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Benefit Plans Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Obligations and Funded Status

The changes in plan obligations, assets, and funded status for the years ended September 30, 2023 and 2022, were as follows:

Obligations and Funded Status For the years ended September 30 (in millions)
812,900,000			Pension Benefits												Other Post-Retirement Benefits
809,400,000			2023						2022						2023						2022
Change in benefit obligation
Benefit obligation at beginning of year			$	10,536					$	13,348					$	388					$	498
Service cost			32						53						10						17
Interest cost			568						378						18						15
Plan participants' contributions			4						5						—						—
Collections(1)			—						—						13						15
Actuarial (gain) loss			(284)						(2,509)						(44)						(114)
Net transfers (to) from variable fund/401(k) plan			4						11						—						—
Expenses paid			(7)						(6)						—						—
Benefits paid			(754)						(744)						(38)						(43)
Benefit obligation at end of year			10,099						10,536						347						388
Change in plan assets
Fair value of net plan assets at beginning of year			8,094						9,110						—						—
Actual return on plan assets			482						(590)						—						—
Plan participants' contributions			4						5						—						—
Collections(1)			—						—						13						15
Net transfers (to) from variable fund/401(k) plan			4						11						—						—
Employer contributions			306						308						25						28
Expenses paid			(7)						(6)						—						—
Benefits paid			(754)						(744)						(38)						(43)
Fair value of net plan assets at end of year			8,129						8,094						—						—
Funded status			$	(1,970)					$	(2,442)					$	(347)					$	(388)

Note

(1) Collections include retiree contributions as well as provider discounts and rebates.

Amounts Recognized on TVA's Consolidated Balance Sheets

Amounts related to these benefit plans recognized on TVA's Consolidated Balance Sheets consist of regulatory assets and liabilities that have not been recognized as components of net periodic benefit cost at September 30, 2023 and 2022, and the funded status of TVA's benefit plans, which are included in Accounts payable and accrued liabilities and Post-retirement and post-employment benefit obligations:

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions)
			Pension Benefits												Other Post-Retirement Benefits
			2023						2022						2023						2022
Regulatory assets (liabilities)			$	1,440					$	1,839					$	(95)					$	(70)
Accounts payable and accrued liabilities			(6)						(6)						(21)						(22)
Pension and post-retirement benefit obligations(1)			(1,964)						(2,436)						(326)						(366)

Note

(1) The table above excludes $237 million and $270 million of post-employment benefit costs that are recorded in Post-retirement and post-employment benefit obligations on the Consolidated Balance Sheets at September 30, 2023 and 2022, respectively.

Post-Retirement Benefit Costs Deferred as Regulatory Assets

Unrecognized amounts included in regulatory assets or liabilities yet to be recognized as components of accrued benefit cost at September 30, 2023 and 2022, consisted of the following:

Post-Retirement Benefit Costs Deferred as Regulatory Assets (Liabilities) At September 30 (in millions)
			Pension Benefits												Other Post-Retirement Benefits
			2023						2022						2023						2022
Unrecognized prior service credit			$	(336)					$	(424)					$	(59)					$	(76)
Unrecognized net loss (gain)			1,776						2,186						(36)						6
Amount capitalized due to actions of regulator			—						77						—						—
Total regulatory assets (liabilities)			$	1,440					$	1,839					$	(95)					$	(70)

Projected Benefit Obligations and Accumulated Benefit Obligations in Excess of Plan Assets

Information for the pension projected benefit obligation ("PBO") in excess of plan assets and other post-retirement accumulated postretirement benefit obligation ("APBO") has been disclosed in the Obligations and Funded Status table above. The following table provides the pension plan accumulated benefit obligation ("ABO") in excess of plan assets. The other post-retirement plans are unfunded or have no plan assets.

Accumulated Benefit Obligations in Excess of Plan Assets At September 30 (in millions)
			2023						2022
Accumulated benefit obligation			$	10,069					$	10,508
Fair value of net plan assets			8,129						8,094

Components of Net Periodic Benefit Cost

The components of net periodic benefit cost and other amounts recognized as changes in regulatory assets for the years ended September 30, 2023, 2022, and 2021 were as follows:

Components of Net Periodic Benefit Cost For the years ended September 30 (in millions)
			Pension Benefits																		Other Post-Retirement Benefits
			2023						2022						2021						2023						2022						2021
Service cost			$	32					$	53					$	57					$	10					$	17					$	18
Interest cost			568						378						368						18						15						16
Expected return on plan assets			(492)						(435)						(493)						—						—						—
Amortization of prior service credit			(88)						(93)						(97)						(17)						(17)						(18)
Recognized net actuarial loss (gain)			135						392						452						(2)						5						11
Total net periodic benefit cost as actuarially determined			155						295						287						9						20						27
Amount expensed due to actions of regulator			77						13						19						—						—						—
Net periodic benefit cost			$	232					$	308					$	306					$	9					$	20					$	27

Sensitivity to Certain Changes in Pension Assumptions

The following chart reflects the sensitivity of pension cost to changes in certain actuarial assumptions:

Sensitivity to Certain Changes in Pension Assumptions
Actuarial Assumption						Change in Assumption						Impact on 2023 Pension Cost (in millions)						Impact on 2023 Projected Benefit Obligation (in millions)
Discount rate						(0.25)		%				$	12					$	236
Rate of return on plan assets						(0.25)		%				19						N/A
Cost of living adjustments						0.25		%				24						165

Asset Holdings and Fair Value Measurements

At September 30, 2023 and 2022, the asset holdings of TVARS included the following:

Asset Holdings of TVARS
												Plan Assets at September 30
Asset Category						Target Allocation						2023						2022
Growth assets						17		%				22		%				20		%
Defensive growth assets						30		%				33		%				34		%
Defensive assets						33		%				17		%				18		%
Inflation-sensitive assets						20		%				28		%				28		%
Total						100		%				100		%				100		%

Fair Value Measurements

    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2023:

TVA Retirement System At September 30, 2023 (in millions)
			Total(1)(2)						Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Equity securities			$	732					$	731					$	—					$	1
Preferred securities			4						—						4						—
Debt securities
Corporate debt securities			1,109						—						1,107						2
Residential mortgage-backed securities			330						—						323						7
Debt securities issued by U.S. Treasury			602						602						—						—
Debt securities issued by foreign governments			12						—						10						2
Asset-backed securities			173						—						130						43
Debt securities issued by state/local governments			21						—						21						—
Commercial mortgage-backed securities			113						—						108						5
Commingled funds measured at net asset value(3)
Equity			360						—						—						—
Debt			544						—						—						—
Blended			101						—						—						—
Institutional mutual funds			363						363						—						—
Cash equivalents and other short-term investments			315						51						264						—
Private credit funds measured at net asset value(3)			694						—						—						—
Private equity funds measured at net asset value(3)			1,769						—						—						—
Private real asset funds measured at net asset value(3)			1,162						—						—						—
Securities lending collateral			181						—						181						—
Derivatives
Futures			1						1						—						—
Swaps			17						—						17						—
Foreign currency forward receivable			2						—						2						—
Total assets			$	8,605					$	1,748					$	2,167					$	60
Liabilities
Derivatives
Futures			$	5					$	5					$	—					$	—
Swaps			26						—						26						—
Options			1						1						—						—
Securities sold under agreements to repurchase			96						—						96						—
Total liabilities			$	128					$	6					$	122					$	—

Notes

(1)  Excludes approximately $167 million in net payables associated with security purchases and sales and various other payables.

(2)  Excludes a $181 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.

(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been classified in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks.

    The following table provides the fair value measurement amounts for assets held by TVARS at September 30, 2022:

TVA Retirement System At September 30, 2022 (in millions)
			Total(1)(2)						Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)						Significant Other Observable Inputs (Level 2)						Significant Unobservable Inputs (Level 3)
Assets
Equity securities			$	709					$	707					$	—					$	2
Preferred securities			6						1						5						—
Debt securities
Corporate debt securities			1,087						—						1,087						—
Residential mortgage-backed securities			293						—						289						4
Debt securities issued by U.S. Treasury			616						616						—						—
Debt securities issued by foreign governments			130						—						130						—
Asset-backed securities			176						—						136						40
Debt securities issued by state/local governments			23						—						23						—
Commercial mortgage-backed securities			161						—						145						16
Commingled funds measured at net asset value(3)
Equity			436						—						—						—
Debt			657						—						—						—
Blended			111						—						—						—
Institutional mutual funds			454						454						—						—
Cash equivalents and other short-term investments			431						133						298						—
Private credit funds measured at net asset value(3)			522						—						—						—
Private equity funds measured at net asset value(3)			1,454						—						—						—
Private real asset funds measured at net asset value(3)			1,080						—						—						—
Securities lending collateral			196						—						196						—
Derivatives
Futures			5						5						—						—
Swaps			17						—						17						—
Foreign currency forward receivable			2						—						2						—
Total assets			$	8,566					$	1,916					$	2,328					$	62
Liabilities
Derivatives
Futures			$	10					$	10					$	—					$	—
Foreign currency forward payable			1						—						1						—
Swaps			54						—						54						—
Securities sold under agreements to repurchase			111						—						111						—
Total liabilities			$	176					$	10					$	166					$	—

Notes

(1)  Excludes approximately $100 million in net payables associated with security purchases and sales and various other payables.

(2)  Excludes a $196 million payable for collateral on loaned securities in connection with TVARS's participation in securities lending programs.

(3) In accordance with Subtopic 820-10, certain investments that are measured at fair value using the NAV or its equivalent ("alternative investments") have not been classified in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks.

Fair Value Measurements Using Significant Unobservable Inputs

The following table provides a reconciliation of beginning and ending balances of pension plan assets measured at fair value on a recurring basis where the determination of fair value includes significant unobservable inputs (Level 3):

Fair Value Measurements Using Significant Unobservable Inputs (in millions)
			Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
Balance at September 30, 2021			$	74
Net realized/unrealized gains (losses)			(4)
Purchases, sales, issuances, and settlements (net)			2
Transfers in and/or out of Level 3			(10)
Balance at September 30, 2022			62
Net realized/unrealized gains (losses)			1
Purchases, sales, issuances, and settlements (net)			2
Transfers in and/or out of Level 3			(5)
Balance at September 30, 2023			$	60

Estimated Future Benefit Payments

Cash Flows

Estimated Future Benefit Payments.  The following table sets forth the estimated future benefit payments under the benefit plans.

Estimated Future Benefits Payments At September 30, 2023 (in millions)
			Pension Benefits(1)						Other Post-Retirement Benefits
2024			$	809					$	22
2025			814						21
2026			812						21
2027			812						21
2028			809						21
2029 - 2033			3,918						119

Note

(1) Participants are assumed to receive the Fixed Fund in a lump sum in lieu of available annuity options allowed for certain grandfathered participants resulting in higher estimated pension benefits payments.

Amounts recognized on Consolidated Balance Sheets

Amounts Recognized on TVA's Consolidated Balance Sheets At September 30 (in millions)
			2023						2022
Accounts payable and accrued liabilities			$	29					$	29
Post-retirement and post-employment benefit obligations			237						270

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