TENNESSEE VALLEY AUTHORITY, 10-Q filed on 8/4/2026
Quarterly Report
v3.26.1
Cover
shares in Millions
 9 Months Ended
Jun. 30, 2026
shares
Cover [Abstract]  
Central Index Key 0001376986
Current Fiscal Year End Date --09-30
Entity Incorporation, State or Country Code X1
Document Fiscal Year Focus 2026
Document Fiscal Period Focus Q3
Amendment Flag false
Entity Common Stock, Shares Outstanding 0
Document Type 10-Q
Document Quarterly Report true
Document Period End Date Jun. 30, 2026
Document Transition Report false
Entity File Number 000-52313
Registrant Name TENNESSEE VALLEY AUTHORITY
Entity Address, Country US
Entity Tax Identification Number 62-0474417
Entity Address, Postal Zip Code 37902
Entity Address, State or Province TN
Entity Address, City or Town Knoxville
Entity Address, Address Line One 400 W. Summit Hill Drive
City Area Code (865)
Local Phone Number 632-2101
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Emerging Growth Company false
Entity Small Business false
Entity Shell Company false
Entity Filer Category Non-accelerated Filer
v3.26.1
Statement of Financial Position, Classified (Statement) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Statement of Financial Position [Abstract]    
Cash and Cash Equivalent $ 1,416 $ 1,576
Accounts Receivable, after Allowance for Credit Loss, Current 2,172 2,119
Inventory, Net 1,264 1,193
Regulatory Asset, Current 233 127
Other Assets, Current 279 162
Assets, Current 5,432 5,177
Completed Plant 71,403 71,574
Property, Plant, and Equipment, Accumulated Depreciation, Depletion, and Amortization (39,343) (38,716)
Net Completed Plant 32,060 32,858
Construction in Progress, Gross 8,073 6,760
Nuclear Fuel, Net of Amortization 1,226 1,185
Finance Lease, Asset 608 663
Public Utilities, Property, Plant and Equipment, Net 41,967 41,466
Long-Term Investments 6,245 5,573
Regulatory Asset, Noncurrent 7,496 8,047
Operating Lease, Right-of-Use Asset 75 113
Other Assets, Noncurrent 429 506
Investments and Other Noncurrent Assets 8,000 8,666
Assets 61,644 60,882
Accounts Payable and Accrued Liabilities, Current 3,148 3,299
Interest Payable, Current 330 348
Asset Retirement Obligation, Current 313 313
Regulatory Liability, Current 215 228
Short-Term Debt 500 0
Unsecured Debt, Current 1,020 1,370
Other Long-Term Debt, Current 75 49
Liabilities, Current 5,601 5,607
Liability, Defined Benefit Plan, Noncurrent 1,987 2,183
Asset Retirement Obligations, Noncurrent 9,222 10,101
Finance Lease, Liability 600 640
Other Liabilities, Noncurrent 1,436 1,606
Regulatory Liability, Noncurrent 321 141
Liabilities, Other than Long-Term Debt, Noncurrent 13,566 14,671
Unsecured Long-Term Debt, Noncurrent 19,443 20,461
Other Long-Term Debt, Noncurrent 3,551 1,632
Long-Term Debt, Excluding Current Maturities 22,994 22,093
Total Liabilities 42,161 42,371
Power Program Appropriation Investment 258 258
Power Program Retained Earnings 18,762 17,797
Total Power Program Proprietary Capital 19,020 18,055
Nonpower Programs Appropriation investment, net 504 510
Accumulated Other Comprehensive Income (Loss), Net of Tax (41) (54)
Proprietary Capital 19,483 18,511
Liabilities and Equity 61,644 60,882
CCCGL    
Restricted Cash $ 68 $ 0
v3.26.1
Statement of Income (Statement) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Regulated Operating Revenue $ 3,389 $ 3,261 $ 9,877 $ 9,613
Regulated and Unregulated Operating Revenue 3,442 3,306 10,037 9,758
Utilities Operating Expense, Fuel Used 685 589 1,882 1,674
Utilities Operating Expense, Purchased Power 563 550 1,561 1,516
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses 964 922 2,695 2,771
Utilities Operating Expense, Depreciation and Amortization 448 572 1,530 1,691
Utilities Operating Expense, Taxes 171 156 492 460
Operating Expenses 2,831 2,789 8,160 8,112
Operating Income (Loss) 611 517 1,877 1,646
Other Nonoperating Income (Expense) 34 29 89 58
Defined Benefit Plan, Other Cost (Credit) 22 27 68 79
Interest and Debt Expense 316 307 933 880
Net Income (Loss) 307 212 965 745
Other Operating Segment        
Unregulated Operating Revenue $ 53 $ 45 $ 160 $ 145
v3.26.1
Statement of Comprehensive Income (Statement) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax $ 17 $ 47 $ 8 $ 24
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax (7) (38) 5 (15)
Other Comprehensive Income (Loss), Net of Tax 10 9 13 9
Comprehensive Income (Loss), Net of Tax, Attributable to Parent 317 221 978 754
Net Income (Loss) $ 307 $ 212 $ 965 $ 745
v3.26.1
Statement of Cash Flows (Statement)
$ in Millions
 9 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Depreciation, Amortization and Accretion, Net $ 1,549 $ 1,707
Amortization of Nuclear Fuel 266 208
Pension and Other Postretirement Benefits Cost (Reversal of Cost) 92 112
Reg Asset Amortization (86) (38)
Increase (Decrease) in Accounts Receivable (20) (76)
Increase (Decrease) in Inventories (137) (67)
Increase (Decrease) in Accounts Payable and Accrued Liabilities (159) 3
Increase (Decrease) in Interest Payable, Net (20) 31
Payment for Pension Benefits (236) (235)
Asset Retirement Obligation, Cash Paid to Settle (202) (190)
Increase (Decrease) in Other Operating Assets and Liabilities, Net (129) (124)
Cash Provided by (Used in) Operating Activity, Including Discontinued Operation 1,883 2,076
Payments to Acquire Property, Plant, and Equipment (2,874) (3,461)
Payments for (Proceeds from) Nuclear Fuel (274) (198)
Proceeds from Contribution in Aid of Construction, Investing Activity 86 95
Payments to Acquire Assets, Investing Activities (4) (4)
Payments to Acquire Loans Receivable (10) 0
Proceeds from Collection of Loans Receivable 4 10
Payment for (Proceeds from) Other Investing Activity 73 (70)
Cash Provided by (Used in) Investing Activity, Including Discontinued Operation (2,999) (3,628)
Proceeds from Issuance of Unsecured Debt 0 2,722
Proceeds from Issuance of Debt 2,000 800
Repayments of Unsecured Debt (1,370) (1,022)
Repayments of Other Long-Term Debt (29) (23)
Proceeds from (Repayments of) Short-Term Debt 499 (847)
Finance Lease, Principal Payments (54) (50)
Payments of Financing Costs (25) (25)
Proceeds from (Payment for) Other Financing Activity 3 (4)
Cash Provided by (Used in) Financing Activity, Including Discontinued Operation 1,024 1,551
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Period Increase (Decrease), Including Exchange Rate Effect and Discontinued Operation (92) (1)
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Continuing Operation 1,505  
Net Income (Loss) $ 965 $ 745
v3.26.1
Statement of Shareholders' Equity (Statement) - USD ($)
$ in Millions
Total
Power Program Appropriation Investment Member
Power Program Retained Earnings Member
Nonpower Programs Appropriations Investment
AOCI Attributable to Parent
Power Program Appropriation Investment $ 258        
Power Program Retained Earnings 16,437        
Nonpower Programs Appropriation investment, net 518        
Accumulated Other Comprehensive Income (Loss), Net of Tax (52)        
Proprietary Capital 17,161        
Net Income (Loss) 745 $ 0 $ 751 $ (6) $ 0
Other Comprehensive Income (Loss), Net of Tax 9 0 0 0 9
Return on Power Program Appropriation Investment (6) 0 (6) 0 0
Power Program Appropriation Investment 258        
Power Program Retained Earnings 16,970        
Nonpower Programs Appropriation investment, net 514        
Accumulated Other Comprehensive Income (Loss), Net of Tax (52)        
Proprietary Capital 17,690        
Net Income (Loss) 212 0 214 (2) 0
Other Comprehensive Income (Loss), Net of Tax 9 0 0 0 9
Return on Power Program Appropriation Investment (2) 0 (2) 0 0
Power Program Appropriation Investment 258        
Power Program Retained Earnings 17,182        
Nonpower Programs Appropriation investment, net 512        
Accumulated Other Comprehensive Income (Loss), Net of Tax (43)        
Proprietary Capital 17,909        
Power Program Appropriation Investment 258        
Power Program Retained Earnings 17,797        
Nonpower Programs Appropriation investment, net 510        
Accumulated Other Comprehensive Income (Loss), Net of Tax (54)        
Proprietary Capital 18,511        
Net Income (Loss) 965 0 971 (6) 0
Other Comprehensive Income (Loss), Net of Tax 13 0 0 0 13
Return on Power Program Appropriation Investment (6) 0 (6) 0 0
Power Program Appropriation Investment 258        
Power Program Retained Earnings 18,455        
Nonpower Programs Appropriation investment, net 506        
Accumulated Other Comprehensive Income (Loss), Net of Tax (51)        
Proprietary Capital 19,168        
Net Income (Loss) 307 0 309 (2) 0
Other Comprehensive Income (Loss), Net of Tax 10 0 0 0 10
Return on Power Program Appropriation Investment (2) $ 0 $ (2) $ 0 $ 0
Power Program Appropriation Investment 258        
Power Program Retained Earnings 18,762        
Nonpower Programs Appropriation investment, net 504        
Accumulated Other Comprehensive Income (Loss), Net of Tax (41)        
Proprietary Capital $ 19,483        
v3.26.1
Statement of Cash Flows, Supplemental Disclosures (Statement) - USD ($)
$ in Millions
 3 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Supplemental Cash Flow Elements [Abstract]    
Capital Expenditures Incurred but Not yet Paid $ 1,100 $ 961
Noncash or Part Noncash Acquisition, Payables Assumed $ 50 $ 41
v3.26.1
Statement of Cash Flows, Supplemental Disclosures
 9 Months Ended
Jun. 30, 2026
Supplemental Cash Flow Elements [Abstract]  
Cash Flow, Supplemental Disclosures Supplemental Cash Flow Information
Accrued construction in progress and nuclear fuel expenditures at June 30, 2026 and 2025, were $1.1 billion and $961 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2026 and 2025, as non-cash investing activities. ARO project accruals at June 30, 2026 and 2025, were $50 million and $41 million, respectively, and are excluded from the Consolidated Statements of Cash Flows for the nine months ended June 30, 2026 and 2025, as non-cash operating activities.

Cash flows from swap contracts that are accounted for as hedges are classified in the same category as the item being
hedged or on a basis consistent with the nature of the instrument.
v3.26.1
Accounting Policies
 9 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Significant Accounting Policies Summary of Significant Accounting Policies
General

The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") in the United States of America 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, 2025, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2025 (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.

Fiscal Year

TVA's fiscal year ends September 30.  Years (2026, 2025, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Basis of Presentation

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 10 — 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.

Reclassifications

Certain historical amounts in the accompanying consolidated financial statements have been reclassified to the current presentation. In the June 30, 2025, Consolidated Statements of Cash Flows, $76 million previously reported as Other, net in Cash flows from investing activities, was reclassified. Cash outflows for Construction expenditures increased $19 million and cash inflows for Contributions in aid of construction increased $95 million.

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. In addition, at June 30, 2026, TVA had restricted cash related to VIEs. See Note 10 — Variable Interest Entities.

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 June 30, 2026At September 30, 2025
Cash and cash equivalents$1,416 $1,576 
Restricted cash of variable interest entity68 — 
Restricted cash and cash equivalents included in Other long-term assets21 21 
Total cash, cash equivalents, and restricted cash$1,505 $1,597 

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/or 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 as part of estimating expected credit losses, 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 assumes that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the trade receivables.

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 $21 million and $14 million at June 30, 2026, and September 30, 2025, respectively, for trade accounts receivable. At June 30, 2026, the allowance for uncollectible accounts included $20 million related to one local power company customer ("LPC"). Additionally, loans receivable of $114 million and $86 million at June 30, 2026, and September 30, 2025, 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 $2 million at both June 30, 2026, and September 30, 2025.

Pre-Commercial Plant Operations

As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the
energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on the Johnsonville Aeroderivative Combustion Turbine ("CT") Facility ("Johnsonville Facility") during 2025. Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively. TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively. Pre-commercial plant operations began on the Cumberland Combined Cycle Gas Plant ("CUG") Units 1 and 2 during the three months ended June 30, 2026. Estimated revenue of $2 million related to this project was capitalized to offset project costs for both the three and nine months ended June 30, 2026. TVA also capitalized related fuel costs for this project of $7 million for both the three and nine months ended June 30, 2026.

Property, Plant, and Equipment, and 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. These studies are updated approximately every five years, with a study currently being performed and implementation expected in October 2026. Depreciation expense was $362 million and $484 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense was $1.3 billion and $1.4 billion for the nine months ended June 30, 2026 and 2025, respectively. See Note 7 — Plant Closures for a discussion of the impact of plant closures.

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. In December 2025, the Nuclear Regulatory Commission ("NRC") approved a subsequent license renewal ("SLR") application for the three units at Browns Ferry Nuclear Plant ("Browns Ferry"), which extended the useful life of the three units for an additional 20 years. The SLR is estimated to result in approximately a $45 million reduction in depreciation expense quarterly, which does not include any potential impact from additions or retirements to net completed plant. For the three and nine months ended June 30, 2026, there was an estimated reduction in depreciation expense of $45 million and $105 million, respectively, due to the December 2025 Browns Ferry SLR.

Government Grants

TVA accounts for government grants based on what the grant is intended to reimburse. Government grants related to an asset are recognized as an adjustment to the cost basis in determining the carrying amount of the asset (the cost accumulation approach), and government grants related to income are recognized as a deduction from the related expense. TVA records the grant when it is probable that both of the following criteria are met: (1) the grant will be received, and (2) TVA complies with all conditions attached to the eligibility of the grant.

The Inflation Reduction Act of 2022 ("IRA") makes credits available to certain tax-exempt entities, including TVA. In 2025, TVA began applying for these credits including Section 48 Investment Tax Credits for qualifying hydroelectric improvements and Section 45U Production Tax Credits for electricity generated by TVA's existing nuclear units. At June 30, 2026, and September 30, 2025, the carrying amount of the Accounts receivable, net, which is related to IRA tax credits was $112 million and $72 million, respectively. TVA received $26 million during the nine months ended June 30, 2026, related to these credits.
There were no asset-related government grants recorded during the nine months ended June 30, 2026. During the nine months ended June 30, 2026 and 2025, TVA recognized $66 million and $4 million of income-related government grants, respectively, which were recorded as reductions of Operating and maintenance expense. There were no income-related government grants recorded during the three months ended June 30, 2026 and 2025.
Business Description and Basis of Presentation
General

The Tennessee Valley Authority ("TVA") prepares its consolidated interim financial statements in conformity with Generally Accepted Accounting Principles ("GAAP") in the United States of America 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, 2025, and the notes thereto, which are contained in TVA's Annual Report on Form 10-K for the year ended September 30, 2025 (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.
Reclassifications
Reclassifications

Certain historical amounts in the accompanying consolidated financial statements have been reclassified to the current presentation. In the June 30, 2025, Consolidated Statements of Cash Flows, $76 million previously reported as Other, net in Cash flows from investing activities, was reclassified. Cash outflows for Construction expenditures increased $19 million and cash inflows for Contributions in aid of construction increased $95 million.
v3.26.1
Accounting Changes and Error Corrections
 9 Months Ended
Jun. 30, 2026
Accounting Changes and Error Corrections [Abstract]  
Accounting Standards Update and Change in Accounting Principle Impact of New Accounting Standards and Interpretations     
The following is an accounting standard update issued by the Financial Accounting Standards Board that TVA adopted during 2026:

Accounting for Government Grants
DescriptionThis guidance establishes accounting recognition, measurement, and presentation of government grants received by business entities, including guidance for (1) a grant related to an asset and (2) a grant related to income. The amendments in this update require that a government grant received by a business entity not be recognized until it is probable that (a) a business entity will comply with the conditions attached to the grant and (b) the grant will be received. The amendments require that a grant related to an asset be recognized utilizing either a deferred income approach or an adjustment to the cost basis and that a grant related to income be recognized either as other income or as a deduction from the related expense. In addition, the amendments require, consistent with current disclosure requirements, that a business entity provide disclosures, including the nature of the government grant received, the accounting policies used to account for the grant, and significant terms and conditions of the grant.
Effective Date for TVAThe new standard is effective for TVA's interim and annual reporting periods beginning October 1, 2029. Early adoption is permitted, and TVA early adopted the standard as of October 1, 2025, applying the guidance on a modified prospective basis to grants that were not complete as of the adoption date.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard did not have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures, and no cumulative-effect adjustment to retained earnings was recorded upon adoption.
The following accounting standards or rules have been issued but as of June 30, 2026, were not effective and have not been adopted by TVA:

Enhancement and Standardization of Climate-Related Disclosures for Investors
Description
In March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors). In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges; in March 2025, the SEC withdrew its legal defense of the rule; in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule; and in May 2026, the SEC proposed rescinding the rule. The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances. If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2027, for non-accelerated filers.
Effective Date for TVAFiscal year beginning October 1, 2027.
Effect on the Financial Statements or Other Significant MattersTVA is currently evaluating the impact of the rule on its disclosures.

Disaggregation of Income Statement Expenses
Description
This guidance improves the disclosures about a public entity's expenses in the notes to the financial statements and requires disclosure of specified information about certain costs and expenses. The amendments require a public entity to disclose, on an annual and interim basis, purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. Specified expenses, gains, or losses that are already disclosed under existing U.S. GAAP are required to be included in the disaggregated income statement expense line item disclosures, and any relevant remaining amounts need to be described qualitatively. Separate disclosures of total selling expenses and an entity’s definition of those expenses are also required. The amendments are effective for public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, a public entity can apply the amendments prospectively or apply them retrospectively to all prior periods presented in the financial statements.
Effective Date for TVAFiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows. TVA expects to adopt this standard prospectively.
Accounting and Disclosure of Costs Related to Internally Developed Software
DescriptionThis guidance amends the accounting for and disclosure of costs related to internally developed software, eliminating project stages, clarifying significant development uncertainty by requiring costs to be recognized only when uncertainty is resolved, and aligning capitalization rules with those for externally sold software. Key changes include the elimination of distinct project stages for development, a redefined meaning of probable as likely, and requirements to assess significant development uncertainty for all software projects to determine when to capitalize costs. In addition, the guidance specifies that the property, plant, and equipment disclosure requirements shall be applied to all capitalized software costs. The amendments are effective for all public entities for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. Upon adoption, a public entity may apply the guidance using a prospective, retrospective, or modified transition approach.
Effective Date for TVAFiscal year and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard is not expected to have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures.

