TENNESSEE VALLEY AUTHORITY, 10-K filed on 11/15/2021
Annual Report
v3.21.2
DEI Document
shares in Millions, $ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
shares
Document Information [Line Items]  
Entity Registrant Name TENNESSEE VALLEY AUTHORITY
Entity Central Index Key 0001376986
Current Fiscal Year End Date --09-30
Entity Filer Category Non-accelerated Filer
Document Type 10-K
Document Fiscal Year Focus 2021
Document Fiscal Period Focus FY
Amendment Flag false
Entity Common Stock, Shares Outstanding | shares 0
Entity Emerging Growth Company false
Entity Shell Company false
Entity Well-known Seasoned Issuer No
Entity Public Float | $ $ 0
Document Transition Report false
Entity File Number 000-52313
Entity Tax Identification Number 62-0474417
Entity Address, State or Province TN
Entity Address, City or Town Knoxville
Entity Address, Address Line One 400 W. Summit Hill Drive
Local Phone Number 632-2101
City Area Code (865)
Entity Address, Postal Zip Code 37902 (Zip Code)
Entity Interactive Data Current Yes
ICFR Auditor Attestation Flag true
Entity Incorporation, State or Country Code X1
Entity Current Reporting Status Yes
Document Annual Report true
Document Period End Date Sep. 30, 2021
Entity Small Business false
Entity Voluntary Filers No
v3.21.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Operating revenues      
Electric revenue $ 10,357 $ 10,104 $ 11,159
Other revenue 146 145 159
Revenue from sales of electricity 10,503 10,249 11,318
Operating expenses      
Fuel 1,737 1,584 1,896
Purchased power 984 880 1,007
Operating and maintenance 2,890 2,720 3,090
Depreciation and amortization 1,533 1,826 1,973
Tax equivalents 514 528 541
Total operating expenses 7,658 7,538 8,507
Operating income 2,845 2,711 2,811
Other income (expense), net 13 36 62
Defined Benefit Plan, Other Cost (Credit) 258 253 258
Interest expense      
Interest expense 1,088 1,142 1,198
Net income (loss) 1,512 1,352 1,417
ALABAMA      
Operating revenues      
Electric revenue 1,508 1,439 1,593
GEORGIA      
Operating revenues      
Electric revenue 254 249 270
KENTUCKY      
Operating revenues      
Electric revenue 655 624 691
MISSISSIPPI      
Operating revenues      
Electric revenue 984 941 1,063
NORTH CAROLINA      
Operating revenues      
Electric revenue 66 65 74
TENNESSEE      
Operating revenues      
Electric revenue 6,841 6,740 7,419
VIRGINIA      
Operating revenues      
Electric revenue $ 42 $ 42 $ 45
v3.21.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Current assets    
Cash and Cash Equivalents, at Carrying Value $ 499 $ 500
Accounts receivable, net 1,566 1,529
Inventories, net 950 1,003
Regulatory assets 196 130
Other current assets 287 84
Total current assets 3,498 3,246
Property, plant, and equipment    
Completed plant 66,411 64,970
Less accumulated depreciation (34,663) (33,550)
Net completed plant 31,748 31,420
Construction in progress 2,458 2,139
Nuclear fuel 1,566 1,504
Finance lease, Right-of-Use-Asset 692 516
Total property, plant, and equipment, net 36,464 35,579
Long-term Investments 4,053 3,198
Regulatory and other long-term assets    
Regulatory assets 7,956 10,245
Operating Lease, Right-of-Use Asset 165 232
Other long-term assets 320 325
Total regulatory and other long-term assets 8,441 10,802
Total assets 52,456 52,825
Current liabilities    
Accounts payable and accrued liabilities 2,215 1,844
Accrued interest 282 298
Asset Retirement Obligation, Current 266 345
Leaseback obligations, current 25 198
Regulatory liabilities 340 141
Short-term debt, net of discounts 780 57
Total Current maturities of power bonds issued at par 1,028 1,787
Current maturities of long-term debt of variable interest entities issued at par 43 41
Current maturities of notes payable 0 0
Total current liabilities 4,979 4,711
Other liabilities    
Post-retirement and post-employment benefit obligations 5,045 6,617
Asset retirement obligations 6,736 6,440
Other long-term liabilities 2,041 2,548
Leaseback obligations, noncurrent 0 25
Non-current regulatory liabilities 40 23
Total other liabilities 14,549 16,178
Long-term debt, net    
Long-term power bonds, net 17,457 17,956
Long-term debt of variable interest entities, net 1,006 1,048
Total long-term debt, net 18,463 19,004
Total liabilities 37,991 39,893
Proprietary capital    
Power program appropriation investment 258 258
Power program retained earnings 13,689 12,177
Total power program proprietary capital 13,947 12,435
Nonpower programs appropriation investment, net 540 548
Accumulated other comprehensive income (loss) (22) (51)
Total proprietary capital 14,465 12,932
Total liabilities and proprietary capital 52,456 52,825
Finance Lease, Liability, Noncurrent $ 687 $ 525
v3.21.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents $ 518 $ 521 $ 322
Cash flows from operating activities      
Net income (loss) 1,512 1,352 1,417
Adjustments to reconcile net income (loss) to net cash provided by operating activities      
Depreciation and amortization (including amortization of debt issuance costs and premiums/discounts) 1,555 1,848 1,993
Amortization of nuclear fuel cost 383 388 379
Non-cash retirement benefit expense 333 324 314
Recognition of Deferred Revenue 0 0 10
Regulatory asset amount expensed 72 21 261
Changes in current assets and liabilities      
Accounts receivable, net (18) (259) 40
Inventories and other current assets, net 42 12 87
Accounts payable and accrued liabilities 178 (38) (155)
Accrued interest (18) 1 (8)
Pension contributions (306) (305) (307)
Settlements of asset retirement obligations 242 (114) 89
Other, net (91) 46 (52)
Net cash provided by operating activities 3,256 3,636 3,720
Cash flows from investing activities      
Construction expenditures (1,963) (1,643) (1,700)
Nuclear fuel expenditures (354) (342) (474)
Purchases of investments (50) (49) (48)
Loans and other receivables      
Repayments 9 7 11
Other, net 27 20 (22)
Net cash used in investing activities (2,338) (2,015) (2,243)
Long-term debt      
Issues of power bonds 500 997 0
Redemptions and repurchases of power bonds (1,860) (1,427) (1,035)
Payments on debt of variable interest entities (41) (39) (38)
Redemptions of Notes Payable 0 23 46
Short-term debt issues (redemptions), net 723 (865) (294)
Finance Lease, Principal Payments 250 55 43
Financing costs, net (2) (4) 0
Other, net 9 (6) (21)
Net cash (used in) provided by financing activities (921) (1,422) (1,477)
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Excluding Exchange Rate Effect   199 0
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect, Total (3)    
Advances on loans receivable $ (7) $ (8) $ (10)
v3.21.2
CONSOLIDATED STATEMENTS OF CHANGES IN PROPRIETARY CAPITAL - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Balance at beginning of year $ 12,932 $ 11,625 $ 10,283
Net income (loss) 1,512 1,352 1,417
Total other comprehensive income (loss) 29 (39) (69)
Return on power program appropriation investment (4) (6) (6)
New Accounting Standard - CECL (4)    
Balance at end of year 14,465 12,932 11,625
Power Program Appropriation Investment      
Balance at beginning of year 258 258 258
Net income (loss) 0 0 0
Total other comprehensive income (loss) 0 0 0
Return on power program appropriation investment 0 0 0
New Accounting Standard - CECL 0    
Balance at end of year 258 258 258
Power Program Retained Earnings      
Balance at beginning of year 12,177 10,823 9,404
Net income (loss) 1,520 1,360 1,425
Total other comprehensive income (loss) 0 0 0
Return on power program appropriation investment (4) (6) (6)
New Accounting Standard - CECL (4) 0  
Balance at end of year 13,689 12,177 10,823
Nonpower Programs Appropriation Investment, Net      
Balance at beginning of year 548 556 564
Net income (loss) (8) (8) (8)
Total other comprehensive income (loss) 0 0 0
Return on power program appropriation investment 0 0 0
New Accounting Standard - CECL 0 0  
Balance at end of year 540 548 556
Accumulated Other Comprehensive Income (Loss) Net Gains (Losses) on Cash Flow Hedges      
Balance at beginning of year (51) (12) 57
Net income (loss) 0 0 0
Total other comprehensive income (loss) 29 (39) (69)
Return on power program appropriation investment 0 0 0
New Accounting Standard - CECL 0    
Balance at end of year $ (22) $ (51) $ (12)
v3.21.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) Statement - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 1,512 $ 1,352 $ 1,417
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax 126 (1) (114)
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax (97) (38) (45)
Total other comprehensive income (loss) 29 (39) (69)
Total comprehensive income (loss) $ 1,541 $ 1,313 $ 1,348
v3.21.2
Supplemental Cash Flow Information
 12 Months Ended
Sep. 30, 2021
Supplemental Cash Flow Information [Abstract]  
Supplemental Cash Flow Information Supplemental Cash Flow Information
    Interest paid was $1.1 billion, $1.1 billion, and $1.2 billion for 2021, 2020, and 2019, respectively. These amounts differ from interest expense in certain years due to the timing of payments. There was no interest capitalized in 2021, 2020, or 2019.

    Construction in progress and Nuclear fuel expenditures included in Accounts payable and accrued liabilities at September 30, 2021, 2020, and 2019 were $637 million, $398 million, and $324 million, respectively, and are excluded from the Statements of Consolidated Cash Flows for the years ended September 30, 2021, 2020, and 2019 as non-cash investing activities. 

    Excluded from the Statements of Consolidated Cash Flows for the year ended September 30, 2021, were non-cash investing and financing activities of $233 million related primarily to an increase in lease assets and liabilities incurred for a finance lease that was amended in March 2021. Excluded from the Statement of Consolidated Cash Flows for the years ended September 30, 2020 and 2019, as non-cash financing activities were $394 million related to lease obligations incurred primarily in connection with a PPA and $10 million related to lease obligations incurred for leased equipment, respectively. See Note 8 — Leases for further information regarding TVA's finance leases. Also excluded from the Statement of Consolidated Cash Flows for the year ended September 30, 2020, were $80 million and $73 million as non-cash financing and investing activities, respectively, due to derecognition of the Paradise pipeline financing obligation and asset.

    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.
v3.21.2
Supplemental Cash Flow Information - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Supplemental Cash Flow Information      
Interest paid $ 1,100 $ 1,100  
Capital lease obligations incurred   394 $ 10
Non-cash financing activities   80  
Non-cash investing activities   73  
Interest Paid, Excluding Capitalized Interest, Operating Activities     1,200
Lease assets obtained in exchange for lease obligations - finance 233 394  
Accounts payable and accrued liabilities      
Supplemental Cash Flow Information      
Construction in progress and Nuclear fuel expenditures $ 637 $ 398 $ 324
v3.21.2
Summary of Significant Accounting Policies [Text Block]
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies
General

The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt.  TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates.

Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people.

    TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development.

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

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

Fiscal Year

TVA's fiscal year ends September 30.  Years (2021, 2020, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.

Cost-Based Regulation

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

Basis of Presentation

    The accompanying consolidated financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 11 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, including impacts from the Coronavirus Disease 2019 ("COVID-19") pandemic, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.

Cash, Cash Equivalents, and Restricted Cash

    Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to
compliance with certain environmental regulations. See Note 23 — Commitments and Contingencies — Legal Proceedings — Environmental Agreements.

    The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:
Cash, Cash Equivalents, and Restricted Cash
At September 30
 20212020
Cash and cash equivalents$499 $500 
Restricted cash and cash equivalents included in Other long-term assets19 21 
Total cash, cash equivalents, and restricted cash$518 $521 

    Due to higher volatility in the financial markets associated with the COVID-19 pandemic, TVA increased its balance of Cash and cash equivalents beginning in March 2020. TVA may hold higher cash balances from time to time in response to potential market volatility or other business conditions.

Allowance for Uncollectible Accounts

As described in Note 2 — Impact of New Accounting Standards and Interpretations, TVA adopted Financial Instruments - Credit Losses on October 1, 2020, using a modified retrospective method through a cumulative-effect adjustment to retained earnings. The standard, Current Expected Credit Losses ("CECL"), requires TVA to recognize an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amounts. TVA has reviewed the current portfolio of financial receivables and developed a methodology to reasonably measure the estimate of credit losses for each major financial receivable type. The appropriateness of the allowance is evaluated at the end of each reporting period. TVA continues to monitor the impact of the COVID-19 pandemic on accounts and loans receivable balances to evaluate the allowance for uncollectible accounts.

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

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

The allowance for uncollectible accounts was less than $1 million at both September 30, 2021 and 2020, for trade accounts receivable.  Additionally, loans receivable of $99 million and $105 million at September 30, 2021 and 2020, 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 $4 million and less than $1 million at September 30, 2021 and 2020, respectively. The increase in allowances for uncollectible accounts is due to the adoption of CECL. See Note 2 — Impact of New Accounting Standards and Interpretations.

Revenues

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

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

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

Emission Allowances.  TVA has emission allowances for sulfur dioxide ("SO2") and nitrogen oxide ("NOx") which are accounted for as inventory.  The cost of specific allowances used each month is charged to operating expense based on tons of SO2 and NOx emitted during the respective compliance periods.  Allowances granted to TVA by the Environmental Protection Agency ("EPA") are recorded at zero cost.

Allowance for Inventory Obsolescence.  TVA reviews materials and supplies inventories by category and usage on a periodic basis.  Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data.  TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence.

Property, Plant, and Equipment, and Depreciation

    Property, Plant, and Equipment. Additions to plant are recorded at cost, which includes direct and indirect costs.  The cost of current repairs and minor replacements is charged to operating expense.  Nuclear fuel, which is included in Property, plant, and equipment, is valued using the average cost method for raw materials and the specific identification method for nuclear fuel in a reactor.  Amortization of nuclear fuel in a reactor is calculated on a units-of-production basis and is included in fuel expense. When property, plant, and equipment is retired, accumulated depreciation is charged for the original cost of the assets. Gains or losses are only recognized upon the sale of land or an entire operating unit.

    Depreciation. TVA accounts for depreciation of its properties using the composite depreciation convention of accounting.  Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years. During the first quarter of 2022, TVA implemented a new depreciation study related to its completed plant.  The new study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. Implementation of the study is expected to result in an increase to depreciation and amortization expense of approximately $369 million during 2022. This estimate represents the impact of implementing the new study only and does not include any potential impact of other possible changes, including additions to or retirements of net completed plant, that may occur during 2022.

Depreciation expense for the years ended September 30, 2021, 2020, and 2019 was $1.4 billion, $1.6 billion, and $1.8 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 2.28 percent for 2021, 2.74 percent for 2020, and 3.09 percent for 2019.  Average depreciation rates by asset class are as follows:
Property, Plant, and Equipment Depreciation Rates
At September 30
(percent)
202120202019
Asset Class
Nuclear2.38 2.38 2.38 
Coal-fired(1)
1.95 3.62 4.96 
Hydroelectric1.60 1.60 1.61 
Gas and oil-fired2.98 3.04 3.00 
Transmission1.34 1.34 1.34 
Other7.12 7.26 7.16 
Note
(1) The rates include the acceleration of depreciation related to retiring certain coal-fired units.
    
    Coal-Fired. As a result of TVA's decision to idle or retire certain units since the previous depreciation study, TVA recognized $136 million, $387 million, and $566 million in accelerated depreciation expense related to the units during the years ended September 30, 2021, 2020, and 2019, respectively. Accelerated depreciation is based on the remaining useful life of the asset at the time the decision is made to idle or retire a unit.

Reacquired Rights. Property, plant, and equipment includes intangible reacquired rights, net of amortization, of $184 million and $192 million as of September 30, 2021 and 2020, respectively, related to the purchase of residual interests from lease/leaseback agreements of certain combustion turbine units ("CTs"). Reacquired rights are amortized over the estimated useful life of the underlying CTs. Amortization expense was $8 million for all years 2021, 2020, and 2019.

Software Costs.  TVA capitalizes certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in Property, plant, and equipment on the Consolidated Balance Sheets and are generally amortized over seven years.  At September 30, 2021 and 2020, unamortized computer software costs totaled $27 million and $54 million, respectively.  Amortization expense related to capitalized computer software costs was $38 million, $42 million, and $38 million for 2021, 2020, and 2019, respectively.  Software costs that do not meet capitalization criteria are expensed as incurred.

Impairment of Assets.  TVA evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.  For long-lived assets, TVA bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, regulatory approval and ability to set rates at levels that allow for recoverability of the assets, and other external market conditions or factors that may be present.  If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, TVA determines whether an impairment has occurred based on an estimate of undiscounted cash flows attributable to the asset as compared with the carrying value of the asset.  If an impairment has occurred, the amount of the impairment recognized is measured as the excess of the asset's carrying value over its fair value.  Additionally, TVA regularly evaluates construction projects.  If the project is canceled or deemed to have no future economic benefit, the project is written off as an asset impairment or, upon TVA Board approval, reclassified as a regulatory asset. See Note 7 — Plant Closures.

Leases

    TVA recognizes a lease asset and lease liability for leases with terms of greater than 12 months. Lease assets represent TVA's right to use an underlying asset for the lease term, and lease liabilities represent TVA's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.  TVA has certain lease agreements that include variable lease payments that are based on energy production levels. These variable lease payments are not included in the measurement of the lease assets or lease liabilities but are recognized in the period in which the expenses are incurred.
    
    While not specifically structured as leases, certain power purchase agreements ("PPAs") are deemed to contain a lease of the underlying generating units when the terms convey the right to control the use of the assets. Amounts recorded for these leases are generally based on the amount of the scheduled capacity payments due over the remaining terms of the PPAs, the terms of which vary. The total lease obligations included in Accounts payable and accrued liabilities and lease liabilities related to these agreements were $464 million and $143 million for finance and operating leases, respectively, at September 30, 2021.

    TVA has agreements with lease and non-lease components and has elected to account for the components separately. Consideration is allocated to lease and non-lease components generally based on relative standalone selling prices.

    TVA has lease agreements which include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in TVA's lease measurements.
    
    Leases with an initial term of 12 months or less, which do not include an option to extend the initial term of the lease to greater than 12 months that TVA is reasonably certain to exercise, are not recorded on the Consolidated Balance Sheets at September 30, 2021.
    Operating leases are recognized on a straight-line basis over the term of the lease agreement. Rent expense associated with short-term leases and variable leases is recorded in Operating and maintenance expense, Fuel expense, or Purchased power expense on the Consolidated Statements of Operations. Expenses associated with finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the related lease asset on the Consolidated Statements of Operations.
Decommissioning Costs

    TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets.  These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets.  Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration.  Revisions to the estimates of asset retirement obligations ("AROs") are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially.  Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset.  See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations.

Down-blend Offering for Tritium

TVA, the U.S. Department of Energy ("DOE"), and certain nuclear fuel contractors have entered into agreements, referred to as the Down-blend Offering for Tritium ("DBOT"), that provide for the production, processing, and storage of low-enriched uranium that is to be made using surplus DOE highly enriched uranium and other uranium.  Low-enriched uranium can be fabricated into fuel for use in a nuclear power plant.  Production of the low-enriched uranium began in 2019 and is contracted to continue through October 2027.  Beginning October 2027, contract activity will consist of storage and flag management.  Flag management ensures that the uranium is of U.S. origin, free from foreign obligations, and unencumbered by policy restrictions, so that it can be used in connection with the production of tritium. Under the terms of the interagency agreement between the DOE and TVA, the DOE will reimburse TVA for a portion of the costs of converting the highly enriched uranium to low-enriched uranium. Since 2019, TVA has received $137 million in reimbursements from the DOE. At September 30, 2021, TVA recorded $11 million in Accounts receivable, net related to this agreement.

Investment Funds

    Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 23 — Commitments and Contingencies — Decommissioning Costs), the Supplemental Executive Retirement Plan ("SERP") (see Note 22 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan), and the Deferred Compensation Plan ("DCP"). The Nuclear Decommissioning Trust ("NDT") holds funds primarily for the ultimate decommissioning of TVA's nuclear power plants. The Asset Retirement Trust ("ART") holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance. The NDT, ART, SERP, and DCP funds are all classified as trading.

Insurance

Although TVA uses private companies to administer its healthcare plans for eligible active and retired employees not covered by Medicare, TVA does not purchase health insurance.  Third-party actuarial specialists assist TVA in determining certain liabilities for self-insured claims.  TVA recovers the costs of claims through power rates and through adjustments to the participants' contributions to their benefit plans.  These liabilities are included in Other liabilities on the Consolidated Balance Sheets.

The Federal Employees' Compensation Act ("FECA") governs liability to employees for service-connected injuries.  TVA purchases excess workers' compensation insurance above a self-insured retention.

    In addition to excess workers' compensation insurance, TVA purchases property and liability insurance for nuclear assets and operations. See Note 23 — Commitments and Contingencies — Nuclear Insurance. TVA also purchases liability insurance and property insurance for certain conventional (non-nuclear) assets, and other insurance policies when commercially feasible.

    The insurance policies are subject to the terms and conditions of the specific policy, including deductibles or self-insured retentions. To the extent insurance would not provide either a partial or total recovery of the costs associated with a loss, TVA would have to recover any such costs through other means, including through power rates.

Research and Development Costs

Research and development costs are expensed when incurred.  TVA's research programs include those related to power delivery technologies, emerging technologies (clean energy, renewables, distributed resources, and energy efficiency), technologies related to generation (fossil fuel, nuclear, and hydroelectric), and environmental technologies.

Tax Equivalents

TVA is not subject to federal income taxation. In addition, neither TVA nor its property, franchises, or income is subject to taxation by states or their subdivisions. The TVA Act requires TVA to make payments to states and counties in which TVA
conducts its power operations and in which TVA has acquired power properties previously subject to state and local taxation.   The total amount of these payments is five percent of gross revenues from sales of power during the preceding year, excluding sales or deliveries to other federal agencies and off-system sales with other utilities, with a provision for minimum payments under certain circumstances. TVA calculates tax equivalent expense by subtracting the prior year fuel cost-related tax equivalent regulatory asset or liability from the payments made to the states and counties during the current year and adding back the current year fuel cost-related tax equivalent regulatory asset or liability. Fuel cost-related tax equivalent expense is recognized in the same accounting period in which the fuel cost-related revenue is recognized.

Maintenance Costs
TVA records maintenance costs and repairs related to its property, plant, and equipment on the Consolidated Statements of Operations as they are incurred except for the recording of certain regulatory assets for retirement and removal costs.
v3.21.2
Impact of New Accounting Standards and Interpretations
 12 Months Ended
Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]  
Accounting Standards Update and Change in Accounting Principle [Text Block] Impact of New Accounting Standards and Interpretations
    The following are accounting standard updates issued by the Financial Accounting Standards Board ("FASB") that TVA adopted during 2021:
Financial Instruments - Credit Losses
DescriptionThis guidance eliminates the probable initial recognition threshold in current GAAP and, instead, requires an allowance to be recorded for all expected credit losses for certain financial assets that are not measured at fair value. The allowance for credit losses is based on historical information, current conditions, and reasonable and supportable forecasts. The new standard also makes revisions to the other than temporary impairment model for available-for-sale debt securities.
Effective Date for TVAOctober 1, 2020
Effect on the Financial Statements or Other Significant Matters
TVA adopted this standard on a modified retrospective method through a cumulative-effect adjustment to retained earnings on October 1, 2020. TVA recorded an initial transition adjustment of $4 million to retained earnings. The adoption of this standard did not materially impact TVA's financial condition, results of operations, or cash flows.
Fair Value Measurement Disclosure
DescriptionThis guidance changes certain disclosure requirements for fair value measurements. It removes certain disclosure requirements, such as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of the transfers between levels; and the valuation processes for Level 3 fair value measurements.  Some disclosure requirements are added, such as the change in unrealized gains and losses included in other comprehensive income for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements.
Effective Date for TVAOctober 1, 2020
Effect on the Financial Statements or Other Significant MattersAdoption of this standard did not have a material impact on TVA's financial condition, results of operations, or cash flows.
The following accounting standards have been issued but as of September 30, 2021, were not effective and had not been adopted by TVA:

Reference Rate Reform
DescriptionThis guidance provides temporary optional expedients and exceptions to the guidance in GAAP on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates, such as the Secured Overnight Financing Rates.
Effective Date for TVAThe new standard is effective for adoption at any time between March 12, 2020, and December 31, 2022.
Effect on the Financial Statements or Other Significant MattersTVA continues to review this standard and evaluate the impact of using an alternative reference rate instead of LIBOR in its interest rate swap contracts. TVA does not expect the adoption of this standard to have a material impact on its financial condition, results of operations, or cash flows.

Lessor-Certain Leases with Variable Lease Payments
Description
This guidance amends the lessor lease classification for leases that have variable lease payments that are not based on an index or rate. If the lease meets the criteria for classification as either (1) a sale-type or (2) direct finance lease, and application of the lease guidance would result in recognition of a day-one selling loss, then the lease should be classified as an operating lease.

There are two transition methods provided by the guidance for entities that have adopted the standard:
•Retrospective application to leases that commenced or were modified after the beginning of the period in which the standard was adopted, or
•Prospective application to leases that commence or are modified subsequent to the date that amendments in the guidance are first applied.
Effective Date for TVAThis new standard is effective for TVA's interim and annual reporting periods beginning October 1, 2022. Early adoption is permitted, and TVA adopted this standard on October 1, 2021, on a prospective basis.
Effect on the Financial Statements or Other Significant MattersAdoption of this standard did not have a material impact on TVA's financial condition, results of operations, or cash flows.
v3.21.2
Accounts Receivable, Net
 12 Months Ended
Sep. 30, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable, Net
3.  Accounts Receivable, Net

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:
Accounts Receivable, Net
At September 30
 20212020
Power receivables$1,480 $1,401 
Other receivables86 128 
Accounts receivable, net(1)
$1,566 $1,529 
Note
(1) Allowance for uncollectible accounts was less than $1 million at September 30, 2021 and 2020, and therefore is not represented in the table above. The allowance at September 30, 2021 includes the impact from adopting CECL on October 1, 2020.
In response to the COVID-19 pandemic, the TVA Board approved the Public Power Support and Stabilization program in 2020. Through this program, TVA offered up to $1.0 billion of credit support to local power company customers ("LPCs") that demonstrated the need for temporary financial relief, through the deferral of a portion of LPCs' wholesale power payments owed to TVA. The program ended on December 31, 2020, with a total of $1 million of credit support approved under the program. The $1 million was fully repaid in the second quarter of 2021.
v3.21.2
Inventories, Net
 12 Months Ended
Sep. 30, 2021
Inventory, Net [Abstract]  
Inventories, Net
4.  Inventories, Net

The table below summarizes the types and amounts of TVA's inventories:
Inventories, Net 
At September 30
 20212020
Materials and supplies inventory$775 $770 
Fuel inventory198 253 
Renewable energy certificates inventory, net12 15 
Allowance for inventory obsolescence(35)(35)
Inventories, net$950 $1,003 
v3.21.2
Net Completed Plant
 12 Months Ended
Sep. 30, 2021
Property, Plant and Equipment, Net, by Type [Abstract]  
Property, Plant, and Equipment and Intangible Assets Net Completed Plant
Net completed plant consisted of the following:
Net Completed Plant
At September 30
 20212020
 CostAccumulated Depreciation 
Net		CostAccumulated DepreciationNet
Coal-fired(1)(2)
$19,319 $14,357 $4,962 $18,613 $13,944 $4,669 
Gas and oil-fired6,076 1,824 4,252 6,010 1,696 4,314 
Nuclear26,024 12,632 13,392 25,741 12,141 13,600 
Transmission8,597 3,215 5,382 8,283 3,140 5,143 
Hydroelectric3,525 1,135 2,390 3,410 1,090 2,320 
Other electrical plant1,940 1,101 839 1,981 1,146 835 
Intangible software3 2 1 3 2 1 
Multipurpose dams900 388 512 900 381 519 
Other stewardship27 9 18 29 10 19 
Total$66,411 $34,663 $31,748 $64,970 $33,550 $31,420 
Notes
(1) TVA recognized accelerated depreciation as a result of the decision to idle or retire certain units. See Note 7 — Plant Closures.
(2) In 2020, TVA recorded approximately $1.1 billion in upward revisions to asset retirement costs for coal-fired assets. See Note 13 — Asset Retirement Obligations.
v3.21.2
Other Long-Term Assets [Text Block]
 12 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Long-Term Assets
9.  Other Long-Term Assets

The table below summarizes the types and amounts of TVA's other long-term assets:
Other Long-Term Assets 
At September 30
 2021
2020(1)
Loans and other long-term receivables, net$96 $100 
EnergyRight® receivables, net
57 69 
Prepaid long-term service agreements44 42 
Commodity contract derivative assets40 23 
Other83 91 
Total other long-term assets$320 $325 
Note
(1) At September 30, 2020, $21 million previously classified as Restricted cash and cash equivalents (a component of Other long-term assets) and $11 million previously classified as Prepaid capacity payments (a component of Other long-term assets) have been reclassified to Other (a component of Other long-term assets) to conform with current year presentation.

Loans and Other Long-Term Receivables. TVA's loans and other long-term receivables primarily consist of economic development loans for qualifying organizations and a receivable for reimbursements to recover the cost of providing long-term, on-site storage for spent nuclear fuel. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2021 and 2020, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $3 million and $5 million, respectively.    

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 five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2021 and 2020, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was approximately $15 million and $18 million, respectively. See Note 12 — Other Long-Term Liabilities for information regarding the associated financing obligation.

In response to the COVID-19 pandemic, customers experiencing financial hardship could request a deferral of EnergyRight® loan payments for a period of up to six months. The deferral option began in April 2020 and ended October 31, 2020. All EnergyRight® loans approved for the deferral period resumed payments in the second quarter of 2021. The deferred loans did not accrue interest during the deferral months and totaled less than $1 million.

Allowance for Loan Losses. As described in Note 2 — Impact of New Accounting Standards and Interpretations, TVA adopted CECL on October 1, 2020, to determine its allowance for loan loss. The allowance for loan loss is an estimate of expected credit losses, measured over the estimated life of the loan receivables, that considers reasonable and supportable forecasts of future economic conditions in addition to information about historical experience and current conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.

The allowance components, which consist of a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans. Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.

