Inventories, Net Inventories, Net (Tables)

12 Months Ended

Sep. 30, 2022

The table below summarizes the types and amounts of TVA's inventories:


Inventories, Net At September 30 (in millions)
	2022		2021
Materials and supplies inventory	$	808	$	775
Fuel inventory	303		198
Renewable energy certificates/emissions allowance inventory, net	18		12
Allowance for inventory obsolescence	(57)		(35)
Inventories, net	$	1,072	$	950

Fuel inventory increased $105 million at September 30, 2022, as compared to September 30, 2021, primarily due to an increase in coal inventory of $58 million and an increase in natural gas inventory of $32 million. Coal inventory increased primarily due to higher costs of fuel, including transportation costs, as a result of continued supply constraints driven by both domestic and export demand, limited production capacity, and market volatility. Coal inventory also increased over the prior year due to coal conservation efforts and an increase in inventory levels as TVA prepares for winter inventory needs. Natural gas inventory increased primarily due to higher gas prices, as well as an increase in the amount of stored gas to mitigate fuel price volatility.