Debt

Debt Outstanding

The TVA Act authorizes TVA to issue Bonds in an amount not to exceed $30.0 billion outstanding at any time. Debt outstanding at December 31, 2011, and September 30, 2011, including the effect of translations related to Bonds denominated in foreign currencies, consisted of the following:



Debt Outstanding
	At December 31, 2011			At September 30, 2011
Short-term debt
Discount notes (net of discount)	$	785		$	482
Current maturities of long-term debt	1,558			1,537
Total short-term debt, net	2,343			2,019
Long-term debt
Long-term outstanding power bonds	22,604			22,647
Unamortized discount, premiums and other	(235		)	(235		)
Total long-term debt, net	22,369			22,412
Total outstanding debt	$	24,712		$	24,431

Debt Securities Activity

The table below summarizes TVA’s long-term Bond activity for the period from October 1, 2011, to December 31, 2011.



	Date	Amount		Interest Rate
Redemptions/Maturities:
2009 Series A	November 2011	$	2	2.25%
2009 Series B	December 2011	1		3.77%
electronotes^®	Three Months Ended December 31, 2011	16		4.82%
Total		$	19

Credit Facility Agreements. TVA and the U.S. Treasury have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility matures on September 30, 2012, and is expected to be renewed. This arrangement is pursuant to the TVA Act. TVA plans to use the U.S. Treasury credit facility as a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no borrowings outstanding under the facility at December 31, 2011.

TVA also has funding available in the form of three long-term revolving credit facilities totaling $2.5 billion. Both the $0.5 billion and one of the $1.0 billion credit facilities mature on January 14, 2014, and the other $1.0 billion credit facility matures on May 11, 2014. The credit facilities also accommodate the issuance of letters of credit. The interest rate on any borrowing under these facilities is variable based on market factors and the rating of TVA's senior unsecured long-term non-credit enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.5 billion which TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, fluctuates depending on the rating of TVA's senior unsecured long-term non-credit enhanced debt. At December 31, 2011, and September 30, 2011, there were $756 million and $575 million, respectively, of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 12 — Other Derivative Instruments — Collateral.