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 February 27, 2015 08:28 GMT
THE DAY AHEAD
WASHINGTON (AP) -- Reports on the economy, pending home sales and foreign holdings of securities are due out today. The Commerce Department releases fourth-quarter gross domestic product at 8:30 a.m. The pending home sales index come out from the National Association of Realtors around 10 a.m. And the Treasury Department is to release its preliminary report on the June 2014 annual survey of foreign holdings of U.S. securities.
TOKYO (AP) -- Japan's core inflation rate edged lower in January as lower crude oil prices reduced energy costs, while weak retail sales and manufacturing underscored the fragility of its economic recovery.
Core inflation, excluding volatile food prices, was 2.2 percent, compared with 2.5 percent the month before and the lowest in 10 months. Excluding energy costs and food, the consumer price index was at 2.1 percent, level with the previous two months.
Unemployment rose to 3.6 percent from 3.4 percent the month before.
Prime Minister Shinzo Abe has sought to spur growth by vanquishing the deflation that discouraged investment and spending over the past two decades. But the economy fell back into recession after a sales tax hike on April 1, 2014. Growth recovered to 2.2 percent in the October-December quarter.
BERLIN (AP) -- Germany's Parliament is to vote today (FRIDAY) on the deal eurozone finance ministers hammered out to extend Greece's bailout for four months. The proposal should get wide, if unenthusiastic, support from lawmakers after a large majority in Chancellor Angela Merkel's (AHN'-geh-lah MEHR'-kuhlz) conservative bloc signaled their backing on Thursday.
In a test vote among the 311 conservative lawmakers, 22 opposed the bailout extension and five abstained. A minority of conservative lawmakers has consistently voted against bailouts over the five years of Europe's debt crisis.
SEOUL, South Korea (AP) -- The South Korean nuclear regulator has renewed the operating license of the country's second-oldest nuclear power plant until 2022, overriding the objections of residents and anti-nuclear groups.
The Nuclear Safety and Security Commission said that seven of nine commissioners voted to restart the Wolsong No. 1 reactor located 170 miles south of Seoul.
It was the first such decision in South Korea since safety concerns about nuclear energy and older plants were raised following the meltdowns at Japan's Fukushima Daiichi reactors in 2011. South Korea's 23 nuclear power plants, mostly located in the country's southeastern coast, provide about one-third of its electricity.
The nuclear regulator said in a statement that it reviewed the plant's ability to withstand natural disasters and its compliance with other legal standards. Two commissioners who asked for more time to review the reactor's safety abstained from the vote at the end of the 14-hour meeting that began Thursday morning and ended past midnight Friday.
South Koreans were sharply divided over the fate of the Wolsong No. 1 plant that had operated for 30 years until its license expired in 2012.
LITTLE ROCK, Ark. (AP) -- The Arkansas Supreme Court says a lawsuit against tobacco giant Philip Morris USA can proceed under class-action status.
The lawsuit seeks refunds on every pack of Marlboro Lights sold in Arkansas from 1971 to 2010. The plaintiffs claim Philip Morris, which is part of the Altria Group, deceived smokers about health risks.
The justices' 6-1 decision was released Thursday.
The company wants each case considered separately, saying some smokers bought the cigarettes for their taste, packaging or brand reputation -- not for claims they had lower tar and nicotine.
Philip Morris also said courts elsewhere have rejected class-action status for similar claims.
The size of the class isn't known, but Pulaski County Circuit Judge Tim Fox warned in 2013 that it could be in the millions.
WASHINGTON (AP) -- Investigators say they have recovered 32,000 emails related to a former IRS official at the heart of the agency's tea party scandal.
But they don't know if any of them are new.
The emails were to and from Lois Lerner, who used to head the IRS division that processes applications for tax-exempt status. Last June, the IRS told Congress it had lost an unknown number of Lerner's emails when her computer hard drive crashed in 2011.
IRS officials said the emails could not be recovered. But at a congressional hearing Thursday, IRS Deputy Inspector General Timothy Camus said investigators recovered thousands from old computer tapes.
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