Accounting for Environmental Credits and Environmental Credit Obligations
DescriptionThis guidance provides specific authoritative guidance that establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The amendments are effective for public entities for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Upon adoption, a public entity should apply the amendments on a retrospective basis through a cumulative-effect adjustment to the opening balances of retained earnings as of the beginning of the annual reporting period of adoption.
Effective Date for TVAFiscal year and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard is not expected to have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures.
v3.26.1
Restructuring and Related Activities
 9 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
Restructuring and Related Activities Disclosure Restructuring
TVA’s demand continues to grow, driving the need for significant future capital investment. TVA must continue to drive efficiencies and cost savings across the enterprise to provide affordable, reliable electricity, while funding the capital investment needed to meet growing demand. This effort has evolved into an Enterprise Transformation Program ("ETP") focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through supply chain, and making the workforce more efficient. As part of these efforts, certain employees are eligible for severance payments. These amounts are recognized in Operating and maintenance expense on TVA's Consolidated Statements of Operations in the period incurred. Severance costs that have been incurred but not paid are included in Accounts payable and accrued liabilities on TVA's Consolidated Balance Sheets. The organizational design efforts associated with the ETP were complete as of September 30, 2025; however, the ETP is ongoing as TVA executes the focus areas described above. The table below summarizes the activity related to severance costs associated with the ETP:

Severance Cost Liability Activity
(in millions)
Severance cost liability at September 30, 2024$— 
Liabilities incurred during the period40 
Actual costs paid during the period(26)
Severance cost liability at June 30, 2025
$14 
Severance cost liability at September 30, 2025
$11 
Liabilities incurred during the period— 
Actual costs paid during the period(11)
Severance cost liability at June 30, 2026
$— 
v3.26.1
Receivables, Loans, Notes Receivable, and Others
 9 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure 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 June 30, 2026
At September 30, 2025(2)
Customer receivables$2,035 $1,992 
Other receivables158 141 
Allowance for uncollectible accounts(1)
(21)(14)
Accounts receivable, net$2,172 $2,119 
Notes
(1) 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, among other considerations. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. At June 30, 2026 and September 30, 2025, the allowance for uncollectible accounts included $20 million and $14 million, respectively, related to one LPC customer.
(2) At September 30, 2025, $84 million previously classified as Other receivables has been reclassified to Customer receivables to conform with current year presentation.
v3.26.1
Inventory
 9 Months Ended
Jun. 30, 2026
Inventory Disclosure [Abstract]  
Inventory Disclosure Inventories, Net
The table below summarizes the types and amounts of TVA's inventories:
Inventories, Net
(in millions)
At June 30, 2026At September 30, 2025
Materials and supplies inventory$1,018 $986 
Fuel inventory320 278 
Renewable energy certificates/emissions allowance inventory, net10 12 
Allowance for inventory obsolescence(84)(83)
Inventories, net$1,264 $1,193 
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets
 9 Months Ended
Jun. 30, 2026
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 June 30, 2026At September 30, 2025
Inventory work-in-progress$107 $69 
Cloud assets51 3 
Current portion of prepaid long-term service agreements36 16 
Prepaid software maintenance36 25 
Prepaid insurance20 16 
Commodity contract derivative assets11 14 
Prepaid fees and dues9 7 
Other9 12 
Other current assets$279 $162 
Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Contract Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.
v3.26.1
Property, Plant, and Equipment
 9 Months Ended
Jun. 30, 2026
Property, Plant, and Equipment [Abstract]  
Plant Closures Disclosure Plant Closures
TVA must continuously evaluate all generating assets to ensure an optimal energy portfolio that provides safe and reliable power while maintaining flexibility and fiscal responsibility to the people of the Tennessee Valley. In January 2023, TVA issued its Record of Decision to retire two coal-fired units at the Cumberland Coal-Fired Plant ("CUF") by the end of CY 2026 and CY 2028. In April 2024, TVA issued its Record of Decision to retire the nine coal-fired units at the Kingston Coal-Fired Plant (“KIF”) by the end of CY 2027.

In February 2026, TVA published final supplemental environmental impact statements with the preferred alternatives of continued operations of KIF and CUF in conjunction with the other capacity projects being constructed at the Kingston and Cumberland sites. The TVA Board of Directors ("TVA Board") subsequently and separately authorized TVA, at the direction and discretion of the Chief Executive Officer ("CEO"), to operate KIF and CUF in accordance with all applicable laws and regulatory requirements, including all requirements imposed by any applicable permits, and directed TVA staff to apply for any permits that may be applicable for TVA to continue to operate the coal units, along with the new gas units.

Depreciation rates are adjusted to reflect the most current planning assumptions, ensuring units will be fully depreciated by the applicable retirement dates. TVA's previous decision to retire CUF and KIF resulted in approximately $197 million and $66 million, respectively, of additional depreciation recorded through January 2026. Current depreciable life assumptions for KIF and CUF are estimated to result in approximately a $99 million reduction in quarterly depreciation expense, which does not include any potential impact from additions or retirements to net completed plant. For the three and nine months ended June 30, 2026, there was an estimated reduction in depreciation expense of $99 million and $132 million, respectively.
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets
 9 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Assets Disclosure 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 June 30, 2026At September 30, 2025
Loans and other long-term receivables, net$111 $83 
Prepaid long-term service agreements77 89 
Prepaid capital assets65 81 
Cloud assets60 114 
EnergyRight® receivables, net
45 45 
Commodity contract derivative assets2 10 
Other69 84 
Total other long-term assets$429 $506 

Loans and Other Long-Term Receivables. At both June 30, 2026, and September 30, 2025, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million. Loans receivables are reported net of allowances for uncollectible accounts. 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 June 30, 2026At September 30, 2025
EnergyRight® loan reserve
$1 $1 
Economic development loan specific loan reserve1 1 
Total allowance for loan losses$2 $2 

Prepaid Long-Term Service Agreements. At June 30, 2026, and September 30, 2025, prepayments of $36 million and $16 million, respectively, were recorded in Other current assets.

Prepaid Capital Assets. TVA makes prepayments to acquire capital assets. TVA classifies these prepayments as prepaid capital if the funds are refundable and/or TVA can receive a credit.
Cloud Assets. At June 30, 2026, and September 30, 2025, the carrying amount of the cloud assets reported in Other current assets was $51 million and $3 million, respectively. For the three months ended June 30, 2026 and 2025, TVA amortized $13 million and $3 million, respectively, as Operating and maintenance expense. For the nine months ended June 30, 2026 and 2025, TVA amortized $27 million and $12 million, respectively, as Operating and maintenance expense.

EnergyRight® Receivables. In association with the EnergyRight® program, TVA's 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 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 June 30, 2026, and September 30, 2025, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 11 — Other Long-Term Liabilities for information regarding the associated financing obligation.

Commodity Contract Derivative Assets. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Contract Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.
v3.26.1
Regulated Operations
 9 Months Ended
Jun. 30, 2026
Regulated Operations [Abstract]  
Schedule of 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, and other deferred decommissioning-related amounts probable of providing future economic benefit through TVA's ratemaking framework. Components of regulatory assets and regulatory liabilities are summarized in the table below.
Regulatory Assets and Liabilities
(in millions)
At June 30, 2026At September 30, 2025
Current regulatory assets
Unrealized losses on commodity contract derivatives$99 $59 
Fuel cost adjustment receivable72 — 
Unrealized losses on interest rate derivatives51 57 
Other current regulatory assets11 11 
Total current regulatory assets233 127 
Non-current regulatory assets
Non-nuclear decommissioning costs5,222 5,563 
Retirement benefit plans deferred costs1,494 1,531 
Environmental compliance and remediation costs328 308 
Unrealized losses on interest rate derivatives256 316 
Unrealized losses on commodity contract derivatives27 12 
Nuclear decommissioning costs— 149 
Other non-current regulatory assets169 168 
Total non-current regulatory assets7,496 8,047 
Total regulatory assets$7,729 $8,174 
Current regulatory liabilities
Fuel cost adjustment tax equivalents$204 $203 
Unrealized gains on commodity contract derivatives11 14 
Fuel cost adjustment payable— 11
Total current regulatory liabilities215 228 
Non-current regulatory liabilities
Nuclear decommissioning credits204 — 
Retirement benefit plans deferred credits115 131 
Unrealized gains on commodity contract derivatives2 10 
Total non-current regulatory liabilities321 141 
Total regulatory liabilities$536 $369 
Nuclear Decommissioning Costs (Credits). Nuclear decommissioning costs include (1) certain deferred charges related to the future closure and decommissioning of TVA's nuclear generating units under the NRC requirements, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's Nuclear Decommissioning Trust ("NDT"), and (4) certain other deferred charges under the accounting rules for asset retirement obligations ("AROs"). These future costs can be funded through a combination of investment funds set aside in the NDT and the Asset Retirement Trust ("ART") and future earnings on those investment funds. Deferred charges are probable of future recovery in rates based on the analysis of expected expenditures, contributions, and investment earnings required to recover the decommissioning costs. Recovery of future decommissioning costs is dependent upon the future earnings of the NDT and ART, timing of decommissioning activities, and
changes in decommissioning estimates. Nuclear decommissioning credits include changes in nuclear decommissioning related estimates, investment performance of the NDT, and other decommissioning-related amounts that reduce the expected future funding required to satisfy nuclear decommissioning obligations. TVA evaluates the net nuclear decommissioning regulatory balance each reporting period to determine whether the balance represents a regulatory asset probable of future recovery or a regulatory liability probable of providing future economic benefit to customers through TVA's ratemaking framework. This assessment considers the relationship between projected nuclear decommissioning costs, available NDT assets, expected NDT earnings, and other relevant factors affecting future funding requirements. The regulatory asset or regulatory liability is classified as long-term because the underlying decommissioning activities and related funding mechanisms are expected to extend beyond twelve months. See Note 12 — Asset Retirement Obligations and Note 15 — Fair Value Measurements. Assets held within the NDT are maintained to satisfy future nuclear decommissioning obligations and remain subject to applicable NRC requirements and restrictions. Accordingly, NDT assets in excess of current decommissioning estimates do not necessarily represent amounts that are unrestricted, currently distributable, or immediately refundable to customers.
v3.26.1
Organization, Consolidation and Presentation of Financial Statements
 9 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entity Disclosure Variable Interest Entities
A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.

John Sevier VIEs

In 2012, TVA entered into a $1.0 billion construction management agreement and lease financing arrangement with John Sevier Combined Cycle Generation LLC ("JSCCG") for the completion and lease by TVA of the John Sevier Combined Cycle Facility ("John Sevier CCF"). JSCCG is a special single-purpose limited liability company formed in January 2012 to finance the John Sevier CCF through a $900 million secured note issuance (the "JSCCG notes") and the issuance of $100 million of membership interests subject to mandatory redemption.  The membership interests were purchased by John Sevier Holdco LLC ("Holdco").  Holdco is a special single-purpose entity, also formed in January 2012, established to acquire and hold the membership interests in JSCCG.  A non-controlling interest in Holdco is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows are allocated. 
 
The membership interests held by Holdco in JSCCG were purchased with proceeds from the issuance of $100 million of secured notes (the "Holdco notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each January 15 and July 15, with a final payment due in January 2042. The payment dates for the mandatorily redeemable membership interests are the same as those of the Holdco notes. The sale of the JSCCG notes, the membership interests in JSCCG, and the Holdco notes closed in January 2012. The JSCCG notes are secured by TVA's lease payments, and the Holdco notes are secured by Holdco's investment in, and amounts receivable from, JSCCG. TVA's lease payments to JSCCG are equal to and payable on the same dates as JSCCG's and Holdco's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JSCCG and Holdco. Certain agreements related to this transaction contain default and acceleration provisions.

Due to its participation in the design, business activity, and credit and financial support of JSCCG and Holdco, TVA has determined that it has a variable interest in each of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JSCCG and Holdco and, as such, is required to account for the VIEs on a consolidated basis. Holdco's membership interests in JSCCG are eliminated in consolidation.

Southaven VIE

In 2013, TVA entered into a $400 million lease financing arrangement with Southaven Combined Cycle Generation LLC ("SCCG") for the lease by TVA of the Southaven Combined Cycle Facility ("Southaven CCF"). SCCG is a special single-purpose limited liability company formed in June 2013 to finance the Southaven CCF through a $360 million secured notes issuance (the "SCCG notes") and the issuance of $40 million of membership interests subject to mandatory redemption. The membership interests were purchased by Southaven Holdco LLC ("SHLLC"). SHLLC is a special single-purpose entity, also formed in June 2013, established to acquire and hold the membership interests in SCCG. A non-controlling interest in SHLLC is held by a third-party through nominal membership interests, to which none of the income, expenses, and cash flows of SHLLC are allocated.

The membership interests held by SHLLC were purchased with proceeds from the issuance of $40 million of secured notes (the "SHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual
payments due each February 15 and August 15, with a final payment due on August 15, 2033. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes, and the payment amounts are sufficient to provide returns on, as well as returns of, capital until the investment has been repaid to SHLLC in full. The rate of return on investment to SHLLC is seven percent, which is reflected as interest expense in the Consolidated Statements of Operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC on each lease payment date as agreed in SHLLC's formation documents (the "Seven States Return"). The current and long-term portions of the Membership interests of VIE subject to mandatory redemption are included in Accounts payable and accrued liabilities and Other long-term liabilities, respectively.

The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes. The SCCG notes are secured by TVA's lease payments, and the SHLLC notes are secured by SHLLC's investment in, and amounts receivable from, SCCG. TVA's lease payments to SCCG are payable on the same dates as SCCG's and SHLLC's semi-annual debt service payments and are equal to the sum of (i) the amount of SCCG's semi-annual debt service payments, (ii) the amount of SHLLC's semi-annual debt service payments, and (iii) the amount of the Seven States Return. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by SCCG and SHLLC. Certain agreements related to this transaction contain default and acceleration provisions.

In the event that TVA were to choose to exercise an early buy out feature of the Southaven facility lease, in part or in whole, TVA must pay to SCCG amounts sufficient for SCCG to repay or partially repay on a pro rata basis the membership interests held by SHLLC, including any outstanding investment amount plus accrued but unpaid return. TVA also has the right, at any time and without any early redemption of the other portions of the Southaven facility lease payments due to SCCG, to fully repay SHLLC's investment, upon which repayment SHLLC will transfer the membership interests to a designee of TVA.

TVA participated in the design, business activity, and financial support of SCCG and has determined that it has a direct variable interest in SCCG resulting from risk associated with the value of the Southaven CCF at the end of the lease term. Based on its analysis, TVA has determined that it is the primary beneficiary of SCCG and, as such, is required to account for the VIE on a consolidated basis.

Johnsonville VIE

In October 2024, TVA entered into an $800 million construction management agreement and lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG") for the completion and lease by TVA of the Johnsonville Facility. JACTG is a special single-purpose limited liability company formed in September 2024 to finance the Johnsonville Facility through a $720 million secured note issuance (the "JACTG notes") and the issuance of $80 million of membership interests subject to mandatory redemption. The membership interests were purchased by Johnsonville Holdco LLC ("JHLLC"). JHLLC is a special single-purpose entity, also formed in September 2024, established to acquire and hold the membership interests in JACTG. A non-controlling interest in JHLLC 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 JHLLC in JACTG were purchased with proceeds from the issuance of $80 million of secured notes (the "JHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each April 1 and October 1, with a final payment due in October 2054. The payment dates for the mandatorily redeemable membership interests are the same as those of the JHLLC notes. The sale of the JACTG notes, the membership interests in JACTG, and the JHLLC notes closed in October 2024. The JACTG notes are secured by TVA's lease payments, and the JHLLC notes are secured by JHLLC's investment in, and amounts receivable from, JACTG. TVA's lease payments to JACTG are equal to and payable on the same dates as JACTG's and JHLLC's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by JACTG and JHLLC. 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 JACTG and JHLLC, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of JACTG and JHLLC and, as such, is required to account for the VIEs on a consolidated basis. JHLLC's membership interests in JACTG are eliminated in consolidation.

Cumberland VIE

In May 2026, TVA entered into a $2.0 billion construction management agreement and lease financing arrangement with Cumberland Combined Cycle Generation LLC ("CCCGL") for the completion and lease by TVA of CUG. CCCGL is a special single-purpose limited liability company formed in February 2026 to finance CUG through a $1.8 billion secured note issuance (the "CCCGL notes") and the issuance of $200 million of membership interests subject to mandatory redemption. The membership interests were purchased by Cumberland Generation Holdco LLC ("CGHLLC"). CGHLLC is a special single-purpose entity, also formed in February 2026, established to acquire and hold the membership interests in CCCGL. A non-controlling interest in CGHLLC 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 CGHLLC in CCCGL were purchased with proceeds from the issuance of $200 million of secured notes (the "CGHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each May 15 and November 15, with a final payment due in May 2056. The payment dates for the mandatorily redeemable membership interests are the same as those of the CGHLLC notes. The sale of the CCCGL notes, the membership interests in CCCGL, and the CGHLLC notes closed in May 2026. The CCCGL notes are secured by TVA's lease payments, and the CGHLLC notes are secured by CGHLLC's investment in, and amounts receivable from, CCCGL. TVA's lease payments to CCCGL are equal to and payable on the same dates as CCCGL's and CGHLLC's semi-annual debt service payments. In addition to the lease payments, TVA pays administrative and miscellaneous expenses incurred by CCCGL and CGHLLC. 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 CCCGL and CGHLLC, TVA has determined that it has a variable interest in both of these entities. Based on its analysis, TVA has concluded that it is the primary beneficiary of CCCGL and CGHLLC and, as such, is required to account for the VIEs on a consolidated basis. CGHLLC's membership interests in CCCGL are eliminated in consolidation.

Approximately $1.9 billion of the proceeds from the secured notes issuances was paid to TVA in accordance with the terms of the head lease and the construction management agreement. Approximately $68 million was deposited with a lease indenture trustee to fund the payments due on November 15, 2026, in connection with the CCCGL notes and CGHLLC's membership interests in CCCGL. The deposit is reflected as Restricted cash of variable interest entity on the Consolidated Balance Sheets. TVA intends to use the proceeds from the transaction to meet its requirements under the Tennessee Valley Authority Act of 1933, as amended ("TVA Act").

Impact on Consolidated Financial Statements

The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, JHLLC, CCCGL, and CGHLLC at June 30, 2026, and September 30, 2025, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
(in millions)
At June 30, 2026At September 30, 2025
Current assets
Restricted cash of variable interest entity$68 $— 
Total assets$68 $— 
Current liabilities
Accrued interest$41 $29 
Accounts payable and accrued liabilities1 1 
Current maturities of long-term debt of variable interest entities75 49 
Total current liabilities
117 79 
Other liabilities
Other long-term liabilities14 14 
Long-term debt, net
Long-term debt of variable interest entities, net3,551 1,632 
Total liabilities$3,682 $1,725 

Interest expense of $32 million and $21 million for the three months ended June 30, 2026 and 2025, respectively, and $74 million and $64 million for the nine months ended June 30, 2026 and 2025, respectively, is included in the Consolidated Statements of Operations related to debt of VIEs and membership interests of VIEs subject to mandatory redemption.

Creditors of the VIEs do not have any recourse to the general credit of TVA. TVA does not have any obligations to provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions.
v3.26.1
Other Liabilities
 9 Months Ended
Jun. 30, 2026
Other Liabilities Disclosure [Abstract]  
Other Liabilities Disclosure Other Long-Term Liabilities
Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as liabilities related to environmental compliance and remediation and long-term project cost accruals. The table below summarizes the types and amounts of Other long-term liabilities:
Other Long-Term Liabilities
(in millions)
At June 30, 2026At September 30, 2025
Interest rate swap liabilities$540 $643 
Environmental compliance and remediation costs312 274 
Long-term project cost accruals130 204 
Currency swap liabilities101 108 
Advances for construction67 61 
EnergyRight® financing obligation
53 53 
Operating lease liabilities42 63 
Long-term deferred compensation41 54 
Long-term deferred revenue 40 39 
Commodity contract derivative liabilities27 12 
Accrued long-term service agreements14 25 
Other69 70 
Total other long-term liabilities$1,436 $1,606 

Interest Rate Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment — Derivatives Not Receiving Hedge Accounting Treatment and — Interest Rate Derivatives for information regarding the interest rate swap liabilities.

Environmental Compliance and Remediation Costs. At June 30, 2026, and September 30, 2025, the current amount of the environmental compliance and remediation costs reported in Accounts payable and accrued liabilities was $37 million and $52 million, respectively.

Long-Term Project Cost Accruals. At June 30, 2026, and September 30, 2025, the current amount of the long-term project cost accruals reported in Accounts payable and accrued liabilities was $248 million and $256 million, respectively.
Currency Swap Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Overview of Accounting Treatment and — Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities.
    
Advances for Construction. At June 30, 2026, and September 30, 2025, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $123 million and $155 million, respectively.

