Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 102

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 102
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A's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant.  The cumulative impact approximates $176 million of additional depreciation since January 2023, related to this decision.  In addition, TVA's decision to retire the nine units at Kingston is estimated to result in approximately $9 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant.  The cumulative impact approximates $54 million of additional depreciation since April 2024 related to this decision.TVA also recognized $15 million, $15 million, and $14 million in Operating and maintenance expense related to additional inventory reserves for the coal-fired fleet, including Kingston, Cumberland, and Bull Run Fossil Plant, for the years ended September 30, 2025, 2024, and 2023, respectively.

9.  Leases

    The following table provides information regarding the presentation of leases on the Consolidated Balance Sheets:Amounts Recognized on TVA's Consolidated Balance SheetsAt September 30(in millions)20252024Assets  OperatingOperating lease assets, net of amortization$113 $149   FinanceFinance leases663 729 Total lease assets$776 $878 LiabilitiesCurrent  OperatingAccounts payable and accrued liabilities$46 $63   FinanceAccounts payable and accrued liabilities86 80 Non-current  OperatingOther long-term liabilities63 88   FinanceFinance lease liabilities640 700 Total lease liabilities$835 $931 

99

    TVA's leases consist primarily of railcars, equipment, real estate/land, power generating facilities, and gas pipelines.  TVA's leases have various terms and expiration dates remaining from less than one year to 21 years.  The components of lease costs were as follows:Lease CostsFor the years ended September 30(in millions)202520242023Operating lease costs(1)$73 $77 $69 Variable lease costs(1)(5)337 258 134 Short-term lease costs(1)15 10 18 Finance lease costsAmortization of lease assets(2)91 79 57 Interest on lease liabilities(3)(4)46 37 43 Total finance lease costs137 116 100      Total lease