Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 156

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part I, Item 1
Chunk 156
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30, 2024, respectively, for trade accounts receivable.  At June 30, 2025, the allowance for uncollectible accounts included $8 million related to one local power company customer ("LPC").  Additionally, loans receivable of $114 million and $105 million at June 30, 2025, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively.  Loans receivables are reported net of allowances for uncollectible accounts of $2 million at both June 30, 2025, and September 30, 2024.Pre-Commercial Plant OperationsAs part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system.  TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost.  Pre-commercial plant operations began on Paradise combustion turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023.  Estimated revenue of $3 million related to this project was capitalized to offset project costs for the nine months ended June 30, 2024, all of which was recognized in the three months ended December 31, 2023.  TVA also capitalized related fuel costs for this project of $3 million for the nine months ended June 30, 2024, all of which was recognized in the three months ended December31, 2023.  Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during the nine months ended June 30, 2025, and Units 21-25 and 27-30 became operational on May 6, 2025.  Estimated revenue of $1 million and $3 million related to this project was capitalized to offset project costs for the three and nine months ended June 30, 2025, respectively.  

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TVA also capitalized related fuel costs for this project of $2 million and $6 million for the three and nine months ended June 30, 2025, respectively. Depreciation    TVA accounts for depreciation of its properties using the composite depreciation convention