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Fair Value Measurements (Tables) - USD ($) $ in Millions | 12 Months Ended
--- | ---
Sep. 30, 2024 | Sep. 30, 2023
Fair Value Disclosures [Abstract] |  |
Transfers Accounted for as Secured Borrowings, Assets, Carrying Amount | $ 56 | $ 55
Valuation Techniques | The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:
Level 1 | — |  | Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities. Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2 | — |  | Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability. These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3 | — |  | Pricing inputs that are unobservable, or less observable, from objective sources. Unobservable inputs are only to be used to the extent observable inputs are not available. These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants. An entity should consider all market participant assumptions that are available without unreasonable cost and effort. These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.
Unrealized Investment Gains (Losses) | TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)(1) For the years ended September 30 (in millions)
Fund | Financial Statement Presentation |  | 2024 |  | 2023
NDT | Regulatory assets(2) |  | $ | 324 |  |  | $ | 162 |
ART | Regulatory assets(3) |  | 171 |  |  | 96 |
SERP | Other income (expense) |  | 14 |  |  | 6 |
DCP | Other income (expense) |  | 2 |  |  | 1 |
Notes (1) The unrealized losses for the RP were less than $1 million for both the years ended September 30, 2024 and 2023 and therefore were not represented in the table above. (2) Includes $93 million of unrealized gains and $27 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the years ended September 30, 2024 and 2023, respectively. (3) Includes $36 million of unrealized gains and $13 million of unrealized gains related to ART equity securities (excluding commingled funds) for the years ended September 30, 2024 and 2023, respectively. |
Fair Value Measurements |  |
Fair Value Measurements At September 30, 2024 (in millions)
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |
Equity securities | $ | 770 |  |  | $ | — |  |  | $ | — |  |  | $ | 770 |
Government debt securities(1)(2) | 400 |  |  | 57 |  |  | — |  |  | 457 |
Corporate debt securities(4) | — |  |  | 378 |  |  | — |  |  | 378 |
Mortgage and asset-backed securities | — |  |  | 43 |  |  | — |  |  | 43 |
Institutional mutual funds | 342 |  |  | — |  |  | — |  |  | 342 |
Forward debt securities contracts | — |  |  | 11 |  |  | — |  |  | 11 |
Cash equivalents and other short-term investments(2)(3) | 95 |  |  | 183 |  |  | — |  |  | 278 |
Private equity funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 738 |
Private real asset funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 432 |
Private credit funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 219 |
Commingled funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 1,300 |
Total investments | 1,607 |  |  | 672 |  |  | — |  |  | 4,968 |
Interest rate swaps | — |  |  | — |  |  | — |  |  | — |
Commodity contract derivatives | — |  |  | 7 |  |  | — |  |  | 7 |
Total | $ | 1,607 |  |  | $ | 679 |  |  | $ | — |  |  | $ | 4,975 |
| Quoted Prices in Active Markets for Identical Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Liabilities |  |  |  |  |  |  |
Currency swaps(6) | $ | — |  |  | $ | 116 |  |  | $ | — |  |  | $ | 116 |
Interest rate swaps | — |  |  | 840 |  |  | — |  |  | 840 |
Commodity contract derivatives | — |  |  | 5 |  |  | — |  |  | 5 |
Commodity derivatives under the FHP | — |  |  | 161 |  |  | — |  |  | 161 |
Total | $ | — |  |  | $ | 1,122 |  |  | $ | — |  |  | $ | 1,122 |
Notes (1) Includes obligations of government-sponsored entities. (2) There are $400 million of U.S. Treasury securities in Level 1 Government debt securities and $95 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $495 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) Includes $78 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $174 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments. (4) Includes both U.S. and foreign debt. (5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements At September 30, 2023 (in millions)
| Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Assets |  |  |  |  |  |  |
Investments |  |  |  |  |  |  |
Equity securities | $ | 608 |  |  | $ | — |  |  | $ | — |  |  | $ | 608 |
Government debt securities(1)(2) | 287 |  |  | 60 |  |  | — |  |  | 347 |
Corporate debt securities(4) | — |  |  | 300 |  |  | — |  |  | 300 |
Mortgage and asset-backed securities | — |  |  | 36 |  |  | — |  |  | 36 |
Institutional mutual funds | 288 |  |  | — |  |  | — |  |  | 288 |
Forward debt securities contracts | — |  |  | 11 |  |  | — |  |  | 11 |
Cash equivalents and other short-term investments(2)(3) | 104 |  |  | 166 |  |  | — |  |  | 270 |
Private equity funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 583 |
Private real asset funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 387 |
Private credit funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 158 |
Commingled funds measured at net asset value(5) | — |  |  | — |  |  | — |  |  | 1,135 |
Total investments | 1,287 |  |  | 573 |  |  | — |  |  | 4,123 |
Interest rate swaps | — |  |  | 4 |  |  | — |  |  | 4 |
Commodity contract derivatives | — |  |  | 33 |  |  | — |  |  | 33 |
Total | $ | 1,287 |  |  | $ | 610 |  |  | $ | — |  |  | $ | 4,160 |
| Quoted Prices in Active Markets for Identical Liabilities (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3) |  | Total
Liabilities |  |  |  |  |  |  |
Currency swaps(6) | $ | — |  |  | $ | 141 |  |  | $ | — |  |  | $ | 141 |
Interest rate swaps | — |  |  | 662 |  |  | — |  |  | 662 |
Commodity contract derivatives | — |  |  | 2 |  |  | — |  |  | 2 |
Commodity derivatives under the FHP | — |  |  | 186 |  |  | — |  |  | 186 |
Total | $ | — |  |  | $ | 991 |  |  | $ | — |  |  | $ | 991 |
Notes (1) Includes obligations of government-sponsored entities. (2) There are $287 million of U.S. Treasury securities in Level 1 Government debt securities and $104 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $391 million of U.S. Treasury securities within Level 1 of the fair value hierarchy. (3) Includes $73 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased). (4) Includes both U.S. and foreign debt. (5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets. (6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 15 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Estimated Values of Financial Instruments Not Recorded at Fair Value | The estimated values of TVA's financial instruments not recorded at fair value at September 30, 2024 and 2023, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value (in millions)
|  |  | At September 30, 2024 |  | At September 30, 2023
| Valuation Classification |  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
EnergyRight® receivables, net (including current portion) | Level 2 |  | $ | 56 |  |  | $ | 56 |  |  | $ | 59 |  |  | $ | 55 |
Loans and other long-term receivables, net (including current portion) | Level 2 |  | 105 |  |  | 99 |  |  | 104 |  |  | 96 |
EnergyRight® financing obligations (including current portion) | Level 2 |  | 66 |  |  | 74 |  |  | 69 |  |  | 81 |
Unfunded loan commitments | Level 2 |  | — |  |  | — |  |  | — |  |  | 1 |
Membership interests of VIEs subject to mandatory redemption (including current portion) | Level 2 |  | 17 |  |  | 19 |  |  | 18 |  |  | 19 |
Long-term outstanding power bonds, net (including current maturities) | Level 2 |  | 18,889 |  |  | 19,416 |  |  | 18,866 |  |  | 17,963 |
Long-term debt of VIEs, net (including current maturities) | Level 2 |  | 934 |  |  | 966 |  |  | 968 |  |  | 927 |

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