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Subsequent Events
6 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
Subsequent Event
Subsequent Events

On April 14, 2015, TVA acquired a 700-megawatt combined cycle gas plant located in Ackerman, Mississippi, from Quantum Choctaw Power, an affiliate of Quantum Utility Generation.  TVA has purchased the electricity generated by the plant since 2008.  TVA acquired the plant for total cash consideration of $342 million. The fair value of the assets acquired was primarily allocated to Property, plant, and equipment. The acquisition did not include contingent consideration. Transaction costs were expensed as incurred and were not material.

The EPA published a final rule related to coal combustion residuals on April 17, 2015, which will regulate landfill and impoundment location, design and operations; require pond closures, structural integrity, and groundwater monitoring; and describe beneficial reuse. The rule will become effective on October 14, 2015, although certain provisions have later effective dates. TVA is in the process of evaluating the impact of the new rule on the projected schedules and costs related to its fossil operations, including related asset retirement obligations.

TVA announced on April 29, 2015 that the coupon rate on the TVA 1998 Series D bonds (CUSIP number 880591300) will be reset from the current rate of 3.83 percent to the new rate of 3.55 percent on June 1, 2015. Beneficial owners of the bonds have the option of requesting repayment at par value in conjunction with the rate reset. As a result, TVA could be required to repurchase up to $324 million of bonds on June 1, 2015.