TVA Reports First Quarter FY2014 Results
KNOXVILLE, Tenn. ― 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 Johnson. “This demonstrates the value and flexibility of TVA’s well-diversified power system.”
Total electricity sales were down 3 percent for the quarter, primarily due to the loss of TVA’s largest directly served customer. But sales to local power companies were 7 percent higher as a result of cooler weather than a year ago and some growth in electric demand.
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Last Update on September 03, 2015 07:35 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department will report today on the number of people who applied for unemployment benefits last week. Also, the Commerce Department will report on the U.S. trade gap for July.
The Institute for Supply Management, a trade group of purchasing managers, will also issue its index of non-manufacturing activity for August. And Freddie Mac will release weekly mortgage rates.
WASHINGTON (AP) -- The International Monetary Fund says China's slowdown, volatile financial markets and tumbling raw-materials prices have raised the risks to economic growth around the world.
In an assessment of global threats published as finance ministers and central bankers meet this week in Turkey, the IMF is urging wealthy countries to continue easy money policies and "growth friendly" tax and spending programs.
It says some emerging-market countries should let their currencies fall substantially to support exporters and economic growth, adding that they should also enact reforms to make their economies more efficient.
The IMF says the Chinese economic slowdown appears to have had larger-than-expected repercussions in other countries. China's troubles have sent the prices of raw materials such as oil and copper into a freefall, pinching Brazil, Russia and other commodity exporters.
PHILADELPHIA (AP) -- An Associated Press survey of nearly a dozen big cities reveals emergency planning for crude oil trains remains a work in progress.
The 100-car trains are loaded with crude oil from the Upper Midwest and rumble past schools, homes and businesses.
Cities around the country are scrambling to formulate emergency plans and train firefighters amid the latest safety threat: a fiftyfold increase in crude shipments that critics say has put millions of people living or working near the tracks at heightened risk of derailment, fire and explosion.
The mile-long trains from North Dakota carry around 3 million gallons of crude. Federal officials say a severe accident in a city could kill more than 200 people and cause $6 billion in damage.
The trains have become a common sight in places like Philadelphia, Chicago and Seattle.
DETROIT (AP) -- Tesla Motors says it will unveil its lower-cost Model 3 electric car in March and will start taking orders then.
In a tweet Wednesday, Tesla CEO Elon Musk says the car will start at $35,000, or about half the starting price of its current Model S sedan. Musk said the Model 3 will start production in about two years.
Musk also said deliveries of the Model X SUV -- the company's third vehicle -- will begin Sept. 29. Tesla wouldn't reveal pricing details.
Musk said each trim level of the Model X will be around $5,000 more than the equivalent trim level of the Model S because of the SUV's greater size and complexity.
LOS ANGELES (AP) -- Lawyers for former Sony Pictures Entertainment employees whose data was breached last year say they have tentatively reached a settlement with the company.
Wednesday's filing in a proposed class-action lawsuit does not detail settlement terms or how many current and former Sony employees would be covered by the settlement.
Plaintiffs' attorney Daniel Girard wrote that he and fellow lawyers believe the settlement is favorable to employees whose personal, financial and medical information was posted online.
Additional details about the settlement are expected to be filed in a Los Angeles federal court by mid-October.
At least 10 former Sony employees sued the company over the breach, seeking class-action status for the nearly 50,000 people whose data was stolen and posted online by hackers.
Sony declined comment on the proposed settlement.
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