Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 215

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 1
Chunk 215
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30, 2025(in millions)Operating leases2026$50 202735 202819 20294 20302 Thereafter6 Minimum annual payments116 Less: present value discount(7)Operating present value of net minimum lease payments$109 Finance leases2026$144 2027142 2028137 2029134 2030133    Thereafter340 Minimum annual payments1,030 Less: amount representing interest(304)Finance present value of net minimum lease payments$726 TVA has entered into three PPAs with renewable resource providers for solar generation and rights to charge and discharge battery energy storage systems.  The systems are considered a lease component in these agreements.  These PPAs have terms of 15 - 20 years and are expected to commence between January 2026 and December 2028.  Total capacity payments related to these batteries over the term of these PPAs are expected to total $862 million.

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10.  Other Long-Term Assets 

The table below summarizes the types and amounts of TVA's other long-term assets:Other Long-Term Assets At September 30(in millions) 20252024Cloud assets$114 $35 Prepaid long-term service agreements89 62 Loans and other long-term receivables, net83 84 Prepaid capital assets81 29 EnergyRight® receivables, net45 44 Commodity contract derivative assets10 2 Other84 88 Total other long-term assets$506 $344 Cloud Assets.  TVA has capitalized the implementation costs of hosting arrangements that are considered service contracts as cloud assets.  The cloud assets are amortized over the non-cancellable terms of the hosting arrangement, including renewal periods that are reasonably certain to be exercised.  The current and long-term portions of the cloud assets are reported in Other current assets and Other long-term assets, respectively, on TVA’s Consolidated Balance Sheets.  Amortization of the cloud asset is recognized in Operating and maintenance expense, consistent with the classification of the related hosting fees.  At September 30, 2025, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $3 million and $13 million, respectively.  For the years ended September 30, 2025, 2024, and 2023, TVA amortized $14 million, $15 million, and