Debt and Other Obligations

Debt Outstanding

Total debt outstanding at December 31, 2013, and September 30, 2013, consisted of the following:



Debt Outstanding
	At December 31, 2013			At September 30, 2013
Short-term debt
Short-term debt, net	$	1,825		$	2,432
Current maturities of long-term debt of variable interest entities	30			30
Current maturities of power bonds	355			32
Total current debt outstanding, net	2,210			2,494
Long-term debt
Long-term debt of variable interest entities	1,311			1,311
Long-term power bonds⁽¹⁾	22,092			22,400
Unamortized discounts, premiums and other	(83		)	(85		)
Total long-term debt, net	23,320			23,626
Total outstanding debt	$	25,530		$	26,120

Notes

(1) Includes net exchange losses from currency transactions of $65 million at December 31, 2013 and $43 million at September 30, 2013.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2013, to December 31, 2013.



Debt Securities Activity
	Date	Amount		Interest Rate

Redemptions/Maturities⁽¹⁾
electronotes^®	First Quarter 2014	$	4	3.56	%
2009 Series A	November 2013	2		2.25	%
2009 Series B	December 2013	1		3.77	%
Total redemptions/maturities		$	7

Notes

(1) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA and the U.S. Treasury, pursuant to the TVA Act, have 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 for 2014 with a maturity date of September 30, 2014. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA plans to use the U.S. Treasury credit facility as a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the United States with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at December 31, 2013, The availability of this credit facility may be impacted by how the U.S. government addresses the situation of approaching its debt limit.

TVA also has funding available in the form of three long-term revolving credit facilities totaling $2.5 billion. One $1.0 billion credit facility matures on June 25, 2017, another $1.0 billion credit facility matures on December 13, 2017, and the $500 million credit facility matures on April 5, 2018. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured long-term non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.5 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured long-term non-credit-enhanced debt. At

December 31, 2013, and September 30, 2013, there were approximately $800 million of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 14 — Other Derivative Instruments — Collateral.

Lease/Leaseback Obligations

Prior to 2004, TVA received approximately $945 million in proceeds by entering into lease/leaseback transactions for 24 new peaking combustion turbine units. TVA also received approximately $389 million in proceeds by entering into a leaseback transaction for qualified technological equipment and software in 2003. Due to TVA's continuing involvement in the operation and maintenance of the leased units and equipment and its control over the distribution of power produced by the combustion turbine facilities during the leaseback term, TVA accounted for the lease proceeds as financing obligations. At December 31, 2013, and September 30, 2013, the outstanding leaseback obligations were $760 million and $761 million, respectively.