Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 231

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 231
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.Long-Term Deferred Revenue.  At December 31, 2024, and September 30, 2024, the current amount of deferred revenue recorded in Accounts payable and accrued liabilities was $27 million and $28 million, respectively.Long-Term Deferred Compensation.  At December 31, 2024, and September 30, 2024, the current amount of deferred compensation recorded in Accounts payable and accrued liabilities was $33 million and $74 million, respectively.Commodity Contract Derivative Liabilities.  See Note 13 — Risk Management Activities and Derivative Transactions — Derivatives Not Receiving Hedge Accounting Treatment — Commodity Derivatives and — Commodity Derivatives under the FHP for a discussion of TVA's commodity contract derivatives.Advances for Construction.  At December 31, 2024, and September 30, 2024, the current amount of advances for construction recorded in Accounts payable and accrued liabilities was $85 million and $60 million, respectively.

11.  Asset Retirement Obligations

During the three months ended December 31, 2024, TVA's total asset retirement obligations ("ARO") liability increased $16 million as a result of increases from periodic accretion, partially offset by revisions in estimate to non-nuclear asset AROs and settlements related to retirement projects that were conducted during the period.  The nuclear and non-nuclear accretion amounts were deferred as regulatory assets.  During the three months ended December 31, 2024, $55 million of the related regulatory assets were amortized into expense as these amounts were collected in rates.  See Note 8 — Regulatory Assets and Liabilities.  TVA maintains investment trusts to help fund its decommissioning obligations.  See Note 14 — Fair Value Measurements — Investment Funds and Note 20 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.Asset Retirement Obligation Activity(in millions) NuclearNon-nuclearTotalBalance at September 30, 2024$3,814 $6,992 $10,806 (1)Settlements(7)(61)(68)Revisions in estimate (non-cash)— (24)(24)Accretion (recorded as regulatory asset)43 65 108 Balance at December 31, 2024$3,850 $6,972