TENNESSEE VALLEY AUTHORITY, 10-Q filed on 1/31/2023
Quarterly Report
v3.22.4
DEI Document
shares in Millions
 3 Months Ended
Dec. 31, 2022
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, 2022
Document Fiscal Year Focus 2023
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
v3.22.4
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Operating revenues    
Sales of Electricity $ 2,963 $ 2,538
Other revenue 52 45
Revenues 3,015 2,583
Operating expenses    
Fuel 615 466
Purchased power 491 369
Operating and maintenance 827 780
Depreciation and amortization 533 510
Tax equivalents 151 133
Total operating expenses 2,617 2,258
Operating income 398 325
Other income (expense), net 16 14
Defined Benefit Plan, Other Cost (Credit) 51 65
Interest expense    
Interest expense 262 263
Net income (loss) $ 101 $ 11
v3.22.4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($)
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Net income (loss) $ 101,000,000 $ 11,000,000
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax 71,000,000 5,000,000
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax 34,000,000 [1] 1,000,000
Other comprehensive income (loss)    
Total other comprehensive income (loss) 37,000,000 4,000,000
Total comprehensive income (loss) $ 138,000,000 $ 15,000,000
[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 $5 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.
v3.22.4
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Current assets    
Cash and cash equivalents $ 500 $ 500
Accounts receivable, net 1,749 2,007
Inventories, net 1,207 1,072
Regulatory assets 320 138
Other current assets 221 257
Total current assets 3,997 3,974
Property, plant, and equipment    
Completed plant 66,728 66,442
Less accumulated depreciation (34,517) (34,239)
Net completed plant 32,211 32,203
Construction in progress 2,648 2,535
Nuclear fuel 1,520 1,492
Finance lease, asset 615 630
Total property, plant, and equipment, net 36,994 36,860
Investment funds 3,913 3,671
Regulatory and other long-term assets    
Regulatory assets 5,909 6,134
Operating Lease, Right-of-Use Asset 144 155
Other long-term assets 353 394
Total regulatory and other long-term assets 6,406 6,683
Total assets 51,310 51,188
Current liabilities    
Accounts payable and accrued liabilities 2,362 2,466
Accrued interest 255 273
Asset Retirement Obligation, Current 287 275
Regulatory liabilities 277 391
Short-term debt, net 1,618 1,172
Current maturities of power bonds 29 29
Current maturities of long-term debt of variable interest entities 39 39
Total current liabilities 4,867 4,645
Other liabilities    
Post-retirement and post-employment benefit obligations 2,998 3,072
Asset retirement obligations 6,868 6,887
Finance Lease, Liability, Noncurrent 619 628
Other long-term liabilities 1,374 1,485
Regulatory liabilities 109 172
Total other liabilities 11,968 12,244
Long-term debt, net    
Long-term power bonds, net 17,865 17,826
Long-term debt of variable interest entities, net 968 968
Total long-term debt, net 18,833 18,794
Total liabilities 35,668 35,683
Proprietary capital    
Power program appropriation investment 258 258
Power program retained earnings 14,902 14,800
Total power program proprietary capital 15,160 15,058
Nonpower programs appropriation investment, net 531 533
Accumulated other comprehensive income (loss) (49) (86)
Total proprietary capital 15,642 15,505
Total liabilities and proprietary capital $ 51,310 $ 51,188
v3.22.4
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents $ 520 $ 526
Cash flows from operating activities    
Net income (loss) 101 11
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) 538 515
Amortization of nuclear fuel cost 88 88
Non-cash retirement benefit expense 63 82
Other regulatory amortization and deferrals (69) 32
Changes in current assets and liabilities    
Accounts receivable, net 256 181
Inventories and other current assets, net (216) 101
Accounts payable and accrued liabilities (86) (140)
Accrued interest (16) (13)
Pension contributions (75) (76)
Other, net (145) 86
Net cash provided by operating activities 439 493
Cash flows from investing activities    
Construction expenditures (605) (612)
Nuclear fuel expenditures (192) (137)
Acquisition of leasehold interests in combustion turbine assets (78) 0
Loans and other receivables    
Advances 0 (3)
Repayments 3 6
Other, net (4) 12
Net cash used in investing activities (876) (734)
Long-term debt    
Redemptions and repurchases of power bonds (1) (1)
Short-term debt issues (redemptions), net 446 286
Finance Lease, Principal Payments 10 31
Other, net 2 (5)
Net cash provided by (used in) financing activities 437 249
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect 0 $ 8
Cash and cash equivalents at end of period $ 500  
v3.22.4
CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL (UNAUDITED) - USD ($)
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2022
Sep. 30, 2021
Power Program Appropriation Investment $ 258,000,000   $ 258,000,000  
Power Program Retained Earnings 14,902,000,000   14,800,000,000  
Nonpower Programs Appropriation Investment, Net 531,000,000   533,000,000  
Accumulated Other Comprehensive Income (Loss) from Net Gains (Losses) on Cash Flow Hedges (49,000,000)   (86,000,000)  
Total Proprietary Capital 15,642,000,000 $ 14,479,000,000 15,505,000,000 $ 14,465,000,000
Net income (loss) 101,000,000 11,000,000    
Total other comprehensive income (loss) 37,000,000 4,000,000    
Return on power program appropriation investment (1,000,000) (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 14,902,000,000 13,701,000,000 14,800,000,000 13,689,000,000
Net income (loss) 103,000,000 13,000,000    
Total other comprehensive income (loss) 0 0    
Return on power program appropriation investment (1,000,000) (1,000,000)    
Nonpower Programs Appropriation Investment, Net        
Nonpower Programs Appropriation Investment, Net 531,000,000 538,000,000 533,000,000 540,000,000
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 (49,000,000) (18,000,000) $ (86,000,000) $ (22,000,000)
Net income (loss) 0 0    
Total other comprehensive income (loss) 37,000,000 4,000,000    
Return on power program appropriation investment $ 0 $ 0    
v3.22.4
Supplemental Cash Flow Information Statement - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Other Significant Noncash Transactions [Line Items]    
Capital Expenditures Incurred but Not yet Paid $ 425 $ 417
v3.22.4
Statement of Cash Flows, Supplemental Disclosures
 3 Months Ended
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures Supplemental Cash Flow Information
    Construction in progress and asset retirement obligation project accruals and nuclear fuel expenditures included in Accounts payable and accrued liabilities at December 31, 2022 and 2021, were $425 million and $417 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the three months ended December 31, 2022 and 2021, as non-cash investing 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.
v3.22.4
Summary of Significant Accounting Policies (Text Block)
 3 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
Nature of Operations and Summary of Significant Accounting Policies Summary of Significant Accounting Policies
General

The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt.  TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates. Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people.

    TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development. TVA performs these management duties in cooperation with other federal and state agencies that have jurisdiction and authority over certain aspects of the river system. In addition, the TVA Board of Directors ("TVA Board") has established two councils — the Regional Resource Stewardship Council and the Regional Energy Resource Council — to advise TVA on its stewardship activities in the Tennessee Valley and its energy resource activities.

The power program has historically been separate and distinct from the stewardship programs.  It is required to be self-supporting from power revenues and proceeds from power financings, such as proceeds from the issuance of bonds, notes, or other evidences of indebtedness (collectively, "Bonds").  Although TVA does not currently receive Congressional appropriations, it is required to make annual payments to the United States Department of the Treasury ("U.S. Treasury") as a return on the government's appropriation investment in TVA's power facilities (the "Power Program Appropriation Investment").  In the 1998 Energy and Water Development Appropriations Act, Congress directed TVA to fund essential stewardship activities related to its management of the Tennessee River system and nonpower or stewardship properties with power revenues in the event that there were insufficient appropriations or other available funds to pay for such activities in any fiscal year.  Congress has not provided any appropriations to TVA to fund such activities since 1999.  Consequently, during 2000, TVA began paying for essential stewardship activities primarily with power revenues, with the remainder funded with user fees and other forms of
revenues derived in connection with those activities.  The activities related to stewardship properties do not meet the criteria of an operating segment under accounting principles generally accepted in the United States of America ("GAAP").  Accordingly, these assets and properties are included as part of the power program, TVA's only operating segment.

Power rates are established by the TVA Board as authorized by the Tennessee Valley Authority Act of 1933, as amended, 16 U.S.C. §§ 831-831ee ("TVA Act").  The TVA Act requires TVA to charge rates for power that will produce gross revenues sufficient to provide funds for operation, maintenance, and administration of its power system; payments to states and counties in lieu of taxes ("tax equivalents"); debt service on outstanding indebtedness; payments to the U.S. Treasury in repayment of and as a return on the Power Program Appropriation Investment; and such additional margin as the TVA Board may consider desirable for investment in power system assets, retirement of outstanding Bonds in advance of maturity, additional reduction of the Power Program Appropriation Investment, and other purposes connected with TVA's power business. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment with the 2014 payment; therefore, this repayment obligation is no longer a component of rate setting.  In setting TVA's rates, the TVA Board is charged by the TVA Act to have due regard for the primary objectives of the TVA Act, including the objective that power shall be sold at rates as low as are feasible.  Rates set by the TVA Board are not subject to review or approval by any state or other federal regulatory body.

Fiscal Year

TVA's fiscal year ends September 30.  Years (2023, 2022, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Cost-Based Regulation

Since the TVA Board is authorized by the TVA Act to set rates for power sold to its customers, TVA is self-regulated. Additionally, TVA's regulated rates are designed to recover its costs.  Based on current projections, TVA believes that rates, set at levels that will recover TVA's costs, can be charged and collected.  As a result of these factors, TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  TVA assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, potential legislation, and changes in technology.  Based on these assessments, TVA believes the existing regulatory assets are probable of recovery.  This determination reflects the current regulatory and political environment and is subject to change in the future.  If future recovery of regulatory assets ceases to be probable, or TVA is no longer considered to be a regulated entity, then costs would be required to be written off.  All regulatory asset write-offs would be required to be recognized in earnings in the period in which future recovery ceases to be probable.

Basis of Presentation

TVA prepares its consolidated interim financial statements in conformity with 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, 2022, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2022 (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.

Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.
Cash, Cash Equivalents, and Restricted Cash

    Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to compliance with certain environmental regulations.

    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, 2022At September 30, 2022
Cash and cash equivalents$500 $500 
Restricted cash and cash equivalents included in Other long-term assets20 20 
Total cash, cash equivalents, and restricted cash$520 $520 

Allowance for Uncollectible Accounts

    TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period.

To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.

To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.

    The allowance for uncollectible accounts was less than $1 million at both December 31, 2022, and September 30, 2022, for trade accounts receivable. Additionally, loans receivable of $109 million and $105 million at December 31, 2022, and September 30, 2022, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $3 million at both December 31, 2022 and September 30, 2022.

Inventories

Certain Fuel, Materials, and Supplies.  Materials and supplies inventories are valued using an average unit cost method. A new average cost is computed after each inventory purchase transaction, and inventory issuances are priced at the latest moving weighted average unit cost. Coal, fuel oil, and natural gas inventories are valued using an average cost method. A new weighted average cost is computed monthly, and monthly issues are priced accordingly.

Renewable Energy Certificates. TVA accounts for Renewable Energy Certificates ("RECs") using the specific identification cost method. RECs that are acquired through power purchases are recorded as inventory and charged to purchased power expense when the RECs are subsequently used or sold. TVA assigns a value to the RECs at the inception of the power purchase arrangement using a relative standalone selling price approach. RECs created through TVA-owned asset generation are recorded at zero cost.

Emission Allowances.  TVA accounts for emission allowances using the specific identification cost method. Allowances that are acquired through third party purchases are recorded as inventory at cost and charged to operating expense based on tons emitted during the respective compliance periods.  
Allowance for Inventory Obsolescence.  TVA reviews materials and supplies inventories by category and usage on a periodic basis.  Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data.  TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence.

Revenues

TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month.  Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements.  Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net.

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 $466 million and $453 million for the three months ended December 31, 2022 and 2021, respectively. See Note 6 — Plant Closures for a discussion of the impact of plant closures.
v3.22.4
Impact of New Accounting Standards and Interpretations (Text Block)
 3 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Accounting Standards Update and Change in Accounting Principle Impact of New Accounting Standards and Interpretations     
    The following accounting standards have been issued but, at December 31, 2022, were not effective and had not been adopted by TVA:
Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Description
This guidance requires an entity (acquirer) to recognize and measure contract assets and contract 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its financial condition, results of operations, or cash flows.
v3.22.4
Accounts Receivable, Net (Text Block)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Power receivables$1,633 $1,899 
Other receivables116 108 
Accounts receivable, net(1)
$1,749 $2,007 
Note
(1) Allowance for uncollectible accounts was less than $1 million at both December 31, 2022, and September 30, 2022, and therefore is not represented in the table above.
v3.22.4
Inventories, Net (Text Block)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Materials and supplies inventory$824 $808 
Fuel inventory426 303 
Renewable energy certificates/emissions allowance inventory, net19 18 
Allowance for inventory obsolescence(62)(57)
Inventories, net$1,207 $1,072 
v3.22.4
Deferred Costs, Capitalized, Prepaid, and Other Assets (Text Block)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Commodity contract derivative assets$59 $172 
Collateral receivable50 — 
Other112 85 
Other current assets$221 $257 

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 discussion of TVA's commodity contract derivatives.

Collateral Receivable. On December 27, 2022, TVA deposited $50 million of cash collateral with PJM Settlement Inc. (“PJM”) to provide security for TVA’s power purchases from PJM during the winter season.
v3.22.4
Plant Closures (Text Block)
 3 Months Ended
Dec. 31, 2022
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 in 2019, the retirement of Bull Run Fossil Plant ("Bull Run") by December 2023 was approved. In addition, TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation
includes environmental reviews, public input, and TVA Board approval. Due to these evaluations, certain planning assumptions were updated, and their financial impacts are discussed below.

