Company: TVC
Filing Date: 2025-07-29
Form Type: 10-Q
Source: 0001376986-25-000044
Chunk: 328

Company: Tennessee Valley Authority
Filing Date: 2025-07-29
Form: 10-Q
Item: Part II, Item 3
Chunk 328
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 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 $160 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 $45 million of additional depreciation since April 2024, related to this decision.TVA also recognized $12 million and $11 million in operating and maintenance expense during the nine months ended June 30, 2025 and 2024, respectively, related to additional inventory reserves and write-offs related to TVA's coal-fired fleet, including Kingston and Cumberland.  Of these amounts, $4 million was recognized during both the three months ended June 30, 2025 and 2024.

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Table of Contents                               Draft 4.0                    07/24/2025 5:00 PM

8.  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 June 30, 2025At September 30, 2024Loans and other long-term receivables, net$111 $84 Cloud assets98 35 Prepaid long-term service agreements68 62 Prepaid capital assets67 29 EnergyRight® receivables, net44 44 Commodity contract derivative assets17 2 Other85 88 Total other long-term assets$490 $344 Loans and Other Long-Term Receivables.  At June 30, 2025, and September 30, 2024, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $3 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