The Tennessee Valley Authority reported $7.4 billion in total operating revenues on 113.6 billion kilowatt-hours of electricity sales for the nine months ended June 30. Sales of electricity were 5 percent higher for the nine months ended June 30 than the same period in the prior year primarily due to lower energy sales for the nine months ended June 30, 2020, associated with the COVID-19 pandemic.
Total operating revenues increased 1 percent over the same period of the prior year as a result of higher energy sales, offset by lower effective base rates mainly due to the Pandemic Relief Credit that began in 2021, and totaled $156 million in the nine months ended June 30.
“TVA continues to serve our communities as they recover from the pandemic and as businesses and industries ramp production back up,” said Jeff Lyash, TVA president and CEO. “Through systematic planning and investment in our system, we are meeting strong summer power demand with 99.999 percent reliability and delivering some of the nation’s cleanest, most economical energy.”
TVA’s year-to-date net income was $257 million higher due mainly to lower depreciation and amortization expense, which was $286 million lower for the nine months ended June 30, than the same period in the prior year, due to accelerated retirements of coal-fired facilities. TVA’s tax equivalents expense was $17 million lower for the nine months ended June 30, mainly due to a decrease in TVA's revenue from sales of electricity in 2020, which is TVA’s basis for calculating tax equivalents.
Interest expense was $824 million for the nine months of fiscal year 2021, which is a 4 percent decrease from the same period of the prior year, driven by lower average debt balances.
“TVA’s effective wholesale power rate to customers remains lower than a decade ago,” said John Thomas, TVA’s chief financial officer. “Our investments in cleaner and more efficient energy resources, cost reductions and lower debt are helping TVA support the region’s recovery now, and contributing to TVA’s sustainability for the future.”
Additional highlights from TVA’s third quarter fiscal year 2021 include:
As of Aug. 2, 143 local power companies have long-term partnerships with TVA, including the recent addition of Cullman Electric Cooperative. Bill credits to partners totaled $133 million for the nine months ended June 30.
TVA continues to offer the Back-to-Business credit program that provides relief to certain larger customers when returning to operations and the Community Care Fund that partners TVA and LPCs to support local initiatives that address hardships created by the COVID-19 pandemic. TVA remains committed to supporting communities and customers across the Tennessee Valley during the region’s ongoing recovery.
TVA continued to maintain 99.999 percent reliability in delivering energy to its customers through June 30. TVA has maintained 99.999 percent reliability for more than 20 consecutive years, providing industry-leading reliability.
Rainfall and runoff in the Tennessee Valley through the third quarter of 2021 were 110% and 113% of normal, respectively.
TVA's economic development efforts, combined with our reliability and low costs, continue to attract and encourage the expansion of business and industries in the Tennessee Valley, with over $7.8 billion in investments and more than 65,300 jobs created or retained through the third quarter of 2021.
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Selected Financial Data – Nine Months Ended June 30
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Sales, Revenues & Expenses
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2021
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2020
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Sales (millions of kWh)
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113,606
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108,396
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Operating Revenues ($ millions)
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$ 7,403
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$ 7,350
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Fuel & Purchased Power Expense
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1,892
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1,844
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Operating & Maintenance Expense
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2,106
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2,014
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Interest Expense
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824
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859
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Net Income
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$ 909
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$ 652
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Net Cash Provided by / (Used in) ($ millions)
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Operating Activities
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$ 2,227
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$ 2,496
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Investing Activities
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(1,698)
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(1,467)
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Financing Activities
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(531)
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(528)
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