Company: TVC
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001376986-25-000011
Chunk: 287

Company: Tennessee Valley Authority
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 5
Chunk 287
---
Nuclear decommissioning costs440 362 Unrealized losses on interest rate derivatives282 447 Environmental compliance and remediation costs215 215 Unrealized losses on commodity derivatives32 64 Other non-current regulatory assets157 154 Total non-current regulatory assets9,287 9,408 Total regulatory assets$9,397 $9,599 Current regulatory liabilities  Fuel cost adjustment tax equivalents$169 $169 Unrealized gains on commodity derivatives17 5 Total current regulatory liabilities186 174 Non-current regulatory liabilities  Retirement benefit plans deferred credits77 81 Unrealized gains on commodity derivatives1 2 Total non-current regulatory liabilities78 83 Total regulatory liabilities$264 $257 

17

9.  Variable Interest Entities 

A variable interest entity ("VIE") is an entity that either (i) has insufficient equity to permit the entity to finance its activities without additional subordinated financial support or (ii) has equity investors who lack the characteristics of owning a controlling financial interest. When TVA determines that it has a variable interest in a VIE, a qualitative evaluation is performed to assess which interest holders have the power to direct the activities that most significantly impact the economic performance of the entity and have the obligation to absorb losses or receive benefits that could be significant to the entity.  The evaluation considers the purpose and design of the business, the risks that the business was designed to create and pass along to other entities, the activities of the business that can be directed and which party can direct them, and the expected relative impact of those activities on the economic performance of the business through its life.  TVA has the power to direct the activities of an entity when it has the ability to make key operating and financing decisions, including, but not limited to, capital investment and the issuance of debt. Based on the evaluation of these criteria, TVA has determined it is the primary beneficiary of certain entities and as such is required to account for the VIEs on a consolidated basis.John Sevier VIEsIn 2012, TVA entered into a $1.0 billion construction management agreement and lease financing arrangement with John Sevier Combined Cycle Generation LLC ("JSCCG") for the completion and lease by TVA of the John Sevier Combined Cycle Facility ("John Sevier CCF").  JSCCG is a special single-purpose limited liability company formed in January 2012 to finance the John Sevier CCF through