Asset Retirement Obligations

3 Months Ended

Dec. 31, 2020

Asset Retirement Obligation Disclosure [Abstract]

During the three months ended December 31, 2020, TVA's total asset retirement obligations ("ARO") liability increased $2 million as a result of periodic accretion, partially offset by revisions in estimate and settlement projects that were conducted during the period. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During the three months ended December 31, 2020, $18 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 7 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 14 — Fair Value Measurements — Investment Funds and Note 19 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for disclosure of the current balances of the trusts and a discussion of the trusts' objectives.


Asset Retirement Obligation Activity
	Nuclear		Non-Nuclear		Total
Balance at September 30, 2020	$	3,278	$	3,507	$	6,785	(1)
Settlements	(1)		(38)		(39)
Revisions in estimate	2		(12)		(10)


Accretion (recorded as regulatory asset)	37		14		51

Balance at December 31, 2020	$	3,316	$	3,471	$	6,787	(1)

Note

(1) Includes $345 million at both December 31, 2020, and September 30, 2020, respectively, in Current liabilities.