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 April 17, 2015 17:12 GMT
WASHINGTON (AP) -- Rising gas prices in March led to a slight increase in inflation, a sign that some of the broader economic impact from cheaper oil is fading.
The Labor Department says the consumer price index rose 0.2 percent in March. Inflation moved at that same pace in February, which ended three straight monthly declines caused largely by falling oil and gasoline prices.
Gas prices remain about 33 percent lower than a year ago, but they bounced up 3.9 percent from February to March. Over the past 12 months, consumer prices have slumped 0.1 percent.
Outside food and energy, core prices also rose 0.2 percent in March. The cost of clothes, housing, cars, and medical care increased, while food and airfare decreased. Core prices have risen 1.8 percent in the past year.
WASHINGTON (AP) -- An index designed to predict the future health of the economy slowly crept upward for the third straight month, a sign that the pace of growth has been weakening since the start of 2015.
The New York-based Conference Board says its index of leading indicators rose 0.2 percent in March, after gains of 0.1 percent in February and 0.2 percent in January.
Building permits were the weakest part of the index, while slowdowns in average working hours and new factory orders have also been in a drag over the past six months.
Conference Board economists say that the modest gains may be signaling a continued decline in growth over the coming months.
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Net income from the part of GE that the company will retain after the sale fell 5 percent to $3.1 billion, the company said Friday. Adjusted earnings per share fell 6 percent to 31 cents, a penny better than analysts polled by Zacks Investment Research expected, on average.
Revenue fell 12 percent to $29.4 billion, below the $34.4 billion analysts expected.
GE announced last week it would sell most of the assets in its GE Capital subsidiary, the latest and most dramatic move by the company to transform itself into a more focused industrial conglomerate that makes large, complicated equipment for other businesses.
Costs and charges associated with the sale totaling $14.1 billion pushed the company to an overall loss of $13.57 billion in the quarter, down from a profit of $3 billion during last year's first quarter. On a per-share basis, the company lost $1.35.
WINSTON-SALEM, N.C. (AP) -- Reynolds American's first-quarter profit climbed, helped by increased cigarette prices. Its adjusted profit beat analysts' expectations.
The parent of the Camel and Pall Mall cigarette brands earned $389 million, or 73 cents per share, for the three months ended March 31. A year earlier it earned $363 million, or 67 cents per share.
Earnings, adjusted for non-recurring costs, were 86 cents per share.
Revenue amounted to $2.06 billion in the period.
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Users said the outage started as trading was getting in full swing around 8 a.m. in London.
By day's end in London, Bloomberg said its service had been "fully restored." In a statement, it said hardware and software failures in its network caused excessive volumes that led to customer disconnections as a result of the machines being overwhelmed.
Though the outage is an extremely rare phenomenon for the firm started by former New York mayor, Michael Bloomberg, in the early 1980s, it's likely to cause concern at the company.
Bloomberg has become the world's biggest financial information provider, overtaking rival Reuters.
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Economy minister Akira Amari announced plans for the talks with U.S. Trade Representative Michael Froman late Friday.
The U.S. and Japan must agree on market-opening measures before the 12 countries involved can reach a long-delayed final accord on the U.S.-led Trans-Pacific Partnership, a Pacific Rim trade pact.
An agreement by U.S. lawmakers Thursday to propose legislation allowing President Barack Obama to negotiate trade accords for overall congressional review appeared to help move things along.
The plan for Cabinet-level talks suggests the two sides made progress this week on resolving differences over the pace and scale of market opening.
WASHINGTON (AP) -- President Barack Obama says the politics of international trade have always been difficult, especially within the Democratic Party. But he says U.S. opposition to new trade agreements would give China a leg up in setting the rules for commerce.
Obama's seeking to reassure critics by saying deals with Asia and Europe would have enforceable labor and environmental protections.
Obama spoke at a news conference with Italian Prime Minister Matteo Renzi.
Top congressional lawmakers reached a deal Thursday to pave the way for the broadest trade policy pact in years. Under the agreement, Obama would be allowed to negotiate trade accords that Congress could approve or reject, but not change.
That authority would set the stage for Obama to complete a sweeping trade agreement with 11 Pacific nations.
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The China Securities Regulatory Commission has banned a type of financing called an umbrella trust, tightened control over other financing and told brokerages to limit potential risks, the commission said in a statement Friday.
The statement cited comments by the commission's deputy chairman, Zhang Yujun, to a gathering of brokerage executives.
China's stock market has doubled over the past year as more small investors shift money into stocks. Tighter control over lending might reflect concerns that investors are taking on too much risk.
Zhang was cited as saying the commission plans to intensify inspection and law enforcement efforts.
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Dependent on funds from two multi-billion euro bailouts since 2010, Greece is fast running out of cash. Negotiations with representatives of its creditors in other eurozone countries, the International Monetary Fund and the European Central Bank have not gone well, with the new left-wing government in Athens insisting their demands are too onerous.
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Among other steps announced Friday by the Department of Transportation is a warning to railroads to use the latest technology to check for flaws in train wheels.
Major freight railroads are already limiting oil trains to no more 40 mph in urban areas under a voluntary agreement, but the order makes that a requirement and extends it to trains carrying other flammable liquids like ethanol.
There have been dozens of fiery crashes over past decade involving trains hauling oil and ethanol in the U.S. and Canada.
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Government auditors have consistently questioned whether the public is getting a fair return from the 12.5 percent royalty now being charged.
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