Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.

The Tennessee Valley Authority ("TVA") entered into an agreement on August 6, 2012, to issue $1.0 billion of TVA's 1.875% Global Power Bonds 2012 Series A Due August 15, 2022 (the "Bonds"). The settlement date for the transaction is August 9, 2012. The Bonds bear a coupon rate of 1.875% and pay interest semi-annually on each February 15 and August 15, beginning February 15, 2013. The Bonds mature on August 15, 2022, and are not subject to redemption prior to maturity. After reflecting the transaction's discount and after deducting the fees of the managers, net proceeds to TVA are $987,970,000, exclusive of out-of-pocket expenses incurred in connection with offering the Bonds.