Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 411

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 5
Chunk 411
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 to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates.  TVA'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 $160 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 $45 million of additional depreciation since April 2024, related to this decision.TVA also recognized $12 million and $11 million in operating and maintenance expense during the nine months ended June 30, 2025 and 2024, respectively, related to additional inventory reserves and write-offs related to TVA's coal-fired fleet, including Kingston and Cumberland.  Of these amounts, $4 million was recognized during both the three months ended June 30, 2025 and 2024.

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

8.  Other Long-Term Assets 

The table below summarizes the types and amounts of TVA's other long-term assets:Other Long-Term Assets(in millions)At June 30, 2025At September 30, 2024Loans and other long-term receivables, net$111 $84 Cloud assets98 35 Prepaid long-term service agreements68 62 Prepaid capital assets67 29 EnergyRight® receivables, net44 44 Commodity contract derivative assets17 2 Other85 88 Total other long-term assets$490 $344 Loans and Other Long-Term Receivables.  At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 million and $21 million, respectively.  Loans receivables are reported net of allowances for uncollectible accounts.  See Note 1 — Summary of Significant Accounting Policies — Allowance for Uncollectible Accounts.The allowance components, which consist of