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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 September 02, 2014 07:31 GMT
LONDON (AP) -- The euro has fallen to a near one-year low against the dollar in the wake of soft European economic data and uncertainty over the crisis in Ukraine.
Europe's single currency fell to a low of $1.3119 after a survey Monday showed that the manufacturing sector across the 18-nation eurozone lost momentum in August. The euro hasn't been lower since early September of last year.
The main reason behind the euro's recent weakness has been a growing expectation that the European Central Bank may be considering a monetary stimulus to boost the ailing eurozone economy. In the second quarter, growth in the eurozone ground to a halt.
The crisis in Ukraine has also hobbled the eurozone's economic outlook. Uncertainty over how the conflict will turn out has made businesses hesitant to invest.
FRANKFURT, Germany (AP) -- Europe's economic recovery is in danger. Governments are under pressure to save it, but they are also struggling with political obstacles and disagreement among themselves over what to do.
Instead, the region is pinning its hopes -- once again -- on the European Central Bank, which is expected to launch new stimulus measures if the economy gets any worse.
Europe's lack of growth is looming larger and larger, however, and the ECB says it can't save the economy alone.
For more than five years since the eurozone hit turbulence over too much debt in 2009, governments' answer has been to raise taxes and restrain spending. And there's been some progress. Deficits have shrunk, and countries that needed bailout loans are slowly getting their act together.
But second quarter growth was zero, after only four quarters of measly expansion
BEIJING (AP) -- An American business group warns that foreign companies in China feel increasingly targeted for unfair enforcement of anti-monopoly and other laws and says investment might decline if conditions fail to improve.
The American Chamber of Commerce's report adds to mounting complaints about a flurry of investigations of global automakers, technology suppliers and other companies in recent months. Some foreign managers say Chinese authorities appear to be trying to hamper them and shield domestic rivals from competition.
The American Chamber of Commerce in China says almost half of companies responding to a survey "believe that foreign companies are being targeted." It said the risk was increasing that China "will permanently lose its luster as a desirable investment destination."
Uncertainty over regulatory investigations adds to challenges for foreign companies at a time when China's growth is slowing and they face more competition from ambitious local rivals.
MILWAUKEE (AP) -- President Barack Obama is touting signs of a continuing emergence from the Great Recession, telling people in Milwaukee the nation's business engines, quote, "a revving a little louder."
The president has used a Labor Day address to put on a new push for increasing the federal minimum wage. Thirteen states have acted on their own to raise their minimum wages.
Until now, Obama and his White House aides had been reluctant to draw too much attention to positive economic trends, worried that some might not be real.
But in Milwaukee, he dared to say, in his words, "We're on a streak."
White House still insist that they are not yet declaring full victory over the lingering effects of a recession that officially ended five years ago.
NEW YORK (AP) -- McDonald's, Wendy's and other fast-food restaurants are expected to be targeted with acts of civil disobedience that could lead to arrests Thursday as labor organizers escalate their campaign to unionize the industry's workers.
Kendall Fells, an organizing director for Fast Food Forward, said workers in a couple of dozen cities were trained to peacefully engage in civil disobedience ahead of this week's planned protests.
Fells declined to specify what is in store for the protests in roughly 150 U.S. cities. But workers recently cited sit-ins as an example of tactics they could use to intensify their push.
The "Fight for $15" campaign is being backed by the Service Employees International Union.
The National Restaurant Association called the protests attempts by labor groups "to boost their dwindling membership."
CHICAGO (AP) -- A new study says Americans' eating habits have improved -- except among the poor.
Those results show a widening wealth gap when it comes to diet. Yet even among wealthier adults, food choices remain far from ideal.
The 12-year study used an index of healthy eating where a perfect score is 110. U.S. adults averaged just 40 points in 1999, and that climbed to 47 points in 2010. Scores for low-income adults were lower than the average and barely budged during the years studied.
Higher scores mean greater intake of heart-healthy foods including vegetables, fruits, whole grains and healthy fats. Low scores mean less of those foods and a greater chance for diet-related illnesses including diabetes, heart problems and obesity.
The study was published Monday in JAMA Internal Medicine.
RALEIGH, N.C. (AP) -- North Carolina business recruiters offered Toyota more than $100 million for the world's largest carmaker to move its North American headquarters to Charlotte rather than a Dallas suburb but still lost out to a Texas offer half that size.
Texas and local officials in the Dallas suburb of Plano offered Toyota less than $50 million.
Both Toyota and North Carolina Commerce Secretary Sharon Decker agree that the company's decision shows incentive money was just one of many considerations the company considered when deciding to move from the Los Angeles area.
North Carolina recruiting documents and emails released last week after a public records request show only about a quarter of the people filling nearly 3,000 jobs were expected to move from Southern California. The pay for those jobs averages $105,000 a year.
ATLANTIC CITY, N.J. (AP) -- The most spectacular and costly failure in Atlantic City's 36-year history of casino gambling has begun to play out as $2.4 billion Revel Casino Hotel empties its hotel.
The casino is scheduled to close Tuesday.
Revel is shutting down a little over two years after opening with high hopes of revitalizing Atlantic City's struggling gambling market.
But the business has been mired in its second bankruptcy in as many years, Revel has been unable to find anyone willing to buy the property and keep it open as a casino.
Analysts and competitors say Revel was hampered by business decisions including a total smoking ban, the lack of a buffet and daily bus trips to and from the casino, and the lack of a players' database from which to solicit customers.
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