KNOXVILLE, Tenn., Aug. 3, 2018 /PRNewswire/ -- The Tennessee Valley Authority today reported $8.0 billion in operating revenues through the nine-month period ended June 30, 2018, a five percent increase from the same period a year ago. The higher revenues were driven by a six percent increase in electricity sales, primarily due to weather conditions.
Total operating expenses through the third quarter of fiscal year 2018 decreased four percent as compared to the same period in fiscal year 2017 due to a continued focus on reducing operating and maintenance expense and fuel expense.
"The strong performance of TVA's nuclear and hydroelectric assets is playing a significant role in keeping power rates low for customers in 2018," said Bill Johnson, TVA president and chief executive officer. "TVA has one of the cleanest, most diverse and most reliable power fleets in the entire nation - and we are seeing the benefits of that on the bottom line, with significantly lower operating expenses."
Operating and maintenance expense for the first nine months of the fiscal year was down $85 million, or four percent lower compared to the same period last year, mostly driven by a decrease in planned outage days and an increase in workforce efficiencies.
Fuel expense was down $68 million, or four percent below the same period last year, due to the impact of lower effective fuel rates caused by lower market prices for natural gas and more hydroelectric and gas generation.
"The major changes in TVA's operations and power system we've implemented as part of our long-range financial plan are showing the positive results we expected in 2018," said John Thomas, TVA chief financial officer.
"We have significantly improved performance, reduced costs, and made progress in reducing debt. These benefits will only accelerate as we continue to follow our plan."
Additional highlights of TVA's third quarter fiscal year 2018 results include:
- Net income for the nine months ended June 30, 2018, was $1.2 billion, up 123 percent from net income of $546 million for the same period of fiscal year 2017.
- TVA's service territory experienced overall warmer-than-normal weather during the third quarter of 2018, as cooling degree days measured 36 percent above normal during the period.
- TVA's economic development efforts continue to attract and encourage the expansion of business in the Tennessee Valley, with over $10.2 billion in investments and approximately 54,000 jobs created or retained through the third quarter of 2018.
- The TVA Board approved a rate structure change to its wholesale electric power rates at its May 10, 2018, meeting to better align wholesale rates with the underlying cost to serve customers. TVA is continuing to work with local power companies to implement these changes, which will become effective on Oct. 1, 2018.
- The Allen Combined Cycle Plant – among the most efficient gas generating plants in the U.S. – officially entered commercial operation on April 30, 2018.
- The first of three extended power uprates at the Browns Ferry Nuclear Plant was physically completed in April and achieved its full enhanced power output in July. Combined with TVA's current nuclear and renewable assets, more than 50 percent of the Valley's power generated through Q3 was carbon-free.
- TVA continues to update its Integrated Resource Plan to determine how it can continue to provide low-cost, reliable energy, support environmental stewardship, and spur economic development in the Tennessee Valley over the next 20 years.
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Selected Financial Data – Nine Months Ended June 30
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Sales, Revenues & Expenses
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2018
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2017
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|
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Sales (millions of kWh)
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115,968
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109,698
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|
|
|
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Operating Revenues ($ millions)
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$ 8,048
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$ 7,664
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Fuel & Purchased Power Expense
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2,204
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2,300
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Operating & Maintenance Expense
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2,074
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2,159
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Net Interest Expense
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942
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1,017
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Net Income
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$ 1,220
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$ 546
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Net Cash Provided by / (Used in) ($ millions)
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|
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Operating Activities
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$ 2,524
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$ 1,979
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Investing Activities
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(1,546)
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(1,898)
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Financing Activities
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(979)
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(80)
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Net Change in Cash and Cash Equivalents
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(1)
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1
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TVA executive management will host a conference call to discuss third quarter fiscal year 2018 results at 9:30 a.m. EDT, on Friday, Aug. 3, 2018. The conference call can be accessed from TVA's website via webcast, at http://www.tva.com, on the Investor Relations homepage. For quicker access to the live conference call, please pre-register through 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 (844) 308-6432 in the United States, or (412) 717-9611 outside the United States.
A replay will be available one hour after the end of the conference call until 9:30 a.m. EDT, Sept. 3, 2018, by calling toll free (877) 344-7529 in the United States or (412) 317-0088 outside the United States and using the conference number 10120386. A webcast replay and transcript will also be available for one year on TVA's website at http://www.tva.com/investors.
TVA's quarterly report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended June 30, 2018. TVA's quarterly report and other SEC reports are available without charge on TVA's website at http://www.tva.com/investors, on the SEC's website at http://www.sec.gov or by calling TVA toll free at (888) 882-4975.
This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to TVA's most recent annual report on Form 10-K and quarterly report on Form 10-Q for a discussion of factors that could cause actual results to differ from those in the forward-looking statements.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving over 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation.
Media Contact: Jim Hopson, Knoxville, 865-632-8860
TVA Public Relations, Knoxville, 865-632-6000
www.tva.com/news
Follow TVA news on Facebook and Twitter
Investor Relations: Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
http://www.tva.com/investors
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SOURCE Tennessee Valley Authority
