KNOXVILLE, Tenn., May 4, 2021 /PRNewswire/ -- The Tennessee
Valley Authority reported $4.9
billion in total operating revenues on 76.4 billion
kilowatt-hours of electricity sales for the first two quarters of
fiscal year 2021 ended March 31,
2021.
Sales of electricity were 3% higher due to an 8% increase in
heating degree days over the same period in the prior year, and an
increase in sales to directly served customers. Total operating
revenues decreased 4% over the same period of the prior year driven
primarily by lower effective base rates and lower fuel cost
recovery revenues as a result of lower fuel rates offset by higher
demand volume.
"The industry-leading reliability of the TVA power system kept
the lights and heat on in the Tennessee Valley region this winter
during conditions that caused severe disruptions in other parts of
the country," said Jeff Lyash, TVA
president and CEO. "The dedicated effort of TVA's 10,000 employees
and the diversity and resiliency of the TVA power system continued
to serve the 10 million people that rely on us each and every day,
just as they have for the past 88 years."
TVA's tax equivalents and interest expenses were lower in the
first two quarters of fiscal year 2021 than in the same periods of
the prior year, while operating and maintenance expenses increased
slightly by $26 million, driven
primarily by an increase in planned outage expense and labor
escalation. TVA's fuel and purchased power expense was 8% lower
year-over-year, primarily driven by lower fuel cost recovery
resulting from volatility in the natural gas and purchased power
markets, as well as lower effective fuel rates, due to lower coal
prices, improved nuclear fleet performance and more hydroelectric
generation.
TVA's depreciation and amortization expense was $282 million lower during the quarter versus the
same period in the prior year, due to a $265
million decrease related to the 2019 decision to accelerate
the retirements of Bull Run and Paradise.
Interest expense was $557 million
for the first six months of fiscal year 2021, which was a 3%
decrease from the same period of the prior year, driven by lower
average debt balances.
"As we continue to provide reliable power even in the most
extreme conditions, the cost of TVA's electricity also remains
among the lowest in the industry and the region," said John Thomas, TVA's chief financial officer. "In
fact, TVA's customers are paying effective wholesale rates in 2021
that are lower than a decade ago and we project our rates will
remain stable for the remainder of the decade."
Additional highlights from TVA's second quarter fiscal year
2021 include:
- TVA continued to maintain 99.999 percent reliability in
delivering energy to its customers despite extreme winter weather
in the quarter ended in March. TVA has maintained 99.999 percent
reliability for over 20 consecutive years, providing
industry-leading reliability.
- As part of the Strategic Financial Plan approved by the TVA
Board in 2019, TVA offers a 20-year Valley Partnership Agreement
option to local power company customers. As of May 3, 2021, 142 local power companies had
accepted the offer and are now TVA long-term partners. Bill credits
available to long-term partners totaled over $90 million in the first two quarters of fiscal
year 2021.
- In 2020, the TVA Board approved a Pandemic Relief Credit that
became effective beginning in October
2020 as a 2.5 percent monthly base rate credit, totaling
approximately $200 million for
2021. As of March 31, 2021, TVA
had provided approximately $104
million in Pandemic Relief Credits. TVA is also offering the
Back-to-Business credit program that provides relief to certain
larger customers when returning to operations and the Community
Care Fund that partners TVA and LPCs to support local initiatives
that address hardships created by the COVID-19 pandemic. TVA
remains committed to supporting communities and customers across
the Tennessee Valley during the region's ongoing recovery.
- Rainfall and runoff in the Tennessee Valley during the second
quarter of 2021 were 130% and 115% of normal,
respectively.
- TVA's economic development efforts, combined with our
reliability and low costs, continue to attract and encourage the
expansion of business and industries in the Tennessee Valley, with
over $3.9 billion in investments and
more than 45,200 jobs created or retained through the second
quarter of 2021.
Selected Financial
Data – Six Months Ended March 31
|
Sales, Revenues
& Expenses
|
2021
|
2020
|
Sales (millions of
kWh)
|
76,431
|
74,123
|
|
|
|
Operating Revenues ($
millions)
|
$
4,876
|
$
5,099
|
|
|
|
Fuel & Purchased
Power Expense
|
1,213
|
1,323
|
Operating &
Maintenance Expense
|
1,359
|
1,333
|
Interest
Expense
|
557
|
576
|
|
|
|
Net Income
|
$
640
|
$
447
|
|
|
|
Net Cash Provided
by / (Used in) ($ millions)
|
|
|
Operating
Activities
|
$
1,570
|
$
1,870
|
Investing
Activities
|
(1,092)
|
(1,010)
|
Financing
Activities
|
(480)
|
(324)
|
TVA executive management will host a conference call to discuss
second quarter fiscal year 2021 results at 9:30 a.m. ET, on Tuesday,
May 4. The event will be conducted as a webcast and as a
dial-in teleconference. Participants will be able to hear the
discussion and see slides via webcast, but will need telephone
access to ask questions. Pre-registration for the conference call
is required. Please click here to pre-register. 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 844-308-6432 in the United States, or 412-717-9611 outside
the United States.
A replay will be available one hour after the end of the
conference call until 9:30 a.m. ET, June 4, by calling toll free 877-344-7529 in
the United States or 412-317-0088
outside the United States and
using the conference number 10152742. A webcast replay and
transcript will also be available for one year on TVA's website at
http://www.tva.com/investors.
TVA's quarterly report on Form 10-Q provides additional
financial, operational, and descriptive information, including
unaudited financial statements for the quarter ended March. 31,
2021. TVA's quarterly report and other SEC reports are available
without charge on TVA's website at http://www.tva.com/investors, 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
most recent 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 companies
serving nearly 10 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:
|
Jim Hopson,
Knoxville, 865-632-8860
|
|
TVA Media Relations,
Knoxville, 865-632-6000
|
|
www.tva.com/news
|
|
Follow TVA news on
Facebook and Twitter
|
|
|
Investor
Relations:
|
Tammy Wilson,
Knoxville, 865-632-3366 or 888-882-4975
|
|
Josh Carlon,
Knoxville, 865-632-4133 or 888-882-4975
|
|
http://www.tva.com/investors
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/tva-reports-second-quarter-fiscal-year-2021-financial-results-301283186.html
SOURCE Tennessee Valley Authority