v3.25.2
Fair Value Measurements (Tables)
 9 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Valuation Techniques
The measurement of fair value results in classification into a hierarchy by the inputs used to determine the fair value as follows:
Level 1—
 
Unadjusted quoted prices in active markets accessible by the reporting entity for identical assets or liabilities.  Active markets are those in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing.
Level 2
 		—
 
Pricing inputs other than quoted market prices included in Level 1 that are based on observable market data and that are directly or indirectly observable for substantially the full term of the asset or liability.  These include quoted market prices for similar assets or liabilities, quoted market prices for identical or similar assets in markets that are not active, adjusted quoted market prices, inputs from observable data such as interest rate and yield curves, volatilities and default rates observable at commonly quoted intervals, and inputs derived from observable market data by correlation or other means.
Level 3—
 
Pricing inputs that are unobservable, or less observable, from objective sources.  Unobservable inputs are only to be used to the extent observable inputs are not available.  These inputs maintain the concept of an exit price from the perspective of a market participant and should reflect assumptions of other market participants.  An entity should consider all market participant assumptions that are available without unreasonable cost and effort.  These are given the lowest priority and are generally used in internally developed methodologies to generate management's best estimate of the fair value when no observable market data is available.
Unrealized Investment Gains (Losses) TVA recorded unrealized gains and losses related to its equity and trading debt securities held during each period as follows:
Unrealized Investment Gains (Losses)(1)
(in millions)
 
Three Months Ended June 30
 Nine Months Ended June 30
FundFinancial Statement Presentation2025202420252024
NDT
Regulatory assets(2)
$200 $(21)$133 $230 
ART
Regulatory assets(3)
97 (4)69 119 
SERPOther income (expense), net5 — (1)9 
DCPOther income (expense), net2 — — 2 
Notes
(1) The unrealized gains for the RP were less than $1 million for both the three and nine months ended June 30, 2025 and for both the three and nine months ended June 30, 2024, and therefore were not represented in the table above.
(2) Includes $41 million and $7 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $12 million of unrealized losses and $70 million of unrealized gains related to NDT equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.
(3) Includes $10 million and $1 million of unrealized gains related to ART equity securities (excluding commingled funds) for the three months ended June 30, 2025 and 2024, respectively. Includes $5 million of unrealized losses and $24 million of unrealized gains related to ART equity securities (excluding commingled funds) for the nine months ended June 30, 2025 and 2024, respectively.
Fair Value Measurements
Fair Value Measurements
At June 30, 2025
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$736 $— $— $736 
Government debt securities(1)(2)
408 44 — 452 
Corporate debt securities(3)
— 379 — 379 
Mortgage and asset-backed securities— 35 — 35 
Institutional mutual funds
352 — — 352 
Forward debt securities contracts— 18 — 18 
Cash equivalents and other short-term investments(2)(4)
48 202 — 250 
Private equity funds measured at net asset value(5)
— — — 868 
Private real asset funds measured at net asset value(5)
— — — 474 
Private credit funds measured at net asset value(5)
— — — 267 
Commingled funds measured at net asset value(5)
— — — 1,446 
Total investments1,544 678 — 5,277 
Commodity contract derivatives— 6 — 6 
Commodity derivatives under the FHP— 24 — 24 
Total$1,544 $708 $— $5,307 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(6)
$— $91 $— $91 
Interest rate swaps— 673 — 673 
Commodity contract derivatives— 5 — 5 
Commodity derivatives under the FHP— 25 — 25 
Total$— $794 $— $794 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $408 million of U.S. Treasury securities in Level 1 Government debt securities and $48 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $456 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $98 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $204 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6) TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Fair Value Measurements
At September 30, 2024
(in millions)
Quoted Prices in Active
 Markets for
Identical Assets
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Assets
Investments    
Equity securities$770 $— $— $770 
Government debt securities(1)(2)
400 57 — 457 
Corporate debt securities(3)
— 378 — 378 
Mortgage and asset-backed securities— 43 — 43 
Institutional mutual funds
342 — — 342 
Forward debt securities contracts
— 11 — 11 
Cash equivalents and other short-term investments(2)(4)
95 183 — 278 
Private equity funds measured at net asset value(5)
— — — 738 
Private real asset funds measured at net asset value(5)
— — — 432 
Private credit funds measured at net asset value(5)
— — — 219 
Commingled funds measured at net asset value(5)
— — — 1,300 
Total investments1,607 672 — 4,968 
Commodity contract derivatives— 7 — 7 
Total$1,607 $679 $— $4,975 
Quoted Prices in Active
Markets for
Identical Liabilities
(Level 1)		Significant Other
Observable Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Liabilities
Currency swaps(6)
$— $116 $— $116 
Interest rate swaps— 840 — 840 
Commodity contract derivatives— 5 — 5 
Commodity derivatives under the FHP— 161 — 161 
Total$— $1,122 $— $1,122 
Notes
(1) Includes obligations of government-sponsored entities.
(2) There are $400 million of U.S. Treasury securities in Level 1 Government debt securities and $95 million of U.S. Treasury securities in Level 1 Cash equivalents and other short-term investments for a total of $495 million of U.S. Treasury securities within Level 1 of the fair value hierarchy.
(3) Includes both U.S. and foreign debt.
(4) Includes $78 million net payables (interest receivable, dividends receivable, receivables for investments sold, and payables for investments purchased), and $174 million of repurchase agreements in Level 2 Cash equivalents and other short-term investments.
(5) Certain investments that are measured at fair value using the NAV or its equivalent (alternative investments) have not been categorized in the fair value hierarchy. The inputs to these fair value measurements include underlying NAVs, discounted cash flow valuations, comparable market valuations, estimated benchmark yields, and adjustments for currency, credit, liquidity, and other risks. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented on the Consolidated Balance Sheets.
(6)  TVA records currency swaps net of cash collateral received from or paid to the counterparty, to the extent such amount is not recorded in Accounts payable and accrued liabilities. See Note 14 — Risk Management Activities and Derivative Transactions — Offsetting of Derivative Assets and Liabilities.
Estimated Values of Financial Instruments Not Recorded at Fair Value The estimated values of TVA's financial instruments not recorded at fair value at June 30, 2025, and September 30, 2024, were as follows:
Estimated Values of Financial Instruments Not Recorded at Fair Value
(in millions)
 At June 30, 2025At September 30, 2024
 Valuation ClassificationCarrying
Amount		Fair
Value		Carrying
Amount		Fair
Value
EnergyRight® receivables, net (including current portion)
Level 2$56 $56 $56 $56 
Loans and other long-term receivables, net (including current portion)Level 2114 108 105 99 
EnergyRight® financing obligations (including current portion)
Level 265 73 66 74 
Membership interests of VIEs subject to mandatory redemption (including current portion)Level 216 18 17 19 
Long-term outstanding power bonds, net (including current maturities)Level 220,599 20,483 18,889 19,416 
Long-term debt of VIEs, net (including current maturities)Level 21,699 1,693 934 966