Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 177

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 2
Chunk 177
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 Program(1)At December 31, 2024At September 30, 2024Number of ContractsNotional AmountFair Value (MtM)(in millions)Number of ContractsNotional AmountFair Value (MtM)(in millions)Natural gas swap contracts173280 million mmBtu$(75)126230 million mmBtu$(161)Note(1)  Fair value amounts presented are based on the net commodity position with the counterparty.  Notional amounts disclosed represent the net value of contractual amounts.TVA defers all FHP unrealized gains (losses) as regulatory liabilities (assets) and records the realized gains or losses in Fuel expense and Purchased power expense to match the delivery period of the underlying commodity. 

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Offsetting of Derivative Assets and LiabilitiesThe amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:Derivative Assets and Liabilities(1)(in millions) At December 31, 2024At September 30, 2024AssetsCommodity contract derivatives$12 $7 Commodity derivatives under the FHP(2)6 — Total derivatives subject to master netting or similar arrangement$18 $7 LiabilitiesCurrency swaps$136 $116 Interest rate swaps(3)635 840 Commodity contract derivatives 6 5 Commodity derivatives under the FHP(2)81 161 Total derivatives subject to master netting or similar arrangement$858 $1,122  Notes(1)  Offsetting amounts include counterparty netting of derivative contracts.  Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either December 31, 2024, or September 30, 2024. (2)  At December 31, 2024, the gross derivative asset and gross derivative liability were $31 million and $106 million, respectively, with offsetting amounts for each totaling $25 million.  At September 30, 2024, the gross derivative asset and gross derivative liability were $4 million and $165 million, respectively, with offsetting amounts for each totaling $4 million.(3)  Letters of credit of $469 million and $535 million were posted as collateral at December 31, 2024, and September 30, 2024, respectively, to partially secure the liability positions of one of the