Asset Retirement Obligations

9 Months Ended

Jun. 30, 2013

Asset Retirement Obligation Disclosure [Abstract]

During the nine months ended June 30, 2013, TVA's total ARO liability increased $149 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 nine months ended June 30, 2013. The nuclear and non-nuclear accretion were deferred as regulatory assets, and $30 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 $48 million increase to the nuclear ARO.



Reconciliation of Asset Retirement Obligation Liability

	Nuclear		Non-Nuclear			Total
Balance at September 30, 2012	$	2,208	$	1,081		$	3,289
Settlements (ash storage areas)	—		(25		)	(25		)
Accretion (recorded as regulatory asset)	93		33			126
Change in estimate	48		—			48
Balance at June 30, 2013	$	2,349	$	1,089		$	3,438		^*

Note

* The current portion of ARO in the amount of $34 million is included in Accounts payable and accrued liabilities at June 30, 2013.