Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 395

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 5
Chunk 395
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A's financial instruments not recorded at fair value at March 31, 2025, and September 30, 2024, were as follows:Estimated Values of Financial Instruments Not Recorded at Fair Value(in millions) At March 31, 2025At September 30, 2024 Valuation ClassificationCarryingAmountFairValueCarryingAmountFairValueEnergyRight® receivables, net (including current portion)Level 2$56 $56 $56 $56 Loans and other long-term receivables, net (including current portion)Level 2104 97 105 99 EnergyRight® financing obligations (including current portion)Level 265 73 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 220,101 20,115 18,889 19,416 Long-term debt of VIEs, net (including current maturities)Level 21,703 1,702 934 966 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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Table of Contents                               Draft 4.0                    04/24/2025 5:00 PM

16.  Revenue 

Revenue from Sales of Electricity TVA'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 to their end-use customers.  In addition, TVA sells electricity to directly served industrial companies, federal agencies, and others.LPC salesApproximately 92 percent of TVA's Revenue from sales of electricity for both the three and six months ended March 31