Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 347

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 7
Chunk 347
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7.  Other Long-Term Assets 

The table below summarizes the types and amounts of TVA's other long-term assets:Other Long-Term Assets(in millions)At December 31, 2024At September 30, 2024Loans and other long-term receivables, net$85 $84 Cloud assets56 35 Prepaid capital assets55 29 Prepaid long-term service agreements54 62 EnergyRight® receivables, net44 44 Commodity contract derivative assets1 2 Other79 88 Total other long-term assets$374 $344 Loans and Other Long-Term Receivables.  At December 31, 2024, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $9 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 Components(in millions)At December 31, 2024At September 30, 2024EnergyRight® loan reserve$1 $1 Economic development loan specific loan reserve1 1 Total allowance for loan losses$2 $2 Cloud Assets.  At December 31, 2024, and September 30, 2024, the carrying amount of the cloud assets reported in Other current assets was $8 million and $13 million, respectively.Prepaid Long-Term Service Agreements.  At December 31, 2024, and September 30, 2024, prepayments of $13 million and $7 million, respectively, were recorded in Other current assets.EnergyRight® Receivables.  In association with the EnergyRight® program, TVA's local power company customers ("LPCs") offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA