Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 224

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 224
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's commodity contract derivatives.

 8.  Regulatory Assets and Liabilities 

TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities.  As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities.  Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  Components of regulatory assets and regulatory liabilities are summarized in the table below.Regulatory Assets and Liabilities(in millions) At December 31, 2024At September 30, 2024Current regulatory assets  Unrealized losses on commodity derivatives$55 $102 Unrealized losses on interest rate derivatives46 54 Fuel cost adjustment receivable9 35 Total current regulatory assets110 191 Non-current regulatory assets  Non-nuclear decommissioning costs6,202 6,187 Retirement benefit plans deferred costs1,959 1,979 Nuclear decommissioning costs440 362 Unrealized losses on interest rate derivatives282 447 Environmental compliance and remediation costs215 215 Unrealized losses on commodity derivatives32 64 Other non-current regulatory assets157 154 Total non-current regulatory assets9,287 9,408 Total regulatory assets$9,397 $9,599 Current regulatory liabilities  Fuel cost adjustment tax equivalents$169 $169 Unrealized gains on commodity derivatives17 5 Total current regulatory liabilities186 174 Non-current regulatory liabilities  Retirement benefit plans deferred credits77 81 Unrealized gains on commodity derivatives1 2 Total non-current regulatory liabilities78 83 Total regulatory liabilities$264 $257 

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9.  Variable Interest Entities 

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct