Knoxville, Tenn. ― The Tennessee Valley Authority today reported $7.7 billion in operating revenues through the nine months ended June 30, 2017. This reflects a 5 percent increase from the same period a year ago, on slightly lower electricity sales. The higher revenues were primarily driven by higher fuel cost recovery revenues. Power sales were down to the local power companies due to milder weather and increasing energy efficiencies in the first half of the year.
Total operating expenses increased slightly during the nine months as compared to the same period last year due to higher fuel and purchased power expense, which was up by about 9 percent.
“We continue to focus on executing to our long-term financial plan and this, along with our diverse generation portfolio, has been instrumental in keeping rates lower for our customers despite challenging operating conditions this year,” said TVA Chief Executive Officer Bill Johnson. “While conditions improved in the third quarter, our financials continue to reflect the warm, dry conditions and lower hydroelectric output in the first half of the fiscal year, along with higher average natural gas prices.”
Operating and maintenance expense was up $73 million for the first nine months of this fiscal year, or 4 percent higher, compared to the same period last year, driven by higher planned nuclear and other outage expenses, partially offset by labor and other cost reductions.
“The efficiencies we gained through the past several years reduced our annual operating expenses by over $800 million. This is especially important in a year like 2017 when we have more challenging operating conditions,” said TVA Chief Financial Officer John Thomas. “We are committed to maintaining low rates and managing debt prudently, and our year-to-date financial results reflect that.”
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