TVA records certain assets and liabilities that result from the regulated ratemaking process that would not be recorded under GAAP for non-regulated entities. As such, certain items that would generally be reported in earnings or that would impact the Consolidated Statements of Operations are recorded as regulatory assets or regulatory liabilities. Regulatory assets generally represent incurred costs that have been deferred because such costs are probable of future recovery in customer rates. Regulatory liabilities generally represent obligations to make refunds to customers for previous collections for costs that are not likely to be incurred or deferral of gains that will be credited to customers in future periods. Components of regulatory assets and regulatory liabilities are summarized in the table below.


Regulatory Assets and Liabilities (in millions)
	At June 30, 2025		At September 30, 2024
Current regulatory assets
Unrealized losses on commodity derivatives	$	22	$	102
Unrealized losses on interest rate derivatives	51		54



Fuel cost adjustment receivable	79		35

Total current regulatory assets	152		191

Non-current regulatory assets
Non-nuclear decommissioning costs	6,135		6,187
Retirement benefit plans deferred costs	1,915		1,979

Nuclear decommissioning costs	276		362
Unrealized losses on interest rate derivatives	321		447

Environmental compliance and remediation costs	313		215
Unrealized losses on commodity derivatives	8		64

Other non-current regulatory assets	169		154
Total non-current regulatory assets	9,137		9,408
Total regulatory assets	$	9,289	$	9,599

Current regulatory liabilities
Fuel cost adjustment tax equivalents	$	189	$	169

Unrealized gains on commodity derivatives	13		5
Total current regulatory liabilities	202		174

Non-current regulatory liabilities
Retirement benefit plans deferred credits	68		81
Unrealized gains on commodity derivatives	17		2
Total non-current regulatory liabilities	85		83
Total regulatory liabilities	$	287	$	257