TVA Reports Net Income of $54 Million in Second Quarter 2013
The Tennessee Valley Authority reported Friday net income of $54 million on operating revenues of $2.74 billion in the second quarter of 2013. This compares with a net loss of $94 million on operating revenues of $2.60 billion in the same period last year.
“We ended the second quarter 2013 essentially on plan,” President and CEO Bill Johnson said. “More normal weather had a favorable impact, as did employee efforts to reduce costs.
“We are focused on controllable factors that improve cost management and drive operational performance as we work to keep rates low. This is particularly important as we enter the summer months, when customer usage and sales typically are at the highest levels,” he said.
Sales to local power companies that distribute TVA electricity were 9 percent higher in the second quarter and 5 percent higher in the first six months of 2013, compared with the same periods last year. Higher off-system sales as a result of excess generation also contributed to higher sales. Offsetting these increases were lower sales to directly served industrial customers, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013.
Total revenues increased 5 percent in the second quarter and 3 percent year to date, compared with the same periods last year. The increases were driven by higher fuel cost recovery due to higher fuel rates and an increase in electricity sales. Base revenue was $36 million higher in the second quarter due to an increase in electricity sales, but was down $49 million in the first six months of 2013 in part from a decrease in the effective base rate as distributors selected new wholesale rate structures.
Fuel expense was $148 million higher in the second quarter and $302 million higher in the first six months of 2013, compared with the same periods last year primarily due to more nuclear outages in 2013, which resulted in more generation from higher-cost sources, particularly natural gas and coal-fired generation.
“We were pleased to be able to hold our average power rates steady for customers, despite the increases in fuel and commodity costs,” Chief Financial Officer John Thomas said. “To further improve TVA’s power rates, we will continue developing a more balanced generation portfolio through effective asset management.”
Operating and maintenance expense increased by $13 million in the second quarter and was $52 million higher in the first half of this year compared with the same periods last year. During the first six months of 2013, TVA completed three nuclear refueling outages and a steam generator replacement project and began a fourth refueling outage, compared to one nuclear refueling outage in the same period last year.
For the six months ended March 31, 2013, TVA reported a net loss of $191 million on operating revenues of $5.32 billion, compared with a net loss of $267 million on operating revenues of $5.17 billion in the same period a year ago.
TVA executive management will host a second quarter fiscal year 2013 financial conference call at 9:30 a.m. EDT on Friday, May 3, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com/finance. 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 5:00 p.m. EDT, May 13, 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 10026404. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s quarterly report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended March 31, 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 July 28, 2015 07:34 GMT
GULF OIL SPILL-SETTLEMENT
NEW ORLEANS (AP) -- A federal judge says BP will begin paying up to $1 billion in settlements to compensate local governments across the Gulf Coast for lost tax revenue and other economic damages they blame on the company's 2010 oil spill.
An order issued Monday by U.S. District Judge Carl Barbier (BAHR'-bih-aye) says all of the payments to local governments must be made within 30 days.
July 15 was the deadline for roughly 500 local governments in five states to decide whether to accept BP's settlement offers as part of a broader $18.7 billion agreement with the five Gulf states and the federal government over damage from the spill.
Barbier's order says BP says most local government entities have accepted the settlement.
UNDATED (AP) -- Windows 10 debuts tomorrow. No one's expected to line up overnight for the new Microsoft operating systems the way people did 20 years ago for Windows 95.
Microsoft says Windows 10 will seem familiar to users of Windows 7. Microsoft and PC makers want to erase the memory of the last big update, 2012's Windows 8, which alienated many with its jarring, clumsy design.
So, how much will Windows 10 cost? Microsoft says the new OS will be a free download for anyone who has the Home or Pro versions of Windows 7 or 8, but not the Enterprise versions.
But you might have to wait a bit to get your copy. Microsoft says it will deliver downloads in waves, to ensure things go smoothly. You can check the Microsoft website for more information on how to update your OS and what to expect from Windows 10.
DETROIT (AP) -- Fiat Chrysler could be required to lay out billions of dollars to get potentially defective Ram pickups and older Jeeps off the road under a deal with safety regulators to settle claims that the automaker mishandled nearly two dozen recalls.
The Italian-American automaker must offer to buy back 500,000 Ram pickup trucks and other vehicles in the biggest such action in U.S. history. It must also either allow owners of more than a million older Jeeps with vulnerable rear-mounted gas tanks to trade them in at above market value or cover the cost of a repair. Fiat Chrysler faces a record civil fine of up to $105 million.
The settlement is the latest sign that auto safety regulators are taking a more aggressive approach toward companies that fail to disclose defects or don't properly conduct a recall.
