Regulatory Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2024

Regulatory Assets and Liabilities Disclosure [Abstract]

Components of regulatory assets and regulatory liabilities are summarized in the table below.


Regulatory Assets and Liabilities (in millions)
	At March 31, 2024		At September 30, 2023
Current regulatory assets

Unrealized losses on interest rate derivatives	$	37	$	31

Unrealized losses on commodity derivatives	191		136


Fuel cost adjustment receivable	2		11

Total current regulatory assets	230		178

Non-current regulatory assets
Retirement benefit plans deferred costs	1,435		1,440
Non-nuclear decommissioning costs	2,985		2,922

Unrealized losses on interest rate derivatives	369		272
Nuclear decommissioning costs	457		728

Unrealized losses on commodity derivatives	80		52

Environmental compliance and remediation costs	62		—
Other non-current regulatory assets	152		152
Total non-current regulatory assets	5,540		5,566
Total regulatory assets	$	5,770	$	5,744

Current regulatory liabilities
Fuel cost adjustment tax equivalents	$	186	$	201
Fuel cost adjustment payable	11		—
Unrealized gains on commodity derivatives	10		21
Total current regulatory liabilities	207		222

Non-current regulatory liabilities
Retirement benefit plans deferred credits	86		95
Unrealized gains on commodity derivatives	8		12
Total non-current regulatory liabilities	94		107

Total regulatory liabilities	$	301	$	329

Environmental Compliance and Remediation Costs. TVA uses regulatory accounting for certain amounts associated with compliance with an order, regulation, settlement, or lawsuit, or certain costs associated with environmental remediation activities, including but not limited to those involving environmental cleanup activities and groundwater activities. Costs will be recovered in rates based on the average life of debt financed to fund actual expenditures.