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Benefit Plans Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2013

Compensation and Retirement Disclosure [Abstract]

Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2013 and 2012, were as follows:

Obligations and Funded Status For the year ended September 30
	Pension Benefits								Other Post-Retirement Benefits
	2013				2012				2013				2012
Change in benefit obligation
Benefit obligation at beginning of year	$	11,995			$	11,255			$	811			$	800
Service cost	154				139				24				19
Interest cost	468				490				31				35
Plan participants’ contributions	29				30				79				80
Amendments	4				3				—				—
Actuarial loss (gain)	(549		)		686				(163		)		(2		)
Net transfers from variable fund/401(k) plan	4				7				—				—
Expenses paid	(6		)		(5		)		—				—
Benefits paid	(628		)		(610		)		(126		)		(121		)
Benefit obligation at end of year	11,471				11,995				656				811
Change in plan assets
Fair value of net plan assets at beginning of year	7,029				6,546				—				—
Actual return on plan assets	787				1,053				—				—
Plan participants’ contributions	29				30				79				80
Net transfers from variable fund/401(k) plan	4				7				—				—
Employer contributions	6				8				47				41
Expenses paid	(6		)		(5		)		—				—
Benefits paid	(628		)		(610		)		(126		)		(121		)
Fair value of net plan assets at end of year	7,221				7,029				—				—
Funded status	$	(4,250	)		$	(4,966	)		$	(656	)		$	(811	)

Amounts Recognized on TVA's Consolidated Balance Sheets

Amounts related to these benefit plans recognized on TVA's consolidated balance sheets consist of regulatory assets that have not been recognized as components of net periodic benefit cost at September 30, 2013 and 2012, and the funded status of TVA’s benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30
	Pension Benefits								Other Post-Retirement Benefits
	2013				2012				2013				2012
Regulatory assets	$	3,910			$	5,168			$	166			$	349
Accounts payable and accrued liabilities	(5		)		(5		)		(39		)		(37		)
Pension and post-retirement benefit obligations(1)	(4,245		)		(4,961		)		(617		)		(774		)

Note

(1) Table above excludes $486 million and $544 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2013 and 2012, respectively.

Postretirement Benefit Costs Deferred as Regulatory Assets

Unrecognized amounts included in regulatory assets yet to be recognized as components of accrued benefit cost at September 30 consisted of:

Postretirement Benefit Costs Deferred as Regulatory Assets At September 30
	Pension Benefits								Other Post-Retirement Benefits
	2013				2012				2013				2012
Unrecognized prior service cost (credit)	$	(203	)		$	(229	)		$	(45	)		$	(51	)
Unrecognized net loss	4,113				5,397				211				400
Total regulatory assets	$	3,910			$	5,168			$	166			$	349

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plan at September 30, 2013, and 2012, were as follows:

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets At September 30
	2013				2012
Projected benefit obligation	$	11,471			$	11,955
Accumulated benefit obligation	11,216				11,680
Fair value of net plan assets	7,221				7,029

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2013, and 2012, were as follows:

Components of Net Periodic Benefit Cost For the years ended September 30
	Pension Benefits												Other Post-Retirement Benefits
	2013				2012				2011				2013				2012				2011
Service cost	$	154			$	139			$	120			$	24			$	19			$	13
Interest cost	468				490				502				31				35				32
Expected return on plan assets	(428		)		(437		)		(488		)		—				—				—
Amortization of prior service cost	(22		)		(23		)		(23		)		(6		)		(6		)		(6		)
Recognized net actuarial loss	377				361				282				25				29				22
Net periodic benefit cost as actuarially determined	549				530				393				74				77				61
Amount charged (capitalized) due to actions of regulator	—				—				11				—				—				—
Total net periodic benefit cost recognized	$	549			$	530			$	404			$	74			$	77			$	61

Expected Amortization of Regulatory Assets in Next Fiscal Year

The amounts in the regulatory asset that are expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:

Expected Amortization of Regulatory Assets in 2014 At September 30, 2013
	Pension Benefits				Other Post-Retirement Benefits				Total
Prior service cost (credit)	$	(21	)		$	(6	)		$	(27	)
Net actuarial loss	278				11				289

Actuarial Assumptions

TVA’s reported costs of providing the plan benefits are impacted by numerous factors including the provisions of the plans, changing employee demographics, and various assumptions, the most significant of which are noted below.