Allowance Components
At September 30, 2021
(in millions)
EnergyRight® loan reserve
$1 
Economic development loan collective reserve1 
Economic development loan specific loan reserve2 
Total allowance for loan losses$4 

Prepaid Long-Term Service Agreements. TVA has entered into various long-term service agreements for major
maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these
arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under
certain of these agreements, payments made exceed the value of parts received and services rendered. The current and long-term portions of the resulting prepayments are reported in Other current assets and Other long-term assets, respectively, on
TVA's Consolidated Balance Sheets. At September 30, 2021 and 2020, prepayments of $12 million and $3 million,
respectively, were recorded in Other current assets.
Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. See Note 16 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives for a discussion of TVA's commodity contract derivatives.
v3.21.2
Regulatory Assets and Liabilities [Text Block]
 12 Months Ended
Sep. 30, 2021
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Assets and Liabilities Regulatory Assets and Liabilities
Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  Components of regulatory assets and regulatory liabilities are summarized in the table below. 
Regulatory Assets and Liabilities 
At September 30
 20212020
Current regulatory assets  
Unrealized losses on interest rate derivatives$114 $114 
Unrealized losses on commodity derivatives3 4 
Fuel cost adjustment receivable79 12 
Total current regulatory assets196 130 
Non-current regulatory assets  
Deferred pension costs and other post-retirement benefits costs3,668 5,193 
Non-nuclear decommissioning costs2,653 2,512 
Unrealized losses on interest rate derivatives1,122 1,506 
Nuclear decommissioning costs363 896 
Other non-current regulatory assets150 138 
Total non-current regulatory assets7,956 10,245 
Total regulatory assets$8,152 $10,375 
Current regulatory liabilities  
Fuel cost adjustment tax equivalents$130 $115 
Unrealized gains on commodity derivatives210 26 
Total current regulatory liabilities340 141 
Non-current regulatory liabilities  
Unrealized gains on commodity derivatives40 23 
Total non-current regulatory liabilities40 23 
Total regulatory liabilities$380 $164 

    Deferred Pension Costs and Other Post-retirement Benefit Costs.  TVA measures the funded status of its pension and post-retirement ("OPEB") benefit plans at each year-end balance sheet date. The funded status is measured as the difference between the fair value of plan assets and the benefit obligations at the measurement date for each plan. The changes in funded status are actuarial gains and losses that are recognized on TVA's Consolidated Balance Sheets by adjusting the recognized pension and OPEB liabilities, with the offset deferred as a regulatory asset or a regulatory liability. In an unregulated environment, these deferred costs would be recognized as an increase or decrease to accumulated other comprehensive income (loss) ("AOCI").

    "Incurred cost" is a cost arising from cash paid out or an obligation to pay for an acquired asset or service, and a loss from any cause that has been sustained and for which payment has been or must be made. In the cases of pension and OPEB
costs, the unfunded obligation represents a projected liability to the employee for services rendered, and thus it meets the definition of an incurred cost. Therefore, amounts that otherwise would be charged to AOCI for these costs are recorded as a regulatory asset or liability since TVA has historically recovered pension and OPEB expense in rates. Through historical and current year expense included in ratemaking, the TVA Board has demonstrated the ability and intent to include pension and OPEB costs in allowable costs and in rates for ratemaking purposes. As a result, it is probable that future revenue will result from inclusion of the pension and OPEB regulatory assets or regulatory liability in allowable costs for ratemaking purposes.

    The regulatory asset and liability are classified as long-term, which is consistent with the pension and OPEB liabilities, and are not amortized to the consolidated statements of operations over a specified recovery period. They are adjusted either upward or downward each year in conjunction with the adjustments to the unfunded pension liability and OPEB liability, as calculated by the actuaries. Ultimately the regulatory asset and liability will be recognized in the consolidated statements of operations in the form of pension and OPEB expense as the actuarial liabilities are eliminated in future periods. See Note 22 — Benefit Plans — Obligations and Funded Status.

    Additionally on October 1, 2014, TVA began recognizing pension costs as a regulatory asset to the extent that the amount calculated under GAAP as pension expense differs from the amount TVA contributes to the pension plan. As a result of previous plan design changes, future contributions are expected to exceed the expense calculated under U.S. GAAP. Accordingly, TVA will discontinue this regulatory accounting practice once all such deferred costs have been recovered, at which time it will recognize pension costs in accordance with U.S. GAAP.

Non-Nuclear Decommissioning Costs.  Non-nuclear decommissioning costs include: (1) certain deferred charges related to the future closure and decommissioning of TVA's non-nuclear long-lived assets, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's ART, and (4) certain other deferred charges under the accounting rules for AROs.  TVA has established the ART to more effectively segregate, manage, and invest funds to help meet future non-nuclear AROs.  The funds from the ART may be used, among other things, to pay the costs related to the future closure and retirement of non-nuclear long-lived assets under various legal requirements.  These future costs can be funded through a combination of investment funds set aside in the ART, future earnings on those investment funds, and future cash contributions to the ART.  In 2021, TVA recovered in rates an amount determined by the average life of debt financed for non-nuclear decommissioning expenditures, assuming a 20-year debt service period, and contributions to the ART. Deferred charges will be recovered in rates based on an analysis of the expected expenditures, contributions, and investment earnings required to recover the decommissioning costs. Recovery of future decommissioning costs is dependent upon the future earnings of the ART, timing of decommissioning activities, and changes in decommissioning estimates. The regulatory asset is classified as long-term as amounts recovered are used to service debt or to contribute to the ART, which is restricted for future decommissioning costs.

Unrealized Losses on Interest Rate Derivatives.  TVA uses regulatory accounting treatment to defer the unrealized gains and losses on certain interest rate derivative contracts. When amounts in these contracts are realized, the resulting gains or losses are included in the ratemaking formula.  The unrealized losses on these interest rate derivatives are recorded on TVA's Consolidated Balance Sheets as current and non-current regulatory assets, and the related realized gains or losses, if any, are recorded on TVA's Consolidated Statements of Operations when the contracts settle. A portion of certain unrealized gains and losses will be amortized into earnings over the remaining lives of the contracts. Gains and losses on interest rate derivatives that are expected to be realized within the next year are included as a current regulatory asset or liability on TVA's Consolidated Balance Sheet.

Due to changing interest rates in the financial markets associated with the COVID-19 pandemic, TVA experienced unrealized losses related to its derivative instruments for the year ended September 30, 2020. TVA does not recognize unrealized gains and losses from the investment portfolios and derivative instruments within earnings but rather defers all such gains and losses within a regulatory liability or asset in accordance with its accounting policy. See Note 16 — Risk Management Activities and Derivative Transactions and Note 17 — Fair Value Measurements.

Nuclear Decommissioning Costs.  Nuclear decommissioning costs include: (1) certain deferred charges related to the future closure and decommissioning of TVA's nuclear generating units under the Nuclear Regulatory Commission ("NRC") requirements, (2) recognition of changes in the liability, (3) recognition of changes in the value of TVA's NDT, and (4) certain other deferred charges under the accounting rules for AROs.  These future costs can be funded through a combination of investment funds set aside in the NDT and ART and future earnings on those investment funds. For 2021, TVA recovered in rates a portion of the contributions to the ART that are expected to settle liabilities included in the nuclear ARO. Deferred charges will be recovered in rates based on the analysis of expected expenditures, contributions, and investment earnings required to recover the decommissioning costs.  See Note 1 — Summary of Significant Accounting Policies — Investment Funds.  Recovery of future decommissioning costs is dependent upon the future earnings of the NDT and ART, timing of decommissioning activities, and changes in decommissioning estimates. The regulatory asset is classified as long-term as amounts recovered are contributed to the NDT or the ART, which are restricted for future decommissioning costs.

Unrealized Gains (Losses) on Commodity Derivatives.  TVA enters into certain derivative contracts for natural gas that require the physical delivery of the contracted quantity of the commodity. Unrealized gains (losses) on natural gas purchase contracts, included as part of unrealized gains (losses) on commodity derivatives, relate to the mark-to-market ("MtM") valuation of natural gas purchase contracts.  During the fourth quarter of 2020, TVA discontinued derivative accounting for forward coal contracts because these contracts no longer meet the criteria of net settlement. As a result, the associated net regulatory assets
were derecognized. The natural gas purchase contracts qualify as derivative contracts but do not qualify for cash flow hedge accounting treatment.  As a result, TVA recognizes the changes in the market value of these derivative contracts as a regulatory liability or asset.  This treatment reflects TVA's ability and intent to recover the cost of these commodity contracts on a settlement basis for ratemaking purposes through the fuel cost adjustment. TVA recognizes the actual cost of fuel received under these contracts in fuel expense at the time the fuel is used to generate electricity.  These contracts expire at various times through 2024.  Unrealized gains and losses on contracts with a maturity of less than one year are included as a current regulatory asset or liability on TVA's Consolidated Balance Sheets.  See Note 16 — Risk Management Activities and Derivative Transactions.

Fuel Cost Adjustment Receivable.  The fuel cost adjustment provides a mechanism to alter rates monthly to reflect changing fuel and purchased power costs. There is typically a lag between the occurrence of a change in fuel and purchased power costs and the reflection of the change in fuel rates.  Balances in the fuel cost adjustment regulatory accounts represent over-collected or under-collected revenues that offset fuel and purchased power costs, and the fuel rate is designed to recover or refund the balance in less than one year.

Other Non-Current Regulatory Assets. Other non-current regulatory assets consist of the following:

    Deferred Lease Asset and Other Financing Obligations. For certain leases, TVA recognized the initial capital lease and other financing asset and liability at inception of the lease or other obligation. However, the annual expense recognized in rates is equal to the annual payments, which differs from GAAP treatment. This practice results in TVA's asset balances being higher than they otherwise would have been under GAAP, with the difference representing a regulatory asset related to the lease or other financing obligation. These costs will be amortized over the respective lease or other financing obligation terms as payments are made. As the costs associated with this regulatory asset are not currently being considered in rates and the asset is expected to increase over the next year, the regulatory asset has been classified as long-term.

Debt Reacquisition Costs.  Reacquisition expenses, call premiums, and other related costs, such as unamortized debt issue costs associated with redeemed Bond issues, are deferred and amortized (accreted) on a straight-line basis over the weighted average life of TVA's debt portfolio. Because timing of additional reacquisition expenses and changes to the weighted average life of the debt are uncertain, the regulatory asset is classified as long-term.

Retirement Removal Costs.  Retirement removal costs, net of salvage, that are not legally required are recognized as a regulatory asset. Net removal costs are amortized over a one-year period subsequent to completion of the removal activities. TVA treats this regulatory asset as long-term in its entirety primarily because it relates to assets that are long-term in nature.
Fuel Cost Adjustment Tax Equivalents.  The fuel cost adjustment includes a provision related to the current funding of the future payments TVA will make.  As TVA records the fuel cost adjustment, five percent of the calculation that relates to a future asset or liability for tax equivalent payments is recorded as a current regulatory liability and paid or refunded in the following year.
v3.21.2
Variable Interest Entities (Text Block)
 12 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Variable Interest Entities
11.  Variable Interest Entities

A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.

John Sevier VIEs

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

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

Southaven VIE

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

The membership interests held by SHLLC were purchased with proceeds from the issuance of $40 million of secured notes (the "SHLLC notes") and are subject to mandatory redemption pursuant to a schedule of amortizing, semi-annual payments due each February 15 and August 15, with a final payment due on August 15, 2033. The payment dates for the mandatorily redeemable membership interests are the same as those of the SHLLC notes, and the payment amounts are sufficient to provide returns on, as well as returns of, capital until the investment has been repaid to SHLLC in full. The rate of return on investment to SHLLC is 7.0 percent, which is reflected as interest expense in the consolidated statements of operations. SHLLC is required to pay a pre-determined portion of the return on investment to Seven States Southaven, LLC ("SSSL") on each lease payment date as agreed in SHLLC's formation documents (the "Seven States Return"). The current and long-term portions of the Membership interests of VIE subject to mandatory redemption are included in Accounts payable and accrued liabilities and Other long-term liabilities, respectively.

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

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

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

    The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, and SCCG as of September 30, 2021 and 2020, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
At September 30
 20212020
Current liabilities 
Accrued interest$10 $10 
Accounts payable and accrued liabilities3 3 
Current maturities of long-term debt of variable interest entities43 41 
Total current liabilities
56 54 
Other liabilities
Other long-term liabilities20 23 
Long-term debt, net
Long-term debt of variable interest entities, net1,006 1,048 
Total liabilities$1,082 $1,125 

Interest expense of $52 million, $54 million, and $56 million related to debt of VIEs and membership interests of variable interest entity subject to mandatory redemption is included on the Consolidated Statements of Operations for the years ended September 30, 2021, 2020, and 2019, respectively.

At September 30, 2021, TVA had outstanding debt of VIEs of $1.0 billion and outstanding membership interests subject to mandatory redemption (including current portion) of $23 million issued by one of its VIEs of which it is the primary beneficiary. The following table sets forth TVA's future payments at September 30, 2021:
Maturities Due in the Year Ending September 30
 20222023202420252026Thereafter
Long-term debt of VIEs including current maturities(1)
$43 $40 $36 $37 $39 $861 
Membership interests of variable interest entity subject to mandatory redemption3 2 1 1 1 15 
Note
(1) Long-term debt of VIEs does not include non-cash item of unamortized debt issue costs of $7 million.

Creditors of the VIEs do not have any recourse to the general credit of TVA. TVA does not have any obligations to provide financial support to the VIEs other than as prescribed in the terms of the agreements related to these transactions.
v3.21.2
Other Long-Term Liabilities
 12 Months Ended
Sep. 30, 2021
Other Liabilities, Noncurrent [Abstract]  
Other Long-Term Liabilities Other Long-Term Liabilities
Other long-term liabilities consist primarily of liabilities related to certain derivative agreements as well as for environmental remediation liabilities and liabilities under agreements related to compliance with certain environmental regulations. See Note 8 — Leases, Note 13 — Asset Retirement Obligations, and Note 16 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives. The table below summarizes the types and amounts of Other long-term liabilities:
Other Long-Term Liabilities
At September 30
 2021
2020(1)
Interest rate swap liabilities$1,524 $1,927 
Operating lease liabilities122 171 
Currency swap liabilities76 123 
EnergyRight® financing obligation66 78 
Long-term deferred compensation42 38 
Long-term deferred revenue42 38 
Accrued long-term service agreements29 56 
Other140 117 
Total other long-term liabilities$2,041 $2,548 
Note
(1) At September 30, 2020, $38 million and $38 million previously classified as Other (a component of Other long-term liabilities) have been reclassified to Long-term deferred compensation (a component of Other long-term liabilities) and Long-term deferred revenue (a component of Other long-term liabilities), respectively, to conform with current year presentation.
Interest Rate Swap Liabilities. TVA uses interest rate swaps to fix variable short-term debt to a fixed rate. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets. At September 30, 2021 and 2020, the carrying amount of the interest rate swap liabilities reported in Accounts payable and accrued liabilities and Accrued interest was $115 million and $114 million, respectively. See Note 16 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Interest Rate Derivatives for information regarding the interest rate swap liabilities. As of September 30, 2021, Interest rate swap liabilities decreased $402 million as compared to September 30, 2020, primarily due to an increase in market interest rates along with net settlement payments made during the year.

Operating Lease Liabilities. TVA's operating leases consist primarily of railcars, equipment, real estate/land, and power generating facilities. At September 30, 2021 and 2020, the current portion of TVA's operating leases reported in Accounts payable and accrued liabilities was $40 million and $63 million, respectively. See Note 8 — Leases for more information regarding leases.

Currency Swap Liabilities. To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges. The values of these derivatives are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At September 30, 2021 and 2020, the carrying amount of the currency swap liabilities reported in Accounts payable and accrued liabilities was $7 million and $86 million, respectively. See Note 16 — Risk Management Activities and Derivative Transactions — Cash Flow Hedging Strategy for Currency Swaps for more information regarding the currency swap liabilities.

    EnergyRight® Financing Obligation. TVA purchases certain loans receivable from its LPCs in association with the EnergyRight® program. The current and long-term portions of the resulting financing obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets. At September 30, 2021 and 2020, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was approximately $16 million and $19 million, respectively. See Note 9 — Other Long-Term Assets for information regarding the associated loans receivable.

In response to the COVID-19 pandemic, customers experiencing financial hardship could request a deferral of EnergyRight® loan payments for a period of up to six months. The deferral option began in April 2020 and ended October 31, 2020. All EnergyRight® loans approved for the deferral period resumed payments in the second quarter of 2021. The deferred loans did not accrue interest during the deferral months and totaled less than $1 million.

Long-Term Deferred Compensation. TVA provides compensation arrangements to engage and retain certain employees, both executive and non-executive, which are designed to provide participants with the ability to defer compensation to future periods. The current and long-term portions are reported in Accounts payable and accrued liabilities and Other long-
term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At September 30, 2021 and 2020, the current amount of deferred compensation reported in Accounts payable and accrued liabilities was $51 million and $47 million, respectively.

Long-Term Deferred Revenue. Long-term deferred revenue represents payments received that exceed services rendered resulting in the deferral of revenue. This long-term portion represents amounts that will not be recognized within the next 12 months primarily related to fiber and transmission agreements. The current and long-term portions of the deferral are reported in Accounts Payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At September 30, 2021 and 2020, the current amount of deferred revenue was $10 million and $11 million, respectively, and is included in Accounts payable and accrued liabilities.

    Accrued Long-Term Service Agreement. TVA has entered into various long-term service agreements for major
maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these
arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under
certain of these agreements, parts received and services rendered exceed payments made. The current and long-term portions
of the resulting obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on
TVA's Consolidated Balance Sheets. At September 30, 2021 and 2020, related liabilities of $28 million and $15 million, respectively, were recorded in Accounts payable and accrued liabilities.
v3.21.2
Asset Retirement Obligations
 12 Months Ended
Sep. 30, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations Asset Retirement Obligations
    During the year ended September 30, 2021, TVA's total ARO liability increased $217 million.

    To estimate its decommissioning obligation related to its nuclear generating stations, TVA uses a probability-weighted, discounted cash flow model which, on a unit-by-unit basis, considers multiple outcome scenarios that include significant estimations and assumptions. Those assumptions include (1) estimates of the cost of decommissioning; (2) the method of decommissioning and the timing of the related cash flows; (3) the license period of the nuclear plant, considering the probability of license extensions; (4) cost escalation factors; and (5) the credit adjusted risk free rate to measure the obligation at the present value of the future estimated costs. TVA has ascribed probabilities to two different decommissioning methods related to its nuclear decommissioning obligation estimate: the DECON method and the SAFSTOR method. The DECON method requires radioactive contamination to be removed from a site and safely disposed of or decontaminated to a level that permits the site to be released for unrestricted use shortly after it ceases operation. The SAFSTOR method allows nuclear facilities to be placed and maintained in a condition that allows the facilities to be safely stored and subsequently decontaminated to levels that permit release for unrestricted use.

    TVA bases its nuclear decommissioning estimates on site-specific cost studies. These cost studies are updated for each of TVA's nuclear units at least every five years. TVA plans to complete new cost studies for its nuclear units in 2022.

    TVA also has decommissioning obligations related to its non-nuclear generating sites, ash impoundments, transmission substation and distribution assets, and certain general facilities. To estimate its decommissioning obligation related to these assets, TVA uses estimations and assumptions for the amounts and timing of future expenditures and makes judgments concerning whether or not such costs are considered a legal obligation. Those assumptions include (1) estimates of the costs of decommissioning, (2) the method of decommissioning and the timing of the related cash flows, (3) the expected retirement date of each asset, (4) cost escalation factors, and (5) the credit adjusted risk free rate to measure the obligation at the present value of the future estimated costs. TVA bases its decommissioning estimates for each asset on its identified preferred closure method.

The revisions in non-nuclear estimates increased $191 million for the year ended September 30, 2021. This increase was primarily driven by revisions of approximately $122 million to certain coal combustion residuals ("CCR") closure liabilities at Shawnee Fossil Plant ("Shawnee"), Paradise, Colbert Fossil Plant, Cumberland Fossil Plant, and Gallatin Fossil Plant ("Gallatin") resulting from revised engineering estimates for construction costs, new vendor bids, modified closure designs, and expected costs associated with post-closure care of the closed areas. CCR ARO liabilities associated with groundwater well monitoring also increased approximately $69 million due to expansion in the scope of recurring activities including measuring, modeling, and reporting. In addition, TVA's use of a new CCR landfill at Shawnee and expansion of landfill acreage used at Gallatin resulted in new obligations of $30 million and $13 million, respectively.

    The revisions in non-nuclear estimates increased $1.1 billion for the year ended September 30, 2020. In November 2019, the Tennessee Department of Environment and Conservation ("TDEC") released amendments to its regulations that govern solid waste disposal facilities, including TVA's active CCR facilities covered by a solid waste disposal permit and those which closed pursuant to a TDEC approved closure plan. Such facilities are generally subject to a 30-year post-closure care period during which the owner or operator must undertake certain activities, including monitoring and maintaining the facility. The amendments, among other things, add an additional 50-year period after the end of the post-closure care period, require TVA to submit recommendations as to what activities must be performed during this 50-year period to protect human health and the environment, and require TVA to submit revised closure plans every 10 years. This regulatory revision resulted in an increase of $129 million, of which $38 million was related to operating CCR facilities and $91 million was related to inactive or closed CCR facilities. In June 2020, based on recent project cost data and estimates, TVA revised its AROs for closure-by-removal of certain
CCR facilities at Allen Fossil Plant, resulting in an increase to AROs of $273 million. In September 2020, TVA completed an engineering review of its cost estimates to close the ash pond complex at Gallatin, resulting in an increase of $173 million due to expected cost increases for excavation, disposal, and other activities required in a closure-by-removal project. Also in September 2020, TVA completed a study of its plant decommissioning obligations and CCR post-closure care and monitoring obligations. TVA increased its plant decommissioning obligations by $19 million, primarily due to asbestos and hazardous material abatement costs. TVA increased its CCR post-closure care and monitoring AROs primarily as a result of expected cost increases to monitor groundwater and maintain CCR areas after closure as well as increases in expected acreage to maintain after closure, totaling $460 million.
    
    Additionally, during the years ended September 30, 2021 and 2020, both the nuclear and non-nuclear liabilities were increased by periodic accretion, partially offset by settlement projects that were conducted during these periods. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During 2021, 2020, and 2019, $72 million, $169 million, and $144 million, respectively, of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 10 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 17 — Fair Value Measurements — Investment Funds and Note 23 — Commitments and Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.
Asset Retirement Obligation Activity
 NuclearNon-NuclearTotal
Balance at September 30, 2019$3,136 $2,480 $5,616 
Settlements(1)(113)(114)
Revisions in estimate— 1,077 1,077 
Accretion (recorded as regulatory asset)143 63 206 
Balance at September 30, 20203,278 3,507 6,785 
(1)
Settlements(11)(231)(242)
Revisions in estimate12 191 203 
Additional obligations— 43 43 
Accretion (recorded as regulatory asset)149 64 213 
Balance at September 30, 2021$3,428 $3,574 $7,002 
(1)
Note
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Debt and Other Obligations
 12 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
General

The TVA Act authorizes TVA to issue Bonds in an amount not to exceed $30.0 billion at any time.  At September 30, 2021, TVA had only two types of Bonds outstanding: power bonds and discount notes.  Power bonds have maturities between one year and 50 years, and discount notes have maturities of less than one year.  Power bonds and discount notes are both issued pursuant to Section 15d of the TVA Act and pursuant to the Basic Tennessee Valley Authority Power Bond Resolution adopted by the TVA Board on October 6, 1960, as amended on September 28, 1976, October 17, 1989, and March 25, 1992 (the "Basic Resolution").  Bonds are not obligations of the U.S., and the U.S. does not guarantee the payments of principal or interest on Bonds.

Power bonds and discount notes rank on parity and have first priority of payment from net power proceeds, which are defined as the remainder of TVA's gross power revenues after deducting the costs of operating, maintaining, and administering its power properties and tax equivalent payments, but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds from the sale or other disposition of any power facility or interest therein.

TVA considers its scheduled rent payments under its leaseback transactions, as well as its scheduled payments under its lease financing arrangements involving John Sevier CCF and Southaven CCF, as costs of operating, maintaining, and administering its power properties. Costs of operating, maintaining, and administering TVA's power properties have priority over
TVA's payments on the Bonds.  Once net power proceeds have been applied to payments on power bonds and discount notes as well as any other Bonds that TVA may issue in the future that rank on parity with or subordinate to power bonds and discount notes, Section 2.3 of the Basic Resolution provides that the remaining net power proceeds shall be used only for (1) minimum payments into the U.S. Treasury required by the TVA Act as repayment of, and as a return on, the Power Program Appropriation Investment; (2) investment in power system assets; (3) additional reductions of TVA's capital obligations; and (4) other lawful purposes related to TVA's power business.

The TVA Act and the Basic Resolution each contain two bond tests: the rate test and the bondholder protection test.  Under the rate test, TVA must charge rates for power which will produce gross revenues sufficient to provide funds for, among other things, debt service on outstanding Bonds.  As of September 30, 2021, TVA was in compliance with the rate test. See Note 1 — Summary of Significant Accounting Policies — General.  Under the bondholder protection test, TVA must, in successive five-year periods, use an amount of net power proceeds at least equal to the sum of (1) the depreciation accruals and other charges representing the amortization of capital expenditures and (2) the net proceeds from any disposition of power facilities for either the reduction of its capital obligations (including Bonds and the Power Program Appropriation Investment) or investment in power assets. TVA met the bondholder protection test for the five-year period ended September 30, 2020, and must next meet the bondholder protection test for the five-year period ending September 30, 2025.

Secured Debt of VIEs

On August 9, 2013, SCCG issued secured notes totaling $360 million that bear interest at a rate of 3.846 percent. The SCCG notes require amortizing semi-annual payments on each February 15 and August 15, and mature on August 15, 2033. Also on August 9, 2013, SCCG issued $40 million of membership interests subject to mandatory redemption. The proceeds from the secured notes issuance and the issuance of the membership interests were paid to TVA in accordance with the terms of the Southaven head lease. See Note 11 — Variable Interest Entities — Southaven VIE. TVA used the proceeds from the transaction primarily to fund the acquisition of the Southaven CCF from SSSL.

On January 17, 2012, JSCCG issued secured notes totaling $900 million in aggregate principal amount that bear interest at a rate of 4.626 percent. Also on January 17, 2012, Holdco issued secured notes totaling $100 million that bear interest at a rate of 7.1 percent. The JSCCG notes and the Holdco notes require amortizing semi-annual payments on each January 15 and July 15, and mature on January 15, 2042. The Holdco notes require a $10 million balloon payment upon maturity. See Note 11 — Variable Interest Entities — John Sevier VIEs. TVA used the proceeds from the transaction to meet its requirements under the TVA Act.

Secured debt of VIEs, including current maturities, outstanding at September 30, 2021 and 2020 totaled $1.0 billion and $1.1 billion, respectively.

Secured Notes

    On September 20, 2017, TVA acquired two entities, in an asset acquisition, designed to administer rent payments TVA makes under certain of its lease/leaseback arrangements. On November 14, 2001, the entities issued secured notes totaling $272 million that had an interest rate of 5.572 percent and required amortizing semi-annual payments on each May 1 and November 1 with a maturity date of May 1, 2020. In 2017, TVA assumed these secured notes in the acquisition at a fair value of $74 million. The secured notes of the entities were paid in full in 2020.

Short-Term Debt

    The following table provides information regarding TVA's short-term borrowings:
Short-term Borrowings
At September 30
 202120202019
Gross amount outstanding - discount notes$780 $57 $922 
Weighted average interest rate - discount notes0.03 %0.06 %2.15 %
Put Options

TVA has two issues of Putable Automatic Rate Reset Securities ("PARRS") outstanding.  After a fixed-rate period of five years, the coupon rate on the PARRS may automatically be reset downward under certain market conditions on an annual basis.  The coupon rate reset on the PARRS is based on a calculation.  For both series of PARRS, the coupon rate will reset downward on the reset date if the rate calculated is below the then-current coupon rate on the Bond.  The calculation dates, potential reset dates, and terms of the calculation are different for each series.  The coupon rate on the 1998 Series D PARRS may be reset on June 1 (annually) if the sum of the five-day average of the 30-Year Constant Maturity Treasury ("CMT") rate for the week ending the last Friday in April, plus 94 basis points, is below the then-current coupon rate.  The coupon rate on the 1999 Series A PARRS may be reset on May 1 (annually) if the sum of the five-day average of the 30-Year CMT rate for the week ending the last Friday in March, plus 84 basis points, is below the then-current coupon rate.  The coupon rates may only be reset downward, but investors may request to redeem their Bonds at par value in conjunction with a coupon rate reset for a limited period of time prior to the reset dates under certain circumstances.

The coupon rate for the 1998 Series D PARRS, which mature in June 2028, has been reset eight times, from an initial rate of 6.750 percent to the current rate of 2.134 percent.  In connection with these resets, $318 million of the Bonds have been redeemed; therefore, $256 million of the Bonds were outstanding at September 30, 2021.  The coupon rate for the 1999 Series A PARRS, which mature in May 2029, has been reset seven times, from an initial rate of 6.50 percent to the current rate of 2.216 percent.  In connection with these resets, $316 million of the Bonds have been redeemed; therefore, $208 million of the Bonds were outstanding at September 30, 2021.

Due to the contingent nature of the put option on the PARRS, TVA determines whether the PARRS should be classified as long-term debt or current maturities of long-term debt by calculating the expected reset rate for the Bonds on the calculation dates, described above.  If the determination date for reset is before the balance sheet date of the reporting period and the expected reset rate is less than the then-current coupon rate on the PARRS, the PARRS are included in current maturities. Otherwise, the PARRS are included in long-term debt.  

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the years ended September 30, 2021 and 2020.
Debt Securities Activity
For the years ended September 30
 20212020
Issues
2020 Series A(1)
$— $1,000 
2021 Series A(2)
500 — 
Discount on debt issues— (3)
Total$500 $997 
Redemptions/Maturities(3)
 
electronotes®
$— $219 
2009 Series B29 28 
2018 Series A— 1,000 
1999 Series A PARRS (TVE)— 23 
1998 Series D PARRS (TVC)— 17 
1995 Series B— 140 
2011 Series A1,500 — 
1998 Series H331 — 
Total redemptions/maturities of power bonds1,860 1,427 
Notes payable— 23 
Variable interest entities41 39 
Total$1,901 $1,489 
Notes
(1) The 2020 Series A Bonds were issued at 99.706 percent of par.
(2) The 2021 Series A Bonds were issued at 99.982 percent of par.
(3) All redemptions were at 100 percent of par.
Debt Outstanding

    Total debt outstanding at September 30, 2021 and 2020, consisted of the following: 
Short-Term Debt
At September 30
 
CUSIP or Other Identifier
 
Maturity
 Call/(Put) Date 
Coupon Rate		20212020
Short-term debt, net of discounts$780 $57 
Current maturities of long-term debt of VIEs issued at par43 41 
Current maturities of notes payable— — 
Current maturities of power bonds issued at par
880591EN8
8/15/20221.875%1,000 — 
880591EF512/15/20213.770%1 1 
880591EF56/15/20223.770%27 28 
880591EL22/15/20213.875%— 1,500 
880591DC36/7/20215.805%— 258 
(1)
Total current maturities of power bonds issued at par   1,028 1,787 
Total current debt outstanding, net   $1,851 $1,885 
Note
(1) Includes net exchange gain from currency transactions of $73 million at September 30, 2020.
Long-Term Debt
At September 30
 
CUSIP or Other Identifier
 
Maturity
Coupon
Rate		Effective Call Date2021 Par2020 ParStock Exchange Listings
880591EN88/15/20221.875%$— $1,000 New York
880591ER99/15/20242.875%1,000 1,000 New York
880591EW85/15/20250.750%1,000 1,000 New York
880591CJ911/1/20256.750%1,350 1,350 New York, Hong Kong, Luxembourg, Singapore
880591EU22/1/20272.875%1,000 1,000 New York
880591300(3)
6/1/20282.134%256 256 New York
880591409(3)
5/1/20292.216%208 208 New York
880591DM15/1/20307.125%1,000 1,000 New York, Luxembourg
880591EX69/15/20311.500%500 — New York
880591DP46/7/20326.587%
(2)
337 
(1)
323 
(1)
New York, Luxembourg
880591DV17/15/20334.700%472 472 New York, Luxembourg
880591EF56/15/20343.770%190 218 None
880591DX76/15/20354.650%436 436 New York
880591CK64/1/20365.980%121 121 New York
880591CS94/1/20365.880%1,500 1,500 New York
880591CP51/15/20386.150%1,000 1,000 New York
880591ED06/15/20385.500%500 500 New York
880591EH19/15/20395.250%2,000 2,000 New York
880591EP312/15/20423.500%1,000 1,000 New York
880591DU36/7/20434.962%
(2)
202 
(1)
194 
(1)
New York, Luxembourg
880591EB41/15/20484.875%500 500 New York, Luxembourg
880591DZ24/1/20565.375%1,000 1,000 New York
880591EJ79/15/20604.625%1,000 1,000 New York
880591ES79/15/20654.250%1,000 1,000 New York
Subtotal 17,572 18,078  
Unamortized discounts, premiums, issue costs, and other  (115)(122) 
Total long-term outstanding power bonds, net  17,457 17,956  
Long-term debt of VIEs, net1,006 1,048 
Total long-term debt, net$18,463 $19,004 
Notes
(1)  Includes net exchange gain from currency transactions of $58 million and $80 million at September 30, 2021 and 2020, respectively.
(2)  The coupon rate represents TVA's effective interest rate.
(3)  TVA PARRS, CUSIP numbers 880591300 and 880591409, may be redeemed under certain conditions.  See Put and Call Options above.
 
