TVA Cuts Losses, But Still Has $67 Million Shortfall For 1st Quarter

Tuesday, February 04, 2014
The Tennessee Valley Authority reported Tuesday that operating expenses declined and its bottom line results improved in the first quarter of fiscal year 2014 compared with the same quarter a year ago.

“Our efforts to keep rates low and reliability high for our customers by working more efficiently helped to offset lower sales and revenues reported in the first quarter of 2014,” TVA President and CEO Bill Johnson said.

TVA reported a $67 million net loss on operating revenues of $2.
38 billion in the first quarter of 2014, an improvement over a $245 million loss on revenues of $2.58 billion for the same period last year.

TVA’s first-quarter filing to the U.S. Securities and Exchange Commission covered the three months ended Dec. 31, 2013, a period between summer and winter when lower demand for electricity typically results in a net loss.

Compared with last year, operating and maintenance expenses were down $112 million, or 12 percent, in the first quarter of 2014. This was driven by a $91 million decrease in expenses from planned outages, projects and scheduled maintenance, and a reduction in contract labor through cost-saving initiatives. A $10 million increase in coal-fired operation outages partially offset the O&M savings.

“We continued to see positive results from our efforts to achieve sustainable operating and maintenance cost reductions during the first quarter,” Chief Financial Officer John Thomas said. “The actions we are taking now help position TVA to remain financially healthy and meet our goal of reliable, low-cost and cleaner energy for the people of the Valley.”

Total operating expenses were 14 percent lower than the same period last year, driven primarily by a 32 percent decrease in fuel expenses. TVA’s nuclear and hydroelectric generation increased 29 percent and 30 percent, respectively, compared to the first quarter of last year, helping to drive the lower fuel costs. A 2 percent increase in purchased power expense also partially offset higher gas prices.

Operating revenues, impacted by lower fuel recovery costs, were $197 million lower compared with last year’s first quarter. TVA’s use of less-expensive nuclear and hydroelectric generation helped reduce fuel costs recovered through rates by $255 million, a decrease partially offset by a $60 million increase in base revenue.

"We were pleased to see such strong performance from our nuclear and hydro power assets and our entire fleet during the quarter, helping us provide low-cost reliable power,” said Mr. Johnson. “This demonstrates the value and flexibility of TVA’s well-diversified power system.”

Total electricity sales were down three percent for the quarter, primarily due to the loss of TVA’s largest directly served customer. But sales to local power companies were seven percent higher as a result of cooler weather than a year ago and some growth in electric demand.

TVA executive management will host a first quarter fiscal year 2014 financial conference call at 9 a.m. EST on Tuesday, Feb. 4. The conference call webcast can be accessed on TVA’s website at http://www.tva.com/finance. For quick access to the live conference call, please pre-register now 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 9 a.m. EST, Feb. 18, 2014, by calling toll free (877) 344-7529 in the United States or (412) 317-0088 outside the United States and using the conference number 10039735. 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, 2013, 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.

(This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to TVA’s quarterly report on Form 10-Q and annual report on Form 10-K for a discussion of factors that could cause actual results to differ from those in the forward-looking statements.)

Weaver Named BlueCross Director Of Infrastructure Engineering Services

BlueCross BlueShield of Tennessee has named Jennifer Weaver as director of infrastructure engineering services. She was previously director of the office of the chief information officer for BlueCross. In her new role, Weaver is responsible for the company’s infrastructure engineering teams. She will report to David Marckel, vice president of infrastructure and operations within ... (click for more)

Kingston Ash Recovery Project Nears Completion

The TVA is in the final stages of the Kingston recovery project, fulfilling a promise to restore the area surrounding the Kingston Fossil Plant near Harriman, Tenn. following the coal ash spill in December 2008. A milestone was reached in early December, with the completion of the cover for a 240-acre permanent ash retention landfill. The new landfill, which has been fortified ... (click for more)

Erlanger To Proceed With Manager Bonuses In 2 Steps; Considering Employee Performance Incentive Plan

Erlanger President and CEO Kevin Spiegel said Wednesday night that the hospital plans to proceed with $1.7 million in manager bonuses in two steps. Current participants in the incentive program will receive 50 percent of the approved 2014 performance plan this month. The remaining 50 percent will be paid to the management group in July 2015. At the same time, Mr. Spiegel ... (click for more)

Caldwell Arrested In Rapes Of 2 Women Over 60 In Brainerd, Hixson

Investigators have made an arrest in the rape cases that were reported last weekend. Taken into custody was Derrick Dewayne Caldwell, 30. He is charged with two counts of aggravated rape and two counts of aggravated burglary. Police said two women over 60 years old were raped in Brainerd and in Hixson in separate incidents. (click for more)

A Letter To The NAACP

I believe when a "unarmed" man is evil, he will try to beat a police officer on his head in hopes to knock him out, in hopes to kill him. We saw the bruises on the officer's face.  This evil force tried to take his gun away from him , Proof was in the autopsy.  Why did Michael Brown  try to take his gun away from him? Exactly, to kill the officer.  ... (click for more)

Roy Exum: The Last Day Of School

AUTHOR’S NOTE: This story first appeared in the Chattanooga News-Free Press in the early 1980s and every year since then I have been asked repeatedly about it. It is easily the most famous story I have ever written – copies have been sent to me from numerous foreign countries -- and it may be the easiest story I ever wrote. All I did was write what the noted religious psychologist ... (click for more)