EnergyRight® Financing Obligation. At both June 30, 2026, and September 30, 2025, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $13 million. See Note 8 — Other Long-Term Assets for information regarding the associated loans receivable.

Operating Lease Liabilities. At June 30, 2026, and September 30, 2025, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $36 million and $46 million, respectively.

Long-Term Deferred Compensation. At June 30, 2026, and September 30, 2025, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $80 million and $70 million, respectively.

Long-Term Deferred Revenue. At June 30, 2026, and September 30, 2025, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $41 million and $25 million, respectively.

Commodity Contract Derivative Liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Contract Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

Accrued Long-Term Service Agreements. At June 30, 2026, and September 30, 2025, the current amount of accrued long-term service agreements recorded in Accounts payable and accrued liabilities was $33 million and $17 million, respectively.
v3.26.1
Asset Retirement Obligations
 9 Months Ended
Jun. 30, 2026
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Disclosure Asset Retirement Obligations
During the nine months ended June 30, 2026, TVA's total ARO liability decreased $879 million as a result of revisions in estimates to nuclear and non-nuclear AROs and settlements related to retirement projects that were conducted during the period,
partially offset by increases due to periodic accretion. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During the nine months ended June 30, 2026, $165 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 9 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 15 — Fair Value Measurements — Investment Funds and Note 21 — Commitments and Contingencies — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.
Asset Retirement Obligation Activity
(in millions)
NuclearNon-NuclearTotal
Balance at September 30, 2025
$3,976 $6,438 $10,414 (1)
Settlements(8)(188)(196)
Revisions in estimate (non-cash)(738)(252)(990)
Accretion (recorded as regulatory asset)121 186 307 
Balance at June 30, 2026$3,351 $6,184 $9,535 (1)
Note
(1) Includes $313 million at both June 30, 2026, and September 30, 2025, in Current liabilities.

Revisions in nuclear estimates decreased the liability balance by $738 million for the nine months ended June 30, 2026. The decrease resulted primarily from the approval of an SLR for Browns Ferry by the NRC in December 2025. The SLR authorizes each of Browns Ferry's three units to operate for an additional 20 years, resulting in a total operating life of 80 years.

Revisions in non-nuclear estimates reduced the liability balance by $252 million for the nine months ended June 30, 2026. The decrease was attributable to revisions related to the Legacy Coal Combustion Residuals Rule ("Legacy CCR Rule") that impacted closure liabilities across TVA's fossil fleet and changes in projections for the timing of certain asset retirement activities at KIF, CUF, and the Gallatin Coal-Fired Plant.

On February 10, 2026, the Environmental Protection Agency ("EPA") published a final rule that extended key compliance deadlines within federal regulations for the disposal of coal combustion residuals ("CCR"). The final rule, entitled Hazardous and Solid Waste Management System: Disposal of Coal Combustion Residuals from Electric Utilities; CCR Management Unit Deadline Extension Rule, provides additional time to meet facility evaluation requirements and associated groundwater monitoring provisions and compliance deadlines for existing and potential CCR units. TVA recorded a decrease of $146 million to the ARO liability as a result of the enactment of the final rule.
During the second quarter of 2026, TVA performed an assessment of the assumptions used in the timing of cash flows related to AROs at the Kingston and Cumberland sites and recorded a decrease of $65 million based on the assessment. Additionally, TVA recorded a decrease of $44 million related to updates in the projected timing of closure activities at the Gallatin Coal-Fired Plant.
v3.26.1
Debt
 9 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt Disclosure Debt and Other Obligations
Debt Outstanding

Total debt outstanding at June 30, 2026, and September 30, 2025, consisted of the following:
Debt Outstanding 
(in millions)
At June 30, 2026At September 30, 2025
Short-term debt
Short-term debt, net of discounts$500 $— 
Current maturities of power bonds issued at par1,020 1,370 
Current maturities of long-term debt of VIEs issued at par
75 49 
Total current debt outstanding, net1,595 1,419 
Long-term debt
Long-term power bonds(1)
19,599 20,628 
Long-term debt of VIEs, net
3,551 1,632 
Unamortized discounts, premiums, issue costs, and other(156)(167)
Total long-term debt, net22,994 22,093 
Total debt outstanding$24,589 $23,512 
Note
(1) Includes total net exchange gain from currency transactions of $66 million and $59 million at June 30, 2026, and September 30, 2025, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2025, to June 30, 2026:
Debt Securities Activity
Date
Amount
(in millions)
Issues
Debt of variable interest entitiesMay 2026$2,000 
Total long-term debt issues$2,000 
Redemptions/Maturities(1) (2)
1995 E GlobalNovember 2025$1,350 
2009 Series BJune 202620 
Total redemptions/maturities of power bonds1,370 
Debt of variable interest entities29 
Total redemptions/maturities of debt$1,399 
Notes
(1) All redemptions were at 100 percent of par.
(2) The 2009 Series B redemption amount was less than $1 million in December 2025 and therefore was not represented in the table above.

Credit Facility Agreements

TVA has funding available under three revolving credit facilities totaling $2.5 billion. See the table below for additional information on the three revolving credit facilities. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.5 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 June 30, 2026, and September 30, 2025, there were $435 million and $498 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps. See Note 14 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral. TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging Program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit.

The following table provides additional information regarding TVA's funding available under the three revolving credit facilities:
Summary of Credit Facilities
At June 30, 2026
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
March 2027(1)
$1,000 $136 $— $864 
February 2028500 214 — 286 
September 20301,000 85 — 915 
Total$2,500 $435 $— $2,065 
Note
(1) In July 2026, TVA extended the maturity date from March 25, 2027 to July 10, 2031.

TVA and the United States ("U.S.") Department of the Treasury ("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 2026 with a maturity date of September 30, 2026. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less. There were no outstanding borrowings under the facility at June 30, 2026. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.
v3.26.1
Derivative Instruments and Hedging Activities
 9 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure Risk Management Activities and Derivative Transactions
TVA is exposed to various risks related to commodity prices, investment prices, interest rates, currency exchange rates, and inflation as well as counterparty credit and performance risks.  To help manage certain of these risks, TVA has historically entered into various derivative transactions, principally commodity option contracts, forward contracts, swaps, swaptions, futures, and options on futures.   

Overview of Accounting Treatment

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

The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
(in millions)
Three Months Ended June 30Nine Months Ended June 30
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		2026202520262025
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 Accumulated other comprehensive income (loss) ("AOCI") and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction
$17 $47 $8 $24 


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 June 30Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship2026202520262025
Currency swaps$7 $38 $(5)$15 
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 $14 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 June 30Nine Months Ended June 30
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument2026202520262025
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
$(14)$(11)$(41)$(33)
Commodity derivatives
under the FHP
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)
(45)(13)(39)(64)
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 and nine months ended June 30, 2026 and for the three and nine months ended June 30, 2025.
(2) Of the amount recognized for the three months ended June 30, 2026, $(38) million and $(7) million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2025, $(3) million and $(10) million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2026, $(31) million and $(8) million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2025, $(12) million and $(52) million were reported in Fuel expense and Purchased power expense, respectively.
Fair Values of TVA Derivatives
(in millions)
At June 30, 2026At September 30, 2025
Derivatives That Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps
£250 million Sterling
$(43)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(39)
$(47)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(43)
£150 million Sterling
(65)
Accounts payable and accrued liabilities $(3); Other long-term liabilities $(62)
(68)
Accounts payable and
accrued liabilities $(3); Other long-term liabilities $(65)
Derivatives That Do Not Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps
$1.0 billion notional$(450)
Accounts payable and
accrued liabilities $(30); Accrued interest $(9);
Other long-term liabilities
$(411)
$(526)
Accounts payable and accrued liabilities $(13); Accrued interest $(28);
Other long-term liabilities $(485)
$476 million notional(142)
Accounts payable and
accrued liabilities $(12); Accrued interest $(1);
Other long-term liabilities
$(129)
(172)
Accounts payable and accrued liabilities $(5); Accrued interest $(9);
Other long-term liabilities
$(158)
Commodity contract derivatives6 
Other current assets $11; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(4)
10 
Other current assets $14; Other long-term assets $2; Accounts payable and accrued liabilities $(2); Other long-term liabilities $(4)
Commodity derivatives under the FHP
(119)
Accounts payable and accrued liabilities $(96); Other long-term liabilities $(23)
(57)
Other long-term assets $8; Accounts payable and accrued liabilities $(57); Other long-term 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 June 30, 2026, 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 June 30, 2026 and 2025, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $26 million and $6 million, respectively. For the nine months ended June 30, 2026 and 2025, the changes in fair market value of the interest rate swaps resulted in the reduction in unrealized losses of $78 million and $141 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 Contract Derivatives. TVA enters into certain commodity contract derivatives for natural gas that require physical delivery of the contracted quantity. TVA marks to market these contracts and defers the unrealized gains (losses) as regulatory liabilities (assets). At June 30, 2026, TVA's natural gas commodity contract derivatives had terms of up to nine years.
Commodity Contract Derivatives 
At June 30, 2026At September 30, 2025
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives39 592 Million MMBTu $6 53562 million mmBtu$10 

Commodity Derivatives under the FHP. Currently, TVA is hedging exposure to the price of natural gas under the FHP. There is no Value at Risk aggregate transaction limit under the current FHP structure, but the TVA Board reviews and authorizes the use of tolerances and measures annually. TVA's FHP policy prohibits trading financial instruments under the FHP for speculative purposes. At June 30, 2026, 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 June 30, 2026At September 30, 2025
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Natural gas swap contracts285390 Million MMBTu$(119)295300 million mmBtu$(57)
Note
(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.

TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity.
Offsetting of Derivative Assets and Liabilities

The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:
Derivative Assets and Liabilities(1)
(in millions)
At June 30, 2026At September 30, 2025
Assets
Commodity contract derivatives$13 $16 
Commodity derivatives under the FHP(2)
— 8 
Total derivatives subject to master netting or similar arrangement$13 $24 
Liabilities
Currency swaps$108 $115 
Interest rate swaps(3)
592 698 
Commodity contract derivatives 7 6 
Commodity derivatives under the FHP(2)
119 65 
Total derivatives subject to master netting or similar arrangement$826 $884 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no material offsetting amounts on TVA's Consolidated Balance Sheets at either June 30, 2026, or September 30, 2025.
(2) At June 30, 2026, the gross derivative asset and gross derivative liability were $35 million and $154 million, respectively, with offsetting amounts for each totaling $35 million. At September 30, 2025, the gross derivative asset and gross derivative liability were $28 million and $85 million, respectively, with offsetting amounts for each totaling $20 million.
(3) Letters of credit of $368 million and $442 million were posted as collateral at June 30, 2026, and September 30, 2025, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.

Other Derivative Instruments

Investment Fund Derivatives.  Investment funds consist primarily of funds held in the NDT, the ART, the Supplemental Executive Retirement Plan ("SERP"), the Deferred Compensation Plan ("DCP"), and the Restoration Plan ("RP"). See Note 15 — 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 June 30, 2026, and September 30, 2025, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $11 million and $16 million at June 30, 2026, and September 30, 2025, 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 June 30, 2026, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $826 million.  TVA's collateral obligations at June 30, 2026, under these arrangements were $381 million, for which TVA had posted $368 million in letters of credit. These letters of credit reduce the available balance under the related credit facilities.  TVA's assessment of the risk of its nonperformance includes a reduction in its exposure under the interest rate swap contracts as a result of this posted collateral.

For all of its derivative instruments with credit-risk related contingent features:
    
•If TVA remains a majority-owned U.S. government entity but S&P Global Ratings ("S&P") or Moody's Investors Service, Inc. ("Moody's") downgrades TVA's credit rating to AA or Aa2, respectively, TVA's collateral obligations would likely increase by $22 million, and

•If TVA ceases to be majority-owned by the U.S. government, TVA's credit rating would likely be downgraded and TVA would be required to post additional collateral.

Counterparty Risk

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

Customers.  TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $2.0 billion of customer receivables outstanding at both June 30, 2026, and September 30, 2025, nearly all of the counterparties were rated investment grade. The majority of 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 4 — Accounts Receivable, Net, and Note 8 — Other Long-Term Assets.

TVA had revenue from two LPCs that collectively accounted for 16 percent of total operating revenues for both the nine months ended June 30, 2026 and the nine months ended June 30, 2025.

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

TVA continues to experience supply chain pressures resulting from inflation, tariffs and other trade restrictions, material constraints, and labor availability. These factors have contributed to project delays, limited availability of critical materials, and increased costs for both materials and labor. Although these challenges have been managed with limited disruption to business operations thus far, continued or escalating pressures could result in more substantial operational impacts and increased pressure on power rates.

Natural Gas and Fuel Oil. TVA purchases a significant amount of its natural gas requirements through contracts with a variety of suppliers and purchases substantially all of its fuel oil requirements on the spot market. TVA delivers to its gas fleet under firm and non-firm transportation contracts on multiple interstate natural gas pipelines. TVA contracts for storage capacity that allows for operational flexibility and increased supply during peak gas demand scenarios or supply disruptions. TVA uses 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 CT sites in the event of major supply disruptions. In the event a supplier experiences an incident that limits its ability to fulfill its firm contractual obligations to supply TVA with natural gas, TVA intends to leverage its storage and balancing services and/or replace the volume with a third party to ensure reliability of generation.

Coal. To help support a reliable coal supply, TVA maintained contracts with multiple suppliers as of June 30, 2026. These contracts source coal from several diverse geographic regions across the U.S., with deliveries made via both barge and rail. Coal suppliers have faced mounting financial pressures driven by emerging technologies, evolving regulatory frameworks, and shifting market dynamics. These challenges have strained the balance between coal demand and available supply. TVA continues to evaluate regulatory developments that may impact its coal procurement strategy and long-term generation planning.

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.

Purchased Power. TVA acquires power from a variety of power producers through long-term and shorter-term power purchase agreements ("PPAs") as well as through spot market purchases. Because of the reliability risk of purchased power, TVA generally requires that the PPAs contain certain counterparty performance assurance requirements to help insure counterparty performance during the term of the agreements.

Other Suppliers. Solar supply chain constraints, commodity price increases, legislative changes, trade policy issues, and investigations into and affecting solar panel imports have created challenges for the U.S. solar industry including TVA's solar portfolio.
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 June 30, 2026, 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. At June 30, 2026, the forward natural gas contracts were with counterparties whose ratings ranged from B1 to A1.
v3.26.1
Fair Value Measures and Disclosures
 9 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Disclosures Fair Value Measurements
Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs.

Valuation Techniques

The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:
Level 1—
Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2
—
Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3—
Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.

A financial instrument's level within the fair value hierarchy (where Level 1 is the highest and Level 3 is the lowest) is based on the lowest level of input significant to the fair value measurement.

The following sections describe the valuation methodologies TVA uses to measure different financial instruments at fair value. Except for gains and losses on SERP, DCP, and RP assets, all changes in fair value of these assets and liabilities have been recorded as changes in regulatory assets, regulatory liabilities, or AOCI on TVA's Consolidated Balance Sheets and Consolidated Statements of Comprehensive Income (Loss). Except for gains and losses on SERP and DCP assets, there has been no impact to the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows related to these fair value measurements.

Investment Funds

At June 30, 2026, Investment funds were comprised of $6.2 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, DCP, and RP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $4.2 billion and $1.9 billion, respectively, at June 30, 2026.

TVA established a SERP to provide benefits to selected employees of TVA which are comparable to those provided by competing organizations. The DCP is designed to provide participants with the ability to defer compensation to future periods. The RP is a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by Internal Revenue Service rules to save additional amounts for retirement and receive non-elective and matching
employer contributions. The NDT, ART, SERP, DCP, and RP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance.

The NDT, ART, SERP, DCP, and RP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities, and real estate investment trust 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. Cash equivalents and other short-term investments are highly liquid securities with maturities of less than three months and 12 months, respectively. These consist primarily of discount securities such as repurchase agreements and U.S. Treasury bills. These securities may be priced at cost, which approximates fair value due to the short-term nature of the instruments. These securities are classified as Level 2. Active market pricing may be utilized for U.S. Treasury bills, which are classified as Level 1.

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 $446 million, private real assets of $143 million, and private credit of $154 million at June 30, 2026. The ART had unfunded commitments related to limited partnerships in private equity of $189 million, private real assets of $87 million, and private credit of $77 million at June 30, 2026. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. TVA's private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset values ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.

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

Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in the Annual Report and Note 9 — Regulatory Assets and Liabilities. TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)(1)
(in millions)
Three Months Ended June 30
 Nine Months Ended June 30
FundFinancial Statement Presentation2026202520262025
NDT
Regulatory assets or liabilities(2)
$231 $200 $239 $133 
ART
Regulatory assets(3)
124 97 127 69 
SERP
Other income (expense), net7 5 4 (1)
DCP
Other income (expense), net2 2 1 — 
Notes
(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2026 and the three and nine months ended June 30, 2025, and therefore were not represented in the table above.
(2) Includes $61 million and $41 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2026 and 2025, respectively. Includes $57 million of unrealized gains and $12 million of unrealized losses related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2026 and 2025, respectively. The financial statement presentation was a regulatory liability at June 30, 2026, and a regulatory asset at September 30, 2025. See Note 9 - Regulatory Assets and Liabilities for additional information.
(3) Includes $19 million and $10 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2026 and 2025, respectively. Includes $21 million of unrealized gains and $5 million of unrealized losses related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2026 and 2025, respectively.
Currency and Interest Rate Swap Derivatives

See Note 14 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps and — Derivatives Not Receiving Hedge Accounting Treatment for a discussion of the nature, purpose, and contingent features of TVA's currency swaps and interest rate swaps. These swaps are classified as Level 2 valuations and are valued based on income approaches using observable market inputs for similar instruments.

Commodity Contract Derivatives and Commodity Derivatives under the FHP

Commodity Contract Derivatives. Most of these derivative contracts are valued based on market approaches, which utilize short-term and mid-term market-quoted prices from an external industry brokerage service. These contracts are classified as Level 2 valuations.

Commodity Derivatives under the FHP. Swap contracts are valued using a pricing model based on New York Mercantile Exchange inputs and are subject to nonperformance risk outside of the exit price. These contracts are classified as Level 2 valuations.

