Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 200

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 200
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 loss rate for the remaining life of the loan portfolio.The allowance for uncollectible accounts was less than $1 million at both March 31, 2025, and September 30, 2024, for trade accounts receivable.  Additionally, loans receivable of $104 million and $105 million at March 31, 2025, and September 30, 2024, respectively, are included in Accounts receivable, net and Other long-term assets, for the current and long-term portions, respectively.  Loans receivables are reported net of allowances for uncollectible accounts of $2 million at both March 31, 2025, and September 30, 2024.Pre-Commercial Plant OperationsAs part of the process of completing the construction of a generating unit, the electricity produced is used to serve the demands of the electric system.  TVA estimates revenues earned during pre-commercial operations at the fair value of the energy delivered based on TVA's hourly incremental dispatch cost.  Pre-commercial plant operations began on Paradise combustion turbine ("CT") Units 5-7 in the first quarter of 2024, and the units became operational on December 29, 2023.  Estimated revenue of $3 million related to this project was capitalized to offset project costs for the six months ended March 31, 2024, all of which was recognized in the three months ended December 31, 2023.  TVA also capitalized related fuel costs for this project of $3 million for the six months ended March 31, 2024, all of which was recognized in the three months ended December31, 2023.  Pre-commercial plant operations began on Johnsonville Aeroderivative CT Units 21-30 during the six months ended March 31, 2025.  Estimated revenue of $2 million related to this project was capitalized to offset project costs for both the three 

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and six months ended March 31, 2025.  TVA also capitalized related fuel costs for this project of $4 million and $5 million for the three and six months ended March 31, 2025, respectively. Depreciation    TVA accounts for depreciation of its properties using the composite depreciation convention of accounting.  Under the composite method, assets with similar economic characteristics are grouped and depreciated as one asset.