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Revenue (Tables) | 12 Months Ended
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Sep. 30, 2020
Revenue from Contract with Customer [Abstract] |
Revenue Recognition, Incentives [Policy Text Block] | Economic Development Incentives. Under certain economic development programs TVA offers incentives to existing and potential power customers in targeted business sectors that make multi-year commitments to invest in the Tennessee Valley. TVA records those incentives as reductions of revenue. In 2020 and 2019, TVA recorded a total of $318 million and $310 million, respectively, in incentives as a reduction of revenue. Incentives that have been approved but have not been paid are recorded in Accounts payable and accrued liabilities and Other long-term liabilities on the Consolidated Balance Sheets. At September 30, 2020 and 2019, the outstanding unpaid incentives were $172 million and $157 million, respectively. Incentives that have been paid out may be subject to claw back if the customer fails to meet certain program requirements. Additionally, in May 2020, TVA established flexibility provisions to support the continued operations and recovery of participating customers experiencing financial and operational hardships as a result of the COVID-19 pandemic and corresponding economic downturn. These provisions have not had a material impact to TVA.
Revenues | Revenues TVA recognizes revenue from contracts with customers to depict the transfer of goods or services to customers in an amount to which the entity expects to be entitled in exchange for those goods or services. For the generation and transmission of electricity, this is generally at the time the power is delivered to a metered customer delivery point for the customer's consumption or distribution. As a result, revenues from power sales are recorded as electricity is delivered to customers. In addition to power sales invoiced and recorded during the month, TVA accrues estimated unbilled revenues for power sales provided to five customers whose billing date occurs prior to the end of the month. Exchange power sales are presented in the accompanying Consolidated Statements of Operations as a component of sales of electricity. Exchange power sales are sales of excess power after meeting TVA native load and directly served requirements. Native load refers to the customers on whose behalf a company, by statute, franchise, regulatory requirement, or contract, has undertaken an obligation to serve. TVA engages in other arrangements in addition to power sales. Certain other revenue from activities related to TVA's overall mission are recorded in Other revenue. Revenues that are not related to the overall mission are recorded in Other income (expense), net. Energy Prepayment Obligations In 2004, TVA and its largest customer, Memphis Light, Gas and Water Division ("MLGW"), entered into an energy prepayment agreement under which MLGW prepaid TVA $1.5 billion for the future costs of electricity to be delivered by TVA to MLGW over a period of 180 months. TVA accounted for the prepayment as unearned revenue and reported the obligation to deliver power under this arrangement as Energy prepayment obligations. The arrangement ceased in 2019. Revenue was recognized in each year of the arrangement as electricity was delivered to MLGW based on the ratio of units of kilowatt hours delivered to total units of kilowatt hours under contract. As of September 30, 2019, $1.5 billion had been recognized as non-cash revenue on a cumulative basis during the life of the agreement, $10 million and $100 million of which was recognized as non-cash revenue during 2019 and 2018, respectively. Discounts to account for the time value of money, which are recorded as a reduction to electricity sales, amounted to $4 million and $46 million for the years ended September 30, 2019 and 2018, respectively.
Disaggregation of Revenue [Table Text Block] | Disaggregated Revenue In 2020, the revenues generated from TVA's electricity sales were $10.1 billion and accounted for virtually all of TVA's revenues. TVA's revenues by state for each of the last three years are detailed in the table below:
Operating Revenues By State For the years ended September 30 (in millions)
| 2020 |  | 2019 |  | 2018
Alabama | $ | 1,439 |  |  | $ | 1,593 |  |  | $ | 1,600 |
Georgia | 249 |  |  | 270 |  |  | 267 |
Kentucky | 624 |  |  | 691 |  |  | 696 |
Mississippi | 941 |  |  | 1,063 |  |  | 1,052 |
North Carolina | 65 |  |  | 74 |  |  | 66 |
Tennessee | 6,740 |  |  | 7,419 |  |  | 7,350 |
Virginia | 42 |  |  | 45 |  |  | 48 |
Subtotal | 10,100 |  |  | 11,155 |  |  | 11,079 |
Off-system sales | 4 |  |  | 4 |  |  | 7 |
Revenue capitalized during pre-commercial plant operations(1) | — |  |  | — |  |  | (11) |
Revenue from sales of electricity | 10,104 |  |  | 11,159 |  |  | 11,075 |
Other revenue | 145 |  |  | 159 |  |  | 158 |
Total operating revenues | $ | 10,249 |  |  | $ | 11,318 |  |  | $ | 11,233 |
Note (1) Represents revenue capitalized during pre-commercial operations of $11 million at Allen CC in 2018. See Note 1 — Summary of Significant Accounting Policies — Pre-Commercial Plant Operations. TVA's operating revenues by customer type for each of the last three years are detailed in the table below:
Operating Revenues by Customer Type For the years ended September 30 (in millions)
| 2020 |  | 2019 |  | 2018
Revenue from sales of electricity |  |  |  |  |
Local power companies(1) | $ | 9,406 |  |  | $ | 10,351 |  |  | $ | 10,262 |
Industries directly served | 588 |  |  | 686 |  |  | 695 |
Federal agencies and other | 110 |  |  | 122 |  |  | 129 |
Revenue capitalized during pre-commercial plant operations(2) | — |  |  | — |  |  | (11) |
Revenue from sales of electricity | 10,104 |  |  | 11,159 |  |  | 11,075 |
