0 | |||
Commodity contract derivatives | 0 | 0 | |||
Total | 0 | 0 | |||
Equity Securities, FV-NI | 684 | 608 | |||
Cash, Cash Equivalents, and Short-Term Investments | 0 | 0 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | ||||
Fair Value, Inputs, Level 1 | Commodity Contract under FHP | |||||
Liabilities | |||||
Derivative Liability, Not Subject to Master Netting Arrangement | 0 | 0 | |||
Fair Value, Inputs, Level 2 | |||||
Investments | |||||
Government debt securities | 69 | 60 | |||
Corporate debt securities | 321 | 300 | |||
Mortgage and asset-backed securities | 37 | 36 | |||
Institutional mutual funds | 0 | 0 | |||
Forward debt securities contracts | 3 | 11 | |||
Private credit measured at net asset value | 0 | 0 | |||
Private equity funds measured at net asset value(1) | 0 | 0 | [1] | ||
Private real estate funds measured at net asset value(1) | 0 | 0 | [1] | ||
Commingled funds measured at net asset value(1) | 0 | 0 | [1] | ||
Total investments | 593 | 552 | |||
Commodity contract derivatives | 31 | 33 | |||
Total | 624 | 589 | |||
Liabilities | |||||
Currency swaps | 121 | 141 | [2] | ||
Interest rate swaps | 818 | 662 | |||
Commodity contract derivatives | 2 | 2 | |||
Total | 1,250 | 991 | |||
Equity Securities, FV-NI | 0 | 0 | |||
Cash, Cash Equivalents, and Short-Term Investments | 163 | 145 | |||
Interest Rate Derivative Assets, at Fair Value | 4 | ||||
Fair Value, Inputs, Level 2 | Commodity Contract under FHP | |||||
Liabilities | |||||
Derivative Liability, Not Subject to Master Netting Arrangement | 309 | 186 | |||
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 | 0 | 0 | |||
Private credit measured at net asset value | 0 | 0 | |||
Private equity funds measured at net asset value(1) | 0 | 0 | [1] | ||
Private real estate funds measured at net asset value(1) | 0 | 0 | [1] | ||
Commingled funds measured at net asset value(1) | 0 | 0 | [1] | ||
Total investments | 0 | 0 | |||
Commodity contract derivatives | 0 | 0 | |||
Total | 0 | 0 | |||
Liabilities | |||||
Currency swaps | 0 | 0 | [2] | ||
Interest rate swaps | 0 | 0 | |||
Commodity contract derivatives | 0 | 0 | |||
Total | 0 | 0 | |||
Equity Securities, FV-NI | 0 | 0 | |||
Cash, Cash Equivalents, and Short-Term Investments | 0 | 0 | |||
Interest Rate Derivative Assets, at Fair Value | 0 | ||||
Fair Value, Inputs, Level 3 | Commodity Contract under FHP | |||||
Liabilities | |||||
Derivative Liability, Not Subject to Master Netting Arrangement | $ 0 | $ 0 | |||
[1]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. (4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities . |
Fair Value Measurements Fair _4
Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity contract derivatives | $ 31 | $ 33 |
Commodity contract derivatives | 2 | 2 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Commodity contract derivatives | 0 | 0 |
Commodity contract derivatives | $ 0 | $ 0 |
Fair Value Measurements Estimat
Fair Value Measurements Estimated Values of Financial Instruments Not Recorded at Fair Value (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Estimated Values of Financial Intruments Not Recorded at Fair Value | ||
EnergyRight® receivables, net (including current portion) | $ 55 | $ 55 |
Loans and other long-term receivables, net (including current portion) | 97 | 96 |
EnergyRight® financing obligations (including current portion) | 81 | 81 |
Unfunded loan commitments | 0 | 1 |
Membership interests of VIEs subject to mandatory redemption (including current portion) | 20 | 19 |
Long-term outstanding power bonds, net (including current maturities) | 19,079 | 17,963 |
Long-term debt of VIEs, net (including current maturities) | 987 | 927 |
Reported Value Measurement | ||
Estimated Values of Financial Intruments Not Recorded at Fair Value | ||
EnergyRight® receivables, net (including current portion) | 59 | 59 |
Loans and other long-term receivables, net (including current portion) | 105 | 104 |
EnergyRight® financing obligations (including current portion) | 69 | 69 |
Unfunded loan commitments | 0 | 0 |
Membership interests of VIEs subject to mandatory redemption (including current portion) | 18 | 18 |
Long-term outstanding power bonds, net (including current maturities) | 18,889 | 18,866 |
Long-term debt of VIEs, net (including current maturities) | $ 968 | $ 968 |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Income (Expense), Net | ||
External services | $ 4 | $ 3 |
Interest income | 10 | 7 |
Gains (losses) on investments | 9 | 6 |
Other income (expense), net | $ 23 | $ 16 |
Benefit Plans Components of Ben
Benefit Plans Components of Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pension Plan | ||
Retirement Plan Disclosure | ||
Service cost | $ 7 | $ 9 |
Interest cost | 144 | 142 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (124) | 123 |
Amortization of prior service cost | (22) | (22) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | 25 | (34) |
Net periodic benefit cost as acutarially determined | 30 | 40 |