See Note 14 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Contract 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 2025) 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 less than $1 million decrease in the fair value of assets and a $2 million decrease in the fair value of liabilities at June 30, 2026.
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 June 30, 2026, and September 30, 2025. 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 June 30, 2026
(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$994 $— $— $994 
Government debt securities(1)(2)
547 65 — 612 
Corporate debt securities(3)
— 449 — 449 
Mortgage and asset-backed securities— 46 — 46 
Institutional mutual funds
403 — — 403 
Forward debt securities contracts— 11 — 11 
Cash equivalents and other short-term investments(2)(4)
85 255 — 340 
Private equity funds measured at net asset value(5)
— — — 1,037 
Private real asset funds measured at net asset value(5)
— — — 500 
Private credit funds measured at net asset value(5)
— — — 301 
Commingled funds measured at net asset value(5)
— — — 1,552 
Total investments2,029 826 — 6,245 
Commodity contract derivatives— 13 — 13 
Total$2,029 $839 $— $6,258 
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(6)
$— $108 $— $108 
Interest rate swaps— 592 — 592 
Commodity contract derivatives— 7 — 7 
Commodity derivatives under the FHP
— 119 — 119 
Total$— $826 $— $826 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $547 million of U.S. Treasury securities in Level 1 Government debt securities and $85 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $632 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $76 million of net receivables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $55 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2025
(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$844 $— $— $844 
Government debt securities(1)(2)
423 50 — 473 
Corporate debt securities(3)
— 411 — 411 
Mortgage and asset-backed securities— 40 — 40 
Institutional mutual funds
367 — — 367 
Forward debt securities contracts
— 16 — 16 
Cash equivalents and other short-term investments(2)(4)
111 163 — 274 
Private equity funds measured at net asset value(5)
— — — 875 
Private real asset funds measured at net asset value(5)
— — — 467 
Private credit funds measured at net asset value(5)
— — — 278 
Commingled funds measured at net asset value(5)
— — — 1,528 
Total investments1,745 680 — 5,573 
Commodity contract derivatives— 16 — 16 
Commodity derivatives under the FHP
— 8 — 8 
Total$1,745 $704 $— $5,597 
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(6)
$— $115 $— $115 
Interest rate swaps— 698 — 698 
Commodity contract derivatives— 6 — 6 
Commodity derivatives under the FHP
— 65 — 65 
Total$— $884 $— $884 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $423 million of U.S. Treasury securities in Level 1 Government debt securities and $111 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $534 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $60 million of net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $124 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — 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 June 30, 2026, and September 30, 2025, 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 June 30, 2026, and September 30, 2025, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
At June 30, 2026At September 30, 2025
Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$57 $58 $57 $57 
Loans and other long-term receivables, net (including current portion)Level 2114 108 86 80 
EnergyRight® financing obligations (including current portion)
Level 266 72 66 74 
Membership interests of VIEs subject to mandatory redemption (including current portion)
Level 215 16 16 18 
Long-term outstanding power bonds, net (including current maturities)Level 220,463 20,292 21,831 21,967 
Long-term debt of VIEs, net (including current maturities)
Level 23,626 3,704 1,681 1,696 

The carrying values 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.
v3.26.1
Other Income and Expenses
 9 Months Ended
Jun. 30, 2026
Other Income and Expenses [Abstract]  
Other Income and Other Expense Disclosure 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 June 30Nine Months Ended June 30
2026202520262025
Interest income$10 $10 $32 $31 
External services8 8 18 22 
Gains on investments12 10 14 8 
Miscellaneous4 1 25 (3)
Total other income, net$34 $29 $89 $58 
Other income, net increased $31 million for the nine months ended June 30, 2026, as compared to the same period of the prior year driven by a $28 million gain related to insurance proceeds received for the Sequoyah Nuclear Plant Unit 2 main generator failure.
v3.26.1
Compensation Related Costs, Retirement Benefits
 9 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Retirement Benefits Benefit Plans
TVA sponsors a pension plan that covers most of its full-time employees hired before July 1, 2014, a qualified defined contribution plan ("401(k) plan") that covers most of its full-time employees, two unfunded post-retirement health care plans that provide for non-vested contributions toward the cost of eligible retirees' medical coverage, other post-employment benefits, such as workers' compensation, the SERP, and the RP. The pension plan and the 401(k) plan are administered by a separate legal entity, the TVA Retirement System ("TVARS"), which is governed by its own board of directors.

The components of net periodic benefit cost for the three and nine months ended June 30, 2026 and 2025, were as follows:
Components of Net Periodic Benefit Cost(1)
(in millions)
For the Three Months Ended June 30
For the Nine Months Ended June 30
Pension BenefitsOther Post-Retirement BenefitsPension BenefitsOther Post-Retirement Benefits
20262025202620252026202520262025
Service cost$5 $8 $3 $3 $17 $24 $7 $9 
Interest cost136 131 4 3 408 394 12 12 
Expected return on plan assets(124)(126)— — (371)(379)— — 
Amortization of prior service credit(22)(22)(4)(4)(67)(67)(13)(13)
Recognized net actuarial loss (gain)34 44 (2)— 103 131 (4)— 
Total net periodic benefit cost as actuarially determined29 35 1 2 90 103 2 8 
Special/contractual termination benefits(2)
— — — 1 — — — 1 
Total net periodic benefit cost$29 $35 $1 $3 $90 $103 $2 $9 
Note
(1) The components of Total net periodic benefit cost other than Service cost are included in Other net periodic benefit cost on the Consolidated Statements of Operations.
(2) Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.
TVA's minimum required pension plan contribution for 2026 is $300 million. TVA contributes $25 million per month to TVARS and as of June 30, 2026, had contributed $225 million. The remaining $75 million will be contributed by September 30, 2026. For the nine months ended June 30, 2026, TVA also contributed $17 million (net of $5 million in rebates) to the other post-retirement plans and $11 million to the SERP. In addition, TVA recognized 401(k) contribution costs of $96 million for the nine months ended June 30, 2026.
v3.26.1
Research and Development
 9 Months Ended
Jun. 30, 2026
Research and Development [Abstract]  
Collaborative Arrangement Disclosure . Collaborative Arrangement
In 2023, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Vernova Hitachi Nuclear Energy ("GVH") entered into a multi-party collaborative arrangement to advance the global deployment of the GVH BWRX-300 small modular reactor. GVH is responsible for standard design development. Under the agreement, TVA will contribute up to $93 million for design costs incurred by GVH through 2026. At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits.

Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statements of Operations in the period incurred. TVA recorded no expenses related to this agreement for both the three months ended June 30, 2026, and the three months ended June 30, 2025. TVA recorded $2 million and $10 million of expenses related to this agreement for the nine months ended June 30, 2026 and 2025, respectively. TVA also had a $6 million letter of credit posted under this arrangement at June 30, 2026.
v3.26.1
Commitment and Contingencies
 9 Months Ended
Jun. 30, 2026
Commitments and Contingencies Disclosure [Abstract]  
Legal Matters and Contingencies Commitments and Contingencies
Commitments

Lease Commitments. During the nine months ended June 30, 2026, TVA signed two battery energy storage system agreements which are expected to commence by the summer of 2029. The terms of the agreements are 20 years and capacity payments over the terms of the agreements are expected to total over $1.3 billion. Both agreements include a lease component.

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 $500 million for each nuclear power plant licensed to operate. If this amount is not sufficient to cover claims arising from a nuclear incident, the second level, Secondary Financial Protection, applies. Within the Secondary Financial Protection level, the licensee of each nuclear reactor has a contingent obligation to pay a retrospective premium, equal to its proportionate share of the loss in excess of the primary level, regardless of proximity to the incident of fault, up to a maximum of approximately $166 million per reactor per incident. With TVA's seven reactors, the maximum total contingent obligation per incident is $1.2 billion. This retrospective premium is payable at a maximum rate currently set at approximately $25 million per year per nuclear incident per reactor. Currently, 95 reactors are participating in the Secondary Financial Protection program.

In the event that a nuclear incident results in public liability claims, the primary level provided by American Nuclear Insurers combined with the Secondary Financial Protection should provide up to $16.3 billion in coverage.

Federal law requires that each NRC power reactor licensee obtain property insurance from private sources to cover the cost of stabilizing and decontaminating a reactor and its station site after an accident. TVA carries property, decommissioning liability, and decontamination liability insurance from Nuclear Electric Insurance Limited ("NEIL") and European Mutual Association for Nuclear Insurance. The limits available for a loss are up to $2.1 billion for each of TVA's three nuclear sites. Some of this insurance may require the payment of retrospective premiums up to a maximum of approximately $116 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 $52 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 12 — Asset Retirement Obligations.

Nuclear Decommissioning.  Provision for decommissioning costs of nuclear generating units is based on options authorized by the NRC procedures to dismantle and decontaminate the facilities to meet the NRC criteria for license termination. At June 30, 2026, $3.4 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 15 — 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 2035 - 2056, depending on the unit.  In December 2025, TVA extended the operating life of three units at Browns Ferry. It may also be possible to extend the operating life of other nuclear units with approval from the NRC. See Note 9 — Regulatory Assets and Liabilities and Note 12 — Asset Retirement Obligations.

Non-nuclear Decommissioning.  At June 30, 2026, $6.2 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 15 — 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 9 — Regulatory Assets and Liabilities and Note 12 — 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 evolve.

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.  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 drive up costs associated with, and delay or prevent permitting of, new fossil fuel facilities and related infrastructure in favor of renewable energy projects.

Compliance with the EPA 2015 CCR Rule, as revised ("2015 CCR Rule") requires implementation of a groundwater monitoring program, additional engineering, evaluation of authorized closure methods, coordination with certain state authorities, and ongoing monitoring and analysis at each TVA CCR unit. As further analyses are performed, including evaluation of monitoring results, there is the potential for additional costs for investigation, closure, and/or remediation. In addition, on May 8, 2024, EPA published its Legacy CCR Rule, which expanded the scope of the existing regulatory requirements of the 2015 CCR Rule to include two additional classes of CCR units: Legacy Surface Impoundments and Coal Combustion Residuals Management Units. As a result of the enactment of the final rule, during 2024, TVA recorded additional estimated AROs and recorded a corresponding regulatory asset due to AROs being associated with closed sites and asset retirement costs having been fully depreciated. However, the amounts recorded are subject to various uncertainties, and actual amounts may differ materially based upon a number of factors, including, but not limited to, the outcome of legal challenges to the Legacy CCR Rule, ongoing evaluations of the number and scope of newly regulated units, determinations on final closure requirements and performance standards, and possible changes to the Legacy CCR Rule by EPA. See Note 12 — Asset Retirement Obligations.

In May 2024, EPA also published (1) a final rule that establishes more stringent technology-based effluent limitations for four wastewater streams from coal-fired plants, (2) a rule that strengthens and updates the Mercury and Air Toxics Standards for electric generating units to reflect recent developments in control technologies, and (3) a rule that establishes GHG emission guidelines for existing coal-fired plants and GHG performance standards for new natural gas-fired power plants. These rules are
all currently being reconsidered by EPA and are also all subject to legal challenges. If these rules move forward as written and the challenges are not successful, TVA would incur substantial costs to comply with the rules.

On March 12, 2025, the EPA Administrator announced that EPA will reconsider 31 rules, including (1) regulations on power plants, (2) Mercury and Air Toxics Standards, (3) steam electric effluent limitation guidelines (“ELG”), (4) National Ambient Air Quality Standards for particulate matter, (5) regulations regarding regional haze, (6) the Good Neighbor Plan, and (7) CCR regulations.

On December 31, 2025, EPA published a final ELG deadline extensions rule that extends certain compliance deadlines in the 2024 ELG rule and provides authority to state permitting authorities to extend other compliance deadlines in the 2020 and 2024 ELG rules. This rule provides TVA with greater flexibility with its coal-fired plants to meet future generation and reliability requirements.

On February 10, 2026, EPA published a final rule that extended key compliance deadlines for the Legacy CCR Rule. TVA recorded a decrease of $146 million to the ARO liability as a result of the enactment of the final rule.

On February 24, 2026, EPA published the repeal of the 2024 MATS Rule, and TVA is currently evaluating how the repeal of this rule will impact its operations.

On April 13, 2026, EPA issued a proposed rule that would revise existing federal CCR regulations. Specifically, EPA proposed, among other things, changes to the regulations that could authorize permitting authorities to approve alternative closure standards, timelines, methods, and points of compliance.

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 June 30, 2026, and September 30, 2025, 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 $2 million and $8 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.

In August 2015, the Tennessee Department of Environment and Conservation ("TDEC") issued an order that includes an iterative process through which TVA and TDEC will identify and evaluate any CCR contamination risks and, if necessary, respond to such risks. TVA is also following a similar process pursuant to a consent order. At June 30, 2026, and September 30, 2025, TVA's estimated liability for costs associated with environmental remediation activities for the sites covered by these orders for which sufficient information is available to develop a cost estimate was approximately $347 million and $319 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. The current estimated time frame for work related to these remediation activities for which TVA has a cost estimate is through 2045.

Legal Proceedings

From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting TVA's activities. There have been no material changes to the Legal Proceedings described in Note 23 — Commitments and Contingencies — Legal Proceedings of the Annual Report, except as described below.

Case Involving Kingston Gas-Fired Plant. On October 10, 2024, Appalachian Voices, the Center for Biological Diversity,
and the Sierra Club filed a lawsuit in the United States District Court for the Eastern District of Tennessee alleging that TVA
violated the National Environmental Policy Act ("NEPA") and TVA’s least-cost planning obligations in deciding to build a gas plant at its Kingston site. On November 13, 2025, the court ordered TVA to supplement the administrative record, and TVA has provided the supplemental information to the plaintiffs in accordance with the court's order. On January 23, 2026, the plaintiffs filed a motion for summary judgment, and on March 9, 2026, TVA filed its cross motion for summary judgment. On April 24, 2026, briefing on the parties' motions for summary judgment was complete, and the motions are with the court for a decision. In addition, on February 23, 2026, TVA filed a motion to stay the case or hold it in abeyance, and the court denied this motion on April 6, 2026. On June 25, 2026, the court ordered supplemental briefing on whether the NEPA statute prevents irreversible and irretrievable commitments of resources to a project before completion of an environmental impact statement, and the parties completed their briefing on July 8, 2026. TVA cannot predict the outcome of this litigation. See Note 7 — Plant Closures for a discussion of the status of the coal units at KIF.
Challenge to Kingston Construction Permit. On December 16, 2024, the Southern Environmental Law Center filed an
appeal on behalf of Appalachian Voices challenging the construction permit that the Technical Secretary acting on behalf of the Tennessee Air Pollution Control Board ("Air Board") issued to TVA on November 15, 2024, for the construction of natural gas generation at Kingston. On August 20, 2025, the administrative law judge issued an order upholding the construction permit and denying Appalachian Voices' petition challenging the permit. Appalachian Voices did not appeal the initial order to the Air Board by the deadline of September 19, 2025, so the order became final. On November 18, 2025, Appalachian Voices filed a petition for judicial review of the final order in the Chancery Court of Davidson County, Tennessee, naming the Air Board, TDEC, and TVA as the respondents. TVA removed the matter to the U.S. District Court for the Middle District of Tennessee (“Middle District of Tennessee”) on December 18, 2025. Initially, Appalachian Voices moved to remand the case back to state court, but on April 15, 2026, Appalachian Voices replaced that motion with a motion (1) to temporarily remand the matter to the Air Board so that additional evidence of the TVA Board's February 2026 CUF and KIF authorization could be presented to the Air Board and (2) to suspend the construction permit pending the presentation of the additional evidence to the Air Board. On April 29, 2026, TVA filed a response in opposition to this motion. At the direction of the court, the parties have begun mediation efforts to resolve the case. TVA cannot predict the outcome of this litigation.

Case Involving Cumberland Combined Cycle Plant. On June 14, 2023, Appalachian Voices, the Center for Biological Diversity, and the Sierra Club filed a lawsuit in the Middle District of Tennessee alleging that TVA violated NEPA in deciding to build a 1,450 MW combined cycle plant at its Cumberland site. On April 17, 2026, the parties agreed to dismiss the case, and on April 20, 2026, the court approved the dismissal and closed the case.

Notice of Intent to Sue for Alleged Violations of Clean Air Act at Cumberland. On June 25, 2026, Appalachian Voices, the Center for Biological Diversity, and the Sierra Club sent a Notice of Intent to Sue TVA alleging TVA constructed and is operating CUG in violation of the Clean Air Act (“CAA”). Specifically, these groups allege the following violations: (1) violation of the CAA and the Tennessee State Implementation Plan (“SIP”) by constructing CUG before obtaining a Prevention of Significant Deterioration (“PSD”) permit; (2) violation of the Tennessee SIP by operating CUG without applying Best Available Control Technology beginning on or about April 21, 2026; (3) violation of the CAA and Tennessee SIP by constructing modifications to CUF that are allegedly part of the same project as construction of CUG without an appropriate permit covering the net emissions increase from the modified units; and (4) violation of TVA’s Title V permit for CUF by constructing life-extending modifications without obtaining a construction permit. If litigation is necessary, the environmental groups have indicated that they plan to seek injunctive relief, litigation costs, and civil penalties. TVA cannot predict the outcome of this potential litigation.

Notice of Intent to Sue for Alleged Violations of Clean Air Act at Kingston. On July 20, 2026, Appalachian Voices and the Sierra Club sent a Notice of Intent to Sue TVA for alleged violations of the CAA and the Tennessee SIP as to the Kingston Gas Plant (“KIG”) and KIF. Specifically, these groups allege the following violations: (1) violation of the CAA and Tennessee SIP by constructing KIG before obtaining a PSD permit; (2) violation of the CAA and Tennessee SIP by constructing or planning to construct modifications to KIF that are allegedly part of the same project as construction of KIG without an appropriate permit covering the net emissions increase from the modified units; and (3) violation of TVA’s Title V permit for KIF by constructing or planning to construct life-extending modifications without first obtaining a construction permit. If litigation is necessary, the environmental groups have indicated that they plan to seek injunctive relief, litigation costs, and civil penalties. TVA cannot predict the outcome of this potential litigation.
v3.26.1
Revenue from Contract with Customer
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue from Contract with Customer 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 each of the three and nine months ended June 30, 2026, and the three and nine months ended June 30, 2025, was from LPCs, which then distribute the power to their customers using their own distribution systems. Power is delivered to each LPC at delivery points within the LPC's service territory. TVA recognizes revenue when the customer takes possession of the power at the delivery point. For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.

The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Credits are designed to achieve objectives of the TVA Act and include items such as hydro preference credits for residential customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.
Directly served customers
Directly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.

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

Other Revenue

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

During the three months ended June 30, 2026 and 2025, revenues from sales of electricity were $3.4 billion and $3.3 billion, respectively, and accounted for virtually all of TVA's revenues. During the nine months ended June 30, 2026 and 2025, revenue from sales of electricity were $9.9 billion and $9.6 billion, respectively, and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for the three and nine months ended June 30, 2026 and 2025, are detailed in the table below:
Operating Revenues By State
(in millions)
Three Months Ended June 30Nine Months Ended June 30
2026202520262025
Alabama
$498 $477 $1,474 $1,428 
Georgia
76 74 245 242 
Kentucky
214 209 627 605 
Mississippi
310 310 866 886 
North Carolina
20 18 72 67 
Tennessee
2,260 2,161 6,548 6,345 
Virginia
12 11 40 39 
Subtotal3,390 3,260 9,872 9,612 
Off-system sales1 2 7 4 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Revenue from sales of electricity3,389 3,261 9,877 9,613 
Other revenue53 45 160 145 
Total operating revenues$3,442 $3,306 $10,037 $9,758 
Note
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.

TVA's operating revenues by customer type for the three and nine months ended June 30, 2026 and 2025, are detailed in the table below:
Operating Revenues by Customer Type
(in millions)
Three Months Ended June 30Nine Months Ended June 30
2026202520262025
Revenue from sales of electricity
Local power companies$3,084 $2,967 $9,001 $8,782 
Industries directly served273 259 776 734 
Federal agencies and other34 36 102 100 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Revenue from sales of electricity3,389 3,261 9,877 9,613 
Other revenue53 45 160 145 
Total operating revenues$3,442 $3,306 $10,037 $9,758 
Note
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.

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 to no more than 10 percent during any consecutive five-fiscal-year period, as more specifically described in the agreements. 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 $54 million and $53 million for the three months ended June 30, 2026 and 2025, respectively. The total wholesale bill credits to LPCs participating in the Partnership
Agreement were $167 million and $164 million for the nine months ended June 30, 2026 and 2025, respectively. TVA provides participating LPCs a flexibility option that allows them to 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 June 30, 2026, 148 LPCs had signed the Partnership Agreement with TVA, and 112 LPCs had signed a Power Supply Flexibility Agreement.

The number of LPCs by contract arrangement, the revenues derived from such arrangements for the three and nine months ended June 30, 2026, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the tables below:

TVA Local Power Company Contracts
At or for the Three Months Ended June 30, 2026
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice148 $2,642 76.8 %
 5-year termination notice5 442 12.8 %
Total153 $3,084 89.6 %
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 Local Power Company Contracts
At or for the Nine Months Ended June 30, 2026
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice148 $7,794 77.7 %
 5-year termination notice5 1,207 12.0 %
Total153 $9,001 89.7 %
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 nine months ended June 30, 2026 and the nine months ended June 30, 2025.

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 June 30, 2026.

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 11 — 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 $78 million and $80 million for the three months ended June 30, 2026 and 2025, respectively. Incentives recorded as a reduction to revenue were $225 million and $248 million for the nine months ended June 30, 2026 and 2025, 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 June 30, 2026, and September 30, 2025, the outstanding unpaid incentives were $190 million and $193 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements.
v3.26.1
Segment Reporting
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting Segment Reporting
TVA operates as a single reportable segment that includes the generation, transmission, and sale of electricity throughout the Tennessee Valley. Revenue is primarily derived from wholesale electricity sales to LPCs and directly served customers. TVA's Interim CEO serves as the Chief Operating Decision Maker ("CODM"). The CODM uses net income in the annual planning process and to monitor budget versus actual results on a monthly basis in assessing financial performance and in determining how to allocate resources.

