Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 435

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 7
Chunk 435
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abilities.    

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Other Financial Instruments Not Recorded at Fair ValueTVA uses the methods and assumptions described below to estimate the fair value of each significant class of financial instruments.  The fair value of the financial instruments held at September 30, 2025 and 2024, may not be representative of the actual gains or losses that will be recorded when these instruments mature or are called or presented for early redemption.  The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2025 and 2024, were as follows:Estimated Values of Financial Instruments Not Recorded at Fair Value(in millions) At September 30, 2025At September 30, 2024 Valuation ClassificationCarryingAmountFairValueCarryingAmountFairValueEnergyRight® receivables, net (including current portion)Level 2$57 $57 $56 $56 Loans and other long-term receivables, net (including current portion)Level 286 80 105 99 EnergyRight® financing obligations (including current portion)Level 266 74 66 74 Membership interests of VIEs subject to mandatory redemption (including current portion)Level 216 18 17 19 Long-term outstanding power bonds, net (including current maturities)Level 221,831 21,967 18,889 19,416 Long-term debt of VIEs, net (including current maturities)Level 21,681 1,696 934 966 The carrying values of Cash and cash equivalents, Restricted cash and cash equivalents, Accounts receivable, net, and Short-term debt, net approximate their fair values.The fair value for loans and other long-term receivables is estimated by determining the present value of future cash flows using a discount rate equal to lending rates for similar loans made to borrowers with similar credit ratings and for similar remaining maturities, where applicable.  The fair value of long-term debt and membership interests of VIEs subject to mandatory redemption is estimated by determining the present value of future cash flows using current market rates for similar obligations, giving effect to credit ratings and remaining maturities.

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18.  Revenue Revenue from Sales of ElectricityTVA's revenue from contracts with customers is primarily derived from the generation and sale of electricity to its customers and is included in Revenue from sales of electricity on the Consolidated Statements of Operations.  Electricity is sold primarily to LPCs for distribution