Maturities Due in the Year Ending September 30
 20222023202420252026ThereafterTotal
Long-term power bonds including current maturities(1)
$1,028 $29 $1,022 $1,022 $1,370 $14,187 $18,658 
Short-term debt, net of discounts780 — — — — — 780 
Note
(1) Long-term power bonds does not include non-cash items of foreign currency exchange gain of $58 million, unamortized debt issue costs of $43 million, and net discount on sale of Bonds of $72 million.

Credit Facility Agreements

TVA has funding available under four long-term revolving credit facilities totaling approximately $2.7 billion: a $1.0 billion credit facility that matures on September 28, 2023, a $150 million credit facility that matures on February 9, 2024, a $500 million credit facility that matures on February 1, 2025, and a $1.0 billion credit facility that matures on September 21, 2026. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At September 30, 2021 and 2020, there were approximately $1.2 billion of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 16 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:
Summary of Long-Term Credit Facilities
At September 30, 2021
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
September 2023$1,000 $328 $— $672 
 February 2024150 38 — 112 
February 2025500 500 — — 
 September 20261,000 301 — 699 
     Total$2,650 $1,167 $— $1,483 

TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2022 with a maturity date of September 30, 2022. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at September 30, 2021. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

Lease/Leasebacks

    TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking CTs as well as certain qualified technological equipment and software ("QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. On September 30, 2021 and 2020, the outstanding leaseback obligations related to the remaining CTs and QTE were $25 million and $223 million, respectively. In May 2020, TVA made final rent payments under lease/leaseback transactions involving eight CTs, and TVA had previously acquired the equity interest related to these transactions. Rent payments under the remaining CT lease/leaseback transactions are scheduled to be made through January 2022. TVA does have the option to acquire the equity interests related to transactions involving the remaining eight CTs for additional amounts. In addition, on October 30, 2019, TVA provided notice of its intent to purchase the ownership interest in certain QTE. Repurchase payments are being made through a series of installments in 2021 and 2022, after which the associated leases will be terminated.
v3.21.2
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss)
    AOCI represents market valuation adjustments related to TVA's currency swaps. The currency swaps are cash flow hedges and are the only derivatives in TVA's portfolio that have been designated and qualify for hedge accounting treatment. TVA records exchange rate gains and losses on its foreign currency-denominated debt and any related accrued interest in net income and marks its currency swap assets and liabilities to market through other comprehensive income (loss) ("OCI"). TVA then reclassifies an amount out of AOCI into net income, offsetting the exchange gain/loss recorded on the debt. For the years ended September 30, 2021 and 2020, TVA reclassified $97 million and $38 million of gains, respectively, related to its cash flow hedges from AOCI to Interest expense. See Note 16 — Risk Management Activities and Derivative Transactions.

    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 AOCI or that would impact the statements of operations are recorded as regulatory assets or regulatory liabilities. See Note 10 — Regulatory Assets and Liabilities for a schedule of regulatory assets and liabilities.  See Note 16 — Risk Management Activities and Derivative Transactions for a discussion of the recognition in AOCI of gains and losses associated with certain derivative instruments. See Note 17 — Fair Value Measurements for a discussion of the recognition of certain investment fund gains and losses as regulatory assets and liabilities.  See Note 22 — Benefit Plans for a discussion of the regulatory accounting related to components of TVA's benefit plans.
v3.21.2
Risk Management Activities and Derivative Transactions
 12 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Risk Management Activities and Derivative Transactions
TVA is exposed to various risks related to commodity prices, investment prices, interest rates, currency exchange rates, and inflation as well as counterparty credit and performance risks.  To help manage certain of these risks, TVA has historically entered into various derivative transactions, principally commodity option contracts, forward contracts, swaps, swaptions, futures, and options on futures.  Other than certain derivative instruments in its trust investment funds, it is TVA's policy to enter into these derivative transactions solely for hedging purposes and not for speculative purposes. During the fourth quarter of 2020, TVA discontinued derivative accounting for forward coal contracts because these contracts no longer met the criteria of net settlement, and, as a result, the associated net derivative liabilities were derecognized at that time.

In 2014, TVA suspended its Financial Trading Program. In anticipation of lifting the suspension in 2022, the TVA Board, in November 2021, approved the elimination of the Value at Risk aggregate transaction limit for the Financial Hedging Program (formerly, the Financial Trading Program) and authorized the use of tolerances and measures that will be reviewed annually by the TVA Board. The tolerances will address counterparty exposure, liquidity risk, and reduction in fuel cost volatility. In addition, the TVA Board approved certain administrative changes to the Financial Hedging Program.

Overview of Accounting Treatment

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

The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
For the years ended September 30
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20212020
Currency swapsTo protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction$126 $(1)
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense
For the years ended September 30
Derivatives in Cash Flow Hedging Relationship20212020
Currency swaps$97 $38 
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 $25 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 exchange gain on the debt.
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
For the years ended September 30
 
Derivative Type
Objective of Derivative(2)
Accounting for Derivative Instrument20212020
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 assets or liabilities

Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow		$(115)$(97)
Commodity contract derivativesTo protect against fluctuations in market prices of purchased coal or natural gas (price risk)Mark-to-market gains and losses are recorded as regulatory assets or liabilities

Realized gains and losses due to contract settlements are recognized in Fuel expense as incurred		— (1)
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 years ended September 30, 2021 and 2020.
(2) During the fourth quarter of 2020, TVA discontinued derivative accounting for forward coal contracts.
Fair Values of TVA Derivatives
At September 30
 20212020
Derivatives That Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£200 million Sterling(1)
$— 
$—
$(78)
Accounts payable and accrued liabilities $(78)
£250 million Sterling
(36)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(32)
(63)
Accounts payable and accrued liabilities $(5); Other long-term liabilities $(58)
£150 million Sterling
(47)
Accounts payable and accrued liabilities $(3); Other long-term liabilities $(44)
(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
$(1,182)
Accounts payable and accrued liabilities $(44); Accrued interest $(37); Other long-term liabilities $(1,101)
$(1,449)
Accounts payable and
accrued liabilities $(43); Accrued interest $(37);
Other long-term liabilities
$(1,369)
$476 million notional
(455)
Accounts payable and accrued liabilities $(22); Accrued interest $(10); Other long-term liabilities $(423)
(588)
Accounts payable and
accrued liabilities $(22); Accrued interest $(10);
Other long-term liabilities
$(556)
$42 million notional(2)
(2)
Accounts payable and accrued liabilities $(1); Accrued interest $(1)
(4)
Accounts payable and
accrued liabilities $(2); Other long-term liabilities $(2)
Commodity contract derivatives247 
Other current assets $210; Other long-term assets $40; Accounts payable and accrued liabilities $(3)
46 
Other current assets $26; Other long-term assets $23; Accounts payable and accrued liabilities $(3)
Notes
(1) On June 7, 2021, the 1998 Series H Sterling Global bond matured, and the final payment was made on the related currency swap.
(2) Represents two interest rate swaps with notional amounts of $28 million and $14 million.
Cash Flow Hedging Strategy for Currency Swaps

To protect against exchange rate risk related to British pound sterling denominated Bond transactions, TVA entered into foreign currency hedges at the time the Bond transactions occurred.  TVA had the following currency swaps outstanding at September 30, 2021:
Currency Swaps Outstanding
Effective Date of Currency Swap ContractAssociated TVA Bond Issues Currency ExposureExpiration Date of SwapOverall Effective
Cost to TVA
2001£250 million20326.59%
2003£150 million20434.96%

When the dollar strengthens against the British pound sterling, the exchange gain on the Bond liability and related accrued interest is offset by an equal amount of loss on the swap contract that is reclassified out of AOCI.  Conversely, the exchange loss on the Bond liability and related accrued interest is offset by an equal amount of gain on the swap contract that is reclassified out of AOCI.  All such exchange gains or losses on the Bond liability and related accrued interest are included in Long-term debt, net and Accrued interest, respectively.  The offsetting exchange losses or gains on the swap contracts are recognized in AOCI.  If any gain (loss) were to be incurred as a result of the early termination of the foreign currency swap contract, the resulting income (expense) would be amortized over the remaining life of the associated Bond as a component of Interest expense. The values of the currency swap liabilities are included in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets.
    
Derivatives Not Receiving Hedge Accounting Treatment

Interest Rate Derivatives.  Generally TVA uses interest rate swaps to fix variable short-term debt to a fixed rate, and TVA uses regulatory accounting treatment to defer the MtM gains and losses on its interest rate swaps. The net deferred unrealized gains and losses are classified as regulatory assets or liabilities on TVA's Consolidated Balance Sheets and are included in the ratemaking formula when gains or losses are realized. The values of these derivatives are included in Accounts payable and accrued liabilities, Accrued interest, and Other long-term liabilities on the Consolidated Balance Sheets, and realized gains and losses, if any, are included on TVA's Consolidated Statements of Operations. For the years ended September 30, 2021 and 2020, the changes in fair market value of the interest rate swaps resulted in the deferral of unrealized gains of $402 million and unrealized losses of $272 million, respectively.  TVA may hold short-term debt balances lower than the notional amount of the interest rate swaps from time to time due to changes in business conditions and other factors. While actual balances vary, TVA generally plans to maintain average balances of short-term debt equal to or in excess of the combined notional amount of the interest rate swaps.

Commodity Derivatives. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. TVA marks to market natural gas contracts and defers the fair market values as regulatory assets or liabilities on a gross basis. At September 30, 2021, TVA's natural gas contract derivatives had terms of up to three years.
Commodity Contract Derivatives 
At September 30
 20212020
 
Number of Contracts
Notional AmountFair Value (MtM)Number of ContractsNotional Amount
Fair Value (MtM)
Natural gas contract derivatives40263 million mmBtu$247 42302 million mmBtu$46 
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 September 30, 2021
At September 30, 2020
Assets
Commodity derivatives not subject to master netting or similar arrangement$250 $49 
Liabilities
Currency swaps(2)
$83 $209 
Interest rate swaps(2)
1,639 2,041 
Total derivatives subject to master netting or similar arrangement1,722 2,250 
Commodity derivatives not subject to master netting or similar arrangement3 3 
Total liabilities$1,725 $2,253 
Notes
(1) Offsetting amounts primarily include counterparty netting of derivative contracts, margin account deposits for futures commission merchants transactions, and cash collateral received or paid in accordance with the accounting guidance for derivatives and hedging transactions. There were no material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2021 or 2020.
(2) Letters of credit of approximately $1.2 billion and $1.5 billion were posted as collateral at September 30, 2021 and 2020, respectively, to partially secure the liability positions of one of the currency swaps and one of the interest rate swaps in accordance with the collateral requirements for these derivatives.

Other Derivative Instruments

Investment Fund Derivatives.  Investment funds consist primarily of funds held in the NDT, ART, SERP, and DCP.  See Note 17 — Fair Value Measurements — Investment Funds for a discussion of the trusts, plans, and types of investments.  The NDT and ART may invest in derivative instruments which may include swaps, futures, options, forwards, and other instruments.   At September 30, 2021 and 2020, the NDT held investments in forward contracts to purchase debt securities. The fair values of these derivatives were in net asset positions totaling $2 million and $13 million at September 30, 2021 and 2020, respectively.

Collateral.  TVA's interest rate swaps and currency swaps contain contract provisions that require a party to post collateral (in a form such as cash or a letter of credit) when the party's liability balance under the agreement exceeds a certain threshold.  At September 30, 2021, the aggregate fair value of all derivative instruments with credit-risk related contingent features that were in a liability position was $1.7 billion.  TVA's collateral obligations at September 30, 2021, under these arrangements were approximately $1.1 billion, for which TVA had posted approximately $1.2 billion 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 contract as a result of this posted collateral.

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

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

Counterparty Risk

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

Customers.  TVA is exposed to counterparty credit risk associated with trade accounts receivable from delivered power sales to LPCs, and from industries and federal agencies directly served, all located in the Tennessee Valley region. Of the $1.5 billion and $1.4 billion of receivables from power sales outstanding at September 30, 2021 and 2020, respectively, nearly all counterparties were rated investment grade. The obligations of customers that are not investment grade are secured by collateral. TVA is also exposed to risk from exchange power arrangements with a small number of investor-owned regional
utilities related to either delivered power or the replacement of open positions of longer-term purchased power or fuel agreements. TVA believes its policies and procedures for counterparty performance risk reviews have generally protected TVA against significant exposure related to market and economic conditions. See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts, Note 3 — Accounts Receivable, Net, and Note 9 — Other Long-Term Assets.
TVA had revenue from two LPCs that collectively accounted for 17 percent of total operating revenues for both the years ended September 30, 2021 and 2020.

Suppliers.  TVA assesses potential supplier performance risks, including procurement of fuel, parts, and services. If suppliers are unable to perform under TVA's existing contracts or if TVA is unable to obtain similar services from other vendors, TVA could experience delays, disruptions, additional costs, or other operational outcomes that may impact generation, maintenance, and capital programs. If one of TVA's fuel or purchased power suppliers fails to perform under the terms of its 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 has seen an increase in supplier impacts as a result of COVID-19, such as delays and price fluctuations, but has been able to manage these impacts through existing contracts and increased lead times and communications with suppliers; therefore, TVA has not experienced significant business disruptions at this time.

Natural Gas. TVA purchases its natural gas requirements from a variety of suppliers and 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 also maintains on-site, fuel oil backup to operate at a majority of the combustion turbine sites in the event of major supply disruptions. In the event of nonperformance by suppliers, TVA believes that it can obtain replacement natural gas.

    Coal. To help ensure a reliable supply of coal, TVA had coal contracts with multiple suppliers at September 30, 2021. The contracted supply of coal is sourced from multiple geographic regions of the U.S. and is to be delivered via various transportation methods (e.g., barge, rail, and truck). As a result of emerging technologies, environmental regulations, and lower gas prices on average over the past few years, coal suppliers are facing increased financial pressure, which has led to relatively poor credit ratings and bankruptcies, restructuring, mine closures, or other scenarios. A continued decline in demand for coal could result in further consolidations, additional bankruptcies, restructuring, mine closures, or other scenarios. Current market conditions indicate limited availability of spot market coal due to increased exports, utility demand, and mine capacity capability.

    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 short-term PPAs as well as through spot market purchases. In order to meet customer preferences and requirements for cleaner and greener energy, TVA has entered into certain PPAs with renewable resource providers. TVA also has a PPA that expires on March 31, 2032, with a supplier of electricity for 440 megawatts ("MW") of summer net capability from a lignite-fired generating plant. TVA has determined that the supplier has the equivalent of a non-investment grade credit rating; therefore, the supplier has provided credit assurance to TVA under the terms of the agreement.

Other Suppliers. TVA has experienced minimal impacts due to force majeure events, with the exception of a manufacturing delay for a major turbine component. A mitigation strategy was developed by TVA and the vendor which reduced impacts to TVA's outage schedule. TVA will continue to monitor the supply base and remain in contact with suppliers to identify potential risks.

In May 2021, TVA was notified of the Colonial Pipeline ransomware attack that shut down the pipeline for a period of time. The Colonial Pipeline delivers a portion of TVA’s refined products, such as gasoline and diesel fuel, among others. This event did not have a material impact on TVA business or operations. No alternative fuel supply sources or dispatch of alternative generation sources were necessary during this time, primarily as a result of having sufficient existing inventory.

Derivative Counterparties.  TVA has entered into physical and financial contracts that qualify as derivatives for hedging purposes, and TVA's NDT, ART, and qualified defined benefit 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 substantial costs in connection with entering into a replacement transaction. If a counterparty to the derivative contracts into which the NDT, the ART, or the qualified pension plan have entered for investment purposes defaults, the value of the investment could decline significantly or perhaps become worthless. TVA has concentrations of credit risk from the banking, coal, and gas industries because multiple companies in these industries serve as counterparties to TVA in various derivative transactions. At
September 30, 2021, all of TVA's currency swaps and interest rate swaps as well as all of the derivatives in the NDT and ART were with banking counterparties whose Moody's credit ratings were A2 or higher.TVA classifies qualified forward natural gas contracts as derivatives. See Derivatives Not Receiving Hedge Accounting Treatment above. At September 30, 2021, the natural gas contracts were with counterparties whose ratings ranged from B1 to Aa2. TVA recognizes the slowdown in demand and the impacts on the oil and gas industry as a result of the COVID-19 pandemic. TVA will continue to monitor the impacts and affected credit ratings and enforce contract performance assurance provisions when applicable.
v3.21.2
Fair Value Measurements
 12 Months Ended
Sep. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair value is determined based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the asset or liability's principal market, or in the absence of a principal market, the most advantageous market for the asset or liability in an orderly transaction between market participants. TVA uses market or observable inputs as the preferred source of values, followed by assumptions based on hypothetical transactions in the absence of market inputs.

Valuation Techniques

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

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

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

Investment Funds

    At September 30, 2021, Investment funds were comprised of $4.1 billion of equity securities and debt securities classified as trading measured at fair value. Equity and trading debt securities are held in the NDT, ART, SERP, and DCP. The NDT holds funds for the ultimate decommissioning of TVA's nuclear power plants. The ART holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The balances in the NDT and ART were $2.8 billion and $1.1 billion, respectively, at September 30, 2021.

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

The NDT, ART, SERP, and DCP are composed of multiple types of investments and are managed by external institutional investment managers. Most U.S. and international equities, U.S. Treasury inflation-protected securities ("TIPS"), real estate investment trust securities, and cash securities and certain derivative instruments are measured based on quoted exchange prices in active markets and are classified as Level 1 valuations. Fixed-income investments, high-yield fixed-income
investments, currencies, and most derivative instruments are non-exchange traded and are classified as Level 2 valuations. These measurements are based on market and income approaches with observable market inputs.

    Private equity limited partnerships, private real asset investments, and private credit investments may include holdings of investments in private real estate, venture capital, buyout, mezzanine or subordinated debt, restructuring or distressed debt, and special situations through funds managed by third-party investment managers. These investments generally involve a three-to-four-year period where the investor contributes capital, followed by a period of distribution, typically over several years. The investment period is generally, at a minimum, 10 years or longer. The NDT had unfunded commitments related to private equity limited partnerships of $221 million, private real assets of $96 million, and private credit of $44 million at September 30, 2021. The ART had unfunded commitments related to limited partnerships in private equity of $123 million, private real assets of $65 million, and private credit of $21 million at September 30, 2021. These investments have no redemption or limited redemption options and may also impose restrictions on the NDT's and ART's ability to liquidate their investments. There are no readily available quoted exchange prices for these investments. The fair value of these investments is based on information provided by the investment managers. These investments are valued on a quarterly basis. TVA's private equity limited partnerships, private real asset investments, and private credit investments are valued at net asset values ("NAV") as a practical expedient for fair value. TVA classifies its interest in these types of investments as investments measured at NAV in the fair value hierarchy.

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

     Realized and unrealized gains and losses on equity and trading debt securities are recognized in current earnings and are based on average cost. The gains and losses of the NDT and ART are subsequently reclassified to a regulatory asset or liability account in accordance with TVA's regulatory accounting policy. See Note 1 — Summary of Significant Accounting Policies — Cost-Based Regulation and Note 10 — Regulatory Assets and Liabilities. TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)
At or for the years ended September 30
FundFinancial Statement Presentation20212020
NDTRegulatory asset$279 $37 
ARTRegulatory asset145 32 
SERPOther income (expense)7 3 
DCPOther income (expense)1 2 

Currency and Interest Rate Swap Derivatives

See Note 16 — 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

See Note 16 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment. Most of these contracts are valued based on market approaches which utilize short-term and mid-term market-quoted prices from an external industry brokerage service.

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 1984 to CY 2020) 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 $1 million decrease in the fair value of liabilities at September 30, 2021.

Fair Value Measurements

The following tables set forth by level, within the fair value hierarchy, TVA's financial assets and liabilities that were measured at fair value on a recurring basis at September 30, 2021 and 2020. Financial assets and liabilities have been classified in their entirety based on the lowest level of input that is significant to the fair value measurement. TVA's assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the determination of the fair value of the assets and liabilities and their classification in the fair value hierarchy levels.
Fair Value Measurements
At September 30, 2021
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$634 $— $— $634 
Government debt securities(1)
573 24 — 597 
Corporate debt securities(2)
— 411 — 411 
Mortgage and asset-backed securities— 63 — 63 
Institutional mutual funds225 — — 225 
Forward debt securities contracts— 2 — 2 
Private equity funds measured at net asset value(3)
— — — 357 
Private real asset funds measured at net asset value(3)
— — — 272 
Private credit measured at net asset value(3)
— — — 71 
Commingled funds measured at net asset value(3)
— — — 1,421 
Total investments1,432 500 — 4,053 
Commodity contract derivatives— 250 — 250 
Total$1,432 $750 $— $4,303 
Quoted Prices in Active Markets for Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $83 $— $83 
Interest rate swaps— 1,639 — 1,639 
Commodity contract derivatives— 3 — 3 
Total$— $1,725 $— $1,725 
Notes
(1) Includes government-sponsored entities, including $573 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2020
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$500 $— $— $500 
Government debt securities(1)
485 40 — 525 
Corporate debt securities(2)
— 356 — 356 
Mortgage and asset-backed securities— 27 — 27 
Institutional mutual funds188 — — 188 
Forward debt securities contracts— 13 — 13 
Private equity funds measured at net asset value(3)
— — — 194 
Private real asset funds measured at net asset value(3)
— — — 168 
    Private credit measured at net asset value(3)
— — — 53 
Commingled funds measured at net asset value(3)
— — — 1,174 
Total investments1,173 436 — 3,198 
Commodity contract derivatives— 49 — 49 
Total$1,173 $485 $— $3,247 
Quoted Prices in Active Markets for Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $209 $— $209 
Interest rate swaps— 2,041 — 2,041 
Commodity contract derivatives— 3 — 3 
Total$— $2,253 $— $2,253 
Notes
(1) Includes government-sponsored entities.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.

The following table presents a reconciliation of all commodity contract derivatives measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs
(in millions)
 
Commodity Contract Derivatives(1)
Balance at October 1, 2019$(4)
Settlements(1)
Change in net unrealized gains (losses) deferred as regulatory assets and liabilities5 
Balance at September 30, 2020$— 
Note
(1) During the fourth quarter of 2020, TVA discontinued derivative accounting for forward coal contracts. Therefore, the fair value measurement using significant unobservable inputs was zero at September 30, 2020, and September 30, 2021.

Other Financial Instruments Not Recorded at Fair Value

TVA uses the methods and assumptions described below to estimate the fair value of each significant class of financial instruments. The fair value of the financial instruments held at September 30, 2021 and 2020, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption. The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2021 and 2020, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
 At September 30, 2021At September 30, 2020
 Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$72 $71 $87 $86 
Loans and other long-term receivables, net (including current portion)Level 299 94 105 93 
EnergyRight® financing obligations (including current portion)
Level 282 92 97 108 
Unfunded loan commitmentsLevel 2— 3 — 2 
Membership interests of VIEs subject to mandatory redemption (including current portion)Level 223 30 26 35 
Long-term outstanding power bonds, net (including current maturities)Level 218,485 24,309 19,743 26,630 
Long-term debt of VIEs, net (including current maturities)Level 21,049 1,307 1,089 1,419 

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

The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable. The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.
v3.21.2
Proprietary Capital (Text Block)
 12 Months Ended
Sep. 30, 2021
Stockholders' Equity Note [Abstract]  
Proprietary Capital Proprietary Capital
Appropriation Investment

TVA's power program and stewardship (nonpower) programs were originally funded primarily by appropriations from Congress.  In 1959, Congress passed an amendment to the TVA Act that required TVA's power program to be self-financing from power revenues and proceeds from power program financings.  While TVA's power program did not directly receive appropriated funds after it became self-financing, TVA continued to receive appropriations for certain multipurpose and other nonpower mission-related activities as well as for its stewardship activities.  TVA has not received any appropriations from Congress for any activities since 1999, and since that time, TVA has funded stewardship program activities primarily with power revenues.

The 1959 amendment to the TVA Act also required TVA, beginning in 1961, to make annual payments to the U.S. Treasury from net power proceeds as a repayment of and as a return on the Power Program Appropriation Investment until a total of $1.0 billion of the Power Program Appropriation Investment has been repaid in accordance with the 1959 amendment.   TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment in 2014. The TVA Act requires TVA to continue making payments to the U.S. Treasury as a return on the remaining $258 million of the Power Program Appropriation Investment.

The table below summarizes TVA's activities related to appropriated funds and retained earnings.
Summary of Proprietary Capital Activity
At or for the years ended September 30
 20212020
Power ProgramNonpower
 Programs		Power ProgramNonpower
 Programs
Appropriation Investment$258 $4,351 $258 $4,351 
Proprietary Capital    
Balance at beginning of year12,177 (3,803)10,823 (3,795)
Net income (loss) for year1,520 (8)1,360 (8)
Return on power program appropriation investment(4)— (6)— 
Implementation of new accounting standard(1)
(4)— — — 
Balance at end of year13,689 (3,811)12,177 (3,803)
Net proprietary capital at September 30$13,947 $540 $12,435 $548 
Note
(1) See Note 2 — Impact of New Accounting Standards and Interpretations.

Payments to the U.S. Treasury

TVA paid the U.S. Treasury $4 million, $6 million, and $6 million in 2021, 2020, and 2019, respectively, as a return on the Power Program Appropriation Investment.  The amount of the return on the Power Program Appropriation Investment is based on the Power Program Appropriation Investment balance at the beginning of that year and the computed average interest rate payable by the U.S. Treasury on its total marketable public obligations at the same date.  The interest rates payable by TVA on the Power Program Appropriation Investment were 1.64 percent, 2.44 percent, and 2.37 percent for 2021, 2020, and 2019, respectively.

Accumulated Other Comprehensive Income (Loss)

The items included in AOCI consist of market valuation adjustments for certain derivative instruments.  See Note 16 — Risk Management Activities and Derivative Transactions.
TVA records exchange rate gains and losses on debt and related accrued interest in net income and marks its currency swap assets and liabilities to market through OCI.  TVA recognized unrealized gains (losses) of $126 million and $(1) million in 2021 and 2020, respectively, into AOCI on the MtM of currency swaps. TVA then reclassified an amount out of AOCI into net income, offsetting the gain/loss from recording the exchange gain/loss on the debt and related accrued interest.  The amounts reclassified from OCI into net income resulted in increases (decreases) to net income of $97 million, $38 million, and $(45) million in 2021, 2020, and 2019, respectively.  These reclassifications, coupled with the recording of the exchange gain/loss on the debt and related accrued interest, did not have an impact on net income in 2021, 2020, and 2019.  Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $25 million of gains from AOCI to interest expense within the next 12 months to offset amounts anticipated to be recorded in interest expense related to exchange gain on the debt and related accrued interest.
v3.21.2
Other Income (Expense), Net
 12 Months Ended
Sep. 30, 2021
Other Income and Expenses [Abstract]  
Other Income (Expense), Net Other Income (Expense), Net
Income and expenses not related to TVA's operating activities are summarized in the following table:
Other Income (Expense), Net
For the years ended September 30
 202120202019
Bellefonte$(28)$— $21 
Interest income12 18 25 
External services13 12 13 
Gains (losses) on investments16 9 3 
Miscellaneous— (3)— 
Total other income (expense), net$13 $36 $62 
During 2021, TVA made a $28 million court directed payment related to the sale of Bellefonte. In 2019, the purchaser, Nuclear Development, LLC ("Nuclear Development"), failed to fulfill the requirements of the sales contract with respect to obtaining NRC approval of the transfer of required nuclear licenses and payment of the remainder of the selling price before the November 30, 2018 closing date. In August 2021, the court found that, under the contract's termination provision, Nuclear Development was entitled to have TVA return Nuclear Development's down payment and its payment of compensated costs, along with prejudgment interest, which was fully paid in 2021. See Note 23 — Commitments and Contingencies — Legal Proceedings — Case Involving Bellefonte Nuclear Plant for a discussion of the lawsuit filed by Nuclear Development.
v3.21.2
Related Parties
 12 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Parties Related Parties
TVA is a wholly-owned corporate agency of the federal government, and because of this relationship, TVA's revenues and expenses are included as part of the federal budget as a revolving fund.  TVA's purpose and responsibilities as an agency are described under the "Other Agencies" section of the federal budget.

TVA currently receives no appropriations from Congress and funds its business using power system revenues, power financings, and other revenues.  TVA is a source of cash to the federal government.  TVA will indefinitely continue to pay the U.S. Treasury a return on the outstanding $258 million of the Power Program Appropriation Investment.  See Note 19 — Proprietary Capital — Appropriation Investment.

TVA also has access to a financing arrangement with the U.S. Treasury pursuant to the TVA Act.  TVA and the U.S. Treasury entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility.  This credit facility has a maturity date of September 30, 2022, and is typically renewed annually.  Access to this credit facility or other similar financing arrangements has been available to TVA since the 1960s.  See Note 14 — Debt and Other Obligations — Credit Facility Agreements.

In the normal course of business, TVA contracts with other federal agencies for sales of electricity and other services.   Transactions with agencies of the federal government were as follows:
Related Party Transactions
At or for the years ended September 30
 202120202019
Revenue from sales of electricity$109 $105 $118 
Other income280 260 258 
Expenditures
Operating expenses214 224 222 
Additions to property, plant, and equipment10 9 10 
Cash and cash equivalents30 31 45 
Accounts receivable, net65 94 76 
Investment funds573 485 279 
Long-term accounts receivable31 27 53 
Accounts payable and accrued liabilities15 39 69 
Long-term power bonds, net1 1 — 
Return on power program appropriation investment4 6 6 
v3.21.2
Revenue
 12 Months Ended
Sep. 30, 2021
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 92 percent of TVA's revenue from sales of electricity for the year ended September 30, 2021 was to LPCs, which then distribute the power to their customers using their own distribution systems. Power is delivered to each LPC at delivery points within the LPC's service territory. TVA recognizes revenue when the customer takes possession of the power at the delivery point. For power sales, the performance obligation to deliver power is satisfied in a series over time because the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.

The amount of revenue is based on contractual prices approved by the TVA Board. Customers are invoiced monthly for power delivered as measured by meters located at the delivery points. The net transaction price is offset by certain credits available to customers that are known at the time of billing. Credits are designed to achieve objectives of the TVA Act and include items such as hydro preference credits for residential customers of LPCs, economic development credits to promote growth in the Tennessee Valley, wholesale bill credits to maintain long-term partnerships with LPCs, pandemic credits created to support LPCs and strengthen the public power response to the COVID-19 pandemic, and demand response credits allowing TVA to reduce industrial customer usage in periods of peak demand to balance system demand. Payments are typically due within approximately one month of invoice issuance.
 
Directly served customersDirectly served customers, including industrial customers, federal agencies, and other customers, take power for their own consumption. Similar to LPCs, power is delivered to a delivery point, at which time the customer takes possession and TVA recognizes revenue. For all power sales, the performance obligation to deliver power is satisfied in a series over time since the sales of electricity over the term of the customer contract are a series of distinct goods that are substantially the same and have the same pattern of transfer to the customer. TVA has no continuing performance obligations subsequent to delivery. Using the output method for revenue recognition provides a faithful depiction of the transfer of electricity as customers obtain control of the power and benefit from its use at delivery. Additionally, TVA has an enforceable right to consideration for energy delivered at any discrete point in time and will recognize revenue at an amount that reflects the consideration to which TVA is entitled for the energy delivered.

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

Other Revenue

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

During 2021, revenues generated from TVA's electricity sales were $10.4 billion and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for each of the last three years are detailed in the table below:
Operating Revenues By State
For the years ended September 30
(in millions)
 202120202019
Alabama
$1,508 $1,439 $1,593 
Georgia
254 249 270 
Kentucky
655 624 691 
Mississippi
984 941 1,063 
North Carolina
66 65 74 
Tennessee
6,841 6,740 7,419 
Virginia
42 42 45 
Subtotal10,350 10,100 11,155 
Off-system sales7 4 4 
Revenue from sales of electricity10,357 10,104 11,159 
Other revenue146 145 159 
Total operating revenues$10,503 $10,249 $11,318 

    TVA's operating revenues by customer type for each of the last three years are detailed in the table below:
Operating Revenues by Customer Type
For the years ended September 30
(in millions)
 202120202019
Revenue from sales of electricity  
Local power companies$9,534 $9,406 $10,351 
Industries directly served707 588 686 
Federal agencies and other116 110 122 
Revenue from sales of electricity10,357 10,104 11,159 
Other revenue146 145 159 
Total operating revenues$10,503 $10,249 $11,318 

    TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a Partnership Agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA's failure to limit rate increases as provided for in the agreements going forward. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. The total wholesale bill credits to LPCs participating in the long-term Partnership Agreement were $189 million, $163 million, and $14 million, respectively, for the years ended September 30, 2021, 2020, and 2019. In June 2020, TVA provided participating LPCs a flexibility option that allows them to locally generate or purchase up to approximately five percent of average total hourly energy sales over 2015 - 2019 in order to meet their individual customers' needs. As of November 12, 2021, 145 LPCs had signed the 20-year Partnership Agreement with TVA, and 74 LPCs had signed a Flexibility Agreement.

In August 2020, the TVA Board approved a Pandemic Relief Credit that was effective for 2021. The 2.5 percent monthly base rate credit, which totaled $221 million for 2021, applied to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers through September 2021. In August 2021, the TVA Board approved a 2.5 percent monthly base rate credit, the Pandemic Recovery Credit, which will be effective for 2022. The credit, expected to approximate $220 million, will also apply to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers. In November 2021, the TVA Board approved a 1.5 percent monthly base rate credit, which is an extension of the Pandemic Recovery Credit, to be effective for 2023. The 2023 credit is expected to approximate $133 million, and it will be administered in a manner similar to the Pandemic Recovery Credit.
    The number of LPCs by contract arrangement, the revenues derived from such arrangements for 2021, and the percentage those revenues comprised of TVA's total operating revenues for 2021, are summarized in the table below:
TVA Local Power Company Contracts
At or for the year ended September 30, 2021
Contract Arrangements(1)
Number of LPCs Revenue from Sales of Electricity to LPCs
(in millions)		Percentage of Total Operating Revenues
20-year termination notice145 $7,987 76.0 %
5-year termination notice8 1,547 14.7 %
Total153 $9,534 90.7 %
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 — MLGW and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively.  Sales to MLGW and NES accounted for nine percent and eight percent, respectively, of TVA's total operating revenues in 2021, 2020, and 2019. Certain LPCs, including MLGW, are evaluating options for future energy choices. In addition, in January 2021, four LPCs filed a complaint and petition with the Federal Energy Regulatory Commission ("FERC") asking FERC to order TVA to provide transmission and interconnection service to the LPCs or other suppliers that want to serve them. In August 2021, one of the LPCs notified FERC of its withdrawal from the complaint and petition. The remaining three LPCs account for three percent of TVA's total operating revenues for the year ended September 30, 2021. See Note 23 — Commitments and Contingencies — Legal Proceedings — Challenge to Anti-Cherrypicking Amendment for updates to this legal proceeding.

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 does not have any material contract assets at September 30, 2021.

    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.

    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 $315 million, $318 million, and $310 million for 2021, 2020, and 2019, 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 September 30, 2021 and 2020, the outstanding unpaid incentives were $176 million and $172 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements. In May 2020, TVA established flexibility provisions to support the continued operations and recovery of participating customers experiencing financial and operational hardships as a result of the COVID-19 pandemic and corresponding economic downturn. These provisions were made available through the December 2020 application period, which provided flexibility to customers through 2021. The provisions did not have a material impact to TVA.
v3.21.2
Plant Closures (Text Block)
 12 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Plant Closures
7. Plant Closures

Background

TVA must continuously evaluate all generating assets to ensure an optimal energy portfolio that provides safe, clean, and reliable power while maintaining flexibility and fiscal responsibility to the people of the Tennessee Valley. Based on results of assessments presented to the TVA Board in 2019, the retirement of Paradise Fossil Plant ("Paradise") Unit 3 by December 2020 and Bull Run Fossil Plant ("Bull Run") by December 2023 was approved. Subsequent to the TVA Board approval, TVA determined that Paradise would not be restarted after January 2020 due to the plant's material condition. Paradise Unit 3 was taken offline on February 1, 2020, effectively retiring the plant. In addition, TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental review, public input, and TVA Board approval.

Financial Impact

As a result of TVA's decision to accelerate the retirements of Paradise and Bull Run, certain construction projects at these locations were identified as probable of abandonment or were no longer expected to be in service for greater than one year prior to the plants' retirement dates. The write-off of these projects resulted in $4 million, $11 million, and $151 million of Operating and maintenance expense during the years ended September 30, 2021, 2020, and 2019, respectively. TVA also recognized losses of $2 million and $19 million in Operating and maintenance expense related to additional materials and supplies inventory reserves and write-offs identified at Paradise during the years ended September 30, 2020 and 2019, respectively. Losses recognized during the year ended September 30, 2021, were less than $1 million.

TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. As a result of TVA's decision to accelerate the retirement of Paradise and Bull Run, TVA has recognized a cumulative $1.1 billion of accelerated depreciation. Of this amount, $136 million, $387 million, and $566 million were recognized for the years ended September 30, 2021, 2020, and 2019, respectively.
v3.21.2
Leases (Text Block)
 12 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Lessee, Operating Leases
8. Leases

    The following table provides information regarding the presentation of leases on the Consolidated Balance Sheets:
Amounts Recognized on TVA's Consolidated Balance Sheets
At September 30
20212020
Assets
  OperatingOperating lease assets, net of amortization$165 $232 
  FinanceFinance leases692 516 
Total lease assets$857 $748 
Liabilities
Current
  OperatingAccounts payable and accrued liabilities$40 $63 
  FinanceAccounts payable and accrued liabilities60 41 
Non-current
  OperatingOther long-term liabilities122 171 
  FinanceFinance lease liabilities687 525 
Total lease liabilities$909 $800 
    TVA's leases consist primarily of railcars, equipment, real estate/land, power generating facilities, and gas pipelines. TVA's leases have various terms and expiration dates remaining from less than one year to approximately 25 years. The components of lease costs were as follows:
Lease Costs
For the years ended September 30
(in millions)
20212020
Operating lease costs(1)
$52 $84 
Variable lease costs(1)
75 75 
Short-term lease costs(1)
12 7 
Finance lease costs
Amortization of lease assets(2)
51 15 
Interest on lease liabilities(3)(4)
39 33 
Total finance lease costs90 48 
     Total lease costs$229 $214 
Notes
(1) Costs are included in Operating and maintenance expense, Fuel expense, Purchased power expense, and Tax equivalents expense on the Consolidated Statements of Operations. TVA's rental expense for operating leases was approximately $97 million for the year ended September 30, 2019.
(2) Expense is included in Depreciation and amortization expense on the Consolidated Statements of Operations.
(3) Expense is included in Interest expense on the Consolidated Statements of Operations.
(4) Certain finance leases receive regulatory accounting treatment and are reclassified to Fuel expense and Purchased power expense.

    TVA's variable lease costs are primarily related to renewable energy purchase agreements that require TVA to purchase all output from the underlying facility. Payments under those agreements are solely based on the actual output over the lease term. Certain TVA lease agreements contain renewal options. Those renewal options that are reasonably certain to be exercised are included in the lease measurements.

The following table contains additional information with respect to cash and non-cash activities related to leases:
Amounts Recognized on TVA's Consolidated Statements of Cash Flows
For the years ended September 30
(in millions)
20212020
Operating cash flows for operating leases$53 $85 
Operating cash flows for finance leases39 33 
Financing cash flows for finance leases52 15 
Lease assets obtained in exchange for lease obligations (non-cash)
Operating leases(1)
$(22)$110 
Finance leases233 394 
Note
(1) Amount for 2021 represents a non-cash reduction due to a lease that was amended during the fiscal year resulting in derecognition of the operating lease asset and obligation upon remeasurement. Amount for 2020 excludes operating lease assets recorded as a result of the adoption of the new lease standard.
    TVA has certain finance leases under PPAs under which the present value of the minimum lease payments exceeds the fair value of the related lease asset at the date of measurement.  This resulted in an interest rate that was higher than TVA's incremental borrowing rate. The weighted average remaining lease term in years and the weighted average discount rate for TVA's operating and financing leases were as follows:
Weighted Averages
At September 30
20212020
Weighted average remaining lease terms
Operating leases5 years5 years
Finance leases12 years12 years
Weighted average discount rate(1)
Operating leases1.5%1.6%
Finance leases17.7%21.8%
Note
(1) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. If the rate used by the lessor is not readily determinable, TVA uses its incremental borrowing rate as permitted by accounting guidance. The incremental borrowing rate is influenced by TVA's credit rating and lease term and as such may differ for individual leases, embedded leases, or portfolios of leased assets.

    The following table presents maturities of lease liabilities and a reconciliation of the undiscounted cash flows to lease liabilities at September 30, 2021:
Future Minimum Lease Payments
Minimum Payments Due at September 30, 2021
Operating leases
2022$42 
202340 
202437 
202534 
202610 
Thereafter5 
Minimum annual payments168 
Less: present value discount(6)
Operating present value of net minimum lease payments$162 
Finance leases
2022$115 
2023112 
2024107 
2025106 
2026105 
   Thereafter656 
Minimum annual payments1,201 
Less: amount representing interest(454)
Finance present value of net minimum lease payments$747 

TVA has entered into five PPAs with renewable resource providers for solar generation and rights to charge and discharge battery energy storage systems. The systems are considered a lease component in these agreements. These PPAs have terms of 20 years, and are expected to commence between October 2022 and December 2024. Payments made over the term of these PPAs are expected to total approximately $413 million.
v3.21.2
Deferred Costs, Capitalized, Prepaid, and Other Assets - Text Block
 12 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Current Assets
5. Other Current Assets

Other current assets consisted of the following:
Other Current Assets 
At September 30
 20212020
Commodity contract derivative assets$210 $26 
Other77 58 
Other current assets$287 $84 
Commodity Contract Derivative Assets. TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity. See Note 16 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives for a discussion of TVA's commodity contract derivatives.
v3.21.2
Summary of Significant Accounting Policies [Policy Text Block]
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
General
General

The Tennessee Valley Authority ("TVA") is a corporate agency and instrumentality of the United States ("U.S.") that was created in 1933 by federal legislation in response to a proposal by President Franklin D. Roosevelt.  TVA was created to, among other things, improve navigation on the Tennessee River, reduce the damage from destructive flood waters within the Tennessee River system and downstream on the lower Ohio and Mississippi Rivers, further the economic development of TVA's service area in the southeastern U.S., and sell the electricity generated at the facilities TVA operates.

Today, TVA operates the nation's largest public power system and supplies power in most of Tennessee, northern Alabama, northeastern Mississippi, and southwestern Kentucky and in portions of northern Georgia, western North Carolina, and southwestern Virginia to a population of approximately 10 million people.

    TVA also manages the Tennessee River, its tributaries, and certain shorelines to provide, among other things, year-round navigation, flood damage reduction, and affordable and reliable electricity. Consistent with these primary purposes, TVA also manages the river system and public lands to provide recreational opportunities, adequate water supply, improved water quality, cultural and natural resource protection, and economic development.

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

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

TVA's fiscal year ends September 30.  Years (2021, 2020, etc.) refer to TVA's fiscal years unless they are preceded by "CY," in which case the references are to calendar years.
Cost-Based Regulation
Cost-Based Regulation

Since the TVA Board is authorized by the TVA Act to set rates for power sold to its customers, TVA is self-regulated. Additionally, TVA's regulated rates are designed to recover its costs.  Based on current projections, TVA believes that rates, set at levels that will recover TVA's costs, can be charged and collected.  As a result of these factors, TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities.   Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  TVA assesses whether the regulatory assets are probable of future recovery by considering factors such as applicable regulatory changes, potential legislation, and changes in technology.  Based on these assessments, TVA believes the existing regulatory assets are probable of recovery.  This determination reflects the current regulatory and political environment and is subject to change in the future.  If future recovery of regulatory assets ceases to be probable, or TVA is no longer considered to be a regulated entity, then costs would be required to be written off.  All regulatory asset write offs would be required to be recognized in earnings in the period in which future recovery ceases to be probable.
Basis of Presentation Basis of Presentation    The accompanying consolidated financial statements, which have been prepared in accordance with GAAP, include the accounts of TVA and variable interest entities ("VIEs") of which TVA is the primary beneficiary. See Note 11 — Variable Interest Entities. Intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates
Use of Estimates

The preparation of financial statements requires TVA to estimate the effects of various matters that are inherently uncertain as of the date of the consolidated financial statements.  Although the consolidated financial statements are prepared in conformity with GAAP, TVA is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the amounts of revenues and expenses, including impacts from the Coronavirus Disease 2019 ("COVID-19") pandemic, reported during the reporting period.  Each of these estimates varies in regard to the level of judgment involved and its potential impact on TVA's financial results.  Estimates are considered critical either when a different estimate could have reasonably been used, or where changes in the estimate are reasonably likely to occur from period to period, and such use or change would materially impact TVA's financial condition, results of operations, or cash flows.
Reclassification, Comparability Adjustment
Cash and Cash Equivalents and Restricted Cash and Investments
Cash, Cash Equivalents, and Restricted Cash

    Cash includes cash on hand, non-interest bearing cash, and deposit accounts. All highly liquid investments with original maturities of three months or less are considered cash equivalents. Cash and cash equivalents that are restricted, as to withdrawal or use under the terms of certain contractual agreements, are recorded in Other long-term assets on the Consolidated Balance Sheets. Restricted cash and cash equivalents include cash held in trusts that are currently restricted for TVA economic development loans and for certain TVA environmental programs in accordance with agreements related to
compliance with certain environmental regulations. See Note 23 — Commitments and Contingencies — Legal Proceedings — Environmental Agreements.

    The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported on the Consolidated Balance Sheets and Consolidated Statements of Cash Flows:
Cash, Cash Equivalents, and Restricted Cash
At September 30
 20212020
Cash and cash equivalents$499 $500 
Restricted cash and cash equivalents included in Other long-term assets19 21 
Total cash, cash equivalents, and restricted cash$518 $521 
Allowance for Uncollectible Accounts
Allowance for Uncollectible Accounts

As described in Note 2 — Impact of New Accounting Standards and Interpretations, TVA adopted Financial Instruments - Credit Losses on October 1, 2020, using a modified retrospective method through a cumulative-effect adjustment to retained earnings. The standard, Current Expected Credit Losses ("CECL"), requires TVA to recognize an allowance that reflects the current estimate for credit losses expected to be incurred over the life of the financial assets based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectibility of the reported amounts. TVA has reviewed the current portfolio of financial receivables and developed a methodology to reasonably measure the estimate of credit losses for each major financial receivable type. The appropriateness of the allowance is evaluated at the end of each reporting period. TVA continues to monitor the impact of the COVID-19 pandemic on accounts and loans receivable balances to evaluate the allowance for uncollectible accounts.

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

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

The allowance for uncollectible accounts was less than $1 million at both September 30, 2021 and 2020, for trade accounts receivable.  Additionally, loans receivable of $99 million and $105 million at September 30, 2021 and 2020, 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 $4 million and less than $1 million at September 30, 2021 and 2020, respectively. The increase in allowances for uncollectible accounts is due to the adoption of CECL. See Note 2 — Impact of New Accounting Standards and Interpretations.
Revenues
Revenues

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

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

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

Emission Allowances.  TVA has emission allowances for sulfur dioxide ("SO2") and nitrogen oxide ("NOx") which are accounted for as inventory.  The cost of specific allowances used each month is charged to operating expense based on tons of SO2 and NOx emitted during the respective compliance periods.  Allowances granted to TVA by the Environmental Protection Agency ("EPA") are recorded at zero cost.

Allowance for Inventory Obsolescence.  TVA reviews materials and supplies inventories by category and usage on a periodic basis.  Each category is assigned a probability of becoming obsolete based on the type of material and historical usage data.  TVA has a fleet-wide inventory management policy for each generation type. Based on the estimated value of the inventory, TVA adjusts its allowance for inventory obsolescence.
Property, Plant, and Equipment, and Depreciation
Property, Plant, and Equipment, and Depreciation

    Property, Plant, and Equipment. Additions to plant are recorded at cost, which includes direct and indirect costs.  The cost of current repairs and minor replacements is charged to operating expense.  Nuclear fuel, which is included in Property, plant, and equipment, is valued using the average cost method for raw materials and the specific identification method for nuclear fuel in a reactor.  Amortization of nuclear fuel in a reactor is calculated on a units-of-production basis and is included in fuel expense. When property, plant, and equipment is retired, accumulated depreciation is charged for the original cost of the assets. Gains or losses are only recognized upon the sale of land or an entire operating unit.

    Depreciation. TVA accounts for depreciation of its properties using the composite depreciation convention of accounting.  Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset. Depreciation is generally computed on a straight-line basis over the estimated service lives of the various classes of assets. The estimation of asset useful lives requires management judgment, supported by external depreciation studies of historical asset retirement experience. Depreciation rates are determined based on external depreciation studies that are updated approximately every five years. During the first quarter of 2022, TVA implemented a new depreciation study related to its completed plant.  The new study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. Implementation of the study is expected to result in an increase to depreciation and amortization expense of approximately $369 million during 2022. This estimate represents the impact of implementing the new study only and does not include any potential impact of other possible changes, including additions to or retirements of net completed plant, that may occur during 2022.

Depreciation expense for the years ended September 30, 2021, 2020, and 2019 was $1.4 billion, $1.6 billion, and $1.8 billion, respectively. Depreciation expense expressed as a percentage of the average annual depreciable completed plant was 2.28 percent for 2021, 2.74 percent for 2020, and 3.09 percent for 2019.  Average depreciation rates by asset class are as follows:
Property, Plant, and Equipment Depreciation Rates
At September 30
(percent)
202120202019
Asset Class
Nuclear2.38 2.38 2.38 
Coal-fired(1)
1.95 3.62 4.96 
Hydroelectric1.60 1.60 1.61 
Gas and oil-fired2.98 3.04 3.00 
Transmission1.34 1.34 1.34 
Other7.12 7.26 7.16 
Note
(1) The rates include the acceleration of depreciation related to retiring certain coal-fired units.
    
    Coal-Fired. As a result of TVA's decision to idle or retire certain units since the previous depreciation study, TVA recognized $136 million, $387 million, and $566 million in accelerated depreciation expense related to the units during the years ended September 30, 2021, 2020, and 2019, respectively. Accelerated depreciation is based on the remaining useful life of the asset at the time the decision is made to idle or retire a unit.

Reacquired Rights. Property, plant, and equipment includes intangible reacquired rights, net of amortization, of $184 million and $192 million as of September 30, 2021 and 2020, respectively, related to the purchase of residual interests from lease/leaseback agreements of certain combustion turbine units ("CTs"). Reacquired rights are amortized over the estimated useful life of the underlying CTs. Amortization expense was $8 million for all years 2021, 2020, and 2019.

Software Costs.  TVA capitalizes certain costs incurred in connection with developing or obtaining internal-use software. Capitalized software costs are included in Property, plant, and equipment on the Consolidated Balance Sheets and are generally amortized over seven years.  At September 30, 2021 and 2020, unamortized computer software costs totaled $27 million and $54 million, respectively.  Amortization expense related to capitalized computer software costs was $38 million, $42 million, and $38 million for 2021, 2020, and 2019, respectively.  Software costs that do not meet capitalization criteria are expensed as incurred.
Impairment of Assets.  TVA evaluates long-lived assets for impairment when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.  For long-lived assets, TVA bases its evaluation on impairment indicators such as the nature of the assets, the future economic benefit of the assets, any historical or future profitability measurements, regulatory approval and ability to set rates at levels that allow for recoverability of the assets, and other external market conditions or factors that may be present.  If such impairment indicators are present or other factors exist that indicate that the carrying amount of an asset may not be recoverable, TVA determines whether an impairment has occurred based on an estimate of undiscounted cash flows attributable to the asset as compared with the carrying value of the asset.  If an impairment has occurred, the amount of the impairment recognized is measured as the excess of the asset's carrying value over its fair value.  Additionally, TVA regularly evaluates construction projects.  If the project is canceled or deemed to have no future economic benefit, the project is written off as an asset impairment or, upon TVA Board approval, reclassified as a regulatory asset. See Note 7 — Plant Closures.
Lessee, Leases
Leases

    TVA recognizes a lease asset and lease liability for leases with terms of greater than 12 months. Lease assets represent TVA's right to use an underlying asset for the lease term, and lease liabilities represent TVA's obligation to make lease payments arising from the lease, both of which are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date.  TVA has certain lease agreements that include variable lease payments that are based on energy production levels. These variable lease payments are not included in the measurement of the lease assets or lease liabilities but are recognized in the period in which the expenses are incurred.
    
    While not specifically structured as leases, certain power purchase agreements ("PPAs") are deemed to contain a lease of the underlying generating units when the terms convey the right to control the use of the assets. Amounts recorded for these leases are generally based on the amount of the scheduled capacity payments due over the remaining terms of the PPAs, the terms of which vary. The total lease obligations included in Accounts payable and accrued liabilities and lease liabilities related to these agreements were $464 million and $143 million for finance and operating leases, respectively, at September 30, 2021.

    TVA has agreements with lease and non-lease components and has elected to account for the components separately. Consideration is allocated to lease and non-lease components generally based on relative standalone selling prices.

    TVA has lease agreements which include options for renewal and early termination. The intent to renew a lease varies depending on the lease type and asset. Renewal options that are reasonably certain to be exercised are included in the lease measurements. The decision to terminate a lease early is dependent on various economic factors. No termination options have been included in TVA's lease measurements.
    
    Leases with an initial term of 12 months or less, which do not include an option to extend the initial term of the lease to greater than 12 months that TVA is reasonably certain to exercise, are not recorded on the Consolidated Balance Sheets at September 30, 2021.
    Operating leases are recognized on a straight-line basis over the term of the lease agreement. Rent expense associated with short-term leases and variable leases is recorded in Operating and maintenance expense, Fuel expense, or Purchased power expense on the Consolidated Statements of Operations. Expenses associated with finance leases result in the separate presentation of interest expense on the lease liability and amortization expense of the related lease asset on the Consolidated Statements of Operations.
Decommissioning Costs
Decommissioning Costs

    TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets.  These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets.  Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration.  Revisions to the estimates of asset retirement obligations ("AROs") are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially.  Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset.  See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations.
Down-blend Offering for Tritium
Down-blend Offering for Tritium

TVA, the U.S. Department of Energy ("DOE"), and certain nuclear fuel contractors have entered into agreements, referred to as the Down-blend Offering for Tritium ("DBOT"), that provide for the production, processing, and storage of low-enriched uranium that is to be made using surplus DOE highly enriched uranium and other uranium.  Low-enriched uranium can be fabricated into fuel for use in a nuclear power plant.  Production of the low-enriched uranium began in 2019 and is contracted to continue through October 2027.  Beginning October 2027, contract activity will consist of storage and flag management.  Flag management ensures that the uranium is of U.S. origin, free from foreign obligations, and unencumbered by policy restrictions, so that it can be used in connection with the production of tritium. Under the terms of the interagency agreement between the DOE and TVA, the DOE will reimburse TVA for a portion of the costs of converting the highly enriched uranium to low-enriched uranium. Since 2019, TVA has received $137 million in reimbursements from the DOE. At September 30, 2021, TVA recorded $11 million in Accounts receivable, net related to this agreement.
Investment Funds
Investment Funds

    Investment funds consist primarily of trust funds designated to fund decommissioning requirements (see Note 23 — Commitments and Contingencies — Decommissioning Costs), the Supplemental Executive Retirement Plan ("SERP") (see Note 22 — Benefit Plans — Overview of Plans and Benefits — Supplemental Executive Retirement Plan), and the Deferred Compensation Plan ("DCP"). The Nuclear Decommissioning Trust ("NDT") holds funds primarily for the ultimate decommissioning of TVA's nuclear power plants. The Asset Retirement Trust ("ART") holds funds primarily for the costs related to the future closure and retirement of TVA's other long-lived assets. The NDT, ART, SERP, and DCP funds are invested in portfolios of securities generally designed to achieve a return in line with overall equity and debt market performance. The NDT, ART, SERP, and DCP funds are all classified as trading.
Insurance
Insurance

Although TVA uses private companies to administer its healthcare plans for eligible active and retired employees not covered by Medicare, TVA does not purchase health insurance.  Third-party actuarial specialists assist TVA in determining certain liabilities for self-insured claims.  TVA recovers the costs of claims through power rates and through adjustments to the participants' contributions to their benefit plans.  These liabilities are included in Other liabilities on the Consolidated Balance Sheets.

The Federal Employees' Compensation Act ("FECA") governs liability to employees for service-connected injuries.  TVA purchases excess workers' compensation insurance above a self-insured retention.

    In addition to excess workers' compensation insurance, TVA purchases property and liability insurance for nuclear assets and operations. See Note 23 — Commitments and Contingencies — Nuclear Insurance. TVA also purchases liability insurance and property insurance for certain conventional (non-nuclear) assets, and other insurance policies when commercially feasible.
    The insurance policies are subject to the terms and conditions of the specific policy, including deductibles or self-insured retentions. To the extent insurance would not provide either a partial or total recovery of the costs associated with a loss, TVA would have to recover any such costs through other means, including through power rates.
Research and Development Costs
Research and Development Costs

Research and development costs are expensed when incurred.  TVA's research programs include those related to power delivery technologies, emerging technologies (clean energy, renewables, distributed resources, and energy efficiency), technologies related to generation (fossil fuel, nuclear, and hydroelectric), and environmental technologies.
Tax Equivalents
Tax Equivalents

TVA is not subject to federal income taxation. In addition, neither TVA nor its property, franchises, or income is subject to taxation by states or their subdivisions. The TVA Act requires TVA to make payments to states and counties in which TVA
conducts its power operations and in which TVA has acquired power properties previously subject to state and local taxation.   The total amount of these payments is five percent of gross revenues from sales of power during the preceding year, excluding sales or deliveries to other federal agencies and off-system sales with other utilities, with a provision for minimum payments under certain circumstances. TVA calculates tax equivalent expense by subtracting the prior year fuel cost-related tax equivalent regulatory asset or liability from the payments made to the states and counties during the current year and adding back the current year fuel cost-related tax equivalent regulatory asset or liability. Fuel cost-related tax equivalent expense is recognized in the same accounting period in which the fuel cost-related revenue is recognized.
Maintenance Costs Maintenance CostsTVA records maintenance costs and repairs related to its property, plant, and equipment on the Consolidated Statements of Operations as they are incurred except for the recording of certain regulatory assets for retirement and removal costs.
v3.21.2
Variable Interest Entities (Policies)
 12 Months Ended
Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Impact of VIEs on Consolidated Balance Sheets The financial statement items attributable to carrying amounts and classifications of JSCCG, Holdco, and SCCG as of September 30, 2021 and 2020, as reflected on the Consolidated Balance Sheets, are as follows:
Summary of Impact of VIEs on Consolidated Balance Sheets
At September 30
 20212020
Current liabilities 
Accrued interest$10 $10 
Accounts payable and accrued liabilities3 3 
Current maturities of long-term debt of variable interest entities43 41 
Total current liabilities
56 54 
Other liabilities
Other long-term liabilities20 23 
Long-term debt, net
Long-term debt of variable interest entities, net1,006 1,048 
Total liabilities$1,082 $1,125 
Consolidation, Variable Interest Entity, Policy A VIE is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity. The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life. TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.
v3.21.2
Asset Retirement Obligations Asset Retirement Obligations (Policies)
 12 Months Ended
Sep. 30, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations, Policy
Decommissioning Costs

    TVA recognizes legal obligations associated with the future retirement of certain tangible long-lived assets.  These obligations relate to fossil fuel-fired generating plants, nuclear generating plants, hydroelectric generating plants/dams, transmission structures, and other property-related assets.  Activities involved with retiring these assets could include decontamination and demolition of structures, removal and disposal of wastes, and site restoration.  Revisions to the estimates of asset retirement obligations ("AROs") are made whenever factors indicate that the timing or amounts of estimated cash flows have changed materially.  Any accretion or depreciation expense related to these liabilities and assets is charged to a regulatory asset.  See Note 10 — Regulatory Assets and Liabilities — Nuclear Decommissioning Costs and Non-Nuclear Decommissioning Costs and Note 13 — Asset Retirement Obligations.
v3.21.2
Proprietary Capital Payments to the U.S. Treasury (Policies)
 12 Months Ended
Sep. 30, 2021
Equity [Abstract]  
Payments to U S Treasury
Payments to the U.S. Treasury

TVA paid the U.S. Treasury $4 million, $6 million, and $6 million in 2021, 2020, and 2019, respectively, as a return on the Power Program Appropriation Investment.  The amount of the return on the Power Program Appropriation Investment is based on the Power Program Appropriation Investment balance at the beginning of that year and the computed average interest rate payable by the U.S. Treasury on its total marketable public obligations at the same date.  The interest rates payable by TVA on the Power Program Appropriation Investment were 1.64 percent, 2.44 percent, and 2.37 percent for 2021, 2020, and 2019, respectively.
v3.21.2
Benefit Plans Benefit Plans (Policies)
 12 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Benefit Plans
Accounting Mechanisms

Regulatory Accounting.  TVA has classified all amounts related to unrecognized prior service costs/(credits), net actuarial gains or losses, and the funded status as regulatory assets or liabilities as such amounts are probable of collection in future rates. Additionally, TVA recognizes pension costs as regulatory assets or regulatory liabilities to the extent that the amount calculated under U.S. GAAP as pension expense differs from the amount TVA contributes to the pension plan as pension plan contributions. As a result of plan design changes, future contributions are expected to exceed the expense calculated under U.S. GAAP. Accordingly, TVA will discontinue this regulatory accounting practice once all such deferred costs have been recovered, at which time it will recognize pension costs in accordance with U.S. GAAP.

