Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 244

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 244
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20252024Interest rate swapsTo fix short-term debt variable rate to a fixed rate (interest rate risk)Mark-to-market gains and losses are recorded as regulatory  liabilities and assets, respectivelyRealized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow$45 $(31)Commodity derivativesunder the FHPTo protect against fluctuations in market prices of purchased commodities (price risk)Mark-to-market gains and losses are recorded as regulatory  liabilities and assets, respectivelyRealized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)(93)(295)Notes(1)  All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory liabilities and assets.  As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the years ended September 30, 2025 and 2024. (2)  Of the amount recognized in 2025, $77 million and $16 million were reported in Fuel expense and Purchased power expense, respectively.  Of the amount recognized in 2024, $245 million and $50 million were reported in Fuel expense and Purchased power expense, respectively.

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Fair Values of TVA DerivativesAt September 30(in millions) 20252024Derivatives That Receive Hedge Accounting Treatment: BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationCurrency swaps    £250 million Sterling$(47)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(43)$(49)Accounts payable and accrued liabilities $(4); Other long-term liabilities $(45)£150 million Sterling(68)Accounts payable and accrued liabilities $(3); Other long-term liabilities $(65)(67)Accounts payable and accrued liabilities $(3); Other long-term liabilities $(64)Derivatives That Do Not Receive Hedge Accounting Treatment: BalanceBalance Sheet PresentationBalanceBalance Sheet PresentationInterest rate swaps    $1.0 billion notional$(526)Accounts payable and accrued liabilities $(13); Accrued interest $(28); Other long-term liabilities $(485)$(622)Accounts payable and accrued liabilities $(10), Accrued interest $(26);Other long-term liabilities$(586)$476 million notional(172)Accounts payable and accrued liabilities $(5); Accrued interest $(