TVA Board Meeting - FY24 Financial plan and budget- Reso-Memo
∑ Fuel cost adjustment – Amounts in the fuel cost adjustment regulatory accounts represent over-collections or under-collections that have not yet been refunded or recovered in rates as well as amounts that will be paid to the states for tax equivalents. These amounts are collected or refunded in subsequent months’ fuel rate adjustments. ∑ Debt reacquisition costs – Amounts related to debt reacquisition costs, call premiums, or other related costs are recovered on a straight-line basis over the weighted average life of the company’s debt portfolio. ∑ Retirement removal costs (non-legally required costs) – Retirement removal costs, net of related salvage proceeds, are capitalized as incurred and recovered in rates over one year subsequent to project completion. ∑ Deferred lease asset and other financing obligation asset costs – Certain lease and other financing obligation costs are deferred and recovered in rates over the respective arrangement terms as lease or other financing obligation payments are made. ∑ Environmental agreements – Amounts associated with the environmental agreements entered into with the EPA and with Alabama, Kentucky, North Carolina, Tennessee, the Sierra Club, the National Parks Conservation Association, and Our Children’s Earth Foundation are included in rates as project payments are made and project costs are expensed. ∑ Costs associated with compliance with an order, regulation, settlement, or lawsuit, or costs associated with environmental remediation activities –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 ground water activities, may be deferred as a regulatory asset. These deferred costs will be recovered in rates as costs are incurred or based on the average life of debt financed to fund actual expenditures. Material events to be recovered under this approval will be reported to the Audit, Finance, Risk, and Cybersecurity Committee and/or the full Board prior to the issuance of TVA’s quarterly or annual financial statements.
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