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TVA Reports Fiscal Year-End 2013 Results
The Tennessee Valley Authority reported Monday that the public-owned utility ended fiscal 2013 with net income of $271 million on $11 billion in operating revenues despite a decline in sales, while record levels of low-cost hydroelectric generation helped offset higher fuel costs.
“TVA reported solid financial results in 2013 despite lower sales and revenues,” TVA President and CEO Bill Johnson said.
“We experienced lower demand for power during the year due to the shutdown of a major customer facility, a slow-growing economy and adoption of energy conservation by customers,” he said. “We expect to see low growth in power demand into the next decade, and we are committed to living within our means to keep rates low for our customers and the people of the Tennessee Valley.”
Sales to local power companies were up slightly in 2013 as compared with 2012, as more normal weather patterns returned in 2013, favorably impacting demand. Sales to industrial customers directly served by TVA were off 15 percent from the prior year, primarily due to the U.S. Enrichment Corp.’s closure of its uranium enrichment facility near Paducah, Ky. Lower sales to directly served industrial customers were offset by higher off-system sales resulting from excess generation, TVA said Monday in its 2013 annual financial report to the U.S. Securities and Exchange Commission.
Total revenues declined 2 percent in 2013 compared with the prior year. The decrease was driven by a decline in base revenue as local power companies implemented new TVA wholesale rate structures, and lower fuel cost recovery revenues as a result of lower electricity sales.
Lower-cost nuclear generation was down 6 percent in 2013 versus 2012 due to four nuclear refueling outages and a steam generator replacement project, compared with two nuclear refueling outages the previous year. As a result, fuel expense increased $140 million in 2013 compared with 2012.
Record levels of rainfall in 2013 produced 42 percent more low-cost hydroelectric generation compared with 2012, which helped to partially offset higher cost generation resources.
Operating and maintenance expenses were reduced by $82 million in 2013 compared with 2012. The decrease was driven by fewer outage costs and lower scheduled maintenance for coal-fired units due to retirement or idling of less efficient coal units, and decreased costs related to post-employment benefits. Offsetting the decreases were expenses related to the four nuclear outages and other projects in 2013.
“Our company-wide efforts to enhance productivity and reduce costs will keep TVA competitive as we remain committed to fulfilling TVA’s mission,” Chief Financial Officer John Thomas said. “The actions our employees took throughout the year allowed us to end 2013 with a positive position and remain financially healthy.”
TVA reported net income of $271 million on $11 billion in operating revenues for fiscal 2013, compared with net income of $60 million on $11.2 billion in revenues last year.
TVA executive management will host a fiscal year-end 2013 financial conference call at 9:30 a.m. EST on Monday, Nov. 18, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com on the Investor Relations homepage. 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 9:00 p.m. EST, November 26, 2013, by calling toll free (877) 344-7529 in the United States or (412) 317-0088 outside the United States and using the conference number 10034053. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s annual report on Form 10-K provides additional financial, operational and descriptive information, including audited financial statements for the year-ended September 30, 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.
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Last Update on September 18, 2014 17:14 GMT
WASHINGTON (AP) -- Strong stock market gains and higher home prices boosted Americans' net worth in the April-June period to a record high, a trend that could encourage more spending.
U.S. households also took on the most new debt in five years, driven mostly by student and auto loans. More borrowing can be a sign of confidence, although greater student debt can pose a burden for younger households.
The Federal Reserve says household wealth rose 1.7 percent in the second quarter to $81.5 trillion. Americans' stock and mutual fund portfolios gained $1 trillion. The value of their homes increased $230 billion.
The Fed's figures aren't adjusted for population growth or inflation. Household wealth, or net worth, reflects the value of homes, stocks, and other assets minus mortgages, credit cards and other debts.
WASHINGTON (AP) -- The number of people applying for U.S. unemployment benefits dropped by a sharp 36,000 last week to a seasonally adjusted 280,000, a sign that the job market is strengthening.
The Labor Department says the four-week average of applications, a less volatile measure, fell 4,750 to 299,500. The total number of people collecting benefits during the first week of September was 2.43 million, the fewest since May 2007.
Applications for unemployment benefits remain at pre-recession levels. The number of people seeking benefits has been trending downward for the past four months.
Applications are a proxy for layoffs. When fewer people seek benefits, it suggests that employers are keeping their workers, likely because they are more confident about economic growth and poised to hire.
WASHINGTON (AP) -- U.S. home construction plunged in August, led by steep decline in the pace of building apartments.
The Commerce Department says construction fell 14.4 percent in August to a seasonally adjusted annual rate of 956,000 homes. This reverses the sharp gains in July when the rate of new construction rose to 1.12 million homes, the highest annual rate since 2007.
Last month's decrease primarily came from builders starting fewer apartment complexes, which plummeted 31.5 percent compared to July. Apartments have propelled much of the growth in residential construction over the past year, but the pace has been volatile from month to month.
In August, the building of single-family houses fell 2.4 percent.
Applications for building permits, a good sign of future activity, dipped 5.6 percent to an annual rate of 998,000.
WASHINGTON (AP) -- Federal Reserve Chair Janet Yellen says the Great Recession showed that a large number of American families are "extraordinarily vulnerable" to financial setbacks because they have few assets to fall back on.
She says a Fed survey finds that an unexpected expense of just $400 would force the majority of American families to borrow money, sell something or simply not pay.
She says the bottom fifth of households by income -- about 25 million households -- had net worth in 2013 of just $6,400 and many of these families had nothing saved or negative net worth.
In a speech delivered by video to a Washington conference, Yellen says there is a critical need to encourage people to take small steps to boost their savings.
WASHINGTON (AP) -- Average long-term U.S. mortgage rates surged this week, marking their largest one-week gain this year.
Mortgage company Freddie Mac says the nationwide average for a 30-year loan jumped to 4.23 percent from 4.12 percent last week. The average for a 15-year mortgage, a popular choice for people who are refinancing, rose to 3.37 percent from 3.26 percent.
At 4.23 percent, the rate on a 30-year mortgage is at its highest level since the week ended May 1, though it is still at a historically low level.
Mortgage rates often follow the yield on the 10-year Treasury note. The 10-year note traded at 2.62 percent Wednesday, up sharply from 2.54 percent a week earlier. It was trading at 2.63 percent Thursday morning. Bond yields rise when bond prices fall.
NEW YORK (AP) -- The leader of Gatorade maker PepsiCo is urging the National Football League to "seize the moment" and put domestic violence and child abuse policies in place immediately once it conducts its review.
PepsiCo Inc. Chairman and CEO Indra Nooyi said in a statement that the NFL has a chance to "effect positive change with the situation presented to them."
PepsiCo is one of several NFL sponsors watching closely as the league investigates how its executives handled evidence in the domestic violence case of former Baltimore Ravens player Ray Rice. The Minnesota Vikings Adrian Peterson is also facing a felony child abuse charge that has placed more attention on the NFL.
Nooyi also expressed confidence that NFL Commissioner Roger Goodell would "do the right thing for the league."
NEW YORK (AP) -- Wal-Mart Stores Inc. says it plans to hire 60,000 temporary holiday workers for the crucial holiday season, an increase of 10 percent from last year.
The world's largest retailer also says current workers who want more hours during the holidays will get priority for them. The retailer, based in Bentonville, Ark., has been criticized by labor groups for low pay and intentionally keeping employees' hours low.
The news follows similar announcements from UPS, FedEx and Kohl's, which are also making more temporary hires this year.
A retailer's hiring plans can indicate its expectations for the holiday shopping season, which accounts for 20 percent of the retail industry's annual sales, according to the National Retail Federation.
PITTSBURGH (AP) -- Chevron has become the first energy company to meet a new set of voluntary shale gas drilling standards that aim to go beyond existing state laws in Pennsylvania, Ohio and West Virginia.
The Pittsburgh-based Center for Sustainable Shale made the announcement Thursday morning. The center is a partnership between major energy companies, environmental groups and charitable foundations.
The certification process consisted of an independent review of 22 Chevron sites. The program is meant to work much like Underwriters Laboratories, which puts its familiar UL seal on electrical appliances.
The review was conducted by Bureau Veritas, an international testing company that also handles the LEED review process for the U.S. Green Building Council.
Some major environmental groups say the Sustainable Shale program is no substitute for tougher state and federal laws.
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