Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 55

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 55
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 U.S. and non-U.S. equities, and 36 percent fixed income securities.  The SERP plan assets are presently invested to achieve a return in line with overall equity and debt market performance.  At both September 30, 2025 and 2024, an immediate 10 percent decrease in the value of the SERP investments would have reduced the value of the investments by $10 million.

    Deferred Compensation Plan.  The DCP is designed to provide participants with the ability to defer compensation to future periods.  The plan assists in the recruitment of top executive talent for TVA.  As in other corporations, deferred compensation can be an integral part of a total compensation package.  Assets currently include deferral balances.  The default return on investment of the accounts is interest calculated based on the composite rate of all marketable U.S. Treasury issues.  Executives may alternatively choose to have their balances adjusted based on the return of certain mutual funds.  At both September 30, 2025 and 2024, an immediate 10 percent decrease in the value of the deferred compensation accounts would have reduced the value of the accounts by $2 million.    

Restoration Plan.  The RP is a non-qualified excess 401(k) plan designed to allow certain eligible employees whose contributions to the 401(k) plan are limited by IRS rules to save additional amounts for retirement and receive non-elective and matching employer contributions.  The plan is designed to provide a competitive level of retirement benefits and assist in the recruitment of executive talent for TVA.  The default return on investment of the accounts is interest calculated based on the composite rate of all marketable U.S. Treasury issues.  Executives may alternatively choose to have their balances adjusted based on the return of certain mutual funds.  At both September 30, 2025 and 2024, an immediate 10 percent decrease in the value of the RP accounts would have reduced the value of the accounts by less than $1 million. 

Interest Rate Risk

TVA's interest rate risk is related primarily to its short-term investments, short-term debt, long-term debt, and interest rate derivatives.

Investments.  At September 30, 2025, TVA had $1.6 billion of cash and cash equivalents, and the average balance of cash and cash equivalents for 2025 was $898 million.  The average interest rate that TVA received on its short-term investments during 2025 was