Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 409

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 409
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 estimates and a decrease related to CCR units that have received approval for closure from state regulators which resulted in a change in closure liabilities due to updated cost estimates based on the approved closure plans.  In addition, closure liabilities at Paradise Fossil Plant decreased by $34 million based on scope changes, new vendor bids, and updated cost estimates for activities associated with final closure and $27 million due to identified changes in the projected timing of certain asset retirement activities.  TVA completed a study of its non-nuclear plant decommissioning obligations in September 2025, resulting in a decrease of $27 million.

Revisions in non-nuclear estimates increased the liability balance by $292 million for the year ended September 30, 2024. The increase was primarily attributable to a change in closure liabilities of $231 million at Gallatin Fossil Plant based on scope changes, new vendor bids, and updated cost estimates for activities associated with final closure and $76 million at Cumberland based on scope changes to the interim closure plan and updated cost estimates for activities associated with final closure. Additionally, TVA completed a study of its CCR post-closure care obligations in September 2024, which resulted in an increase of $32 million as a result of expected cost increases.  In September 2024, TVA decreased its liability for legacy CCR areas by $38 million as a result of revised acreage assumptions for areas covered by the Legacy CCR Rule. 

    Revisions in nuclear estimates decreased the liability balance by $160 million for the year ended September 30, 2024.  The decrease was primarily attributable to an estimate revision of $164 million following the filing of a subsequent license

renewal ("SLR") application with the Nuclear Regulatory Commission ("NRC") for Browns Ferry Nuclear Plant ("Browns Ferry").

If approved, the SLR will allow for an additional 20 years of operations for each of Browns Ferry's three units, resulting in a total

operating life of 80 years.

Additionally, during the years ended September 30, 2025 and 2024, both the nuclear and non-nuclear liabilities were increased by periodic accretion, partially offset by settlements related to retirement projects that were conducted during the respective periods.  The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During 2025, 2024, and 2023, $220 million, $188 million, and $188 million, respectively