Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 49

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 15
Chunk 49
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 principal or interest on Bonds.  TVA's Bonds consist of power bonds and discount notes.  Power bonds have maturities of between one and 50 years.  At March 31, 2025, the average maturity of long-term power bonds was 14.47 years, and the weighted average interest rate was 4.72 percent.  Discount notes have maturities of less than one year.  Power bonds and discount notes have a first priority and equal claim of payment out of net power proceeds.  Net power proceeds are defined as the remainder of TVA's gross power revenues after deducting the costs of operating, maintaining, and administering its power properties and tax equivalents, but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds from the sale or other disposition of any power facility or interest therein.  In addition to power bonds and discount notes, TVA had long-term debt associated with certain VIEs outstanding at March 31, 2025.  See Lease Financings below, Note 10 — Variable Interest Entities, and Note 13 — Debt and Other Obligations for additional information. 

The following table provides additional information regarding TVA's short-term borrowings:

Short-Term Borrowings(in millions) At March 31, 2025Three Months Ended March 31, 2025Six Months Ended March 31, 2025At March 31, 2024Three Months Ended March 31, 2024Six Months Ended March 31, 2024Gross Amount Outstanding (at End of Period) or Average Gross Amount Outstanding (During Period)Discount notes$351$683$760$820$871$697Maximum Month-End Gross Amount Outstanding (During Period)Discount notesN/A$1,359$1,541N/A$1,106$1,106Weighted Average Interest RateDiscount notes4.25%4.16%4.39%5.28%5.33%5.36%

Lease Financings.  TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required to account for these VIEs on a consolidated basis.  See Note 10 — Variable Interest Entities. 

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