TVA says its finances are in good shape following a srong first quarter than built on its 2016 numbers. (Photo By: TVA)
TVA officials said Jan. 31 that a return to normal weather in the quarter that ended Dec. 31 pushed sales up by 2.3 billion kilowatt-hours, or 7 percent, compared with the same period a year ago.
"Unlike last year, when we had an abundance of rainfall, the extended drought conditions that carried over from summer limited power production from TVA's dams. This resulted in increased use of higher cost generation sources and higher fuel prices," TVA President and CEO Bill Johnson said.
"So, while the energy costs of producing electricity were not as favorable, the higher revenues, along with the efficiencies we've been able to build into the business, helped us improve the bottom line," he said.
For the quarter, TVA reported net income of $102 million, up by $139 million from the same quarter a year ago. Revenues increased by $266 million and helped put net income in the black, compared with a loss for the first quarter of fiscal 2016.
Operating expenses were up by $65 million, or about 3 percent, primarily because of higher fuel costs. But the nation's largest public power provider has cut operations and maintenance expenses in recent years to deal with inflation in other areas.
"Even with the increased power demand, TVA's non-fuel operating costs were lower, helping us keep power rates low," said Chief Financial Officer John Thomas.
TVA supplies power to 155 electric cooperatives and municipal systems in the Southeast and mid-Atlantic.
TVA's quarterly report is available on its website or on the Securities and Exchange Commission's website.