In January 2023, TVA issued its Record of Decision to retire the two remaining coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028.

Financial Impact

TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. As a result of TVA's decision to accelerate the retirement of Bull Run, TVA has recognized a cumulative $518 million of accelerated depreciation since the second quarter of 2019. Of this amount, $36 million and $35 million were recognized for Bull Run during the three months ended December 31, 2022 and 2021, respectively.

TVA also recognized $4 million and $6 million in Operating and maintenance expense related to additional inventory reserves and write-offs for the coal-fired fleet, including Bull Run, during the three months ended December 31, 2022 and 2021, respectively.
v3.22.4
Other Long-Term Assets (Text Block)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Loans and other long-term receivables, net$106 $99 
EnergyRight® receivables, net
48 49 
Prepaid long-term service agreements63 74 
Commodity contract derivative assets43 102 
Other93 70 
Total other long-term assets$353 $394 

Loans and Other Long-Term Receivables. TVA's loans and other long-term receivables primarily consist of economic development loans for qualifying organizations and a receivable for reimbursements to recover the cost of providing long-term, on-site storage for spent nuclear fuel. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At December 31, 2022 and September 30, 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $3 million and $6 million, respectively.

EnergyRight® Receivables. In association with the EnergyRight® program, TVA's local power company customers ("LPCs") offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At both December 31, 2022, and September 30, 2022, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $13 million. 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, 2022At September 30, 2022
EnergyRight® loan reserve
$1 $1 
Economic development loan collective reserve1 1 
Economic development loan specific loan reserve1 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, 2022, and September 30, 2022, prepayments of $17 million and $12 million, respectively, were recorded in Other current assets.

Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. See Note 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.
v3.22.4
Regulatory Assets and Liabilities
 3 Months Ended
Dec. 31, 2022
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Assets and Liabilities Regulatory Assets and Liabilities
    TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. Components of regulatory assets and regulatory liabilities are summarized in the table below.
Regulatory Assets and Liabilities
(in millions)
 At December 31, 2022At September 30, 2022
Current regulatory assets  
Unrealized losses on interest rate derivatives$41 $47 
Unrealized losses on commodity derivatives137 14 
Fuel cost adjustment receivable142 77 
Total current regulatory assets320 138 
Non-current regulatory assets  
Retirement benefit plans deferred costs1,809 1,839 
Non-nuclear decommissioning costs2,769 2,856 
Unrealized losses on interest rate derivatives474 479 
Nuclear decommissioning costs705 821 
Unrealized losses on commodity derivatives15 1 
Other non-current regulatory assets137 138 
Total non-current regulatory assets5,909 6,134 
Total regulatory assets$6,229 $6,272 
Current regulatory liabilities  
Fuel cost adjustment tax equivalents$218 $218 
Unrealized gains on commodity derivatives59 173 
Total current regulatory liabilities277 391 
Non-current regulatory liabilities  
Retirement benefit plans deferred credits66 70 
Unrealized gains on commodity derivatives43 102 
Total non-current regulatory liabilities109 172 
Total regulatory liabilities$386 $563 
v3.22.4
Variable Interest Entities
 3 Months Ended
Dec. 31, 2022
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 7.0 percent, which is reflected as interest expense in the Consolidated Statements of Operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC 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, 2022, and September 30, 2022, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
(in millions)
 At December 31, 2022At September 30, 2022
Current liabilities 
Accrued interest$22 $10 
Accounts payable and accrued liabilities2 2 
Current maturities of long-term debt of variable interest entities39 39 
Total current liabilities
63 51 
Other liabilities
Other long-term liabilities18 18 
Long-term debt, net
Long-term debt of variable interest entities, net968 968 
Total liabilities$1,049 $1,037 

Interest expense of $12 million and $13 million related to debt of VIEs and membership interests of VIEs subject to mandatory redemption is included on the Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021, respectively.

    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.
v3.22.4
Other Long-Term Liabilities
 3 Months Ended
Dec. 31, 2022
Other Liabilities, Noncurrent [Abstract]  
Other Long-Term Liabilities Other Long-Term Liabilities
Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to operating leases. The table below summarizes the types and amounts of Other long-term liabilities:
Other Long-Term Liabilities
(in millions)
 At December 31, 2022At September 30, 2022
Interest rate swap liabilities$816 $851 
Operating lease liabilities85 93 
Currency swap liabilities159 228 
EnergyRight® financing obligation
57 58 
Long-term deferred compensation28 39 
Advances for construction42 53 
Long-term deferred revenue 40 39 
Other147 124 
Total other long-term liabilities$1,374 $1,485 

    Interest Rate Swap Liabilities. TVA uses interest rate swaps to fix variable short-term debt to a fixed rate. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets. At December 31, 2022, and September 30, 2022, the carrying amount of the interest rate swap liabilities reported in Accounts payable and accrued liabilities and Accrued interest was $41 million and $54 million, respectively. See Note 13 — Risk Management Activities and Derivative Transactions — 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, 2022 and September 30, 2022, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $60 million and $59 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. At December 31, 2022 and September 30, 2022, the carrying amount of the currency swap liabilities recorded in Accounts payable and accrued liabilities was $10 million and $12 million, respectively. See Note 13 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities.

EnergyRight® Financing Obligation. TVA purchases certain loans receivable from its LPCs in association with the EnergyRight® program. The current and long-term portions of the resulting financing obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets. At December 31, 2022, and September 30, 2022, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $15 million and $14 million, respectively. 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, 2022 and September 30, 2022, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $29 million and $53 million, respectively.

Advances for Construction. TVA receives refundable and non-refundable advances for construction that are generally intended to defray all or a portion of the costs of building or extending TVA’s existing power assets. Amounts received are deferred as a liability with the long-term portion representing amounts that will not be recognized within the next 12 months. As projects meet milestones or other contractual obligations, the refundable portion is refunded to the customer and the non-refundable portion is recognized as contributions in aid of construction and offsets the cost of plant assets. At December 31, 2022 and September 30, 2022, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $52 million and $33 million, respectively.

Long-Term Deferred Revenue. Long-term deferred revenue represents payments received that exceed services rendered resulting in the deferral of revenue. 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, 2022 and September 30, 2022, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $19 million and $16 million, respectively.
v3.22.4
Asset Retirement Obligations
 3 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations Asset Retirement Obligations
During the three months ended December 31, 2022, TVA's total asset retirement obligations ("ARO") liability decreased $7 million as a result of settlements related to retirement projects that were conducted during the period, partially offset by periodic accretion. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During the three months ended December 31, 2022, $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
 NuclearNon-NuclearTotal
Balance at September 30, 2022
$3,643 $3,519 $7,162 (1)
Settlements— (68)(68)(2)
Revisions in estimate 3 (1)2 
Accretion (recorded as regulatory asset)41 18 59 
Balance at December 31, 2022$3,687 $3,468 $7,155 (1)
Notes
(1) Includes $287 million and $275 million at December 31, 2022, and September 30, 2022, respectively, in Current liabilities.
(2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of ($57) million.
v3.22.4
Debt and Other Obligations
 3 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
Debt Outstanding

Total debt outstanding at December 31, 2022, and September 30, 2022, consisted of the following:
Debt Outstanding 
(in millions)
 At December 31, 2022At September 30, 2022
Short-term debt  
Short-term debt, net of discounts$1,618 $1,172 
Current maturities of power bonds issued at par29 29 
Current maturities of long-term debt of VIEs issued at par39 39 
Total current debt outstanding, net1,686 1,240 
Long-term debt  
Long-term power bonds(1)
17,987 17,950 
Long-term debt of VIEs, net968 968 
Unamortized discounts, premiums, issue costs, and other(122)(124)
Total long-term debt, net18,833 18,794 
Total debt outstanding$20,519 $20,034 
Note
(1) Includes net exchange gain from currency transactions of $114 million and $150 million at December 31, 2022, and September 30, 2022, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2022, to December 31, 2022:
Debt Securities Activity
 Date
Amount
(in millions)
Redemptions/Maturities(1)
 
 2009 Series BDecember 2022$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 approximately $2.7 billion: a $150 million credit facility that matures on February 9, 2024, a $500 million credit facility that matures on February 1, 2025, a $1.0 billion credit facility that matures on September 21, 2026, and a $1.0 billion credit facility that matures on March 25, 2027. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At December 31, 2022, and September 30, 2022, there were approximately $586 million and $704 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 13 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral.
The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:
Summary of Long-Term Credit Facilities
At December 31, 2022
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
 February 2024$150 $38 $— $112 
February 2025500 302 — 198 
September 20261,000 100 — 900 
March 20271,000 146 — 854 
Total$2,650 $586 $— $2,064 
    
TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2023 with a maturity date of September 30, 2023. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less. There were no outstanding borrowings under the facility at December 31, 2022. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

Lease/Leasebacks
    
    TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking combustion turbine units ("CTs") as well as certain qualified technological equipment and software ("QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. There were no outstanding leaseback obligations related to the remaining CTs and QTE at December 31, 2022 and September 30, 2022. Prior to 2021, TVA made final rent payments involving 16 CTs and acquired the equity interest related to these transactions. Rent payments under the remaining CT lease/leaseback transactions were made through January 2022. In December 2021, TVA gave notice of its election to acquire the leasehold interests related to the remaining eight CTs for a total of $155 million. One associated acquisition closed in December 2022 for $78 million. As a result, TVA recorded the cash consideration as reacquired rights, which is an intangible asset included in Completed plant on the Consolidated Balance Sheet. The amount will be amortized over the remaining estimated useful life of the underlying CTs. TVA recognized less than $1 million of amortization expense related to the reacquired rights within the Consolidated Statement of Operations for the three months ended December 31, 2022. Transaction costs were not material. The estimated amortization expense for the remainder of 2023 is $2 million and will be $3 million annually through December 2052. The other acquisition is expected to close in May 2023.
v3.22.4
Risk Management Activities and Derivative Transactions
 3 Months Ended
Dec. 31, 2022
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.  Other than certain derivative instruments in its trust investment funds, it is TVA's policy to enter into these derivative transactions solely for hedging purposes and not for speculative purposes.

Overview of Accounting Treatment

TVA recognizes certain of its derivative instruments as either assets or liabilities on its Consolidated Balance Sheets at fair value.  The accounting for changes in the fair value of these instruments depends on (1) whether TVA uses regulatory accounting to defer the derivative gains and losses, (2) whether the derivative instrument has been designated and qualifies for hedge accounting treatment, and (3) if so, the type of hedge relationship (for example, cash flow hedge).
    The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
(in millions)
Three Months Ended December 31
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20222021
Currency swapsTo 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$71 $5 

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 Relationship20222021
Currency swaps$34 $1 
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 $5 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
(in millions)
Three Months Ended December 31
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20222021
Interest rate swapsTo 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		$(15)$(29)
Commodity derivatives
under the FHP(2)
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)
(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, 2022 and for the three months ended December 31, 2021.
(2) Of the amount recognized for the 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, 2022At September 30, 2022
Derivatives That Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£250 million Sterling
$(88)
Accounts payable and accrued liabilities $(6); Other long-term liabilities $(82)
$(130)
Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123)
£150 million Sterling
(81)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(77)
(110)
Accounts payable and
accrued liabilities $(5); Other long-term liabilities $(105)
Derivatives That Do Not Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps    
$1.0 billion notional$(639)
Accounts payable and
accrued liabilities $(24); Accrued interest $(9);
Other long-term liabilities
$(606)
$(672)
Accounts payable and
accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630)
$476 million notional(218)
Accounts payable and
accrued liabilities $(8);
Other long-term liabilities
$(210)
(233)
Accounts payable and
accrued liabilities $(3); Accrued interest $(9);
Other long-term liabilities
$(221)
Commodity contract derivatives71 
Other current assets $59; Other long-term assets $21; Accounts payable and accrued liabilities $(8); Other long-term liabilities $(1)
145 
Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1)
Commodity derivatives under the FHP(121)
Other long-term assets $22; Accounts payable and accrued liabilities $(129); Other long-term liabilities $(14)
115 
Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8)


Cash Flow Hedging Strategy for Currency Swaps

To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred.  TVA had two currency swaps outstanding at December 31, 2022, 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 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, 2022 and 2021, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $14 million and increase in unrealized losses of $11 million, respectively. TVA may hold short-term debt balances lower than the notional amount of the interest rate swaps from time to time due to changes in business conditions and
other factors. While actual balances vary, TVA generally plans to maintain average balances of short-term debt equal to or in excess of the combined notional amount of the interest rate swaps.
    
Commodity Derivatives. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA marks to market these natural gas contracts and defers the fair market values as regulatory assets or liabilities on a gross basis. At December 31, 2022, TVA's natural gas contract derivatives had terms of up to three years.
Commodity Contract Derivatives 
 At December 31, 2022At September 30, 2022
 
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives48356 million mmBtu$71 44296 million mmBtu$145 

Commodity Derivatives under the FHP. In 2022, TVA reinstated the Financial Hedging Program ("FHP"), and hedging activity began under the program. Currently, TVA is hedging exposure to the price of natural gas under the FHP. There is no Value at Risk aggregate transaction limit under the current FHP structure, but the TVA Board reviews and authorizes the use of tolerances and measures annually. TVA's policy prohibits trading financial instruments under the FHP for speculative purposes. At December 31, 2022, TVA's natural gas swap contracts under the FHP had remaining terms of up to five years.

Commodity Derivatives under Financial Hedging Program(1)
At December 31, 2022At September 30, 2022
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Natural gas
Swap contracts253300 million mmBtu$(121)225256 million mmBtu$115 
Note
(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.

TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity. The fair value of commodity derivatives under the FHP decreased $236 million primarily due to a decrease in forward natural gas prices at December 31, 2022, as compared to September 30, 2022.
Offsetting of Derivative Assets and Liabilities

    The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:
Derivative Assets and Liabilities(1)
(in millions)
 At December 31, 2022At September 30, 2022
Assets
Commodity contract derivatives$80 $152 
Commodity derivatives under the FHP(2)
22 123 
Total derivatives subject to master netting or similar arrangement$102 $275 
Liabilities
Currency swaps$169 $240 
Interest rate swaps(3)
857 905 
Commodity contract derivatives 9 7 
Commodity derivatives under the FHP(2)
143 8 
Total derivatives subject to master netting or similar arrangement$1,178 $1,160 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's
Consolidated Balance Sheets at either December 31, 2022, or September 30, 2022.
(2) At December 31, 2022, the gross derivative asset and gross derivative liability was $61 million and $182 million, respectively, with offsetting amounts for each totaling $39 million. TVA received $3 million of collateral from counterparties as of December 31, 2022, which is recorded separately from the fair values of the derivative assets and liabilities and reported in Accounts payable and accrued liabilities.
(3) Letters of credit of approximately $586 million and $704 million were posted as collateral at December 31, 2022, and September 30, 2022, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.

Other Derivative Instruments

Investment Fund Derivatives.  Investment funds consist primarily of funds held in the Nuclear Decommissioning Trust ("NDT"), the Asset Retirement Trust ("ART"), the Supplemental Executive Retirement Plan ("SERP"), and the TVA Deferred Compensation Plan ("DCP"). 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, 2022, and September 30, 2022, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $9 million and $4 million at December 31, 2022, and September 30, 2022, respectively.

Collateral.  TVA's interest rate swaps, currency swaps, and commodity derivatives under the FHP contain contract provisions that require a party to post collateral (in a form such as cash or a letter of credit) when the party's liability balance under the agreement exceeds a certain threshold.  At December 31, 2022, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $1.2 billion.  TVA's collateral obligations at December 31, 2022, under these arrangements were $569 million, for which TVA had posted $586 million in letters of credit. These letters of credit reduce the available balance under the related credit facilities.  TVA's assessment of the risk of its nonperformance includes a reduction in its exposure under the interest rate swap contracts as a result of this posted collateral. In addition, as of December 31, 2022, TVA received $3 million of collateral from counterparties related to the commodity derivatives under the FHP.

For all of its derivative instruments with credit-risk related contingent features:
    
•If TVA remains a majority-owned U.S. government entity but Standard & Poor's Financial Services, LLC 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.

Other Collateral

On December 27, 2022, TVA deposited $50 million of cash collateral with PJM to provide security for TVA's power purchases from PJM during the winter season. In addition, on January 4, 2023, TVA deposited $50 million of cash collateral with the Midcontinent Independent System Operator ("MISO") to provide security for TVA's power purchases from MISO for the winter season.

Counterparty Risk

    TVA may be exposed to certain risks when a counterparty has the potential to fail to meet its obligations in accordance with agreed terms. These risks may be related to credit, operational, or nonperformance matters. To mitigate certain counterparty risk, TVA analyzes the counterparty's financial condition prior to entering into an agreement, establishes credit limits, monitors the appropriateness of those limits, as well as any changes in the creditworthiness of the counterparty, on an ongoing basis, and when required, employs credit mitigation measures, such as collateral or prepayment arrangements and master purchase and sale agreements.

Customers.  TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $1.6 billion and $1.9 billion of receivables from power sales outstanding at December 31, 2022, and September 30, 2022, respectively, the majority of the counterparties were rated investment grade. The obligations of these customers that are not investment grade are secured by collateral. TVA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional utilities related to either delivered power or the replacement of open positions of longer-term purchased power or fuel agreements. TVA believes its policies and procedures for counterparty performance risk reviews have generally protected TVA against significant exposure related to market and economic conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts, Note 3 — Accounts Receivable, Net, and Note 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, 2022 and the three months ended December 31, 2021.
Although TVA has cryptocurrency industry customers, TVA believes it does not have material risk due to the relative size of these customers and credit mitigation measures that are in place. TVA also has minimal cryptocurrency exposure through its investment trusts, which TVA also believes is not a material risk due to the exposure being indirect and the relative size of these fund of fund commitments.

Suppliers.  TVA assesses potential supplier performance risks, including procurement of fuel, parts, and services. If suppliers are unable to perform under TVA's existing contracts or if TVA is unable to obtain similar services or supplies from other vendors, TVA could experience delays, disruptions, additional costs, or other operational outcomes that may impact generation,
maintenance, and capital programs. If certain fuel or purchased power suppliers fail to perform under the terms of their contract with TVA, TVA might lose the money that it paid to the supplier under the contract and have to purchase replacement fuel or power on the spot market, perhaps at a significantly higher price than TVA was entitled to pay under the contract. In addition, TVA might not be able to acquire replacement fuel or power in a timely manner and thus might be unable to satisfy its own obligations to deliver power. TVA continues evaluating potential supplier performance risks and supplier impact but cannot determine or predict the duration of such risks/impacts or the extent to which such risks/impacts could affect TVA's business, operations, and financial results or cause potential business disruptions.

TVA has experienced an increase in supplier impacts as a result of COVID-19 and the state of global supply chains and the economy, such as project delays, limited availability of supplies, and price increases. Russia's invasion of Ukraine has further intensified the state of global supply chains and inflationary pressures, and TVA will continue to monitor these pressures.

Natural Gas. TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market. TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines. TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions. TVA plans to continue using contracts of various lengths and terms to meet the projected natural gas needs of its natural gas fleet. TVA also maintains on-site, fuel oil backup to operate at the majority of the combustion turbine sites in the event of major supply disruptions. In the event suppliers are unable to perform under existing contracts, TVA can utilize its storage portfolio or other suppliers to help secure replacement natural gas volumes.

    Coal. To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers at December 31, 2022. The contracted supply of coal is sourced from several geographic regions of the U.S. and is delivered via barge and rail. As a result of emerging technologies, environmental regulations, industry trends, and natural gas market volatility over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios. A long-term continued decline in demand for coal could result in more consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios. Current market conditions indicate limited availability of spot market coal due to increased exports, utility demand, and mine capacity and capability.

Although TVA experienced challenges in 2022 related to coal supply as a result of supply limitation and transportation challenges, supply availability and transportation performance gradually improved during the first quarter of 2023. Mild weather prior to late December 2022 required lower than forecasted coal-fired generation, enabling inventory stockpiles to increase. TVA also invested in additional multi-year coal supply contracts to provide stability in coal supply availability. These investments will support fuel resiliency with TVA's overall coal supply. Coal transportation performance has also been improving in 2023 due to the settlement of the rail labor strike and increased availability of railroad workers.

    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 power purchase agreements ("PPAs") as well as through spot market purchases. Because of the long-term nature and 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. Both TVA's Self-Directed Solar project and 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 prices increases.

Derivative Counterparties.  TVA has entered into physical and financial contracts that are classified as derivatives for hedging purposes, and TVA's NDT, ART, and qualified defined benefit plan ("pension plan") have entered into derivative contracts for investment purposes. If a counterparty to one of the physical or financial derivative transactions defaults, TVA might incur costs in connection with entering into a replacement transaction. If a counterparty to the derivative contracts into which the NDT, the ART, or the pension plan have entered for investment purposes defaults, the value of the investment could decline significantly or perhaps become worthless. TVA has concentrations of credit risk from the banking, coal, and gas industries because multiple companies in these industries serve as counterparties to TVA in various derivative transactions. At December 31, 2022, all of TVA's commodity derivatives under the FHP, currency swaps, and interest rate swaps were with counterparties whose Moody's credit ratings were A2 or higher.
    TVA classifies forward natural gas contracts as derivatives. See Derivatives Not Receiving Hedge Accounting Treatment above. At December 31, 2022, the natural gas contracts were with counterparties whose ratings ranged from B1 to A1.
v3.22.4
Fair Value Measurements
 3 Months Ended
Dec. 31, 2022
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, 2022, Investment funds were comprised of $3.9 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, and DCP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $2.7 billion and $1.1 billion, respectively, at December 31, 2022.

TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations. The DCP is designed to provide participants with the ability to defer compensation to future periods. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance.

The NDT, ART, SERP, and DCP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities, 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 $179 million, private real assets of $118 million, and private credit of $80 million at December 31, 2022. The ART had unfunded commitments related to limited partnerships in private equity of $95 million, private real assets of $67 million, and private credit of $42 million at December 31, 2022. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. TVA's private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset values ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.

Commingled funds represent investment funds comprising multiple individual financial instruments. The commingled funds held by the NDT, ART, SERP, and DCP consist of either a single class of securities, such as equity, debt, or foreign currency securities, or multiple classes of securities. All underlying positions in these commingled funds are either exchange traded or measured using observable inputs for similar instruments. The fair value of commingled funds is based on NAV per fund share (the unit of account), derived from the prices of the underlying securities in the funds. These commingled funds can be redeemed at the measurement date NAV and are classified as Commingled funds measured at NAV in the fair value hierarchy.

     Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies — Cost-Based Regulation and Note 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)
(in millions)
 
 Three Months Ended December 31
FundFinancial Statement Presentation20222021
NDTRegulatory assets$136 $119 
ARTRegulatory assets69 30 
SERPOther income3 2 

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.

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 initial asset/liability fair value. TVA adjusts for nonperformance risk, both of TVA (for liabilities) and the counterparty (for assets), by applying credit valuation adjustments ("CVAs"). TVA determines an appropriate CVA for each applicable financial instrument based on the term of the instrument and TVA's or the counterparty's credit rating as obtained from Moody's. For companies that do not have an observable credit rating, TVA uses internal analysis to assign a comparable rating to the counterparty. TVA discounts each financial instrument using the historical default rate (as reported by Moody's for CY 1983 to CY 2021) for companies with a similar credit rating over a time period consistent with the remaining term of the contract. The application of CVAs resulted in a $2 million decrease in the fair value of assets and a $2 million decrease in the fair value of liabilities at December 31, 2022.
Fair Value Measurements

The following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2022, and September 30, 2022. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels.
Fair Value Measurements
At December 31, 2022
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$575 $— $— $575 
Government debt securities(1)
402 46 — 448 
Corporate debt securities(2)
— 302 — 302 
Mortgage and asset-backed securities— 29 — 29 
Institutional mutual funds
260 — — 260 
Forward debt securities contracts— 9 — 9 
Private equity funds measured at net asset value(3)
— — — 537 
Private real asset funds measured at net asset value(3)
— — — 391 
Private credit measured at net asset value(3)
— — — 124 
Commingled funds measured at net asset value(3)
— — — 1,238 
Total investments1,237 386 — 3,913 
Commodity contract derivatives— 80 — 80 
Commodity derivatives under the FHP— 22 — 22 
Total$1,237 $488 $— $4,015 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $169 $— $169 
Interest rate swaps— 857 — 857 
Commodity contract derivatives— 9 — 9 
Commodity derivatives under the FHP— 143 — 143 
Total$— $1,178 $— $1,178 

Notes
(1) Includes government-sponsored entities, including $402 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2022
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$534 $— $— $534 
Government debt securities(1)
358 36 — 394 
Corporate debt securities(2)
— 283 — 283 
Mortgage and asset-backed securities— 52 — 52 
Institutional mutual funds
242 — — 242 
Forward debt securities contracts
— 4 — 4 
Private equity funds measured at net asset value(3)
— — — 487 
Private real asset funds measured at net asset value(3)
— — — 369 
Private credit measured at net asset value(3)
— — — 103 
Commingled funds measured at net asset value(3)
— — — 1,203 
Total investments1,134 375 — 3,671 
Commodity contract derivatives— 152 — 152 
Commodity derivatives under the FHP— 123 — 123 
Total$1,134 $650 $— $3,946 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $240 $— $240 
Interest rate swaps— 905 — 905 
Commodity contract derivatives— 7 — 7 
Commodity derivatives under the FHP— 8 — 8 
Total$— $1,160 $— $1,160 
Notes
(1) Includes government-sponsored entities, including $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4)  TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 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, 2022, and September 30, 2022, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption. The estimated values of TVA's financial instruments not recorded at fair value at December 31, 2022, and September 30, 2022, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
 At December 31, 2022At September 30, 2022
 Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$61 $62 $62 $62 
Loans and other long-term receivables, net (including current portion)Level 2109 100 105 96 
EnergyRight® financing obligations (including current portion)
Level 272 81 72 81 
Unfunded loan commitmentsLevel 2— 1 — — 
Membership interests of VIEs subject to mandatory redemption (including current portion)Level 220 22 20 22 
Long-term outstanding power bonds, net (including current maturities)Level 217,894 17,790 17,856 18,070 
Long-term debt of VIEs, net (including current maturities)Level 21,007 1,009 1,007 989 

The carrying value of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values.

