Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 98

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 98
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-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets.  At both December 31, 2024, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $12 million.  See Note 10 — Other Long-Term Liabilities for information regarding the associated financing obligation.

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Commodity Contract Derivative Assets.  See Note 13 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.

 8.  Regulatory Assets and Liabilities 

TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities.  As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities.  Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  Components of regulatory assets and regulatory liabilities are summarized in the table below.Regulatory Assets and Liabilities(in millions) At December 31, 2024At September 30, 2024Current regulatory assets  Unrealized losses on commodity derivatives$55 $102 Unrealized losses on interest rate derivatives46 54 Fuel cost adjustment receivable9 35 Total current regulatory assets110 191 Non-current regulatory assets  Non-nuclear decommissioning costs6,202 6,187 Retirement benefit plans deferred costs1,959 1,979 Nuclear decommissioning costs440 362 Unrealized losses on interest rate derivatives282 447 Environmental compliance and remediation costs215 215 Unrealized