TVA Sales Flat In First Quarter 2013, Revenues Consistent With Prior Year

Tuesday, February 5, 2013

The Tennessee Valley Authority reported Tuesday that electricity sales were relatively flat in the first quarter of fiscal year 2013, total revenues were consistent with the prior year and net income was down.

“TVA’s total operating revenues remain on plan,” new President and CEO Bill Johnson said. “We continue to drive performance and process improvements in order to provide cleaner and low-cost energy to our customers.”

Higher off-system sales as a result of excess generation and closer to normal temperatures for the period, compared with even warmer weather a year ago, contributed to a slight 0.2 percent increase in total electricity sales, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the three months ended Dec. 31, 2012.

Sales to TVA’s municipal and cooperative power distributors were up primarily due to the weather. Offsetting these increases were lower sales to directly served industrial customers.

Operating revenues were $11 million higher compared with last year. The increase was primarily due to an $82 million increase in fuel cost recovery and a $14 million increase in other revenue sources, partially offset by an $85 million decrease in base revenue. TVA is transitioning to time-of-use rate structures with its customers, which may result in reduced overall effective base rates in certain periods and higher rates in others.

“As expected, the change in rate products is better aligning rates with the cost of service. We are seeing reduced base rates during transition months and winter months, and expect to see higher revenues during the summer months,” Chief Financial Officer John Thomas said. “However, cost-savings actions we took last year have positioned TVA to remain financially healthy throughout the year.”

Total operating expenses were four percent higher than the same period last year, driven primarily by a 24 percent increase in fuel expenses. Offsetting the higher fuel expense was a 23 percent decline in purchased power expenses, as TVA used more of its own generation sources to meet demand. Operating and maintenance expense increased by $39 million, or four percent, in the first quarter of 2013. This increase was primarily driven by a $111 million increase for nuclear refueling outages in the first quarter, compared with no refueling outages in the same period last year. Partially offsetting this increase was a $49 million decline in coal-fired operation outage and project expenses.

TVA reported a net loss of $245 million on operating revenues of $2.58 billion in the first quarter of 2013, compared with a net loss of $173 million on revenues of $2.57 billion in the same period last year.           

TVA executive management will host a first quarter fiscal year 2013 financial conference call at 9:30 a.m. on Tuesday. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com/finance. For quick access to the live conference call, pre-register by going to TVA’s website before the scheduled start time and follow the instructions provided. Once pre-registered, the dial-in number will be provided via an email. If you are unable to pre-register, you may access the conference call by dialing toll free 877 270-2148 in the United States or in Canada, or 412 902-6510 outside the United States. A replay will be available one hour after the end of the conference call until 5 p.m., Feb. 12, by calling toll free 877 344-7529 in the United States or 412 317-0088 outside the United States and using the conference number 10023947. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance

TVA’s quarterly report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended Dec. 31, 2012, and is available to investors and the public. TVA SEC reports are also available without charge on TVA’s website at http://www.tva.com/finance or on the SEC’s website at http://www.sec.gov or by calling TVA toll free at 888 882-4975.



Last Chattanooga Downtown Shoe Shop Closing

Kenton Shoe Shop at 802 Broad Street is closing. The owner, Reginald Cousin, 73, said the building has been purchased, and "he doesn't want to move again." Mr. Cousin said he's "nervous about retiring" because he likes to keep busy...but he said he does have a few things in mind for the future. He said his nephew is buying his well-worn, well-loved equipment and is going ... (click for more)

Business After Hours And Ridgeland High School Artists Reception Will Be May 12

The Walker County Chamber will host the Business After Hours and the Ridgeland High School Artists Reception – Hometown Teams: How Sports Shape America celebrates the connection between Amercians and sports in our heritage. The event will be at the 6th Cavalry Museum on May 12, from 4-6 p.m. Hometown Teams captures the stories that unfold on the neighborhood fields and courts, ... (click for more)

Dewayne Ray Burns Wanted After Firing Shots At Fort Oglethorpe Police Officers

Dewayne Ray Burns is wanted after police in North Georgia were led on a chase, and he fired shots at officers. Burns fired shots in their direction late Thursday night. The Georgia Bureau of Investigation and the Fort Oglethorpe Police Department are investigating the incident. According to park rangers on the scene, the Burns ran away, while firing shots in the direction ... (click for more)

Bradley County Sheriff Eric Watson Hospitalized; 2 Cleveland Police Officers Injured After Altercation With Man With History Of Assaults

Bradley County Sheriff Eric Watson and two Cleveland Police officers were injured Thursday while intervening in a domestic assault in progress. While driving on 25 th St. N.W. Sheriff Watson witnessed the assault, it was stated. When the sheriff tried to intervene, the man involved in the assault attacked him. During the scuffle the man struck Sheriff Watson numerous times, ... (click for more)

Jill Levine Is An Educational Rock Star

No one has covered the Hamilton County Department of Education drama better than Roy Exum.  Thank you, Roy, but I take issue with your unnamed sources.  Professional jealousy and sour grape darts should not be anonymous.   HCDE is so dysfunctional, and there is good cause to place this public organization under a microscope, dissect it into pieces and discard all ... (click for more)

Roy Exum: Cancer Is Not A Battle

I read a marvelous essay not long ago where the author urged, “Stop telling the lie that cancer is a battle … a battle implies a fair fight, and there was nothing fair about my cancer or the cancer that took the life of my friend. Those experiences were about as fair as getting hit by a car – and nobody says people lose their battles with automobiles.” Mary Elizabeth Williams, ... (click for more)