Amount capitalized due to actions of regulator | 0 | (19) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 30 | 59 |
Other Postretirement Benefit Plan | ||
Retirement Plan Disclosure | ||
Service cost | 3 | 3 |
Interest cost | 5 | 5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | 0 | 0 |
Amortization of prior service cost | (4) | (4) |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (1) | 0 |
Net periodic benefit cost as acutarially determined | 3 | 4 |
Amount capitalized due to actions of regulator | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 3 | $ 4 |
Defined benefit plan contributions | 8 | |
Other Pension Plan | ||
Retirement Plan Disclosure | ||
Defined benefit plan contributions | 75 | |
401K [Member] | ||
Retirement Plan Disclosure | ||
Defined benefit plan contributions | $ 35 |
Benefit Plans Components of Net
Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Other Pension Plan | ||
Retirement Plan Disclosure | ||
Defined benefit plan contributions | $ 75 | |
Pension Benefits | ||
Retirement Plan Disclosure | ||
Service cost | 7 | $ 9 |
Interest cost | 144 | 142 |
Expected return on plan assets | 124 | (123) |
Amortization of prior service cost | (22) | (22) |
Recognized net actuarial loss | (25) | 34 |
Total net periodic benefit cost as actuarially determined | 30 | 40 |
Amount capitalized due to actions of regulator | 0 | 19 |
Total net periodic benefit cost | 30 | 59 |
Other Post-retirement Benefits | ||
Retirement Plan Disclosure | ||
Defined benefit plan contributions | 8 | |
Service cost | 3 | 3 |
Interest cost | 5 | 5 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (4) | (4) |
Recognized net actuarial loss | 1 | 0 |
Total net periodic benefit cost as actuarially determined | 3 | 4 |
Amount capitalized due to actions of regulator | 0 | 0 |
Total net periodic benefit cost | $ 3 | $ 4 |
Benefit Plans Contributions (De
Benefit Plans Contributions (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 USD ($) | |
Retirement Plan Disclosure | |
Remaining Employer Contributions | $ 225 |
Other Pension Plan | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | 75 |
defined benefit plan, plan assets, monthly contributions by employer | 25 |
Other Post-retirement Benefits | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | 8 |
SERP | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | 6 |
Rebates [Member] | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | 1 |
401K [Member] | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | 35 |
Minimum | Other Pension Plan | |
Retirement Plan Disclosure | |
Defined benefit plan contributions | $ 300 |
Contingencies and Legal Proce_2
Contingencies and Legal Proceedings Contingencies (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) Procedures Insurance_layers reactors | Sep. 30, 2023 USD ($) | |
Loss Contingencies | ||
Nuclear liability insurance | $ 450 | |
Assessment from licensees for each licensed reactor | $ 166 | |
Number of licensed reactors in US | reactors | 95 | |
Nuclear accident assessment limitation per year per unit | $ 25 | |
Maximum assessment per nuclear incident | 1,200 | |
Total amount of protection available | 16,200 | |
Amount of insurance available for loss at any one site | 2,100 | |
Maximum amount of retrospective premiums | 114 | |
Maximum idemnity if a covered accident takes or keeps a nuclear unit offline | 490 | |
Maximum retrospective premiums | 44 | |
Estimated future decommissioning cost | $ 7,570 | $ 7,489 |
Number of procedures for determining estimates for the costs of nuclear decommissioning | Procedures | 2 | |
Possible additional future costs for compliance with Clean Air Act requirements | $ 228 | |
Possible additional future costs for compliance with CCR requirements | 1,600 | |
Possible additional future costs for compliance with Clean Water requirements. | 197 | |
Estimated liability for cleanup and environmental work | 16 | |
Amount of insurance available for loss at any one site (top range) | 2,800 | |
Long-term debt of VIEs, net (including current maturities) | $ 987 | 927 |
The U.S. Congress is required to take action if these layes are exhausted | Insurance_layers | 2 | |
Environmental Remediation | ||
Loss Contingencies | ||
Accrual for Environmental Loss Contingencies, Significant Assumptions | 26 million | |
Accrual for Environmental Loss Contingencies, Significant Assumptions | 26 million | |
Nuclear | ||
Loss Contingencies | ||
Estimated future decommissioning cost | $ 3,847 | 3,808 |
Non-nuclear | ||
Loss Contingencies | ||
Estimated future decommissioning cost | $ 3,723 | $ 3,681 |
Contingencies and Legal Proce_3
Contingencies and Legal Proceedings Legal Proceedings (Details) | Dec. 31, 2023 Units |
Legal Proceedings | |
Number of licensed nuclear units | 7 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | ||
Subsequent Event [Line Items] | ||||
Redemptions and repurchases of power bonds | $ 1 | [1] | $ 1 | |
Current regulatory assets | 251 | $ 178 | ||
