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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 December 19, 2014 08:36 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- The Labor Department will report on November's state unemployment rates this morning.
In October, unemployment rates fell in 34 U.S. states, a sign that steady hiring this year has been broadly dispersed throughout most of the country.
WASHINGTON (AP) -- Major insurer MetLife Inc. says U.S. regulators have labeled it as a potential threat to the financial system, a designation that brings stricter government oversight.
MetLife said Thursday that the Financial Stability Oversight Council has designated the company as "systemically important." As a result, MetLife must increase its cushion of capital against losses, limit its use of borrowed money and submit to inspections by examiners. MetLife will come under the supervision of the Federal Reserve. Its primary regulator now is New York state.
In a statement, New York-based MetLife said it is "disappointed" in the decision and has given the regulators evidence showing it is not systemically important.
MetLife was the third nonbank financial firm to be given the label by the council, a group of top regulators.
ALLY FINANCIAL-GOVERNMENT EXIT
WASHINGTON (AP) -- The government is selling the last of its shares in Ally Financial Inc., the former financing arm of General Motors that was bailed out during the financial crisis.
Detroit-based Ally says the Treasury Department is selling its remaining 54.9 million shares. That amounts to about an 11 percent stake in the company. At the close of trading Thursday, that would be worth about $1.25 billion.
Ally, formerly called GMAC Inc., received a $17.2 billion bailout that began in 2008. It's now a standalone auto financing company and bank.
Ally says that the government has received $18.3 billion from its investment in the company. Ally went public in April and Treasury sold a chunk of its stake then.
PORTLAND, Ore. (AP) -- Uber says it's suspending operations in Portland, Oregon, for three months to work out its differences with city officials, less than two weeks after the ride-hailing app's launch was greeted with a lawsuit.
Uber general manager Brooke Steger wrote in a blog post Thursday that Portland is working to update its regulations for private for-hire transportation that would allow Uber to operate.
Mayor Charlie Hales said in a statement that a task force will make recommendations by mid-April on permits, pricing systems, insurance, and safety inspections, among other issues.
The city sued Uber three days after its Dec. 5 launch, asking a judge to order the San Francisco-based company to cease operations. The city said Thursday that it's no longer seeking a restraining order.
Uber will continue operating in the Portland suburbs.
LOS ANGELES (AP) -- West Coast dockworkers and their employers don't appear to be close to agreeing on a new contract, nearly six months after their old deal expired.
Longshoremen at 29 ports from San Diego to Seattle that handle billions of dollars of trade with Asia have continued to work without a contract.
The two sides are meeting in San Francisco.
The Pacific Maritime Association represents oceangoing shipping lines and the operators of cargo terminals at the ports that employ longshoremen. A spokesman for the association says the two sides "remain far apart on several issues."
A spokesman for the dockworkers' union says its negotiators are eagerly awaiting a reply from the association on the union's latest proposal.
ENGLEWOOD CLIFFS, N.J. (AP) -- Hellman's mayonnaise maker Unilever says that it has withdrawn its lawsuit against the maker of "Just Mayo."
Unilever had filed suit against Hampton Creek earlier this year claiming false advertising for Just Mayo, an eggless product.
Unilever argued that "Just Mayo" has no eggs and therefore doesn't meet the definition of mayonnaise. Unilever had said that the word mayo implies that the product is mayonnaise, and that Just Mayo was stealing market share from Hellman's.
Unilever said Thursday that it decided to withdraw the lawsuit so that Hampton Creek can address its label directly with industry groups and regulatory authorities.
Hampton Creek says it marketed its product as "mayo" to meet labeling regulations.
BOSTON (AP) -- A 22-year-old woman who fell two stories down an elevator shaft at Fenway Park and was seriously injured is suing the owner of the Boston Red Sox and an elevator company.
Elisabeth Scotland of Brigantine, New Jersey, sued Wednesday in Superior Court in Boston against Fenway Sports Group and Otis Elevator Co. of Farmington, Connecticut. The suit seeks an unspecified amount in damages.
The suit says Scotland fell when a closed elevator door opened when she brushed up against it, and she suffered a traumatic brain injury, spinal injuries, facial fractures and dental damage.
A Red Sox spokesperson declined to comment on the accident, but said all Fenway Park elevators are safe and the team wishes Scotland well.
Messages were left Thursday for an Otis Elevator spokeswoman.
CHICAGO (AP) -- China is promising to streamline a regulatory process that has held up imports of pharmaceuticals and medical devices from the United States. The country also pledges to enforce its anti-monopoly laws equally among Chinese and foreign companies.
The agreements were announced Thursday at an annual trade meeting in Chicago.
Assistant Minister of Commerce Zhang Xiangchen told reporters that China would work to speed up the review and approval of U.S. products in the pharmaceutical and medical industries and address the current backlog within two to three years.
Zhang said China would also reduce what he called "needless clinical trials."
The U.S. delegation was led by Commerce Secretary Penny Pritzker and U.S. Trade Representative Michael Froman.
Pritzker said China's promises on anti-trust laws were especially "significant."
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