Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 67

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 67
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 2024. RevenuesTVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services.  For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution.  As a result, revenues from power sales are recorded as electricity is delivered to customers.  In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month.  Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity.  Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements.  Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve.  TVA 

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engages in other arrangements in addition to power sales.  Certain other revenue from activities related to TVA's overall mission is recorded in Other revenue.  Revenues that are not related to the overall mission are recorded in Other income, net.InventoriesCertain Fuel, Materials, and Supplies.  Materials and supplies inventories are valued using an average unit cost method.  A new average cost is computed after each inventory purchase transaction, and inventory issuances are priced at the latest moving weighted average unit cost.  Coal, fuel oil, and natural gas inventories are valued using an average cost method.  A new weighted average cost is computed monthly, and monthly issues are priced accordingly.Renewable Energy Certificates.  TVA accounts for Renewable Energy Certificates ("RECs") using the specific identification cost method.  RECs that are acquired through power purchases are recorded as inventory and charged to purchased power expense when the RECs are subsequently used or sold.  TVA assigns a value to the RECs at the inception of the power purchase arrangement using a relative standalone selling price approach.  RECs created through TVA-owned asset generation are recorded at zero cost.Emission Allowances.  TVA accounts for emission allowances using the specific identification cost method.  Allowances that are acquired through third party purchases are recorded as inventory at cost and charged to operating expense based on tons emitted during the respective compliance periods.  Allowance for Inventory Obsolescence.