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TVA Reports Sales Flat in First Fiscal Quarter 2013
The Tennessee Valley Authority reported Tuesday that electricity sales were relatively flat in the first quarter of fiscal year 2013, total revenues were consistent with the prior year and net income was down.
“TVA’s total operating revenues remain on plan,” new President and CEO Bill Johnson said. “We continue to drive performance and process improvements in order to provide cleaner and low-cost energy to our customers.”
Higher off-system sales as a result of excess generation and closer to normal temperatures for the period, compared with even warmer weather a year ago, contributed to a slight 0.2 percent increase in total electricity sales, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the three months ended Dec. 31, 2012.
Sales to TVA’s municipal and cooperative power distributors were up primarily due to the weather. Offsetting these increases were lower sales to directly served industrial customers.
Operating revenues were $11 million higher compared with last year. The increase was primarily due to an $82 million increase in fuel cost recovery and a $14 million increase in other revenue sources, partially offset by an $85 million decrease in base revenue. TVA is transitioning to time-of-use rate structures with its customers, which may result in reduced overall effective base rates in certain periods and higher rates in others.
“As expected, the change in rate products is better aligning rates with the cost of service. We are seeing reduced base rates during transition months and winter months, and expect to see higher revenues during the summer months,” Chief Financial Officer John Thomas said. “However, cost-savings actions we took last year have positioned TVA to remain financially healthy throughout the year.”
Total operating expenses were 4 percent higher than the same period last year, driven primarily by a 24 percent increase in fuel expenses. Offsetting the higher fuel expense was a 23 percent decline in purchased power expenses, as TVA used more of its own generation sources to meet demand. Operating and maintenance expense increased by $39 million, or 4 percent, in the first quarter of 2013. This increase was primarily driven by a $111 million increase for nuclear refueling outages in the first quarter, compared with no refueling outages in the same period last year. Partially offsetting this increase was a $49 million decline in coal-fired operation outage and project expenses.
TVA reported a net loss of $245 million on operating revenues of $2.58 billion in the first quarter of 2013, compared with a net loss of $173 million on revenues of $2.57 billion in the same period last year.
TVA executive management will host a first quarter fiscal year 2013 financial conference call at 9:30 a.m. EST on Tuesday, Feb. 5, 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. EST, Feb. 12, 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 10023947. 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 Dec. 31, 2012, 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.
Wednesday, February 6 2013, 11:58 AM EST
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Last Update on October 17, 2014 17:22 GMT
NEW YORK (AP) -- General Electric says its third quarter profit rose 11 percent.
The company's aviation division, which sells and services aircraft engines and accounts for the biggest share of company profits, performed well as did company's oil and gas division, which makes and services drilling equipment.
GE reported net income of $3.54 billion for the quarter on sales of $36.17 billion. GE's operating earnings rose to 38 cents per share, beating Wall Street expectations.
CEO Jeff Immelt says in a statement that the global economic environment is "volatile, but infrastructure growth opportunities exist."
GE shares are up about 3 percent on the New York Stock Exchange.
NEW YORK (AP) -- Morgan Stanley's third-quarter net income nearly doubled.
The investment bank earned more than $1.7 billion. After adjustments, per-share earnings were 65 cents, easily topping Wall Street expectations.
Morgan Stanley had a large increase in pre-tax income for its institutional securities business, which includes the firm's prime brokerage, trading and investment banking divisions. It also had a large increase in its equity underwriting business, which has been helped by initial public offerings, including that of Alibaba, the largest IPO ever including options offered to underwriters. Institutional securities earned $1.2 billion in the quarter, more than three times the earnings in the same period last year.
Wealth management, which includes Morgan Stanley's Smith Barney franchise, reported a pre-tax profit of $836 million, up from $668 million a year ago.
WASHINGTON (AP) -- Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.
The Commerce Department says housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes. Most of the gains came from apartment construction, which increased 18.5 percent after plunging in August.
The sluggish recovery and meager wage growth has left more Americans renting, instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months, although the pace is volatile from month to month.
Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.
Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million.
OBAMA-FINANCIAL DATA SECURITY
WASHINGTON (AP) -- President Barack Obama says the United States must do more to stop security breaches for credit and debit card users.
Obama says for victims of fraud and identity crimes, it's infuriating and heartbreaking. He says the problem requires a hands-on approach across the government.
Obama is signing an executive order creating a new plan called BuySecure to tighten security for the debit cards that transmit federal benefits like Social Security to millions of Americans. Cards issued by the federal government will now have an internal chip replacing magnetic strips.
Obama says Congress must do its part, too. He wants Congress to pass a single, national standard.
An estimated 100 million people have been affected by breaches in the past year, including at big retailers like Target and Home Depot.
WASHINGTON (AP) -- A North Carolina drugmaker plans to test its experimental antiviral drug in patients who have Ebola, after getting authorization from regulators at the Food and Drug Administration.
Chimerix Inc. said Thursday that it has received FDA clearance to proceed with a trial examining the safety and effectiveness of its brincidofovir tablets in patients who have the virus. The company said in a statement that the drug is available for immediate use in testing.
With FDA's permission, the Durham, North Carolina, drugmaker previously made the drug available to the first Ebola patient diagnosed in the U.S., who died in Dallas last week.
The FDA does not publicly confirm when it has granted companies permission to begin testing. The agency has not approved any drugs or vaccines to treat Ebola.
WASHINGTON (AP) -- Federal Reserve Chair Janet Yellen says the last several decades have seen the most sustained rise in income inequality in a century.
In a speech to a Boston conference on economic opportunity, Yellen says this problem is of great concern to her and she points to increased education and ownership of small businesses as two ways to deal with the problem.
She says that by some measurements income and wealth inequality are now at their highest levels since the 19th century. She says this is a result of significant income gains at the very top and stagnant living standards for the majority of Americans.
In her remarks, Yellen made no comments on the current state of the economy or on the future course of interest rates.
NEW YORK (AP) -- Microsoft's CEO is continuing to try to repair damage caused by his gaffe last week at a women-in-computing conference. CEO Satya Nadella on Thursday sent a memo to staff saying all employees at Microsoft will receive expanded training on how to foster an inclusive culture.
In his memo, Nadella also said the company must not only focus on equal pay for equal work, but the opportunity to do equal work. He added that Microsoft needs to recruit more diverse talent.
Nadella was widely criticized after suggesting that women don't need to ask for raises and should just "trust" the system to pay them what they're worth. He later apologized in a tweet and then formally retracted his statements on the company's website.
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