Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 213

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 2
Chunk 213
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 or exchanges, if any, will depend on prevailing market conditions, TVA's liquidity requirements, contractual restrictions, and other factors.  The amounts involved may be 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 December 31, 2024, the average maturity of long-term power bonds was 13.71 years, and the weighted average interest rate was 4.69 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 December 31, 2024.  See Lease Financings below, Note 9 — Variable Interest Entities, and Note 12 — Debt and Other Obligations for additional information. 

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

Short-Term Borrowings(in millions) At December 31, 2024Three Months Ended December 31, 2024At December 31, 2023Three Months Ended December 31, 2023Gross Amount Outstanding (at End of Period) or Average Gross Amount Outstanding (During Period)Discount notes$1,359$683$1,043$525Maximum Month-End Gross Amount Outstanding (During Period)Discount notesN/A$1,359N/A$1,043Weighted Average Interest RateDiscount notes4.33%4.68%5.28%5.41%

Lease Financings.  TVA has entered into certain leasing transactions with special purpose entities ("SPEs") to obtain third-party financing for its facilities.  These SPEs are sometimes identified as VIEs of which TVA is determined to be the primary beneficiary.  TVA is required