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.
More Business News
Last Update on May 28, 2015 17:28 GMT
PENDING HOME SALES
WASHINGTON (AP) -- Americans signed contracts to buy homes in April at the fastest pace in nearly nine years, evidence that steady job growth is strengthening the real estate market.
The National Association of Realtors says its seasonally adjusted pending home sales index climbed 3.4 percent to 112.4 last month. It's the fourth consecutive monthly gain. The index now stands at its highest level since May 2006.
Pending sales increased in the Northeast, Midwest and South, while barely edging upward in the West.
Pending sales are a barometer of future purchases. A one- to two-month lag usually exists between a contract and a completed sale.
WASHINGTON (AP) -- Average long-term U.S. mortgage rates rose this week to their highest level so far this year as new data showed strength in the housing market.
Mortgage giant Freddie Mac says the average rate on a 30-year fixed-rate mortgage increased to 3.87 percent from 3.84 percent a week earlier. The rate on 15-year fixed-rate mortgages advanced to 3.11 percent from 3.05 percent.
Rates have risen in recent weeks amid signs of improvement in the economy.
A government report issued Tuesday showed that more Americans bought new homes in April, evidence that the stronger job market is propelling the housing market. New-home sales climbed 6.8 percent last month to a seasonally adjusted annual rate of 517,000.
Rising demand has created a supply crunch, and the limited inventory has pushed up prices.
WASHINGTON (AP) -- The FBI says it's begun an investigation into the theft of personal tax information of more than 100,000 taxpayers from an Internal Revenue Service website.
The FBI said Thursday that agents were "working to determine the nature and scope of this matter." The agency is advising individuals it's contacted to take steps to safeguard their personal information.
IRS Commissioner John Koskinen has said the information was stolen as part of an elaborate scheme to claim fraudulent tax refunds.
Two officials told The Associated Press on Wednesday that IRS investigators belief the identity thieves are part of a sophisticated criminal operation based in Russia.
The information was taken from an IRS website called "Get Transcript," where taxpayers can get tax returns and other tax filings from previous years.
WASHINGTON (AP) -- Federal regulators say Teva Pharmaceuticals Industries will pay $1.2 billion to settle charges that one of its subsidiaries illegally blocked the launch of generic versions of the blockbuster sleeping pill Provigil.
The settlement announced Thursday is a major victory in the government's campaign against a common drug industry practice known as "pay-for-delay" deals. Drugmakers have long maintained the deals help resolve costly patent litigation between branded drugmakers and their generic counterparts. But Federal Trade Commission officials say the agreements keep cheaper forms of medicines off the market, driving up costs for consumers.
The FTC settlement stems from charges brought in 2008 against Cephalon Inc., which was acquired by Teva in 2012. The FTC alleged that Cephalon paid four generic firms over $300 million to delay launching their drugs until 2012.
INTERNET FOR THE POOR
NEW YORK (AP) -- The head of the Federal Communications Commission is proposing that the government agency expand a phone subsidy program for the poor to include Internet access.
The FCC chairman, Tom Wheeler, has called broadband a critical service for modern life.
But many low-income people don't have access. According to a Pew Research Center report from 2013, 70 percent of U.S. adults have a high-speed Internet connection at home. Only 54 percent of households earnings less than $30,000 a year do.
The FCC says low-income Americans are more likely to rely on smartphones for Internet access. According to the Pew report, 67 percent of households that make less than $30,000 a year have home broadband or a smartphone.
The program, called Lifeline, has been funded by surcharges on telephone customer bills.
ATHENS, Greece (AP) -- Greece says it aims to clinch by Sunday a deal with creditors to get more rescue loans.
Government spokesman Gabriel Sakellaridis told reporters at a briefing on Thursday that "we are going into these negotiations with the aim to have a deal by Sunday."
Reports from Greece Wednesday that a deal was near caused a market rally, but the optimism proved short-lived as key creditor states, like Germany, quickly warn that a final agreement remained elusive.
Greece has been in talks for four months on what reforms it should make to get the final installment of its bailout program, worth 7.2 billion euros ($8 billion) from fellow eurozone states and the International Monetary Fund. Without the money, it will be unable to pay debts due as soon as June 5.
DRESDEN, Germany (AP) -- Top finance officials from the Group of Seven wealthy democracies are debating ways to broaden and strengthen economic recoveries that aren't as robust as everyone would like.
