Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 99

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 99
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 of September 30, 2025; however, the ETP is ongoing as TVA executes the focus areas described above.  The table below summarizes the activity related to severance costs:Severance Cost Liability Activity(in millions)Severance cost liability at September 30, 2024$— Liabilities incurred during the period40 Actual costs paid during the period(29)Severance cost liability at September 30, 2025$11 

96

4.  Accounts Receivable, Net

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:Accounts Receivable, NetAt September 30(in millions) 20252024Power receivables$1,908 $1,683 Other receivables225 118 Allowance for uncollectible accounts(1) (2)(14)— Accounts receivable, net$2,119 $1,801 Note(1)  To determine the allowance for trade receivables, TVA considers historical experience and other currently available information, including events such as customer bankruptcy and/or a customer failing to fulfill payment arrangements by the due date, among other considerations.  See Note 1 — Summary of Significant Accounting Policies —  Allowance for Uncollectible Accounts.  At September 30, 2025, the allowance for uncollectible accounts included $14 million related to one LPC customer.(2)  The allowance for uncollectible accounts was less than $1 million at September 30, 2024.

In addition, the Inflation Reduction Act of 2022 ("IRA") makes credits available to certain tax-exempt entities, including TVA.  Obtaining this funding requires TVA to meet certain requirements, to submit informational returns to the Internal Revenue Service ("IRS"), and to retain adequate books and records to support its filings.  TVA records the credit when there is reasonable assurance that the credit will be received, and TVA complies with all conditions attached to the eligibility of the credit.  The credit is recognized as a reduction of the asset and/or expense based on what the credits are intended to reimburse.  At September 30, 2025, TVA recorded $72 million in Accounts receivable, net, which is classified as Other receivables above, related to these tax credits; $51 million was recorded as a reduction of Net completed plant; $19 million