The following table includes operating revenues, expenses, and net income as regularly provided to the CODM, which align directly to the amounts presented in TVA’s Consolidated Statements of Operations. As the segment measure used by the CODM is net income, no reconciliation is necessary.
1Three Months Ended June 30Nine Months Ended June 30
12026
2025(3)
2026
2025(3)
Base revenue$2,249 $2,215 $6,804 $6,688 
Fuel revenue1,141 1,045 3,068 2,924 
Other revenue53 45 160 145 
Off-system sales1 2 7 4 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Total operating revenue3,442 3,306 10,037 9,758 
Fuel685 589 1,882 1,674 
Purchased power563 550 1,561 1,516 
Operating and maintenance964 922 2,695 2,771 
Depreciation and amortization448 572 1,530 1,691 
Interest expense316 307 933 880 
Tax equivalents171 156 492 460 
Other segment items(2)
(12)(2)(21)21 
Total expenses, net3,135 3,0949,0729,013
Net income$307 $212 $965 $745 
Notes
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.
(2) Other segment items include non-utility related miscellaneous income and expenses, pension and post-retirement benefit costs, and interest income.
(3) Prior period amounts have been reclassified to conform to the current period presentation resulting from the retrospective adoption of ASU 2023-07, Segment Reporting. Expanded segment disclosures were not required in the comparative periods presented because the company operated, and continues to operate, as a single reportable segment for which detailed segment expense disclosures were not previously required.

Segment asset information is not presented, as it is not regularly reviewed by the CODM. The CODM evaluates capital planning and resource allocation on a consolidated basis which is presented in TVA's Consolidated Balance Sheet.

Capital expenditures were $1.0 billion and $1.1 billion for the three months ended June 30, 2026 and 2025, respectively. Capital expenditures were $3.0 billion and $3.7 billion for the nine months ended June 30, 2026 and 2025, respectively.
v3.26.1
Insider Trading Arrangements
 9 Months Ended
Jun. 30, 2026
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.26.1
Accounting Policies (Policies)
 9 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Fiscal Period, Policy
Fiscal Year

TVA's fiscal year ends September 30.  Years (2026, 2025, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.
Basis of Accounting, Policy
Basis of Presentation

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 10 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy
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 and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy
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. In addition, at June 30, 2026, TVA had restricted cash related to VIEs. See Note 10 — Variable Interest Entities.

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 June 30, 2026At September 30, 2025
Cash and cash equivalents$1,416 $1,576 
Restricted cash of variable interest entity68 — 
Restricted cash and cash equivalents included in Other long-term assets21 21 
Total cash, cash equivalents, and restricted cash$1,505 $1,597 
Accounts Receivable
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/or 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 as part of estimating expected credit losses, 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 assumes that the current conditions as of the balance sheet date will remain unchanged for the remaining life of the trade receivables.

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 $21 million and $14 million at June 30, 2026, and September 30, 2025, respectively, for trade accounts receivable. At June 30, 2026, the allowance for uncollectible accounts included $20 million related to one local power company customer ("LPC"). Additionally, loans receivable of $114 million and $86 million at June 30, 2026, and September 30, 2025, 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 $2 million at both June 30, 2026, and September 30, 2025.
Pre-Commercial Plant Operations
Pre-Commercial Plant Operations

As part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system. TVA estimates revenues earned during pre-commercial operations at the fair value of the
energy delivered based on TVA's hourly incremental dispatch cost. Pre-commercial plant operations began on the Johnsonville Aeroderivative Combustion Turbine ("CT") Facility ("Johnsonville Facility") during 2025. Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively. TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively. Pre-commercial plant operations began on the Cumberland Combined Cycle Gas Plant ("CUG") Units 1 and 2 during the three months ended June 30, 2026. Estimated revenue of $2 million related to this project was capitalized to offset project costs for both the three and nine months ended June 30, 2026. TVA also capitalized related fuel costs for this project of $7 million for both the three and nine months ended June 30, 2026.
Depreciation, Depletion, and Amortization
Property, Plant, and Equipment, and 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. These studies are updated approximately every five years, with a study currently being performed and implementation expected in October 2026. Depreciation expense was $362 million and $484 million for the three months ended June 30, 2026 and 2025, respectively. Depreciation expense was $1.3 billion and $1.4 billion for the nine months ended June 30, 2026 and 2025, respectively. See Note 7 — Plant Closures for a discussion of the impact of plant closures.

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. In December 2025, the Nuclear Regulatory Commission ("NRC") approved a subsequent license renewal ("SLR") application for the three units at Browns Ferry Nuclear Plant ("Browns Ferry"), which extended the useful life of the three units for an additional 20 years. The SLR is estimated to result in approximately a $45 million reduction in depreciation expense quarterly, which does not include any potential impact from additions or retirements to net completed plant. For the three and nine months ended June 30, 2026, there was an estimated reduction in depreciation expense of $45 million and $105 million, respectively, due to the December 2025 Browns Ferry SLR.
Government Assistance
Government Grants

TVA accounts for government grants based on what the grant is intended to reimburse. Government grants related to an asset are recognized as an adjustment to the cost basis in determining the carrying amount of the asset (the cost accumulation approach), and government grants related to income are recognized as a deduction from the related expense. TVA records the grant when it is probable that both of the following criteria are met: (1) the grant will be received, and (2) TVA complies with all conditions attached to the eligibility of the grant.

The Inflation Reduction Act of 2022 ("IRA") makes credits available to certain tax-exempt entities, including TVA. In 2025, TVA began applying for these credits including Section 48 Investment Tax Credits for qualifying hydroelectric improvements and Section 45U Production Tax Credits for electricity generated by TVA's existing nuclear units. At June 30, 2026, and September 30, 2025, the carrying amount of the Accounts receivable, net, which is related to IRA tax credits was $112 million and $72 million, respectively. TVA received $26 million during the nine months ended June 30, 2026, related to these credits.
There were no asset-related government grants recorded during the nine months ended June 30, 2026. During the nine months ended June 30, 2026 and 2025, TVA recognized $66 million and $4 million of income-related government grants, respectively, which were recorded as reductions of Operating and maintenance expense. There were no income-related government grants recorded during the three months ended June 30, 2026 and 2025.
v3.26.1
Accounting Changes and Error Corrections (Policies)
 9 Months Ended
Jun. 30, 2026
Accounting Changes and Error Corrections [Abstract]  
New Accounting Pronouncements, Policy
The following is an accounting standard update issued by the Financial Accounting Standards Board that TVA adopted during 2026:

Accounting for Government Grants
DescriptionThis guidance establishes accounting recognition, measurement, and presentation of government grants received by business entities, including guidance for (1) a grant related to an asset and (2) a grant related to income. The amendments in this update require that a government grant received by a business entity not be recognized until it is probable that (a) a business entity will comply with the conditions attached to the grant and (b) the grant will be received. The amendments require that a grant related to an asset be recognized utilizing either a deferred income approach or an adjustment to the cost basis and that a grant related to income be recognized either as other income or as a deduction from the related expense. In addition, the amendments require, consistent with current disclosure requirements, that a business entity provide disclosures, including the nature of the government grant received, the accounting policies used to account for the grant, and significant terms and conditions of the grant.
Effective Date for TVAThe new standard is effective for TVA's interim and annual reporting periods beginning October 1, 2029. Early adoption is permitted, and TVA early adopted the standard as of October 1, 2025, applying the guidance on a modified prospective basis to grants that were not complete as of the adoption date.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard did not have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures, and no cumulative-effect adjustment to retained earnings was recorded upon adoption.
The following accounting standards or rules have been issued but as of June 30, 2026, were not effective and have not been adopted by TVA:

Enhancement and Standardization of Climate-Related Disclosures for Investors
Description
In March 2024, the Securities and Exchange Commission ("SEC") adopted its climate-related final rule (SEC Release No. 34-99678, The Enhancement and Standardization of Climate-Related Disclosures for Investors). In April 2024, the SEC voluntarily stayed the new rule as a result of pending legal challenges; in March 2025, the SEC withdrew its legal defense of the rule; in April 2025, the United States Court of Appeals for the Eighth Circuit suspended the litigation over the validity of the rule; and in May 2026, the SEC proposed rescinding the rule. The new rule, if implemented as adopted, will require registrants to provide certain climate-related information in their annual reports and registration statements and will also require the dollar impact of severe weather events and other natural conditions, as well as amounts related to carbon offsets and renewable energy credits or certificates, to be disclosed in the audited financial statements in certain circumstances. If the new rule is implemented as adopted, the disclosure requirements will begin phasing in for fiscal years beginning on or after January 1, 2027, for non-accelerated filers.
Effective Date for TVAFiscal year beginning October 1, 2027.
Effect on the Financial Statements or Other Significant MattersTVA is currently evaluating the impact of the rule on its disclosures.

Disaggregation of Income Statement Expenses
Description
This guidance improves the disclosures about a public entity's expenses in the notes to the financial statements and requires disclosure of specified information about certain costs and expenses. The amendments require a public entity to disclose, on an annual and interim basis, purchases of inventory, employee compensation, depreciation, intangible asset amortization, and depletion for each income statement line item that contains those expenses. Specified expenses, gains, or losses that are already disclosed under existing U.S. GAAP are required to be included in the disaggregated income statement expense line item disclosures, and any relevant remaining amounts need to be described qualitatively. Separate disclosures of total selling expenses and an entity’s definition of those expenses are also required. The amendments are effective for public entities for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Upon adoption, a public entity can apply the amendments prospectively or apply them retrospectively to all prior periods presented in the financial statements.
Effective Date for TVAFiscal year beginning October 1, 2027, and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard will result in TVA including the additional required disclosures, and TVA does not expect an impact on its financial condition, results of operations, or cash flows. TVA expects to adopt this standard prospectively.
Accounting and Disclosure of Costs Related to Internally Developed Software
DescriptionThis guidance amends the accounting for and disclosure of costs related to internally developed software, eliminating project stages, clarifying significant development uncertainty by requiring costs to be recognized only when uncertainty is resolved, and aligning capitalization rules with those for externally sold software. Key changes include the elimination of distinct project stages for development, a redefined meaning of probable as likely, and requirements to assess significant development uncertainty for all software projects to determine when to capitalize costs. In addition, the guidance specifies that the property, plant, and equipment disclosure requirements shall be applied to all capitalized software costs. The amendments are effective for all public entities for fiscal years beginning after December 15, 2027, and interim periods within those fiscal years. Upon adoption, a public entity may apply the guidance using a prospective, retrospective, or modified transition approach.
Effective Date for TVAFiscal year and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard is not expected to have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures.

Accounting for Environmental Credits and Environmental Credit Obligations
DescriptionThis guidance provides specific authoritative guidance that establishes recognition, measurement, presentation, and disclosure requirements for environmental credits and environmental credit obligations. The amendments are effective for public entities for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Upon adoption, a public entity should apply the amendments on a retrospective basis through a cumulative-effect adjustment to the opening balances of retained earnings as of the beginning of the annual reporting period of adoption.
Effective Date for TVAFiscal year and interim periods beginning October 1, 2028.
Effect on the Financial Statements or Other Significant MattersThe adoption of this standard is not expected to have a material impact on TVA’s financial condition, results of operations, cash flows, or disclosures.
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets (Policies)
 9 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Financing Receivable
Loans and Other Long-Term Receivables. At both June 30, 2026, and September 30, 2025, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million. Loans receivables are reported net of allowances for uncollectible accounts. 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 June 30, 2026At September 30, 2025
EnergyRight® loan reserve
$1 $1 
Economic development loan specific loan reserve1 1 
Total allowance for loan losses$2 $2 
Credit Loss, Financial Instrument
Allowance Components
(in millions)
At June 30, 2026At September 30, 2025
EnergyRight® loan reserve
$1 $1 
Economic development loan specific loan reserve1 1 
Total allowance for loan losses$2 $2 
Service Agreements
Prepaid Long-Term Service Agreements. At June 30, 2026, and September 30, 2025, prepayments of $36 million and $16 million, respectively, were recorded in Other current assets.

Prepaid Capital Assets. TVA makes prepayments to acquire capital assets. TVA classifies these prepayments as prepaid capital if the funds are refundable and/or TVA can receive a credit.
Goodwill and Intangible Assets, Intangible Assets, Policy
Cloud Assets. At June 30, 2026, and September 30, 2025, the carrying amount of the cloud assets reported in Other current assets was $51 million and $3 million, respectively. For the three months ended June 30, 2026 and 2025, TVA amortized $13 million and $3 million, respectively, as Operating and maintenance expense. For the nine months ended June 30, 2026 and 2025, TVA amortized $27 million and $12 million, respectively, as Operating and maintenance expense.
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy
EnergyRight® Receivables. In association with the EnergyRight® program, TVA's 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 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 June 30, 2026, and September 30, 2025, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million. See Note 11 — Other Long-Term Liabilities for information regarding the associated financing obligation.
v3.26.1
Organization, Consolidation and Presentation of Financial Statements (Policies)
 9 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidation, Variable Interest Entity, Policy
A variable interest entity ("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.
v3.26.1
Accounting Policies (Tables)
 9 Months Ended
Jun. 30, 2026
Accounting Policies [Abstract]  
Schedule of Cash and Cash Equivalents
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 June 30, 2026At September 30, 2025
Cash and cash equivalents$1,416 $1,576 
Restricted cash of variable interest entity68 — 
Restricted cash and cash equivalents included in Other long-term assets21 21 
Total cash, cash equivalents, and restricted cash$1,505 $1,597 
v3.26.1
Restructuring and Related Activities (Tables)
 9 Months Ended
Jun. 30, 2026
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs The table below summarizes the activity related to severance costs associated with the ETP:
Severance Cost Liability Activity
(in millions)
Severance cost liability at September 30, 2024$— 
Liabilities incurred during the period40 
Actual costs paid during the period(26)
Severance cost liability at June 30, 2025
$14 
Severance cost liability at September 30, 2025
$11 
Liabilities incurred during the period— 
Actual costs paid during the period(11)
Severance cost liability at June 30, 2026
$— 
v3.26.1
Receivables, Loans, Notes Receivable, and Others (Tables)
 9 Months Ended
Jun. 30, 2026
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
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 June 30, 2026
At September 30, 2025(2)
Customer receivables$2,035 $1,992 
Other receivables158 141 
Allowance for uncollectible accounts(1)
(21)(14)
Accounts receivable, net$2,172 $2,119 
Notes
(1) 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, among other considerations. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts. At June 30, 2026 and September 30, 2025, the allowance for uncollectible accounts included $20 million and $14 million, respectively, related to one LPC customer.
(2) At September 30, 2025, $84 million previously classified as Other receivables has been reclassified to Customer receivables to conform with current year presentation.
v3.26.1
Inventory (Tables)
 9 Months Ended
Jun. 30, 2026
Inventory Disclosure [Abstract]  
Schedule of Inventory, Current
The table below summarizes the types and amounts of TVA's inventories:
Inventories, Net
(in millions)
At June 30, 2026At September 30, 2025
Materials and supplies inventory$1,018 $986 
Fuel inventory320 278 
Renewable energy certificates/emissions allowance inventory, net10 12 
Allowance for inventory obsolescence(84)(83)
Inventories, net$1,264 $1,193 
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)
 9 Months Ended
Jun. 30, 2026
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 June 30, 2026At September 30, 2025
Inventory work-in-progress$107 $69 
Cloud assets51 3 
Current portion of prepaid long-term service agreements36 16 
Prepaid software maintenance36 25 
Prepaid insurance20 16 
Commodity contract derivative assets11 14 
Prepaid fees and dues9 7 
Other9 12 
Other current assets$279 $162 
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)
 9 Months Ended
Jun. 30, 2026
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Assets, Noncurrent
The table below summarizes the types and amounts of TVA's other long-term assets:
Other Long-Term Assets
(in millions)
At June 30, 2026At September 30, 2025
Loans and other long-term receivables, net$111 $83 
Prepaid long-term service agreements77 89 
Prepaid capital assets65 81 
Cloud assets60 114 
EnergyRight® receivables, net
45 45 
Commodity contract derivative assets2 10 
Other69 84 
Total other long-term assets$429 $506 
v3.26.1
Regulated Operations (Tables)
 9 Months Ended
Jun. 30, 2026
Regulated Operations [Abstract]  
Schedule of Regulatory Assets and Liabilities Components of regulatory assets and regulatory liabilities are summarized in the table below.
Regulatory Assets and Liabilities
(in millions)
At June 30, 2026At September 30, 2025
Current regulatory assets
Unrealized losses on commodity contract derivatives$99 $59 
Fuel cost adjustment receivable72 — 
Unrealized losses on interest rate derivatives51 57 
Other current regulatory assets11 11 
Total current regulatory assets233 127 
Non-current regulatory assets
Non-nuclear decommissioning costs5,222 5,563 
Retirement benefit plans deferred costs1,494 1,531 
Environmental compliance and remediation costs328 308 
Unrealized losses on interest rate derivatives256 316 
Unrealized losses on commodity contract derivatives27 12 
Nuclear decommissioning costs— 149 
Other non-current regulatory assets169 168 
Total non-current regulatory assets7,496 8,047 
Total regulatory assets$7,729 $8,174 
Current regulatory liabilities
Fuel cost adjustment tax equivalents$204 $203 
Unrealized gains on commodity contract derivatives11 14 
Fuel cost adjustment payable— 11
Total current regulatory liabilities215 228 
Non-current regulatory liabilities
Nuclear decommissioning credits204 — 
Retirement benefit plans deferred credits115 131 
Unrealized gains on commodity contract derivatives2 10 
Total non-current regulatory liabilities321 141 
Total regulatory liabilities$536 $369 
Nuclear Decommissioning Costs (Credits). Nuclear decommissioning costs include (1) certain deferred charges related to the future closure and decommissioning of TVA's nuclear generating units under the NRC requirements, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's Nuclear Decommissioning Trust ("NDT"), and (4) certain other deferred charges under the accounting rules for asset retirement obligations ("AROs"). These future costs can be funded through a combination of investment funds set aside in the NDT and the Asset Retirement Trust ("ART") and future earnings on those investment funds. Deferred charges are probable of future recovery in rates based on the analysis of expected expenditures, contributions, and investment earnings required to recover the decommissioning costs. Recovery of future decommissioning costs is dependent upon the future earnings of the NDT and ART, timing of decommissioning activities, and
changes in decommissioning estimates. Nuclear decommissioning credits include changes in nuclear decommissioning related estimates, investment performance of the NDT, and other decommissioning-related amounts that reduce the expected future funding required to satisfy nuclear decommissioning obligations. TVA evaluates the net nuclear decommissioning regulatory balance each reporting period to determine whether the balance represents a regulatory asset probable of future recovery or a regulatory liability probable of providing future economic benefit to customers through TVA's ratemaking framework. This assessment considers the relationship between projected nuclear decommissioning costs, available NDT assets, expected NDT earnings, and other relevant factors affecting future funding requirements. The regulatory asset or regulatory liability is classified as long-term because the underlying decommissioning activities and related funding mechanisms are expected to extend beyond twelve months. See Note 12 — Asset Retirement Obligations and Note 15 — Fair Value Measurements. Assets held within the NDT are maintained to satisfy future nuclear decommissioning obligations and remain subject to applicable NRC requirements and restrictions. Accordingly, NDT assets in excess of current decommissioning estimates do not necessarily represent amounts that are unrestricted, currently distributable, or immediately refundable to customers.
v3.26.1
Organization, Consolidation and Presentation of Financial Statements (Tables)
 9 Months Ended
Jun. 30, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Variable Interest Entities
The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, SCCG, JACTG, JHLLC, CCCGL, and CGHLLC at June 30, 2026, and September 30, 2025, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
(in millions)
At June 30, 2026At September 30, 2025
Current assets
Restricted cash of variable interest entity$68 $— 
Total assets$68 $— 
Current liabilities
Accrued interest$41 $29 
Accounts payable and accrued liabilities1 1 
Current maturities of long-term debt of variable interest entities75 49 
Total current liabilities
117 79 
Other liabilities
Other long-term liabilities14 14 
Long-term debt, net
Long-term debt of variable interest entities, net3,551 1,632 
Total liabilities$3,682 $1,725 
v3.26.1
Other Liabilities (Tables)
 9 Months Ended
Jun. 30, 2026
Other Liabilities Disclosure [Abstract]  
Other Noncurrent Liabilities The table below summarizes the types and amounts of Other long-term liabilities:
Other Long-Term Liabilities
(in millions)
At June 30, 2026At September 30, 2025
Interest rate swap liabilities$540 $643 
Environmental compliance and remediation costs312 274 
Long-term project cost accruals130 204 
Currency swap liabilities101 108 
Advances for construction67 61 
EnergyRight® financing obligation
53 53 
Operating lease liabilities42 63 
Long-term deferred compensation41 54 
Long-term deferred revenue 40 39 
Commodity contract derivative liabilities27 12 
Accrued long-term service agreements14 25 
Other69 70 
Total other long-term liabilities$1,436 $1,606 
v3.26.1
Asset Retirement Obligations (Tables)
 9 Months Ended
Jun. 30, 2026
Asset Retirement Obligation Disclosure [Abstract]  
Schedule of Asset Retirement Obligations
Asset Retirement Obligation Activity
(in millions)
NuclearNon-NuclearTotal
Balance at September 30, 2025
$3,976 $6,438 $10,414 (1)
Settlements(8)(188)(196)
Revisions in estimate (non-cash)(738)(252)(990)
Accretion (recorded as regulatory asset)121 186 307 
Balance at June 30, 2026$3,351 $6,184 $9,535 (1)
Note
(1) Includes $313 million at both June 30, 2026, and September 30, 2025, in Current liabilities.
v3.26.1
Debt (Tables)
 9 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Schedule of Debt
Total debt outstanding at June 30, 2026, and September 30, 2025, consisted of the following:
Debt Outstanding 
(in millions)
At June 30, 2026At September 30, 2025
Short-term debt
Short-term debt, net of discounts$500 $— 
Current maturities of power bonds issued at par1,020 1,370 
Current maturities of long-term debt of VIEs issued at par
75 49 
Total current debt outstanding, net1,595 1,419 
Long-term debt
Long-term power bonds(1)
19,599 20,628 
Long-term debt of VIEs, net
3,551 1,632 
Unamortized discounts, premiums, issue costs, and other(156)(167)
Total long-term debt, net22,994 22,093 
Total debt outstanding$24,589 $23,512 
Note
(1) Includes total net exchange gain from currency transactions of $66 million and $59 million at June 30, 2026, and September 30, 2025, respectively.
Schedule of Long-Term Debt Instruments
The table below summarizes the long-term debt securities activity for the period from October 1, 2025, to June 30, 2026:
Debt Securities Activity
Date
Amount
(in millions)
Issues
Debt of variable interest entitiesMay 2026$2,000 
Total long-term debt issues$2,000 
Redemptions/Maturities(1) (2)
1995 E GlobalNovember 2025$1,350 
2009 Series BJune 202620 
Total redemptions/maturities of power bonds1,370 
Debt of variable interest entities29 
Total redemptions/maturities of debt$1,399 
Notes
(1) All redemptions were at 100 percent of par.
(2) The 2009 Series B redemption amount was less than $1 million in December 2025 and therefore was not represented in the table above.
Schedule of Line of Credit Facilities
The following table provides additional information regarding TVA's funding available under the three revolving credit facilities:
Summary of Credit Facilities
At June 30, 2026
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
March 2027(1)
$1,000 $136 $— $864 
February 2028500 214 — 286 
September 20301,000 85 — 915 
Total$2,500 $435 $— $2,065 
Note
(1) In July 2026, TVA extended the maturity date from March 25, 2027 to July 10, 2031.
v3.26.1
Derivative Instruments and Hedging Activities (Tables)
 9 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss)
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 June 30Nine Months Ended June 30
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		2026202520262025
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 Accumulated other comprehensive income (loss) ("AOCI") and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction
$17 $47 $8 $24 