Interest expense | 262 | $ 262 | ||
Non-current regulatory assets | 5,551 | 5,566 | ||
Unrealized gains/losses on commodity derivatives | ||||
Subsequent Event [Line Items] | ||||
Current regulatory assets | 213 | 136 | ||
Non-current regulatory assets | $ 98 | $ 52 | ||
[1] (1) All redemptions were at 100 percent of par. |
Gallatin Coal Combustion Residu
Gallatin Coal Combustion Residual Facilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Other Long-Term Liabilities | ||
Current regulatory assets | $ 251 | $ 178 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
State [Line Items] | ||
Electric revenue | $ (2,732) | $ (2,959) |
Off System Sales of Electricity | 2 | |
Regulated and Unregulated Operating Revenue | $ 2,765 | 3,015 |
Total long duration contract revenue recognition | 2,487 | |
Off system sales | 4 | |
Percent of wholesale Credit offered | 310% | |
Percent of Generation Flexibility Credit | 5% | |
Pre-commercial Ops - capitalized revenue | $ (3) | 0 |
Regulated Operating Revenue | $ 2,731 | 2,963 |
NES's % of operating revenues | 800% | |
Percent of Generation Flexibility Credit | 5% | |
ALABAMA | ||
State [Line Items] | ||
Regulated Operating Revenue | $ 408 | 428 |
GEORGIA | ||
State [Line Items] | ||
Regulated Operating Revenue | 69 | 76 |
KENTUCKY | ||
State [Line Items] | ||
Regulated Operating Revenue | 177 | 198 |
MISSISSIPPI | ||
State [Line Items] | ||
Regulated Operating Revenue | 255 | 278 |
NORTH CAROLINA | ||
State [Line Items] | ||
Regulated Operating Revenue | 23 | 25 |
TENNESSEE | ||
State [Line Items] | ||
Regulated Operating Revenue | 1,789 | 1,941 |
VIRGINIA | ||
State [Line Items] | ||
Regulated Operating Revenue | $ 11 | $ 13 |
Revenue Customer Type (Details)
Revenue Customer Type (Details) $ in Millions | 3 Months Ended | |
Dec. 31, 2023 USD ($) Units | Dec. 31, 2022 USD ($) | |
Revenue, Major Customer [Line Items] | ||
MLGW's % of operating revenues | 800% | |
NES's % of operating revenues | 800% | |
Off System Sales of Electricity | $ 2 | |
Bill credits for LTA | $ (47) | $ (48) |
Number of LPCs signed LTA | Units | 147 | |
Number of LPCs signed Flexibility Agreement | Units | 92 | |
Percent of sales of electricity to LPCs | 91% | |
Pre-commercial Ops - capitalized revenue | $ (3) | 0 |
Regulated Operating Revenue | 2,731 | 2,963 |
Regulated and Unregulated Operating Revenue | 2,765 | 3,015 |
lpcs [Domain] | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 2,487 | 2,706 |
industries directly served [Domain] | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 217 | 225 |
federal agencies and other [Domain] | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 30 | 32 |
ALABAMA | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 408 | 428 |
GEORGIA | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 69 | 76 |
KENTUCKY | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 177 | 198 |
MISSISSIPPI | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 255 | 278 |
NORTH CAROLINA | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 23 | 25 |
TENNESSEE | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | 1,789 | 1,941 |
VIRGINIA | ||
Revenue, Major Customer [Line Items] | ||
Regulated Operating Revenue | $ 11 | $ 13 |
Revenue Unpaid Incentives (Deta
Revenue Unpaid Incentives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2023 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | |||
Paid Economic Incentives | $ 73 | $ 82 | |
Unpaid Economic Incentives | $ (181) | $ (188) |
Revenue Local Power Company C_2
Revenue Local Power Company Contracts (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2023 USD ($) Units | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Total long-duration contracts revenue recognition | $ | 2,487 |
Total percentage of operating revenues | 90% |
Number of LPCs signed LTA | Units | 147 |
Total Number of LPCs | Units | 153 |
5-year Termination Notice [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] | $ | $ 331 |
Percentage of total operating revenues | 12% |
Number of LPCs signed LTA | Units | 6 |
20-year Termination Notice [Member] | |
Long-term Contract for Purchase of Electric Power [Line Items] | |
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] | $ | $ 2,156 |
Percentage of total operating revenues | 78% |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Sep. 30, 2023 |
Amounts Recognized on TVA's Consolidated Balance Sheet [Line Items] | ||
Finance lease, asset | $ 562 | $ 572 |
Operating Lease, Liability, Current | 81 | 71 |
Operating Lease, Liability, Noncurrent | $ 163 | $ 93 |
Research and Development (Detai
Research and Development (Details) - USD ($) $ in Millions | 3 Months Ended | 48 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2026 | |
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Other Research and Development Expense | $ 9 | $ 16 | |
Forecast | |||
Research and Development Arrangement, Contract to Perform for Others [Line Items] | |||
Other Research and Development Expense | $ 88 |