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TVA Reports Fiscal Year-End 2013 Results
The Tennessee Valley Authority reported Monday that the public-owned utility ended fiscal 2013 with net income of $271 million on $11 billion in operating revenues despite a decline in sales, while record levels of low-cost hydroelectric generation helped offset higher fuel costs.
“TVA reported solid financial results in 2013 despite lower sales and revenues,” TVA President and CEO Bill Johnson said.
“We experienced lower demand for power during the year due to the shutdown of a major customer facility, a slow-growing economy and adoption of energy conservation by customers,” he said. “We expect to see low growth in power demand into the next decade, and we are committed to living within our means to keep rates low for our customers and the people of the Tennessee Valley.”
Sales to local power companies were up slightly in 2013 as compared with 2012, as more normal weather patterns returned in 2013, favorably impacting demand. Sales to industrial customers directly served by TVA were off 15 percent from the prior year, primarily due to the U.S. Enrichment Corp.’s closure of its uranium enrichment facility near Paducah, Ky. Lower sales to directly served industrial customers were offset by higher off-system sales resulting from excess generation, TVA said Monday in its 2013 annual financial report to the U.S. Securities and Exchange Commission.
Total revenues declined 2 percent in 2013 compared with the prior year. The decrease was driven by a decline in base revenue as local power companies implemented new TVA wholesale rate structures, and lower fuel cost recovery revenues as a result of lower electricity sales.
Lower-cost nuclear generation was down 6 percent in 2013 versus 2012 due to four nuclear refueling outages and a steam generator replacement project, compared with two nuclear refueling outages the previous year. As a result, fuel expense increased $140 million in 2013 compared with 2012.
Record levels of rainfall in 2013 produced 42 percent more low-cost hydroelectric generation compared with 2012, which helped to partially offset higher cost generation resources.
Operating and maintenance expenses were reduced by $82 million in 2013 compared with 2012. The decrease was driven by fewer outage costs and lower scheduled maintenance for coal-fired units due to retirement or idling of less efficient coal units, and decreased costs related to post-employment benefits. Offsetting the decreases were expenses related to the four nuclear outages and other projects in 2013.
“Our company-wide efforts to enhance productivity and reduce costs will keep TVA competitive as we remain committed to fulfilling TVA’s mission,” Chief Financial Officer John Thomas said. “The actions our employees took throughout the year allowed us to end 2013 with a positive position and remain financially healthy.”
TVA reported net income of $271 million on $11 billion in operating revenues for fiscal 2013, compared with net income of $60 million on $11.2 billion in revenues last year.
TVA executive management will host a fiscal year-end 2013 financial conference call at 9:30 a.m. EST on Monday, Nov. 18, 2013. The conference call can be accessed on TVA’s website via webcast at http://www.tva.com on the Investor Relations homepage. 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 9:00 p.m. EST, November 26, 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 10034053. A webcast replay and transcript will also be available for one year on TVA’s website at http://www.tva.com/finance.
TVA’s annual report on Form 10-K provides additional financial, operational and descriptive information, including audited financial statements for the year-ended September 30, 2013, 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.
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Last Update on October 23, 2014 07:29 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department will report today on the number of people who applied for unemployment benefits last week. Economists forecast that weekly applications increased 16,000 to a seasonally adjusted 280,000.
Also today, Freddie Mac will report on average mortgage rates for this week. Last week, the average for the 30-year loan slid to 3.97 percent.
The Conference Board will release its index of leading indicators for September as well. In August, the index - a gauge designed to predict the economy's future health - rose but at a much slower pace than the previous month
On the business side: Southwest Airlines, United Continental, American Airlines, Union Pacific, 3M, Comcast, General Motors and Caterpillar will report quarterly financial results before the market opens.
Amazon and Microsoft will report earnings after the market closes.
APPLE PAY GLITCH
SAN JOSE, CALIF. (AP) -- Bank of America is apologizing for double-billing customers who made purchases using Apple's new mobile payments service.
A bank spokeswoman said Wednesday that the glitch involved about 1,000 transactions and that all duplicate charges will be refunded.
Some customers who used Apple Pay with debit cards issued by Bank of America have complained they were charged twice for a single transaction.
