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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 August 27, 2014 07:28 GMT
LOS ANGELES (AP) -- West Coast dockworkers and their employers say they have reached a tentative agreement on the difficult issue of health care, a major hurdle in contract negotiations at the ports that are vital to U.S. trade.
In a joint statement Tuesday announcing the tentative deal, the International Longshore and Warehouse Union and an association representing shipping lines said it depended on resolving other issues.
It also emphasized the union's demand that benefits be maintained at current levels.
Past labor disputes on the waterfront have cost the economy billions of dollars.
The current contract negotiations have focused on health care benefits since before the contract expired on July 1.
While workers have continued to move cargo, concern over the union's ability to shut the docks has rippled through the U.S. supply chain.
WASHINGTON (AP) -- Home prices across the country increased at a slower pace in June -- a cool-down that could last for several more months.
The Standard & Poor's/Case-Shiller 20-city home price index rose 8.1 percent in June from 12 months earlier, according to a report released Tuesday. That's down from 9.4 percent rise a month earlier and the smallest annual gain since December 2012.
Yearly price growth weakened in all 20 cities surveyed. Home values in Cleveland nudged up just 0.8 percent. Las Vegas led with a 15.2 percent gain. But prices in Las Vegas, Phoenix, Miami and Tampa, Florida, are still at least 33 percent below their housing bubble peaks of almost a decade ago.
The deceleration should help ease some of the price pressures on would-be buyers. After slumping at the start of 2014, existing-home sales have picked up as price gains have slowed. But buying remains 4.3 percent below the July 2013 level, according to the National Realtors Association.
DETROIT (AP) -- General Motors and government officials are expected later today to jointly announce new vehicles and jobs at a large GM factory complex in Spring Hill, Tennessee.
An announcement is scheduled for this morning at the plant, which is likely to get new Cadillac and GMC crossover SUVs in addition to its current product, the Chevrolet Equinox.
Neither GM nor Gov. Bill Haslam's office would comment ahead of the announcement. But the state said in a July 11 news release that a nearby company was expanding to make parts for new GMC and Cadillac vehicles at Spring Hill.
ABC Group plans to invest $25.5 million in its Gallatin, Tennessee, plant, adding 180,000 square feet and creating 230 jobs. The expansion will increase capacity to build consoles, interior trim and floors for new GMC and Cadillac vehicles to be made at Spring Hill, said the news release from the state Department of Economic and Community Development.
ATLANTIC CITY, N.J. (AP) -- Atlantic City is planning to offer additional job training as three casinos prepare to shut down over the next few weeks, putting thousands of workers on the street.
During a conference call with national media on Tuesday to address the upcoming shutdowns this weekend of the Showboat and Revel, Mayor Don Guardian said an effort to provide employment training and identify opportunities for unemployed workers will begin by October. The effort will be funded by a $400,000 grant from the Casino Reinvestment Development Authority and is designed to help 1,200 workers a year.
Guardian says, quote, "Our hearts go out to our neighbors and friends."
Trump Plaza will close on Sept. 16. Nearly 8,000 workers will lose their jobs when the three casinos shut down.
WASHINGTON (AP) -- Economists appear to be of two minds about the Federal Reserve.
They agree with the Fed that the job market still isn't healthy. Yet the latest Associated Press survey of economists finds that most fear the Fed will wait too long to raise interest rates and thereby risk stoking inflation or creating asset bubbles.
The duality of their views underscores the perils of the Fed's policymaking. Most economists accept that there's still "significant" slack in the job market. By that they mean that millions of people -- the unemployed as well as part-time workers and people who've stopped looking for work and aren't counted as unemployed -- would likely take jobs or work more hours if they could.
Still, they're concerned that Janet Yellen's Fed won't raise rates soon enough.
The AP surveyed three dozen private, corporate and academic economists from Aug. 13 to19.
NEW YORK (AP) -- The director of market intelligence at an investor relations firm has been arrested on insider trading charges and accused of using drafts of press releases to illegally earn nearly a million dollars.
Prosecutors on Tuesday announced 13 securities fraud charges. They said 51-year-old Michael Lucarelli was a director at Manhattan-based Lippert/Heilshorn & Associates Inc. when he made the illegal trades over the last year.
Lucarelli, wearing a tank top, slacks and sandals, was released on $500,000 bail after an initial appearance in federal court in Manhattan.
His attorney, Oscar Michelen, said in court that his client pleads not guilty. Outside court, Michelen said he would not comment on the charges until he can investigate them and speak with Lucarelli.
WASHINGTON (AP) -- The Obama administration has picked a Connecticut official to run HealthCare.gov ahead of a second open enrollment season looming as a test of competence for the feds.
Kevin Counihan (KOO-ni-han) leads Access Health CT, a health insurance marketplace seen as a national model.
As CEO of the federal exchange, Counihan's challenge will be far bigger. Connecticut enrolled about 80,000 people, while more than 5 million signed up in the 36 states served by the federal marketplace.
Insurance exchanges offer subsidized private coverage to people who don't have workplace health plans.
The role of federal CEO is new, created by Health and Human Services Secretary Sylvia Mathews Burwell to avoid a repeat of last year's technical meltdown. Burwell also named Lori Lodes of the Center for American Progress as communications director.
FORT WORTH, Texas (AP) -- American Airlines and US Airways are pulling flight listings from Orbitz-run websites in a long-running dispute over fees that the travel company charges to list and sell the flights.
Shares of Orbitz Worldwide Inc. fell nearly 5 percent on Tuesday.
American said that it had already dropped its fares from Orbitz and that US Airways listings would be pulled on Monday.
Corporate customers of the airlines will still be able to book travel through Orbitz, but individuals will have to go to the airlines' websites or other travel agents, including online rivals of Orbitz such as Expedia Inc.
American's withdrawal extends to Orbitz's other websites, such as CheapTickets and European-based ebookers.com. However, those sites were still selling seats on American flights that were listed by American's so-called code-sharing partners, including British Airways and Japan Airlines.
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