Related Parties

TVA is a wholly-owned corporate agency of the federal government, and because of this relationship, TVA’s revenues and expenses are included as part of the federal budget as a revolving fund. TVA’s purpose and responsibilities as an agency are described under the “Other Agencies” section of the federal budget.

TVA currently receives no appropriations from Congress and funds its business using power system revenues, power financings, and other revenues. TVA is a source of cash to the federal government. TVA must repay an additional $10 million of the Power Program Appropriation Investment, and then pay a return on the outstanding balance of this investment indefinitely. See Note 16 — Appropriation Investment.

TVA also has access to a financing arrangement with the U.S. Treasury pursuant to the TVA Act. TVA and the U.S. Treasury entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed and has a maturity date of September 30, 2014. Access to this credit facility or other similar financing arrangements has been available to TVA since the 1960s. See Note 12 — Credit Facility Agreements.

In the normal course of business, TVA contracts with other federal agencies for sales of electricity and other services. Transactions with agencies of the federal government were as follows:



Related Party Transactions For the years ended, or at, September 30
	2013		2012		2011
Electricity sales	$	120	$	117	$	130
Other income	102		164		104
Operating and maintenance	314		375		295
Cash and cash equivalents	38		32		27
Accounts receivable, net	58		49		84
Accounts payable and accrued liabilities	133		204		175
Return on Power Program Appropriation Investment	7		7		7
Return of Power Program Appropriation Investment	20		20		20