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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 November 24, 2014 08:29 GMT
CAMARILLO, Calif. (AP) -- A national survey reveals the average price of regular gasoline has plunged another 10 cents a gallon over the past two weeks, to $2.84.
Industry analyst Trilby Lundberg says the decline continues a trend that has seen prices in the U.S. fall by 88 cents since May.
Lundberg says lower crude oil prices are continuing to drive prices down, along with an abundant oil supply and the rising value of the U.S. dollar.
The highest priced gas in the Lower 48 states was found in San Francisco at $3.14 a gallon. The lowest was in Albuquerque at $2.47 a gallon.
The average price for midgrade gas in the U.S. is $3.08. For premium it's $3.24.
REGULATING CAR SERVICES
RALEIGH, N.C. (AP) -- North Carolina has become a prime market for the smartphone-based car services Uber and Lyft -- and is likely to join a push around the country to regulate the fast-growing businesses.
A big draw for the companies is the state's mix of mid-sized cities, which are full of college students but lack extensive mass transit networks to serve their spread-out geography.
The companies' expansion has legislators in North Carolina and elsewhere scrambling to study their business models ahead of sessions in 2015 when they could address insurance, car inspections or criminal background checks.
Transportation analyst Douglas Shinkle of the National Conference of State Legislatures thinks at least 20 legislatures are likely to take up legislation on Uber, Lyft and similar services in 2015 after several passed laws this year.
MERGER SURGE-HEALTH INDUSTRY
Health care M&A leads global deal surge
UNDATED (AP) -- It's been a big year for deal making and the health care industry is especially visible in that arena.
Large drugmakers are buying and selling businesses to control costs and deploy surplus cash. A rising stock market, tax strategies and low interest rates are also fueling the mergers and acquisitions.
It's all combining to make 2014 the most active year for health care deals in at least two decades. Data provider Dealogic says the industry has announced about $438 billion worth of mergers and acquisitions worldwide so far, about 14 percent of the $3.2 trillion total for all industries. Overall, M&A is on track for its best year since 2007, the year before the financial crisis intensified.
One analyst says deals are being driven by "cost pressure on the entire health care system," as insurers and government health plans increasingly hold down or even reduce reimbursements to drug, device and service providers.
Companies also are looking to expand market share, and boost their portfolios in hot areas such as drugs for cancer and hepatitis C.
JACOBS ENGINEERING-CEO RETIREMENT
PASADENA, Calif. (AP) -- The construction services firm Jacobs Engineering says CEO Craig Martin will retire in late December because of health reasons.
The company announced Sunday that former CEO and current board chairman Noel Watson will serve as executive chairman until a replacement for Martin is found.
The 65-year-old Martin joined Jacobs in 1994 and became CEO in 2006.
The Pasadena, California-based company helps design and build large, complex facilities for oil and gas companies, chemicals companies, governments and a variety of industrial customers.
Martin will step down Dec. 26, the last day of the company's first fiscal quarter.
MINNEAPOLIS (AP) -- Icy conditions have forced an early end to shipping on the Upper Mississippi River.
The season officially closed Thursday with the towboat Mary K. Cavarra and its load of four barges heading south through Lock & Dam No. 2 at Hastings, Minnesota.
The Star Tribune (http://strib.mn/1yIQ8un ) reports it's the earliest closing in 45 years. The season began last spring with the second-latest opening and came to a 26-day halt in midsummer so crews could clear flood-borne silt from the navigation channel.
Executive director Bob Zelenka of the Minnesota Grain and Feed Association says it's been a challenging year. Zelenka says the river is the cheapest way of moving crops. But the river's early closure means finding alternative ways to get those crops to New Orleans and foreign export markets.
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