TVA Reports First Quarter FY2014 Results
KNOXVILLE, Tenn. ― The Tennessee Valley Authority reported Tuesday that operating expenses declined and its bottom line results improved in the first quarter of fiscal year 2014 compared with the same quarter a year ago.
“Our efforts to keep rates low and reliability high for our customers by working more efficiently helped to offset lower sales and revenues reported in the first quarter of 2014,” TVA President and CEO Bill Johnson said.
TVA reported a $67 million net loss on operating revenues of $2.38 billion in the first quarter of 2014, an improvement over a $245 million loss on revenues of $2.58 billion for the same period last year.
TVA’s first-quarter filing to the U.S. Securities and Exchange Commission covered the three months ended Dec. 31, 2013, a period between summer and winter when lower demand for electricity typically results in a net loss.
Compared with last year, operating and maintenance expenses were down $112 million, or 12 percent, in the first quarter of 2014. This was driven by a $91 million decrease in expenses from planned outages, projects and scheduled maintenance, and a reduction in contract labor through cost-saving initiatives. A $10 million increase in coal-fired operation outages partially offset the O&M savings.
“We continued to see positive results from our efforts to achieve sustainable operating and maintenance cost reductions during the first quarter,” Chief Financial Officer John Thomas said. “The actions we are taking now help position TVA to remain financially healthy and meet our goal of reliable, low-cost and cleaner energy for the people of the Valley.”
Total operating expenses were 14 percent lower than the same period last year, driven primarily by a 32 percent decrease in fuel expenses. TVA’s nuclear and hydroelectric generation increased 29 percent and 30 percent, respectively, compared to the first quarter of last year, helping to drive the lower fuel costs. A 2 percent increase in purchased power expense also partially offset higher gas prices.
Operating revenues, impacted by lower fuel recovery costs, were $197 million lower compared with last year’s first quarter. TVA’s use of less-expensive nuclear and hydroelectric generation helped reduce fuel costs recovered through rates by $255 million, a decrease partially offset by a $60 million increase in base revenue.
“We were pleased to see such strong performance from our nuclear and hydro power assets and our entire fleet during the quarter, helping us provide low-cost reliable power,” said Johnson. “This demonstrates the value and flexibility of TVA’s well-diversified power system.”
Total electricity sales were down 3 percent for the quarter, primarily due to the loss of TVA’s largest directly served customer. But sales to local power companies were 7 percent higher as a result of cooler weather than a year ago and some growth in electric demand.
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Last Update on August 04, 2015 07:28 GMT
FOSSIL FUELS ON SALE
NEW YORK (AP) -- These days it seems whatever can be burned to power a car, heat a home, make electricity or ship people and goods around the globe is being sold at bargain basement prices.
Prices for coal, natural gas, oil and the fuels made from crude such as gasoline and diesel are all far less expensive than they have been in recent years.
Consumers are rejoicing. Fossil fuel companies are reeling. Countries that import energy, such as the U.S., China, Japan and those in the European Union, are getting an economic boost. Exporters, such as Russia, Saudi Arabia and Venezuela are facing lower income and budget shortfalls.
Commodities in general are slumping. The S&P global commodity index hit its lowest level since 2002 on July 27, lower even than during the 2008 global financial crisis.
The recent price declines are a result of complex factors that have led to a simple outcome: There is more than enough fossil fuels at the ready than customers need.
THE DAY AHEAD
WASHINGTON (AP) -- The Commerce Department will be releasing factory orders for June. Today's release is set for 10 a.m. EST.
In Germany, Automaker BMW AG will report its second-quarter earnings.
On Wall Street, Aetna reports quarterly financial results before the market opens. Other pre-market quarterly reports are due to be released by CVS Health, Walt Disney, and Freddie Mac.
NEW YORK (AP) -- Investment giant Pimco says the Securities and Exchange Commission is looking into its total-return fund.
Pimco says it was notified that the SEC is looking into the valuation of smaller-sized positions in non-agency mortgage-backed securities purchased by the fund between its inception on Feb. 29, 2012 and June 30, 2012. The SEC is also investigating the fund's performance disclosures for that period and its compliance policies and procedures.
Pacific Investment Management Co. says it received a Wells notice, which means SEC investigators are recommending that the agency take civil action against the company. The SEC is not formally accusing Pimco or the Pimco Total Return Active Exchange-Traded Fund of wrongdoing.
The SEC declined comment.
GENERAL MOTORS-IGNITION SWITCH DEATHS
DETROIT (AP) -- According to a fund set up to compensate victims General Motors' faulty ignition switches were responsible for at least 124 deaths and 274 injuries. The fund, administered by attorney Kenneth Feinberg, updated the totals Monday.
Victims' families are being offered compensation of at least $1 million each. The fund has finished processing the 4,342 claims it received by the Jan. 31 deadline. Of those, 91 percent -- or 3,938 -- were deemed ineligible. Feinberg is waiting for additional documentation for six claims.
Fund spokeswoman Camille Biros says 385 compensation offers have been made so far and 275 have been accepted. Five have been rejected.
GM recalled 2.6 million Chevrolet Cobalts and other small cars last year but acknowledged it knew about the ignition switch problems for more than a decade.
MEDICAL DATA HACK
FORT WAYNE, Ind. (AP) -- An Indiana medical software company has reported the private information of 3.9 million people nationwide was exposed when its networks were hacked earlier this year.
That's according to the U.S. Department of Health and Human Services. Medical Informatics Engineering reported the number of people affected by the hack to the federal agency on July 23.
The Fort Wayne company announced June 10 that the attack on its main network and its NoMoreClipboard network began May 7 and was detected May 26. The company said the exposed information includes names, addresses, birthdates, Social Security numbers and health records.
Indiana Attorney General Greg Zoeller has urged all state residents to freeze their credit in the wake of the hack. He said his office is investigating the breach.
A list of affected providers can be found online at www.mieweb.com/notic
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