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Asset Acquisitions and Business Combinations (Notes)
12 Months Ended
Sep. 30, 2018
Business Combinations and Settlement of Preexisting Relationships [Abstract]  
Asset Acquisitions and Business Combinations Disclosure
Asset Acquisitions

On September 20, 2017, TVA acquired 100 percent of the equity interests in two special purpose entities ("SPEs") designed to administer rent payments TVA makes under certain of its lease/leaseback arrangements.  Each entity holds residual interests in four of TVA's peaking combustion turbine units ("CTs").  TVA acquired these entities in order to reacquire the residual interests in eight CTs it had previously granted in the lease/leaseback arrangements.

                TVA acquired the entities for total cash consideration of $36 million.  The fair value of the assets acquired consisted of $110 million of reacquired rights, and the fair value of liabilities assumed consisted of $74 million in notes payable.  Reacquired rights are an intangible asset included in TVA's Completed plant balance and are amortized over the estimated useful life of the underlying CTs.  Notes payable assumed in the transaction are included in TVA's Long-term debt and require TVA to make semi-annual payments through May 2020.  TVA recognized less than $1 million of amortization expense, related to reacquired rights, within TVA’s consolidated statements of operations.  Transaction costs were not material.

                TVA determined that its lease/leaseback obligations were preexisting relationships that were effectively settled in the asset acquisitions.  TVA settled the preexisting relationships separately from the asset acquisitions, resulting in a loss on extinguishment of the obligations of $3 million.  The carrying value of lease/leaseback obligations effectively settled was $71 million, including accrued interest, and the reacquisition price was $74 million, paid in cash, at the acquisition date.