Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 203

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part I, Item 1
Chunk 203
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 to grow, driving the need for significant future capital investment.  TVA must continue to drive efficiencies and cost savings across the enterprise to provide affordable, reliable electricity, while funding the capital investment needed to meet growing demand.  This effort has evolved into an Enterprise Transformation Program ("ETP") focused on improving financial health, enhancing asset performance, automating processes, optimizing third-party spend through supply chain, and making the workforce more efficient.  As part of these efforts, certain employees are eligible for severance payments.  These amounts are recognized in Operating and maintenance expense on TVA's Consolidated Statement of Operations in the period incurred.  Severance costs that have been incurred but not paid are included in Accounts payable and accrued liabilities on TVA's Consolidated Balance Sheets.  The table below summarizes the activity related to severance costs:Severance Cost Liability Activity(in millions)Severance cost liability at September 30, 2024$— Liabilities incurred during the period40 Actual costs paid during the period(2)Severance cost liability at March 31, 2025$38 

4.  Accounts Receivable, Net 

Accounts receivable primarily consist of amounts due from customers for power sales.  The table below summarizes the types and amounts of TVA's accounts receivable:Accounts Receivable, Net(in millions) At March 31, 2025At September 30, 2024Power receivables$1,604 $1,683 Other receivables131 118 Accounts receivable, net(1)$1,735 $1,801 Note(1)  Allowance for uncollectible accounts was less than $1 million at both March 31, 2025, and September 30, 2024, and therefore is not represented in the table above.

5.  Inventories, Net 

The table below summarizes the types and amounts of TVA's inventories:Inventories, Net(in millions) At March 31, 2025At September 30, 2024Materials and supplies inventory$970 $931 Fuel inventory284 286 Renewable energy certificates/emissions allowance inventory, net9 11 Allowance for inventory obsolescence(81)(73)Inventories, net$1,182 $1,155 

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