Debt and Other Obligations

3 Months Ended

Dec. 31, 2020

Debt Outstanding

Total debt outstanding at December 31, 2020, and September 30, 2020, consisted of the following:


Debt Outstanding (in millions)
	At December 31, 2020		At September 30, 2020
Short-term debt
Short-term debt, net	$	112	$	57
Current maturities of power bonds issued at par(1)	1,802		1,787
Current maturities of long-term debt of VIEs issued at par	41		41

Total current debt outstanding, net	1,955		1,885
Long-term debt
Long-term power bonds(2)	18,108		18,078
Long-term debt of VIEs, net	1,049		1,048

Unamortized discounts, premiums, issue costs, and other	(120)		(122)
Total long-term debt, net	19,037		19,004
Total debt outstanding	$	20,992	$	20,889

Notes

(1) Includes net exchange gain from currency transactions of $58 million and $73 million at December 31, 2020, and September 30, 2020, respectively.

(2) Includes net exchange gain from currency transactions of $50 million and $80 million at December 31, 2020, and September 30, 2020, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2020, to December 31, 2020:


Debt Securities Activity
	Date	Amount (in millions)		Interest Rate






Redemptions/Maturities(1)





2009 Series B	December 2020	$	1	3.77	%








Total redemptions/maturities of debt		$	1

Note

(1) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA has funding available under four long-term revolving credit facilities totaling approximately $2.7 billion: a $150 million credit facility that matures on December 11, 2021, a $1.0 billion credit facility that matures on June 13, 2023, a $1.0 billion credit facility that matures on September 28, 2023, and a $500 million credit facility that matures on February 1, 2025. The interest rate on any borrowing under these facilities varies based on market factors and the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. TVA is required to pay an unused facility fee on the portion of the total $2.7 billion that TVA has not borrowed or committed under letters of credit. This fee, along with letter of credit fees, may fluctuate depending on the rating of TVA's senior unsecured, long-term, non-credit-enhanced debt. At December 31, 2020, and September 30, 2020, there were approximately $1.4 billion and $1.5 billion, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 13 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral.

The following table provides additional information regarding TVA's funding available under the four long-term revolving credit facilities:


Summary of Long-Term Credit Facilities At December 31, 2020 (in millions)
Maturity Date	Facility Limit		Letters of Credit Outstanding		Cash Borrowings		Availability

December 2021	$	150	$	38	$	—	$	112
June 2023	1,000		432		—		568
September 2023	1,000		394		—		606
February 2025	500		500		—		—
Total	$	2,650	$	1,364	$	—	$	1,286

TVA and the U.S. Treasury, pursuant to the TVA Act, have entered into a memorandum of understanding under which the U.S. Treasury provides TVA with a $150 million credit facility. This credit facility was renewed for 2021 with a maturity date of September 30, 2021. Access to this credit facility or other similar financing arrangements with the U.S. Treasury has been available to TVA since the 1960s. TVA can borrow under the U.S. Treasury credit facility only if it cannot issue Bonds in the market on reasonable terms, and TVA considers the U.S. Treasury credit facility a secondary source of liquidity. The interest rate on any borrowing under this facility is based on the average rate on outstanding marketable obligations of the U.S. with maturities from date of issue of one year or less. There were no outstanding borrowings under the facility at December 31, 2020. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.

Lease/Leasebacks

TVA previously entered into leasing transactions to obtain third-party financing for 24 peaking combustion turbine units ("CTs") as well as certain qualified technological equipment and software ("QTE"). Due to TVA's continuing involvement with the combustion turbine facilities and the QTE during the leaseback term, TVA accounted for the lease proceeds as financing obligations. At both December 31, 2020, and September 30, 2020, the outstanding leaseback obligations related to the remaining CTs and QTE were $223 million. In May 2020, TVA made final rent payments under lease/leaseback transactions involving eight CTs, and TVA had previously acquired the equity interest related to these transactions. Rent payments under the remaining CT lease/leaseback transactions are scheduled to be made through January 2022. TVA does have the option to acquire the equity interests related to transactions involving the remaining eight CTs for additional amounts. In addition, on October 30, 2019, TVA provided notice of its intent to purchase the ownership interest in certain QTE. Repurchase payments are being made through a series of installments in 2021 and 2022, after which the associated leases will be terminated.