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Risk Management Activities and Derivative Transactions Risk Management Activities and Derivative Transactions (Tables)
 12 Months Ended
Sep. 30, 2023
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
(in millions)
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20232022
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$99 $(157)
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 Relationship20232022
Currency swaps$42 $(93)
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 $20 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
(in millions)
 
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20232022
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		$(45)$(103)
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)
(348)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, 2023 and 2022.
(2) Of the amount recognized in 2023, $301 million and $47 million were reported in Fuel expense and Purchased power expense, respectively. 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
(in millions)
 20232022
Derivatives That Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£250 million Sterling
$(72)
Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66)
$(130)
Accounts payable and accrued liabilities $(7); Other long-term liabilities $(123)
£150 million Sterling
(69)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(65)
(110)
Accounts payable and accrued liabilities $(5); Other long-term liabilities $(105)
Derivatives That Do Not Receive Hedge Accounting Treatment:
 BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps    
$1.0 billion notional
$(499)
Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473)
$(672)
Accounts payable and
accrued liabilities $(9); Accrued interest $(33);
Other long-term liabilities
$(630)
$476 million notional
(159)
Other current assets $3; Accrued interest $(8); Other long-term liabilities $(154)
(233)
Accounts payable and
accrued liabilities $(3); Accrued interest $(9);
Other long-term liabilities
$(221)
Commodity contract derivatives 31 
Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1)
145 
Other current assets $118; Other long-term assets $34; Accounts payable and accrued liabilities $(6); Other long-term liabilities $(1)
Commodity derivatives under the FHP(186)
Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51)
115 
Accounts receivable, net $1; Other current assets $54; Other long-term assets $68; Accounts payable and accrued liabilities $(8)
Currency Swaps Outstanding TVA had the following currency swaps outstanding at September 30, 2023:
Currency Swaps Outstanding
Effective Date of Currency Swap ContractAssociated TVA Bond Issues Currency ExposureExpiration Date of SwapOverall Effective
Cost to TVA
2001£250 million20326.587%
2003£150 million20434.962%
Commodity Contract Derivatives
Commodity Contract Derivatives 
At September 30
 20232022
 
Number of Contracts
Notional AmountFair Value (MtM)
(in millions)		Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives54318 million mmBtu$31 44296 million mmBtu$145 
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)
20232022
Assets
Interest rate swaps$4 $— 
Commodity contract derivatives 33 152 
Commodity derivatives under the FHP(2)
— 123 
Total derivatives subject to master netting or similar arrangement$37 $275 
Liabilities
Currency swaps$141 $240 
Interest rate swaps(3)
662 905 
Commodity contract derivatives2 7 
Commodity derivatives under the FHP(2)
186 8 
Total derivatives subject to master netting or similar arrangement$991 $1,160 
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, 2023 or 2022.
(2) At September 30, 2023, the gross derivative asset and gross derivative liability was $26 million and $212 million, respectively, with offsetting amounts for each totaling $26 million.
(3) Letters of credit of approximately $509 million and $704 million were posted as collateral at September 30, 2023 and 2022, respectively, to partially secure the liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.
Schedule of Derivative Instruments Commodity Contracts under FHP
Commodity Derivatives under Financial Hedging Program(1)
At September 30
20232022
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Natural gas
Swap contracts221388 million mmBtu$(186)225256 million mmBtu$115 
Note
(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.