Actuarial Assumptions At September 30
	Pension Benefits						Other Post-Retirement Benefits
	2013			2012			2013			2012
Assumptions utilized to determine benefit obligations at September 30
Discount rate	5.00	%		4.00	%		5.05	%		4.00	%
Rate of compensation increase	5.72	%		4.44	%		N/A			N/A
Initial health care cost trend rate	N/A			N/A			8.00	%		8.50	%
Ultimate health care cost trend rate	N/A			N/A			5.00	%		5.00	%
Ultimate trend rate is reached in year beginning	N/A			N/A			2019			2019
Assumptions utilized to determine net periodic benefit cost for the years ended September 30
Discount rate	4.00	%		4.50	%		4.00	%		4.50	%
Expected return on plan assets	7.25	%		7.25	%		N/A			N/A
Rate of compensation increase	4.44	%		4.43	%		N/A			N/A
Initial health care cost trend rate	N/A			N/A			8.50	%		8.00	%
Ultimate health care cost trend rate	N/A			N/A			5.00	%		5.00	%
Ultimate trend rate is reached in year beginning	N/A			N/A			2019			2017

Sensitivity to Certain Changes in Pension Assumptions

The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions:

Sensitivity to Certain Changes in Pension Assumptions At September 30, 2013
Actuarial Assumption		Change in Assumption			Impact on 2013 Pension Cost				Impact on 2013 Projected Benefit Obligation
Discount rate		(0.25	)		$	20			$	335
Rate of return on plan assets		(0.25	)		15				N/A

Sensitivity to Changes in Assumed Health Care Cost Trend Rates

The following chart reflects the sensitivity of post-retirement benefit cost to changes in the health care trend rate:

Sensitivity to Changes in Assumed Health Care Cost Trend Rates At September 30, 2013
	1% Increase				1% Decrease
Effect on total of service and interest cost components for the year	$	8			$	(8	)
Effect on end-of-year accumulated post-retirement benefit obligation	87				(89		)

Asset Holdings and Fair Value Measurements

Asset Holdings of TVARS At September 30
					Plan Assets at September 30
Asset Category		Target Allocation			2013			2012
Global equity		32	%		48	%		47	%
Private equity		10	%		6	%		6	%
Low volatility global public equity		5	%		—	%		—	%
Cash		2	%		2	%		1	%
Core fixed income		5	%		5	%		8	%
Long-term core fixed income		5	%		4	%		4	%
Investment grade credit		6	%		6	%		9	%
International emerging markets fixed income		5	%		—	%		—	%
High yield fixed income		5	%		10	%		10	%
Global TIPS		5	%		7	%		9	%
Private real assets		10	%		7	%		6	%
Commodities		5	%		—	%		—	%
MLPs		5	%		5	%		—	%
Total		100	%		100	%		100	%

Fair Value Measurements

The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2013:

TVA Retirement System At September 30, 2013
	Total(1) (2)				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Equity securities	$	1,689			$	1,686			$	—			$	3
Preferred securities	22				17				—				5
Debt securities
Corporate debt securities	1,352				—				1,334				18
Residential mortgage-backed securities	355				—				352				3
Debt securities issued by U.S. Treasury and other U.S. government agencies	113				113				—				—
Debt securities issued by foreign governments	31				—				30				1
Asset-backed securities	120				—				110				10
Debt securities issued by state/local governments	36				—				36				—
Commercial mortgage-backed securities	21				—				18				3
Commingled Funds
Equity	1,182				—				1,182				—
Debt	786				—				786				—
Blended	263				—				263				—
Institutional mutual funds	26				26				—				—
Cash equivalents and other short-term investments	395				1				394				—
Private equity funds	528				—				—				528
Private real estate funds	382				—				297				85
Treasury bills, U.S. Government notes, and securities held as futures and other derivative collateral	39				8				31				—
Securities lending commingled funds	3				—				3				—
Derivatives
Foreign currency forward receivable	594				—				594				—
Purchased options	6				—				6				—
Interest rate swaps	4				—				4				—
Futures	4				4				—
Total Assets	$	7,951			$	1,855			$	5,440			$	656
Liabilities
Derivatives
Foreign currency forward payable	$	594			$	—			$	594			$	—
Credit default swaps	1				—				1				—
Written option obligations	1				—				1				—
Total Liabilities	$	596			$	—			$	596			$	—

Notes

(1) Excludes approximately $131 million in net payables associated with security purchases and sales and various other payables.

(2) Excludes a $3 million payable for collateral on loaned securities in connection with TVARS’s participation in securities lending programs.

The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2012:

TVA Retirement System At September 30, 2012
	Total(1) (2)				Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)				Significant Other Observable Inputs (Level 2)				Significant Unobservable Inputs (Level 3)
Assets
Equity securities	$	1,294			$	1,293			$	—			$	1
Preferred securities	26				18				3				5
Debt securities
Corporate debt securities	1,601				—				1,589				12
Residential mortgage-backed securities	390				—				386				4
Debt securities issued by U.S. Treasury and other U.S. government agencies	184				182				2				—
Debt securities issued by foreign governments	46				—				43				3
Asset-backed securities	109				—				95				14
Debt securities issued by state/local governments	46				—				41				5
Commercial mortgage-backed securities	28				—				28				—
Commingled Funds
Equity	1,129				—				1,129				—
Debt	802				—				802				—
Blended	275				—				275				—
Institutional mutual funds	32				32				—				—
Cash equivalents and other short-term investments	311				—				311				—
Private equity funds	519				—				—				519
Private real estate funds	340				—				270				70
Treasury bills, U.S. Government notes, and securities held as futures and other derivative collateral	37				5				32				—
Securities lending commingled funds	3				—				3				—
Derivatives
Foreign currency forward receivable	487				—				487				—
Purchased options	7				—				7				—
Total Assets	$	7,666			$	1,530			$	5,503			$	633
Liabilities
Derivatives
Foreign currency forward payable	$	488			$	—			$	488			$	—
Futures	3				3				—				—
Credit default swaps	1				—				1				—
Written option obligations	1				—				1				—
Total Liabilities	$	493			$	3			$	490			$	—

Notes

(1) Excludes approximately $141 million in net payables associated with security purchases and sales and various other payables.

(2) Excludes a $3 million payable for collateral on loaned securities in connection with TVARS’s participation in securities lending programs.

Fair Value Measurements Using Significant Unobservable Inputs

The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs For the years ended September 30
	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at October 1, 2011	$	813
Net realized/unrealized gains (losses)	85
Purchases, sales, issuances, and settlements (net)	(17		)
Transfers in and/or out of Level 3(1)	(248		)
Balance at September 30, 2012	633
Net realized/unrealized gains (losses)	45
Purchases, sales, issuances, and settlements (net)	(21		)
Transfers in and/or out of Level 3	(1		)
Balance at September 30, 2013	$	656

Note

(1) Transfers in and out of Level 3 in 2012 were primarily due to a change in TVA's policy to classify investments with redemption restriction periods of three months or less as Level 2 and investments with more restrictive redemption terms as Level 3.

Estimated Future Benefit Payments

  The following table sets forth the estimated future benefit payments under the benefit plans.

Estimated Future Benefits Payments At September 30, 2013
	Pension Benefits				Other Post-Retirement Benefits
2014	$	720			$	40
2015	719				42
2016	727				43
2017	731				44
2018	736				45
2019 - 2023	3,773				210

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