The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable. The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.
v3.22.4
Other Income (Expense), Net
 3 Months Ended
Dec. 31, 2022
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
 20222021
Interest income$7 $3 
External services3 5 
Gains on investments6 4 
Miscellaneous— 2 
Other income, net$16 $14 
v3.22.4
Benefit Plans
 3 Months Ended
Dec. 31, 2022
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, and the SERP. 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, 2022 and 2021, were as follows:
Components of TVA's Benefit Plans(1)
(in millions)
 
For the Three Months Ended December 31
 Pension BenefitsOther Post-Retirement Benefits
 2022202120222021
Service cost$9 $13 $3 $4 
Interest cost142 94 5 4 
Expected return on plan assets(123)(109)— — 
Amortization of prior service credit(22)(23)(4)(4)
Recognized net actuarial loss34 96 — 1 
Total net periodic benefit cost as actuarially determined40 71 4 5 
Amount expensed due to actions of regulator19 6 — — 
Total net periodic benefit cost$59 $77 $4 $5 
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 2023 is $300 million. TVA contributes $25 million per month to TVARS and as of December 31, 2022, had contributed $75 million. The remaining $225 million will be contributed by September 30, 2023. For the three months ended December 31, 2022, TVA also contributed $29 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 2023.
v3.22.4
Contingencies and Legal Proceedings
 3 Months Ended
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]  
Contingencies and Legal Proceedings 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 $138 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $963 million. This retrospective premium is payable at a maximum rate currently set at approximately $20 million per year per nuclear incident per reactor. Currently, 96 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 approximately $13.7 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 $115 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, 2022, $3.7 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, 2022, $3.5 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 and future Clean Air Act ("CAA") requirements (excluding GHG requirements) could lead to costs of $284 million from 2023 to 2027, which include existing controls capital projects and air operations and maintenance projects. TVA also estimates additional expenditures of approximately $835 million from 2023 to 2027 relating to TVA's coal combustion residuals ("CCR") Program, as well as expenditures of approximately $96 million from 2023 to 2027 relating to compliance with Clean Water Act ("CWA") requirements. Future costs could differ from these estimates if new environmental laws or regulations become applicable to TVA or the facilities it operates, or if existing environmental laws or regulations are revised or reinterpreted.  There could also be costs that cannot reasonably be predicted at this time, due to uncertainty of actions, that could increase these estimates, and these estimates do not include expenditures expected to be incurred after 2027.

Compliance with the Environmental Protection Agency's ("EPA's") CCR rule ("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 December 31, 2022 and September 30, 2022, TVA's estimated liability for required cleanup and similar environmental work for those sites for which sufficient information is available to develop a cost estimate was approximately $16 million and $17 million, respectively, on a non-discounted basis, and was included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. Additionally, the potential inclusion of new hazardous substances under CERCLA and RCRA jurisdiction could significantly affect TVA's future liability for remediating historical releases.

    Potential Liability Associated with Workers' Exposure to CCR Materials. In response to the 2008 ash spill at Kingston, TVA hired Jacobs Engineering Group, Inc. ("Jacobs") to oversee aspects of the cleanup. After the cleanup was completed, Jacobs was sued in the U.S. District Court for the Eastern District of Tennessee ("Eastern District") by employees of a contractor involved in the cleanup and family members of some of the employees. The plaintiffs alleged that Jacobs failed to take or provide proper health precautions and misled workers about the health risks associated with exposure to coal fly ash, which is a CCR material. The plaintiffs also alleged that exposure to the fly ash caused significant illnesses, including in some cases death. In 2018, a jury found in favor of the plaintiffs regarding general causation, including that Jacobs failed to adhere to its contract with TVA or the Site Wide Safety and Health Plan; Jacobs failed to provide reasonable care to the plaintiffs; and Jacobs's failures were capable of causing a variety of employee medical conditions. Currently, the Eastern District has stayed all proceedings in the case pending the Tennessee Supreme Court's review of four questions from the Eastern District. An oral argument on these questions was held on June 1, 2022. If the litigation proceeds to a damages phase, the principal question for resolution will be whether Jacobs's breaches were the specific medical cause of the plaintiffs' alleged injuries and damages.

    Other contractor employees and family members also have filed lawsuits against Jacobs that are pending in the Eastern District. These pending lawsuits are stayed and raise similar claims to those being litigated against Jacobs.

    While TVA is 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 21 — Commitments and Contingencies — Legal Proceedings of the Annual Report, except as described below.

Case Involving Rate Changes. As discussed in the Annual Report, on September 7, 2022, the U.S. Court of Appeals for the Fourth Circuit ("Fourth Circuit") affirmed the dismissal of the lawsuit filed against TVA and one of its LPCs, Bristol Virginia Utilities Authority, by a LPC customer, asserting claims for breach of contract and violation of the Administrative Procedure Act. On January 5, 2023, the plaintiff filed a petition with the U.S. Supreme Court to review the Fourth Circuit's decision.

Case Involving Johnsonville Aeroderivative Combustion Turbine Project. On December 22, 2022, the Southern Environmental Law Center filed a lawsuit in the United States District Court for the Middle District of Tennessee on behalf of the Sierra Club, alleging that TVA violated the National Environmental Policy Act ("NEPA") in deciding to build a new aeroderivative combustion turbine project at its Johnsonville facility.

The Sierra Club claims that TVA violated NEPA by failing to adequately analyze the climate consequences of the project, adequately address GHG mitigation in light of EOs to decarbonize the power sector, consider a reasonable range of alternatives to the project, and prepare an environmental impact statement ("EIS").

The Sierra Club requests the federal court to enter a declaratory judgment that TVA's environmental assessment ("EA") violates NEPA and that TVA's decision to issue a finding of no significant impact ("FONSI") was arbitrary, vacate the EA and FONSI, order TVA to prepare an EIS, and prohibit further construction and operation of the combustion turbines until TVA has complied with NEPA. TVA cannot predict the outcome of this litigation.
v3.22.4
Subsequent Event (Notes)
 3 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events
21. Subsequent Events

Valuation Changes in Derivative Transactions

As of January 30, 2023, TVA's interest rate swap derivative liability and related regulatory asset for unrealized losses are estimated to increase approximately $90 million compared to December 31, 2022, due to decreases in long-term market interest rates.

As of January 30, 2023, TVA's commodity derivative liability under the FHP and related regulatory asset for unrealized losses are estimated to increase approximately $175 million compared to December 31, 2022, due to recent decreases in natural gas prices.
v3.22.4
Revenue (Notes)
 3 Months Ended
Dec. 31, 2022
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 the three months ended December 31, 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, pandemic credits created to support LPCs and strengthen the public power response to the COVID-19 pandemic, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.
 
Directly served customersDirectly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.

The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Examples of credits include items such as economic development credits to promote growth in the Tennessee Valley, pandemic credits created to support directly served customers in response to the COVID-19 pandemic, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.

Other Revenue

Other revenue consists primarily of wheeling and network transmission charges, sales of excess steam that is a by-product of power production, delivery point charges for interconnection points between TVA and the customer, REC sales, and certain other ancillary goods or services.
Disaggregated Revenues

During the three months ended December 31, 2022, revenues generated from TVA's electricity sales were $3.0 billion and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for the three months ended December 31, 2022 and 2021, are detailed in the table below:
Operating Revenues By State
(in millions)
Three Months Ended December 31
 20222021
Alabama
$428 $371 
Georgia
76 64 
Kentucky
198 171 
Mississippi
278 241 
North Carolina
25 20 
Tennessee
1,941 1,659 
Virginia
13 11 
Subtotal2,959 2,537 
Off-system sales4 1 
Revenue from sales of electricity2,963 2,538 
Other revenue52 45 
Total operating revenues$3,015 $2,583 

    TVA's operating revenues by customer type for the three months ended December 31, 2022 and 2021, are detailed in the table below:
Operating Revenues by Customer Type
(in millions)
Three Months Ended December 31
 20222021
Revenue from sales of electricity  
Local power companies$2,706 $2,306 
Industries directly served225 205 
Federal agencies and other32 27 
Revenue from sales of electricity2,963 2,538 
Other revenue52 45 
Total operating revenues$3,015 $2,583 

    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 $48 million and $43 million, respectively, for the three months ended December 31, 2022 and 2021. In 2020, TVA provided participating LPCs a flexibility option, named Generation Flexibility, that allows them to locally generate or purchase up to approximately five percent of their average total hourly energy sales over a certain time period in order to meet their individual customers' needs. As of January 30, 2023, 147 LPCs had signed the partnership agreement with TVA, and 81 LPCs had signed a Power Supply Flexibility Agreement.

In 2021, the TVA Board approved a 2.5 percent monthly base rate credit, the Pandemic Recovery Credit, which was effective for 2022. In 2022, the TVA Board approved a 2.5 percent monthly base rate credit, which is an extension of the Pandemic Recovery Credit, and is effective for 2023. These pandemic credits apply to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers. The 2023 credit is expected to approximate $230 million. For the three months ended December 31, 2022 and three months ended December 31, 2021, pandemic credits
totaled $53 million and $50 million, respectively.

    The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three months ended December 31, 2022, and the percentage those revenues comprised of TVA's total operating revenues for the same periods, are summarized in the table below:
TVA Local Power Company Contracts
At or for the Three Months Ended December 31, 2022
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice147 $2,345 77.8 %
 5-year termination notice6 361 12.0 %
Total153 $2,706 89.8 %
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, 2022 and the three months ended December 31, 2021.

Contract Balances

    Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA did not have any material contract assets at December 31, 2022.

    Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers. These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation. See Economic Development Incentives below and Note 10 — Other Long-Term Liabilities — Long-Term Deferred Revenue.
    Economic Development Incentives. Under certain economic development programs, TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley. TVA records those incentives as reductions of revenue. Incentives recorded as a reduction to revenue were $82 million and $89 million for the three months ended December 31, 2022 and the three months ended December 31, 2021, respectively. Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At December 31, 2022, and September 30, 2022, the outstanding unpaid incentives were $188 million and $187 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements.
v3.22.4
Research and Development
 3 Months Ended
Dec. 31, 2022
Research and Development [Abstract]  
Collaborative Arrangement Disclosure
19. Collaborative Arrangement

In December 2022, TVA entered into a multi-party collaborative arrangement. Under the agreement, TVA will contribute up to $88 million for costs incurred through 2026. At the time feasibility is determined, TVA will have the right to use the design and receive other economic benefits.
Payments pursuant to the agreement are recorded as research and development expense in the period incurred. TVA recorded $16 million of expense related to this agreement for the three months ended December 31, 2022.
v3.22.4
Summary of Significant Accounting Policies (Policies)
 3 Months Ended
Dec. 31, 2022
Accounting Policies [Abstract]  
General
General

The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt.  TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates. Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people.

    TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development. TVA performs these management duties in cooperation with other federal and state agencies that have jurisdiction and authority over certain aspects of the river system. In addition, the TVA Board of Directors ("TVA Board") has established two councils — the Regional Resource Stewardship Council and the Regional Energy Resource Council — to advise TVA on its stewardship activities in the Tennessee Valley and its energy resource activities.

The power program has historically been separate and distinct from the stewardship programs.  It is required to be self-supporting from power revenues and proceeds from power financings, such as proceeds from the issuance of bonds, notes, or other evidences of indebtedness (collectively, "Bonds").  Although TVA does not currently receive Congressional appropriations, it is required to make annual payments to the United States Department of the Treasury ("U.S. Treasury") as a return on the government's appropriation investment in TVA's power facilities (the "Power Program Appropriation Investment").  In the 1998 Energy and Water Development Appropriations Act, Congress directed TVA to fund essential stewardship activities related to its management of the Tennessee River system and nonpower or stewardship properties with power revenues in the event that there were insufficient appropriations or other available funds to pay for such activities in any fiscal year.  Congress has not provided any appropriations to TVA to fund such activities since 1999.  Consequently, during 2000, TVA began paying for essential stewardship activities primarily with power revenues, with the remainder funded with user fees and other forms of
revenues derived in connection with those activities.  The activities related to stewardship properties do not meet the criteria of an operating segment under accounting principles generally accepted in the United States of America ("GAAP").  Accordingly, these assets and properties are included as part of the power program, TVA's only operating segment.Power rates are established by the TVA Board as authorized by the Tennessee Valley Authority Act of 1933, as amended, 16 U.S.C. §§ 831-831ee ("TVA Act").  The TVA Act requires TVA to charge rates for power that will produce gross revenues sufficient to provide funds for operation, maintenance, and administration of its power system; payments to states and counties in lieu of taxes ("tax equivalents"); debt service on outstanding indebtedness; payments to the U.S. Treasury in repayment of and as a return on the Power Program Appropriation Investment; and such additional margin as the TVA Board may consider desirable for investment in power system assets, retirement of outstanding Bonds in advance of maturity, additional reduction of the Power Program Appropriation Investment, and other purposes connected with TVA's power business. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment with the 2014 payment; therefore, this repayment obligation is no longer a component of rate setting.  In setting TVA's rates, the TVA Board is charged by the TVA Act to have due regard for the primary objectives of the TVA Act, including the objective that power shall be sold at rates as low as are feasible.  Rates set by the TVA Board are not subject to review or approval by any state or other federal regulatory body.
Fiscal Year
Fiscal Year

TVA's fiscal year ends September 30.  Years (2023, 2022, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.
Cost-Based Regulation
Cost-Based Regulation

Since the TVA Board is authorized by the TVA Act to set rates for power sold to its customers, TVA is self-regulated. Additionally, TVA's regulated rates are designed to recover its costs.  Based on current projections, TVA believes that rates, set at levels that will recover TVA's costs, can be charged and collected.  As a result of these factors, TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  TVA assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, potential legislation, and changes in technology.  Based on these assessments, TVA believes the existing regulatory assets are probable of recovery.  This determination reflects the current regulatory and political environment and is subject to change in the future.  If future recovery of regulatory assets ceases to be probable, or TVA is no longer considered to be a regulated entity, then costs would be required to be written off.  All regulatory asset write-offs would be required to be recognized in earnings in the period in which future recovery ceases to be probable.
Basis of Presentation
Basis of Presentation

TVA prepares its consolidated interim financial statements in conformity with 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, 2022, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2022 (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
Use of Estimates Use of EstimatesThe preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.
Cash 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, 2022At September 30, 2022
Cash and cash equivalents$500 $500 
Restricted cash and cash equivalents included in Other long-term assets20 20 
Total cash, cash equivalents, and restricted cash$520 $520 
Allowance for Uncollectible Accounts
Allowance for Uncollectible Accounts

    TVA recognizes an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amounts. The appropriateness of the allowance is evaluated at the end of each reporting period.

To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date. TVA's corporate credit department also performs an assessment of the financial condition of customers and the credit quality of the receivables. In addition, TVA reviews other reasonable and supportable forecasts to determine if the allowance for uncollectible amounts should be further adjusted in accordance with the accounting guidance for Current Expected Credit Losses.

