Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 363

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 363
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5.  Inventories, Net 

The table below summarizes the types and amounts of TVA's inventories:Inventories, Net(in millions) At March 31, 2025At September 30, 2024Materials and supplies inventory$970 $931 Fuel inventory284 286 Renewable energy certificates/emissions allowance inventory, net9 11 Allowance for inventory obsolescence(81)(73)Inventories, net$1,182 $1,155 

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6. Other Current Assets

Other current assets consisted of the following:Other Current Assets (in millions) At March 31, 2025At September 30, 2024Commodity contract derivative assets$106 $5 Prepaid software maintenance38 22 Inventory work-in-progress33 41 Prepaid insurance19 19 Current portion of prepaid long-term service agreements14 7 Cloud assets5 13 Other29 13 Other current assets$244 $120 

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

7.  Plant Closures 

BackgroundTVA 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. In January 2023, TVA issued its Record of Decision to retire the two coal-fired units at Cumberland Fossil Plant ("Cumberland") by the end of CY 2026 and CY 2028.  In April 2024, TVA issued its Record of Decision to retire the nine coal-fired units at Kingston Fossil Plant ("Kingston") by CY 2027.  In addition, TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental reviews, public input, and TVA Board of Directors ("TVA Board") approval.Financial ImpactTVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates.  TVA's decision