KNOXVILLE, Tenn., Aug. 4,
2015 /PRNewswire-USNewswire/ -- The Tennessee Valley Authority
reported $609 million of net income
for the first nine months of fiscal year 2015 in its third quarter
filing ending June 30, 2015. This
represented a $462 million increase
compared with the same period last year, on electricity sales that
were about one percent lower for the same period.
Total operating expenses for fiscal year to date were
$593 million lower than the same
period last year – a nearly 9% decrease – primarily due to savings
in fuel and purchased power expense and lower non-fuel operating
and maintenance costs.
"Solid financial performance reflects our employees' dedicated
efforts to lower costs and improve efficiency," said Bill Johnson, President and CEO. "Our people and
power system are aligned to ensure TVA continues to deliver
low-cost, reliable power to the Tennessee Valley well into the
future."
TVA remains on track to achieve its three-year goal of reducing
annual non-fuel operating and maintenance expense by a sustainable
$500 million by the end of this
fiscal year. "The continuous improvement initiatives we have
undertaken have contributed to lower operating and maintenance
costs of $397 million year to date
compared to the same period last year," Johnson said.
Other year-to-date highlights compared to the same period last
year include:
- Fuel and purchased power expense down $267 million, primarily due to lower overall coal
and natural gas fuel rates and improved fleet performance.
- Depreciation and amortization expense 6 percent higher, mainly
because of the accelerated closure of some coal-fired units
(including the soon-to-be closed Widows Creek Fossil Plant Unit
7).
- More than $2 billion invested in
construction expenditures, an increase of $370 million. These investments include the Watts
Bar Nuclear Plant Unit 2 project, environmental controls at the
Gallatin Fossil Plant site and new combined cycle natural gas-fired
power facilities.
According to Chief Financial Officer, John Thomas, TVA's power system is one of the
most diverse in the country. "Our diverse portfolio has helped us
deliver superior financial performance in recent periods despite
the extreme weather," Thomas said. "We are making significant
investments to balance our asset portfolio further in order to keep
rates affordable and stable for our customers under a variety of
conditions."
During the quarter, TVA completed the purchase of the Ackerman
Combined Cycle Plant located in Mississippi. The 700-megawatt facility is the
sixth combined cycle gas-fired facility TVA has built or purchased
since 2007.
In addition, TVA announced it will be working with global
technology leader Google to repurpose the Widows Creek plant site
for Google's newest data center.
TVA executive management will host a third quarter fiscal year
2015 financial conference call at 9:30 a.m.
EDT on Tuesday, Aug. 4, 2015.
The conference call can be accessed from TVA's website via webcast,
at http://www.tva.com, on the Investor Relations home page. 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
(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 10 p.m. EDT, August 4, 2016, by calling toll free
(877) 344-7529 in the United
States or (412) 317-0088 outside the United States and using the conference
number 10068456. 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 and nine months
ended June 30, 2015, 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.
(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
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 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:
Gail Rymer, Knoxville,
865-632-2911
TVA Public Relations,
Knoxville,
865-632-6000
www.tva.com/news
Follow
TVA news on Facebook and Twitter
Investor Relations:
Josh Carlon, Knoxville, 865-632-4133 or
888-882-4975
Clifton
Lowry, Knoxville,
865-632-6638 or
888-882-4975
www.tva.com/finance
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SOURCE Tennessee Valley Authority