To determine the allowance for loans receivables, TVA aggregates loans into the appropriate pools based on the existence of similar risk characteristics such as collateral types and internal assessed credit risks. In situations where a loan exhibits unique risk characteristics and is no longer expected to experience similar risks to the rest of its pool, the loan will be evaluated separately. TVA derives an annual loss rate based on historical loss and then adjusts the rate to reflect TVA's consideration of available information on current conditions and reasonable and supportable future forecasts. This information may include economic and business conditions, default trends, and other internal and external factors. For periods beyond the reasonable and supportable forecast period, TVA uses the current calculated long-term average historical loss rate for the remaining life of the loan portfolio.

    The allowance for uncollectible accounts was less than $1 million at both December 31, 2022, and September 30, 2022, for trade accounts receivable. Additionally, loans receivable of $109 million and $105 million at December 31, 2022, and September 30, 2022, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively. Loans receivables are reported net of allowances for uncollectible accounts of $3 million at both December 31, 2022 and September 30, 2022.
Revenue
Revenues

TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month.  Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements.  Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income, net.
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 $466 million and $453 million for the three months ended December 31, 2022 and 2021, respectively. See Note 6 — Plant Closures for a discussion of the impact of plant closures.
Inventory, Policy
Inventories

Certain Fuel, Materials, and Supplies.  Materials and supplies inventories are valued using an average unit cost method. A new average cost is computed after each inventory purchase transaction, and inventory issuances are priced at the latest moving weighted average unit cost. Coal, fuel oil, and natural gas inventories are valued using an average cost method. A new weighted average cost is computed monthly, and monthly issues are priced accordingly.

Renewable Energy Certificates. TVA accounts for Renewable Energy Certificates ("RECs") using the specific identification cost method. RECs that are acquired through power purchases are recorded as inventory and charged to purchased power expense when the RECs are subsequently used or sold. TVA assigns a value to the RECs at the inception of the power purchase arrangement using a relative standalone selling price approach. RECs created through TVA-owned asset generation are recorded at zero cost.

Emission Allowances.  TVA accounts for emission allowances using the specific identification cost method. Allowances that are acquired through third party purchases are recorded as inventory at cost and charged to operating expense based on tons emitted during the respective compliance periods.  
Allowance for Inventory Obsolescence.  TVA reviews materials and supplies inventories by category and usage on a periodic basis.  Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data.  TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence.
v3.22.4
Accounting Changes and Error Corrections (Policies)
 3 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Impact of New Accounting Standards and Interpretations The following accounting standards have been issued but, at December 31, 2022, were not effective and had not been adopted by TVA:
Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Description
This guidance requires an entity (acquirer) to recognize and measure contract assets and contract 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its financial condition, results of operations, or cash flows.
v3.22.4
Variable Interest Entities (Policies)
 3 Months Ended
Dec. 31, 2022
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.
v3.22.4
Summary of Significant Accounting Policies Cash, Cash Equivalents, and Restricted Cash (Tables)
 3 Months Ended
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]  
Schedule of Cash and Cash Equivalents
Cash, Cash Equivalents, and Restricted Cash
(in millions)
 At December 31, 2022At September 30, 2022
Cash and cash equivalents$500 $500 
Restricted cash and cash equivalents included in Other long-term assets20 20 
Total cash, cash equivalents, and restricted cash$520 $520 
v3.22.4
Impact of New Accounting Standards and Interpretations Impact of New Accounting Standards and Interpretations (Tables)
 3 Months Ended
Dec. 31, 2022
Accounting Changes and Error Corrections [Abstract]  
Schedule of New Accounting Pronouncements and Changes in Accounting Principles The following accounting standards have been issued but, at December 31, 2022, were not effective and had not been adopted by TVA:
Accounting for Contract Assets and Contract Liabilities from Contracts with Customers
Description
This guidance requires an entity (acquirer) to recognize and measure contract assets and contract 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its 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
This new standard is effective for TVA’s interim and annual reporting periods beginning October 1, 2023. While early adoption is permitted, TVA does not currently plan to adopt this standard early.
Effect on the Financial Statements or Other Significant MattersTVA does not expect the adoption of this standard to have a material impact on its financial condition, results of operations, or cash flows.
v3.22.4
Accounts Receivable, Net (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Power receivables$1,633 $1,899 
Other receivables116 108 
Accounts receivable, net(1)
$1,749 $2,007 
Note
(1) Allowance for uncollectible accounts was less than $1 million at both December 31, 2022, and September 30, 2022, and therefore is not represented in the table above.
v3.22.4
Inventories, Net (Tables)
 3 Months Ended
Dec. 31, 2022
Inventory, Net [Abstract]  
Inventories, Net
The table below summarizes the types and amounts of TVA's inventories:
Inventories, Net
(in millions)
 At December 31, 2022At September 30, 2022
Materials and supplies inventory$824 $808 
Fuel inventory426 303 
Renewable energy certificates/emissions allowance inventory, net19 18 
Allowance for inventory obsolescence(62)(57)
Inventories, net$1,207 $1,072 
v3.22.4
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Commodity contract derivative assets$59 $172 
Collateral receivable50 — 
Other112 85 
Other current assets$221 $257 
v3.22.4
Other Long-Term Assets (Tables)
 3 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Long-Term Assets
The table below summarizes the types and amounts of TVA's other long-term assets:
Other Long-Term Assets
(in millions)
At December 31, 2022At September 30, 2022
Loans and other long-term receivables, net$106 $99 
EnergyRight® receivables, net
48 49 
Prepaid long-term service agreements63 74 
Commodity contract derivative assets43 102 
Other93 70 
Total other long-term assets$353 $394 
v3.22.4
Regulatory Assets and Liabilities (Tables)
 3 Months Ended
Dec. 31, 2022
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Assets and Liabilities Components of regulatory assets and regulatory liabilities are summarized in the table below.
Regulatory Assets and Liabilities
(in millions)
 At December 31, 2022At September 30, 2022
Current regulatory assets  
Unrealized losses on interest rate derivatives$41 $47 
Unrealized losses on commodity derivatives137 14 
Fuel cost adjustment receivable142 77 
Total current regulatory assets320 138 
Non-current regulatory assets  
Retirement benefit plans deferred costs1,809 1,839 
Non-nuclear decommissioning costs2,769 2,856 
Unrealized losses on interest rate derivatives474 479 
Nuclear decommissioning costs705 821 
Unrealized losses on commodity derivatives15 1 
Other non-current regulatory assets137 138 
Total non-current regulatory assets5,909 6,134 
Total regulatory assets$6,229 $6,272 
Current regulatory liabilities  
Fuel cost adjustment tax equivalents$218 $218 
Unrealized gains on commodity derivatives59 173 
Total current regulatory liabilities277 391 
Non-current regulatory liabilities  
Retirement benefit plans deferred credits66 70 
Unrealized gains on commodity derivatives43 102 
Total non-current regulatory liabilities109 172 
Total regulatory liabilities$386 $563 
v3.22.4
Variable Interest Entities (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022, and September 30, 2022, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
(in millions)
 At December 31, 2022At September 30, 2022
Current liabilities 
Accrued interest$22 $10 
Accounts payable and accrued liabilities2 2 
Current maturities of long-term debt of variable interest entities39 39 
Total current liabilities
63 51 
Other liabilities
Other long-term liabilities18 18 
Long-term debt, net
Long-term debt of variable interest entities, net968 968 
Total liabilities$1,049 $1,037 
v3.22.4
Other Long-Term Liabilities (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022At September 30, 2022
Interest rate swap liabilities$816 $851 
Operating lease liabilities85 93 
Currency swap liabilities159 228 
EnergyRight® financing obligation
57 58 
Long-term deferred compensation28 39 
Advances for construction42 53 
Long-term deferred revenue 40 39 
Other147 124 
Total other long-term liabilities$1,374 $1,485 
v3.22.4
Asset Retirement Obligations (Tables)
 3 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Activity
Asset Retirement Obligation Activity
 NuclearNon-NuclearTotal
Balance at September 30, 2022
$3,643 $3,519 $7,162 (1)
Settlements— (68)(68)(2)
Revisions in estimate 3 (1)2 
Accretion (recorded as regulatory asset)41 18 59 
Balance at December 31, 2022$3,687 $3,468 $7,155 (1)
Notes
(1) Includes $287 million and $275 million at December 31, 2022, and September 30, 2022, respectively, in Current liabilities.
(2) Settlements include the change in asset retirement obligation project accruals included in Accounts payable and accrued liabilities of ($57) million.
v3.22.4
Debt and Other Obligations (Tables)
 3 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Debt Outstanding
Total debt outstanding at December 31, 2022, and September 30, 2022, consisted of the following:
Debt Outstanding 
(in millions)
 At December 31, 2022At September 30, 2022
Short-term debt  
Short-term debt, net of discounts$1,618 $1,172 
Current maturities of power bonds issued at par29 29 
Current maturities of long-term debt of VIEs issued at par39 39 
Total current debt outstanding, net1,686 1,240 
Long-term debt  
Long-term power bonds(1)
17,987 17,950 
Long-term debt of VIEs, net968 968 
Unamortized discounts, premiums, issue costs, and other(122)(124)
Total long-term debt, net18,833 18,794 
Total debt outstanding$20,519 $20,034 
Note
(1) Includes net exchange gain from currency transactions of $114 million and $150 million at December 31, 2022, and September 30, 2022, respectively.
Debt Securities Activity
Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2022, to December 31, 2022:
Debt Securities Activity
 Date
Amount
(in millions)
Redemptions/Maturities(1)
 
 2009 Series BDecember 2022$1 
Total redemptions/maturities of debt$1 
Note
(1) All redemptions were at 100 percent of par.
v3.22.4
Risk Management Activities and Derivative Transactions (Tables)
 3 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments That Receive Hedge Accounting Treatment The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
(in millions)
Three Months Ended December 31
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20222021
Currency swapsTo 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$71 $5 

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 Relationship20222021
Currency swaps$34 $1 
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 $5 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
(in millions)
Three Months Ended December 31
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20222021
Interest rate swapsTo 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		$(15)$(29)
Commodity derivatives
under the FHP(2)
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)
(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, 2022 and for the three months ended December 31, 2021.
(2) Of the amount recognized for the three months ended December 31, 2022, $15 million and $4 million were reported in Fuel expense and Purchased power expense, respectively.
Fair Value of TVA Derivatives
Fair Values of TVA Derivatives
(in millions)
 At December 31, 2022At September 30, 2022
Derivatives That Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£250 million Sterling
$(88)
Accounts payable and accrued liabilities $(6); Other long-term liabilities $(82)
$(130)
Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123)
£150 million Sterling
(81)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(77)
(110)
Accounts payable and
accrued liabilities $(5); Other long-term liabilities $(105)
Derivatives That Do Not Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps    
$1.0 billion notional$(639)
Accounts payable and
accrued liabilities $(24); Accrued interest $(9);
Other long-term liabilities
$(606)
$(672)
Accounts payable and
accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630)
$476 million notional(218)
Accounts payable and
accrued liabilities $(8);
Other long-term liabilities
$(210)
(233)
Accounts payable and
accrued liabilities $(3); Accrued interest $(9);
Other long-term liabilities
$(221)
Commodity contract derivatives71 
Other current assets $59; Other long-term assets $21; Accounts payable and accrued liabilities $(8); Other long-term liabilities $(1)
145 
Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1)
Commodity derivatives under the FHP(121)
Other long-term assets $22; Accounts payable and accrued liabilities $(129); Other long-term liabilities $(14)
115 
Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8)
Commodity Contract Derivatives
Commodity Contract Derivatives 
 At December 31, 2022At September 30, 2022
 
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives48356 million mmBtu$71 44296 million mmBtu$145 
Offsetting Assets and Liabilities The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:
Derivative Assets and Liabilities(1)
(in millions)
 At December 31, 2022At September 30, 2022
Assets
Commodity contract derivatives$80 $152 
Commodity derivatives under the FHP(2)
22 123 
Total derivatives subject to master netting or similar arrangement$102 $275 
Liabilities
Currency swaps$169 $240 
Interest rate swaps(3)
857 905 
Commodity contract derivatives 9 7 
Commodity derivatives under the FHP(2)
143 8 
Total derivatives subject to master netting or similar arrangement$1,178 $1,160 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's
Consolidated Balance Sheets at either December 31, 2022, or September 30, 2022.
(2) At December 31, 2022, the gross derivative asset and gross derivative liability was $61 million and $182 million, respectively, with offsetting amounts for each totaling $39 million. TVA received $3 million of collateral from counterparties as of December 31, 2022, which is recorded separately from the fair values of the derivative assets and liabilities and reported in Accounts payable and accrued liabilities.
(3) Letters of credit of approximately $586 million and $704 million were posted as collateral at December 31, 2022, and September 30, 2022, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.
v3.22.4
Fair Value Measurements (Tables)
 3 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Valuation Techniques
The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:
Level 1—
 
Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2
 		—
 
Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3—
 
Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.
Unrealized Investment Gains (Losses) TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)
(in millions)
 
 Three Months Ended December 31
FundFinancial Statement Presentation20222021
NDTRegulatory assets$136 $119 
ARTRegulatory assets69 30 
SERPOther income3 2 
Fair Value Measurements
Fair Value Measurements
At December 31, 2022
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$575 $— $— $575 
Government debt securities(1)
402 46 — 448 
Corporate debt securities(2)
— 302 — 302 
Mortgage and asset-backed securities— 29 — 29 
Institutional mutual funds
260 — — 260 
Forward debt securities contracts— 9 — 9 
Private equity funds measured at net asset value(3)
— — — 537 
Private real asset funds measured at net asset value(3)
— — — 391 
Private credit measured at net asset value(3)
— — — 124 
Commingled funds measured at net asset value(3)
— — — 1,238 
Total investments1,237 386 — 3,913 
Commodity contract derivatives— 80 — 80 
Commodity derivatives under the FHP— 22 — 22 
Total$1,237 $488 $— $4,015 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $169 $— $169 
Interest rate swaps— 857 — 857 
Commodity contract derivatives— 9 — 9 
Commodity derivatives under the FHP— 143 — 143 
Total$— $1,178 $— $1,178 

