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Debt and Other Obligations
 6 Months Ended
Mar. 31, 2023
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
Debt Outstanding

Total debt outstanding at March 31, 2023, and September 30, 2022, consisted of the following:
Debt Outstanding 
(in millions)
 At March 31, 2023At September 30, 2022
Short-term debt  
Short-term debt, net of discounts$572 $1,172 
Current maturities of power bonds issued at par29 29 
Current maturities of long-term debt of VIEs issued at par35 39 
Total current debt outstanding, net636 1,240 
Long-term debt  
Long-term power bonds(1)
18,997 17,950 
Long-term debt of VIEs, net951 968 
Unamortized discounts, premiums, issue costs, and other(132)(124)
Total long-term debt, net19,816 18,794 
Total debt outstanding$20,452 $20,034 
Note
(1) Includes net exchange gain from currency transactions of $103 million and $150 million at March 31, 2023, and September 30, 2022, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2022, to March 31, 2023:
Debt Securities Activity
 Date
Amount
(in millions)
Issues
2023 Series A(1)
March 2023$1,000 
Discount on debt issues(8)
Total long-term debt issues$992 
Redemptions/Maturities(2)
 
 2009 Series BDecember 2022$1 
Total redemptions/maturities of power bonds1 
Debt of variable interest entities22 
Total redemptions/maturities of debt$23 
Notes
(1) The 2023 Series A Bonds were issued at 99.187 percent of par.
(2) 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. See table below for additional information on the four long-term revolving credit facilities. 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 March 31, 2023, and September 30, 2022, there were approximately $569 million and $704 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. See Note 13 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral and Note 19 — Collaborative Arrangement.
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 March 31, 2023
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
March 2026(1)
$150 $38 $— $112 
February 2025500 302 — 198 
September 20261,000 93 — 907 
March 20271,000 136 — 864 
Total$2,650 $569 $— $2,081 
Note
(1) During the second quarter of 2023, TVA extended the maturity date from February 9, 2024 to March 29, 2026.
    
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 2023 with a maturity date of September 30, 2023. 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 March 31, 2023. 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. There were no outstanding leaseback obligations related to the remaining CTs and QTE at March 31, 2023 and September 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. In December 2021, TVA gave notice of its election to acquire the leasehold interests related to the remaining eight CTs for a total of $155 million. One associated acquisition closed in December 2022 for $78 million. As a result, TVA recorded the cash consideration as reacquired rights, which is an intangible asset included in Completed plant on the Consolidated Balance Sheet. The amount will be amortized over the remaining estimated useful life of the underlying CTs. TVA recognized approximately $1 million of amortization expense related to the reacquired rights within the Consolidated Statement of Operations for the six months ended March 31, 2023. Transaction costs were not material. The estimated amortization expense for the remainder of 2023 is $1 million and will be $3 million annually from the beginning of 2024 through December 2052. The other acquisition is expected to close in May 2023.