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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 22, 2014 17:29 GMT
NEW YORK (AP) -- Hundreds of activists protesting what they say is Wall Street's role in the climate crisis have gathered in lower Manhattan's financial district.
Scores of environmental activists dressed in blue are marching, carrying signs, chanting and sitting down on Broadway and elsewhere as workers and tourists look on.
Organizers say the protest is meant to highlight the role corporations play in stalling political action to combat global warming. It comes a day after more than 100,000 participated in the People's Climate March through Manhattan.
Participants in Monday's sit-down say they anticipate being arrested to push home their political point.
Urban farmer Ben Shapiro from Youngstown, Ohio, says he came to disrupt Wall Street and actively "confront the system."
WASHINGTON (AP) -- Fewer Americans bought homes in August, as investors retreated from real estate and first-time buyers remained scarce.
The National Association of Realtors says sales of existing homes fell 1.8 percent to a seasonally adjusted annual rate of 5.05 million. That snaps a four-month streak of gains. August sales are down from a July rate of 5.14 million, a figure that was revised slightly downward.
Much of the slowdown came from the exodus of investors, who had been buying properties in the aftermath of the housing bust and recession. Investors accounted for just 12 percent of August purchases, compared to 17 percent a year earlier.
Overall, the pace of home sales has dropped 5.3 percent year-over-year.
Rising prices through much of 2013 and weak income growth priced out many would-be buyers.
FRANKFURT, Germany (AP) -- The head of the European Central Bank is warning that the eurozone's already tepid economic recovery "is losing momentum."
Mario Draghi is telling members of the European parliament that recent economic indicators have given "no indication" of an upturn since August. The 18 countries that use the euro saw no economic growth at all in the second quarter.
Draghi says growth is being threatened by geopolitical disturbances and the failure of member governments to reform their economies and make them more efficient.
The ECB chief also defended the bank's new stimulus program, an offer of cheap, long-term loans to banks. Banks took only 82.6 billion euros at the first offering last week, less than many market analysts expected. Draghi says the takeup was within the bank's expectations.
NEW YORK (AP) -- Apple says it sold more than 10 million iPhone 6 and 6 Plus models, a record for a new model, in the three days after the phones went on sale.
A year ago, Apple Inc. said it had sold 9 million of the then-new iPhone 5C and 5S models.
The iPhone is available in the U.S., Australia, Canada, France, Germany, Hong Kong, Japan, Puerto Rico, Singapore and the U.K. It will go on sale in 20 more countries on Sept. 26 and others by the end of the year.
CEO Tim Cook said Monday that demand for the phones has exceeded the company's expectations. Besides larger screens, the new phones offer faster performance and a wireless chip for making credit card payments. The phones start at $199 with a two-year service contact.
WASHINGTON (AP) -- Charles Plosser, a leading inflation "hawk" at the Federal Reserve, says he will retire in March.
Plosser, who has been president of the Fed's Philadelphia regional bank since August 2006, has been among the leaders of the officials known as hawks for their concerns that a continuation of low-interest rate policies could ignite inflation.
He has dissented at the past two Fed meetings, when the central bank voted to maintain its plan to keep a key short-term rate at a record low for a "considerable time."
Plosser, 66, would have given up his vote on the Fed's policymaking committee next year as part of the normal rotation of votes among the regional bank presidents. And the rules governing the Fed's 12 regional banks would have required his retirement in 2016.
GENERAL MOTORS-IGNITION SWITCH DEATHS
DETROIT (AP) -- The death toll from crashes involving General Motors small cars with faulty ignition switches has risen to at least 21.
Compensation expert Kenneth Feinberg says in an Internet posting he received 143 death claims as of Friday. He has determined that 21 are eligible for compensation so far. Last week 19 death claims were deemed eligible for payments.
Feinberg also has received 532 injury claims. Of those, 16 are eligible for compensation thus far. The rest are still being reviewed.
GM has admitted knowing about the ignition switch problem in small cars like the Chevrolet Cobalt for more than a decade. Yet it didn't begin recalling the cars until February.
The switches can unexpectedly shut off the engine and cause crashes.
GM hired Feinberg to compensate crash victims.
PARIS (AP) -- Air France pilots are rejecting the company's offer to delay the expansion of its low-cost carrier, Transavia, after a seven-day strike that the airline says is costing it up to 20 million euros ($25 million) a day.
Pilots unions went on strike last week after Air France-KLM announced plans to save 1 billion euros ($1.3 billion) over several years in part by transferring European operations to Transavia. The company, which is cutting costs to try to stay competitive with budget airlines, says talks are deadlocked. About half the airlines' flights have been cancelled since the strike began.
The main pilots' union, SNPL, says Monday's offer to delay the expansion until December is a smokescreen, accusing the airline of trying to outsource jobs to countries with lower taxes and cheaper labor.
OAKLAND, Calif. (AP) -- Clorox is shutting down its operations in Venezuela, citing restrictions by the government, supply disruptions and economic uncertainty.
Shares jumped 3 percent before the opening bell Monday.
The U.S. consumer products company said that for almost three years it has had to sell more than two-thirds of its products at prices frozen by the Venezuelan government. Over that same time span, there has been a sharp rise in inflation that resulted in significantly higher costs for Clorox. The company says it's selling products at a loss in the country.
The Clorox Co. met repeatedly met with government authorities and said it had expected significant price hikes. However, the increases that were approved were "nowhere near sufficient" and it said the company would be forced to continue operating at a loss.
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