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Proprietary Capital (Text Block) | 12 Months Ended
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Sep. 30, 2020
Stockholders' Equity Note [Abstract] |
Proprietary Capital | Proprietary Capital Appropriation Investment TVA's power program and stewardship (nonpower) programs were originally funded primarily by appropriations from Congress. In 1959, Congress passed an amendment to the TVA Act that required TVA's power program to be self-financing from power revenues and proceeds from power program financings. While TVA's power program did not directly receive appropriated funds after it became self-financing, TVA continued to receive appropriations for certain multipurpose and other nonpower mission-related activities as well as for its stewardship activities. TVA has not received any appropriations from Congress for any activities since 1999, and since that time, TVA has funded stewardship program activities primarily with power revenues. The 1959 amendment to the TVA Act also required TVA, beginning in 1961, to make annual payments to the U.S. Treasury from net power proceeds as a repayment of and as a return on the Power Program Appropriation Investment until a total of $1.0 billion of the Power Program Appropriation Investment has been repaid in accordance with the 1959 amendment. TVA fulfilled its requirement to repay $1.0 billion of the Power Program Appropriation Investment in 2014. The TVA Act requires TVA to continue making payments to the U.S. Treasury as a return on the remaining $258 million of the Power Program Appropriation Investment. The table below summarizes TVA's activities related to appropriated funds and retained earnings.
Summary of Proprietary Capital Activity At or for the years ended September 30
| 2020 |  | 2019
| Power Program |  | Nonpower Programs |  | Power Program |  | Nonpower Programs
Appropriation Investment | $ | 258 |  |  | $ | 4,351 |  |  | $ | 258 |  |  | $ | 4,351 |
Proprietary Capital |  |  |  |  |  |  |
Balance at beginning of year | 10,823 |  |  | (3,795) |  |  | 9,404 |  |  | (3,787) |
Net income (loss) for year | 1,360 |  |  | (8) |  |  | 1,425 |  |  | (8) |
Return on power program appropriation investment | (6) |  |  | — |  |  | (6) |  |  | — |
Balance at end of year | 12,177 |  |  | (3,803) |  |  | 10,823 |  |  | (3,795) |
Net proprietary capital at September 30 | $ | 12,435 |  |  | $ | 548 |  |  | $ | 11,081 |  |  | $ | 556 |
Payments to the U.S. Treasury TVA paid the U.S. Treasury $6 million, $6 million, and $5 million in 2020, 2019, and 2018, respectively, as a return on the Power Program Appropriation Investment. The amount of the return on the Power Program Appropriation Investment is based on the Power Program Appropriation Investment balance at the beginning of that year and the computed average interest rate payable by the U.S. Treasury on its total marketable public obligations at the same date. The interest rates payable by TVA on the Power Program Appropriation Investment were 2.44 percent, 2.37 percent, and 2.09 percent for 2020, 2019, and 2018, respectively. Accumulated Other Comprehensive Income (Loss) The items included in AOCI consist of market valuation adjustments for certain derivative instruments. See Note 15 — Risk Management Activities and Derivative Transactions. TVA records exchange rate gains and losses on debt and related accrued interest in net income and marks its currency swap assets and liabilities to market through OCI. TVA recognized unrealized gains (losses) of $(1) million and $(114) million in 2020 and 2019, respectively, into AOCI on the mark-to-market of currency swaps. TVA then reclassified an amount out of AOCI into net income, offsetting the gain/loss from recording the exchange gain/loss on the debt and related accrued interest. The amounts reclassified from OCI into net income resulted in increases (decreases) to net income of $38 million, $(45) million, and $(26) million in 2020, 2019, and 2018, respectively. These reclassifications, coupled with the recording of the exchange gain/loss on the debt and related accrued interest, did not have an impact on net income in 2020, 2019, and 2018. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $27 million of gains from AOCI to interest expense within the next 12 months to offset amounts anticipated to be recorded in interest expense related to exchange gain on the debt and related accrued interest.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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