Company: TVC
Filing Date: 2025-05-01
Form Type: 10-Q
Source: 0001376986-25-000029
Chunk: 299

Company: Tennessee Valley Authority
Filing Date: 2025-05-01
Form: 10-Q
Item: Part II, Item 2
Chunk 299
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ulated other comprehensive income (loss) ("AOCI") to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.Summary of Derivative Instruments That Do Not Receive Hedge Accounting TreatmentAmount of Gain (Loss) Recognized in Income on Derivatives(1)(in millions)Three Months Ended March 31Six Months Ended March 31Derivative TypeObjective of DerivativeAccounting for Derivative Instrument2025202420252024Interest rate swapsTo fix short-term debt variable rate to a fixed rate (interest rate risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectivelyRealized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow$(12)$(7)$(22)$(15)Commodity derivativesunder the FHPTo protect against fluctuations in market prices of purchased commodities (price risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectivelyRealized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)(14)(101)(51)(155)Notes(1)  All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities.  As such, there were no related gains (losses) recognized in income for these unrealized gains 

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(losses) for the three and six months ended March 31, 2025 and for the three and six months ended March 31, 2024.(2)  Of the amount recognized for the three months ended March 31, 2025, $12 million and $2 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the three months ended March 31, 2024, $83 million and $18 million were reported in Fuel expense and Purchased power expense, respectively.  Of the amount recognized for the six months ended March 31, 2025, $42 million and $9 million were reported in Fuel expense and Purchased power expense, respectively, and of the amount recognized for the six months ended March 31, 2024, $