Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 222

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 3
Chunk 222
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 the end of CY 2026 and CY 2028.  In April 2024, TVA issued its Record of Decision to retire the nine coal-fired units at Kingston Fossil Plant ("Kingston") by CY 2027.  In addition, TVA is evaluating the impact of retiring the balance of the coal-fired fleet by 2035, and that evaluation includes environmental reviews, public input, and TVA Board of Directors ("TVA Board") approval.

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Financial ImpactTVA's policy is to adjust depreciation rates to reflect the most current assumptions, ensuring units will be fully depreciated by the applicable retirement dates.  TVA's decision to retire the two units at Cumberland is estimated to result in approximately $16 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant.  The cumulative impact approximates $128 million of additional depreciation since January 2023, related to this decision.  In addition, TVA's decision to retire the nine units at Kingston is estimated to result in approximately $9 million of additional depreciation quarterly, which does not include any potential impact from additions or retirements to net completed plant. The cumulative impact approximates $27 million of additional depreciation since April 2024, related to this decision.

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