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 September 02, 2015 17:17 GMT
WASHINGTON (AP) -- U.S. productivity in the spring rose at the fastest pace since late 2013, while labor costs declined.
The Labor Department says worker productivity increased at an annual rate of 3.3 percent in the April-June quarter. That was a rebound from the first quarter when productivity had fallen at a 1.1 percent rate.
Labor costs fell at a 1.4 percent rate in the second quarter, indicating that wages are not rising even as unemployment declines.
The 3.3 percent productivity gain represented an upward revision from a month ago when the government had estimated a more moderate rebound of 1.3 percent.
Even with the strong gain in the second quarter, productivity over the past year has increased by just 0.7 percent, continuing a weak trend seen through this recovery.
WASHINGTON (AP) -- Orders to U.S. factories posted a modest gain in July, helped by the biggest rise in motor vehicles orders in a year and a solid gain in a category that tracks business investment plans.
The Commerce Department says factory orders rose 0.4 percent in July. Orders had increased a much larger 2.2 percent in June.
For July, orders for motor vehicles posted a 4 percent advance, the largest gain since July 2014.
A key category that tracks business investment plans climbed 2.1 percent in the strongest gain in 13 months.
The modest increase in factory orders in July showed that manufacturing is still struggling with a variety of problems, from falling energy prices to a stronger dollar, which hurts exports.
WASHINGTON (AP) -- U.S. businesses added jobs at a steady pace last month, with construction and manufacturing showing solid gains, a private survey found.
Payroll processor ADP says that businesses added 190,000 jobs last month, up from 177,000 in July, but below a six-month high in June of 231,000.
The figures suggest that turmoil in the financial markets and worries about faltering growth in China have not yet had much impact on the U.S. job market. The government will release its official jobs report for August on Friday. Economists forecast it will show that employers added 220,000 jobs, and the unemployment rate slipped to 5.2 percent from 5.3 percent.
The ADP survey covers only private businesses, however, and frequently diverges from the official figures.
WASHINGTON (AP) -- U.S. banks' earnings jumped 7.3 percent in the April-June period from a year earlier as revenues increased and the volume of soured loans banks had to write off fell to the lowest level since before the financial crisis.
The data issued Wednesday by the Federal Deposit Insurance Corp. showed continued improvement for the banking industry seven years after the crisis struck. The number of "problem" banks continued to fall and some big banks had reduced expenses for legal settlements following large amounts paid out previously to resolve crisis-related cases.
The FDIC reported that U.S. banks earned $43 billion in the second quarter, up from $40.1 billion a year earlier.
Nearly 60 percent of banks reported an increase in profit from a year earlier. Only 5.6 percent of banks were unprofitable.
NEW YORK (AP) -- Several of the top Internet-connected baby monitors lack basic security features, making them vulnerable to hackers, according to new report from a cybersecurity firm.
The research released Wednesday by Boston-based Rapid7 Inc. looks at nine baby monitors made by eight different companies.
The researchers found security problems and design flaws in all of the cameras they tested. Some had hidden, unchangeable passwords that could be used to gain access. And some didn't encrypt their data streams, or some of their web or mobile features.
Video baby monitors are very popular with many parents and the idea of someone else watching is frightening.
In addition, a hacked camera could provide access to other Wi-Fi-enabled devices in a person's home, such as a personal computer or security system.
GADGET SHOW-ANDROID MALWARE
BERLIN (AP) -- Malicious software targeting smartphones with the Android operating system is becoming more common, with some handsets already infected when they're bought.
A report by German security firm G DATA found that the samples containing such malware had increased by 25 percent in the second quarter compared with the first three months of the year.
The company's 10th such report, released Wednesday, found that analysts could identify a new strain of malware every 14 seconds.
It says some phones by manufacturers such as Huawei and Xiaomi contain modified apps designed to spy on users or display advertising.
G DATA spokesman Christian Lueg says the phones appear to have been installed by middlemen, but in tracing the source "we lost the trail in China."
Users can detect the malware with free software.
BILLINGS, Mont. (AP) -- U.S. transportation officials will offer $10 million in grants for states to upgrade highway-rail crossings and tracks in response to a recent surge in flammable fuel shipments.
