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Debt and Other Obligations
 9 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
Debt Outstanding

Total debt outstanding at June 30, 2022, and September 30, 2021, consisted of the following:
Debt Outstanding 
(in millions)
 At June 30, 2022At September 30, 2021
Short-term debt  
Short-term debt, net$1,034 $780 
Current maturities of power bonds issued at par1,029 1,028 
Current maturities of long-term debt of VIEs issued at par44 43 
Total current debt outstanding, net2,107 1,851 
Long-term debt  
Long-term power bonds(1)
17,491 17,572 
Long-term debt of VIEs, net985 1,006 
Unamortized discounts, premiums, issue costs, and other(108)(115)
Total long-term debt, net18,368 18,463 
Total debt outstanding$20,475 $20,314 
Note
(1) Includes net exchange gain from currency transactions of $110 million and $58 million at June 30, 2022, and September 30, 2021, respectively.
Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2021, to June 30, 2022:
Debt Securities Activity
 Date
Amount
(in millions)
Redemptions/Maturities(1)
 
2009 Series BDecember 2021$1 
 2009 Series BJune 202227 
Total redemptions/maturities of power bonds28 
Debt of variable interest entities21 
Total redemptions/maturities of debt$49 
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 February 9, 2024, a $500 million credit facility that matures on February 1, 2025, a $1.0 billion credit facility that matures on September 21, 2026, and a $1.0 billion credit facility that matures on March 25, 2027. 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 June 30, 2022, and September 30, 2021, there were approximately $743 million and $1.2 billion, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 14 — 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 June 30, 2022
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
 February 2024$150 $38 $— $112 
February 2025500 500 — — 
September 20261,000 99 — 901 
March 20271,000 106 — 894 
Total$2,650 $743 $— $1,907 
    
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 2022 with a maturity date of September 30, 2022. 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 12 months or less. There were no outstanding borrowings under the facility at June 30, 2022. 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 September 30, 2021, the outstanding leaseback obligations related to the remaining CTs and QTE were $25 million. There were no outstanding leaseback obligations related to the remaining CTs and QTE at June 30, 2022. Prior to 2021, TVA made final rent payments involving 16 CTs and acquired the equity interest related to these transactions. Rent payments under the remaining CT lease/leaseback transactions were made through January 2022. TVA gave notice in December 2021 of its election to acquire the equity interests related to the remaining eight CTs for a total of $155 million. The associated acquisitions are expected to close in December 2022 and May 2023.

In October 2019, TVA provided notice of its intent to purchase the ownership interest in certain QTE through a series of installments. TVA made its last repurchase payment in December 2021, after which the associated leases were terminated.