Cost Method. TVA uses the projected unit credit cost method to determine the service cost and the projected benefit obligation for retirement, termination, and ancillary benefits.  Under this method, a "projected accrued benefit" is calculated at the beginning of the year and at the end of the year for each benefit that may be payable in the future.  The "projected accrued benefit" is based on the plan's accrual formula and upon service at the beginning or end of the year, but it uses final average compensation, social security benefits, and other relevant factors projected to the age at which the employee is assumed to leave active service.  The projected benefit obligation is the actuarial present value of the "projected accrued benefits" at the beginning of the year for employed participants and is the actuarial present value of all benefits for other participants.  The service cost is the actuarial present value of the difference between the "projected accrued benefits" at the beginning and end of the year.

Amortization of Net Gain or Loss.  TVA utilizes the corridor approach for gain/loss amortization.  Differences between actuarial assumptions and actual plan results are deferred and amortized into periodic cost only when the accumulated differences exceed 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets.  If necessary, the excess is amortized over the average future expected working lifetime of participants expected to receive benefits, which is approximately 11 years for the pension plan and 12 years for the post-retirement plan.

Amortization of Prior Service Cost/(Credit). Amortization of net prior service cost/(credit) resulting from a plan change is included as a component of period expense in the year first recognized and every year thereafter until it is fully amortized.  The increase or decrease in the benefit obligation due to the plan change is amortized over the average remaining service period of participating employees expected to receive benefits under the plan. The pension and post-retirement plans currently have prior service costs/(credits) from plan changes made in 2009, 2016, 2018, 2019, and 2020 with remaining amortization periods ranging from one to eight years. However, when a plan change reduces the benefit obligation, existing positive prior service costs are reduced or eliminated starting with the earliest established before a new prior service credit base is established.
Asset Method.  TVA's asset method calculates a market-related value of assets ("MRVA") that recognizes realized and unrealized investment gains and losses over a three-year smoothing period to decrease the volatility of annual net periodic pension benefit costs. The MRVA is used to determine the expected return on plan assets, a component of net periodic pension benefit cost. The difference in the expected return on the MRVA and the actual return on the fair value on plan assets is recognized as an actuarial (gain)/loss in the pension benefit obligation at September 30. However, the MRVA has no impact on the fair value of plan assets measured at September 30.
v3.21.2
Revenue (Policies)
 12 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenues
Revenues

TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month.  Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements.  Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income (expense), net.
v3.21.2
Property, Plant, and Equipment (Policies)
 12 Months Ended
Sep. 30, 2021
Property, Plant and Equipment [Abstract]  
Plant Retirement and Abandonment, Policy [Policy Text Block]
Financial Impact

As a result of TVA's decision to accelerate the retirements of Paradise and Bull Run, certain construction projects at these locations were identified as probable of abandonment or were no longer expected to be in service for greater than one year prior to the plants' retirement dates. The write-off of these projects resulted in $4 million, $11 million, and $151 million of Operating and maintenance expense during the years ended September 30, 2021, 2020, and 2019, respectively. TVA also recognized losses of $2 million and $19 million in Operating and maintenance expense related to additional materials and supplies inventory reserves and write-offs identified at Paradise during the years ended September 30, 2020 and 2019, respectively. Losses recognized during the year ended September 30, 2021, were less than $1 million.

TVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates. As a result of TVA's decision to accelerate the retirement of Paradise and Bull Run, TVA has recognized a cumulative $1.1 billion of accelerated depreciation. Of this amount, $136 million, $387 million, and $566 million were recognized for the years ended September 30, 2021, 2020, and 2019, respectively.
v3.21.2
Summary of Significant Accounting Policies [Table Text Block]
 12 Months Ended
Sep. 30, 2021
Accounting Policies [Abstract]  
Property, Plant, and Equipment Depreciation Rates Average depreciation rates by asset class are as follows:
Property, Plant, and Equipment Depreciation Rates
At September 30
(percent)
202120202019
Asset Class
Nuclear2.38 2.38 2.38 
Coal-fired(1)
1.95 3.62 4.96 
Hydroelectric1.60 1.60 1.61 
Gas and oil-fired2.98 3.04 3.00 
Transmission1.34 1.34 1.34 
Other7.12 7.26 7.16 
v3.21.2
Accounts Receivable, Net Accounts Receivable, Net (Tables)
 12 Months Ended
Sep. 30, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable, Net
Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:
Accounts Receivable, Net
At September 30
 20212020
Power receivables$1,480 $1,401 
Other receivables86 128 
Accounts receivable, net(1)
$1,566 $1,529 
v3.21.2
Inventories, Net Inventories, Net (Tables)
 12 Months Ended
Sep. 30, 2021
Inventory, Net [Abstract]  
Inventories, Net
The table below summarizes the types and amounts of TVA's inventories:
Inventories, Net 
At September 30
 20212020
Materials and supplies inventory$775 $770 
Fuel inventory198 253 
Renewable energy certificates inventory, net12 15 
Allowance for inventory obsolescence(35)(35)
Inventories, net$950 $1,003 
v3.21.2
Net Completed Plant Net Completed Plant (Tables)
 12 Months Ended
Sep. 30, 2021
Property, Plant and Equipment, Net, by Type [Abstract]  
Net Completed Plant
Net completed plant consisted of the following:
Net Completed Plant
At September 30
 20212020
 CostAccumulated Depreciation 
Net		CostAccumulated DepreciationNet
Coal-fired(1)(2)
$19,319 $14,357 $4,962 $18,613 $13,944 $4,669 
Gas and oil-fired6,076 1,824 4,252 6,010 1,696 4,314 
Nuclear26,024 12,632 13,392 25,741 12,141 13,600 
Transmission8,597 3,215 5,382 8,283 3,140 5,143 
Hydroelectric3,525 1,135 2,390 3,410 1,090 2,320 
Other electrical plant1,940 1,101 839 1,981 1,146 835 
Intangible software3 2 1 3 2 1 
Multipurpose dams900 388 512 900 381 519 
Other stewardship27 9 18 29 10 19 
Total$66,411 $34,663 $31,748 $64,970 $33,550 $31,420 
v3.21.2
Other Long-Term Assets (Tables)
 12 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Long-Term Assets
The table below summarizes the types and amounts of TVA's other long-term assets:
Other Long-Term Assets 
At September 30
 2021
2020(1)
Loans and other long-term receivables, net$96 $100 
EnergyRight® receivables, net
57 69 
Prepaid long-term service agreements44 42 
Commodity contract derivative assets40 23 
Other83 91 
Total other long-term assets$320 $325 
Note
(1) At September 30, 2020, $21 million previously classified as Restricted cash and cash equivalents (a component of Other long-term assets) and $11 million previously classified as Prepaid capacity payments (a component of Other long-term assets) have been reclassified to Other (a component of Other long-term assets) to conform with current year presentation.
v3.21.2
Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Tables)
 12 Months Ended
Sep. 30, 2021
Regulatory Assets and Liabilities Disclosure [Abstract]  
Regulatory Assets and Liabilities Components of regulatory assets and regulatory liabilities are summarized in the table below. 
Regulatory Assets and Liabilities 
At September 30
 20212020
Current regulatory assets  
Unrealized losses on interest rate derivatives$114 $114 
Unrealized losses on commodity derivatives3 4 
Fuel cost adjustment receivable79 12 
Total current regulatory assets196 130 
Non-current regulatory assets  
Deferred pension costs and other post-retirement benefits costs3,668 5,193 
Non-nuclear decommissioning costs2,653 2,512 
Unrealized losses on interest rate derivatives1,122 1,506 
Nuclear decommissioning costs363 896 
Other non-current regulatory assets150 138 
Total non-current regulatory assets7,956 10,245 
Total regulatory assets$8,152 $10,375 
Current regulatory liabilities  
Fuel cost adjustment tax equivalents$130 $115 
Unrealized gains on commodity derivatives210 26 
Total current regulatory liabilities340 141 
Non-current regulatory liabilities  
Unrealized gains on commodity derivatives40 23 
Total non-current regulatory liabilities40 23 
Total regulatory liabilities$380 $164 
v3.21.2
Other Long-Term Liabilities Other Long-Term Liabilities (Tables)
 12 Months Ended
Sep. 30, 2021
Other Liabilities, Noncurrent [Abstract]  
Other Long-Term Liabilities The table below summarizes the types and amounts of Other long-term liabilities:
Other Long-Term Liabilities
At September 30
 2021
2020(1)
Interest rate swap liabilities$1,524 $1,927 
Operating lease liabilities122 171 
Currency swap liabilities76 123 
EnergyRight® financing obligation66 78 
Long-term deferred compensation42 38 
Long-term deferred revenue42 38 
Accrued long-term service agreements29 56 
Other140 117 
Total other long-term liabilities$2,041 $2,548 
Note
(1) At September 30, 2020, $38 million and $38 million previously classified as Other (a component of Other long-term liabilities) have been reclassified to Long-term deferred compensation (a component of Other long-term liabilities) and Long-term deferred revenue (a component of Other long-term liabilities), respectively, to conform with current year presentation.
v3.21.2
Asset Retirement Obligations Asset Retirement Obligations (Tables)
 12 Months Ended
Sep. 30, 2021
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligation Activity
Asset Retirement Obligation Activity
 NuclearNon-NuclearTotal
Balance at September 30, 2019$3,136 $2,480 $5,616 
Settlements(1)(113)(114)
Revisions in estimate— 1,077 1,077 
Accretion (recorded as regulatory asset)143 63 206 
Balance at September 30, 20203,278 3,507 6,785 
(1)
Settlements(11)(231)(242)
Revisions in estimate12 191 203 
Additional obligations— 43 43 
Accretion (recorded as regulatory asset)149 64 213 
Balance at September 30, 2021$3,428 $3,574 $7,002 
(1)
Note
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Debt and Other Obligations Debt and Other Obligations (Tables)
 12 Months Ended
Sep. 30, 2021
Debt and Other Obligations [Abstract]  
Schedule of short-term borrowings The following table provides information regarding TVA's short-term borrowings:
Short-term Borrowings
At September 30
 202120202019
Gross amount outstanding - discount notes$780 $57 $922 
Weighted average interest rate - discount notes0.03 %0.06 %2.15 %
Debt Securities Activity
The table below summarizes the long-term debt securities activity for the years ended September 30, 2021 and 2020.
Debt Securities Activity
For the years ended September 30
 20212020
Issues
2020 Series A(1)
$— $1,000 
2021 Series A(2)
500 — 
Discount on debt issues— (3)
Total$500 $997 
Redemptions/Maturities(3)
 
electronotes®
$— $219 
2009 Series B29 28 
2018 Series A— 1,000 
1999 Series A PARRS (TVE)— 23 
1998 Series D PARRS (TVC)— 17 
1995 Series B— 140 
2011 Series A1,500 — 
1998 Series H331 — 
Total redemptions/maturities of power bonds1,860 1,427 
Notes payable— 23 
Variable interest entities41 39 
Total$1,901 $1,489 
Notes
(1) The 2020 Series A Bonds were issued at 99.706 percent of par.
(2) The 2021 Series A Bonds were issued at 99.982 percent of par.
(3) All redemptions were at 100 percent of par.
Debt Outstanding Total debt outstanding at September 30, 2021 and 2020, consisted of the following: 
Short-Term Debt
At September 30
 
CUSIP or Other Identifier
 
Maturity
 Call/(Put) Date 
Coupon Rate		20212020
Short-term debt, net of discounts$780 $57 
Current maturities of long-term debt of VIEs issued at par43 41 
Current maturities of notes payable— — 
Current maturities of power bonds issued at par
880591EN8
8/15/20221.875%1,000 — 
880591EF512/15/20213.770%1 1 
880591EF56/15/20223.770%27 28 
880591EL22/15/20213.875%— 1,500 
880591DC36/7/20215.805%— 258 
(1)
Total current maturities of power bonds issued at par   1,028 1,787 
Total current debt outstanding, net   $1,851 $1,885 
Note
(1) Includes net exchange gain from currency transactions of $73 million at September 30, 2020.
Long-Term Debt
At September 30
 
CUSIP or Other Identifier
 
Maturity
Coupon
Rate		Effective Call Date2021 Par2020 ParStock Exchange Listings
880591EN88/15/20221.875%$— $1,000 New York
880591ER99/15/20242.875%1,000 1,000 New York
880591EW85/15/20250.750%1,000 1,000 New York
880591CJ911/1/20256.750%1,350 1,350 New York, Hong Kong, Luxembourg, Singapore
880591EU22/1/20272.875%1,000 1,000 New York
880591300(3)
6/1/20282.134%256 256 New York
880591409(3)
5/1/20292.216%208 208 New York
880591DM15/1/20307.125%1,000 1,000 New York, Luxembourg
880591EX69/15/20311.500%500 — New York
880591DP46/7/20326.587%
(2)
337 
(1)
323 
(1)
New York, Luxembourg
880591DV17/15/20334.700%472 472 New York, Luxembourg
880591EF56/15/20343.770%190 218 None
880591DX76/15/20354.650%436 436 New York
880591CK64/1/20365.980%121 121 New York
880591CS94/1/20365.880%1,500 1,500 New York
880591CP51/15/20386.150%1,000 1,000 New York
880591ED06/15/20385.500%500 500 New York
880591EH19/15/20395.250%2,000 2,000 New York
880591EP312/15/20423.500%1,000 1,000 New York
880591DU36/7/20434.962%
(2)
202 
(1)
194 
(1)
New York, Luxembourg
880591EB41/15/20484.875%500 500 New York, Luxembourg
880591DZ24/1/20565.375%1,000 1,000 New York
880591EJ79/15/20604.625%1,000 1,000 New York
880591ES79/15/20654.250%1,000 1,000 New York
Subtotal 17,572 18,078  
Unamortized discounts, premiums, issue costs, and other  (115)(122) 
Total long-term outstanding power bonds, net  17,457 17,956  
Long-term debt of VIEs, net1,006 1,048 
Total long-term debt, net$18,463 $19,004 
Notes
(1)  Includes net exchange gain from currency transactions of $58 million and $80 million at September 30, 2021 and 2020, respectively.
(2)  The coupon rate represents TVA's effective interest rate.
(3)  TVA PARRS, CUSIP numbers 880591300 and 880591409, may be redeemed under certain conditions.  See Put and Call Options above.
Maturities Due in the Year Ending September 30
Maturities Due in the Year Ending September 30
 20222023202420252026ThereafterTotal
Long-term power bonds including current maturities(1)
$1,028 $29 $1,022 $1,022 $1,370 $14,187 $18,658 
Short-term debt, net of discounts780 — — — — — 780 
Note
(1) Long-term power bonds does not include non-cash items of foreign currency exchange gain of $58 million, unamortized debt issue costs of $43 million, and net discount on sale of Bonds of $72 million.
Summary of Long-Term Credit Facilities
The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:
Summary of Long-Term Credit Facilities
At September 30, 2021
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
September 2023$1,000 $328 $— $672 
 February 2024150 38 — 112 
February 2025500 500 — — 
 September 20261,000 301 — 699 
     Total$2,650 $1,167 $— $1,483 
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions (Tables)
 12 Months Ended
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
For the years ended September 30
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20212020
Currency swapsTo protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction$126 $(1)
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense
For the years ended September 30
Derivatives in Cash Flow Hedging Relationship20212020
Currency swaps$97 $38 
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 $25 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 exchange gain on the debt.
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
For the years ended September 30
 
Derivative Type
Objective of Derivative(2)
Accounting for Derivative Instrument20212020
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 assets or liabilities

Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow		$(115)$(97)
Commodity contract derivativesTo protect against fluctuations in market prices of purchased coal or natural gas (price risk)Mark-to-market gains and losses are recorded as regulatory assets or liabilities

Realized gains and losses due to contract settlements are recognized in Fuel expense as incurred		— (1)
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 years ended September 30, 2021 and 2020.
(2) During the fourth quarter of 2020, TVA discontinued derivative accounting for forward coal contracts.
Fair Values of TVA Derivatives
Fair Values of TVA Derivatives
At September 30
 20212020
Derivatives That Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£200 million Sterling(1)
$— 
$—
$(78)
Accounts payable and accrued liabilities $(78)
£250 million Sterling
(36)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(32)
(63)
Accounts payable and accrued liabilities $(5); Other long-term liabilities $(58)
£150 million Sterling
(47)
Accounts payable and accrued liabilities $(3); Other long-term liabilities $(44)
(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
$(1,182)
Accounts payable and accrued liabilities $(44); Accrued interest $(37); Other long-term liabilities $(1,101)
$(1,449)
Accounts payable and
accrued liabilities $(43); Accrued interest $(37);
Other long-term liabilities
$(1,369)
$476 million notional
(455)
Accounts payable and accrued liabilities $(22); Accrued interest $(10); Other long-term liabilities $(423)
(588)
Accounts payable and
accrued liabilities $(22); Accrued interest $(10);
Other long-term liabilities
$(556)
$42 million notional(2)
(2)
Accounts payable and accrued liabilities $(1); Accrued interest $(1)
(4)
Accounts payable and
accrued liabilities $(2); Other long-term liabilities $(2)
Commodity contract derivatives247 
Other current assets $210; Other long-term assets $40; Accounts payable and accrued liabilities $(3)
46 
Other current assets $26; Other long-term assets $23; Accounts payable and accrued liabilities $(3)
Currency Swaps Outstanding TVA had the following currency swaps outstanding at September 30, 2021:
Currency Swaps Outstanding
Effective Date of Currency Swap ContractAssociated TVA Bond Issues Currency ExposureExpiration Date of SwapOverall Effective
Cost to TVA
2001£250 million20326.59%
2003£150 million20434.96%
Commodity Contract Derivatives
Commodity Contract Derivatives 
At September 30
 20212020
 
Number of Contracts
Notional AmountFair Value (MtM)Number of ContractsNotional Amount
Fair Value (MtM)
Natural gas contract derivatives40263 million mmBtu$247 42302 million mmBtu$46 
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 September 30, 2021
At September 30, 2020
Assets
Commodity derivatives not subject to master netting or similar arrangement$250 $49 
Liabilities
Currency swaps(2)
$83 $209 
Interest rate swaps(2)
1,639 2,041 
Total derivatives subject to master netting or similar arrangement1,722 2,250 
Commodity derivatives not subject to master netting or similar arrangement3 3 
Total liabilities$1,725 $2,253 
Notes
(1) Offsetting amounts primarily include counterparty netting of derivative contracts, margin account deposits for futures commission merchants transactions, and cash collateral received or paid in accordance with the accounting guidance for derivatives and hedging transactions. There were no material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2021 or 2020.
(2) Letters of credit of approximately $1.2 billion and $1.5 billion were posted as collateral at September 30, 2021 and 2020, respectively, to partially secure the liability positions of one of the currency swaps and one of the interest rate swaps in accordance with the collateral requirements for these derivatives.
v3.21.2
Fair Value Measurements (Tables)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Fair Value Disclosures [Abstract]    
Valuation Techniques
The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:
Level 1—
 		Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2
 		—
 		Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3—
 
Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.
  
Unrealized Investment Gains (Losses) TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)
At or for the years ended September 30
FundFinancial Statement Presentation20212020
NDTRegulatory asset$279 $37 
ARTRegulatory asset145 32 
SERPOther income (expense)7 3 
DCPOther income (expense)1 2 
  
Fair Value Measurements  
Fair Value Measurements
At September 30, 2021
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$634 $— $— $634 
Government debt securities(1)
573 24 — 597 
Corporate debt securities(2)
— 411 — 411 
Mortgage and asset-backed securities— 63 — 63 
Institutional mutual funds225 — — 225 
Forward debt securities contracts— 2 — 2 
Private equity funds measured at net asset value(3)
— — — 357 
Private real asset funds measured at net asset value(3)
— — — 272 
Private credit measured at net asset value(3)
— — — 71 
Commingled funds measured at net asset value(3)
— — — 1,421 
Total investments1,432 500 — 4,053 
Commodity contract derivatives— 250 — 250 
Total$1,432 $750 $— $4,303 
Quoted Prices in Active Markets for Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $83 $— $83 
Interest rate swaps— 1,639 — 1,639 
Commodity contract derivatives— 3 — 3 
Total$— $1,725 $— $1,725 
Notes
(1) Includes government-sponsored entities, including $573 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2020
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$500 $— $— $500 
Government debt securities(1)
485 40 — 525 
Corporate debt securities(2)
— 356 — 356 
Mortgage and asset-backed securities— 27 — 27 
Institutional mutual funds188 — — 188 
Forward debt securities contracts— 13 — 13 
Private equity funds measured at net asset value(3)
— — — 194 
Private real asset funds measured at net asset value(3)
— — — 168 
    Private credit measured at net asset value(3)
— — — 53 
Commingled funds measured at net asset value(3)
— — — 1,174 
Total investments1,173 436 — 3,198 
Commodity contract derivatives— 49 — 49 
Total$1,173 $485 $— $3,247 
Quoted Prices in Active Markets for Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(4)
$— $209 $— $209 
Interest rate swaps— 2,041 — 2,041 
Commodity contract derivatives— 3 — 3 
Total$— $2,253 $— $2,253 
Notes
(1) Includes government-sponsored entities.
(2) Includes both U.S. and foreign debt.
(3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(4) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements Using Significant Unobservable Inputs
The following table presents a reconciliation of all commodity contract derivatives measured at fair value on a recurring basis using significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs
(in millions)
 
Commodity Contract Derivatives(1)
Balance at October 1, 2019$(4)
Settlements(1)
Change in net unrealized gains (losses) deferred as regulatory assets and liabilities5 
Balance at September 30, 2020$— 
  
Estimated Values of Financial Instruments Not Recorded at Fair Value The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2021 and 2020, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
 At September 30, 2021At September 30, 2020
 Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$72 $71 $87 $86 
Loans and other long-term receivables, net (including current portion)Level 299 94 105 93 
EnergyRight® financing obligations (including current portion)
Level 282 92 97 108 
Unfunded loan commitmentsLevel 2— 3 — 2 
Membership interests of VIEs subject to mandatory redemption (including current portion)Level 223 30 26 35 
Long-term outstanding power bonds, net (including current maturities)Level 218,485 24,309 19,743 26,630 
Long-term debt of VIEs, net (including current maturities)Level 21,049 1,307 1,089 1,419 
  
v3.21.2
Proprietary Capital (Tables)
 12 Months Ended
Sep. 30, 2021
Stockholders' Equity Note [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Accumulated Other Comprehensive Income (Loss)

The items included in AOCI consist of market valuation adjustments for certain derivative instruments.  See Note 16 — Risk Management Activities and Derivative Transactions.
TVA records exchange rate gains and losses on debt and related accrued interest in net income and marks its currency swap assets and liabilities to market through OCI.  TVA recognized unrealized gains (losses) of $126 million and $(1) million in 2021 and 2020, respectively, into AOCI on the MtM of currency swaps. TVA then reclassified an amount out of AOCI into net income, offsetting the gain/loss from recording the exchange gain/loss on the debt and related accrued interest.  The amounts reclassified from OCI into net income resulted in increases (decreases) to net income of $97 million, $38 million, and $(45) million in 2021, 2020, and 2019, respectively.  These reclassifications, coupled with the recording of the exchange gain/loss on the debt and related accrued interest, did not have an impact on net income in 2021, 2020, and 2019.  Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $25 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 exchange gain on the debt and related accrued interest.
Summary of Proprietary Capital Activity
The table below summarizes TVA's activities related to appropriated funds and retained earnings.
Summary of Proprietary Capital Activity
At or for the years ended September 30
 20212020
Power ProgramNonpower
 Programs		Power ProgramNonpower
 Programs
Appropriation Investment$258 $4,351 $258 $4,351 
Proprietary Capital    
Balance at beginning of year12,177 (3,803)10,823 (3,795)
Net income (loss) for year1,520 (8)1,360 (8)
Return on power program appropriation investment(4)— (6)— 
Implementation of new accounting standard(1)
(4)— — — 
Balance at end of year13,689 (3,811)12,177 (3,803)
Net proprietary capital at September 30$13,947 $540 $12,435 $548 
v3.21.2
Other Income (Expense), Net Other Income (Expense), Net (Tables)
 12 Months Ended
Sep. 30, 2021
Other Income and Expenses [Abstract]  
Other Income (Expense), Net
Income and expenses not related to TVA's operating activities are summarized in the following table:
Other Income (Expense), Net
For the years ended September 30
 202120202019
Bellefonte$(28)$— $21 
Interest income12 18 25 
External services13 12 13 
Gains (losses) on investments16 9 3 
Miscellaneous— (3)— 
Total other income (expense), net$13 $36 $62 
v3.21.2
Benefit Plans Benefit Plans (Tables)
 12 Months Ended
Sep. 30, 2021
Retirement Benefits [Abstract]  
Obligations and Funded Status
The changes in plan obligations, assets, and funded status for the years ended September 30, 2021 and 2020, were as follows:
Obligations and Funded Status
For the years ended September 30
911,000,000 Pension BenefitsOther Post-Retirement Benefits
 2021202020212020
Change in benefit obligation    
Benefit obligation at beginning of year$13,675 $13,312 $544 $499 
Service cost57 55 18 16 
Interest cost368 415 16 16 
Plan participants' contributions5 6 — — 
Collections(1)
— — 17 20 
Actuarial (gain) loss (25)614 (53)39 
Plan change— 2 — — 
Net transfers (to) from variable fund/401(k) plan2 2 — — 
Expenses paid(6)(5)— — 
Benefits paid(728)(726)(44)(46)
Benefit obligation at end of year13,348 13,675 498 544 
Change in plan assets    
Fair value of net plan assets at beginning of year7,959 7,980 — — 
Actual return on plan assets1,572 397 — — 
Plan participants' contributions5 6 — — 
Collections(1)
— — 17 20 
Net transfers (to) from variable fund/401(k) plan2 2 — — 
Employer contributions306 305 27 26 
Expenses paid(6)(5)— — 
Benefits paid(728)(726)(44)(46)
Fair value of net plan assets at end of year9,110 7,959 — — 
Funded status$(4,238)$(5,716)$(498)$(544)
Note
(1) Collections include retiree contributions as well as provider discounts and rebates.
Amounts Recognized on TVA's Consolidated Balance Sheets
Amounts related to these benefit plans recognized on TVA's Consolidated Balance Sheets consist of regulatory assets and liabilities that have not been recognized as components of net periodic benefit cost at September 30, 2021 and 2020, and the funded status of TVA's benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:
Amounts Recognized on TVA's Consolidated Balance Sheets
At September 30
 Pension BenefitsOther Post-Retirement Benefits
 2021202020212020
Regulatory assets (liabilities)$3,636 $5,115 $32 $78 
Accounts payable and accrued liabilities(7)(5)(24)(28)
Pension and post-retirement benefit obligations(1)
(4,231)(5,711)(474)(516)
Note
(1) The table above excludes $340 million and $390 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2021 and 2020, respectively.
Post-Retirement Benefit Costs Deferred as Regulatory Assets
Unrecognized amounts included in regulatory assets or liabilities yet to be recognized as components of accrued benefit cost at September 30, 2021 and 2020, consisted of the following:
Post-Retirement Benefit Costs Deferred as Regulatory Assets (Liabilities)
At September 30
 Pension BenefitsOther Post-Retirement Benefits
 2021202020212020
Unrecognized prior service credit$(517)$(615)$(93)$(112)
Unrecognized net loss4,062 5,620 125 190 
Amount capitalized due to actions of regulator91 110 — — 
Total regulatory assets (liabilities)$3,636 $5,115 $32 $78 
Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets accumulated postretirement benefit obligation ("APBO") has been disclosed in the Obligations and Funded Status table above. The following table provides the pension plan accumulated benefit obligation ("ABO") in excess of plan assets. The other post-retirement plans are unfunded or have no plan assets.
Accumulated Benefit Obligations in Excess of Plan Assets
At September 30
 20212020
Accumulated benefit obligation$13,299 $13,613 
Fair value of net plan assets9,110 7,959 
Components of Net Periodic Benefit Cost
The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2021, 2020, and 2019 were as follows:
Components of Net Periodic Benefit Cost
For the years ended September 30
 Pension BenefitsOther Post-Retirement Benefits
 202120202019202120202019
Service cost$57 $55 $44 $18 $16 $11 
Interest cost368 415 499 16 16 18 
Expected return on plan assets(493)(488)(477)— — — 
Amortization of prior service credit(97)(97)(99)(18)(24)(24)
Recognized net actuarial loss452 436 336 11 10 4 
Total net periodic benefit cost as actuarially determined287 321 303 27 18 9 
Amount expensed (capitalized) due to actions of regulator19 (15)1 — — — 
Net periodic benefit cost$306 $306 $304 $27 $18 $9 
Actuarial Assumptions
Actuarial Assumptions Utilized to Determine Benefit Obligations at September 30
 Pension BenefitsOther Post-Retirement Benefits
 2021202020212020
Discount rate2.90%2.75%3.05%3.05%
Rate of compensation increase3.37%3.43%N/AN/A
Weighted average interest crediting rate5.15%5.15%N/AN/A
Cost of living adjustment (COLA)(1)
2.00%2.00%2.00%2.00%
Pre-Medicare eligible per capita claim costs
Current health care cost trend rateN/AN/A6.25%6.50%
Ultimate health care cost trend rateN/AN/A5.00%5.00%
Year ultimate trend rate is reachedN/AN/A20272027
Pre-Medicare eligible per capita contributions(2)
Current health care cost trend rateN/AN/A8.51%11.93%
Ultimate health care cost trend rateN/AN/A5.00%5.00%
Year ultimate trend rate is reachedN/AN/A20272027
Post-Medicare eligible
Current health care cost trend rateN/AN/A—%—%
Ultimate health care cost trend rateN/AN/A4.00%4.00%
Year ultimate trend rate is reachedN/AN/A20242024
Notes
(1) The COLA assumption is the ultimate long-term rate. The calendar year rate for 2022 is assumed to be 3.15 percent, and for years thereafter the ultimate is used.
(2) In 2021 and 2020, due to the COVID-19 pandemic and premium experience, TVA reset the pre-Medicare eligible per capita contributions. The 2021 current trend rate remains at 8.51 percent for years 2022 through 2024, is 5.50 percent in 2025, and reaches the ultimate rate of 5.00 percent in 2027.
Actuarial Assumptions Utilized to Determine Net Periodic Benefit Cost for the Years Ended September 30(1)
 Pension BenefitsOther Post-Retirement Benefits
 202120202019202120202019
Discount rate2.75%3.20%4.35%3.05%3.30%4.40%
Expected return on plan assets(2)
6.75%6.75%6.75%N/AN/AN/A
Weighted average interest crediting rate5.15%5.15%5.16%N/AN/AN/A
Cost of living adjustment (COLA)(3)
2.00%2.00%2.00%2.00%2.00%2.00%
Rate of compensation increase3.37%3.43%3.50%N/AN/AN/A
Pre-Medicare eligible per capita claims costs
Current health care cost trend rateN/AN/AN/A6.50%6.75%6.25%
Ultimate health care cost trend rateN/AN/AN/A5.00%5.00%5.00%
Year ultimate trend rate is reachedN/AN/AN/A202720272024
Pre-Medicare eligible per capita contributions
Current health care cost trend rate(4)
N/AN/AN/A11.93%6.75%6.25%
Ultimate health care cost trend rateN/AN/AN/A5.00%5.00%5.00%
Year ultimate trend rate is reachedN/AN/AN/A202720272024
Post-Medicare eligible
Current health care cost trend rateN/AN/AN/A—%—%—%
Ultimate health care cost trend rateN/AN/AN/A4.00%4.00%4.00%
Year ultimate trend rate is reachedN/AN/AN/A202420232021
Notes
(1) The actuarial assumptions used to determine the benefit obligations at September 30 of each year are subsequently used to determine net periodic benefit cost
for the following year except the rate of compensation increase assumption.
(2) The actual return on assets for 2021, 2020, and 2019 were 20.30 percent, 5.11 percent, and 4.99 percent, respectively.
(3) The COLA assumption is the ultimate rate. The actual calendar year rate is used in determining the expense, and for years thereafter the ultimate rate is used.
(4) Due to the COVID-19 pandemic and premium experience, TVA temporarily reset the pre-Medicare eligible per capita contributions current trend rate to measure 2021 other post-retirement cost.
Sensitivity to Certain Changes in Pension Assumptions The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions:
Sensitivity to Certain Changes in Pension Assumptions
At September 30, 2021
 
