Other Long-Term Assets

The table below summarizes the types and amounts of TVA's other long-term assets:



Other Long-Term Assets
	At March 31, 2020		At September 30, 2019
Loans and other long-term receivables, net	$	126	$	125
EnergyRight^® receivables	76		81
Prepaid long-term service agreements⁽¹⁾	33		22
Restricted cash and cash equivalents	23		23
Prepaid capacity payments	15		19
Other	59		55
Total other long-term assets	$	332	$	325

Note

(1) Certain amounts have been reclassified to conform with current year presentation.

EnergyRight^®Receivables. In association with the EnergyRight^® Solutions program, TVA's local power company customers ("LPCs") offer financing to end-use customers for the purchase of energy-efficient equipment. Depending on the nature of the energy-efficiency project, loans may have a maximum term of five years or 10 years. TVA purchases the resulting loans receivable from its LPCs. The loans receivable are then transferred to a third-party bank with which TVA has agreed to repay in full any loans receivable that have been in default for 180 days or more or that TVA has determined are uncollectible. Given this continuing involvement, TVA accounts for the transfer of the loans receivable as secured borrowings. The current and long-term portions of the loans receivable are reported in Accounts receivable, net and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At March 31, 2020, and September 30, 2019, the carrying amount of the loans receivable, net of discount, reported in Accounts receivable, net was $19 million and $20 million, respectively. See Note 10 — Other Long-Term Liabilities for information regarding the associated financing obligation.

In response to the COVID-19 pandemic, customers experiencing a financial hardship can request a deferral of loan payments for a period of up to six months. This deferral option is available beginning April 20, 2020, through October 31, 2020. Deferred loans will not accrue interest during the deferral months.

Prepaid Long-Term Service Agreements. TVA has entered into various long-term service agreements for major maintenance activities at certain of its combined cycle plants. TVA uses the direct expense method of accounting for these arrangements. TVA accrues for parts when it takes ownership and for contractor services when they are rendered. Under certain of these agreements, payments made exceed the value of parts received and services rendered. The current and long-term portions of the resulting prepayments are reported in Other current assets and Other long-term assets, respectively, on TVA's Consolidated Balance Sheets. At March 31, 2020, and September 30, 2019, prepayments of $1 million and $5 million, respectively, were recorded in Other current assets.