Finance ministers and central banks traded ideas on growth-boosting reforms and discussed financial markets and monetary policy.
Officials said the discussions in Dresden, Germany, were marked by concern over growth that is uneven and below long-term averages. U.S. Treasury Secretary Jacob Lew has pressed countries in good financial shape such as host Germany to do more to boost growth.
Both the U.S. and Europe are growing. But unemployment remains high in the 19-country eurozone.
The meeting is a discussion forum that sets up final positions to be taken at a summit of presidents and prime ministers July 7-8 outside Munich.
NEW YORK (AP) -- Avago Technologies is buying rival chipmaker Broadcom in a cash and stock deal worth about $37 billion.
The deal, announced Thursday, comes at a time when technology stocks are booming and the companies that make the guts for tablets and smartphones are looking for ways to grow aggressively.
Avago Technologies Ltd. will pay $17 billion in cash, along with the equivalent of about 140 million Avago shares, which were worth about $20 billion when the markets closed Wednesday.
Broadcom shareholders will be able to trade each of their current shares for either a cash payment of $54.50, or 0.4378 shares of the new company's stock.
When the deal closes, Broadcom shareholders will own about 32 percent of the combined company.
Broadcom Corp. is based in Irvine, California.
JOHNSON & JOHNSON-CARDINAL HEALTH
J&J accepts offer from Cardinal Health for Cordis unit
NEW YORK (AP) -- Health care giant Johnson & Johnson has formally accepted a $2 billion offer to sell its Cordis heart devices unit to Cardinal Health.
The offer was initially made March 1. The companies expect the deal to close toward the end of 2015.
The Cordis business, which is based in Fremont, California, had 2014 revenue of about $780 million. The U.S. is its biggest single market, but 70 percent of total sales come from outside the U.S.
Cordis has operations in more than 50 countries, including China, Japan, Germany, Italy, France, the U.K. and Brazil.
AMAZON-FREE SAME-DAY DELIVERY
NEW YORK (AP) -- Amazon wants to make your impulse buys even more impulsive. The e-commerce powerhouse is offering free same-day delivery service in some cities to its Prime loyalty club members.
Amazon says starting Thursday more than 1 million items including books, electronics and vacation gear will be eligible for same-day delivery in 14 metro areas including New York, Los Angeles, the San Francisco Bay Area, Philadelphia, Phoenix and Atlanta. Orders over $35 are eligible for the service. They need to be placed by noon and will be delivered by 9 p.m.
Orders under $35 can still have one day delivery, it just costs $5.99.
Previously the service cost $5.99 for Prime members and $9.98 for non-Prime members for the first item, plus 99 cents for each additional item.
NYC TAXIS-REGULATING UBER
NEW YORK (AP) -- Uber and Lyft are pushing back against a New York City effort to regulate app-based ride-hailing services.
The proposal before the city's Taxi and Limousine Commission would require car services that riders can book with their smartphones to comply with many of the rules that govern the yellow cabs with which they compete.
The proposed rule changes would address fares, the availability of wheelchair-accessible cars and restrictions on picking up passengers at airports.
San Francisco-based Uber and Lyft say the regulations would discourage innovation.
A few dozen drivers in black shirts protested outside the taxi commission's Manhattan headquarters before a hearing on Thursday. They chanted: "We love Uber!"
ATLANTIC CITY-MISSING LOAN MONEY
ATLANTIC CITY, N.J. (AP) -- A loan program that was supposed to lend as much as $40 million to struggling homeowners and businesses in cash-strapped Atlantic City has given out nothing and instead led to a federal lawsuit.
Atlantic City is suing to get back $3 million it gave to the company that has failed to run the Community Loan Program. The program was launched in 2013 by Lorenzo Langford, who was mayor at the time.
The Associated Press found that the company is partially owned by relatives of a former aide to Langford. ZeMurray Street Capital used most of the money to buy a Tennessee firm that has since had management of its government-backed loans taken away by the Small Business Administration.
The lawyer for the company and W. Wesley Drummon denies the city's claims. He says city lawyers had reviewed the loan program.
Side RoadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
Closings and DelaysThese are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
Educator of the YearVote now for Educator Of The Year!
Deaf & Hard of HearingInformation provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
Sponsored EventsCheck Back Often for NewsChannel9 Sponsored Events!