Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 222

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 222
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 Hedging Program(1)At March 31, 2025At September 30, 2024Number of ContractsNotional AmountFair Value (MtM)(in millions)Number of ContractsNotional AmountFair Value (MtM)(in millions)Natural gas swap contracts161244 million mmBtu$95 126230 million mmBtu$(161)Note(1)  Fair value amounts presented are based on the net commodity position with the counterparty.  Notional amounts disclosed represent the net value of contractual amounts.TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity. 

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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

Offsetting of Derivative Assets and LiabilitiesThe amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:Derivative Assets and Liabilities(1)(in millions) At March 31, 2025At September 30, 2024AssetsCommodity contract derivatives$10 $7 Commodity derivatives under the FHP(2)106 — Total derivatives subject to master netting or similar arrangement$116 $7 LiabilitiesCurrency swaps$139 $116 Interest rate swaps(3)707 840 Commodity contract derivatives 5 5 Commodity derivatives under the FHP(2)11 161 Total derivatives subject to master netting or similar arrangement$862 $1,122  Notes(1)  Offsetting amounts include counterparty netting of derivative contracts.  Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either March 31, 2025, or September 30, 2024. (2)  At March 31, 2025, the gross derivative asset and gross derivative liability were $122 million and $27 million, respectively, with offsetting amounts for each totaling $16 million.  At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.(3)  Letters of credit of $465 million and $535 million were posted as