Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 308

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 2
Chunk 308
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 material. 

Debt Securities.  TVA's Bonds are not obligations of the U.S., and the U.S. does not guarantee the payments of principal or interest on Bonds.  TVA's Bonds consist of power bonds and discount notes.  Power bonds have maturities of between one and 50 years.  At June 30, 2025, the average maturity of long-term power bonds was 14.62 years, and the weighted average interest rate was 4.92 percent.  Discount notes have maturities of less than one year.  Power bonds and discount notes have a first priority and equal claim of payment out of net power proceeds.  Net power proceeds are defined as the remainder of TVA's gross power revenues after deducting the costs of operating, maintaining, and administering its power properties and tax equivalents, but before deducting depreciation accruals or other charges representing the amortization of capital expenditures, plus the net proceeds from the sale or other disposition of any power facility or interest therein.  In addition to power bonds and discount notes, TVA had long-term debt associated with certain VIEs outstanding at June 30, 2025.  See Lease Financings below, Note 10 — Variable Interest Entities, and Note 13 — Debt and Other Obligations for additional information. 

The following table provides additional information regarding TVA's short-term borrowings:

Short-Term Borrowings(in millions) At June 30, 2025Three Months Ended June 30, 2025Nine Months Ended June 30, 2025At June 30, 2024Three Months Ended June 30, 2024Nine Months Ended June 30, 2024Gross Amount Outstanding (at End of Period) or Average Gross Amount Outstanding (During Period)Discount notes$319$394$638$1,114$965$786Maximum Month-End Gross Amount Outstanding (During Period)Discount notesN/A$461$1,541N/A$1,153$1,153Weighted Average Interest RateDiscount notes4.20%4.37%4.38%5.27%5.39%5.37%

TVA's rated senior unsecured Bonds are currently rated Aa1, AA+, and AA+, by Moody's Investors Service, Inc. ("Moody's"), Fitch Ratings, Inc. ("Fitch"), and S&P Global Ratings ("S&P"), respectively.  TVA's short