Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 360

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 12
Chunk 360
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 of TVA's senior unsecured, long-term, non-credit-enhanced debt.  At December 31, 2024, and September 30, 2024, there were $500 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 13 — 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. 

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The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:Summary of Long-Term Credit FacilitiesAt December 31, 2024(in millions)Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailabilityMarch 2026$150 $38 $— $112 September 20261,000 68 — 932 March 20271,000 180 — 820 February 2028500 214 — 286 Total$2,650 $500 $— $2,150 TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the 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 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 interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of 12 months or less.  There were no outstanding borrowings under the facility at December 31, 202