Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 14

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 6
Chunk 14
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 year ended September 30, 2025, as compared to the prior year.  This increase was primarily driven by a $97 million increase from higher average balances and rates on long-term debt, and a $51 million increase in interest on other financing leases, primarily driven by the lease financing arrangement with Johnsonville Aeroderivative Combustion Turbine Generation LLC ("JACTG").  This increase was partially offset by an $18 million decrease in interest on short-term debt primarily due to lower average balances and rates.

Other Income, Net

Other income, net increased $21 million for the year ended September 30, 2025, as compared to the prior year.  This increase was driven by increases in external services primarily due to additional transmission projects as a result of economic 

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development and higher interest income on cash investments due to a higher balance of cash held during the year, partially offset by lower short-term rates earned on that cash. 

Other Net Periodic Benefit Cost

    Other net periodic benefit cost increased $7 million for the year ended September 30, 2025, as compared to the prior year.  The increase is primarily due to the decreases in the discount rates used to measure net periodic benefit cost for the year ended September 30, 2025, as compared to the prior year.  Other net periodic benefit cost is subject to significant economic assumptions, such as changes in the discount rate, COLA, and the rate of return on plan assets, that can materially impact TVA.  See Note 21 — Benefit Plans.

Liquidity and Capital Resources

Sources of Liquidity

    TVA depends on various sources of liquidity to meet cash needs and contingencies.  TVA's primary sources of liquidity are cash from operations and proceeds from the issuance of short-term debt in the form of discount notes, along with periodic issuances of long-term debt.  TVA's balance of short-term debt typically changes frequently as TVA issues discount notes to meet short-term cash needs and pay scheduled maturities of discount notes and long-term debt.  TVA had $1.4 billion of power bonds mature in November 2025.  TVA's next significant power bond maturity is $1.0 billion in February 2027.  The periodic amounts of short-term debt issued are determined by near-term expectations for cash receipts, cash expenditures, and funding needs, while seeking to maintain a target range of cash and cash equivalents on hand.  TVA may