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.
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
Clifton Lowry, Knoxville, 865-632-6638 or 888-882-4975
SOURCE Tennessee Valley Authority