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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 April 23, 2014 17:17 GMT
NEW HOME SALES
WASHINGTON (AP) -- The number of Americans buying new homes plummeted in March to the slowest pace in seven months, a sign that real estate's spring buying season is off to a weak start.
The Commerce Department says sales of new homes declined 14.5 percent last month to a seasonally adjusted annual rate of 384,000. That was the second straight monthly decline and the lowest rate since July 2013.
Sales plunged in the Midwest, South and West in March. But they rebounded in the Northeast, where snowstorms in previous months curtailed purchases.
New-home sales have declined 13.3 percent over the past 12 months.
But median sales prices jumped 12.6 percent during the past month to $290,000. That's because new-home buyers in March bought more high-end properties compared to previous months.
COAL DUST RULE
WASHINGTON (AP) -- The Obama administration is cutting the amount of coal dust allowed in coal mines in an effort to help reduce black lung disease.
Top Labor Department officials are unveiling the long-awaited rule Wednesday at an event in Morgantown, W.Va.
Black lung is an irreversible and potentially deadly disease caused by exposure to coal dust. The government estimates that the disease has killed more than 76,000 miners since 1968.
The rule lowers the maximum levels of coal dust in mines. It also increases dust sampling in the mines, and requires coal operators to take immediate action when dust levels are high. The requirements will be phased in over two years.
The administration first proposed the rule back in 2010.
WASHINGTON (AP) -- The nation's tobacco companies and the Justice Department are including black media outlets in court-ordered advertisements that say the cigarette makers lied about the dangers of smoking.
A federal judge in 2006 ordered the industry to pay for the corrective statements in various advertisements in newspapers, as well as on TV, websites and cigarette pack inserts.
The brief filed in U.S. District Court in Washington, D.C., on Wednesday revises a January agreement outlining the details of those ads to address concerns raised by the judge and black media groups.
The groups had argued the ads should be disseminated through their outlets because the black community has been disproportionally targeted by tobacco companies.
The new agreement proposes more newspapers and TV networks that have greater reach to the black community.
NEW YORK (AP) -- A federal appeals court has revived a lawsuit by the European Union alleging that U.S. tobacco company R.J. Reynolds sponsored cigarette smuggling in Europe.
The 2nd U.S. Circuit Court of Appeals in New York City ruled Wednesday that the European Union and 26 of its member states were within their rights to sue in U.S. courts.
The lawsuit alleges that RJR directed, managed and controlled a global money-laundering scheme with organized crime groups. It said the company laundered money through New York-based financial institutions.
The lawsuit had been tossed out by a Brooklyn judge. But the appeals court says a racketeering law can apply to a foreign enterprise or conduct outside the U.S.
Lawyers did not immediately return messages for comment.
Reynolds American Inc. is based in Winston-Salem, N.C.
BRUSSELS (AP) -- The European Union says Greece has reached a major financial milestone that was required if it were to be granted more debt relief.
European Commission spokesman Simon O'Connor said Wednesday that Greece's government revenues last year exceeded expenditure when interest payment and other items were excluded.
He says Greece's so-called primary budget surplus of 1.5 billion euros ($2.1 billion), or 0.8 percent of its annual gross domestic product, is "well ahead of the 2013 target."
Greece's international creditors have said a primary surplus will entitle Greece to further debt relief. Discussions are set to be concluded in the second half of the year.
Most analysts expect the eurozone to lower the interest rates Greece pays on its loans or be granted another extension on when they have to be repaid.
FRANKFURT, Germany (AP) -- Business activity in Europe has risen to its highest level in three years as a once-shaky economic recovery gains speed.
The Markit survey of purchasing managers, a closely watched gauge of business activity, climbed to 54.0 in April from 53.1 in March. That's the highest reading since May, 2011. Anything over 50 indicates expansion.
Analysts said Wednesday's figures, which cover both services and manufacturing companies, showed that the moderate recovery was showing increasing strength in the 18 countries that share the euro.
Alarmingly low inflation of only 0.5 percent and high unemployment have raised fears the rebound was too weak to sustain itself and would require more stimulus from the European Central Bank.
The eurozone grew by a quarterly rate of 0.2 percent in the fourth quarter of last year.
TORONTO (AP) -- Canada says it will require a three-year phase out of the type of tank cars involved in the Quebec train derailment last summer that killed 47.
Last July, a runaway oil train derailed and exploded in Lac-Megantic, Quebec. Forty-seven people were incinerated and 30 buildings destroyed.
A government official confirmed the phase out of the DOT-111 tanker cars used to carry oil and other flammable liquids. The official spoke on condition of anonymity because they were not authorized to speak publicly.
Canada's Transport Minister will announce new rules later Wednesday in response to recommendations by Canada's Transportation Safety Board in the aftermath of the tragedy.
The DOT-111 tank car is considered the workhorse of the North American fleet and makes up about 70 percent of all tankers on the rails.
NEW YORK (AP) -- Just over a month after buying Beechcraft for $1.4 billion, Textron announced 750 job cuts at that company and at its Cessna division.
The layoffs will occur over the next 60 days. Both aircraft makers are based in Wichita, Kan.
Management and non-management jobs will be eliminated, the company said.
Textron Inc., based in Providence, R.I., expects about $4.6 billion in annual revenue from the combination of Cessna and Beechcraft.
POSTAL WORKER PROTEST
WASHINGTON (AP) -- Postal workers plan protests in 27 states Thursday against the opening of postal counters in Staples stores that are staffed with Staples employees.
Last year, Staples office supply stores began providing postal services under a pilot program that now includes some 80 stores. The American Postal Workers Union objects because the program replaces well-paid union workers with low-wage nonunion workers.
The union says that could lead to layoffs and the closing of post offices. In a statement, the union said postal workers "have taken an oath to protect the sanctity of the mail," unlike poorly trained retail workers. The union wants the counters staffed by uniformed postal workers.
The financially struggling U.S. Postal Service has been working to form partnerships with private companies as it tries to cut costs and boost revenues.
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