Wednesday's planned announcement from the Department of Transportation comes as rail crossing collisions have increased over the past several years, following more than three decades of steady declines.
There were more than 2,200 collisions in 2014, killing 269 people and injuring 849.
Almost 40 percent of the fatalities occurred in just five states -- California, Illinois, Texas, Alabama and Louisiana.
Acting Federal Railroad Administrator Sarah Feinberg says most rail crossing deaths are preventable.
The grants would pay for improvements along rail routes that transport flammable fuels. Shipments of crude oil and ethanol increased dramatically over the past decade before energy prices plummeted.
BROKEN ARROW, Okla. (AP) -- Blue Bell Creameries has resumed operations at a northwestern Oklahoma facility a day after the company's products returned to the shelves at select locations in Texas and Alabama.
The Texas-based company says limited production resumed Tuesday at the facility in Broken Arrow, a Tulsa suburb. The company said in a news release that operations will be limited at first to ensure that new procedures, facility enhancements and employee training have been effective. Products will only be released for sale after tests show they are safe.
The company voluntarily recalled its products in April after they were linked to 10 listeria cases in four states, including three deaths in Kansas.
A facility in Sylacauga (sihl-uh-KAW'-guh), Alabama started production again in late July.
NEW YORK (AP) -- Amazon's futuristic "Dash" buttons appear here to stay.
The e-commerce powerhouse is expanding the number of available buttons, which reorder products at one touch. It's also making them virtually free.
Last month Amazon launched the "Dash" buttons -- adhesive buttons designed to stick on any household surface near where you may need to reorder products -- for about 18 brands, ranging from Bounty paper towels to Tide detergent.
Now they're adding 11 branded buttons to the program, including ones for Ice Breakers Mints and Hefty trash bags. And for every $4.99 button customers buy, they'll get a $4.99 credit back into their account.
The buttons are available to members of Amazon's $99 annual Prime membership program.
FAKE DISNEY PARK-TRIAL
SHERMAN, Texas (AP) -- A man has been sentenced to 17 1/2 years in prison for swindling investors with a fake story about a Walt Disney theme park in North Texas.
The judge also ordered Thomas W. Lucas Jr. of Plano to pay $8.4 million in restitution Tuesday.
Lucas was convicted on seven counts of wire fraud and one count of making false statements to the FBI.
Prosecutors say Lucas defrauded more than 280 investors out of about $20 million from 2006 to 2010. Those who paid for land in Collin and Denton counties were told it was on the edges of the future park. Investors hoped to sell the land to developers for a profit after Disney made an announcement.
The Walt Disney Co. has denied rumors of a North Texas theme park.
NEW YORK (AP) -- Sony Pictures is insisting that the Will Smith film "Concussion" was not "softened" to placate the NFL.
Emails leaked by last year's hack of Sony Pictures Entertainment revealed executives, lawyers and filmmaker Peter Landesman wrestling with whether "Concussion" would antagonize the NFL, and making changes to the film.
After a comprehensive review of those emails, The New York Times on Tuesday reported that Sony blunted parts of the film, in which Smith plays the first scientist to uncover the fatal effects of repeated head trauma suffered by many NFL players.
In a statement Wednesday, Sony Pictures called the Times story "misleading" and insisted: "As will become immediately clear to anyone actually seeing the movie, nothing with regard to this important story has been `softened' to placate anyone."
EGG GROUP PANIC
NEW YORK (AP) -- A California company that makes an eggless mayonnaise alternative has the U.S. egg industry scrambling.
The American Egg Board, which is responsible for the "Incredible, Edible Egg" slogan, waged a campaign to counter the emergence of Hampton Creek's Just Mayo spread, and even tried to prevent its sale at Whole Foods grocery stores, according to documents provided to The Associated Press.
The documents offer a sometimes comic glimpse into the alarm the group felt about the startup and its CEO, Josh Tetrick, who has said he wants to make the food system more environmentally friendly by replacing the eggs in an array of foods with plant-based alternatives.
Publicly, the American Egg Board has sought to downplay Hampton Creek as just another egg substitute and has avoided referring to it by name. But emails showed the board was troubled by the media attention being showered on Hampton Creek, whose big investors include Microsoft co-founder Bill Gates.
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