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 June 30Nine Months Ended June 30
Derivatives in Cash Flow Hedging Relationship2026202520262025
Currency swaps$7 $38 $(5)$15 
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 $14 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.
Derivative Instruments, Gain (Loss)
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 June 30Nine Months Ended June 30
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument2026202520262025
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
$(14)$(11)$(41)$(33)
Commodity derivatives
under the FHP
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)
(45)(13)(39)(64)
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 and nine months ended June 30, 2026 and for the three and nine months ended June 30, 2025.
(2) Of the amount recognized for the three months ended June 30, 2026, $(38) million and $(7) million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended June 30, 2025, $(3) million and $(10) million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for the nine months ended June 30, 2026, $(31) million and $(8) million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the nine months ended June 30, 2025, $(12) million and $(52) million were reported in Fuel expense and Purchased power expense, respectively.
Fair Value, by Balance Sheet Grouping
Fair Values of TVA Derivatives
(in millions)
At June 30, 2026At September 30, 2025
Derivatives That Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps
£250 million Sterling
$(43)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(39)
$(47)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(43)
£150 million Sterling
(65)
Accounts payable and accrued liabilities $(3); Other long-term liabilities $(62)
(68)
Accounts payable and
accrued liabilities $(3); Other long-term liabilities $(65)
Derivatives That Do Not Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps
$1.0 billion notional$(450)
Accounts payable and
accrued liabilities $(30); Accrued interest $(9);
Other long-term liabilities
$(411)
$(526)
Accounts payable and accrued liabilities $(13); Accrued interest $(28);
Other long-term liabilities $(485)
$476 million notional(142)
Accounts payable and
accrued liabilities $(12); Accrued interest $(1);
Other long-term liabilities
$(129)
(172)
Accounts payable and accrued liabilities $(5); Accrued interest $(9);
Other long-term liabilities
$(158)
Commodity contract derivatives6 
Other current assets $11; Other long-term assets $2; Accounts payable and accrued liabilities $(3); Other long-term liabilities $(4)
10 
Other current assets $14; Other long-term assets $2; Accounts payable and accrued liabilities $(2); Other long-term liabilities $(4)
Commodity derivatives under the FHP
(119)
Accounts payable and accrued liabilities $(96); Other long-term liabilities $(23)
(57)
Other long-term assets $8; Accounts payable and accrued liabilities $(57); Other long-term liabilities $(8)
Schedule of Derivative Instruments
Commodity Contract Derivatives 
At June 30, 2026At September 30, 2025
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives39 592 Million MMBTu $6 53562 million mmBtu$10 
Schedule of Derivative Instruments Commodity Contracts Under FHP
Commodity Derivatives under Financial Hedging Program(1)
At June 30, 2026At September 30, 2025
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Natural gas swap contracts285390 Million MMBTu$(119)295300 million mmBtu$(57)
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.
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 June 30, 2026At September 30, 2025
Assets
Commodity contract derivatives$13 $16 
Commodity derivatives under the FHP(2)
— 8 
Total derivatives subject to master netting or similar arrangement$13 $24 
Liabilities
Currency swaps$108 $115 
Interest rate swaps(3)
592 698 
Commodity contract derivatives 7 6 
Commodity derivatives under the FHP(2)
119 65 
Total derivatives subject to master netting or similar arrangement$826 $884 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no material offsetting amounts on TVA's Consolidated Balance Sheets at either June 30, 2026, or September 30, 2025.
(2) At June 30, 2026, the gross derivative asset and gross derivative liability were $35 million and $154 million, respectively, with offsetting amounts for each totaling $35 million. At September 30, 2025, the gross derivative asset and gross derivative liability were $28 million and $85 million, respectively, with offsetting amounts for each totaling $20 million.
(3) Letters of credit of $368 million and $442 million were posted as collateral at June 30, 2026, and September 30, 2025, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.
v3.26.1
Fair Value Measures and Disclosures (Tables)
 9 Months Ended
Jun. 30, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurement Inputs and 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 Gain (Loss) on Investments TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)(1)
(in millions)
Three Months Ended June 30
 Nine Months Ended June 30
FundFinancial Statement Presentation2026202520262025
NDT
Regulatory assets or liabilities(2)
$231 $200 $239 $133 
ART
Regulatory assets(3)
124 97 127 69 
SERP
Other income (expense), net7 5 4 (1)
DCP
Other income (expense), net2 2 1 — 
Notes
(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2026 and the three and nine months ended June 30, 2025, and therefore were not represented in the table above.
(2) Includes $61 million and $41 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2026 and 2025, respectively. Includes $57 million of unrealized gains and $12 million of unrealized losses related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2026 and 2025, respectively. The financial statement presentation was a regulatory liability at June 30, 2026, and a regulatory asset at September 30, 2025. See Note 9 - Regulatory Assets and Liabilities for additional information.
(3) Includes $19 million and $10 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2026 and 2025, respectively. Includes $21 million of unrealized gains and $5 million of unrealized losses related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2026 and 2025, respectively.
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis
Fair Value Measurements
At June 30, 2026
(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$994 $— $— $994 
Government debt securities(1)(2)
547 65 — 612 
Corporate debt securities(3)
— 449 — 449 
Mortgage and asset-backed securities— 46 — 46 
Institutional mutual funds
403 — — 403 
Forward debt securities contracts— 11 — 11 
Cash equivalents and other short-term investments(2)(4)
85 255 — 340 
Private equity funds measured at net asset value(5)
— — — 1,037 
Private real asset funds measured at net asset value(5)
— — — 500 
Private credit funds measured at net asset value(5)
— — — 301 
Commingled funds measured at net asset value(5)
— — — 1,552 
Total investments2,029 826 — 6,245 
Commodity contract derivatives— 13 — 13 
Total$2,029 $839 $— $6,258 
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(6)
$— $108 $— $108 
Interest rate swaps— 592 — 592 
Commodity contract derivatives— 7 — 7 
Commodity derivatives under the FHP
— 119 — 119 
Total$— $826 $— $826 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $547 million of U.S. Treasury securities in Level 1 Government debt securities and $85 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $632 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $76 million of net receivables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $55 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2025
(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$844 $— $— $844 
Government debt securities(1)(2)
423 50 — 473 
Corporate debt securities(3)
— 411 — 411 
Mortgage and asset-backed securities— 40 — 40 
Institutional mutual funds
367 — — 367 
Forward debt securities contracts
— 16 — 16 
Cash equivalents and other short-term investments(2)(4)
111 163 — 274 
Private equity funds measured at net asset value(5)
— — — 875 
Private real asset funds measured at net asset value(5)
— — — 467 
Private credit funds measured at net asset value(5)
— — — 278 
Commingled funds measured at net asset value(5)
— — — 1,528 
Total investments1,745 680 — 5,573 
Commodity contract derivatives— 16 — 16 
Commodity derivatives under the FHP
— 8 — 8 
Total$1,745 $704 $— $5,597 
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(6)
$— $115 $— $115 
Interest rate swaps— 698 — 698 
Commodity contract derivatives— 6 — 6 
Commodity derivatives under the FHP
— 65 — 65 
Total$— $884 $— $884 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $423 million of U.S. Treasury securities in Level 1 Government debt securities and $111 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $534 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $60 million of net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $124 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value The estimated values of TVA's financial instruments not recorded at fair value at June 30, 2026, and September 30, 2025, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
At June 30, 2026At September 30, 2025
Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$57 $58 $57 $57 
Loans and other long-term receivables, net (including current portion)Level 2114 108 86 80 
EnergyRight® financing obligations (including current portion)
Level 266 72 66 74 
Membership interests of VIEs subject to mandatory redemption (including current portion)
Level 215 16 16 18 
Long-term outstanding power bonds, net (including current maturities)Level 220,463 20,292 21,831 21,967 
Long-term debt of VIEs, net (including current maturities)
Level 23,626 3,704 1,681 1,696 
v3.26.1
Other Income and Expenses (Tables)
 9 Months Ended
Jun. 30, 2026
Other Income and Expenses [Abstract]  
Schedule of Other Nonoperating Income (Expense)
Income and expenses not related to TVA's operating activities are summarized in the following table:
Other Income, Net
(in millions)
Three Months Ended June 30Nine Months Ended June 30
2026202520262025
Interest income$10 $10 $32 $31 
External services8 8 18 22 
Gains on investments12 10 14 8 
Miscellaneous4 1 25 (3)
Total other income, net$34 $29 $89 $58 
Other income, net increased $31 million for the nine months ended June 30, 2026, as compared to the same period of the prior year driven by a $28 million gain related to insurance proceeds received for the Sequoyah Nuclear Plant Unit 2 main generator failure.
v3.26.1
Compensation Related Costs, Retirement Benefits (Tables)
 9 Months Ended
Jun. 30, 2026
Retirement Benefits [Abstract]  
Schedule of Net Benefit Costs
The components of net periodic benefit cost for the three and nine months ended June 30, 2026 and 2025, were as follows:
Components of Net Periodic Benefit Cost(1)
(in millions)
For the Three Months Ended June 30
For the Nine Months Ended June 30
Pension BenefitsOther Post-Retirement BenefitsPension BenefitsOther Post-Retirement Benefits
20262025202620252026202520262025
Service cost$5 $8 $3 $3 $17 $24 $7 $9 
Interest cost136 131 4 3 408 394 12 12 
Expected return on plan assets(124)(126)— — (371)(379)— — 
Amortization of prior service credit(22)(22)(4)(4)(67)(67)(13)(13)
Recognized net actuarial loss (gain)34 44 (2)— 103 131 (4)— 
Total net periodic benefit cost as actuarially determined29 35 1 2 90 103 2 8 
Special/contractual termination benefits(2)
— — — 1 — — — 1 
Total net periodic benefit cost$29 $35 $1 $3 $90 $103 $2 $9 
Note
(1) The components of Total net periodic benefit cost other than Service cost are included in Other net periodic benefit cost on the Consolidated Statements of Operations.
(2) Special/contractual termination benefits for certain eligible employees related to TVA's restructuring activities. See Note 3 — Restructuring.
v3.26.1
Revenue from Contract with Customer (Tables)
 9 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Disaggregation of Revenue TVA's operating revenues by state for the three and nine months ended June 30, 2026 and 2025, are detailed in the table below:
Operating Revenues By State
(in millions)
Three Months Ended June 30Nine Months Ended June 30
2026202520262025
Alabama
$498 $477 $1,474 $1,428 
Georgia
76 74 245 242 
Kentucky
214 209 627 605 
Mississippi
310 310 866 886 
North Carolina
20 18 72 67 
Tennessee
2,260 2,161 6,548 6,345 
Virginia
12 11 40 39 
Subtotal3,390 3,260 9,872 9,612 
Off-system sales1 2 7 4 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Revenue from sales of electricity3,389 3,261 9,877 9,613 
Other revenue53 45 160 145 
Total operating revenues$3,442 $3,306 $10,037 $9,758 
Note
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.
Contract with Customer, Contract Asset, Contract Liability, and Receivable
TVA's operating revenues by customer type for the three and nine months ended June 30, 2026 and 2025, are detailed in the table below:
Operating Revenues by Customer Type
(in millions)
Three Months Ended June 30Nine Months Ended June 30
2026202520262025
Revenue from sales of electricity
Local power companies$3,084 $2,967 $9,001 $8,782 
Industries directly served273 259 776 734 
Federal agencies and other34 36 102 100 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Revenue from sales of electricity3,389 3,261 9,877 9,613 
Other revenue53 45 160 145 
Total operating revenues$3,442 $3,306 $10,037 $9,758 
Note
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.
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 and nine months ended June 30, 2026, and the percentage those revenues comprised of TVA's total operating revenues for the same period, are summarized in the tables below:

TVA Local Power Company Contracts
At or for the Three Months Ended June 30, 2026
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice148 $2,642 76.8 %
 5-year termination notice5 442 12.8 %
Total153 $3,084 89.6 %
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 Local Power Company Contracts
At or for the Nine Months Ended June 30, 2026
Contract Arrangements(1)
Number of LPCs
Revenue from Sales of Electricity to LPCs
(in millions)
Percentage of Total Operating Revenues
20-year termination notice148 $7,794 77.7 %
 5-year termination notice5 1,207 12.0 %
Total153 $9,001 89.7 %
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.
v3.26.1
Segment Reporting (Tables)
 9 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Reporting
1Three Months Ended June 30Nine Months Ended June 30
12026
2025(3)
2026
2025(3)
Base revenue$2,249 $2,215 $6,804 $6,688 
Fuel revenue1,141 1,045 3,068 2,924 
Other revenue53 45 160 145 
Off-system sales1 2 7 4 
Revenue capitalized during pre-commercial plant operations(1)
(2)(1)(2)(3)
Total operating revenue3,442 3,306 10,037 9,758 
Fuel685 589 1,882 1,674 
Purchased power563 550 1,561 1,516 
Operating and maintenance964 922 2,695 2,771 
Depreciation and amortization448 572 1,530 1,691 
Interest expense316 307 933 880 
Tax equivalents171 156 492 460 
Other segment items(2)
(12)(2)(21)21 
Total expenses, net3,135 3,0949,0729,013
Net income$307 $212 $965 $745 
Notes
(1) Represents revenue capitalized during pre-commercial operations at CUG for the three and nine months ended June 30, 2026, and the Johnsonville Facility for the three and nine months ended June 30, 2025.
(2) Other segment items include non-utility related miscellaneous income and expenses, pension and post-retirement benefit costs, and interest income.
(3) Prior period amounts have been reclassified to conform to the current period presentation resulting from the retrospective adoption of ASU 2023-07, Segment Reporting. Expanded segment disclosures were not required in the comparative periods presented because the company operated, and continues to operate, as a single reportable segment for which detailed segment expense disclosures were not previously required.
v3.26.1
Accounting Policies (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
customers
Jun. 30, 2025
USD ($)
Sep. 30, 2025
USD ($)
Sep. 30, 2024
USD ($)
Jun. 30, 2024
USD ($)
Reported Value Measurement              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Financing Receivable, after Allowance for Credit Loss $ 114   $ 114   $ 86    
Restricted Cash and Cash Equivalent, Noncurrent 21   21   21    
Cash, Cash Equivalent, Restricted Cash, and Restricted Cash Equivalent, Continuing Operation 1,505   1,505   1,597 $ 523 $ 522
Cash and Cash Equivalent 1,416   1,416   1,576    
Accounts Receivable, Allowance for Credit Loss, Current 21   21   14    
Financing Receivable, after Allowance for Credit Loss 108   108   80    
Accounts and Financing Receivable, Allowance for Credit Loss 2   2   2    
Property, Plant, and Equipment [Line Items]              
Depreciation 362 $ 484 1,300 $ 1,400      
Other Receivables, Net, Current 112   112   72    
Investment Tax Credit     26        
Government Assistance, Asset 0   0        
Government Assistance, Nonoperating Expense, Decrease (Increase)     66 4      
Government Assistance, Income, Increase (Decrease) 0 0          
Payments to Acquire Property, Plant, and Equipment     2,874 3,461      
Proceeds from Contribution in Aid of Construction, Investing Activity     86 95      
Payment for (Proceeds from) Other Investing Activity     (73) 70      
Construction in Progress              
Payments to Acquire Property, Plant, and Equipment       19      
Payment for (Proceeds from) Other Investing Activity       (76)      
Johnsonville Aeroderivative CT Units              
Property, Plant, and Equipment [Line Items]              
Pre-commercial Ops - Capitalized Revenue (2) (1) (2) (3)      
Pre-Commercial Ops - Capitalized Fuel   $ 2   $ 6      
Browns Ferry Nuclear Plant              
Property, Plant, and Equipment [Line Items]              
Expected Quarterly Depreciation Reduction     (45)        
Browns Ferry Nuclear Plant | Reduced Depreciation              
Property, Plant, and Equipment [Line Items]              
Depreciation 45   105        
Cumberland Aeroderivative CT Units              
Property, Plant, and Equipment [Line Items]              
Pre-commercial Ops - Capitalized Revenue 2   2        
Pre-Commercial Ops - Capitalized Fuel 7   7        
Holly Springs              
Accounts, Notes, Loans and Financing Receivable [Line Items]              
Accounts Receivable, Allowance for Credit Loss, Current 20   $ 20   14    
Number of Customers with Allowance for Uncollectible Accounts | customers     1        
CCCGL              
Restricted Cash $ 68   $ 68   $ 0    
v3.26.1
Restructuring and Related Activities (Details) - USD ($)
$ in Millions
 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Sep. 30, 2025
Sep. 30, 2024
Restructuring Cost and Reserve [Line Items]        
Restructuring Reserve $ 0 $ 14    
Increase (Decrease) in Restructuring Reserve 0 40    
Restructuring and Related Cost, Incurred Cost $ (11) $ (26)    
Employee Severance        
Restructuring Cost and Reserve [Line Items]        
Restructuring Reserve     $ 11 $ 0
v3.26.1
Receivables, Loans, Notes Receivable, and Others (Details)
$ in Millions
 9 Months Ended
Jun. 30, 2026
USD ($)
customers
Sep. 30, 2025
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current $ 2,035 $ 1,992
Other Receivables, Gross, Current 158 141
Accounts Receivable, Allowance for Credit Loss (21) (14)
Accounts Receivable, after Allowance for Credit Loss, Current 2,172 2,119
Accounts Receivable, Allowance for Credit Loss, Current 21 14
Accounts Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, before Allowance for Credit Loss, Current   84
Holly Springs    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts Receivable, Allowance for Credit Loss, Current $ 20 $ 14
Number of Customers with Allowance for Uncollectible Accounts | customers 1  
v3.26.1
Inventory (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Inventory Disclosure [Abstract]    
Inventory, Raw Materials and Supplies, Gross $ 1,018 $ 986
Energy Related Inventory 320 278
Other Inventory, Net of Reserves 10 12
Inventory Valuation Reserves (84) (83)
Inventory, Net $ 1,264 $ 1,193
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Inventory, Work in Process and Raw Materials $ 107 $ 69
Prepaid software maintenance 36 25
Prepaid Expense and Other Assets, Current 36 16
Commodity Contract Asset, Current 11 14
Prepaid Insurance 20 16
Prepaid Expense, Current 9 7
Other Assets, Miscellaneous, Current 9 12
Other Assets, Current 279 162
Other Intangible Assets    
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Servicing Asset 51 3
Other Current Asset [Line Items]    
Servicing Asset $ 51 $ 3
v3.26.1
Property, Plant, and Equipment (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 22 Months Ended 37 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Jan. 31, 2026
Jan. 31, 2026
Property, Plant, and Equipment [Line Items]            
Depreciation $ 362 $ 484 $ 1,300 $ 1,400    
Cumberland            
Property, Plant, and Equipment [Line Items]            
Accumulated Additional Depreciation           $ 197
Kingston            
Property, Plant, and Equipment [Line Items]            
Accumulated Additional Depreciation         $ 66  
Cumberland and Kingston            
Property, Plant, and Equipment [Line Items]            
Expected Quarterly Depreciation Reduction     99      
Cumberland and Kingston | Reduced Depreciation            
Property, Plant, and Equipment [Line Items]            
Depreciation $ 99   $ 132      
v3.26.1
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
Day
Jun. 30, 2025
USD ($)
Sep. 30, 2025
USD ($)
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]          
Financing Receivable, after Allowance for Credit Loss, Noncurrent $ 111   $ 111   $ 83
Prepaid Expense and Other Assets, Noncurrent 77   77   89
Prepaid Capital Assets 65   65   81
Other Intangible Assets, Net 60   60   114
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 58   58   57
Commodity Contract Asset, Noncurrent 2   2   10
Other Assets, Miscellaneous, Noncurrent 69   69   84
Other Assets, Noncurrent 429   429   506
Financing Receivable, Allowance for Credit Loss [Line Items]          
Accounts and Financing Receivable, Allowance for Credit Loss 2   2   2
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 58   58   57
Prepaid Expense and Other Assets, Current 36   36   16
Hosting Arrangement, Service Contract, Implementation Cost, Capitalized, Amortization Expense 13 $ 3 $ 27 $ 12  
Number of Days in Default | Day     180    
Financing Receivable, after Allowance for Credit Loss, Current 3   $ 3   3
Accounts Receivable          
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]          
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 12   12   12
Financing Receivable, Allowance for Credit Loss [Line Items]          
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 12   12   12
Other Intangible Assets          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Servicing Asset 51   51   3
Servicing Asset 51   51   3
Other Long-Term Asset          
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]          
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 45   45   45
Financing Receivable, Allowance for Credit Loss [Line Items]          
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 45   $ 45   45
Maximum          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Debt Instrument, Term     10 years    
Debt Instrument, Term     10 years    
EnergyRight Loan Reserve          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Accounts and Financing Receivable, Allowance for Credit Loss 1   $ 1   1
Economic Development Loan Specific Loan Reserve          
Financing Receivable, Allowance for Credit Loss [Line Items]          
Accounts and Financing Receivable, Allowance for Credit Loss $ 1   $ 1   $ 1
v3.26.1
Regulated Operations (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Regulatory Asset [Line Items]    
Regulatory Asset, Current $ 233 $ 127
Regulatory Asset, Noncurrent 7,496 8,047
Regulatory Asset 7,729 8,174
Environmental Costs Recognized, Capitalized 328 308
Regulatory Liability, Current 215 228
Regulatory Liability, Noncurrent 321 141
Regulatory Liability 536 369
Regulatory Liability [Line Items]    
Regulatory Liability, Current 215 228
Deferred Derivative Gain (Loss)    
Regulatory Asset [Line Items]    
Regulatory Liability, Current 11 14
Regulatory Liability, Noncurrent 2 10
Regulatory Liability [Line Items]    
Regulatory Liability, Current 11 14
Deferred Fuel Costs    
Regulatory Asset [Line Items]    
Regulatory Liability, Current 0 11
Regulatory Liability [Line Items]    
Regulatory Liability, Current 0 11
Postretirement Benefit Costs    
Regulatory Asset [Line Items]    
Regulatory Liability, Noncurrent 115 131
Deferred Income Tax Charge    
Regulatory Asset [Line Items]    
Regulatory Liability, Current 204 203
Regulatory Liability [Line Items]    
Regulatory Liability, Current 204 203
Nuclear Decommissioning Credits    
Regulatory Asset [Line Items]    
Regulatory Liability, Noncurrent 204 0
Deferred Fuel Costs    
Regulatory Asset [Line Items]    
Regulatory Asset, Current 72 0
Deferred Derivative Gain (Loss)    
Regulatory Asset [Line Items]    
Regulatory Asset, Current 99 59
Regulatory Asset, Noncurrent 27 12
Unrealized Losses on Interest Rate Derivatives    
Regulatory Asset [Line Items]    
Regulatory Asset, Current 51 57
Regulatory Asset, Noncurrent 256 316
Non-Nuclear Decommissioning    
Regulatory Asset [Line Items]    
Regulatory Asset, Noncurrent 5,222 5,563
Pension Costs    
Regulatory Asset [Line Items]    
Regulatory Asset, Noncurrent 1,494 1,531
Nuclear Decommissioning Costs    
Regulatory Asset [Line Items]    
Regulatory Asset, Noncurrent 0 149
Other Noncurrent Regulatory Assets    
Regulatory Asset [Line Items]    
Regulatory Asset, Noncurrent 169 168
Other Regulatory Assets (Liabilities)    
Regulatory Asset [Line Items]    
Regulatory Asset, Current $ 11 $ 11
v3.26.1
Organization, Consolidation and Presentation of Financial Statements (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
May 26, 2026
Sep. 30, 2025
Oct. 02, 2024
Sep. 30, 2013
Sep. 30, 2012
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount $ 40   $ 40         $ 360  
Interest Payable 41   41     $ 29      
Other Long-Term Debt, Current 75   75     49      
Liabilities, Current 5,601   5,601     5,607      
Other Liabilities, Noncurrent 1,436   1,436     1,606      
Other Long-Term Debt, Noncurrent $ 3,551   $ 3,551     1,632      
Financial instruments subject to mandatory redemption, interest rate, stated percentage 7.00%   7.00%            
Assets $ 61,644   $ 61,644     60,882      
Variable Interest Entity, Primary Beneficiary                  
Variable Interest Entity [Line Items]                  
Liabilities 3,682   3,682     1,725     $ 1,000
Debt and Lease Obligation         $ 2,000   $ 800    
Accounts Payable and Accrued Liabilities 1   1     1      
Liabilities, Current 117   117     79      
Other Liabilities, Noncurrent 14   14     14      
Interest Expense, Operating and Nonoperating 32 $ 21 74 $ 64          
Cash         1,900        
Assets 68   68     0      
JSCCG                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount                 900
Holdco                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount                 $ 100
SCCG                  
Variable Interest Entity [Line Items]                  
Debt and Lease Obligation               $ 400  
JACTG                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount             720    
JHLLC                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount             $ 80    
CCCGL                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount         1,800        
Restricted Cash 68   68     $ 0      
CGHLLC                  
Variable Interest Entity [Line Items]                  
Debt Instrument, Face Amount         $ 200        
Restricted Cash $ 68   $ 68            
v3.26.1
Other Liabilities (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Other Liabilities Disclosure [Abstract]    
Interest Rate Derivative Instruments Not Designated as Hedging Instruments, Liability at Fair Value $ 540 $ 643
Environmental Exit Costs, Costs Accrued to Date (312) (274)
Long-Term Project Cost Accruals 130 204
Foreign Currency Contracts, Liability, Fair Value Disclosure 108 115
Customer Advances for Construction 67 61
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount (72) (74)
Operating Lease, Liability, Noncurrent 42 63
Deferred Revenue, Noncurrent 40 39
Deferred Compensation Liability, Classified, Noncurrent 41 54
Derivative, Fair Value, Net 27 12
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Noncurrent 14 25
Other Sundry Liabilities 69 70
Other Liabilities, Noncurrent 1,436 1,606
Other Long-Term Liability [Line Items]    
Customer Advances for Construction 67 61
Foreign Currency Contracts, Liability, Fair Value Disclosure 108 115
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount 72 74
Long-Term Project Cost Accruals 130 204
Environmental Exit Costs, Costs Accrued to Date 312 274
Operating Lease, Liability, Current 36 46
Deferred Revenue, Current 41 25
Deferred Compensation Liability, Current (80) (70)
Accounts Payable    
Other Liabilities Disclosure [Abstract]    
Environmental Exit Costs, Costs Accrued to Date (37) (52)
Long-Term Project Cost Accruals 248 256
Customer Advances for Construction 123 155
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount (13) (13)
Other Long-Term Liability [Line Items]    
Customer Advances for Construction 123 155
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount 13 13
Long-Term Project Cost Accruals 248 256
Environmental Exit Costs, Costs Accrued to Date 37 52
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount, Current 33 17
Other Long-Term Liability    
Other Liabilities Disclosure [Abstract]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 101 108
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount (53) (53)
Other Long-Term Liability [Line Items]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 101 108
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount $ 53 $ 53
v3.26.1
Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 9 Months Ended
Jun. 30, 2026
Sep. 30, 2025
Asset Retirement Obligation Disclosure [Abstract]    
Asset Retirement Obligation, Period Increase (Decrease) $ (879)  
Amortization and Depreciation of Decontaminating and Decommissioning Assets 165  
Asset Retirement Obligation, Current 313 $ 313
Asset Retirement Obligation [Line Items]    
Asset Retirement Obligation 9,535 10,414
Asset Retirement Obligation, Liabilities Settled (196)  
Asset Retirement Obligation, Revision of Estimate (990)  
Accretion Expense, Including Asset Retirement Obligations 307  
Change in Estimate Due to Gallatin CCR Closure (44)  
Change in Estimate Due to Assessment of Assumptions (65)  
Decrease in ARO Due to Final CCR Rule (146)  
Nuclear    
Asset Retirement Obligation [Line Items]    
Asset Retirement Obligation 3,351 3,976
Asset Retirement Obligation, Liabilities Settled (8)  
Asset Retirement Obligation, Revision of Estimate (738)  
Accretion Expense, Including Asset Retirement Obligations 121  
Non-Nuclear    
Asset Retirement Obligation [Line Items]    
Asset Retirement Obligation 6,184 $ 6,438
Asset Retirement Obligation, Liabilities Settled (188)  
Asset Retirement Obligation, Revision of Estimate (252)  
Accretion Expense, Including Asset Retirement Obligations $ 186  
v3.26.1
Debt (Details)
 3 Months Ended 9 Months Ended
Dec. 31, 2025
USD ($)
Jun. 30, 2026
USD ($)
Credit_facilities
Jun. 30, 2025
USD ($)
May 26, 2026
USD ($)
Sep. 30, 2025
USD ($)
Oct. 02, 2024
USD ($)
Debt Disclosure [Abstract]            
Net Exchange Gain from Currency Transaction, Noncurrent   $ 66,000,000     $ 59,000,000  
Short-Term Debt [Line Items]            
Short-Term Debt   500,000,000     0  
Unsecured Debt, Current   1,020,000,000     1,370,000,000  
Other Long-Term Debt, Current   75,000,000     49,000,000  
Debt, Current   1,595,000,000     1,419,000,000  
Schedule of Capitalization, Long-Term Debt [Line Items]            
Long-Term Power Bonds   19,599,000,000     20,628,000,000  
Other Long-Term Debt, Noncurrent   3,551,000,000     1,632,000,000  
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net   (156,000,000)     (167,000,000)  
Long-Term Debt, Excluding Current Maturities   22,994,000,000     22,093,000,000  
Debt, Long-Term and Short-Term, Combined Amount   24,589,000,000     23,512,000,000  
Debt Instrument, Redemption [Line Items]            
Repayments of Unsecured Debt   1,370,000,000 $ 1,022,000,000      
Repayments of Other Long-Term Debt   $ 29,000,000 $ 23,000,000      
Debt Instrument, Redemption, Description   1,399        
Percent of Par Value   100.00%        
Debt Instrument, Issued, Principal   $ 2,000,000,000        
Line of Credit Facility [Line Items]            
Letters of Credit Outstanding, Amount   6,000,000        
Borrowings Under U.S. Treasury Credit Facility   0        
Variable Interest Entity, Primary Beneficiary            
Debt Instrument, Redemption [Line Items]            
Debt and Lease Obligation       $ 2,000,000,000   $ 800,000,000
1995 E Global            
Debt Instrument, Redemption [Line Items]            
Repayments of Unsecured Debt   1,350,000,000        
2009 Series B            
Debt Instrument, Redemption [Line Items]            
Repayments of Unsecured Debt $ 1,000,000 $ 20,000,000        
Revolving Credit Facility            
Line of Credit Facility [Line Items]            
Number of Revolving Credit Facilities | Credit_facilities   3        
Line of Credit Facility, Current Borrowing Capacity   $ 2,500,000,000        
Long-Term Line of Credit   0        
Revolving Credit Facility 3   1,000,000,000        
Revolving Credit Facility 1   500,000,000        
Revolving Credit Facility 2   1,000,000,000        
Line of Credit Facility, Remaining Borrowing Capacity   2,065,000,000        
Long-term Line of Credit, Borrowings 3   0        
Long-term Line of Credit, Borrowings 1   0        
Long-Term Line of Credit, Borrowings 2   0        
Line of Credit Facility, Remaining Borrowing Capacity 3   864,000,000        
Line of Credit Facility, Remaining Borrowing Capacity 1   286,000,000        
Line of Credit Facility, Remaining Borrowing Capacity 2   915,000,000        
Letter of Credit            
Line of Credit Facility [Line Items]            
Letters of Credit Outstanding, Amount   435,000,000     $ 498,000,000  
Letters of Credit Outstanding, Amount 3   136,000,000        
Letters of Credit Outstanding, Amount 1   214,000,000        
Letters of Credit Outstanding, Amount 2   85,000,000        
Line of Credit            
Line of Credit Facility [Line Items]            
Line of Credit Facility, Current Borrowing Capacity   $ 150,000,000        
v3.26.1
Derivative Instruments and Hedging Activities (Details) - USD ($)
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Derivative Instruments, Gain (Loss) [Line Items]        
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax $ 7,000,000 $ 38,000,000 $ (5,000,000) $ 15,000,000
Gain (Loss) from Components Excluded from Assessment of Fair Value Hedge Effectiveness, Net     0  
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred     14,000,000  
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax 17,000,000 47,000,000 8,000,000 24,000,000
Interest Rate Swap        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (14,000,000) (11,000,000) (41,000,000) (33,000,000)
Unrealized Gain (Loss) on Derivatives     0  
Commodity Contract under FHP        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (45,000,000) (13,000,000) (39,000,000) (64,000,000)
Commodity Contract under FHP | Fuel        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (38,000,000) (3,000,000) (31,000,000) (12,000,000)
Commodity Contract under FHP | Purchased Power        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net $ (7,000,000) $ (10,000,000) $ (8,000,000) $ (52,000,000)
v3.26.1
Derivative Instruments and Hedging Activities (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Bond_issues
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
customers
Bond_issues
Jun. 30, 2025
USD ($)
customers
Sep. 30, 2025
USD ($)
Derivative [Line Items]          
Change in Unrealized Gains (Losses) on Interest Rate Derivatives $ 26 $ 6 $ 78 $ 141  
Derivative, Fair Value, Net $ 27   $ 27   $ 12
Number of Foreign Currency Derivatives Held | Bond_issues 2   2    
Associated Bond Issues Currency Exposure $ 400   $ 400    
Additional Collateral, Aggregate Fair Value 22   $ 22    
Number of Customers that Represent the Percent of Sales | customers     2 2  
Accounts Receivable, before Allowance for Credit Loss, Current $ 2,035   $ 2,035   $ 1,992
Moody's, A2 Rating          
Derivative [Line Items]          
Banking Counterparties Credit Rating     A2    
Moody's, B1 Rating          
Derivative [Line Items]          
Natural Gas Banking Counterparties Credit Rating     B1    
Moody's, A1 Rating          
Derivative [Line Items]          
Natural Gas Banking Counterparties Credit Rating     A1    
Customer Concentration Risk          
Derivative [Line Items]          
Two Largest Customer Percentage of Total Operating Revenue     1600.00% 1600.00%  
Commodity Contract          
Derivative [Line Items]          
Number of Price Risk Derivatives Held 39   39   53
Derivative, Nonmonetary Notional Amount 592,000,000   592,000,000   562,000,000
Derivative, Fair Value, Net $ 6   $ 6   $ 10
