XML 41 R20.htm IDEA: XBRL DOCUMENT v3.24.0.1
Debt and Other Obligations
 3 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
Debt Outstanding

Total debt outstanding at December 31, 2023, and September 30, 2023, consisted of the following:
Debt Outstanding 
(in millions)
 At December 31, 2023At September 30, 2023
Short-term debt  
Short-term debt, net of discounts$1,042 $432 
Current maturities of power bonds issued at par1,022 1,022 
Current maturities of long-term debt of VIEs issued at par35 35 
Total current debt outstanding, net2,099 1,489 
Long-term debt  
Long-term power bonds(1)
17,990 17,970 
Long-term debt of VIEs, net933 933 
Unamortized discounts, premiums, issue costs, and other(123)(126)
Total long-term debt, net18,800 18,777 
Total debt outstanding$20,899 $20,266 
Note
(1) Includes total net exchange gain from currency transactions of $88 million and $109 million at December 31, 2023, and September 30, 2023, respectively.

Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2023, to December 31, 2023:
Debt Securities Activity
 Date
Amount
(in millions)
Redemptions/Maturities(1)
 
2009 Series BDecember 2023$1 
Total redemptions/maturities of debt$1 
Note
(1) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA has funding available under four long-term revolving credit facilities totaling $2.7 billion. See the 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 December 31, 2023, and September 30, 2023, there were $469 million and $535 million, respectively, of letters of credit outstanding under these facilities, and there were no borrowings outstanding. TVA's letters of credit are primarily posted as collateral under TVA's interest rate swaps. See Note 13 — Risk Management Activities and Derivative Transactions — Other Derivative Instruments — Collateral. TVA may also post collateral for TVA's currency swaps, for commodity derivatives under the Financial Hedging Program ("FHP"), or for certain transactions with third parties that require TVA to post letters of credit.

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 December 31, 2023
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
February 2025$500 $223 $— $277 
March 2026150 38 — 112 
September 20261,000 112 — 888 
March 20271,000 96 — 904 
Total$2,650 $469 $— $2,181 

TVA and the United States ("U.S.") Department of the Treasury ("U.S. Treasury"), pursuant to the Tennessee Valley Authority Act of 1933, as amended ("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 2024 with a maturity date of September 30, 2024. 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, notes, or other evidences of indebtedness (collectively, "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 December 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.