v3.25.2
Debt and Other Obligations
 9 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
Debt and Other Obligations Debt and Other Obligations
Debt Outstanding

Total debt outstanding at June 30, 2025, and September 30, 2024, consisted of the following:
Debt Outstanding 
(in millions)
 At June 30, 2025At September 30, 2024
Short-term debt  
Short-term debt, net of discounts$319 $1,167 
Current maturities of power bonds issued at par1,370 1,022 
Current maturities of long-term debt of VIEs issued at par48 37 
Total current debt outstanding, net1,737 2,226 
Long-term debt  
Long-term power bonds(1)
19,389 17,995 
Long-term debt of VIEs, net1,651 897 
Unamortized discounts, premiums, issue costs, and other(160)(128)
Total long-term debt, net20,880 18,764 
Total debt outstanding$22,617 $20,990 
Note
(1) Includes total net exchange gain from currency transactions of $48 million and $62 million at June 30, 2025, and September 30, 2024, respectively.
Debt Securities Activity

The table below summarizes the long-term debt securities activity for the period from October 1, 2024, to June 30, 2025:
Debt Securities Activity
 Date
Amount
(in millions)
Issues
Debt of variable interest entitiesOctober 2024$800 
2025 Series A(1)
February 20251,250 
2025 Series B(2)
May 20251,500 
Discount on debt issues(28)
Total long-term debt issues$3,522 
Redemptions/Maturities(3)
 
2009 Series BDecember 2024$1 
2020 Series AMay 20251,000 
2009 Series BJune 202521 
Total redemptions/maturities of power bonds1,022 
Debt of variable interest entities23 
Total redemptions/maturities of debt$1,045 
Notes
(1) The 2025 Series A Bonds were issued at 98.517 percent of par.
(2) The 2025 Series B Bonds were issued at 99.360 percent of par.
(3) All redemptions were at 100 percent of par.

Credit Facility Agreements

TVA has funding available under four revolving credit facilities totaling $2.7 billion. See the table below for additional information on the four 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 June 30, 2025, and September 30, 2024, there were $517 million and $566 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 14 — 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 revolving credit facilities:
Summary of Credit Facilities
At June 30, 2025
(in millions)
Maturity DateFacility LimitLetters of Credit OutstandingCash BorrowingsAvailability
March 2026$150 $38 $— $112 
September 20261,000 71 — 929 
March 20271,000 194 — 806 
February 2028500 214 — 286 
Total$2,650 $517 $— $2,133 

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 2025 with a maturity date of September 30, 2025. 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 June 30, 2025. The availability of this credit facility may be impacted by how the U.S. government addresses the possibility of approaching its debt limit.