Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 472

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 472
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  The periodic amounts of short-term debt issued are determined by near-term expectations for cash receipts, cash expenditures, and funding needs, while seeking to maintain a target range of cash and cash equivalents on hand.  TVA may hold higher cash balances from time to time in response to potential market volatility or other business conditions.  In addition, cash balances may include collateral received from counterparties.

In addition to cash from operations and proceeds from the issuance of short-term and long-term debt, TVA's sources of liquidity include four revolving credit facilities totaling $2.7 billion, a $150 million credit facility with the United States Department of the Treasury ("U.S. Treasury"), and proceeds from other financings.  See Note 13 — Debt and Other Obligations  — Credit Facility Agreements.  The TVA Board authorized TVA to issue power bonds and enter into other financing arrangements in an aggregate amount not to exceed $4.0 billion during 2025.  In the second quarter of 2025, TVA issued $1.25 billion of power bonds maturing in February 2055.  In the third quarter of 2025, TVA issued $1.5 billion of power bonds maturing in May 2035. Other financing arrangements may include, but are not limited to, lease financings, energy prepayments from customers, and other similar agreements.  TVA may also engage in other alternative forms of financing such as sales of receivables, or loans, from time to time. 

The Tennessee Valley Authority Act of 1933, as amended ("TVA Act"), authorizes TVA to issue bonds, notes, or other evidences of indebtedness (collectively, "Bonds") in an amount not to exceed $30.0 billion outstanding at any time.  Bonds outstanding, excluding unamortized discounts and premiums and net exchange gains from foreign currency transactions, at June 30, 2025, were $21.1 billion (including current maturities).  The balance of Bonds outstanding directly affects TVA's capacity to meet operational liquidity needs and to strategically use Bonds to fund certain capital investments as management and the TVA Board may deem desirable.  Other options for financing not subject to the limit on Bonds, including lease financings, could provide supplementary funding if needed.  Currently, TVA expects to utilize a combination of Bonds, other financings, and 

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