TVA To Discuss First Quarter Fiscal Year 2021 Financial Results
The Tennessee Valley Authority reported $2.3 billion in total operating revenues on 36.7 billion kilowatt-hours of electricity sales for the three months ended Dec. 31, 2020.
Sales of electricity to local power companies were not significantly impacted by the ongoing COVID-19 pandemic but were slightly lower compared to the same period of the prior year due to milder weather. Sales to directly served industries and others increased.
Total operating revenues decreased about 11% over the same period of the prior year, driven primarily by lower demand volume, lower effective base rates, and lower fuel cost recovery revenues.
TVA’s tax equivalents and interest expenses were lower in the first quarter of fiscal year 2021 than in the same period of the prior year, while operating and maintenance increased slightly. TVA’s fuel and purchased power expense was 10% lower year-over-year, primarily driven by lower natural gas prices, improved nuclear fleet performance and more hydroelectric generation.
“The public power model works and its strength, combined with the dedicated work of our employees and partners, continues to show in these results,” said Jeff Lyash, TVA president and chief executive officer. “Our customers are paying lower rates than a decade ago, which makes an even greater impact on the continued recovery of the regional economy.”
Operating and maintenance expense was $26 million higher, driven primarily by an increase in planned outage expense and labor escalation.
TVA’s depreciation and amortization expense was $206 million lower during the quarter versus the same period in the prior year, due to a $201 million decrease related to the 2019 decision to accelerate the retirements of Bull Run and Paradise.
Interest expense was $281 million for the first quarter of fiscal year 2021, which was a 2% decrease from the same period of the prior year, driven by lower average debt balances.Story continues
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