Notes
(1) Includes government-sponsored entities, including $402 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2022
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$534 $— $— $534 
Government debt securities(1)
358 36 — 394 
Corporate debt securities(2)
— 283 — 283 
Mortgage and asset-backed securities— 52 — 52 
Institutional mutual funds
242 — — 242 
Forward debt securities contracts
— 4 — 4 
Private equity funds measured at net asset value(3)
— — — 487 
Private real asset funds measured at net asset value(3)
— — — 369 
Private credit measured at net asset value(3)
— — — 103 
Commingled funds measured at net asset value(3)
— — — 1,203 
Total investments1,134 375 — 3,671 
Commodity contract derivatives— 152 — 152 
Commodity derivatives under the FHP— 123 — 123 
Total$1,134 $650 $— $3,946 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $240 $— $240 
Interest rate swaps— 905 — 905 
Commodity contract derivatives— 7 — 7 
Commodity derivatives under the FHP— 8 — 8 
Total$— $1,160 $— $1,160 
Notes
(1) Includes government-sponsored entities, including $358 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4)  TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 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, 2022, and September 30, 2022, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
 At December 31, 2022At September 30, 2022
 Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$61 $62 $62 $62 
Loans and other long-term receivables, net (including current portion)Level 2109 100 105 96 
EnergyRight® financing obligations (including current portion)
Level 272 81 72 81 
Unfunded loan commitmentsLevel 2— 1 — — 
Membership interests of VIEs subject to mandatory redemption (including current portion)Level 220 22 20 22 
Long-term outstanding power bonds, net (including current maturities)Level 217,894 17,790 17,856 18,070 
Long-term debt of VIEs, net (including current maturities)Level 21,007 1,009 1,007 989 
v3.22.4
Other Income (Expense), Net (Tables)
 3 Months Ended
Dec. 31, 2022
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
 20222021
Interest income$7 $3 
External services3 5 
Gains on investments6 4 
Miscellaneous— 2 
Other income, net$16 $14 
v3.22.4
Benefit Plans (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022 and 2021, were as follows:
Components of TVA's Benefit Plans(1)
(in millions)
 
For the Three Months Ended December 31
 Pension BenefitsOther Post-Retirement Benefits
 2022202120222021
Service cost$9 $13 $3 $4 
Interest cost142 94 5 4 
Expected return on plan assets(123)(109)— — 
Amortization of prior service credit(22)(23)(4)(4)
Recognized net actuarial loss34 96 — 1 
Total net periodic benefit cost as actuarially determined40 71 4 5 
Amount expensed due to actions of regulator19 6 — — 
Total net periodic benefit cost$59 $77 $4 $5 
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.
v3.22.4
Revenue (Tables)
 3 Months Ended
Dec. 31, 2022
Revenue from Contract with Customer [Abstract]  
State [Table Text Block] TVA's operating revenues by state for the three months ended December 31, 2022 and 2021, are detailed in the table below:
Operating Revenues By State
(in millions)
Three Months Ended December 31
 20222021
Alabama
$428 $371 
Georgia
76 64 
Kentucky
198 171 
Mississippi
278 241 
North Carolina
25 20 
Tennessee
1,941 1,659 
Virginia
13 11 
Subtotal2,959 2,537 
Off-system sales4 1 
Revenue from sales of electricity2,963 2,538 
Other revenue52 45 
Total operating revenues$3,015 $2,583 
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, 2022 and 2021, are detailed in the table below:
Operating Revenues by Customer Type
(in millions)
Three Months Ended December 31
 20222021
Revenue from sales of electricity  
Local power companies$2,706 $2,306 
Industries directly served225 205 
Federal agencies and other32 27 
Revenue from sales of electricity2,963 2,538 
Other revenue52 45 
Total operating revenues$3,015 $2,583 
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, 2022, and the percentage those revenues comprised of TVA's total operating revenues for the same periods, are summarized in the table below:
TVA Local Power Company Contracts
At or for the Three Months Ended December 31, 2022
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice147 $2,345 77.8 %
 5-year termination notice6 361 12.0 %
Total153 $2,706 89.8 %
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.
v3.22.4
Revenue Local Power Company Contracts (Tables)
 3 Months Ended
Dec. 31, 2022
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, 2022, and the percentage those revenues comprised of TVA's total operating revenues for the same periods, are summarized in the table below:
TVA Local Power Company Contracts
At or for the Three Months Ended December 31, 2022
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice147 $2,345 77.8 %
 5-year termination notice6 361 12.0 %
Total153 $2,706 89.8 %
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.
v3.22.4
Summary of Significant Accounting Policies General and Basis of Presentation (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
People
Dec. 31, 2021
USD ($)
Sep. 30, 2022
USD ($)
Accounting Policies [Abstract]      
Population of TVA's service area | People 10    
Appropriation-investment power program     $ 1,000
Depreciation expense $ 466 $ 453  
v3.22.4
Accounting Policies Cash and Cash Equivalents (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Cash and Cash Equivalents [Line Items]        
Cash and Cash Equivalents, at Carrying Value $ 500 $ 500    
Restricted Cash and Cash Equivalents, Noncurrent 20 20    
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents $ 520 $ 520 $ 526 $ 518
v3.22.4
Summary of Significant Accounting Policies Allowance for Uncollectible Accounts (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Portion at Other than Fair Value Measurement [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 109 $ 105
Allowance for uncollectible accounts 1 1
Financing Receivable, after Allowance for Credit Loss 100 96
Loans and Leases Receivable, Allowance $ 3 $ 3
v3.22.4
Summary of Significant Accounting Policies Depreciation (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Line Items]    
Depreciation expense $ 466 $ 453
v3.22.4
Accounts Receivable, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Accounts Receivable, Net    
Accounts Receivable, before Allowance for Credit Loss, Current $ 1,633 $ 1,899
Other receivables 116 108
Allowance for uncollectible accounts 1 1
Accounts receivable, net $ 1,749 $ 2,007
v3.22.4
Inventories, Net (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Inventories, Net    
Materials and supplies inventory $ 824 $ 808
Fuel inventory 426 303
Renewable energy certificates/emission allowance inventory, net 19 18
Allowance for inventory obsolescence (62) (57)
Inventories, net $ 1,207 $ 1,072
v3.22.4
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Other Assets, Miscellaneous, Current $ 112 $ 85
Other current assets 221 257
Collateral Paid $ 50 $ 0
v3.22.4
Plant Closures (Details) - USD ($)
 3 Months Ended 24 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Mar. 31, 2021
Property, Plant and Equipment [Line Items]      
Property, Plant and Equipment, Disposals $ 4,000,000 $ 6,000,000  
Accelerated depreciation 36,000,000 35,000,000 $ 518,000,000
Depreciation expense $ 466,000,000 $ 453,000,000  
v3.22.4
Other Long-Term Assets (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Other Long-Term Assets    
EnergyRight® receivables, net $ 62 $ 62
Prepaid Expense, Noncurrent 63 74
Total other long-term assets 353 394
Prepaid Expense, Current 17 12
Loans and Leases Receivable, Allowance 3 3
Financing Receivable, after Allowance for Credit Loss, Current 3 6
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 13
Other long-term assets    
Other Long-Term Assets    
Loans and other long-term receivables, net 106 99
EnergyRight® receivables, net 48 49
Other 93 70
Other long-term assets    
Other Long-Term Assets    
Commodity Contract Asset, Noncurrent $ 43 $ 102
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  
v3.22.4
Regulatory Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Regulatory Assets and Liabilities    
Current regulatory assets $ 320 $ 138
Non-current regulatory assets 5,909 6,134
Regulatory assets 6,229 6,272
Current regulatory liabilities 277 391
Regulatory Liability, Noncurrent 109 172
Regulatory Liabilities 386 563
Fuel cost adjustment tax equivalents    
Regulatory Assets and Liabilities    
Current regulatory liabilities 218 218
Unrealized gains/losses on commodity derivatives    
Regulatory Assets and Liabilities    
Current regulatory liabilities 59 173
Regulatory Liability, Noncurrent 43 102
Unrealized losses on interest rate derivatives [Member]    
Regulatory Assets and Liabilities    
Current regulatory assets 41 47
Non-current regulatory assets 474 479
Unrealized gains/losses on commodity derivatives    
Regulatory Assets and Liabilities    
Current regulatory assets 137 14
Non-current regulatory assets 15 1
Fuel cost adjustment receivable/liability    
Regulatory Assets and Liabilities    
Current regulatory assets 142 77
Pension Costs [Member]    
Regulatory Assets and Liabilities    
Non-current regulatory assets 1,809 1,839
Nuclear desommissioning costs [Member]    
Regulatory Assets and Liabilities    
Non-current regulatory assets 705 821
Non-nuclear decommissioning [Member]    
Regulatory Assets and Liabilities    
Non-current regulatory assets 2,769 2,856
Other non-current regulatory assets [Member]    
Regulatory Assets and Liabilities    
Non-current regulatory assets $ 137 $ 138
v3.22.4
Variable Interest Entities Variable Interest Entities (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2022
Sep. 30, 2013
Sep. 30, 2012
Variable Interest Entities          
Other long-term liabilities $ 1,374   $ 1,485    
Accrued interest 22   10    
VIE Financing          
Face amount $ 40     $ 360  
Financial instruments subject to mandatory redemption, interest rate, stated percentage 7.00%        
Liabilities          
Current maturities of long-term debt of variable interest entities $ 39   39    
Long-term debt of variable interest entities, net 968   968    
Liabilities, Current 4,867   4,645    
Variable Interest Entity, Primary Beneficiary [Member]          
Variable Interest Entities          
Other long-term liabilities 18   18    
Liabilities 1,049   1,037   $ 1,000
Liabilities          
Liabilities, Current 63   51    
Interest Expense 12 $ 13      
Accounts Payable and Accrued Liabilities $ 2   $ 2    
JSCCG          
VIE Financing          
Face amount         900
Holdco          
VIE Financing          
Face amount         $ 100
SCCG          
VIE Financing          
Debt and Lease Obligation       $ 400  
v3.22.4
Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Other Long-Term Liabilities    
Pipeline financing obligation $ 28 $ 39
Deferred Revenue, Noncurrent 40 39
Interest Rate Derivative Liabilities, at Fair Value 857 905
Operating Lease, Liability, Noncurrent 85 93
Currency swap liabilities [1] 169 240
EnergyRight® financing obligation (81) (81)
Other long-term liabilities 1,374 1,485
Regulatory Liability, Noncurrent 109 172
Deferred Compensation Liability, Current 29 53
Deferred Revenue, Current 19 16
Operating lease liability [Member]    
Other Long-Term Liabilities    
Accounts Payable and Accrued Liabilities 60 59
Accounts payable and accrued liabilities    
Other Long-Term Liabilities    
Interest Rate Derivative Liabilities, at Fair Value 41 54
EnergyRight® financing obligation (15) (14)
Customer Advances for Construction 52 33
Other long-term liabilities    
Other Long-Term Liabilities    
Interest Rate Derivative Liabilities, at Fair Value 816 851
Currency swap liabilities 159 228
EnergyRight® financing obligation (57) (58)
Other 147 124
Customer Advances for Construction 42 53
Other Current Liabilities    
Other Long-Term Liabilities    
Currency swap liabilities $ 10 $ 12
[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.
v3.22.4
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Sep. 30, 2022
Asset Retirement Obligations    
Asset Retirement Obligation, Period Increase (Decrease) $ (7)  
Amortization and Depreciation of Decontaminating and Decommissioning Assets 47  
Asset Retirement Obligation, Beginning Balance 7,162  
Settlements (68)  
Asset Retirement Obligation, Revision of Estimate 2  
Accretion (recorded as regulatory asset) 59  
Asset Retirement Obligation, Ending Balance 7,155  
Current portion of ARO (287) $ (275)
Nuclear    
Asset Retirement Obligations    
Asset Retirement Obligation, Beginning Balance 3,643  
Settlements 0  
Asset Retirement Obligation, Revision of Estimate 3  
Accretion (recorded as regulatory asset) 41  
Asset Retirement Obligation, Ending Balance 3,687  
Non-nuclear    
Asset Retirement Obligations    
Asset Retirement Obligation, Beginning Balance 3,519  
Settlements (68)  
Asset Retirement Obligation, Revision of Estimate (1)  
Accretion (recorded as regulatory asset) 18  
Asset Retirement Obligation, Ending Balance 3,468  
Accounts payable and accrued liabilities    
Asset Retirement Obligations    
Settlements $ (57)  
v3.22.4
Debt and Other Obligations Debt Outstanding (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Short-term debt    
Short-term debt, net $ 1,618 $ 1,172
Current maturities of power bonds 29 29
Current maturities of long-term debt of variable interest entities 39 39
Total current debt outstanding, net 1,686 1,240
Long-term debt    
Long-term power bonds 17,987 17,950
Unamortized discounts, premiums, issues costs, and other 122 124
Total long-term debt, net 18,833 18,794
Total outstanding debt 20,519 20,034
Long-term debt of variable interest entities, net 968 968
Net exchange gain from currency transaction, noncurrent $ 114 $ 150
v3.22.4
Debt and Other Obligations Debt Securities Activity (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2022
Debt Instrument      
Total long-term debt, net $ 18,833   $ 18,794
Redemptions and repurchases of power bonds 1 $ 1  
Total redemptions/maturities of debt [1] (1)    
2009 Series B [Member]      
Debt Instrument      
Redemptions and repurchases of power bonds $ 1    
[1] (1) All redemptions were at 100 percent of par.
v3.22.4
Debt and Other Obligations Credit Facility Agreements (Details)
 3 Months Ended
Dec. 31, 2022
USD ($)
Credit_facilities
Sep. 30, 2022
USD ($)
Line of Credit Facility [Line Items]    
Summary of Long-Term Credit Facilities
The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:
Summary of Long-Term Credit Facilities
At December 31, 2022
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
 February 2024$150 $38 $— $112 
February 2025500 302 — 198 
September 20261,000 100 — 900 
March 20271,000 146 — 854 
Total$2,650 $586 $— $2,064 
  
