Debt and Other Obligations

Debt Outstanding

Total debt outstanding at June 30, 2015, and September 30, 2014, consisted of the following:



Debt Outstanding
	At June 30, 2015			At September 30, 2014
Short-term debt
Short-term debt, net	$	2,582		$	596
Current maturities of long-term debt of variable interest entities	33			32
Current maturities of power bonds	32			1,032
Total current debt outstanding, net	2,647			1,660
Long-term debt
Long-term debt of variable interest entities	1,263			1,279
Long-term power bonds⁽¹⁾	21,827			22,037
Unamortized discounts, premiums, and other	(83		)	(89		)
Total long-term debt, net	23,007			23,227
Total outstanding debt	$	25,654		$	24,887

Note

(1) Includes net exchange losses from currency transactions of $14 million at June 30, 2015 and $44 million at September 30, 2014.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2014, to June 30, 2015:



Debt Securities Activity
	Date	Amount		Interest Rate

Redemptions/Maturities
electronotes^®	First Quarter 2015	$	1	2.65	%
electronotes^®	Second Quarter 2015	42		4.20	%
electronotes^®	Third Quarter 2015	19		4.05	%
2009 Series A	November 2014	2		2.25	%
2009 Series B	December 2014	1		3.77	%
1999 Series A	May 2015	38		3.96	%
2009 Series A	May 2015	1		2.25	%
1998 Series D	June 2015	50		3.83	%
2009 Series B	June 2015	26		3.77	%
2005 Series B	June 2015	1,000		4.38	%
Total redemptions/maturities of power bonds		1,180
Variable interest entities	Second Quarter 2015	15		4.29	%
Total redemptions/maturities of debt		$	1,195

Note

(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 2015 with a maturity date of September 30, 2015. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility 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 June 30, 2015. 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 December 13, 2017, another $500 million credit facility matures on April 5, 2018, and one $1.0 billion credit facility matures on June 2, 2020. 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

June 30, 2015, and September 30, 2014, there were approximately $1.1 billion and $1.0 billion, respectively, of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 15 — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available in the form or three long-term credit facilities:



Summary of Long-Term Credit Facilities At June 30, 2015 (in billions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
December 2017	$	1.0	$	0.3	$	—	$	0.7
April 2018	0.5		0.5		—		—
June 2020	1.0		0.3		—		0.7
Total	$	2.5	$	1.1	$	—	$	1.4

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 lease/leaseback transactions 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 June 30, 2015, and September 30, 2014, the outstanding lease/leaseback obligations were $617 million and $691 million, respectively.