Derivative, Contract Term     9 years    
Commodity Contract under FHP          
Derivative [Line Items]          
Number of Price Risk Derivatives Held 285   285   295
Derivative, Nonmonetary Notional Amount 390,000,000   390,000,000   300,000,000
Derivative, Fair Value, Net $ (119)   $ (119)   $ (57)
Derivative, Contract Term     5 years    
250 Million Sterling Currency Swap          
Derivative [Line Items]          
Derivative, Fair Value, Net (43)   $ (43)   (47)
Expiration Date of Currency Swap     2032    
150 Million Sterling Currency Swap          
Derivative [Line Items]          
Derivative, Fair Value, Net $ (65)   $ (65)   $ (68)
Expiration Date of Currency Swap     2043    
v3.26.1
Derivative Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Derivatives, Fair Value [Line Items]    
Forward Contract Derivative Asset, at Fair Value $ 11 $ 16
Derivative, Fair Value, Net 27 12
250 Million Sterling Currency Swap    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (43) (47)
250 Million Sterling Currency Swap | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (39) (43)
250 Million Sterling Currency Swap | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (4) (4)
150 Million Sterling Currency Swap    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (65) (68)
150 Million Sterling Currency Swap | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (62) (65)
150 Million Sterling Currency Swap | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (3) (3)
$1.0 Billion Notational Interest Rate Swap    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (450) (526)
$1.0 Billion Notational Interest Rate Swap | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (411) (485)
$1.0 Billion Notational Interest Rate Swap | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (30) (13)
$1.0 Billion Notational Interest Rate Swap | Interest Payable, Current    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (9) (28)
$476 Million Notional    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (142) (172)
$476 Million Notional | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (129) (158)
$476 Million Notional | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (12) (5)
$476 Million Notional | Interest Payable, Current    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (1) (9)
Commodity Contract    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net 6 10
Commodity Contract | Other Long-Term Asset    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net 2 2
Commodity Contract | Other Current Assets    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net 11 14
Commodity Contract | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (4) (4)
Commodity Contract | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (3) (2)
Commodity Contract under FHP    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (119) (57)
Commodity Contract under FHP | Other Long-Term Asset    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net   8
Commodity Contract under FHP | Other Long-Term Liability    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (23) (8)
Commodity Contract under FHP | Accounts Payable    
Derivatives, Fair Value [Line Items]    
Derivative, Fair Value, Net (96) (57)
Fair Value, Inputs, Level 2    
Derivatives, Fair Value [Line Items]    
Forward Contract Derivative Asset, at Fair Value $ 11 $ 16
v3.26.1
Derivative Instruments and Hedging Activities (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Offsetting Assets [Line Items]    
Derivative Asset, Subject to Master Netting Arrangement, after Offset $ 13 $ 24
Derivative Liability, Subject to Master Netting Arrangement, Asset Offset 35 20
Derivative Liability, Subject to Master Netting Arrangement, after Offset 826 884
Commodity Contract    
Offsetting Assets [Line Items]    
Derivative Asset, Subject to Master Netting Arrangement, after Offset 13 16
Derivative Liability, Subject to Master Netting Arrangement, after Offset 7 6
Commodity Contract under FHP    
Offsetting Assets [Line Items]    
Derivative Asset, Subject to Master Netting Arrangement, after Offset 0 8
Derivative Asset, Subject to Master Netting Arrangement, before Offset 35 28
Derivative Liability, Subject to Master Netting Arrangement, after Offset 119 65
Interest Rate Swap    
Offsetting Assets [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset 592 698
Currency Swap    
Offsetting Assets [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset $ 108 $ 115
v3.26.1
Derivative Instruments and Hedging Activities (Details)
$ in Millions
Jun. 30, 2026
USD ($)
instrument
Sep. 30, 2025
USD ($)
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset $ 826 $ 884
Letters of Credit Outstanding, Amount $ 6  
Number of Interest Rate Swaps Secured by Collateral | instrument 1  
Credit Risk    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset $ 826  
Collateralized Securities    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, Collateral, Right to Reclaim Cash Not Offset 381  
Currency Swap    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset 108 115
Interest Rate Swap    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset 592 698
Commodity Contract    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, after Offset 7 6
Commodity Contract under FHP    
Offsetting Liabilities [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, before Offset 154 85
Derivative Liability, Subject to Master Netting Arrangement, after Offset 119 65
Interest Rate Swap    
Offsetting Liabilities [Line Items]    
Letters of Credit Outstanding, Amount $ 368 $ 442
v3.26.1
Fair Value Measures and Disclosures (Details)
$ in Millions
Jun. 30, 2026
USD ($)
years
Sep. 30, 2025
USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Investments $ 6,245 $ 5,573
Period of time where the investor contributes capital to an investment in a private partnership - minimum | years 3  
Period of time where the investor contributes capital to an investment in a private partnership - maximum | years 4  
Minimum Investment Period | years 10  
Number of readily available quoted exchange prices for the investments 0  
Derivative Credit Risk Valuation Adjustment, Derivative Assets $ 1  
Derivative Credit Risk Valuation Adjustment, Derivative Liabilities 2  
NDT    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Investments 4,200  
ART    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Long-Term Investments 1,900  
Private Equity Funds | NDT    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure 446  
Private Equity Funds | ART    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure 189  
Real Estate Funds | NDT    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure 143  
Real Estate Funds | ART    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure 87  
Private Credit | NDT    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure 154  
Private Credit | ART    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Commitments, Fair Value Disclosure $ 77  
v3.26.1
Fair Value Measures and Disclosures (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
NDT        
Gain (Loss) on Securities [Line Items]        
Unrealized Gain (Loss) on Investments $ 231 $ 200 $ 239 $ 133
Debt and Equity Securities, Unrealized Gain (Loss) 61 41 57 12
ART        
Gain (Loss) on Securities [Line Items]        
Unrealized Gain (Loss) on Investments 124 97 127 69
Debt and Equity Securities, Unrealized Gain (Loss) 19 10 21 5
SERP [Member]        
Gain (Loss) on Securities [Line Items]        
Unrealized Gain (Loss) on Investments 7 5 4 (1)
DCP        
Gain (Loss) on Securities [Line Items]        
Unrealized Gain (Loss) on Investments 2 2 1 0
RP        
Gain (Loss) on Securities [Line Items]        
Debt and Equity Securities, Unrealized Gain (Loss) $ 1 $ 1 $ 1 $ 1
v3.26.1
Fair Value Measures and Disclosures (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value $ 612 $ 473
Financial Instruments, Owned, Corporate Debt, at Fair Value 449 411
Financial Instruments, Owned, Mortgages, Mortgage-Backed and Asset-Backed Securities, at Fair Value 46 40
Institutional Mutual Funds 403 367
Forward Contract Derivative Asset, at Fair Value 11 16
Cash, Cash Equivalents, and Short-Term Investments 340 274
Financial Instruments, Owned, Physical Commodities, at Fair Value 13 16
Assets, Fair Value Disclosure 6,258 5,597
Foreign Currency Contracts, Liability, Fair Value Disclosure 108 115
Interest Rate Derivative Liabilities, at Fair Value 592 698
Commodity Contract Derivative Liabilities, Fair Value Disclosure 7 6
Liabilities, Fair Value Disclosure 826 884
Commingled Funds Measured at Net Asset Value 1,552 1,528
Long-Term Investments 6,245 5,573
Payable, Investment, Purchase 76 60
Secured Debt, Repurchase Agreements 55 124
Affiliated Entity    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Long-Term Investments 632 534
Commodity Contract under FHP    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Not Subject to Master Netting Arrangement   8
Derivative Liability, Not Subject to Master Netting Arrangement 119 65
Private Equity Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 1,037 875
Real Estate Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 500 467
Private Credit    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 301 278
Fair Value, Inputs, Level 1    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity Securities, FV-NI 994 844
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value 547 423
Financial Instruments, Owned, Corporate Debt, at Fair Value 0 0
Financial Instruments, Owned, Mortgages, Mortgage-Backed and Asset-Backed Securities, at Fair Value 0 0
Institutional Mutual Funds 403 367
Forward Contract Derivative Asset, at Fair Value 0 0
Cash, Cash Equivalents, and Short-Term Investments 85 111
Financial Instruments, Owned, Physical Commodities, at Fair Value 0 0
Assets, Fair Value Disclosure 2,029 1,745
Foreign Currency Contracts, Liability, Fair Value Disclosure 0 0
Interest Rate Derivative Liabilities, at Fair Value 0 0
Commodity Contract Derivative Liabilities, Fair Value Disclosure 0 0
Liabilities, Fair Value Disclosure 0 0
Commingled Funds Measured at Net Asset Value 0 0
Long-Term Investments 2,029 1,745
Fair Value, Inputs, Level 1 | Commodity Contract under FHP    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Not Subject to Master Netting Arrangement   0
Derivative Liability, Not Subject to Master Netting Arrangement 0 0
Fair Value, Inputs, Level 1 | Private Equity Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 1 | Real Estate Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 1 | Private Credit    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 2    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity Securities, FV-NI 0 0
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value 65 50
Financial Instruments, Owned, Corporate Debt, at Fair Value 449 411
Financial Instruments, Owned, Mortgages, Mortgage-Backed and Asset-Backed Securities, at Fair Value 46 40
Institutional Mutual Funds 0 0
Forward Contract Derivative Asset, at Fair Value 11 16
Cash, Cash Equivalents, and Short-Term Investments 255 163
Financial Instruments, Owned, Physical Commodities, at Fair Value 13 16
Assets, Fair Value Disclosure 839 704
Foreign Currency Contracts, Liability, Fair Value Disclosure 108 115
Interest Rate Derivative Liabilities, at Fair Value 592 698
Commodity Contract Derivative Liabilities, Fair Value Disclosure 7 6
Liabilities, Fair Value Disclosure 826 884
Commingled Funds Measured at Net Asset Value 0 0
Long-Term Investments 826 680
Fair Value, Inputs, Level 2 | Commodity Contract under FHP    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Not Subject to Master Netting Arrangement   8
Derivative Liability, Not Subject to Master Netting Arrangement 119 65
Fair Value, Inputs, Level 2 | Private Equity Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 2 | Real Estate Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 2 | Private Credit    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 3    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Equity Securities, FV-NI 0 0
Financial Instruments, Owned, US Government and Agency Obligations, at Fair Value 0 0
Financial Instruments, Owned, Corporate Debt, at Fair Value 0 0
Financial Instruments, Owned, Mortgages, Mortgage-Backed and Asset-Backed Securities, at Fair Value 0 0
Institutional Mutual Funds 0 0
Forward Contract Derivative Asset, at Fair Value 0 0
Cash, Cash Equivalents, and Short-Term Investments 0 0
Financial Instruments, Owned, Physical Commodities, at Fair Value 0 0
Assets, Fair Value Disclosure 0 0
Foreign Currency Contracts, Liability, Fair Value Disclosure 0 0
Interest Rate Derivative Liabilities, at Fair Value 0 0
Commodity Contract Derivative Liabilities, Fair Value Disclosure 0 0
Liabilities, Fair Value Disclosure 0 0
Commingled Funds Measured at Net Asset Value 0 0
Long-Term Investments 0 0
Fair Value, Inputs, Level 3 | Commodity Contract under FHP    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Derivative Asset, Not Subject to Master Netting Arrangement   0
Derivative Liability, Not Subject to Master Netting Arrangement 0 0
Fair Value, Inputs, Level 3 | Private Equity Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 3 | Real Estate Funds    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment 0 0
Fair Value, Inputs, Level 3 | Private Credit    
Fair Value Measurement Inputs and Valuation Techniques [Line Items]    
Alternative Investment $ 0 $ 0
v3.26.1
Fair Value Measures and Disclosures (Details) - USD ($)
$ in Millions
Jun. 30, 2026
Sep. 30, 2025
Reported Value Measurement    
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items]    
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount $ 57 $ 57
Financing Receivable, after Allowance for Credit Loss 114 86
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount 66 66
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 15 16
Unsecured Debt 20,463 21,831
Other Long-Term Debt 3,626 1,681
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount 58 57
Financing Receivable, after Allowance for Credit Loss 108 80
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount 72 74
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 16 18
Unsecured Debt 20,292 21,967
Other Long-Term Debt $ 3,704 $ 1,696
v3.26.1
Other Income and Expenses (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Other Income and Expenses [Abstract]        
Interest Income (Expense), Nonoperating $ 10 $ 10 $ 32 $ 31
External Services 8 8 18 22
Gain (Loss) on Investments 12 10 14 8
Other Nonoperating Income (4) (1) (25) (3)
Other Nonoperating Income (Expense) $ 34 $ 29 89 $ 58
Increase in Other Income, Net     31  
Insured Event, Gain (Loss)     $ (28)  
v3.26.1
Compensation Related Costs, Retirement Benefits (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Remaining Employer Contributions     $ 75  
Pension Plan        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Service Cost $ 5 $ 8 17 $ 24
Defined Benefit Plan, Interest Cost 136 131 408 394
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (124) (126) (371) (379)
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) (22) (22) (67) (67)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) 34 44 103 131
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits 0 0 0 0
Net Periodic Benefit Cost as Actuarially Determined 29 35 90 103
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) 29 35 90 103
Other Postretirement Benefits Plan        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Service Cost 3 3 7 9
Defined Benefit Plan, Interest Cost 4 3 12 12
Defined Benefit Plan, Expected Return (Loss) on Plan Assets 0 0 0 0
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) (4) (4) (13) (13)
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) (2) 0 (4) 0
Defined Benefit Plan, Cost of Providing Special and Contractual Termination Benefits 0 1 0 1
Net Periodic Benefit Cost as Actuarially Determined 1 3 2 9
Defined Benefit Plan, Plan Assets, Contributions by Employer     5  
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) $ 1 $ 2 2 $ 8
Other Pension Plan        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     225  
Defined Benefit Plan, Plan Assets, Monthly Contributions by Employer     25  
Other Pension Plan | Minimum        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     300  
Rebates        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     11  
SERP [Member]        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     96  
401K        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Defined Benefit Plan, Plan Assets, Contributions by Employer     $ 17  
v3.26.1
Research and Development (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended 48 Months Ended
Jun. 30, 2026
Jun. 30, 2025
Jun. 30, 2026
Jun. 30, 2025
Sep. 30, 2026
Research and Development [Abstract]          
Research and Development Arrangement, Contract to Perform for Others, Costs Incurred, Gross $ 0 $ 0 $ 2 $ 10  
Letters of Credit Outstanding, Amount $ 6   $ 6    
Forecast          
Research and Development [Abstract]          
Other Research and Development Expense         $ 93
Research and Development Arrangement, Contract to Perform for Others [Line Items]          
Other Research and Development Expense         $ 93
v3.26.1
Commitment and Contingencies (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Dec. 31, 2025
Jun. 30, 2026
USD ($)
Procedures
Insurance_layers
reactors
Sep. 30, 2025
USD ($)
Loss Contingencies [Line Items]      
The U.S. Congress is Required to Take Action if These Layers are Exhausted | Insurance_layers   2  
Nuclear Liability Insurance   $ 500  
Assessment from Licensees for Each Licensed Reactor   166  
Maximum Assessment per Nuclear Incident   1,200  
Nuclear Accident Assessment Limitation per Year per Unit   $ 25  
Number of Licensed Reactors in US | reactors   95  
Total Amount of Protection Available   $ 16,300  
Amount of Insurance Available for Loss at Any One Site (Bottom Range)   2,100  
Maximum Amount of Retrospective Premiums   116  
Maximum Indemnity if a Covered Accident Tasks or Keeps a Nuclear Unit Offline   490  
Retrospective Premiums   52  
Asset Retirement Obligation   $ 9,535 $ 10,414
Number of Procedures for Determining Estimates for the Costs of Nuclear Decommissioning | Procedures   2  
Accrual for Environmental Loss Contingencies, Gross   $ 2 8
Decrease in ARO Due to Final CCR Rule   (146)  
Other Commitments [Line Items]      
Contractual Obligation   $ 1,300  
Long-Term Purchase Commitment, Period   20 years  
Environmental Remediation      
Loss Contingencies [Line Items]      
Accrual for Environmental Loss Contingencies, Significant Assumptions 319 million 347 million  
Nuclear      
Loss Contingencies [Line Items]      
Asset Retirement Obligation   $ 3,351 3,976
Non-Nuclear      
Loss Contingencies [Line Items]      
Asset Retirement Obligation   $ 6,184 $ 6,438
v3.26.1
Revenue from Contract with Customer (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Units
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
Units
Jun. 30, 2025
USD ($)
Sep. 30, 2025
USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Percent of Sales of Electricity to LPCs 91.00% 91.00% 91.00% 91.00%  
Regulated Operating Revenue $ 3,389 $ 3,261 $ 9,877 $ 9,613  
Electric Revenue 3,390 3,260 9,872 9,612  
Regulated and Unregulated Operating Revenue 3,442 3,306 $ 10,037 9,758  
Percent of Wholesale Credit Offered     310.00%    
Bill Credits for LTA $ (54) (53) $ (167) $ (164)  
Percent of Generation Flexibility Credit     5.00%    
Number of LPCs Signed LTA | Units 148   148    
NES's % of Operating Revenues     800.00% 800.00%  
MLGW's % of Operating Revenues     800.00% 800.00%  
Paid Economic Incentives $ 78 80 $ 225 $ 248  
Unpaid Economic Incentives (190)   $ (190)   $ (193)
Rate Increase Limit     1000.00%    
Local Power Company          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 3,084 2,967 $ 9,001 8,782  
Industries Directly Served          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 273 259 776 734  
Federal Agencies and Other          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 34 36 102 100  
Johnsonville Aeroderivative CT Units          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Pre-commercial Ops - Capitalized Revenue (2) (1) (2) (3)  
Off-System Sales          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Unregulated Operating Revenue 1 2 7 4  
Other Operating Segment          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Unregulated Operating Revenue 53 45 160 145  
ALABAMA          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 498 477 1,474 1,428  
GEORGIA          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 76 74 245 242  
KENTUCKY          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 214 209 627 605  
MISSISSIPPI          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 310 310 866 886  
NORTH CAROLINA          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 20 18 72 67  
TENNESSEE          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue 2,260 2,161 6,548 6,345  
VIRGINIA          
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]          
Regulated Operating Revenue $ 12 $ 11 $ 40 $ 39  
v3.26.1
Revenue from Contract with Customer (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Units
Jun. 30, 2026
USD ($)
customers
Units
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Number of LPCs Signed LTA 148 148
Total Number of LPCs 153 153
Total Long Duration Contract Revenue Recognition | $ 3,084 9,001
Total Percentage of Operating Revenues 89.60% 89.70%
Number of LPCs Signed Flexibility Agreement 112 112
Number of Customers with Unique Termination Years | customers   1
20-Year Termination Notice    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Number of LPCs Signed LTA 148 148
Revenues | $ $ 2,642 $ 7,794
Percentage of Total Operating Revenues 76.80% 77.70%
5-Year Termination Notice    
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]    
Number of LPCs Signed LTA 5 5
Revenues | $ $ 442 $ 1,207
Percentage of Total Operating Revenues 12.80% 12.00%
v3.26.1
Segment Reporting (Details)
$ in Millions
 3 Months Ended 9 Months Ended
Jun. 30, 2026
USD ($)
Jun. 30, 2025
USD ($)
Jun. 30, 2026
USD ($)
Reportable_segment
Jun. 30, 2025
USD ($)
Segment Reporting [Line Items]        
Number of Reportable Segments | Reportable_segment     1  
Regulated Operating Revenue $ 3,389 $ 3,261 $ 9,877 $ 9,613
Regulated and Unregulated Operating Revenue 3,442 3,306 10,037 9,758
Segment Reporting, Other Segment Item, Amount (12) (2) (21) 21
Costs and Expenses 3,135 3,094 9,072 9,013
Net Income (Loss) 307 212 965 745
Segment Reporting, Long-Lived Asset, Expenditure for Addition 1,000 1,100 3,000 3,700
Utilities Operating Expense, Fuel Used 685 589 1,882 1,674
Utilities Operating Expense, Purchased Power 563 550 1,561 1,516
Utilities Operating Expense, Maintenance, Operations, and Other Costs and Expenses 964 922 2,695 2,771
Utilities Operating Expense, Depreciation and Amortization 448 572 1,530 1,691
Interest and Debt Expense 316 307 933 880
Utilities Operating Expense, Taxes 171 156 492 460
Johnsonville Aeroderivative CT Units        
Segment Reporting [Line Items]        
Pre-commercial Ops - Capitalized Revenue (2) (1) (2) (3)
Corporate Segment        
Segment Reporting [Line Items]        
Regulated Operating Revenue 2,249 2,215 6,804 6,688
Corporate Segment and Other Operating Segment        
Segment Reporting [Line Items]        
Regulated Operating Revenue 1,141 1,045 3,068 2,924
Other Operating Segment        
Segment Reporting [Line Items]        
Unregulated Operating Revenue 53 45 160 145
Off-System Sales        
Segment Reporting [Line Items]        
Unregulated Operating Revenue $ 1 $ 2 $ 7 $ 4