Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 218

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 218
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$59 $102 Unrealized losses on interest rate derivatives57 54 Fuel cost adjustment receivable— 35 Other current regulatory assets11 — Total current regulatory assets127 191 Non-current regulatory assets  Non-nuclear decommissioning costs5,563 6,187 Retirement benefit plans deferred costs1,531 1,979 Unrealized losses on interest rate derivatives316 447 Environmental compliance and remediation costs308 215 Nuclear decommissioning costs149 362 Unrealized losses on commodity contract derivatives12 64 Other non-current regulatory assets168 154 Total non-current regulatory assets8,047 9,408 Total regulatory assets$8,174 $9,599 Current regulatory liabilities  Fuel cost adjustment tax equivalents$203 $169 Unrealized gains on commodity contract derivatives14 5 Fuel cost adjustment payable11 — Total current regulatory liabilities228 174 Non-current regulatory liabilities  Retirement benefit plans deferred credits131 81 Unrealized gains on commodity contract derivatives10 2 Total non-current regulatory liabilities141 83 Total regulatory liabilities$369 $257 Unrealized Gains (Losses) on Commodity Contract Derivatives.  TVA enters into certain commodity contract derivatives for natural gas that require the physical delivery of the contracted quantity.  Unrealized gains (losses) on natural gas purchase contracts, included as part of unrealized gains (losses) on commodity contract derivatives, relate to the mark-to-market ("MtM") valuation of natural gas purchase contracts.  The natural gas purchase contracts qualify as commodity contract derivatives but do not qualify for cash flow hedge accounting treatment.  As a result, TVA recognizes the changes in the market value of these commodity contract derivatives as a regulatory liability or asset.  This treatment reflects TVA's ability and intent to recover the cost of these commodity contract derivatives on a settlement basis for ratemaking purposes through the fuel cost adjustment.  TVA recognizes the actual cost of fuel received under these contracts in fuel and purchased power expense at the time the fuel is used to generate electricity.  These contracts expire at various times through October 2035.  Unrealized gains and losses on 

104

contracts with a maturity of less than one year are included as a current regulatory asset or liability on TVA's Consolidated Balance Sheets.  See Note 16 — Risk Management Activities and Der