Tonight: Clear and cool with an overnight low in the mid 50s.
Wednesday: Sunny with an afternoon high in the upper 70s to lower 80s.
Beautiful ... More...
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
More Business News
Last Update on September 23, 2014 08:16 GMT
HONG KONG (AP) -- Growth in China's sprawling manufacturing industry unexpectedly ticked higher in September, easing concerns about the No. 2 economy's recovery.
HSBC's purchasing manager index edged up to 50.5 this month from 50.2 in August, based on a 100-point scale. Numbers below 50 indicate contraction.
Analysts had expected the reading to fall for a second month, dragged down by the slumping property market.
The modestly upbeat number comes after an official report earlier this month showed China's factory output slowed sharply in August, which sparked fears momentum was fading and prompted some analysts to lower their full-year economic growth forecasts.
China's economic growth edged up in the April-June quarter to 7.5 percent after policymakers rolled out a batch of relief measures aimed at areas including railways and public housing. But analysts say further increments in growth will be hard to achieve without more government spending.
LOS ANGELES (AP) -- Officials say the giant wholesaler that provides drinking water for half the California population has drained two-thirds of its stored supplies as the state contends with a punishing drought.
Without plentiful rain and snow in coming months, the Metropolitan Water District of Southern California could consider cutbacks to its regional distributors next year. If such limits are approved, that could lead to rationing or cuts for households in portions of Southern California.
At the current rate, billions of gallons in remaining agency reserves could be exhausted in about 18 months. The agency built up those reserves over time as a hedge against the state's periodic droughts.
But those supplies have tightened as the state has experienced a combination of sparse rainfall and unusually warm temperatures -- 2014 is on track to be the hottest year in California since record-keeping began over a century ago.
Gov. Jerry Brown, who declared a drought emergency earlier this year, is urging residents to voluntarily reduce water use.
AMSTERDAM (AP) -- Royal Philips NV says it will spin off its lighting division and the rest of its operations into two separate companies, continuing a radical reshaping of one of Europe's best-known corporations.
Tuesday's announcement follows the decision in June to spin off its lighting components arm, and it is no longer clear whether Philips is the world's largest lighting manufacturer, though it is a leader in cutting edge LED lighting technology
Chief Executive Frans van Houten said the company's consumer division -- which makes a range of household products such as coffee makers and shavers -- and its health care division will operate as a single "HealthTech" company. Both the lighting and HealthTech company will continue to use the Philips brand.WALL STREET-PROTEST
NEW YORK (AP) -- More than 100 people have been arrested in a sit-in protest in Manhattan's financial district in New York.
More than 1,000 activists blocked parts of Broadway Monday to protest what they see as the roles of corporate and economic institutions in the climate crisis.
The sit-in followed Sunday's march in which more than 100,000 people warned that climate change is destroying the Earth.
OVERSEAS TAX BREAKS
WASHINGTON (AP) -- The Obama administration is cracking down on American companies that are trying to reincorporate overseas to avoid paying U.S. taxes.
In a so-called "tax inversion," a U.S. business merges with or is acquired by a foreign company in a country with a lower tax rate.
The Treasury Department says it's putting forward regulations that will make inversions less lucrative by barring some of the techniques companies use to defer their taxes. It's also making it harder for companies to pursue an inversion by tightening the requirement that the company's former owners own less than 80 percent of the new company.
Treasury Secretary Jacob Lew says the steps will ensure that it's no longer financially beneficial for companies to use that tactic.
The new measures will take effect immediately.
DETROIT WATER SHUTOFFS
DETROIT (AP) -- Detroit's water department is defending its policy of cutting off service to people with unpaid bills. It says continuing to provide free service to those households could be "very devastating" to the department's budget.
An attorney for the water department told a judge Monday that "humanitarian concerns are very compelling," but that so is fairness.
After thousands of shutoffs earlier this year, there were protests and appeals -- including one to the United Nations.
The judge hearing the city's bankruptcy trial set aside that case Monday to hear evidence in the water controversy. A coalition representing low-income residents is asking the judge to suspend water shutoffs, and to restore service to people who have lost it.
The attorney for the water department said it would be violating state law, and breaking agreements with bondholders, if it's forced to supply water and ignore bills that are overdue.
An economist who testified on behalf of critics of the water shutoff policy said a consumer's income should be a factor in how the city regularly collects water bills.
The hearing will end today after testimony from water department officials and closing arguments.
CANANEA, Mexico (AP) -- Authorities in northern Mexico have issued a binational alert over contamination from a copper mine that spilled into a waterway that flows into Arizona.
Carlos Jesus Arias is director of the Sonora state civil protection agency. He says contamination from the Buenavista del Cobre mine in the city of Cananea has made it into the San Pedro River.
Officials haven't said how much leaked, or what was in the contaminants.
The mine is operated by Grupo Mexico. It issued a statement Sunday saying storm water overflow linked to the recent passage of Hurricane Odile (oh-DEEL') caused mine water to leach into some creeks and streams.
Civil protection officials are urging residents to avoid using the local water.
WASHINGTON (AP) -- The Securities and Exchange Commission is giving its biggest award yet, about $30 million, to a whistleblower who provided key information that led to an enforcement action in a fraud case.
The agency announced the award Monday. It was the SEC's 14th whistleblower award under a program adopted in 2011 and the fourth award to a whistleblower living in a foreign country. The nature of the enforcement action and the identity of the whistleblower weren't disclosed.
Under the program, tipsters who report corporate fraud or other misconduct are eligible if they give the SEC information that leads to an enforcement action resulting in more than $1 million in penalties. They can receive from 10 to 30 percent of the money the SEC recovers from a company or person.
The Good LifeCelebrating the events, adventures and activities that represent "The Good Life" in the NewsChannel 9 viewing area.
SideroadsTake a ride with Brian Smith to explore the unique people and places to be found along the Sideroads of the NewsChannel 9 viewing area.
Road TrippinCome Road Trippin' with us and see all the great sites in your area!
Closings and DelaysThese are the latest School and Business Closings reported to NewsChannel 9. If you see errors or need to add a school or business, call 423-757-7320.
This N ThatLearn about the latest in community affairs and great events with Brian Smith on This 'N That.
Educator of the WeekNominate now for Educator Of The Week!
Deaf & Hard of HearingInformation provided to NewsChannel 9 by members of the Deaf and Hard of Hearing Community.
Sponsored EventsCheck Back Often for NewsChannel9 Sponsored Events!