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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 August 27, 2014 17:13 GMT
WASHINGTON (AP) -- The Congressional Budget Office is forecasting that the U.S. economy will grow by just 1.5 percent in 2014, undermined by a poor performance during the first three months of the year.
The new assessment was considerably more pessimistic than that of the Obama administration, which predicted last month that the economy would expand by 2.6 percent this year even though it contracted by an annual rate of 2.1 percent in the first quarter.
The economy did grow by 0.9 percent during the first half of 2014.
Looking ahead, the CBO said it expects the economy to grow by 3.4 percent over 2015 and 2016, and predicted that the unemployment rate would remain below 6 percent into the future.
WASHINGTON (AP) -- Financial firms that sell securities backed by loans, like the kind that fueled the 2008 financial crisis, will have to give investors details on borrowers' credit record and income under action taken Wednesday by federal regulators.
The Securities and Exchange Commission adopted the rules for securities linked to mortgages and auto loans on a 5-0 vote.
The commissioners also voted, 3-2, to impose conflict-of-interest rules on the agencies that rate the debt of companies, governments and issues of securities.
Home mortgages bundled into securities and sold on Wall Street soured after the housing bubble burst in 2007, losing billions in value. The vast sales of risky securities ignited the crisis that plunged the economy into the deepest recession since the Great Depression and brought a taxpayer bailout of banks.
PARIS (AP) -- IMF chief Christine Lagarde has been put under official investigation for negligence in a French corruption probe that dates back to her days as France's finance minister.
After a fourth round of questioning before magistrates today, Lagarde said she would return to her work in Washington later in the day and said in a statement the investigation was "without basis." She is the third IMF managing director in a decade to face legal troubles.
Lagarde and her former chief of staff face questions about their role in a 400 million-euro ($531 million) payment to a businessman with a checkered past.
Under French law, the official investigation is equivalent to preliminary charges, meaning there is reason to suspect an infraction. Investigating judges can later drop a case or issue formal charges and send it to trial.
WASHINGTON (AP) -- The Treasury Department has sanctioned a leader and a financial network used by a Pakistan-based terrorist group blamed for the 2008 attack in Mumbai, India that killed 166 people.
Treasury sanctioned Muhammad Iqbal and Asma Money Exchangers for their suspected ties to Lashkar-e-Taiba (LAHSH'-kahr ee TOY'-buh). David Cohen, undersecretary for terrorism and financial intelligence, said Iqbal uses his business to conduct financial transactions on behalf of the terrorist organization and its affiliates.
Lashkar-e-Taiba, a well-organized group based in Pakistan's Punjab province, also is suspected of having historical ties to Pakistani intelligence.
The action freezes any assets they might have in U.S. jurisdiction and bans U.S. citizens from doing business with them.
GENERAL MOTORS-TENNESSEE FACTORY
SPRING HILL, Tenn. (AP) -- General Motors is moving production of the next-generation Cadillac SRX crossover SUV from Mexico to a factory in Spring Hill, Tennessee.
The company also announced that it will add production of some small gasoline engines to the Spring Hill complex.
The additions will bring more jobs to Spring Hill, but a spokesman wouldn't give specifics on how many would be added to the sprawling former Saturn facility about 40 miles south of Nashville.
The complex now employs just over 2,300 workers, including hourly and salaried employees and those who work for parts supply companies.
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