 
Actuarial Assumption
Change in Assumption
Impact on 2021 Pension Cost
Impact on 2021 Projected Benefit Obligation
Discount rate(0.25)%$16 $396 
Rate of return on plan assets(0.25)%18 N/A
Cost of living adjustments0.25 %29 258 
Asset Holdings and Fair Value Measurements At September 30, 2021 and 2020, the asset holdings of TVARS included the following:
Asset Holdings of TVARS
At September 30
  Plan Assets at September 30
Asset CategoryTarget Allocation20212020
Growth assets17 %18 %44 %
Defensive growth assets38 %35 %20 %
Defensive assets20 %20 %18 %
Inflation-sensitive assets25 %27 %18 %
Total100 %100 %100 %
Fair Value Measurements

    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2021:
TVA Retirement System
At September 30, 2021
 
Total(1)(2)
Quoted Prices in Active Markets for Identical
Assets/Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets    
Equity securities$992 $990 $— $2 
Preferred securities9 2 6 1 
Debt securities   
Corporate debt securities1,360 — 1,359 1 
Residential mortgage-backed securities275 — 267 8 
    Debt securities issued by U.S. Treasury741 741 — — 
Debt securities issued by foreign governments
204 — 200 4 
Asset-backed securities
151 — 110 41 
Debt securities issued by state/local governments
28 — 28 — 
Commercial mortgage-backed securities
168 — 151 17 
Commingled funds measured at net asset value(3)
Equity619 — — — 
Debt881 — — — 
Blended105 — — — 
Institutional mutual funds841 841 — — 
Cash equivalents and other short-term investments710 323 387 — 
Private credit measured at net asset value(3)
324 — — — 
Private equity measured at net asset value(3)
1,333 — — — 
Private real assets measured at net asset value(3)
760 — — — 
Securities lending collateral240 — 240 — 
Derivatives    
Futures
1 1 — — 
Swaps6 — 6 — 
Foreign currency forward receivable1 — 1 — 
Total assets$9,749 $2,898 $2,755 $74 
Liabilities    
Derivatives
Futures$4 $4 $— $— 
Foreign currency forward payable1 — 1 — 
Swaps23 — 23 — 
Securities sold under agreements to repurchase108 — 108 — 
Total liabilities$136 $4 $132 $— 
Notes
(1)  Excludes approximately $263 million in net payables associated with security purchases and sales and various other payables.
(2)  Excludes a $240 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.
(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2020:
TVA Retirement System
At September 30, 2020
 
Total(1)(2)
Quoted Prices in Active Markets for Identical
Assets/Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Assets    
Equity securities$1,624 $1,621 $— $3 
Preferred securities11 — 11 — 
Debt securities   
Corporate debt securities1,421 — 1,418 3 
Residential mortgage-backed securities317 — 314 3 
Debt securities issued by U.S. Treasury701 701 — — 
Debt securities issued by foreign governments231 — 179 52 
Asset-backed securities116 — 88 28 
Debt securities issued by state/local governments23 — 23 — 
Commercial mortgage-backed securities
91 — 86 5 
Commingled funds measured at net asset value(3)
Equity931 — — — 
Debt203 — — — 
Blended102 — — — 
Institutional mutual funds277 277 — — 
Cash equivalents and other short-term investments338 77 261 — 
Private credit measured at net asset value(3)
166 — — — 
Private equity measured at net asset value(3)
1,003 — — — 
Private real assets measured at net asset value(3)
629 — — — 
Securities lending collateral167 — 167 — 
Derivatives
Futures
3 3 — — 
Swaps
10 — 10 — 
    Options2 — 2 — 
Foreign currency forward receivable2 — 2 — 
Total assets$8,368 $2,679 $2,561 $94 
Liabilities    
Derivatives
Futures$1 $1 $— $— 
Foreign currency forward payable3 — 3 — 
Swaps6 — 6 — 
Options2 — 2 — 
Securities sold under agreements to repurchase123 — 123 — 
Total liabilities$135 $1 $134 $— 
Notes
(1)  Excludes approximately $107 million in net payables associated with security purchases and sales and various other payables.
(2)  Excludes a $167 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.
(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.
Fair Value Measurements Using Significant Unobservable Inputs
The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):
Fair Value Measurements Using Significant Unobservable Inputs
 Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at October 1, 2019$42 
Net realized/unrealized gains (losses)46 
Purchases, sales, issuances, and settlements (net)11 
Transfers in and/or out of Level 3(5)
Balance at September 30, 202094 
Net realized/unrealized gains (losses)(48)
Purchases, sales, issuances, and settlements (net)32 
Transfers in and/or out of Level 3(4)
Balance at September 30, 2021$74 
Estimated Future Benefit Payments
Cash Flows

Estimated Future Benefit Payments.  The following table sets forth the estimated future benefit payments under the benefit plans.
Estimated Future Benefits Payments
At September 30, 2021
 
Pension
Benefits(1)
Other Post-Retirement Benefits
2022$790 $24 
2023786 23 
2024782 21 
2025781 20 
2026776 20 
2027 - 20313,772 107 
Note
(1) Participants are assumed to receive the Fixed Fund in a lump sum in lieu of available annuity options allowed for certain grandfathered participants resulting in higher estimated pension benefits payments.
Amounts recognized on Consolidated Balance Sheets
Amounts Recognized on TVA's Consolidated Balance Sheets
At September 30
 20212020
Accounts payable and accrued liabilities(1)
$— $— 
Post-retirement and post-employment benefit obligations340 390 
v3.21.2
Commitments and Contingencies (Tables)
 12 Months Ended
Sep. 30, 2021
Commitments and Contingencies Disclosure [Abstract]  
Unfunded loan commitments At September 30, 2021, TVA's commitments under unfunded loan commitments were $4 million for 2022. TVA has no commitments under unfunded loan commitments for 2023 through 2026.
v3.21.2
Related Parties Related Parties (Tables)
 12 Months Ended
Sep. 30, 2021
Related Party Transactions [Abstract]  
Related Party Transactions Transactions with agencies of the federal government were as follows:
Related Party Transactions
At or for the years ended September 30
 202120202019
Revenue from sales of electricity$109 $105 $118 
Other income280 260 258 
Expenditures
Operating expenses214 224 222 
Additions to property, plant, and equipment10 9 10 
Cash and cash equivalents30 31 45 
Accounts receivable, net65 94 76 
Investment funds573 485 279 
Long-term accounts receivable31 27 53 
Accounts payable and accrued liabilities15 39 69 
Long-term power bonds, net1 1 — 
Return on power program appropriation investment4 6 6 
v3.21.2
Revenue (Tables)
 12 Months Ended
Sep. 30, 2021
Revenue from Contract with Customer [Abstract]  
Revenues
Revenues

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

During 2021, revenues generated from TVA's electricity sales were $10.4 billion and accounted for virtually all of TVA's revenues. TVA's operating revenues by state for each of the last three years are detailed in the table below:
Operating Revenues By State
For the years ended September 30
(in millions)
 202120202019
Alabama
$1,508 $1,439 $1,593 
Georgia
254 249 270 
Kentucky
655 624 691 
Mississippi
984 941 1,063 
North Carolina
66 65 74 
Tennessee
6,841 6,740 7,419 
Virginia
42 42 45 
Subtotal10,350 10,100 11,155 
Off-system sales7 4 4 
Revenue from sales of electricity10,357 10,104 11,159 
Other revenue146 145 159 
Total operating revenues$10,503 $10,249 $11,318 

    TVA's operating revenues by customer type for each of the last three years are detailed in the table below:
Operating Revenues by Customer Type
For the years ended September 30
(in millions)
 202120202019
Revenue from sales of electricity  
Local power companies$9,534 $9,406 $10,351 
Industries directly served707 588 686 
Federal agencies and other116 110 122 
Revenue from sales of electricity10,357 10,104 11,159 
Other revenue146 145 159 
Total operating revenues$10,503 $10,249 $11,318 

    TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a Partnership Agreement option that better aligns the length of LPC power contracts with TVA's long-term commitments. Under the partnership arrangement, the LPC power contracts automatically renew each year and have a 20-year termination notice. The partnership arrangements can be terminated under certain circumstances, including TVA's failure to limit rate increases as provided for in the agreements going forward. Participating LPCs receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. The total wholesale bill credits to LPCs participating in the long-term Partnership Agreement were $189 million, $163 million, and $14 million, respectively, for the years ended September 30, 2021, 2020, and 2019. In June 2020, TVA provided participating LPCs a flexibility option that allows them to locally generate or purchase up to approximately five percent of average total hourly energy sales over 2015 - 2019 in order to meet their individual customers' needs. As of November 12, 2021, 145 LPCs had signed the 20-year Partnership Agreement with TVA, and 74 LPCs had signed a Flexibility Agreement.

In August 2020, the TVA Board approved a Pandemic Relief Credit that was effective for 2021. The 2.5 percent monthly base rate credit, which totaled $221 million for 2021, applied to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers through September 2021. In August 2021, the TVA Board approved a 2.5 percent monthly base rate credit, the Pandemic Recovery Credit, which will be effective for 2022. The credit, expected to approximate $220 million, will also apply to service provided to TVA's LPCs, their large commercial and industrial customers, and TVA directly served customers. In November 2021, the TVA Board approved a 1.5 percent monthly base rate credit, which is an extension of the Pandemic Recovery Credit, to be effective for 2023. The 2023 credit is expected to approximate $133 million, and it will be administered in a manner similar to the Pandemic Recovery Credit.
    The number of LPCs by contract arrangement, the revenues derived from such arrangements for 2021, and the percentage those revenues comprised of TVA's total operating revenues for 2021, are summarized in the table below:
TVA Local Power Company Contracts
At or for the year ended September 30, 2021
Contract Arrangements(1)
Number of LPCs Revenue from Sales of Electricity to LPCs
(in millions)		Percentage of Total Operating Revenues
20-year termination notice145 $7,987 76.0 %
5-year termination notice8 1,547 14.7 %
Total153 $9,534 90.7 %
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 — MLGW and Nashville Electric Service ("NES") — have contracts with a five-year and a 20-year termination notice period, respectively.  Sales to MLGW and NES accounted for nine percent and eight percent, respectively, of TVA's total operating revenues in 2021, 2020, and 2019. Certain LPCs, including MLGW, are evaluating options for future energy choices. In addition, in January 2021, four LPCs filed a complaint and petition with the Federal Energy Regulatory Commission ("FERC") asking FERC to order TVA to provide transmission and interconnection service to the LPCs or other suppliers that want to serve them. In August 2021, one of the LPCs notified FERC of its withdrawal from the complaint and petition. The remaining three LPCs account for three percent of TVA's total operating revenues for the year ended September 30, 2021. See Note 23 — Commitments and Contingencies — Legal Proceedings — Challenge to Anti-Cherrypicking Amendment for updates to this legal proceeding.
Contract with Customer, Asset and Liability [Table Text Block]
Contract Balances

    Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA does not have any material contract assets at September 30, 2021.

