Related Parties

12 Months Ended

Sep. 30, 2020

TVA is a wholly-owned corporate agency of the federal government, and because of this relationship, TVA's revenues and expenses are included as part of the federal budget as a revolving fund. TVA's purpose and responsibilities as an agency are described under the "Other Agencies" section of the federal budget.

TVA currently receives no appropriations from Congress and funds its business using power system revenues, power financings, and other revenues. TVA is a source of cash to the federal government. TVA will indefinitely continue to pay the U.S. Treasury a return on the outstanding $258 million of the government's appropriation investment in TVA's power facilities (the "Power Program Appropriation Investment"). See Note 18 — Proprietary Capital — Appropriation Investment.

TVA also has access to a financing arrangement with the U.S. Treasury pursuant to the TVA Act. TVA and the U.S. Treasury entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility has a maturity date of September 30, 2021, and is typically renewed annually. Access to this credit facility or other similar financing arrangements has been available to TVA since the 1960s. See Note 13 — Debt and Other Obligations — Credit Facility Agreements.

In the normal course of business, TVA contracts with other federal agencies for sales of electricity and other services. Transactions with agencies of the federal government were as follows:


Related Party Transactions For the years ended, or at, September 30
	2020		2019		2018
Revenue from sales of electricity	$	105	$	118	$	122
Other income	260		258		240

Expenditures
Operating expenses	224		222		220
Additions to property, plant, and equipment	9		10		8
Cash and cash equivalents	31		45		46
Accounts receivable, net	94		76		60
Investment funds	485		279		199
Long-term accounts receivable	27		53		46
Accounts payable and accrued liabilities	39		69		69
Long-term power bonds, net	1		—		—
Return on power program appropriation investment	6		6		5