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TVA Reports Net Income of $54 Million in Second Quarter 2013
The Tennessee Valley Authority reported Friday net income of $54 million on operating revenues of $2.74 billion in the second quarter of 2013. This compares with a net loss of $94 million on operating revenues of $2.60 billion in the same period last year.
“We ended the second quarter 2013 essentially on plan,” President and CEO Bill Johnson said. “More normal weather had a favorable impact, as did employee efforts to reduce costs.
“We are focused on controllable factors that improve cost management and drive operational performance as we work to keep rates low. This is particularly important as we enter the summer months, when customer usage and sales typically are at the highest levels,” he said.
Sales to local power companies that distribute TVA electricity were 9 percent higher in the second quarter and 5 percent higher in the first six months of 2013, compared with the same periods last year. Higher off-system sales as a result of excess generation also contributed to higher sales. Offsetting these increases were lower sales to directly served industrial customers, TVA said in its quarterly filing to the U.S. Securities and Exchange Commission for the quarter ended March 31, 2013.
Total revenues increased 5 percent in the second quarter and 3 percent year to date, compared with the same periods last year. The increases were driven by higher fuel cost recovery due to higher fuel rates and an increase in electricity sales. Base revenue was $36 million higher in the second quarter due to an increase in electricity sales, but was down $49 million in the first six months of 2013 in part from a decrease in the effective base rate as distributors selected new wholesale rate structures.
Fuel expense was $148 million higher in the second quarter and $302 million higher in the first six months of 2013, compared with the same periods last year primarily due to more nuclear outages in 2013, which resulted in more generation from higher-cost sources, particularly natural gas and coal-fired generation.
“We were pleased to be able to hold our average power rates steady for customers, despite the increases in fuel and commodity costs,” Chief Financial Officer John Thomas said. “To further improve TVA’s power rates, we will continue developing a more balanced generation portfolio through effective asset management.”
Operating and maintenance expense increased by $13 million in the second quarter and was $52 million higher in the first half of this year compared with the same periods last year. During the first six months of 2013, TVA completed three nuclear refueling outages and a steam generator replacement project and began a fourth refueling outage, compared to one nuclear refueling outage in the same period last year.
For the six months ended March 31, 2013, TVA reported a net loss of $191 million on operating revenues of $5.32 billion, compared with a net loss of $267 million on operating revenues of $5.17 billion in the same period a year ago.
TVA executive management will host a second quarter fiscal year 2013 financial conference call at 9:30 a.m. EDT on Friday, May 3, 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. EDT, May 13, 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 10026404. 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 March 31, 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 July 23, 2014 17:22 GMT
WASHINGTON (AP) -- The International Monetary Fund has shaved its forecast for U.S. economic growth this year, mostly because of a sharp contraction in the first quarter.
But the global lending organization still expects that growth accelerated in the April-June quarter and will remain healthy for the rest of this year and next.
The IMF projects growth will be just 1.7 percent this year, down from a 2 percent estimate in June. That would make 2014 the weakest year since the recession ended in June 2009.
The IMF's outlook is more pessimistic than the Federal Reserve, which expects growth of at least 2.1 percent. But it matches most other economists.
The Fund also urged the U.S. government to take steps to boost growth, including encouraging more Americans to find jobs and lifting productivity.
RETAIL SALES-ANNUAL FORECAST
NEW YORK (AP) -- The nation's largest retail trade group is paring its annual sales forecast because of slower-than-expected growth during the first half of the year tied to winter storms and lingering economic woes.
The Washington-based National Retail Federation says Wednesday that it now expects retail sales will rise 3.6 percent this year to $3.2 trillion, instead of its original prediction of 4.1 percent released in early February.
The figures include sales in stores and online but exclude automotive sales and sales at gas stations and restaurants.
Retailers now are heading into the back-to-school shopping season, the second-largest shopping period behind the winter holidays.
SEC-MONEY MARKET FUNDS
WASHINGTON (AP) -- Regulators have voted narrowly to end a longtime staple of the investment industry -- the fixed $1 share price for money-market mutual funds -- at least for some money funds used by big investors.
The idea is to minimize the risk of a mass withdrawal from the funds during a financial panic.
