Acquisition (Notes)

9 Months Ended

Jun. 30, 2015

Business Combinations [Abstract]

Acquisition

Acquisition

On April 14, 2015, TVA acquired a 700-megawatt combined-cycle gas plant located in Ackerman, Mississippi, from Quantum Choctaw Power, an affiliate of Quantum Utility Generation.  TVA has purchased the electricity generated by the plant since 2008.  TVA acquired the plant for total cash consideration of $342 million. The plant is located within TVA's service area and is already connected to TVA's transmission grid. The plant is expected to provide greater transmission flexibility and system reliability as TVA retires older, coal-burning units. The facility has been renamed Ackerman Combined Cycle Plant. The purchase price allocation of the fair value of the assets acquired consisted of $333 million of Completed plant, $6 million of Other long-term assets, and $3 million of Inventories, net.Transaction costs were expensed as incurred and were not material.