Debt and Other Obligations

Debt Outstanding

Total debt outstanding at December 31, 2018, and September 30, 2018, consisted of the following:



Debt Outstanding
	At December 31, 2018			At September 30, 2018
Short-term debt
Short-term debt, net	$	2,333		$	1,216
Current maturities of power bonds	32			1,032
Current maturities of long-term debt of variable interest entities	38			38
Current maturities of notes payable	45			46
Total current debt outstanding, net	2,448			2,332
Long-term debt
Long-term power bonds⁽¹⁾	20,283			20,300
Long-term debt of variable interest entities	1,127			1,127
Long-term notes payable	22			23
Unamortized discounts, premiums, issue costs, and other	(140		)	(143		)
Total long-term debt, net	21,292			21,307
Total outstanding debt	$	23,740		$	23,639

Note

(1) Includes net exchange gain from currency transactions of $163 million and $147 million at December 31, 2018, and September 30, 2018, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2018, to December 31, 2018:



Debt Securities Activity
	Date	Amount⁽¹⁾		Interest Rate
Redemptions/Maturities
electronotes^®	First Quarter 2019	$	1	2.65	%
2013 Series A	October 2018	1,000		1.75	%
2009 Series B	December 2018	1		3.77	%
Total redemptions/maturities of power bonds		1,002
Notes payable		1		1.64	%
Total redemptions/maturities of debt		$	1,003

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 in 2018 with a maturity date of September 30, 2019. 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 U.S. with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at December 31, 2018. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

TVA also has funding available under four long-term revolving credit facilities totaling $2.7 billion: a $150 million credit facility that matures on December 11, 2021, a $500 million credit facility that matures on February 1, 2022, a $1.0 billion credit facility that matures on September 28, 2023, and a $1.0 billion credit facility that matures on June 13, 2023. 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, 2018, and September 30, 2018, there were approximately $854 million and $921 million, respectively, of letters of credit outstanding under the facilities, and there were no borrowings outstanding. See Note 13 — Other Derivative Instruments — Collateral.

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



Summary of Long-Term Credit Facilities At December 31, 2018
	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability
Maturity Date
December 2021	$	150	$	37	$	—	$	113
February 2022	500		500		—		—
June 2023	1,000		148		—		852
September 2023	1,000		169		—		831
Total	$	2,650	$	854	$	—	$	1,796

Lease/Leasebacks

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. At both December 31, 2018, and September 30, 2018, the outstanding leaseback obligations related to the remaining CTs and QTE were $301 million.