Asset Retirement Obligations

9 Months Ended

Jun. 30, 2023

Asset Retirement Obligation Disclosure [Abstract]

During the nine months ended June 30, 2023, TVA's total asset retirement obligations ("ARO") liability decreased $40 million as a result of settlements related to retirement projects that were conducted during the period, partially offset by periodic accretion. The nuclear and non-nuclear accretion amounts were deferred as regulatory assets. During the nine months ended June 30, 2023, $141 million of the related regulatory assets were amortized into expense as these amounts were collected in rates. See Note 8 — Regulatory Assets and Liabilities. TVA maintains investment trusts to help fund its decommissioning obligations. See Note 14 — Fair Value Measurements — Investment Funds and Note 20 — Contingencies and Legal Proceedings — Contingencies — Decommissioning Costs for a discussion of the trusts' objectives and the current balances of the trusts.


Asset Retirement Obligation Activity
	Nuclear		Non-Nuclear		Total
Balance at September 30, 2022	$	3,643	$	3,519	$	7,162	(1)
Settlements	—		(195)		(195)
Revisions in estimate	6		(28)		(22)


Accretion (recorded as regulatory asset)	124		53		177

Balance at June 30, 2023	$	3,773	$	3,349	$	7,122	(1)

Note

(1) Includes $262 million and $275 million at June 30, 2023, and September 30, 2022, respectively, in Current liabilities.