Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 403

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 403
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angementIn 2023, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Hitachi Nuclear Energy ("GEH") entered into a multi-party collaborative arrangement to advance the global deployment of the GEH BWRX-300 small modular reactor.  GEH is responsible for standard design development.  Under the agreement, TVA will contribute up to $93 million for design costs incurred by GEH through 2026.  At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits.Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred.  TVA recorded $3 million and $8 million of expenses related to this agreement for the three months ended March 31, 2025 and 2024, respectively.  TVA recorded $10 million and $17 million of expenses related to this agreement for the six months ended March 31, 2025 and 2024, respectively.  TVA also had a $6 million letter of credit posted under this arrangement at March 31, 2025.

 21.  Contingencies and Legal Proceedings 

Contingencies Nuclear 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.  This financial protection consists of two layers of coverage.  The primary level is private insurance underwritten by American Nuclear Insurers and provides public liability insurance coverage of $500 million for each nuclear power plant licensed to operate.  If this amount is not sufficient to cover claims arising from a nuclear incident, the second level, Secondary Financial Protection, applies. Within the Secondary Financial Protection level, the licensee of each nuclear reactor has a contingent obligation to pay a retrospective premium, equal to its proportionate share of the loss in excess of the primary level, regardless of proximity to the incident of fault, up to a maximum of approximately $166 million per reactor per incident.  With TVA's seven reactors, the maximum total contingent obligation per incident is $1.2 billion.  This retrospective premium is payable at a maximum rate currently set at approximately $25 million per year per nuclear incident per reactor.  Currently,