    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.
v3.21.2
Leases (Table Text Block)
 12 Months Ended
Sep. 30, 2021
Leases [Abstract]  
Amounts Recognized on Balance Sheets The following table provides information regarding the presentation of leases on the Consolidated Balance Sheets:
Amounts Recognized on TVA's Consolidated Balance Sheets
At September 30
20212020
Assets
  OperatingOperating lease assets, net of amortization$165 $232 
  FinanceFinance leases692 516 
Total lease assets$857 $748 
Liabilities
Current
  OperatingAccounts payable and accrued liabilities$40 $63 
  FinanceAccounts payable and accrued liabilities60 41 
Non-current
  OperatingOther long-term liabilities122 171 
  FinanceFinance lease liabilities687 525 
Total lease liabilities$909 $800 
Lease Costs TVA's leases consist primarily of railcars, equipment, real estate/land, power generating facilities, and gas pipelines. TVA's leases have various terms and expiration dates remaining from less than one year to approximately 25 years. The components of lease costs were as follows:
Lease Costs
For the years ended September 30
(in millions)
20212020
Operating lease costs(1)
$52 $84 
Variable lease costs(1)
75 75 
Short-term lease costs(1)
12 7 
Finance lease costs
Amortization of lease assets(2)
51 15 
Interest on lease liabilities(3)(4)
39 33 
Total finance lease costs90 48 
     Total lease costs$229 $214 
Notes
(1) Costs are included in Operating and maintenance expense, Fuel expense, Purchased power expense, and Tax equivalents expense on the Consolidated Statements of Operations. TVA's rental expense for operating leases was approximately $97 million for the year ended September 30, 2019.
(2) Expense is included in Depreciation and amortization expense on the Consolidated Statements of Operations.
(3) Expense is included in Interest expense on the Consolidated Statements of Operations.
(4) Certain finance leases receive regulatory accounting treatment and are reclassified to Fuel expense and Purchased power expense.
Amounts Recognized on Statements of Cash Flows
The following table contains additional information with respect to cash and non-cash activities related to leases:
Amounts Recognized on TVA's Consolidated Statements of Cash Flows
For the years ended September 30
(in millions)
20212020
Operating cash flows for operating leases$53 $85 
Operating cash flows for finance leases39 33 
Financing cash flows for finance leases52 15 
Lease assets obtained in exchange for lease obligations (non-cash)
Operating leases(1)
$(22)$110 
Finance leases233 394 
Note
(1) Amount for 2021 represents a non-cash reduction due to a lease that was amended during the fiscal year resulting in derecognition of the operating lease asset and obligation upon remeasurement. Amount for 2020 excludes operating lease assets recorded as a result of the adoption of the new lease standard.
Weighted Averages TVA has certain finance leases under PPAs under which the present value of the minimum lease payments exceeds the fair value of the related lease asset at the date of measurement.  This resulted in an interest rate that was higher than TVA's incremental borrowing rate. The weighted average remaining lease term in years and the weighted average discount rate for TVA's operating and financing leases were as follows:
Weighted Averages
At September 30
20212020
Weighted average remaining lease terms
Operating leases5 years5 years
Finance leases12 years12 years
Weighted average discount rate(1)
Operating leases1.5%1.6%
Finance leases17.7%21.8%
Note
(1) The discount rate is calculated using the rate implicit in a lease if it is readily determinable. If the rate used by the lessor is not readily determinable, TVA uses its incremental borrowing rate as permitted by accounting guidance. The incremental borrowing rate is influenced by TVA's credit rating and lease term and as such may differ for individual leases, embedded leases, or portfolios of leased assets.
Future Minimum Lease Payments The following table presents maturities of lease liabilities and a reconciliation of the undiscounted cash flows to lease liabilities at September 30, 2021:
Future Minimum Lease Payments
Minimum Payments Due at September 30, 2021
Operating leases
2022$42 
202340 
202437 
202534 
202610 
Thereafter5 
Minimum annual payments168 
Less: present value discount(6)
Operating present value of net minimum lease payments$162 
Finance leases
2022$115 
2023112 
2024107 
2025106 
2026105 
   Thereafter656 
Minimum annual payments1,201 
Less: amount representing interest(454)
Finance present value of net minimum lease payments$747 
v3.21.2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Tables)
 12 Months Ended
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Current Assets
Other Current Assets 
At September 30
 20212020
Commodity contract derivative assets$210 $26 
Other77 58 
Other current assets$287 $84 
v3.21.2
Summary of Significant Accounting Policies - General (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
People
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2014
USD ($)
Accounting Policies [Abstract]          
Cash and Cash Equivalents, at Carrying Value $ 499 $ 500      
Allowance for uncollectible accounts - loans 4 1      
Recorded cost for emission allowances granted by the Environmental Protection Agency 0        
Reimbursements from DOE 137        
Restricted Cash and Investments, Noncurrent 19 21      
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents 518 521 $ 322 $ 322  
Accounts receivable from DOE 11        
Appropriation-investment power program $ 258 258     $ 1,000
Population of Service Area [Line Items]          
Population of service area | People 10,000,000        
Cash and Cash Equivalents, at Carrying Value $ 499 500      
Restricted Cash and Investments, Noncurrent $ 19 $ 21      
v3.21.2
Summary of Significant Accounting Policies - Reclassificatons (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Reclassifications  
Finance Lease, Liability $ 747
v3.21.2
Summary of Significant Accounting Policies - Allowance for Uncollectible Accounts (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Portion at Other than Fair Value Measurement [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing Receivable, after Allowance for Credit Loss $ 99 $ 105
Financing Receivable, after Allowance for Credit Loss 94 93
Allowance for uncollectible accounts - receivables 1 1
Allowance for uncollectible accounts - loans $ 4 $ 1
v3.21.2
Summary of Significant Accounting Policies - Property, Plant, and Equipment, and Depreciation (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Property, Plant, and Equipment, and Depreciation      
Depreciation $ 1,400 $ 1,600 $ 1,800
Composite depreciation rate for completed plant 2.28% 2.74% 3.09%
Reacquired Rights $ 184 $ 192  
Amortization of Reacquired Rights $ 8 8 $ 8
Capitalized software amortization period 7 years    
Unamortized computer software costs $ 27 54  
Amortization expense of capitalized computer software costs 38 42 38
Accelerated depreciation 136 $ 387 $ 566
Increase (decrease) in Year 1 due to new depreciation study $ 369    
Nuclear      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 2.38% 2.38% 2.38%
Coal-fired      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 1.95% 3.62% 4.96%
Hydroelectric      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 1.60% 1.60% 1.61%
Gas and oil-fired      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 2.98% 3.04% 3.00%
Transmission      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 1.34% 1.34% 1.34%
Other      
Property, Plant, and Equipment, and Depreciation      
Composite depreciation rate for completed plant 7.12% 7.26% 7.16%
v3.21.2
Summary of Significant Accounting Policies - Energy Prepayment Obligations and Discounts on Sales (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Energy Prepayment Obligations and Discounts on Sales      
Accounts Receivable, Allowance for Credit Loss, Current $ 1 $ 1  
Recognition of Deferred Revenue $ 0 $ 0 $ 10
v3.21.2
Summary of Significant Accounting Policies - Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Leases    
Finance lease under PPA $ 464  
Operating lease under PPA 143  
Operating cash flows for operating leases $ 53 $ 85
v3.21.2
Impact of New Accounting Standards and Interpretations (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Lessee, Lease, Description [Line Items]    
Operating Lease, Right-of-Use Asset $ 165 $ 232
v3.21.2
Accounts Receivable, Net Accounts Receivable, Net (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Power receivables $ 1,480 $ 1,401
Other receivables 86 128
Allowance for uncollectible accounts (1) [1] (1)
Accounts receivable, net 1,566 1,529
Available Credit on Public Power Support and Stabilization Program   $ 1,000
Subsequent Credit on Public Power Support and Stabilization Program $ 1  
[1] Allowance for uncollectible accounts was less than $1 million at September 30, 2021 and 2020, and therefore is not represented in the table above. The allowance at September 30, 2021 includes the impact from adopting CECL on October 1, 2020.
v3.21.2
Inventories, Net Inventories, Net (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Inventories, Net    
Materials and supplies inventory $ 775 $ 770
Fuel inventory 198 253
Renewable energy certificates inventory, net 12 15
Allowance for inventory obsolescence (35) (35)
Inventories, net $ 950 $ 1,003
v3.21.2
Net Completed Plant Net Completed Plant (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Completed Plant    
Completed plant cost $ 66,411 $ 64,970
Accumulated depreciation 34,663 33,550
Net completed plant 31,748 31,420
Revisions to asset retirement costs   1,100
Coal-fired    
Completed Plant    
Completed plant cost 19,319 18,613
Accumulated depreciation 14,357 13,944
Net completed plant 4,962 4,669
Gas and oil-fired    
Completed Plant    
Completed plant cost 6,076 6,010
Accumulated depreciation 1,824 1,696
Net completed plant 4,252 4,314
Nuclear    
Completed Plant    
Completed plant cost 26,024 25,741
Accumulated depreciation 12,632 12,141
Net completed plant 13,392 13,600
Transmission    
Completed Plant    
Completed plant cost 8,597 8,283
Accumulated depreciation 3,215 3,140
Net completed plant 5,382 5,143
Hydroelectric    
Completed Plant    
Completed plant cost 3,525 3,410
Accumulated depreciation 1,135 1,090
Net completed plant 2,390 2,320
Other electrical plant    
Completed Plant    
Completed plant cost 1,940 1,981
Accumulated depreciation 1,101 1,146
Net completed plant 839 835
Computer Software, Intangible Asset [Member]    
Completed Plant    
Completed plant cost 3 3
Accumulated depreciation 2 2
Net completed plant 1 1
Multipurpose dams    
Completed Plant    
Completed plant cost 900 900
Accumulated depreciation 388 381
Net completed plant 512 519
Other stewardship    
Completed Plant    
Completed plant cost 27 29
Accumulated depreciation 9 10
Net completed plant $ 18 $ 19
v3.21.2
Other Long-Term Assets (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Other Long-Term Assets    
EnergyRight receivables $ 71 $ 86
Prepaid Expense, Noncurrent 44 42
Restricted Cash and Investments, Noncurrent 19 21
Total other long-term assets 320 325
Impact on secured borrowings 1  
Prepaid Expense, Current 12 3
Loans and Leases Receivable, Allowance 4  
Financing Receivable, after Allowance for Credit Loss, Current 3 5
Other Assets, Miscellaneous, Current 77 58
EnergyRight loan reserve    
Other Long-Term Assets    
Loans and Leases Receivable, Allowance 1  
Economic development loan collective reserve    
Other Long-Term Assets    
Loans and Leases Receivable, Allowance 1  
Economic development loan specific loan reserve    
Other Long-Term Assets    
Loans and Leases Receivable, Allowance 2  
Accounts Receivable [Member]    
Other Long-Term Assets    
EnergyRight receivables 15 18
Other long-term assets    
Other Long-Term Assets    
EnergyRight receivables 57 69
Loans and other long-term receivables, net 96 100
Commodity contract derivative assets 40 23
Prepaid capacity payments   11
Other $ 83 $ 91
Energy Right    
Other Long-Term Assets    
Number of days in default 180 days  
Minimum | Energy Right    
Other Long-Term Assets    
EnergyRight loan terms 5 years  
Maximum | Energy Right    
Other Long-Term Assets    
EnergyRight loan terms 10 years  
v3.21.2
Regulatory Assets and Liabilities Regulatory Assets and Liabilities (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Regulatory Assets and Liabilities      
Non-current regulatory liabilities $ 40 $ 23  
Current regulatory assets 196 130  
Regulatory assets 7,956 10,245  
Regulatory Assets 8,152 10,375  
Current regulatory liabilities 340 141  
Regulatory asset amount expensed 72 21 $ 261
Regulatory Liabilities 380 164  
Deferred Project Costs [Member]      
Regulatory Assets and Liabilities      
Gallatin coal combustion residual facilities estimated cost to cap and close 114 114  
Regulatory Asset      
Regulatory Assets and Liabilities      
Regulatory assets 150 138  
Removal Costs [Member]      
Regulatory Assets and Liabilities      
Regulatory assets 1,122 1,506  
Unrealized losses on interest rate derivatives      
Regulatory Assets and Liabilities      
Current regulatory assets 3 4  
Non-nuclear decommissioning costs      
Regulatory Assets and Liabilities      
Regulatory assets 2,653 2,512  
Pension Costs [Member]      
Regulatory Assets and Liabilities      
Regulatory assets 3,668 5,193  
Deferred Fuel Costs [Member]      
Regulatory Assets and Liabilities      
Current regulatory assets 79 12  
Nuclear decommissioning costs      
Regulatory Assets and Liabilities      
Regulatory assets 363 896  
Unrealized gains/losses on commodity derivatives      
Regulatory Assets and Liabilities      
Non-current regulatory liabilities 40 23  
Current regulatory liabilities 210 26  
Fuel cost adjustment tax equivalents      
Regulatory Assets and Liabilities      
Current regulatory liabilities $ 130 $ 115  
v3.21.2
Asset Acquisitions and Business Combinations (Details)
$ in Millions
Sep. 20, 2017
USD ($)
Business Combinations and Settlement of Preexisting Relationships [Abstract]  
Fair value of liabilities assumed $ 74
v3.21.2
Variable Interest Entities (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2013
Sep. 30, 2012
Liabilities          
Current maturities of long-term debt of variable interest entities issued at par $ 43 $ 41      
Liabilities, Current 4,979 4,711      
Other long-term liabilities 2,041 2,548      
Long-term debt of variable interest entities, net 1,006 1,048      
VIE Financing          
Face Amount $ 40     $ 360  
Rate of Return SHLLC 7.00%        
Accrued interest $ 10 10      
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months 3        
Minimum payments on membership interests subject to mandatory redemption, due in year two 2        
Minimum payments on membership interests subject to mandatory redemption, due in year three 1        
Minimum payments on membership interests subject to mandatory redemption, due in year four 1        
Minimum payments on membership interests subject to mandatory redemption, due in year five 1        
Minimum payments on membership interests subject to mandatory redemption, due thereafter 15        
Other Long-term Debt, Maturity, Year One 43        
Other Long-term Debt, Maturity, Year Two 40        
Other Long-term Debt, Maturity, Year Three 36        
Other Long-term Debt, Maturity, Year Four 37        
Other Long-term Debt, Maturity, Year Five 39        
Other Long-term Debt, Maturity, Year Six 861        
SCCG          
VIE Financing          
Debt and Lease Obligation       $ 400  
Holdco          
VIE Financing          
Face Amount         $ 100
JSCCG          
VIE Financing          
Face Amount         900
Variable Interest Entity, Primary Beneficiary [Member]          
Liabilities          
Liabilities, Current 56 54      
Other long-term liabilities 20 23      
VIE Financing          
Accounts Payable and Accrued Liabilities 3 3      
Liabilities 1,082 1,125     $ 1,000
Interest Expense $ 52 $ 54 $ 56    
v3.21.2
Other Long-Term Liabilities Other Long-Term Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Other Long-Term Liabilities    
Interest rate swaps $ 1,639 $ 2,041
Derivative Liability (402)  
Currency swap liabilities 83 209 [1]
EnergyRight financing obligation (92) (108)
Deferred Revenue, Noncurrent 42 38
Non-current regulatory liabilities 40 23
Total other long-term liabilities 2,041 $ 2,548
Deferral of EnergyRight laons 1  
Finance Lease, Liability $ 747  
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] Other Liabilities Other Liabilities
Deferred Compensation Liability, Current $ (51) $ (47)
Current portion of energy prepayment obligations 10 11
Other long-term liabilities    
Other Long-Term Liabilities    
Interest rate swaps 1,524 1,927
Currency swap liabilities 76 123
EnergyRight financing obligation (66) (78)
Environmental agreements liability 42 38
Membership interests of VIE subject to mandatory redemption 29 56
Other 140 117
Accounts payable and accrued liabilities    
Other Long-Term Liabilities    
Interest rate swaps 115 114
Service agreements (28) (15)
EnergyRight financing obligation (16) (19)
Other Current Liabilities    
Other Long-Term Liabilities    
Currency swap liabilities $ 7 $ 86
[1] See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
v3.21.2
Asset Retirement Obligations Asset Retirement Obligations (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Liabilities Settled [Line Items]      
Increase in ARO liability $ 217    
Change in estimate [1] 203 $ 1,077  
Allen West ARO increase   273  
Gallatin CCR ARO increase (decrease)   173  
Additional obligations [1] 43    
Balance [1] 7,002 6,785 $ 5,616
Asset Retirement Obligation, Liabilities Settled [1] 242 114  
Accretion (recorded as regulatory asset) [1] 213 206  
Asset Retirement Obligation, Current 266 345  
Amortization and Depreciation of Decontaminating and Decommissioning Assets 72 169 144
Total ARO change due to CCR 122 129  
Change in ARO from operating CCR facilities 30 38  
Change in ARO from inactive CCR facilities 13 91  
Increase in CCR post-closure care   460  
Change in plant decommissioning obligations   19  
ARO change due to groundwater monitoring 69    
Nuclear      
Liabilities Settled [Line Items]      
Change in estimate 12 0  
Additional obligations 0    
Balance 3,428 3,278 3,136
Asset Retirement Obligation, Liabilities Settled 11 1  
Accretion (recorded as regulatory asset) 149 143  
Non-nuclear      
Liabilities Settled [Line Items]      
Change in estimate 191 1,077  
Additional obligations 43    
Balance 3,574 3,507 $ 2,480
Asset Retirement Obligation, Liabilities Settled 231 113  
Accretion (recorded as regulatory asset) $ 64 $ 63  
[1]
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Debt and Other Obligations Debt and Other Obligations - General (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2013
Jan. 17, 2012
Debt Instrument      
Interest rate     7.10%
Debt ceiling $ 30,000    
Face Amount $ 40 $ 360  
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Secured Debt of VIEs (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2013
Aug. 09, 2013
Sep. 30, 2012
Jan. 17, 2012
Variable Interest Entities            
Face Amount $ 40   $ 360      
Interest rate           7.10%
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 30 $ 35        
Long-term debt of variable interest entities (including current maturities) 1,307 $ 1,419        
SCCG            
Variable Interest Entities            
Interest rate       3.846%    
JSCCG            
Variable Interest Entities            
Face Amount         $ 900  
Debt Instrument, Interest Rate           4.626%
Holdco            
Variable Interest Entities            
Face Amount         $ 100  
Holdco balloon payment upon maturity $ 10          
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Secured Notes of SPEs (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 20, 2017
Sep. 30, 2013
Jan. 17, 2012
Nov. 14, 2001
Secured notes          
Secured notes $ 40   $ 360    
Interest rate       7.10%  
Fair value of liabilities assumed   $ 74      
Special purpose entity          
Secured notes          
Secured notes         $ 272
Interest rate         5.572%
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Short-Term Debt (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Short-Term Debt, Gross [Line Items]      
Short-term debt, net of discounts $ 780 $ 57  
Short-term Borrowings Gross $ 780 $ 57 $ 922
Weighted average interest rate - discount notes 0.03% 0.06% 2.15%
Foreign Currency Transaction Gain (Loss), Unrealized $ 58    
Foreign Currency Transaction Gain, before Tax   $ 73  
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Put and Call Options (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
PARRS 1998 Series D Bond  
Debt Instrument  
Amount of redeemable bond issues outstanding $ 256
PARRS interest rate prior to rate reset 6.75%
PARRS interest rate after rate reset 2.134%
Amount of bonds redeemed $ 318
PARRS 1999 Series A Bond  
Debt Instrument  
Amount of redeemable bond issues outstanding $ 208
PARRS interest rate prior to rate reset 6.50%
PARRS interest rate after rate reset 2.216%
Amount of bonds redeemed $ 316
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Debt Securities Activity (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2013
Jan. 17, 2012
Debt Instrument          
Issues of power bonds $ 500 $ 997 $ 0    
Face Amount 40     $ 360  
Discount on debt issues 0 (3)      
Redemptions/Maturities of variable interest entities 41 39 38    
Redemptions/Maturities of power bonds $ 1,860 $ 1,427 $ 1,035    
Percent of par value 9998.20% 9970.60%      
Total Current maturities of power bonds issued at par $ 1,028 $ 1,787      
Interest rate         7.10%
Short-term debt, net of discounts 780 57      
Current maturities of long-term debt of variable interest entities issued at par 43 41      
Current maturities of notes payable 0 0      
880591EL2          
Debt Instrument          
Total Current maturities of power bonds issued at par $ 0 1,500      
Interest rate 3.875%        
Debt Instrument, Maturity Date Feb. 15, 2021        
880591DC3          
Debt Instrument          
Total Current maturities of power bonds issued at par $ 0 258      
Interest rate 5.805%        
Debt Instrument, Maturity Date Jun. 07, 2021        
880591EF5 (12.15.20)          
Debt Instrument          
Total Current maturities of power bonds issued at par $ 1 1      
Interest rate 3.77%        
Debt Instrument, Maturity Date Dec. 15, 2021        
880591EF5 (6.15.21)          
Debt Instrument          
Total Current maturities of power bonds issued at par $ 27 28      
Interest rate 3.77%        
Debt Instrument, Maturity Date Jun. 15, 2022        
880591EN8          
Debt Instrument          
Total Current maturities of power bonds issued at par $ 1,000 0      
Interest rate 1.875%        
Debt Instrument, Maturity Date Aug. 15, 2022        
PARRS 1998 Series D Bond          
Debt Instrument          
Redemptions/Maturities of power bonds $ 0 17      
PARRS 1999 Series A Bond          
Debt Instrument          
Redemptions/Maturities of power bonds $ 0 $ 23      
Total          
Debt Instrument          
Debt Instrument, Redemption Period, End Date 1,901 1,489      
Percent of par value 10000.00%        
Debt of variable interest entities          
Debt Instrument          
Redemptions/Maturities of variable interest entities $ 41 $ 39      
Notes Payable          
Debt Instrument          
Redemptions/Maturities of notes payable 0 23      
electronotes          
Debt Instrument          
Redemptions/Maturities of power bonds 0 219      
2009 Series B          
Debt Instrument          
Redemptions/Maturities of power bonds 29 28      
1995 Series B          
Debt Instrument          
Redemptions/Maturities of power bonds 0 140      
2011 Series A          
Debt Instrument          
Redemptions/Maturities of power bonds 1,500 0      
2018 Series A          
Debt Instrument          
Redemptions/Maturities of power bonds 0 1,000      
1998 Series H          
Debt Instrument          
Redemptions/Maturities of power bonds 331 0      
Total          
Debt Instrument          
Debt Securities Issues 500 997      
2020 Series A          
Debt Instrument          
Debt Securities Issues 0 1,000      
2021 Series A          
Debt Instrument          
Debt Securities Issues $ 500 $ 0      
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Debt Outstanding (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Jan. 17, 2012
Short-term debt      
Coupon rate     7.10%
Short-term debt, net of discounts $ 780 $ 57  
Current maturities of long-term debt of variable interest entities issued at par 43 41  
Current maturities of notes payable 0 0  
Total Current maturities of power bonds issued at par 1,028 1,787  
Current maturities of power bonds 1,028 1,787  
Total current debt outstanding, net 1,851 1,885  
Long-term debt      
Long-term power bonds, net 17,457 17,956  
Long-term power bonds [1] 17,572 18,078  
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net (115) (122)  
Long-term debt of variable interest entities, net 1,006 1,048  
Total long-term debt, net 18,463 19,004  
Foreign Currency Transaction Gain (Loss), before Tax $ 58 80  
880591DX7      
Short-term debt      
Coupon rate [2] 4.65%    
Debt Instrument, Maturity Date Jun. 15, 2035    
Long-term debt      
Long-term power bonds, net $ 436 436  
880591EF5      
Short-term debt      
Coupon rate 3.77%    
Debt Instrument, Maturity Date Jun. 15, 2034    
880591EN8      
Short-term debt      
Coupon rate 1.875%    
Debt Instrument, Maturity Date Aug. 15, 2022    
Long-term debt      
Long-term power bonds, net $ 0 1,000  
880591ER9      
Short-term debt      
Coupon rate 2.875%    
Debt Instrument, Maturity Date Sep. 15, 2024    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591CJ9      
Short-term debt      
Coupon rate 6.75%    
Debt Instrument, Maturity Date Nov. 01, 2025    
Long-term debt      
Long-term power bonds, net $ 1,350 1,350  
880591EU2 [Member]      
Short-term debt      
Coupon rate 2.875%    
Debt Instrument, Maturity Date Feb. 01, 2027    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591300      
Short-term debt      
Coupon rate 2.134%    
Debt Instrument, Maturity Date Jun. 01, 2028    
Long-term debt      
Long-term power bonds, net $ 256 256  
880591409      
Short-term debt      
Coupon rate 2.216%    
Debt Instrument, Maturity Date May 01, 2029    
Long-term debt      
Long-term power bonds, net $ 208 208  
880591DM1      
Short-term debt      
Coupon rate 7.125%    
Debt Instrument, Maturity Date May 01, 2030    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591DV1      
Short-term debt      
Coupon rate 4.70%    
Debt Instrument, Maturity Date Jul. 15, 2033    
Long-term debt      
Long-term power bonds, net $ 472 472  
880591DP4      
Short-term debt      
Coupon rate 6.587%    
Debt Instrument, Maturity Date Jun. 07, 2032    
Long-term debt      
Long-term power bonds, net $ 337 323  
880591CK6      
Short-term debt      
Coupon rate 5.98%    
Debt Instrument, Maturity Date Apr. 01, 2036    
Long-term debt      
Long-term power bonds, net $ 121 121  
880591CS9      
Short-term debt      
Coupon rate 5.88%    
Debt Instrument, Maturity Date Apr. 01, 2036    
Long-term debt      
Long-term power bonds, net $ 1,500 1,500  
880591CP5      
Short-term debt      
Coupon rate 6.15%    
Debt Instrument, Maturity Date Jan. 15, 2038    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591ED0      
Short-term debt      
Coupon rate 5.50%    
Debt Instrument, Maturity Date Jun. 15, 2038    
Long-term debt      
Long-term power bonds, net $ 500 500  
880591EH1      
Short-term debt      
Coupon rate 5.25%    
Debt Instrument, Maturity Date Sep. 15, 2039    
Long-term debt      
Long-term power bonds, net $ 2,000 2,000  
880591EP3      
Short-term debt      
Coupon rate 3.50%    
Debt Instrument, Maturity Date Dec. 15, 2042    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591DU3      
Short-term debt      
Coupon rate 4.962%    
Debt Instrument, Maturity Date Jun. 07, 2043    
Long-term debt      
Long-term power bonds, net $ 202 194  
880591EB4      
Short-term debt      
Coupon rate 4.875%    
Debt Instrument, Maturity Date Jan. 15, 2048    
Long-term debt      
Long-term power bonds, net $ 500 500  
880591DZ2      
Short-term debt      
Coupon rate [2] 5.375%    
Debt Instrument, Maturity Date Apr. 01, 2056    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591EJ7      
Short-term debt      
Coupon rate 4.625%    
Debt Instrument, Maturity Date Sep. 15, 2060    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591ES7      
Short-term debt      
Coupon rate 4.25%    
Debt Instrument, Maturity Date Sep. 15, 2065    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591EW8 [Member]      
Short-term debt      
Coupon rate 0.75%    
Debt Instrument, Maturity Date May 15, 2025    
Long-term debt      
Long-term power bonds, net $ 1,000 1,000  
880591EX6      
Short-term debt      
Coupon rate 1.50%    
Debt Instrument, Maturity Date Sep. 15, 2031    
Long-term debt      
Long-term power bonds, net $ 500 0  
880591EF5 (6.15.21)      
Long-term debt      
Long-term power bonds, net $ 190 $ 218  
[1] Includes net exchange gain from currency transactions of $58 million and $80 million at September 30, 2021 and 2020
[2] The coupon rate represents TVA's effective interest rate.
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Maturities Due (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2026
Sep. 30, 2025
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2022
Debt Instrument              
2018 $ 1,028            
2019 29            
2020 1,022            
2021 1,022            
2022 1,370            
Thereafter 14,187            
Total 18,658            
Short-term debt, net of discounts 780 $ 57          
Short-term debt, net of discounts total 780            
Foreign Currency Transaction Gain (Loss), before Tax 58 $ 80          
Net discount on sale of Bonds 72            
Foreign Currency Transaction Gain (Loss), Unrealized 58            
Scenario, Forecast              
Debt Instrument              
Short-term debt, net of discounts     $ 0 $ 0 $ 0 $ 0 $ 0
Power bonds              
Debt Instrument              
Debt issuance costs 43            
Other long-term debt              
Debt Instrument              
Debt issuance costs $ 7            
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Credit Facility Agreements (Details)
Sep. 30, 2021
USD ($)
Credit_facilities
Sep. 30, 2020
USD ($)
Credit Facility Agreements    
Borrowings under U.S. Treasury credit facility $ 0  
Revolving Credit Facilities    
Credit Facility Agreements    
Current borrowing capacity 2,650,000,000  
Credit facility agreements borrowings outstanding $ 0  
Number of revolving credit facilities | Credit_facilities 4  
Revolving Credit Facility 4 $ 150,000,000  
Revolving credit facility 3 1,000,000,000  
Revolving credit facility 1 500,000,000  
Revolving Credit Facility 2 1,000,000,000  
Long-term Line of Credit, Borrowings 4 0  
Long-term Line of Credit, Borrowings 1 0  
Long-term Line of Credit, Borrowings 2 0  
Line of Credit Facility, Remaining Borrowing Capacity 4 699,000,000  
Line of Credit Facility, Remaining Borrowing Capacity 2 672,000,000  
Line of Credit Facility, Remaining Borrowing Capacity 3 112,000,000  
Line of Credit Facility, Remaining Borrowing Capacity 1 0  
Line of Credit Facility, Remaining Borrowing Capacity 1,483,000,000  
Letter of Credit    
Credit Facility Agreements    
Amount of letters of credit outstanding 1,167,000,000 $ 1,500,000,000
Letters of Credit Outstanding, Amount 4 38,000,000  
Letters of Credit Outstanding, Amount 3 328,000,000  
Letters of Credit Outstanding, Amount 1 500,000,000  
Letter of Credit Outstanding, Amount 2 $ 301,000,000  
v3.21.2
Debt and Other Obligations Debt and Other Obligations - Lease/Leasebacks (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Lease/Leasebacks [Abstract]    
CT and QTE outstanding leaseback obligation $ 25 $ 223
v3.21.2
Accumulated Other Comprehensive Income (Loss) (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2019
USD ($)
Equity [Abstract]  
Reclassification on cash flow hedges from AOCI to interest expense $ 45
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Derivative Instruments That Receive Hedge Accounting Treatment (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Summary of Derivative Instruments That Receive Hedge Accounting Treatment      
Interest rate swaps $ 1,639,000,000 $ 2,041,000,000  
Ineffective portion excluded from testing 0    
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred 25,000,000    
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, after Tax 97,000,000 38,000,000 $ 45,000,000
Accounts payable and accrued liabilities      
Summary of Derivative Instruments That Receive Hedge Accounting Treatment      
Interest rate swaps $ 115,000,000 $ 114,000,000  
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Derivative Instruments That Do Not Receive Hedge Accounting Treatment (Details)
 12 Months Ended
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Derivative    
Unrealized gains/losses on derivatives $ 0  
Change in Unrealized gains (losses) on Interest Rate Derivatives (402,000,000) $ (272,000,000)
Interest rate swaps 1,639,000,000 2,041,000,000
Interest Rate Swap    
Derivative    
Amount of gain (loss) recognized in income on derivatives (115,000,000) (97,000,000)
Fair value (455,000,000) (588,000,000)
Commodity Contract Derivatives    
Derivative    
Amount of gain (loss) recognized in income on derivatives 0 (1,000,000)
Fair value $ 247,000,000 $ 46,000,000
Natural Gas Contract Derivatives    
Derivative    
Number of contracts 40 42
Notional amount 263,000,000 302,000,000
Fair value $ 247,000,000 $ 46,000,000
Accounts payable and accrued liabilities    
Derivative    
Interest rate swaps 115,000,000 114,000,000
Accounts payable and accrued liabilities | Interest Rate Swap    
Derivative    
Fair value (22,000,000) (22,000,000)
Accounts payable and accrued liabilities | Commodity Contract Derivatives    
Derivative    
Fair value $ (3,000,000) $ (3,000,000)
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Mark-to-Market Values of TVA Derivatives (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Derivatives, Fair Value    
Derivative Liability, Fair Value, Gross Liability $ 1,722  
200 million Sterling currency swap    
Derivatives, Fair Value    
Fair value 0 $ (78)
200 million Sterling currency swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value 0 (78)
250 million Sterling currency swap    
Derivatives, Fair Value    
Fair value (36) (63)
250 million Sterling currency swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (32) (58)
250 million Sterling currency swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (4) (5)
150 million Sterling currency swap    
Derivatives, Fair Value    
Fair value (47) (68)
150 million Sterling currency swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (44) (65)
150 million Sterling currency swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (3) (3)
$1.0 billion notional interest rate swap    
Derivatives, Fair Value    
Fair value (1,182) (1,449)
$1.0 billion notional interest rate swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (1,101) (1,369)
$1.0 billion notional interest rate swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (44) (43)
$1.0 billion notional interest rate swap | Interest payable, current    
Derivatives, Fair Value    
Fair value (37) (37)
$476 million notional interest rate swap    
Derivatives, Fair Value    
Fair value (455) (588)
$476 million notional interest rate swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value (423) (556)
$476 million notional interest rate swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (22) (22)
$476 million notional interest rate swap | Interest payable, current    
Derivatives, Fair Value    
Fair value (10) (10)
$42 million notional interest rate swap    
Derivatives, Fair Value    
Fair value (2) (4)
$42 million notional interest rate swap | Other long-term liabilities    
Derivatives, Fair Value    
Fair value   (2)
$42 million notional interest rate swap | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (1) (2)
$42 million notional interest rate swap | Interest payable, current    
Derivatives, Fair Value    
Fair value (1)  
Commodity contract derivatives    
Derivatives, Fair Value    
Fair value 247 46
Commodity contract derivatives | Other long-term assets    
Derivatives, Fair Value    
Fair value 40 23
Commodity contract derivatives | Other current assets    
Derivatives, Fair Value    
Fair value 210 26
Commodity contract derivatives | Accounts payable and accrued liabilities    
Derivatives, Fair Value    
Fair value (3) $ (3)
$28 million notional    
Derivatives, Fair Value    
Derivative, Notional Amount 28  
$14 million notional    
Derivatives, Fair Value    
Derivative, Notional Amount $ 14  
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Currency Swaps Outstanding (Details)
£ in Millions
 12 Months Ended
Sep. 30, 2021
GBP (£)
2001 Currency Swap Contract  
Derivative  
Effective Date of Currency Swap Contract 2001
Associated TVA bond issues currency exposure £ 250
Expiration Date of Swap 2032
Overall effective cost to TVA 6.59%
2003 Currency Swap Contract  
Derivative  
Effective Date of Currency Swap Contract 2003
Associated TVA bond issues currency exposure £ 150
Expiration Date of Swap 2043
Overall effective cost to TVA 4.96%
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Counterparty Credit Risk (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
megawatts
Customers
Sep. 30, 2020
USD ($)
Derivative    
Receivables from power sales | $ $ 1,480 $ 1,401
Credit of Customers    
Derivative    
Number of customers that represent the percent of sales | Customers 2  
Long-term Contract for Purchase of Electric Power [Domain]    
Derivative    
Megawatts | megawatts 440  
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Assets (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Letter of Credit    
Offsetting Assets [Line Items]    
Amount of letters of credit outstanding $ 1,167 $ 1,500
Other Contract    
Offsetting Assets [Line Items]    
Net Amounts of Assets Presented in the Balance Sheet $ 250 $ 49
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Offsetting of Derivative Liabilities (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Offsetting Liabilities [Line Items]    
Gross Amounts of Recognized Liabilities, subject to master netting or similar arrangements $ 1,722  
Derivative Liability   $ 2,253
Total derivatives not subject to master netting or similar arrangement 3 3
Total 1,725  
Currency Swap    
Offsetting Liabilities [Line Items]    
Derivative Liability 83 209 [1]
Interest Rate Contract    
Offsetting Liabilities [Line Items]    
Derivative Liability 1,639 2,041 [1]
Total derivatives subject to master netting or similar arrangement    
Offsetting Liabilities [Line Items]    
Derivative Liability   2,250
Letter of Credit    
Offsetting Liabilities [Line Items]    
Amount of letters of credit outstanding $ 1,167 $ 1,500
[1] Letters of credit of approximately $1.2 billion and $1.5 billion were posted as collateral at September 30, 2021 and 2020, respectively, to partially secure the liability positions of one of the currency swaps and one of the interest rate swaps in accordance with the collateral requirements for these derivatives.
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Other Derivative Instruments (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 2 $ 13
Fair Value, Inputs, Level 2    
Derivative    
Forward Contract Derivative Asset, at Fair Value $ 2 $ 13
v3.21.2
Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions - Collateral (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Derivative    
Likely collateral obligation increase if downgraded $ 22  
Collateralized Securities [Member]    
Derivative    
Aggregate fair value of derivative instruments with credit-risk related contingent features that were in a liability position 1,700  
Collateral obligations 1,100  
Letter of Credit    
Derivative    
Amount of letters of credit outstanding $ 1,167 $ 1,500
v3.21.2
Risk Management Activities and Derivative Transactions Counterparty Credit Risk (Details)
 12 Months Ended
Sep. 30, 2021
Derivative  
Two Largest Customer Percentage of Total Operating Revenue 17.00%
Moody's, A1 Rating  
Derivative  
Banking Counterparties Credit Rating A2
Natural Gas Banking Counterparties Credit Rating Aa2
Moody's, B1 Rating  
Derivative  
Natural Gas Banking Counterparties Credit Rating B1
v3.21.2
Fair Value Measurements - Investments (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Units
Sep. 30, 2020
USD ($)
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Long-term Investments $ 4,053 $ 3,198
Balance in the NDT 2,800  
Balance in the ART $ 1,100  
Period of time where the investor contributes capital to an investment in a private partnership - minimum | Units 3  
Period of time where the investor contributes capital to an investment in a private partnership - maximum | Units 4  
Minimum investment period 10 years  
Fair value of gross plan assets $ 9,749 8,368
Number of readily available quoted exchange prices for the investments 0  
LTDCP    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Unrealized gains (losses) on investments $ 1 2
SERP    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Unrealized gains (losses) on investments 7 3
ART    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Unrealized gains (losses) on investments 145 32
NDT    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Unrealized gains (losses) on investments 279 $ 37
Equity Funds [Member]    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Commitments, Fair Value Disclosure 221  
Real Estate Funds [Member]    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Commitments, Fair Value Disclosure 96  
Credit [Member]    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Commitments, Fair Value Disclosure 44  
Defensive growth assets    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Commitments, Fair Value Disclosure 123  
Private real estate funds    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Fair value of gross plan assets 65  
Private Credit [Member]    
Fair Value, Measured on Recurring Basis, Gain (Loss) Included in Earnings [Line Items]    
Commitments, Fair Value Disclosure $ 21  
v3.21.2
Fair Value Measurements - Nonperformance Risk (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Nonperformance Risk  
Derivative credit valuation adjustment, assets $ 1
Derivative credit valuation adjustment, liabilities $ 1
v3.21.2
Fair Value Measurements - Fair Value Measurements (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Investments    
Government debt securities $ 597 $ 525
Corporate debt securities 411 356
Mortgage and asset-backed securities 63 27
Institutional mutual funds 225 188
Forward debt securities contracts - asset 2 13
Private equity funds measured at net asset value 357 194
Private real estate measured at net asset value 272 168
Private credit measured at net asset value 71 53
Commingled funds measured at net asset value 1,421 1,174
Total investments 4,053 3,198
Commodity contract derivatives 250 49
Total 4,303 3,247
Liabilities    
Currency swaps 83 209 [1]
Interest rate swaps 1,639 2,041
Commodity contract derivatives 3 3
Total 1,725 2,253
Equity Securities, FV-NI, Noncurrent 634 500
Fair Value, Inputs, Level 1    
Investments    
Government debt securities 573 485
Corporate debt securities 0 0
Mortgage and asset-backed securities 0 0
Institutional mutual funds 225 188
Forward debt securities contracts - asset 0 0
Private equity funds measured at net asset value 0 0
Private real estate measured at net asset value 0 0
Private credit measured at net asset value 0 0
Commingled funds measured at net asset value 0 0
Total investments 1,432 1,173
Commodity contract derivatives 0 0
Total 1,432 1,173
Liabilities    
Currency swaps 0 0
Interest rate swaps 0 0
Commodity contract derivatives 0 0
Total 0 0
Equity Securities, FV-NI, Noncurrent 634 500
Fair Value, Inputs, Level 2    
Investments    
Government debt securities 24 40
Corporate debt securities 411 356
Mortgage and asset-backed securities 63 27
Institutional mutual funds 0 0
Forward debt securities contracts - asset 2 13
Private equity funds measured at net asset value 0 0
Private real estate measured at net asset value 0 0
Private credit measured at net asset value 0 0
Commingled funds measured at net asset value 0 0
Total investments 500 436
Commodity contract derivatives 250 49
Total 750 485
Liabilities    
Currency swaps 83 209
Interest rate swaps 1,639 2,041
Commodity contract derivatives 3 3
Total 1,725 2,253
Equity Securities, FV-NI, Noncurrent 0 0
Fair Value, Inputs, Level 3    
Investments    
Government debt securities 0 0
Corporate debt securities 0 0
Mortgage and asset-backed securities 0 0
Institutional mutual funds 0 0
Forward debt securities contracts - asset 0 0
Private equity funds measured at net asset value 0 0
Private real estate measured at net asset value 0 0
Private credit measured at net asset value 0 0
Commingled funds measured at net asset value 0 0
Total investments 0 0
Commodity contract derivatives 0 0
Total 0 0
Liabilities    
Currency swaps 0 0
Interest rate swaps 0 0
Commodity contract derivatives 0 0
Total 0 0
Equity Securities, FV-NI, Noncurrent $ 0 $ 0
[1] See Note 16 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
v3.21.2
Fair Value Measurements - Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2021
Sep. 30, 2019
Fair Value Measurements      
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements $ (1)    
Commodity contract derivatives, assets 49 $ 250  
Commodity contract derivatives, liabilities 3 3  
Commodity Contract Derivatives      
Fair Value Measurements      
Balance at beginning/end of period 0 0 $ (4)
Change in net unrealized gains (losses) deferred as regulatory assets and liabilities 5    
Fair Value, Inputs, Level 3      
Fair Value Measurements      
Commodity contract derivatives, assets 0 0  
Commodity contract derivatives, liabilities $ 0 $ 0  
v3.21.2
Fair Value Measurements - Estimated Values of Financial Instruments (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Estimated Values of Financial Instruments (Level 2 Valuation)    
EnergyRight receivables (including current portion) $ 71 $ 86
Financing Receivable, after Allowance for Credit Loss 94 93
EnergyRight® financing obligations (including current portion) 92 108
Unfunded Loan Commitments 3 2
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 30 35
Long-term outstanding power bonds (including current maturities), net 24,309 26,630
Long-term debt of variable interest entities (including current maturities) 1,307 1,419
Portion at Other than Fair Value Measurement [Member]    
Estimated Values of Financial Instruments (Level 2 Valuation)    
EnergyRight receivables (including current portion) 72 87
Financing Receivable, after Allowance for Credit Loss 99 105
EnergyRight® financing obligations (including current portion) 82 97
Unfunded Loan Commitments 0 0
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 23 26
Long-term outstanding power bonds (including current maturities), net 18,485 19,743
Long-term debt of variable interest entities (including current maturities) $ 1,049 $ 1,089
v3.21.2
Proprietary Capital (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Appropriation Investment      
Amount of appropriation investment that was repaid $ 1,000    
Remaining appropriation investment 258    
Balance at beginning of year 12,932 $ 11,625 $ 10,283
Net income (loss) 1,512 1,352 1,417
Return on power program appropriation investment (4) (6) (6)
Balance at end of year 14,465 12,932 $ 11,625
Net proprietary capital at September 30 $ 14,465 $ 12,932  
Computed average interest rate payable 1.64% 2.44% 2.37%
New Accounting Standard - CECL $ (4)    
Nonpower Programs Appropriation Investment      
Appropriation Investment      
Balance at beginning of year 4,351    
Balance at end of year 4,351 $ 4,351  
Power Program Appropriation Investment      
Appropriation Investment      
Balance at beginning of year 258 258 $ 258
Net income (loss) 0 0 0
Return on power program appropriation investment 0 0 0
Balance at end of year 258 258 258
New Accounting Standard - CECL 0    
Power Program Retained Earnings      
Appropriation Investment      
Balance at beginning of year 12,177 10,823 9,404
Net income (loss) 1,520 1,360 1,425
Return on power program appropriation investment (4) (6) (6)
Balance at end of year 13,689 12,177 10,823
Net proprietary capital at September 30 13,947 12,435  
New Accounting Standard - CECL (4) 0  
Nonpower Programs Appropriation Investment, Net      
Appropriation Investment      
Balance at beginning of year 548 556 564
Net income (loss) (8) (8) (8)
Return on power program appropriation investment 0 0 0
Balance at end of year 540 548 556
New Accounting Standard - CECL 0 0  
Nonpower Programs Retained Earnings      
Appropriation Investment      
Balance at beginning of year (3,803) (3,795)  
Return on power program appropriation investment 0 0  
Balance at end of year (3,811) (3,803) (3,795)
Net proprietary capital at September 30 540 548  
Affiliated Entity      
Appropriation Investment      
Return on power program appropriation investment $ (4) $ (6) $ (6)
v3.21.2
Proprietary Capital - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2019
Accumulated Other Comprehensive Income (Loss)    
Reclassification to earnings from cash flow hedges   $ 45
Reclassification to earnings from cash flow hedges in the next twelve months $ (25)  
v3.21.2
Other Income (Expense), Net Other Income (Expense), Net (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Other Income (Expense), Net      
Other income $ 28 $ 0 $ (21)
Interest income 12 18 25
External services 13 12 13
Gain (Loss) on Investments 16 9 3
Miscellaneous 0 (3) 0
Other income (expense), net $ 13 $ 36 $ 62
v3.21.2
Benefit Plans Components of Benefit Plans (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure        
Fixed and variable fund annual maximum contribution   $ 10,000    
Defined contribution plan contribution amount   $ 92,000,000 $ 88,000,000 $ 84,000,000
Minimum        
Defined Benefit Plan Disclosure        
Threshold for Deferral of Actuarial Gain/Loss Under Corridor Approach   10.00%    
Scenario, Forecast        
Defined Benefit Plan Disclosure        
Defined contribution plan contribution amount $ 97,000,000      
v3.21.2
Benefit Plans Obligations and Funded Status (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Pension Benefits      
Change in benefit obligation      
Benefit obligation $ 13,675 $ 13,312  
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation 13,348 13,675  
Service cost 57 55 $ 44
Interest cost 368 415 $ 499
Plan participants' contributions 5 6  
Change in Plan Assets due to Collections 0 0  
Collections [1] 0 0  
Actuarial loss (gain) (25) 614  
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment 0 2  
Net transfers from variable fund/401(k) plan 2 2  
Expenses paid (6) (5)  
Benefits paid 728 726  
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets 9,110 7,959  
Change in plan assets      
Fair value of net plan assets 7,959 7,980  
Actual return on plan assets 1,572 397  
Employer contributions 306 305  
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]      
Funded status $ (4,238) $ (5,716)  
Discount rate 2.90% 2.75% 3.20%
Amount of defined benefit plan actuarial gain (loss) from change in COLA   $ 69  
Amount of defined benefit plan actuarial gain (loss) from discount rate change $ (248) (714)  
Amount of defined benefit plan actuarial gain (loss) from change in mortality assumption (28) (137)  
Amount of defined benefit plan actuarial gain (loss) from change in demograhic and plan experience 104 74  
Amount of defined benefit plan actuarial gain (loss) from assumption change in elections 91 32  
Other Post-retirement Benefits      
Change in benefit obligation      
Benefit obligation 498 544  
Postconfirmation, Other Postretirement Obligations 544 499  
Service cost 18 16 $ 11
Interest cost 16 16 $ 18
Plan participants' contributions 0 0  
Change in Plan Assets due to Collections 17 20  
Collections [1] 17 20  
Actuarial loss (gain) (53) 39  
Defined Benefit Plan, Benefit Obligation, Increase (Decrease) for Plan Amendment 0 0  
Net transfers from variable fund/401(k) plan 0 0  
Expenses paid 0 0  
Benefits paid 44 46  
Change in plan assets      
Fair value of net plan assets 0 0  
Actual return on plan assets 0 0  
Employer contributions 27 26  
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]      
Funded status $ (498) $ (544)  
Discount rate 3.05% 3.05%  
Amount of defined benefit plan actuarial gain (loss) from updated capita claims costs and retiree contributions $ (47) $ (30)  
Amount of change related to actual $ 1 4  
Defined Benefit Plan, Assumptions Used in Calculation, Description     3.30 percent
Amount of defined benefit plan actuarial gain (loss) from change in health care trend rate assumptions   $ 15  
[1] Collections include retiree contributions as well as provider discounts and rebates.
v3.21.2
Benefit Plans Amounts Recognized on TVA's Consolidated Balance Sheets (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure      
Regulatory assets $ 7,956 $ 10,245  
Non-current regulatory liabilities (40) (23)  
Accounts payable and accrued liabilities (2,215) (1,844)  
Pension and post-retirement benefit obligations (5,045) (6,617)  
Pension Benefits      
Defined Benefit Plan Disclosure      
Amount capitalized due to actions of regulator 91 110  
Regulatory assets 3,636 5,115  
Accounts payable and accrued liabilities (7) (5)  
Pension and post-retirement benefit obligations [1] (4,231) (5,711)  
Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Amount capitalized due to actions of regulator 0 0  
Regulatory assets 32 78  
Non-current regulatory liabilities (32)    
Accounts payable and accrued liabilities (24) (28)  
Pension and post-retirement benefit obligations [1] (474) (516)  
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent      
Defined Benefit Plan Disclosure      
Postemployment benefits liability, noncurrent $ 340 $ 390 $ 419
[1] The table above excludes $340 million and $390 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2021 and 2020, respectively.
v3.21.2
Benefit Plans Postretirement Benefit Costs Deferred as Regulatory Assets (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Defined Benefit Plan Disclosure    
Regulatory assets $ (7,956) $ (10,245)
Non-current regulatory liabilities 40 23
Pension Benefits    
Defined Benefit Plan Disclosure    
Unrecognized prior service cost (credit) (517) (615)
Unrecognized net loss 4,062 5,620
Amount capitalized due to actions of regulator (91) (110)
Regulatory assets (3,636) (5,115)
Other Post-retirement Benefits    
Defined Benefit Plan Disclosure    
Unrecognized prior service cost (credit) (93) (112)
Unrecognized net loss 125 190
Amount capitalized due to actions of regulator 0 0
Regulatory assets (32) $ (78)
Non-current regulatory liabilities $ 32  
v3.21.2
Benefit Plans Projected Benefit Obligations and Accumulated Benefit Obligations in Exess of Plan Assets (Details) - Pension Benefits - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Defined Benefit Plan Disclosure    
Accumulated benefit obligation $ 13,299 $ 13,613
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets 9,110 7,959
Fair value of net plan assets $ 7,959 $ 7,980
v3.21.2
Benefit Plans Components of Net Periodic Benefit Cost (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Pension Benefits      
Defined Benefit Plan Disclosure      
Service cost $ 57 $ 55 $ 44
Interest cost 368 415 499
Expected return on plan assets 493 488 477
Amortization of prior service credit (97) (97) (99)
Recognized net actuarial loss (452) (436) (336)
Net periodic benefit cost as acutarially determined 287 321 303
Amount expensed (capitalized) due to actions of regulator (19) 15 (1)
Total net period benefit cost 306 306 304
Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Service cost 18 16 11
Interest cost 16 16 18
Expected return on plan assets 0 0 0
Amortization of prior service credit (18) (24) (24)
Recognized net actuarial loss (11) 10 4
Net periodic benefit cost as acutarially determined 27 18 9
Amount expensed (capitalized) due to actions of regulator 0 0 0
Total net period benefit cost $ 27 $ 18 $ 9
v3.21.2
Benefit Plans Actuarial Assumptions (Details)
 12 Months Ended
Sep. 30, 2021
USD ($)
Sep. 30, 2020
USD ($)
Sep. 30, 2019
Defined Benefit Plan Disclosure      
Defined Benefit Plan, Cost of Living Adjustment Assumption 0.25%    
Pension Benefits      
Defined Benefit Plan Disclosure      
Discount rate 2.75% 3.20% 4.35%
Discount rate 2.90% 2.75% 3.20%
Rate of compensation increase 3.37% 3.43%  
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Weighted-Average Interest Crediting Rate 5.15% 5.15%  
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Weighted-Average Interest Crediting Rate 5.15% 5.15% 5.16%
Expected return on plan assets 6.75% 6.75% 6.75%
Defined Benefit Plan, Cost of Living Adjustment Assumption 2.00% 2.00% 2.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase   3.43% 3.50%
COLA percentage increase (decrease) 6.00%    
Defined Benefit Plan, Cost of Living Adjustment Assumption Next Fiscal Year 3.15%    
Actual Return on Plan Assets 20.30% 5.11% 4.99%
Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Discount rate 3.05% 3.30% 4.40%
Discount rate 3.05% 3.05%  
Defined Benefit Plan, Cost of Living Adjustment Assumption 2.00% 2.00% 2.00%
Minimum      
Defined Benefit Plan Disclosure      
Rate of compensation increase 2.50%    
Maximum      
Defined Benefit Plan Disclosure      
Rate of compensation increase 14.00%    
Post-Medicare Eligible [Member] [Member] | Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Current health care cost trend rate 0.00% 0.00% 0.00%
Ultimate health care cost trend rate 4.00% 4.00% 4.00%
Year health care cost ultimate trend rate is reached for Net Benefit Cost Assumption 2024 2023 2021
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate 2024 2024  
Pre-Medicare Eligible per Capita Claim Costs | Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Current health care cost trend rate 6.50% 6.75% 6.25%
Ultimate health care cost trend rate 5.00% 5.00% 5.00%
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate 2027 2027 2024
Initial health care cost trend rate $ 0.0625 $ 0.0650  
Pre-Medicare Eligible per Capita Contributions | Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Current health care cost trend rate 11.93% 6.75% 6.25%
Ultimate health care cost trend rate 5.00% 5.00% 5.00%
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate 2027 2027 2024
Initial health care cost trend rate $ 0.0851 $ 0.1193  
Health care cost trend rate for future year 5.50    
v3.21.2
Benefit Plans Sensitivity to Certain Changes in Pension Assumptions (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure      
Defined Benefit Plan, Cost of Living Adjustment Assumption 0.25%    
Discount rate      
Defined Benefit Plan Disclosure      
Change in Assumption (0.25%)    
Impact on Pension Cost $ 16,000,000    
Impact on Projected Benefit Obligation $ 396,000,000    
Rate of return on plan assets      
Defined Benefit Plan Disclosure      
Change in Assumption (0.25%)    
Impact on Pension Cost $ 18,000,000    
Cost of Living Adjustments [Domain]      
Defined Benefit Plan Disclosure      
Change in Assumption 0.25%    
Impact on Pension Cost $ 29,000,000    
Impact on Projected Benefit Obligation $ 258,000,000    
Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Defined Benefit Plan, Cost of Living Adjustment Assumption 2.00% 2.00% 2.00%
Discount rate 3.05% 3.05%  
Actuarial assumption COLA $ 0.0113 $ 0.0154 $ 0.0221
Pension Benefits      
Defined Benefit Plan Disclosure      
Defined Benefit Plan, Cost of Living Adjustment Assumption 2.00% 2.00% 2.00%
COLA percentage increase (decrease) 6.00%    
Discount rate 2.90% 2.75% 3.20%
v3.21.2
Benefit Plans Asset Holdings (Details) - USD ($)
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure      
Target Allocation 100.00%    
Plan Asset Allocations 100.00% 100.00%  
Growth Assets      
Defined Benefit Plan Disclosure      
Target Allocation 17.00%    
Plan Asset Allocations 18.00% 44.00%  
Defensive growth assets      
Defined Benefit Plan Disclosure      
Target Allocation 38.00%    
Plan Asset Allocations 35.00% 20.00%  
Defensive Assets      
Defined Benefit Plan Disclosure      
Target Allocation 20.00%    
Plan Asset Allocations 20.00% 18.00%  
Inflation-sensitive Assets      
Defined Benefit Plan Disclosure      
Target Allocation 25.00%    
Plan Asset Allocations 27.00% 18.00%  
Other Post-retirement Benefits      
Defined Benefit Plan Disclosure      
Actuarial assumption COLA $ 0.0113 $ 0.0154 $ 0.0221
v3.21.2
Benefit Plans Fair Value Measurements (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Years
Sep. 30, 2020
USD ($)
Oct. 01, 2019
USD ($)
Defined Benefit Plan Disclosure      
Fair value of gross plan assets $ 9,749 $ 8,368  
Derivative liabilities 136 135  
Net payables 263 107  
Payables for collateral on loaned securities $ 240 167  
Voting percentage required to desolve partnership in private equity 80.00%    
Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets $ 2,898 2,679  
Derivative liabilities 4 1  
Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 2,755 2,561  
Derivative liabilities 132 134  
Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 74 94 $ 42
Derivative liabilities 0 0  
Equity securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 992 1,624  
Equity securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 990 1,621  
Equity securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Equity securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 2 3  
Preferred securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 9 11  
Preferred securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 2 0  
Preferred securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 6 11  
Preferred securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 0  
Corporate debt securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1,360 1,421  
Corporate debt securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Corporate debt securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1,359 1,418  
Corporate debt securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 3  
Residential mortgage-backed securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 275 317  
Residential mortgage-backed securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Residential mortgage-backed securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 267 314  
Residential mortgage-backed securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 8 3  
Debt securities issued by U.S. Treasury and other U.S. government agencies      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 741 701  
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 741 701  
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt securities issued by U.S. Treasury and other U.S. government agencies | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Asset-backed securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 151 116  
Asset-backed securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Asset-backed securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 110 88  
Asset-backed securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 41 28  
Debt securities issued by state/local governments      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 28 23  
Debt securities issued by state/local governments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt securities issued by state/local governments | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 28 23  
Debt securities issued by state/local governments | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt securities issued by foreign governments      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 204 231  
Debt securities issued by foreign governments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt securities issued by foreign governments | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 200 179  
Debt securities issued by foreign governments | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 4 52  
Commercial mortgage-backed securities      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 168 91  
Commercial mortgage-backed securities | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Commercial mortgage-backed securities | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 151 86  
Commercial mortgage-backed securities | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 17 5  
Equity security commingled funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 619 931  
Equity security commingled funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Equity security commingled funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Equity security commingled funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt security commingled funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 881 203  
Debt security commingled funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt security commingled funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Debt security commingled funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Blended security commingled funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 105 102  
Blended security commingled funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Blended security commingled funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Blended security commingled funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Institutional mutual funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 841 277  
Institutional mutual funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 841 277  
Institutional mutual funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Institutional mutual funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Cash equivalents and other short-term investments      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 710 338  
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 323 77  
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 387 261  
Cash equivalents and other short-term investments | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private Credit [Member]      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 324 166  
Private Credit [Member] | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private Credit [Member] | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private Credit [Member] | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private equity funds measured at net asset value      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1,333 1,003  
Private equity funds measured at net asset value | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private equity funds measured at net asset value | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private equity funds measured at net asset value | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private real estate funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 760 629  
Private real estate funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private real estate funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Private real estate funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Securities lending commingled funds      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 240 167  
Securities lending commingled funds | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Securities lending commingled funds | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 240 167  
Securities lending commingled funds | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Futures      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 3  
Derivative liabilities 4 1  
Futures | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 3  
Derivative liabilities 4 1  
Futures | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Derivative liabilities 0 0  
Futures | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Derivative liabilities 0 0  
Purchased options      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 6 10  
Purchased options | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Purchased options | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 6 10  
Purchased options | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Interest Rate Swap      
Defined Benefit Plan Disclosure      
Derivative liabilities 23 6  
Interest Rate Swap | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Derivative liabilities 0 0  
Interest Rate Swap | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Derivative liabilities 23 6  
Interest Rate Swap | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Derivative liabilities 0 0  
Foreign currency forward      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 2  
Derivative liabilities 1 3  
Foreign currency forward | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Derivative liabilities 0 0  
Foreign currency forward | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 1 2  
Derivative liabilities 1 3  
Foreign currency forward | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets 0 0  
Derivative liabilities 0 0  
Written options      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets   2  
Written options | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets   0  
Written options | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets   2  
Written options | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Fair value of gross plan assets   0  
Credit default swaps      
Defined Benefit Plan Disclosure      
Derivative liabilities   2  
Credit default swaps | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Derivative liabilities   0  
Credit default swaps | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Derivative liabilities   2  
Credit default swaps | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Derivative liabilities   0  
Securities Sold under Agreements to Repurchase [Member]      
Defined Benefit Plan Disclosure      
Derivative liabilities 108 123  
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 1      
Defined Benefit Plan Disclosure      
Derivative liabilities 0 0  
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 2      
Defined Benefit Plan Disclosure      
Derivative liabilities 108 123  
Securities Sold under Agreements to Repurchase [Member] | Fair Value, Inputs, Level 3      
Defined Benefit Plan Disclosure      
Derivative liabilities $ 0 $ 0  
Minimum      
Defined Benefit Plan Disclosure      
Number of years partnerships in private equity generally continue | Years 10    
Number of one year extensions for partnerships in private equity | Years 2    
Maximum      
Defined Benefit Plan Disclosure      
Number of years partnerships in private equity generally continue | Years 14    
Number of one year extensions for partnerships in private equity | Years 3    
v3.21.2
Benefit Plans Fair Value Measurements Using Significant Unobservable Inputs (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Oct. 01, 2019
Defined Benefit Plan Disclosure      
Net payables $ 263 $ 107  
Payables for collateral on loaned securities 240 167  
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]      
Fair value of gross plan assets 9,749 8,368  
Fair Value, Inputs, Level 3      
Defined Benefit Plan, Change in Fair Value of Plan Assets, Level 3 Reconciliation [Roll Forward]      
Fair value of gross plan assets 74 94 $ 42
Net realized/unrealized gains (48) 46  
Purchases, sales, issuances, and settlements, net 32 11  
Transfers in and/or out of Level 3 (4) $ (5)  
Fair value of net plan assets $ 74    
v3.21.2
Benefit Plans Estimated Future Benefit Payments (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Pension Benefits  
Defined Benefit Plan Disclosure  
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months $ 790
Defined Benefit Plan, Expected Future Benefit Payments, Year Two 786
Defined Benefit Plan, Expected Future Benefit Payments, Year Three 782
Defined Benefit Plan, Expected Future Benefit Payments, Year Four 781
Defined Benefit Plan, Expected Future Benefit Payments, Year Five 776
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter 3,772
Other Post-retirement Benefits  
Defined Benefit Plan Disclosure  
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months 24
Defined Benefit Plan, Expected Future Benefit Payments, Year Two 23
Defined Benefit Plan, Expected Future Benefit Payments, Year Three 21
Defined Benefit Plan, Expected Future Benefit Payments, Year Four 20
Defined Benefit Plan, Expected Future Benefit Payments, Year Five 20
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter $ 107
v3.21.2
Benefit Plans Contributions (Details) - USD ($)
 12 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Defined Benefit Plan Disclosure        
Defined contribution plan contribution amount   $ 92,000,000 $ 88,000,000 $ 84,000,000
Other postretirement benefit contributions   25,000,000    
Contribution related to TVARS case   5,000,000    
Expected Payment for Postretirement Benefits   24,000,000    
Supplemental Employee Retirement Plans, Defined Benefit        
Defined Benefit Plan Disclosure        
Defined Benefit Plan, Expected Payments Related to SERP   7,000,000    
Defined Benefit Plan, Related to SERP   6,000,000 5,000,000  
Other Post-retirement Benefits        
Defined Benefit Plan Disclosure        
Employer contributions   27,000,000 26,000,000  
Pension Benefits        
Defined Benefit Plan Disclosure        
Employer contributions   306,000,000 $ 305,000,000  
Other Pension Plans, Defined Benefit        
Defined Benefit Plan Disclosure        
Employer contributions   300,000,000    
Minimum | Other Pension Plans, Defined Benefit        
Defined Benefit Plan Disclosure        
Employer contributions   $ 300,000,000    
Scenario, Forecast        
Defined Benefit Plan Disclosure        
Defined contribution plan contribution amount $ 97,000,000      
Scenario, Forecast | Other Pension Plans, Defined Benefit        
Defined Benefit Plan Disclosure        
Employer contributions $ 300,000,000      
v3.21.2
Benefit Plans Other Postemployment Benefits (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Other Post-Employment Benefits      
Discount rate 1.52% 0.69% 1.68%
Period expense $ (20) $ (45) $ (59)
Payment of Workers Compensation Claims 74 39  
Accounts Payable and Accrued Liabilities      
Other Post-Employment Benefits      
Postemployment Benefits Liability, Current 0 0  
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent      
Other Post-Employment Benefits      
Postemployment benefits liability, noncurrent $ 340 $ 390 $ 419
v3.21.2
Commitments and Contingencies - Table (Details)
$ in Millions
Sep. 30, 2021
USD ($)
megawatts
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Obligations      
Megawatts provided under transmission obligations | megawatts 2,450    
Accrual for Environmental Loss Contingencies, Gross $ 18 $ 14  
Estimated future decommissioning cost [1] 7,002 6,785 $ 5,616
CT and QTE outstanding leaseback obligation 25 223  
Nuclear      
Obligations      
Estimated future decommissioning cost $ 3,428 $ 3,278 $ 3,136
[1]
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Commitments and Contingencies - Membership Interests of VIE Subject to Mandatory Redemption (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Portion at Other than Fair Value Measurement [Member]    
Long-term Purchase Commitment [Line Items]    
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount $ 23 $ 26
Financial Instruments Subject to Mandatory Redemption, Settlement Terms, Share Value, Amount 30 $ 35
Minimum payments on membership interests subject to mandatory redemption, due in next twelve months 3  
Minimum payments on membership interests subject to mandatory redemption, due in year two 2  
Minimum payments on membership interests subject to mandatory redemption, due in year three 1  
Minimum payments on membership interests subject to mandatory redemption, due in year four 1  
Minimum payments on membership interests subject to mandatory redemption, due in year five $ 1  
v3.21.2
Commitments and Contingencies - Leases (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Leases      
CT and QTE outstanding leaseback obligation $ 25 $ 223  
Estimated future decommissioning cost [1] $ 7,002 $ 6,785 $ 5,616
[1]
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Commitments and Contingencies - Purchase Obligations (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Megawatts
megawatts
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2027
USD ($)
Sep. 30, 2026
USD ($)
Sep. 30, 2025
USD ($)
Sep. 30, 2024
USD ($)
Sep. 30, 2023
USD ($)
Sep. 30, 2022
USD ($)
Obligations                  
Megawatts provided under power purchase obligations | Megawatts 2,455                
Remaining terms of the agreements, high end of range 14 years                
Megawatts provided under transmission obligations | megawatts 2,450                
Power purchased under agreement | $ $ 202 $ 202 $ 195            
2019 | $ $ 4                
Scenario, Forecast                  
Obligations                  
Purchase Obligation | $       $ 754 $ 137 $ 138 $ 138 $ 138 $ 138
Purchase Agreements Required by Federal Law                  
Obligations                  
Megawatts provided under power purchase obligations | Megawatts 270                
Number of generation sources under PPAs | Megawatts 369                
v3.21.2
Commitments and Contingencies - Contingencies (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Units
reactors
Procedures
Insurance_layers
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Contingencies      
Loss Contingency, Damages Sought, Value $ 30    
Nuclear liability insurance 450    
Assessment from licensees for each licensed reactor $ 138    
Number of licensed reactors in US | reactors 95    
Nuclear accident assessment limitation per year per unit $ 20    
Number of licensed nuclear units | Units 7    
Maximum assessment per nuclear incident $ 963    
Total amount of protection available $ 13,500    
Number of layers until the U.S. Congress is required to take action | Insurance_layers 2    
Amount of insurance available for loss at any one site $ 2,100    
Maximum amount of retrospective premiums 128    
Maximum idemnity if a covered accident tasks or keeps a nuclear unit offline 490    
Maximum amount of retrospective premiums 43    
Estimated future decommissioning cost [1] $ 7,002 $ 6,785 $ 5,616
Number of procedures for determining estimates for the costs of nuclear decommissioning | Procedures 2    
Amount spent to reduce emissions since 1970 $ 6,800    
Amount spent to reduce emissions 17 19 17
Possible additional future costs for compliance with Clean Air Act requirements 159    
Possible additional future costs for compliance with CCR requirements 789    
Possible additional future costs for compliance with Clean Water requirements. 148    
Estimated liability for cleanup and similar environmental work on a non-discounted basis 18 14  
Amount of insurance available for loss at any one site, max 2,800    
Nuclear      
Contingencies      
Estimated future decommissioning cost 3,428 3,278 3,136
Non-nuclear      
Contingencies      
Estimated future decommissioning cost $ 3,574 $ 3,507 $ 2,480
[1]
(1) Includes $266 million and $345 million at September 30, 2021 and 2020, respectively, in Current liabilities.

TVA implemented revised depreciation rates during the first quarter of 2022 applicable to its completed plant as a result of the completion of a new depreciation study. The study includes a decline in the service life estimates of TVA’s coal-fired plants based on current planning assumptions to potentially retire the remainder of the coal-fired fleet by 2035. As a result of the accelerated retirements reflected in the depreciation study, TVA performed an assessment of the assumptions used in the timing of cash flows related to its non-nuclear AROs. Based on the assessment, TVA identified changes to its projections of timing of certain asset retirement processes, that will be recorded in 2022.
v3.21.2
Commitments and Contingencies - Legal Proceedings (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Groups
Agreements
Legal Proceedings  
Possible additional future costs for compliance with CCR requirements $ 789
Amount spent under environmental agreements 281
Contribution related to TVARS case 5
Possible additional future costs for compliance with Clean Water requirements. 148
Amount remaining to be spent under environmental agreements 10
Loss Contingency, Damages Sought, Value 30
Compensatory damages - Kingston Case 8
Punitive Damages - Kingston Case 10
Down payment from Nuclear Development 22
Compensated costs to Nuclear Development 1
General  
Legal Proceedings  
Legal loss contingency accrual $ 13
Environmental Agreements  
Legal Proceedings  
Number of similar environmental agreements entered into | Agreements 2
Number of environmental agreements entered into with the EPA | Agreements 1
Number of environmental agreements entered into with environmental advocacy groups | Groups 3
Amount to be invested in certain environmental projects $ 290
Other long-term liabilities | General  
Legal Proceedings  
Legal loss contingency accrual 12
Accounts payable and accrued liabilities | General  
Legal Proceedings  
Legal loss contingency accrual $ 1
v3.21.2
Commitments and Contingencies Unfunded loan commitments (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Legal Proceedings  
2019 $ 4
2020 $ 0
v3.21.2
Related Parties Related Parties (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Related Parties      
Remaining appropriation investment $ 258    
Revenue from sales of electricity 10,503 $ 10,249 $ 11,318
Other income (28) 0 21
Long-term Investments 4,053 3,198  
Return on power program appropriation investment (4) (6) (6)
Related Party Transactions      
Related Parties      
Revenue from sales of electricity 109 105 118
Other income 280 260 258
Operating expenses 214 224 222
Additions to property, plant, and equipment 10 9 10
Cash and cash equivalents 30 31 45
Receivables from Customers 65 94 76
Long-term Investments 573 485 279
Receivables, Long-term Contracts or Programs 31 27 53
Accounts payable and accrued liabilities 15 39 69
Long-term power bonds, net 1 1 0
Return on power program appropriation investment $ (4) $ (6) $ (6)
v3.21.2
Unaudited Quarterly Financial Information Unaudited Quarterly Financial Information (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Quarterly Financial Information Disclosure [Abstract]      
Revenue from sales of electricity $ 10,503 $ 10,249 $ 11,318
Operating expenses 7,658 7,538 8,507
Operating income 2,845 2,711 2,811
Net income (loss) $ 1,512 $ 1,352 $ 1,417
v3.21.2
Revenue (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Other revenue $ 146 $ 145 $ 159
Off-system sales 7 4 4
Sales of Electricity (subtotal) 10,350 10,100 11,155
Electric revenue (10,357) (10,104) (11,159)
Revenues 10,503 10,249 11,318
Pandemic Relief Credit (221)    
ALABAMA      
Electric revenue (1,508) (1,439) (1,593)
GEORGIA      
Electric revenue (254) (249) (270)
KENTUCKY      
Electric revenue (655) (624) (691)
MISSISSIPPI      
Electric revenue (984) (941) (1,063)
NORTH CAROLINA      
Electric revenue (66) (65) (74)
TENNESSEE      
Electric revenue (6,841) (6,740) (7,419)
VIRGINIA      
Electric revenue $ (42) $ (42) $ (45)
v3.21.2
Revenue Customer Type (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Units
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Electric revenue $ 10,357 $ 10,104 $ 11,159
Other revenue 146 145 159
Revenues 10,503 10,249 11,318
Bill credits for LTA $ (189) (163) 14
Number of LPCs signed LTA | Units 145    
Percentage of total operating revenues 90.70%    
Total number of LPCs | Units 153    
Number of LPCs signed Flexibility Agreement | Units 74    
Off-system sales $ 7 4 4
Percent of sales of electricity to LPCs 92.00%    
Pandemic Relief Credit $ (221)    
MLGW's % of operating revenues 9.00%    
NES's % of operating revenues 8.00%    
20-year contract arrangement [Member]      
Percentage of total operating revenues 76.00%    
5-year contract arrangement [Member]      
Number of LPCs signed LTA | Units 8    
Percentage of total operating revenues 14.70%    
TENNESSEE      
Electric revenue $ 6,841 6,740 7,419
VIRGINIA      
Electric revenue 42 42 45
NORTH CAROLINA      
Electric revenue 66 65 74
MISSISSIPPI      
Electric revenue 984 941 1,063
KENTUCKY      
Electric revenue 655 624 691
GEORGIA      
Electric revenue 254 249 270
ALABAMA      
Electric revenue 1,508 1,439 1,593
Federal agencies and other [Member]      
Electric revenue 116 110 122
20-year contract arrangement [Member]      
Electric revenue 7,987    
5-year contract arrangement [Member]      
Electric revenue 1,547    
Local Power Company [Member]      
Electric revenue 9,534 9,406 10,351
Industries Directly Served [Member]      
Electric revenue $ 707 $ 588 $ 686
v3.21.2
Revenue Local Power Company Contracts (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2021
USD ($)
Units
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Number of LPCs signed LTA | Units 145    
Electric revenue $ 10,357 $ 10,104 $ 11,159
Total number of LPCs | Units 153    
Percentage of total operating revenues 90.70%    
Percent of op revenues of LPCs who filed complaint with FERC 3.00%    
Percent of wholesale Credit offered 3.10%    
20-year contract arrangement [Member]      
Electric revenue $ 7,987    
5-year contract arrangement [Member]      
Electric revenue 1,547    
Local Power Company [Member]      
Electric revenue $ 9,534 $ 9,406 $ 10,351
5-year contract arrangement [Member]      
Number of LPCs signed LTA | Units 8    
Percentage of total operating revenues 14.70%    
v3.21.2
Revenue Economic Development Incentives (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Revenue from Contract with Customer [Abstract]      
Revenues $ 315 $ 318 $ 310
Unpaid economic incentives $ (176) $ (172)  
v3.21.2
Plant Closures (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Property, Plant and Equipment [Abstract]      
Accelerated depreciation $ 136 $ 387 $ 566
Completed Plant      
Accelerated depreciation 136 $ 387 $ 566
Property, Plant, and Equipment, Owned, Accumulated Depreciation $ 1,100    
Property, Plant and Equipment [Member]      
Completed Plant      
Property, Plant and Equipment, Dispositions 4 million 11 million 151 million
Property, Plant and Equipment, Disposals $ 1 $ 2 $ 19
v3.21.2
Leases (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Sep. 30, 2019
Lessee, Lease, Description [Line Items]      
Operating Lease, Right-of-Use Asset $ 165 $ 232  
Finance lease, Right-of-Use-Asset 692 516  
Total lease assets 857 748  
Operating Lease, Liability, Noncurrent 122 171  
Finance Lease, Liability, Noncurrent 687 525  
Total lease liabilities 909 800  
Operating Lease, Cost 52 84  
Variable Lease, Cost 75 75  
Short-term Lease, Cost 12 7  
Finance Lease, Right-of-Use Asset, Amortization 51 15  
Finance Lease, Interest Expense 39 33  
Total finance lease costs 90 48  
Lease, Cost 229 214  
Operating Leases, Rent Expense     $ 97
Operating lease liability      
Lessee, Lease, Description [Line Items]      
Accounts Payable and Accrued Liabilities 40 63  
Finance lease liability      
Lessee, Lease, Description [Line Items]      
Accounts Payable and Accrued Liabilities $ 60 $ 41  
v3.21.2
Leases, SoCF (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2021
Sep. 30, 2020
Lessee, Lease, Description [Line Items]    
Operating cash flows for operating leases $ 53 $ 85
Operating cash flows for finance leases 39 33
Financing cash flows for finance leases 52 15
Lease assets obtained in exchange for lease obligations - finance 233 394
Lease assets obtained in exchange for lease obligations - operating $ (22) $ 110
v3.21.2
Leases, Weighted Averages (Details)
Sep. 30, 2021
Sep. 30, 2020
Lessee, Lease, Description [Line Items]    
Operating Lease, Weighted Average Remaining Lease Term 5 years 5 years
Finance Lease, Weighted Average Remaining Lease Term 12 years 12 years
Operating Lease, Weighted Average Discount Rate, Percent 1.50% 1.60%
Finance Lease, Weighted Average Discount Rate, Percent 17.70% 21.80%
v3.21.2
Leases, Future Minimum Payments (Details)
$ in Millions
Sep. 30, 2021
USD ($)
Lessee, Lease, Description [Line Items]  
Operating Leases, Future Minimum Payments Due, Next Twelve Months $ 42
Operating Leases, Future Minimum Payments, Due in Two Years 40
Operating Leases, Future Minimum Payments, Due in Three Years 37
Operating Leases, Future Minimum Payments, Due in Four Years 34
Operating Leases, Future Minimum Payments, Due in Five Years 10
Operating Leases, Future Minimum Payments, Due Thereafter 5
Total 168
Present value of future minimum lease payments, operating (6)
Operating present value of net minimum lease payments 162
Finance Lease, Liability, to be Paid, Year One 115
Finance Lease, Liability, to be Paid, Year Two 112
Finance Lease, Liability, to be Paid, Year Three 107
Finance Lease, Liability, to be Paid, Year Four 106
Finance Lease, Liability, to be Paid, Year Five 105
Finance Lease, Liability, Payments Due Thereafter 656
Finance Lease, Liability, Payment, Due 1,201
Finance Lease, Liability, Payment Amounts Representing Interest (454)
Finance Lease, Liability 747
Purchased Power Lease $ 413
v3.21.2
Deferred Costs, Capitalized, Prepaid, and Other Assets (Details) - USD ($)
$ in Millions
Sep. 30, 2021
Sep. 30, 2020
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Other Assets, Miscellaneous, Current $ 77 $ 58