Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 65

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 15
Chunk 65
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") on November 15, 2024, and TVA submitted the initial draft of the Bull Run CARA Plan to TDEC in January 2025.  TDEC approved the EAR for Johnsonville Fossil Plant ("Johnsonville") on March 31, 2025, and TVA submitted the initial draft of the Johnsonville CARA Plan to TDEC in May 2025.  In July 2025, TDEC approved the final CARA plan for John Sevier Fossil Plant.  See Part I, Item I, Business — Environmental Matters — Cleanup of Solid and Hazardous Wastes — Coal Combustion Residuals in the Annual Report. 

On July 22, 2025, EPA issued a direct final rule that extends deadlines for CCR management unit ("CCRMU") requirements.  The rule allows the two parts of the CCRMU facility evaluation reports to be prepared concurrently so long as both reports are submitted no later than February 8, 2027.  In addition, the rule extends the deadline for owners or operators of CCRMU to comply with the groundwater monitoring provisions by 15 months, to no later than August 8, 2029.  Since the facility evaluation reports and groundwater monitoring requirements are prerequisites for other CCRMU requirements, the rule also makes conforming changes to the remaining CCRMU compliance deadlines.  TVA is still evaluating the rule and its potential impact on TVA's operations.  See Part I, Item I, Business — Environmental Matters — Cleanup of Solid and Hazardous Wastes — Coal Combustion Residuals in the Annual Report.

Legal Proceedings

From time to time, TVA is party to or otherwise involved in lawsuits, claims, proceedings, investigations, and other legal matters ("Legal Proceedings") that have arisen in the ordinary course of conducting its activities.  As of June 30, 2025, TVA had accrued $10 million with respect to Legal Proceedings.  No assurance can be given that TVA will not be subject to significant additional claims and liabilities.  If actual liabilities significantly exceed the estimates made, TVA's results of operations, liquidity, and financial condition could be materially adversely affected.

For a discussion of certain current material Legal Proceedings, see Note 21 — Contingencies and Legal Proceedings — Legal Proceedings, which discussions are incorporated into this Part I, Item 2, Management's Discussion and Analysis of Financial Condition and Results of Operations.

Critical Accounting Estimates

The preparation of financial statements requires