Asset Retirement Obligations

6 Months Ended

Mar. 31, 2012

Asset Retirement Obligation Disclosure [Abstract]

During the six months ended March 31, 2012, TVA's total ARO liability increased $77 million. The increase in the liability resulted from accretion and a change in estimate. These items were partially offset by ash area settlement projects that were conducted during the six months ended March 31, 2012. The nuclear and non-nuclear accretion were deferred as regulatory assets, and $27 million of the related regulatory assets were amortized into expense since these amounts were collected in rates.



Reconciliation of Asset Retirement Obligation Liability

	Nuclear		Non-nuclear			Total
Balance at September 30, 2011	$	2,091	$	1,047		$	3,138
Settlements (ash storage areas)	—		(12		)	(12		)
Accretion (recorded as regulatory asset)	57		27			84
Change in estimate	—		5			5
Balance at March 31, 2012	$	2,148	$	1,067		$	3,215

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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