Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 289

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 289
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 increase in the discount rate from 3.81 percent in 2024 to 4.16 percent in 2025 and a decrease in overall claims experience.  The DOL billed TVA $25 million for 2025 claims due in October 2025.  TVA estimated claims for 2026 are $24 million.

The decrease in the unpaid obligation at September 30, 2024, compared to the prior year was due primarily to the decrease in overall claims experience offset by inflationary impacts on wage and medical costs and a decrease in the discount rate from 4.59 percent in 2023 to 3.81 percent in 2024.  TVA paid $28 million for 2024 claims to the DOL in October 2024.

The impact of inflation on wages, medical costs, and interest rates on the post-employment obligation depends on factors beyond TVA's knowledge or control, including the effects of supply chain disruptions and geographical tensions.

The current portion which represents unpaid losses and administrative fees due are in Accounts payable and accrued liabilities.  The long-term portion is recognized in Post-retirement and post-employment benefit obligations.

Amounts Recognized on TVA's Consolidated Balance SheetsAt September 30(in millions) 20252024Accounts payable and accrued liabilities$25 $28 Post-retirement and post-employment benefit obligations208 230 

22.  Collaborative ArrangementIn 2023, TVA, Ontario Power Generation, BWRX TCA sp. z.o.o., and GE Vernova Hitachi Nuclear Energy ("GVH") entered into a multi-party collaborative arrangement to advance the global deployment of the GVH BWRX-300 small modular reactor.  GVH is responsible for standard design development.  Under the agreement, TVA will contribute up to $93 million for design costs incurred by GVH through 2026.  At the time feasibility is determined, TVA will have the right to use the design and may receive additional economic benefits.    Payments pursuant to the agreement are recorded as research and development expense, which is reflected as Operating and maintenance expense on TVA's Consolidated Statements of Operations in the period incurred.  TVA recorded $11 million and $41 million of expenses related to this agreement for the years ended September 30, 2025 and 2024, respectively.  TVA also had a $6 million letter of credit posted under this arrangement at September 30, 202