Related Parties

TVA is a wholly-owned corporate agency of the federal government, and because of this relationship, TVA’s revenues and expenses are included as part of the federal budget as a revolving fund. TVA’s purpose and responsibilities as an agency are described under the “Other Agencies” section of the federal budget.

TVA currently receives no appropriations from Congress and funds its business using power system revenues, power financings, and other revenues. TVA is a source of cash to the federal government. With its payment of $10 million during 2014, TVA fulfilled its requirement under the 1959 amendment to the TVA Act to repay $1.0 billion of its Power Program Appropriation Investment. TVA will continue to pay a return on the outstanding balance of this investment indefinitely. See Note 16 — Appropriation Investment.

TVA also has access to a financing arrangement with the U.S. Treasury pursuant to the TVA Act. TVA and the U.S. Treasury 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 and has a maturity date of September 30, 2017. Access to this credit facility or other similar financing arrangements has been available to TVA since the 1960s. See Note 12 — Credit Facility Agreements.

In the normal course of business, TVA contracts with other federal agencies for sales of electricity and other services. Transactions with agencies of the federal government were as follows:



Related Party Transactions For the years ended, or at, September 30
	2016		2015		2014
Revenue from sales of electricity	$	126	$	130	$	128
Other income	161		167		137
Expenditures
Operating expenses	216		227		267
Additions to property, plant, and equipment	32		37		19
Cash and cash equivalents	54		45		35
Accounts receivable, net	129		106		85
Accounts payable and accrued liabilities	77		98		146
Long-term power bonds, net	4		5		3
Return on Power Program Appropriation Investment	6		5		4
Return of Power Program Appropriation Investment	—		—		10