Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 216

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 216
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 $7 million, respectively, as Operating and maintenance expense.Prepaid Long-Term Service Agreements.  TVA has entered into various long-term service agreements for majormaintenance activities at certain of its combined cycle plants.  TVA uses the direct expense method of accounting for thesearrangements.  TVA accrues for parts when it takes ownership and for contractor services when they are rendered.  Undercertain of these agreements, payments made exceed the value of parts received and services rendered.  The current and long-term portions of the resulting prepayments are reported in Other current assets and Other long-term assets, respectively, onTVA's Consolidated Balance Sheets.  At September 30, 2025 and 2024, prepayments of $16 million and $7 million, respectively, were recorded in Other current assets.Loans and Other Long-Term Receivables.  TVA's loans and other long-term receivables primarily consist of economic development loans for qualifying organizations and a receivable for reimbursements to recover the cost of providing long-term, on-site storage for spent nuclear fuel.  The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets.  At September 30, 2025 and 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 a collective allowance and specific loans allowance, are based on the risk characteristics of TVA's loans.  Loans that share similar risk characteristics are evaluated on a collective basis in measuring credit losses, while loans that do not share similar risk characteristics with other loans are evaluated on an individual basis.Allowance ComponentsAt September 30(in millions)20252024EnergyRight® loan reserve$1 $1 Economic development loan specific loan reserve1 1 Total allowance for loan losses$2 $2 Prepaid Capital Assets.  TVA makes prepayments to acquire capital assets.  TVA classifies these prepayments as prepaid capital if the funds are refundable, and TVA can receive a credit.EnergyRight® Receivables.  In association with the EnergyRight® program