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Proprietary Capital (Text Block)
 12 Months Ended
Sep. 30, 2021
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
 20212020
Power ProgramNonpower
 Programs		Power ProgramNonpower
 Programs
Appropriation Investment$258 $4,351 $258 $4,351 
Proprietary Capital    
Balance at beginning of year12,177 (3,803)10,823 (3,795)
Net income (loss) for year1,520 (8)1,360 (8)
Return on power program appropriation investment(4)— (6)— 
Implementation of new accounting standard(1)
(4)— — — 
Balance at end of year13,689 (3,811)12,177 (3,803)
Net proprietary capital at September 30$13,947 $540 $12,435 $548 
Note
(1) See Note 2 — Impact of New Accounting Standards and Interpretations.

Payments to the U.S. Treasury

TVA paid the U.S. Treasury $4 million, $6 million, and $6 million in 2021, 2020, and 2019, 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 1.64 percent, 2.44 percent, and 2.37 percent for 2021, 2020, and 2019, respectively.

Accumulated Other Comprehensive Income (Loss)

The items included in AOCI consist of market valuation adjustments for certain derivative instruments.  See Note 16 — 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 $126 million and $(1) million in 2021 and 2020, respectively, into AOCI on the MtM 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 $97 million, $38 million, and $(45) million in 2021, 2020, and 2019, 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 2021, 2020, and 2019.  Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $25 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.