Borrowings under U.S. Treasury credit facility $ 0  
February 2022 Credit Facility 1,000,000,000  
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 854,000,000  
Long-term Line of Credit, Borrowings 3 0  
Remaining Availability, June 2020 Credit Facility 198,000,000  
Remaining Availability, September 2020 Credit Facility 900,000,000  
Total Remaining Availability for Credit Facilities 2,064,000,000  
Letter of Credit    
Line of Credit Facility [Line Items]    
Letters of Credit Outstanding, Amount 1 302,000,000  
Letter of Credit Outstanding, December 2019 Credit Facility 38,000,000  
Letter of Credit Outstanding, February 2022 Credit Facility 146,000,000  
Letter of Credit Outstanding, September 2020 Credit Facility 100,000,000  
Amount of letters of credit outstanding for credit facilities $ 586,000,000 $ 704,000,000
v3.22.4
Debt and Other Obligations Lease/Leaseback Obligations (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
Sale Leaseback Transaction [Line Items]        
CT and QTE outstanding leaseback obligation $ 0      
Leasing transaction, number of units       16
Leasing transaction, number of units       16
CT and QTE outstanding leaseback obligation 0      
Lagoon Creek        
Sale Leaseback Transaction [Line Items]        
Amortization of reacquired rights 1      
Lagoon Creek | Forecast        
Sale Leaseback Transaction [Line Items]        
Amortization of reacquired rights   $ 3 $ 2  
Kemper/Lagoon Creek leasehold interests        
Sale Leaseback Transaction [Line Items]        
leasehold interest 155      
leasehold interest 155      
Lagoon Creek        
Sale Leaseback Transaction [Line Items]        
leasehold interest 78      
leasehold interest $ 78      
Kemper/Lagoon Creek leasehold interests        
Sale Leaseback Transaction [Line Items]        
Leasing transaction, number of units       8
Leasing transaction, number of units       8
v3.22.4
Risk Management Activities and Derivative Transactions Derivative Instruments That Receive Hedge Accounting Treatment (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Summary of Derivative Instruments That Receive Hedge Accounting Treatment    
Reclassification to earnings from cash flow hedges in the next 12 months $ (5)  
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax 34 [1] $ 1
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax $ 71 $ 5
[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 $5 million of gains from AOCI to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.
v3.22.4
Risk Management Activities and Derivative Transactions Derivative Instruments That Do Not Receive Hedge Accounting Treatment (Details)
 3 Months Ended
Dec. 31, 2022
USD ($)
Years
Dec. 31, 2021
USD ($)
Sep. 30, 2022
USD ($)
Derivative      
Change in Unrealized gains (losses) on Interest Rate Derivatives $ (14,000,000) $ 11,000,000  
Interest Rate Swap      
Derivative      
Gain (loss) recognized in income on derivatives [1] (15,000,000) (29,000,000)  
Amount recognized for unrealized gains (losses) 0    
Fair value (218,000,000)   $ (233,000,000)
Commodity Contract Derivatives      
Derivative      
Fair value $ 71,000,000   $ 145,000,000
Natural Gas [Member]      
Derivative      
Number of contracts 48   44
Derivative, Nonmonetary Notional Amount 356,000,000   296,000,000
Fair value $ 71,000,000   $ 145,000,000
Commodity Contract under FHP      
Derivative      
Gain (loss) recognized in income on derivatives $ (19,000,000) $ 0  
Number of contracts 253   225
Derivative, Nonmonetary Notional Amount 300   256
Fair value $ (121,000,000)   $ 115,000,000
Number Commodity Contract Term Years | Years 5    
Commodity Contract not under FHP      
Derivative      
Number Commodity Contract Term Years | Years 3    
[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, 2022 and for the three months ended December 31, 2021.(2) Of the amount recognized for the three months ended December 31, 2022, $15 million and $4 million were reported in Fuel expense and Purchased power expense, respectively.
v3.22.4
Risk Management Activities and Derivative Transactions Fair Values of TVA Derivatives (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Derivatives, Fair Value    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
Gross amounts of recognized liabilities 1,178 1,160
250 million Sterling currency swap    
Derivatives, Fair Value    
Fair value (88) (130)
250 million Sterling currency swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (82) (123)
250 million Sterling currency swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (6) (7)
150 million Sterling currency swap    
Derivatives, Fair Value    
Fair value (81) (110)
150 million Sterling currency swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (77) (105)
150 million Sterling currency swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (4) (5)
$1.0 billion notional interest rate swap    
Derivatives, Fair Value    
Fair value (639) (672)
$1.0 billion notional interest rate swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (606) (630)
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (24) (9)
$1.0 billion notional interest rate swap | Interest payable, current    
Derivatives, Fair Value    
Fair value (9) (33)
$476 million notional interest rate swap    
Derivatives, Fair Value    
Fair value (218) (233)
$476 million notional interest rate swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (210) (221)
$476 million notional interest rate swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (8) (3)
$476 million notional interest rate swap | Interest payable, current    
Derivatives, Fair Value    
Fair value   (9)
Commodity contract derivatives    
Derivatives, Fair Value    
Fair value 71 145
Commodity contract derivatives | Other long-term assets    
Derivatives, Fair Value    
Fair value 21 34
Commodity contract derivatives | Other current assets    
Derivatives, Fair Value    
Fair value 59 172
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 (8) (6)
Commodity Contract under FHP    
Derivatives, Fair Value    
Fair value (121) 115
Commodity Contract under FHP | Other long-term assets    
Derivatives, Fair Value    
Fair value 22 68
Commodity Contract under FHP | Other current assets    
Derivatives, Fair Value    
Fair value   54
Commodity Contract under FHP | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (14)  
Commodity Contract under FHP | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (129) (8)
Commodity Contract under FHP | Accounts Receivable [Member]    
Derivatives, Fair Value    
Fair value   1
Commodity Contract not under FHP | Other current assets    
Derivatives, Fair Value    
Fair value   118
Fair Value, Inputs, Level 2    
Derivatives, Fair Value    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
v3.22.4
Risk Management Activities and Derivative Transactions Currency Swaps Outstanding (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
Mar. 31, 2022
Bond_issues
Derivative    
Number of currency swaps outstanding | Bond_issues   2
Associated TVA bond issues currency exposure | $ $ 400  
Minimum    
Derivative    
Expiration date range of swaps 2032  
Maximum    
Derivative    
Expiration date range of swaps 2043  
v3.22.4
Risk Management Activities and Derivative Transactions Derivatives Under FTP (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
Natural Gas Contract Derivatives    
Derivative    
Fair value 71 145
Commodity Contract under FHP    
Derivative    
Fair value (121) 115
Fair Value, Inputs, Level 2    
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
v3.22.4
Risk Management Activities and Derivative Transactions Offsetting of Derivative Assets (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Offsetting Assets [Line Items]    
Gross amounts of recognized liabilities $ 1,178 $ 1,160
Total derivatives not subject to master netting or similar arrangement 80 152
Forward Contract Derivative Asset, at Fair Value 9 4
Derivative Liability, Not Subject to Master Netting Arrangement 9 7
Derivative Asset, Fair Value, Gross Liability 102 275
Offsetting Derivative Assets [Abstract]    
Derivative, Fair Value, Amount Offset Against Collateral, Net 39  
Letter of Credit    
Offsetting Assets [Line Items]    
Amount of letters of credit outstanding for credit facilities 586 704
Currency Swap    
Offsetting Assets [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset 169 240
Interest Rate Contract    
Offsetting Assets [Line Items]    
Gross amounts of recognized liabilities 857 905
Commodity Contract under FHP    
Offsetting Assets [Line Items]    
Derivative Liability, Fair Value, Gross Liability Including Not Subject to Master Netting Arrangement 182  
Total derivatives not subject to master netting or similar arrangement 22 123
Derivative Asset, Subject to Master Netting Arrangement, after Offset 22 123
Derivative Liability, Not Subject to Master Netting Arrangement 143 8
Derivative Liability, Subject to Master Netting Arrangement, after Offset 143 8
Derivative Asset, Fair Value, Gross Asset Including Not Subject to Master Netting Arrangement 61  
Offsetting Derivative Assets [Abstract]    
Derivative Liability, Fair Value of Collateral 3  
Fair Value, Inputs, Level 2    
Offsetting Assets [Line Items]    
Forward Contract Derivative Asset, at Fair Value 9 4
Fair Value, Inputs, Level 2 | Commodity Contract under FHP    
Offsetting Assets [Line Items]    
Total derivatives not subject to master netting or similar arrangement 22 123
Derivative Liability, Not Subject to Master Netting Arrangement $ 143 $ 8
v3.22.4
Risk Management Activities and Derivative Transactions Offsetting for Derivative Liabilities (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Sep. 30, 2022
USD ($)
Mar. 31, 2022
Bond_issues
Offsetting Liabilities [Line Items]      
Number of currency swaps outstanding | Bond_issues     2
Accounts Receivable, before Allowance for Credit Loss, Current $ 1,633 $ 1,899  
Total derivatives not subject to master netting or similar arrangement 80 152  
Gross amounts of recognized liabilities 1,178 1,160  
Derivative Liability, Not Subject to Master Netting Arrangement 9 7  
Forward Contract Derivative Asset, at Fair Value 9 4  
Interest Rate Contract      
Offsetting Liabilities [Line Items]      
Gross amounts of recognized liabilities 857 905  
Letter of Credit      
Offsetting Liabilities [Line Items]      
Amount of letters of credit outstanding 586 704  
Fair Value, Inputs, Level 2      
Offsetting Liabilities [Line Items]      
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4  
v3.22.4
Risk Management Activities and Derivative Transactions Collateral (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
Likely cash collateral obligation increase 22  
Collateral Paid 50 0
Collateralized Securities [Member]    
Derivative    
Derivative, Collateral, Right to Reclaim Cash 569  
Letter of Credit    
Derivative    
Amount of letters of credit outstanding 586 704
Fair Value, Inputs, Level 2    
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 9 $ 4
v3.22.4
Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
Customers
Sep. 30, 2022
USD ($)
Derivative    
Accounts Receivable, before Allowance for Credit Loss, Current | $ $ 1,633 $ 1,899
Total derivatives not subject to master netting or similar arrangement | $ $ 80 $ 152
Two Largest Customer Percentage of Total Operating Revenue 1600.00%  
Moody's, A1 Rating [Member]    
Derivative    
Banking Counterparties Credit Rating A2  
Natural Gas Banking Counterparties Credit Rating A1  
Moody's, Caa1 Rating [Member]    
Derivative    
Natural Gas Banking Counterparties Credit Rating B1  
Credit of Customers    
Derivative    
Number of customers that represent the percent of sales | Customers 2  
Number of customers that represent the percent of sales | Customers 2  
v3.22.4
Risk Management Activities and Derivative Transactions Cash Flow from Hedging (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Cash Flow from Hedging [Abstract]  
Associated bond issues currency exposure $ 400
v3.22.4
Fair Value Measurements Fair Value Measurements - Investments (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
Units
Dec. 31, 2021
USD ($)
Sep. 30, 2022
USD ($)
Investment Gains (Losses)      
Financing Receivable, after Allowance for Credit Loss $ 100   $ 96
Balance in NDT $ 2,700    
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 $ 3,913   3,671
Affiliated Entity      
Investment Gains (Losses)      
Investment funds 402   $ 358
SERP      
Investment Gains (Losses)      
Unrealized gains (losses) on investments (3) $ (2)  
ART [Member]      
Investment Gains (Losses)      
Unrealized gains (losses) on investments (69) (30)  
NDT [Member]      
Investment Gains (Losses)      
Unrealized gains (losses) on investments 136 $ (119)  
Equity Funds      
Investment Gains (Losses)      
NDT unfunded commitments related to private equity and real estate 179    
Real Estate Funds      
Investment Gains (Losses)      
NDT unfunded commitments related to private equity and real estate 118    
Credit [Member]      
Investment Gains (Losses)      
NDT unfunded commitments related to private equity and real estate 80    
Private Equity Funds [Member]      
Investment Gains (Losses)      
NDT unfunded commitments related to private equity and real estate 95    
Private real estate funds [Member]      
Investment Gains (Losses)      
Fair value plan assets gross 67    
Private Credit [Member]      
Investment Gains (Losses)      
NDT unfunded commitments related to private equity and real estate $ 42    
v3.22.4
Fair Value Measurements Fair Value Measurements - Nonperformance Risk (Details)
$ in Millions
Dec. 31, 2022
USD ($)
Nonperformance Risk  
Derivative Credit Risk Valuation Adjustment, Derivative Assets $ (2)
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities $ 2
v3.22.4
Fair Value Measurements Fair Value Measurements (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 100 $ 96
Investments    
Government debt securities 448 394
Corporate debt securities 302 283
Mortgage and asset-backed securities 29 52
Institutional mutual funds 260 242
Forward debt securities contracts 9 4
Private credit measured at net asset value 124 103
Private equity funds measured at net asset value(1) 537 487 [1]
Private real estate funds measured at net asset value(1) 391 369 [1]
Commingled funds measured at net asset value(1) 1,238 1,203 [1]
