Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 502

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 9
Chunk 502
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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

 9.  Regulatory Assets and Liabilities 

TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities.  As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities.  Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates.  Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods.  Components of regulatory assets and regulatory liabilities are summarized in the table below.Regulatory Assets and Liabilities(in millions) At June 30, 2025At September 30, 2024Current regulatory assets  Unrealized losses on commodity derivatives$22 $102 Unrealized losses on interest rate derivatives51 54 Fuel cost adjustment receivable79 35 Total current regulatory assets152 191 Non-current regulatory assets  Non-nuclear decommissioning costs6,135 6,187 Retirement benefit plans deferred costs1,915 1,979 Nuclear decommissioning costs276 362 Unrealized losses on interest rate derivatives321 447 Environmental compliance and remediation costs313 215 Unrealized losses on commodity derivatives8 64 Other non-current regulatory assets169 154 Total non-current regulatory assets9,137 9,408 Total regulatory assets$9,289 $9,599 Current regulatory liabilities  Fuel cost adjustment tax equivalents$189 $169 Unrealized gains on commodity derivatives13 5 Total current regulatory liabilities202 174 Non-current regulatory liabilities  Retirement benefit plans deferred credits68 81 Unrealized gains on commodity derivatives17 2 Total non-current regulatory liabilities85 83 Total regulatory liabilities$287 $257