TOKYO (AP) -- Volkswagen overtook Toyota in global vehicle sales for January-June, the first time the German automaker has come out at the top in the intensely competitive tallies.
Japanese automaker Toyota Motor Corp. said Tuesday it sold 5.02 million vehicles in the first six months of this year.
Volkswagen said earlier it sold 5.04 million vehicles during the same period. Sales were robust in Europe and North America but fell in China, a strong market for the company.
Detroit-based General Motors Corp., the top-selling automaker for more than seven decades until being surpassed by Toyota in 2008, is expected to report its figure Thursday.
Toyota, which makes the Prius hybrid, Camry sedan and Lexus luxury models, has been the world's top-selling automaker for the past three years.
MEXICAN CILANTRO BAN
WASHINGTON (AP) -- The Food and Drug Administration is banning imports of some fresh cilantro from Puebla, Mexico, after a government investigation found human feces and toilet paper in growing fields there.
The FDA announced the partial ban on Monday after cilantro imported from the state of Puebla was linked to 2013 and 2014 outbreaks of stomach illnesses in the United States.
U.S. and Mexican health authorities investigated farms and packing houses in Puebla and found that some of the farms had no running water or toilet facilities.
The ban will only affect certain shipments of fresh cilantro from Puebla from April through August, corresponding to the timing of the outbreaks. The summer ban will continue in future years unless a company can prove to health authorities that its product is safe.
WASHINGTON (AP) -- Majority Leader Kevin McCarthy is ruling out House action on a long-term, must-pass highway bill the Senate is considering.
In an interview with reporters on Monday, the California Republican said definitively: "We're not taking up the Senate bill."
The Senate's version of the highway bill, which is on track to pass later in the week, sets policy and authorizes transportation programs for six years, though with funding for only three of those years. The Senate also is moving toward reviving the federal Export-Import Bank and adding it to the bill.
The House has passed a five-month extension of transportation programs without the Export-Import Bank.
If Congress doesn't act by Friday, states will lose money for highway and transit projects in the middle of the summer construction season.
NORTH KINGSTOWN, R.I. (AP) -- Federal and state officials say the beginning of construction for the nation's first offshore wind farm is the success the industry needs to surge forward in the United States.
U.S. Secretary of the Interior Sally Jewell called it a "pioneering moment" for an important industry.
Deepwater Wind is building a five-turbine wind farm off Block Island, Rhode Island, which it expects to power 17,000 homes as early as next year.
It began attaching the first of the steel foundations to the ocean floor Sunday. The first one touching the seabed is known in the industry as the "first steel in the water."
Deepwater Wind CEO Jeffrey Grybowski says it was a spectacular moment.
Deepwater Wind took officials, including Jewell, and project supporters to the site by boat Monday.
APPLE WATCH-BEST BUY
NEW YORK (AP) -- The Apple Watch is heading to some Best Buy stores ahead of the holiday shopping season.
Best Buy Co. says it will sell the Apple Watch at 100 of its stores and on its website on August 7. Another 200 Best Buy stores will offer the smartwatch before the end of the year. Best Buy, which has more than 1,000 stores in the U.S., says it's the first national retailer to sell the watch outside of Apple Inc.'s stores.
The retailer, based in Richfield, Minnesota, will offer models of the smartwatch that cost between $349.99 and $699.99.
Apple unveiled the watch in September and began taking orders in April. The Cupertino, California, company hasn't released any sale figures for the new device.
NEW YORK (AP) -- Nike will give partial refunds or gift cards to people who bought FuelBand fitness trackers in the last three and a half years, resolving a lawsuit that says the products can't accurately tally how many steps a user is taking or how many calories they've burned.
A website maintained by Gilardi & Co., a firm that administers settlements, says Nike Inc. will give $15 payments or $25 gift cards to people who bought FuelBands between Jan. 19, 2012 and June 17, 2015. Nike and collaborator Apple aren't acknowledging wrongdoing, but they're offering to settle a class action lawsuit against them.
The lawsuit said the companies engaged in false advertising and breached the terms of the devices' warranty.
Apple Inc. and Nike did not immediately respond to a request for comment.
BERLIN (AP) -- Kazakhstan is set to become the 162nd member of the World Trade Organization after the Geneva-based body formally approved the country's membership.
The largest former Soviet republic in Central Asia is rich in natural resources and a key transit country for goods between Asia and Europe.
President Nursultan Nazarbayev says Kazakhstan is committed to opening up its financial and telecommunications sectors as agreed during its 19-year accession process.
Nazarbayev says his country hopes that joining the WTO will encourage foreign investment.
Kazakhstan, which has suffered from the economic downturn in neighboring Russia, must still ratify the membership agreement in its national Parliament by the end of October.
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