Apple says it was aware of the glitch, which it said affected "a very small number of Apple Pay users." The Cupertino, California-based company has not disclosed how many customers have used Apple Pay since it became available Monday.
CAMBRIDGE, Mass. (AP) -- The American Postal Workers Union called upon Harvard University's president to oppose a deal between Staples Inc. and the U.S. Postal Service, or resign her seat on the office supply company's board.
Staples, based in Framingham, Massachusetts, began providing postal services at some of its stores last year, under a partnership with the financially-struggling Postal Service.
The union, which represents some 200,000 workers, took out a full-page ad Wednesday in the Harvard Crimson, the Ivy League school's student newspaper, saying President Drew Gilpin Faust should use her position on the board to push for an end to the deal or resign from the company board. The union says Staples is using poorly-trained workers to handle mail in a low-security environment.
Neither Faust nor Staples responded to requests for comments.
YAHOO-CEO AT CROSSROADS
SAN FRANCISCO (AP) -- Signaling her reign has reached a pivotal juncture, Yahoo CEO Marissa Mayer is trying to convince restless shareholders that the long-struggling Internet company is heading in the right direction.
Mayer staunchly defended her strategy during a Tuesday presentation that addressed recent criticism leveled by activist investor Starboard Value LP, a New York hedge fund with a history of leading shareholder mutinies.
Starboard contends that since Mayer became CEO in July 2012, Yahoo has been wasting money on ill-advised acquisitions and a bloated payroll while mismanaging its lucrative stake in Chinese e-commerce company Alibaba Group.
In her rebuttal, Mayer described the $1.6 billion spent her more than 30 acquisitions as smart investments that have made Yahoo more competitive in the increasingly important mobile-device market. She also highlighted cost-cutting measures.
And she insisted that Yahoo wouldn't have been in a position to make as much money as it has on its Alibaba holdings if she hadn't taken steps to ease "years of tension and hard feelings.
Zuckerberg speaks Chinese; Beijing students cheer
BEIJING (AP) -- China may ban Facebook, but not its co-founder Mark Zuckerberg, and he entertained an audience of students with a 30-minute chat in his recently learned Mandarin Chinese at a prestigious Beijing university.
There was no explicit discussion of the ban or any Facebook effort to enter the China market during Wednesday's question-and-answer session at Tsinghua University.
But Facebook CEO Zuckerberg noted during his talk that the social media giant already helps some Chinese companies gain customers abroad. He cited computer maker Lenovo's ads on Facebook in India.
Zuckerberg married Chinese-American Priscilla Chan in 2012 and said he was learning Chinese.
His pronunciation was far from fluent, but he maintained the conversation for a half hour and the students responded with warm cheers for his effort and laughter at his humor.
BEIJING (AP) -- A gauge of the health of China's manufacturing industry inched higher in October but factory output was at a five-month low in a sign of slowing domestic and foreign demand.
HSBC said Thursday the preliminary version of an index based on a survey of factory purchasing managers rose to 50.4 from 50.2 in September. Figures above 50 on the 100-point scale indicate expansion.
HSBC's chief China economist says manufacturing likely stabilized in October but the "economy continues to show signs of insufficient effective demand."
Earlier this week, China reported economic growth in the third as growth based on trade and industrial investment runs out of steam.
KANSAS CITY, Mo. (AP) -- A World Series opener involving the San Francisco Giants set a record low TV rating for the second time in three seasons.
San Francisco's 7-1 win over Kansas City drew a 7.3 rating and 12.2 million viewers Tuesday night on Fox, according to fast national ratings by Nielsen Media Research.
That broke the previous low of a 7.6 rating and 12.2 million for the Giants' 8-3 victory over Detroit in 2012. San Francisco's 11.7 win over Texas in the 2010 opener got an 8.9 rating.
The rating for this year's opener began with a 6.9 from 8:05-8:30 p.m. EDT and peaked at 8.5 in the half hour starting at 9 p.m. With the Giants scoring three runs in the first inning and leading 5-0 by the fourth, the rating ended at 5.7 from 11:30-11:41 p.m.
Still, Fox said Wednesday it expects to win the prime-time night and have its best Tuesday night since February 2012.
Fox Deportes averaged 273,000 viewers, a record for Spanish-language World Series coverage.
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