Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 131

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 131
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redit Facility Agreements  TVA has funding available under four revolving credit facilities totaling $2.7 billion. See the table below for additional information on the four long-term revolving credit facilities. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt.  TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit.  This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt.  At September 30, 2025 and 2024, there were $498 million and $566 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding.  TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps.  See Note 16 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral.  TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the FHP, or for certain transactions with third parties that require TVA to post letters of credit.  The following table provides additional information regarding TVA's funding available under the four revolving credit facilities:Summary of Credit FacilitiesAt September 30, 2025(in millions)Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailabilityMarch 2026$150 $38 $— $112 March 20271,000 135 — 865 February 2028500 215 — 285 September 20301,000 110 — 890      Total$2,650 $498 $— $2,152   TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility.  This credit facility was renewed for 2026 with a maturity date of September 30, 2026.  Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s.  TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and