Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 290

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 290
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5.

23.  Commitments and Contingencies Commitments    Power Purchase Obligations.  TVA has contracted with various independent power producers and LPCs for additional capacity to be made available to TVA.  Several of these agreements have contractual minimum payments and are accounted for as either finance or operating leases.  In total, these agreements provide 5,938 megawatts ("MW") of summer net capability.  The remaining terms of the agreements range up to 23 years.  Additionally, TVA has contracted with regional transmission organizations to reserve 3,750 MW of transmission service to support purchases from the market and certain PPAs.  The remaining terms of these agreements range up to six years.  TVA has recorded $696 million, $519 million, and $355 million of expense under these power purchase and transmission service agreements during 2025, 2024, and 2023, respectively.TVA has one power purchase agreement that was negotiated as part of arranging financing for the facility.  At September 30, 2025, the non-lease portion of the commitment for each of the next five years and thereafter is shown below: 20262027202820292030ThereafterUnconditional purchase obligation$162 $162 $162 $162 $162 $242 Under federal law, TVA is obligated to purchase power from qualifying facilities (cogenerators and small power producers).  As of September 30, 2025, there was a combined qualifying facility capacity of 281 MW from 1,344 different generation sources, from which TVA purchased power under this law.  Unfunded Loan Commitments.  At September 30, 2025, TVA had no commitments under unfunded loan commitments for 2026 through 2030.Other Commitments.  See Note 9 — Leases, Note 12 — Variable Interest Entities, Note 15 — Debt and Other Obligations, and Note 21 — Benefit Plans for the obligations and commitments attributable to leases, VIEs and membership interests of VIEs subject to mandatory redemption, leaseback obligations, and the retirement plan, respectively.

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ContingenciesNuclear Insurance.  Section 170 of the Atomic Energy Act, commonly known as the Price-Anderson Act, provides a layered framework of financial protection to compensate for liability claims of members of the public for personal injury and property damages arising from a nuclear incident in the U.S.