Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 423

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 423
---
A has not borrowed or committed under letters of credit.  This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt.  At June 30, 2025, and September 30, 2024, there were $517 million and $566 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding.  TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps.  See Note 14 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral.  TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging Program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit. The following table provides additional information regarding TVA's funding available under the four revolving credit facilities:Summary of Credit FacilitiesAt June 30, 2025(in millions)Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailabilityMarch 2026$150 $38 $— $112 September 20261,000 71 — 929 March 20271,000 194 — 806 February 2028500 214 — 286 Total$2,650 $517 $— $2,133 TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the Tennessee Valley Authority Act of 1933, as amended ("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 2025 with a maturity date of September 30, 2025.  Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been 

23

Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

available to TVA since the 1960s.  TVA can borrow under the U.S. Treasury credit facility only if it cannot issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity.  The