Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 120

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 120
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 association with the EnergyRight® program.  The current and long-term portions of the resulting financing obligation are reported in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets.  At both September 30, 2025 and 2024, the carrying amount of the financing obligation reported in Accounts payable and accrued liabilities was $13 million.  See Note 10 — Other Long-Term Assets for information regarding the associated loans receivable.  Long-Term Deferred Revenue.   Long-term deferred revenue represents payments received that exceed services rendered resulting in the deferral of revenue.  This long-term portion represents amounts that will not be recognized within the next 12 months primarily related to fiber and transmission agreements.  The current and long-term portions of the deferral are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA’s Consolidated Balance Sheets. At September 30, 2025 and 2024, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $25 million and $28 million, respectively.Accrued Long-Term Service Agreements.  TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants.  TVA uses the direct expense method of accounting for these arrangements.  TVA accrues for parts when it takes ownership and for contractor services when they are rendered.  Under certain of these agreements, parts received and services rendered exceed payments made.  The current and long-term portions of the resulting obligation are recorded in Accounts payable and accrued liabilities and Other long-term liabilities, respectively, on TVA's Consolidated Balance Sheets.  At September 30, 2025 and 2024, the current amount of accrued long-term service agreements recorded in Accounts payable and accrued liabilities was $17 million and $16 million, respectively.Commodity Contract Derivative Liabilities.  TVA enters into certain derivative contracts for natural gas that require physical delivery of the contracted quantity of the commodity as well as certain financial derivative contracts to hedge exposure to the price of natural gas. See Note 16 — Risk Management Activities and Derivative Transactions  — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Contract Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

14.  Asset Retirement Obligations 

    During the year ended September 30, 2025, TVA's total