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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 October 21, 2014 07:27 GMT
ECONOMY-THE DAY AHEAD
WASHINGTON (AP) -- There's only one major economic report due today, but half a dozen U.S. companies are reporting quarterly financial results.
The National Association of Realtors releases its September report on existing home sales this morning.
Coca-Cola, McDonald's, Reynolds American and Verizon release their earnings before the market opens.
Discover Financial Services and Yahoo release their numbers after the market closes.
SAN FRANCISCO (AP) -- Apple says it sold 39.3 million iPhones in the last quarter, or 16 percent more than a year ago, which is a record for the quarter. That's partly due to excitement over new iPhone 6 and 6 Plus models that Apple began selling last month.
The surge in iPhone sales helped the company beat Wall Street's expectations for the three months that ended Sept. 27. Overall, the company's profit rose more than 12 percent from a year ago, to $8.5 billion. Total sales also rose more than 12 percent, to $42.1 billion.
While iPhone sales were up, Apple also sold 13 percent fewer iPad tablets than it did a year ago. That follows an industry-wide decline in tablet sales. But the company reported lower iPad sales than analysts had expected.
DALLAS (AP) -- U.S. airlines are raising base fares on many domestic flights even though they are getting a windfall from lower fuel prices.
Delta Air Lines raised fares on many U.S. routes by $4 per round last Thursday. FareCompare.com CEO Rick Seaney and J.P. Morgan analyst Jamie Baker say other big airlines have matched them. Seaney says he's seen a few $6 and $10 increases, but mostly $4.
Delta has not responded for comment. United Airlines has confirmed matching the $4 increase. Seaney says American and Southwest also have raised prices.
ATLANTA (AP) -- UPS says it is raising rates for a number of its shipping services by an average of 4.9 percent for 2015.
The Atlanta-based company says it is increasing rates for its ground, air, international, UPS Freight, and UPS air freight rates within and between the U.S., Canada and Puerto Rico. The increase goes into effect on Dec. 29.
UPS had previously announced some size-related pricing changes that will also take effect at the end of December.
BEIJING (AP) -- China's economic growth waned to a five-year low of 7.3 percent last quarter, raising concerns of a spillover effect on the global economy but falling roughly in line with Chinese leaders' plans for a controlled slowdown.
The third quarter figures, released Tuesday, put China on course for annual growth somewhat lower than the 7.5 percent targeted by leaders, though they have indicated there is wiggle-room in their plan. The world's No. 2 economy grew 7.5 percent from a year earlier in the previous quarter and 7.4 percent in the first quarter.
Communist leaders are trying to steer China toward growth based on domestic consumption instead of over-reliance on trade and investment. But the slowdown comes with the risk of politically dangerous job losses and policymakers bolstered growth in the second quarter with mini-stimulus measures.
Employment, however, remained strong through the third quarter.
TOKYO (AP) -- U.S. Commerce Secretary Penny Pritzker has urged Japan to be bolder in opening its markets to help reach a deal on a pan-Pacific trade agreement.
Pritzker, who is leading the Commerce Department's first trade mission to Japan in two decades, said U.S. and Japanese negotiators were closing the gap on trade in farm goods and vehicles but that there were still "tough issues" to work on.
She said the 12-nation trade pact, called the Trans-Pacific Partnership, could yield tens of billions of dollars a year in economic gains and increased exports for each side.
Executives from 20 U.S. companies, many of them leaders in medical and energy technologies, have joined the trade mission to Japan and South Korea. It is Pritzker's first visit to Asia as commerce secretary.
WASHINGTON (AP) -- A federal regulator says government-controlled mortgage giants Fannie Mae and Freddie Mac have reached an agreement with major banks that could expand lending.
The head of the Federal Housing Finance Agency, which oversees Fannie and Freddie, announced the deal Monday at a conference of the Mortgage Bankers Association in Las Vegas. FHFA Director Mel Watt says the deal clarifies conditions in which banks could be required to buy back mortgages they sell to Fannie and Freddie for misrepresenting the loans' risks.
Watt says the agreement in principle will help make more mortgage credit available without harming Fannie and Freddie's finances.
He adds that it's currently hard for banks to know whether they'll have to buy back loans. That can make banks skittish about lending to borrowers with less pristine credit.
DETROIT WATER SHUTOFFS
DETROIT (AP) -- United Nations human rights experts have called on Detroit officials to restore water to those unable to pay, including those with disabilities or chronic illnesses.
Two experts visiting Detroit to observe the effect of water service shutoffs say they affect the poorest and most vulnerable. They say it discriminates against Detroit's majority black population.
Leilani Farha and Catarina de Albuquerque say water should be affordable, not free.
The city says about 27,000 shutoffs were made between Jan. 1 and Sept. 30.
Most shutoffs were halted for several weeks during the summer to give customers a chance to enter payment plans.
Groups opposing the shutoffs appealed to the U.N. for support.
NEW YORK (AP) -- America is saying no to cappuccino flavored potato chips, but yes to "Wasabi Ginger." "Wasabi Ginger" has won this year's Frito-Lay contest that gives people a chance to create a new flavor.
Bags of the four finalist flavors hit store shelves in late July, and people have been going on Facebook and Twitter to vote for their favorites.
Some taste-testers described cappuccino flavored chips as "NASTY" and "gross." The other two finalists were "Mango Salsa" and "Cheddar Bacon Mac & Cheese."
Registered nurse Meneko Spigner McBeth of Deptford, New Jersey, came up with the wasabi ginger flavor, and she'll be awarded $1 million or a portion of a year in sales, whichever figure is greater.
The "Do Us A Flavor" promotion was held in other countries too, including Saudi Arabia, which voted for "Pizza" flavor and Serbia, which made "Pickled Cucumber" Number 1.
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