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Risk Management Activities and Derivative Transactions (Tables)
 3 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of Derivative Instruments That Receive Hedge Accounting Treatment
The following tables summarize the accounting treatment that certain of TVA's financial derivative transactions receive:

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 1) 
Amount of Mark-to-Market Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss)
(in millions)
Three Months Ended December 31
Derivatives in Cash Flow Hedging RelationshipObjective of Hedge TransactionAccounting for Derivative
Hedging Instrument		20232022
Currency swapsTo protect against changes in cash flows caused by changes in foreign currency exchange rates (exchange rate risk)Unrealized gains and losses are recorded in AOCI and reclassified to Interest expense to the extent they are offset by gains and losses on the hedged transaction$20 $71 

Summary of Derivative Instruments That Receive Hedge Accounting Treatment (part 2)(1)
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) to Interest Expense
(in millions)
Three Months Ended December 31
Derivatives in Cash Flow Hedging Relationship20232022
Currency swaps$19 $34 
Note
(1) There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $3 million of gains from Accumulated other comprehensive income (loss) ("AOCI") to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.
 [1]
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Summary of Derivative Instruments That Do Not Receive Hedge Accounting Treatment
Amount of Gain (Loss) Recognized in Income on Derivatives(1)
(in millions)
Three Months Ended December 31
Derivative TypeObjective of DerivativeAccounting for Derivative Instrument20232022
Interest rate swapsTo fix short-term debt variable rate to a fixed rate (interest rate risk)Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively

Realized gains and losses are recognized in Interest expense when incurred during the settlement period and are presented in operating cash flow		$(8)$(15)
Commodity derivatives
under the FHP		To protect against fluctuations in market prices of purchased commodities (price risk)
Mark-to-market gains and losses are recorded as regulatory liabilities and assets, respectively

Realized gains and losses are recognized in Fuel expense or Purchased power expense as the contracts settle to match the delivery period of the underlying commodity(2)
(54)(19)
Notes
(1) All of TVA's derivative instruments that do not receive hedge accounting treatment have unrealized gains (losses) that would otherwise be recognized in income but instead are deferred as regulatory assets and liabilities. As such, there were no related gains (losses) recognized in income for these unrealized gains (losses) for the three months ended December 31, 2023 and for the three months ended December 31, 2022.
(2) Of the amount recognized for the three months ended December 31, 2023, $44 million and $10 million were reported in Fuel expense and Purchased power expense, respectively. Of the amount recognized for three months ended December 31, 2022, $15 million and $4 million were reported in Fuel expense and Purchased power expense, respectively.
Fair Value of TVA Derivatives
Fair Values of TVA Derivatives
(in millions)
 At December 31, 2023At September 30, 2023
Derivatives That Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Currency swaps    
£250 million Sterling
$(56)
Accounts payable and accrued liabilities $(5); Other long-term liabilities $(51)
$(72)
Accounts payable and accrued liabilities $(6); Other long-term liabilities $(66)
£150 million Sterling
(65)
Accounts payable and accrued liabilities $(4); Other long-term liabilities $(61)
(69)
Accounts payable and
accrued liabilities $(4); Other long-term liabilities $(65)
Derivatives That Do Not Receive Hedge Accounting Treatment:
BalanceBalance Sheet PresentationBalanceBalance Sheet Presentation
Interest rate swaps    
$1.0 billion notional$(607)
Accounts payable and
accrued liabilities $(22); Accrued interest $(6);
Other long-term liabilities
$(579)
$(499)
Other current assets $1; Accrued interest $(27); Other long-term liabilities $(473)
$476 million notional(211)
Accounts payable and
accrued liabilities $(8);
Other long-term liabilities
$(203)
(159)
Other current assets $3; Accrued interest $(8);
Other long-term liabilities
$(154)
Commodity contract derivatives29 
Other current assets $19; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1)
31 
Other current assets $21; Other long-term assets $12; Accounts payable and accrued liabilities $(1); Other long-term liabilities $(1)
Commodity derivatives under the FHP(309)
Accounts payable and accrued liabilities $(212); Other long-term liabilities $(97)
(186)
Accounts payable and accrued liabilities $(135); Other long-term liabilities $(51)
Commodity Contract Derivatives
Commodity Contract Derivatives 
 At December 31, 2023At September 30, 2023
 
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of ContractsNotional Amount
Fair Value (MtM)
(in millions)
Natural gas contract derivatives45366 million mmBtu$29 54318 million mmBtu$31 
Offsetting Assets and Liabilities
The amounts of TVA's derivative instruments as reported on the Consolidated Balance Sheets are shown in the table below:
Derivative Assets and Liabilities(1)
(in millions)
 At December 31, 2023At September 30, 2023
Assets
Commodity contract derivatives$31 $33 
Interest rate swaps— 4 
Total derivatives subject to master netting or similar arrangement$31 $37 
Liabilities
Currency swaps$121 $141 
Interest rate swaps(2)
818 662 
Commodity contract derivatives 2 2 
Commodity derivatives under the FHP(3)
309 186 
Total derivatives subject to master netting or similar arrangement$1,250 $991 
Notes
(1) Offsetting amounts include counterparty netting of derivative contracts. Except as discussed below, there were no other material offsetting amounts on TVA's Consolidated Balance Sheets at either December 31, 2023, or September 30, 2023.
(2) Letters of credit of $443 million and $509 million were posted as collateral at December 31, 2023, and September 30, 2023, respectively, to partially secure the
liability positions of one of the interest rate swaps in accordance with the collateral requirements for this derivative.
(3) At December 31, 2023, the gross derivative asset and gross derivative liability were $8 million and $317 million, respectively, with offsetting amounts for each totaling $8 million.
Schedule of Derivative Instruments Commodity Contracts Under FHP
Commodity Derivatives under Financial Hedging Program(1)
At December 31, 2023At September 30, 2023
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Number of Contracts
Notional Amount
Fair Value (MtM)
(in millions)
Natural gas
Swap contracts206351 million mmBtu$(309)221388 million mmBtu$(186)
Note
(1) Fair value amounts presented are based on the net commodity position with the counterparty. Notional amounts disclosed represent the net value of contractual amounts.
[1] There were no amounts excluded from effectiveness testing for any of the periods presented. Based on forecasted foreign currency exchange rates, TVA expects to reclassify approximately $3 million of gains from Accumulated other comprehensive income (loss) ("AOCI") to Interest expense within the next 12 months to offset amounts anticipated to be recorded in Interest expense related to the forecasted exchange loss on the debt.