Other revenue | 145 |  |  | 159 |  |  | 158 |
Total operating revenues | $ | 10,249 |  |  | $ | 11,318 |  |  | $ | 11,233 |
Notes (1) The amount for the years ended September 30, 2020 and 2019, is net of $163 million and $14 million, respectively, of wholesale bill credits to LPCs participating in the long-term Partnership Agreement. There were no such credits in 2018. (2) Represents revenue capitalized during pre-commercial operations of $11 million at Allen CC in 2018. See Note 1 — Summary of Significant Accounting Policies — Pre-Commercial Plant Operations. TVA and LPCs continue to work together to meet the changing needs of consumers around the Tennessee Valley. In 2019, the TVA Board approved a 20-year Partnership Agreement option that better aligns the length of LPC contracts with TVA's long-term commitments. These agreements are automatically extended each year after their initial effective date, contingent upon certain circumstances, including limited rate increases going forward. Participating LPCs will receive benefits including a 3.1 percent wholesale bill credit in exchange for their long-term commitment, which enables TVA to recover its long-term financial commitments over a commensurate period. In June 2020, TVA provided participating LPCs a flexibility option that allows them to locally generate up to approximately five percent of average total hourly energy sales over the prior five years in order to meet their individual customers' needs. As of November 16, 2020, 142 LPCs had signed the 20-year Partnership Agreement with TVA, and 64 LPCs had signed a Flexibility Agreement. In August 2020, the TVA Board approved a $200 million Pandemic Relief Credit. The 2.5 percent base rate credit will be applied beginning in October 2020 and will remain in effect through the end of 2021. The credit will apply to service provided to TVA's local power company customers, their large commercial and industrial customers, and TVA directly served customers. The number of LPCs with the contract arrangements described below, the revenues derived from such arrangements during 2020, and the percentage of TVA's total operating revenues during 2020 represented by these revenues are summarized in the tables below:
TVA Local Power Company Contracts At or for the year ended September 30, 2020
Contract Arrangements(1) | Number of LPCs |  | Revenue from Sales of Electricity to LPCs (in millions) |  | Percentage of Total Operating Revenues
20-year termination notice | 142 |  |  | $ | 7,666 |  |  | 74.8 | %
5-year termination notice | 11 |  |  | 1,740 |  |  | 17.0 | %
Total(2) | 153 |  |  | $ | 9,406 |  |  | 91.8 | %
Notes (1) Ordinarily, the LPCs and TVA have the same termination notice period; however, in contracts with two of the LPCs with five-year termination notices, TVA has a 10-year termination notice (which becomes a five-year termination notice if TVA loses its discretionary wholesale rate-setting authority). Certain LPCs have five-year termination notices or a shorter period if any act of Congress, court decision, or regulatory change requires or permits that election. (2) TVA wholesale power contracts decreased to 153 in 2020 due to a merger between two LPCs in July 2020. TVA's two largest LPCs — MLGW and NES — have contracts with a five-year and a 20-year termination notice period, respectively. Sales to MLGW and NES accounted for nine percent and eight percent, respectively, of TVA's total operating revenues in 2020. In May 2020, MLGW published a draft IRP to guide energy choices in the future, and in July 2020, TVA made a proposal to MLGW that highlights the benefits of remaining a TVA customer. In August 2020, MLGW published a final IRP and announced its plan to issue requests for proposal to validate the cost estimates included in the IRP. In addition, certain other LPCs are evaluating options for future energy choices.
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances Contract assets represent an entity's right to consideration in exchange for goods and services that the entity has transferred to customers. TVA does not have any material contract assets as of September 30, 2020. Contract liabilities represent an entity's obligations to transfer goods or services to customers for which the entity has received consideration (or an amount of consideration is due) from the customers. These contract liabilities are primarily related to upfront consideration received prior to the satisfaction of the performance obligation.
Energy Prepayment Obligation [Table Text Block] | Energy Prepayment Obligations. In 2004, TVA and its largest customer, MLGW, entered into an energy prepayment agreement under which MLGW prepaid TVA $1.5 billion for the future costs of electricity to be delivered by TVA to MLGW over a period of 15 years. TVA accounted for the prepayment as unearned revenue and reported the obligation to deliver power under this arrangement as Energy prepayment obligations. The arrangement ceased in 2019. TVA recognized approximately $100 million of noncash revenue in each year of the arrangement as electricity was delivered to MLGW based on the ratio of units of kilowatt hours delivered to total units of kilowatt hours under contract. As of September 30, 2019, $1.5 billion had been recognized as noncash revenue on a cumulative basis during the life of the agreement, $100 million of which was recognized as noncash revenue and a corresponding reduction in the balance of Energy prepayment obligations during 2018. During 2019, $10 million was recognized as noncash revenue and a corresponding reduction in the balance of Energy prepayment obligations. Discounts to account for the time value of money, which were recorded as a reduction to electricity sales, amounted to $4 million and $46 million during 2019 and 2018, respectively.

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