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Asset Retirement Obligations
 12 Months Ended
Sep. 30, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
Asset Retirement Obligations

During the year ended September 30, 2013, TVA's total ARO liability increased $199 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 year ended September 30, 2013. The nuclear and non-nuclear accretion expenses were deferred as regulatory assets, and $40 million of the related regulatory assets was amortized into expense as this amount was collected in rates. The change in estimate is a result of TVA's biennial update to its nuclear ARO in order to adjust for changes in expected labor factors, burial rates, and fuel expenses, among other factors. This review resulted in a $66 million increase to the nuclear ARO.
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)
—

 
(22
)
 
(22
)
 
Accretion (recorded as regulatory asset)
117

 
55

 
172

 
Additional obligations
—

 
2

 
2

 
Change in estimate
—

 
(1
)
 
(1
)
 
 
 
 
 
 
 
 
Balance at September 30, 2012
$
2,208

 
$
1,081

 
$
3,289

 
 
 
 
 
 
 
 
Settlements (ash storage areas)
—

 
(37
)
 
(37
)
 
Accretion (recorded as regulatory asset)
125

 
45

 
170

 
Additional obligations
—

 
—

 
—

 
Change in estimate
66

 
—

 
66

 
 
 
 
 
 
 
 
Balance at September 30, 2013
$
2,399

 
$
1,089

 
$
3,488

*


Note
* The current portion of ARO in the amount of $16 million is included in Accounts payable and accrued liabilities.