TVA’s Financial Position Strong Through First 3 Quarters Of FY2018

Friday, August 3, 2018

The Tennessee Valley Authority Friday reported $8.0 billion in operating revenues through the nine-month period ended June 30, a five percent increase from the same period a year ago. The higher revenues were driven by a six percent increase in electricity sales, primarily due to weather conditions.

Total operating expenses through the third quarter of fiscal year 2018 decreased four percent as compared to the same period in fiscal year 2017 due to a continued focus on reducing operating and maintenance expense and fuel expense. 

“The strong performance of TVA’s nuclear and hydroelectric assets is playing a significant role in keeping power rates low for customers in 2018,” said Bill Johnson, TVA president and chief executive officer. “TVA has one of the cleanest, most diverse and most reliable power fleets in the entire nation - and we are seeing the benefits of that on the bottom line, with significantly lower operating expenses.” 

Operating and maintenance expense for the first nine months of the fiscal year was down $85 million, or four percent lower compared to the same period last year, mostly driven by a decrease in planned outage days and an increase in workforce efficiencies. 

Fuel expense was down $68 million, or four percent below the same period last year, due to the impact of lower effective fuel rates caused by lower market prices for natural gas and more hydroelectric and gas generation. 

“The major changes in TVA’s operations and power system we’ve implemented as part of our long-range financial plan are showing the positive results we expected in 2018,” said John Thomas, TVA chief financial officer. 

“We have significantly improved performance, reduced costs, and made progress in reducing debt. These benefits will only accelerate as we continue to follow our plan.” 

Additional highlights of TVA’s third quarter fiscal year 2018 results include: 

Net income for the nine months ended June 30, 2018, was $1.2 billion, up 123 percent from net income of $546 million for the same period of fiscal year 2017. 

TVA’s service territory experienced overall warmer-than-normal weather during the third quarter of 2018, as cooling degree days measured 36 percent above normal during the period. 

TVA's economic development efforts continue to attract and encourage the expansion of business in the Tennessee Valley, with over $10.2 billion in investments and approximately 54,000 jobs created or retained through the third quarter of 2018. 

The TVA Board approved a rate structure change to its wholesale electric power rates at its May 10, 2018, meeting to better align wholesale rates with the underlying cost to serve customers. TVA is continuing to work with local power companies to implement these changes, which will become effective on Oct. 1. 

The Allen Combined Cycle Plant – among the most efficient gas generating plants in the U.S. – officially entered commercial operation on April 30. 

The first of three extended power uprates at the Browns Ferry Nuclear Plant was physically completed in April and achieved its full enhanced power output in July. Combined with TVA’s current nuclear and renewable assets, more than 50 percent of the Valley’s power generated through Q3 was carbon-free. 

TVA continues to update its Integrated Resource Plan to determine how it can continue to provide low-cost, reliable energy, support environmental stewardship, and spur economic development in the Tennessee Valley over the next 20 years.

Selected Financial Data – Nine Months Ended June 30

Sales, Revenues & Expenses

2018

2017

 

 

 

Sales (millions of kWh)

115,968

109,698

 

 

 

Operating Revenues ($ millions)

$ 8,048

$ 7,664

Fuel & Purchased Power Expense

2,204

2,300

Operating & Maintenance Expense

2,074

2,159

Net Interest Expense

942

1,017

Net Income

$ 1,220

$ 546

 

 

 

Net Cash Provided by / (Used in) ($ millions)

 

 

Operating Activities

$ 2,524

$ 1,979

Investing Activities

(1,546)

(1,898)

Financing Activities

(979)

(80)

Net Change in Cash and Cash Equivalents

(1)

1

 


World Leader In Sales And Sales Leadership Unites With World Leader In Higher Education

Hundreds Of TVA Employees Volunteer At Day Of Serving Events

Startup Spectruss Sees Record Growth


Sales training methodologies developed by Sandler Training has been incorporated into Harvard Business School’s leadership curriculum. David Mattson, CEO of Sandler Training, has worked closely ... (click for more)

Nearly 400 TVA employees are volunteering to help local community organizations in the Chattanooga area as part of the TVA Employee Volunteer Program’s Day of Serving on Friday. TVA launched ... (click for more)

Spectruss, a full-service marketing agency based in the Chattanooga area continues rapid growth through its virtual CMO service that provides clients direct access to the expertise of an in-house ... (click for more)


Business

World Leader In Sales And Sales Leadership Unites With World Leader In Higher Education

Sales training methodologies developed by Sandler Training has been incorporated into Harvard Business School’s leadership curriculum. David Mattson, CEO of Sandler Training, has worked closely with Frank V. Cespedes, faculty chair for the Aligning Strategy and Sales executive program at Harvard Business School (HBS) as well as Mark Roberge, senior lecturer in the Entrepreneurial ... (click for more)

Hundreds Of TVA Employees Volunteer At Day Of Serving Events

Nearly 400 TVA employees are volunteering to help local community organizations in the Chattanooga area as part of the TVA Employee Volunteer Program’s Day of Serving on Friday. TVA launched a new Employee Volunteer Program this year in which employees can earn recognition certificates and corporate contributions to eligible charities for hours volunteered. On this Day of ... (click for more)

Breaking News

WWTA Releases Timetable That Would Have Ooltewah Sewage Treatment Plant In Operation By 2025; Public Meetings Set At Central High

The Hamilton County Water and Wastewater Treatment Authority has released a timetable that would have a new sewage treatment plant in Ooltewah in operation by 2025. A request for a site at Mahan Gap Road goes before the Planning Commission at Nov. 12 at 1 p.m. It goes to the County Commission Zoning Committee on Dec. 12 and the full commission on Dec. 19. The WWTA also ... (click for more)

Downtown Post Office Finally Getting Handicap Ramp

Chattanooga's Downtown Post Office, after some lawsuits and numerous complaints over the years, is finally getting a handicap ramp. Federal Judge Sandy Mattice said the complaints had increased in recent months and the General Services Administration agreed to fund the project at the historic building on Georgia Avenue. The judge said, "It's a beautiful building, but it's ... (click for more)

Opinion

Too Many Questions

First it was about 2,000, then we were told it’s up to 4,000. We have no way of knowing who’s coming or what their purpose is. NBC and CNN assure us they are seeking sanctuary but how can we know? Neither Honduras or our subjective media in America have been honest with us in the past. So, how do we know why that many people are marching across Central America? Then this morning ... (click for more)

Roy Exum: An Answer For Amy

Amy Schumer, whose cousin is Senate Minority leader Chuck Schumer, is said to be a very successful comedian and an activist of note. You may remember her most recent appearance was when she was arrested at the U.S. Capitol three weeks ago. She was part of a disgraceful mob who unlawfully protested the nomination of Brett Kavanaugh and the hunch is Amy wanted to get arrested so she ... (click for more)