Debt and Other Obligations

Debt Outstanding

Total debt outstanding at December 31, 2016, and September 30, 2016, consisted of the following:



Debt Outstanding
	At December 31, 2016			At September 30, 2016
Short-term debt
Short-term debt, net	$	2,027		$	1,407
Current maturities of power bonds	1,681			1,555
Current maturities of long-term debt of variable interest entities	35			35
Current maturities of notes payable	27			27
Total current debt outstanding, net	3,770			3,024
Long-term debt
Long-term power bonds⁽¹⁾	20,373			21,063
Long-term debt of variable interest entities	1,211			1,211
Long-term notes payable	48			48
Unamortized discounts, premiums, issue costs, and other	(169		)	(174		)
Total long-term debt, net	21,463			22,148
Total outstanding debt	$	25,233		$	25,172

Note

(1) Includes net exchange gain from currency transactions of $188 million at December 31, 2016, and $150 million at September 30, 2016.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2016, to December 31, 2016:



Debt Securities Activity
	Date	Amount⁽¹⁾		Interest Rate

Redemptions/Maturities
electronotes^®	First Quarter 2017	$	1	2.65	%
2009 Series B	December 2016	1		3.77	%
2001 Series D	December 2016	525		4.88	%
Total redemptions/maturities of debt		$	527

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 2017 with a maturity date of September 30, 2017. 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 December 31, 2016. 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 four long-term revolving credit facilities totaling $2.7 billion. One $150 million credit facility matures on December 12, 2019, one $500 million credit facility matures on February 1, 2020, one $1.0 billion credit facility matures on June 2, 2020, and another $1.0 billion credit facility matures on September 30, 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 $2.7 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, 2016, and September 30, 2016, there were approximately $1.1 billion and $1.4 billion, respectively, of letters of credit outstanding under the facilities. See Note 12 — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available under the four long-term credit facilities:



Summary of Long-Term Credit Facilities At December 31, 2016
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
December 2019	$	150	$	—	$	—	$	150
February 2020	500		500		—		—
June 2020	1,000		262		—		738
September 2020	1,000		373		—		627
Total	$	2,650	$	1,135	$	—	$	1,515

Lease/Leaseback Obligations

TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking combustion turbine units (“CTs”) as well as certain qualified technological equipment and software (collectively, “QTE”). Due to TVA’s continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. In 2016, TVA acquired 100 percent of the equity interests in two special purpose entities ("SPEs") created for the purpose of facilitating a portion of the leaseback arrangements. As a result of the acquisition, TVA effectively settled its leaseback obligations related to eight CTs. At December 31, 2016, and September 30, 2016, the outstanding leaseback obligations related to CTs and QTE were $466 million and $467 million, respectively.