The Securities and Exchange Commission also is letting money funds block withdrawals when their assets fall below certain levels or impose fees for withdrawals.
The new rules were adopted Wednesday on a 3-2 vote. They were opposed by one Democratic and one Republican commissioner.
WASHINGTON (AP) -- The Senate has advanced an election-year bill limiting tax breaks for U.S. companies that move operations overseas. But big hurdles remain.
The Senate voted 93-7 Wednesday to begin debating the bill, which would prevent companies from deducting expenses related to moving operations to a foreign country. The bill would offer tax credits to companies that move operations to the U.S. from overseas.
Senate Democratic leaders say the bill would end senseless tax breaks for companies that ship jobs abroad. Republicans say the bill is an election-year ploy that has no chance of becoming law. They note that a similar bill failed two years ago.
WASHINGTON (AP) -- The Federal Aviation Administration says it will continue its ban on U.S. airline flights to Tel Aviv while assessing the danger of rocket attacks.
The agency said Wednesday it is working closely with the Israeli government to review new information they have provided and to determine whether safety concerns have been resolved.
FAA instituted the flight prohibition on Tuesday in response to a rocket strike that landed about a mile from the airport.
The directive applies only to U.S. operators, and has no authority over foreign airlines operating to or from the airport.
But European airlines are also avoiding Tel Aviv, after the European Aviation Safety Agency on Tuesday recommended doing so.
On Wednesday, Germany's two largest airlines, Lufthansa and Air Berlin, extended their cancellations through Thursday. Air France said it was suspending its flights "until further notice."
BRUSSELS (AP) -- The European Union's executive is proposing legislation to curb the energy use of households and firms by almost one third by 2030 to reduce greenhouse gas emissions and lower its dependence on gas imports, particularly those from Russia.
The Commission proposed Wednesday to increase energy efficiency by 30 percent, an upward revision of its earlier target of 20 percent by 2020.
Energy savings can be achieved by improving building insulation, upgrading heating systems or lowering the electricity need of new appliances like fridges.
The Commission says that for one additional percent in energy savings, EU gas imports are expected to fall 2.6 percent.
It estimates reaching the target will require investments of 89 billion euros ($132 billion) annually across the 28-nation bloc.
The proposal still requires approval from EU governments.
BRUSSELS (AP) -- The European Union is giving Lithuania the green light to adopt the euro currency starting next year.
Ministers from the 28-nation bloc on Wednesday cleared the final legal hurdle for Lithuania to become the 19th member of the currency zone encompassing some 330 million people. The country had been given preliminary approval in June.
Lithuanian Prime Minister Algirdas Butkevicius said adopting the euro will strengthen the Baltic nation's economy.
Alluding to the tensions with Russia over Ukraine, he added deeper integration with western Europe "means greater security as well."
Lithuania's Baltic neighbors, Estonia and Latvia, are already members of the euro. All three countries achieved independence from the Soviet Union in 1991.
The euro is just emerging from years of financial stress following debt problems in a number of countries.
LONDON (AP) -- Drug maker GlaxoSmithKline has cut its full-year earnings expectations as it says its second-quarter profits were hit by currency moves and a fall in sales of its respiratory drugs.
The company said Wednesday it expects 2014 earnings per share to be broadly similar to last year. It had previously forecast growth of between 4 and 8 percent.
GSK said second-quarter revenue fell 16 percent to 5.6 billion pounds ($9.5 billion) from 6.6 billion pounds in the same quarter in the previous year. Profit attributable to shareholders dropped from 1.05 billion pounds a year earlier to 654 million pounds.
The firm, which remains troubled by a high-profile bribery investigation in China, said sales there were down 20 percent.
WASHINGTON (AP) -- The Senate Veterans Affairs Committee has endorsed former Procter & Gamble CEO Robert McDonald to be the new secretary of the Department of Veterans Affairs.
The panel unanimously backed McDonald on Wednesday, one day after a nomination hearing in which he faced no opposition.
Senators said they are eager for McDonald to begin work at the beleaguered agency, which has been plagued by treatment delays and falsified records at VA hospitals and clinics nationwide.
McDonald has pledged to "transform" the VA and address a series of "systematic failures," including patient access to health care, transparency, accountability and integrity.
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