Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 247

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 247
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's natural gas swap contracts under the FHP had remaining terms of up to four years.Commodity Derivatives under Financial Hedging Program(1)At September 3020252024Number of ContractsNotional AmountFair Value (MtM)(in millions)Number of ContractsNotional AmountFair Value (MtM)(in millions)Natural gas swap contracts295300 million mmBtu$(57)126230 million mmBtu$(161)Note(1)  Fair value amounts presented are based on the net commodity position with the counterparty.  Notional amounts disclosed represent the net value of contractual amounts.TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity.  

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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)At September 30(in millions)20252024AssetsCommodity contract derivatives 16 7 Commodity derivatives under the FHP(2)8 — Total derivatives subject to master netting or similar arrangement$24 $7 LiabilitiesCurrency swaps$115 $116 Interest rate swaps(3)698 840 Commodity contract derivatives6 5 Commodity derivatives under the FHP(2)65 161 Total derivatives subject to master netting or similar arrangement$884 $1,122 Notes(1)  Offsetting amounts include counterparty netting of derivative contracts.  Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2025 or 2024.(2)  At September 30, 2025, the gross derivative asset and gross derivative liability was $28 million and $85 million, respectively, with offsetting amounts for each totaling $20 million.  At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.(3)  Letters of credit of approximately $442 million and $535 million were posted as collateral at September 30, 2025 and 2024, respectively, to partially secure the liability positions of one of the interest rate swaps