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Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions (Tables)
 12 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
For the years ended September 30
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20222021
Currency swapsTo protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction$(157)$126 
Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense
For the years ended September 30
Derivatives in Cash Flow Hedging Relationship20222021
Currency swaps$(93)$97 
Note
(1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $29 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 the forecasted exchange loss on the debt.
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
For the years ended September 30
 
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20222021
Interest rate swapsTo fix short-term debt variable rate to a fixed rate (interest rate risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively

Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow		$(103)$(115)
Commodity derivatives
under the FHP		To protect against fluctuations in market prices of purchased commodities (price risk)
Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively

Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)
47 — 
Notes
(1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory liabilities and assets. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the years ended September 30, 2022 and 2021.
(2) Of the amount recognized in 2022, $38 million and $9 million were reported in Fuel expense and Purchased power expense, respectively.
Fair Values of TVA Derivatives
Fair Values of TVA Derivatives
At September 30
 20222021
Derivatives That Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£250 million Sterling
$(130)
Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123)
$(36)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(32)
£150 million Sterling
(110)
Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105)
(47)
Accounts payable and accrued liabilities $(3); Other long-term liabilities $(44)
Derivatives That Do Not Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps    
$1.0 billion notional
$(672)
Accounts payable and accrued liabilities $(9); Accrued interest $(33); Other long-term liabilities $(630)
$(1,182)
Accounts payable and
accrued liabilities $(44); Accrued interest $(37);
Other long-term liabilities
$(1,101)
$476 million notional
(233)
Accounts payable and accrued liabilities $(3); Accrued interest $(9); Other long-term liabilities $(221)
(455)
Accounts payable and
accrued liabilities $(22); Accrued interest $(10);
Other long-term liabilities
$(423)
$42 million notional(1)
— N/A(2)
Accounts payable and
accrued liabilities $(1); Accrued interest $(1)
Commodity contract derivatives 145 
Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1)
247 
Other current assets $210; Other long-term assets $40; Accounts payable and accrued liabilities $(3)
Commodity derivatives under the FHP115 
Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8)
— N/A
Currency Swaps Outstanding TVA had the following currency swaps outstanding at September 30, 2022:
Currency Swaps Outstanding
Effective Date of Currency Swap ContractAssociated TVA Bond Issues Currency ExposureExpiration Date of SwapOverall Effective
Cost to TVA
2001£250 million20326.59%
2003£150 million20434.96%
Commodity Contract Derivatives
Commodity Contract Derivatives 
At September 30
 20222021
 
Number of Contracts
Notional AmountFair Value (MtM)
(in millions)		Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives44296 million mmBtu$145 40263 million mmBtu$247 
Offsetting Assets and Liabilities The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:
Derivative Assets and Liabilities(1)
At September 30
(in millions)
20222021
Assets
Commodity contract derivatives $152 $250 
Commodity derivatives under the FHP(2)
123 — 
Total derivatives subject to master netting or similar arrangement$275 $250 
Liabilities
Currency swaps$240 $83 
Interest rate swaps(3)
905 1,639 
Commodity contract derivatives7 3 
Commodity derivatives under the FHP(2)
8 — 
Total derivatives subject to master netting or similar arrangement$1,160 $1,725 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either September 30, 2022 or 2021.
(2) At September 30, 2022, the gross derivative asset and gross derivative liability was $168 million and $53 million, respectively, with offsetting amounts for each totaling $45 million. TVA received $68 million of collateral from counterparties as of September 30, 2022, which is recorded separately from the fair values of the derivative assets and liabilities and reported in Accounts payable and accrued liabilities.
(3) Letters of credit of approximately $704 million and $1.2 billion were posted as collateral at September 30, 2022 and 2021, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.