Total investments 3,913 3,671
Commodity contract derivatives 80 152
Total derivatives not subject to master netting or similar arrangement 80 152
Total 4,015 3,946
Liabilities    
Currency swaps [2] 169 240
Interest rate swaps 857 905
Commodity contract derivatives 9 7
Derivative Liability, Not Subject to Master Netting Arrangement 9 7
Total 1,178 1,160
Decommissioning Fund Investments 1,100  
Balance in NDT 2,700  
Equity Securities, FV-NI 575 534
Commodity Contract under FHP    
Investments    
Total derivatives not subject to master netting or similar arrangement 22 123
Liabilities    
Derivative Liability, Not Subject to Master Netting Arrangement 143 8
Fair Value, Inputs, Level 1    
Investments    
Government debt securities 402 358
Corporate debt securities 0 0
Mortgage and asset-backed securities 0 0
Institutional mutual funds 260 242
Forward debt securities contracts 0 0
Private credit measured at net asset value 0 0
Private equity funds measured at net asset value(1) [1]   0
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 1,237 1,134
Commodity contract derivatives 0 0
Total 1,237 1,134
Liabilities    
Currency swaps 0 0 [2]
Interest rate swaps 0 0
Commodity contract derivatives 0 0
Total 0 0
Equity Securities, FV-NI 575 534
Fair Value, Inputs, Level 1 | Commodity Contract under FHP    
Investments    
Total derivatives not subject to master netting or similar arrangement 0 0
Liabilities    
Derivative Liability, Not Subject to Master Netting Arrangement 0 0
Fair Value, Inputs, Level 2    
Investments    
Government debt securities 46 36
Corporate debt securities 302 283
Mortgage and asset-backed securities 29 52
Institutional mutual funds 0 0
Forward debt securities contracts 9 4
Private credit measured at net asset value 0 0
Private equity funds measured at net asset value(1) [1]   0
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 386 375
Commodity contract derivatives 80 152
Total 488 650
Liabilities    
Currency swaps 169 240 [2]
Interest rate swaps 857 905
Commodity contract derivatives 9 7
Total 1,178 1,160
Equity Securities, FV-NI 0 0
Fair Value, Inputs, Level 2 | Commodity Contract under FHP    
Investments    
Total derivatives not subject to master netting or similar arrangement 22 123
Liabilities    
Derivative Liability, Not Subject to Master Netting Arrangement 143 8
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) [1]   0
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
Fair Value, Inputs, Level 3 | Commodity Contract under FHP    
Investments    
Total derivatives not subject to master netting or similar arrangement 0 0
Liabilities    
Derivative Liability, Not Subject to Master Netting Arrangement $ 0 $ 0
[1] Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty if applicable, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 13 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
[2] 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.
v3.22.4
Fair Value Measurements Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commodity contract derivatives $ 80 $ 152
Commodity contract derivatives 9 7
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
v3.22.4
Fair Value Measurements Estimated Values of Financial Instruments Not Recorded at Fair Value (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Estimated Values of Financial Intruments Not Recorded at Fair Value    
EnergyRight® receivables, net (including current portion) $ 62 $ 62
Loans and other long-term receivables, net (including current portion) 100 96
EnergyRight® financing obligations (including current portion) 81 81
Unfunded loan commitments 1 0
Membership interests of VIEs subject to mandatory redemption (including current portion) 22 22
Long-term outstanding power bonds, net (including current maturities) 17,790 18,070
Long-term debt of VIEs, net (including current maturities) 1,009 989
Portion at Other than Fair Value Measurement [Member]    
Estimated Values of Financial Intruments Not Recorded at Fair Value    
EnergyRight® receivables, net (including current portion) 61 62
Loans and other long-term receivables, net (including current portion) 109 105
EnergyRight® financing obligations (including current portion) 72 72
Unfunded loan commitments 0 0
Membership interests of VIEs subject to mandatory redemption (including current portion) 20 20
Long-term outstanding power bonds, net (including current maturities)   17,856
Long-term debt of VIEs, net (including current maturities) 17,894 $ 1,007
Long-term notes payable (including current maturities) $ 1,007  
v3.22.4
Other Income (Expense), Net (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Other Income (Expense), Net    
External services $ 3 $ 5
Interest income 7 3
Gains (losses) on investments 6 4
Miscellaneous 0 2
Other income (expense), net $ 16 $ 14
v3.22.4
Benefit Plans Components of Benefit Plans (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Pension Plan    
Retirement Plan Disclosure    
Service cost $ 9 $ 13
Interest cost 142 94
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (123) 109
Amortization of prior service cost (22) (23)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) 34 (96)
Net periodic benefit cost as acutarially determined 40 71
Amount capitalized due to actions of regulator (19) 6
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) 59 77
Other Postretirement Benefit Plan    
Retirement Plan Disclosure    
Service cost 3 4
Interest cost 5 4
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) 0 (1)
Net periodic benefit cost as acutarially determined 4 5
Amount capitalized due to actions of regulator 0 0
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) 4 $ 5
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 $ 29  
v3.22.4
Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Other Pension Plan    
Retirement Plan Disclosure    
Defined benefit plan contributions $ 75  
Pension Benefits    
Retirement Plan Disclosure    
Service cost 9 $ 13
Interest cost 142 94
Expected return on plan assets 123 (109)
Amortization of prior service cost (22) (23)
Recognized net actuarial loss (34) 96
Total net periodic benefit cost as actuarially determined 40 71
Amount capitalized due to actions of regulator 19 (6)
Total net periodic benefit cost 59 77
Other Post-retirement Benefits    
Retirement Plan Disclosure    
Defined benefit plan contributions 8  
Service cost 3 4
Interest cost 5 4
Expected return on plan assets 0 0
Amortization of prior service cost (4) (4)
Recognized net actuarial loss 0 1
Total net periodic benefit cost as actuarially determined 4 5
Amount capitalized due to actions of regulator 0 0
Total net periodic benefit cost $ 4 $ 5
v3.22.4
Benefit Plans Contributions (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
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 29
Minimum | Other Pension Plan  
Retirement Plan Disclosure  
Defined benefit plan contributions $ 300
v3.22.4
Contingencies and Legal Proceedings Contingencies (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
reactors
Procedures
Insurance_layers
Sep. 30, 2022
USD ($)
Loss Contingencies    
Nuclear liability insurance $ 450  
Assessment from licensees for each licensed reactor $ 138  
Number of licensed reactors in US | reactors 96  
Nuclear accident assessment limitation per year per unit $ 20  
Maximum assessment per nuclear incident 963  
Total amount of protection available 13,700  
Amount of insurance available for loss at any one site 2,100  
Maximum amount of retrospective premiums 115  
Maximum idemnity if a covered accident takes or keeps a nuclear unit offline 490  
Maximum retrospective premiums 44  
Estimated future decommissioning cost $ 7,155 $ 7,162
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 $ 284  
Possible additional future costs for compliance with CCR requirements 835  
Possible additional future costs for compliance with Clean Water requirements. 96  
Estimated liability for cleanup and environmental work 17 17
Amount of insurance available for loss at any one site (top range) 2,800  
Long-term debt of VIEs, net (including current maturities) $ 1,009 989
The U.S. Congress is required to take action if these layes are exhausted | Insurance_layers 2  
Nuclear    
Loss Contingencies    
Estimated future decommissioning cost $ 3,687 3,643
Non-nuclear    
Loss Contingencies    
Estimated future decommissioning cost $ 3,468 $ 3,519
v3.22.4
Contingencies and Legal Proceedings Legal Proceedings (Details)
Dec. 31, 2022
Units
Legal Proceedings  
Number of licensed nuclear units 7
v3.22.4
Subsequent Event (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Jan. 30, 2023
Sep. 30, 2022
Subsequent Event [Line Items]        
Redemptions and repurchases of power bonds $ 1 $ 1    
Increase/Decrease in Interest Rate Swap Liability 90      
Current regulatory assets 320     $ 138
Operating and maintenance 827 780    
Interest expense 262 $ 263    
Non-current regulatory assets 5,909     6,134
Regulatory Liability, Noncurrent 109     172
Commodity Contract under FHP        
Subsequent Event [Line Items]        
Derivative Liability, Fair Value of Collateral 3      
Unrealized gains/losses on commodity derivatives        
Subsequent Event [Line Items]        
Regulatory Liability, Noncurrent 43     102
Unrealized gains/losses on commodity derivatives        
Subsequent Event [Line Items]        
Current regulatory assets 137     14
Non-current regulatory assets $ 15     $ 1
Forecast | DeferredDerivativeGainLossUnderFHP        
Subsequent Event [Line Items]        
Regulatory Liability, Noncurrent     $ 175  
v3.22.4
Gallatin Coal Combustion Residual Facilities (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Other Long-Term Liabilities    
Current regulatory assets $ 320 $ 138
v3.22.4
Revenue (Details) - USD ($)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2023
State [Line Items]      
Electric revenue $ (2,959) $ (2,537)  
Sales of Electricity 2,963 2,538  
Off System Sales of Electricity 4    
Other revenue $ 52 45  
Total long duration contract revenue recognition 2,706    
Revenues $ 3,015 2,583  
Off system sales   1  
Percent of wholesale Credit offered 310.00%    
Percent of Pandemic Credit Offered 2.50%    
Pandemic Relief Credit $ (53) (50)  
Percent of Generation Flexibility Credit 5.00%    
NES's % of operating revenues 800.00%    
Percent of Generation Flexibility Credit 5.00%    
Forecast      
State [Line Items]      
Pandemic Relief Credit     $ 230
ALABAMA      
State [Line Items]      
Electric revenue $ (428) (371)  
GEORGIA      
State [Line Items]      
Electric revenue (76) (64)  
KENTUCKY      
State [Line Items]      
Electric revenue (198) (171)  
MISSISSIPPI      
State [Line Items]      
Electric revenue (278) (241)  
NORTH CAROLINA      
State [Line Items]      
Electric revenue (25) (20)  
TENNESSEE      
State [Line Items]      
Electric revenue (1,941) (1,659)  
VIRGINIA      
State [Line Items]      
Electric revenue (13) $ (11)  
20-year Termination Notice [Member]      
State [Line Items]      
Revenues 2,345    
5-year termination notice [Member]      
State [Line Items]      
Revenues $ 361    
v3.22.4
Revenue Customer Type (Details)
$ in Millions
 3 Months Ended 12 Months Ended
Dec. 31, 2022
USD ($)
Units
Dec. 31, 2021
USD ($)
Sep. 30, 2023
USD ($)
Revenue, Major Customer [Line Items]      
MLGW's % of operating revenues 800.00%    
NES's % of operating revenues 800.00%    
Sales of Electricity $ 2,963 $ 2,538  
Electric revenue 2,959 2,537  
Off System Sales of Electricity 4    
Other revenue 52 45  
Revenues 3,015 2,583  
Bill credits for LTA $ (48) (43)  
Number of LPCs signed LTA | Units 147    
Number of LPCs signed Flexibility Agreement | Units 81    
Percent of sales of electricity to LPCs 91.00%    
Pandemic Relief Credit $ (53) (50)  
Forecast      
Revenue, Major Customer [Line Items]      
Pandemic Relief Credit     $ 230
lpcs [Domain]      
Revenue, Major Customer [Line Items]      
Electric revenue 2,706 2,306  
industries directly served [Domain]      
Revenue, Major Customer [Line Items]      
Electric revenue 225 205  
federal agencies and other [Domain]      
Revenue, Major Customer [Line Items]      
Electric revenue 32 27  
ALABAMA      
Revenue, Major Customer [Line Items]      
Electric revenue 428 371  
GEORGIA      
Revenue, Major Customer [Line Items]      
Electric revenue 76 64  
KENTUCKY      
Revenue, Major Customer [Line Items]      
Electric revenue 198 171  
MISSISSIPPI      
Revenue, Major Customer [Line Items]      
Electric revenue 278 241  
NORTH CAROLINA      
Revenue, Major Customer [Line Items]      
Electric revenue 25 20  
TENNESSEE      
Revenue, Major Customer [Line Items]      
Electric revenue 1,941 1,659  
VIRGINIA      
Revenue, Major Customer [Line Items]      
Electric revenue $ 13 $ 11  
v3.22.4
Revenue Unpaid Incentives (Details) - USD ($)
$ in Millions
 3 Months Ended
Dec. 31, 2022
Dec. 31, 2021
Sep. 30, 2022
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items]      
Paid Economic Incentives $ 82 $ 89  
Unpaid Economic Incentives $ (188)   $ (187)
v3.22.4
Revenue Local Power Company Contracts (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2022
USD ($)
Units
Dec. 31, 2021
USD ($)
Long-term Contract for Purchase of Electric Power [Line Items]    
Long-Duration Contracts Revenue Recognition, Policy [Policy Text Block] $ 3,015 $ 2,583
Total long-duration contracts revenue recognition 2,706  
Total percentage of operating revenues 89.80%  
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] $ 361  
Percentage of total operating revenues 12.00%  
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] $ 2,345  
Percentage of total operating revenues 77.80%  
v3.22.4
Leases (Details) - USD ($)
$ in Millions
Dec. 31, 2022
Sep. 30, 2022
Amounts Recognized on TVA's Consolidated Balance Sheet [Line Items]    
Finance lease, asset $ 615 $ 630
Operating Lease, Liability, Noncurrent 85 93
Finance Lease, Liability, Noncurrent $ 619 $ 628
v3.22.4
Research and Development (Details) - USD ($)
$ in Millions
 3 Months Ended 48 Months Ended
Dec. 31, 2022
Sep. 30, 2026
Research and Development Arrangement, Contract to Perform for Others [Line Items]    
Other Research and Development Expense $ 16  
Forecast    
Research and Development Arrangement, Contract to Perform for Others [Line Items]    
Other Research and Development Expense   $ 88