The Tennessee Valley Authority has reported $11.3 billion in operating revenues for fiscal year 2019, a 1% increase over fiscal year 2018, and says increased hydroelectric generation helped lower fuel costs.
TVA says the financial performance reflected lower electricity sales based on overall milder weather in 2019 than in 2018 and lower fuel cost recovery revenues, offset by higher base rates.
“TVA’s success at reducing costs and reducing debt while investing in cleaner generation is paying off”, said Jeff Lyash, TVA’s president and chief executive officer. “TVA delivered another year of financial and operational successes, maintaining high reliability for our customers in 2019 while making important investments for the future.”
TVA’s total operating expenses in fiscal year 2019 were 2% lower than in 2018, driven by lower fuel expense and lower depreciation and amortization expense. TVA’s fuel and purchased power expense was 4% lower in 2019 than in 2018, due to a $153 million decrease in fuel expense. Lower natural gas prices and increased hydroelectric generation helped lower fuel expenses. TVA’s depreciation and amortization expense was $554 million lower in 2019 than in 2018, primarily due to a $1.1 billion decrease in amortization of deferred nuclear generating units and nuclear training costs regulatory assets from the previous year.
Operating and maintenance expense was $492 million higher in 2019 than in 2018, primarily due to $266 million of accelerated recovery of deferred environmental costs, $170 million of project write-offs and inventory write-offs and reserves related to the anticipated retirement of certain generating units and $39 million of increased outage expense due to additional planned nuclear outage days.
Interest expense was $45 million, or 4% lower in 2019 than in 2018, reflecting lower short-term and long-term debt balances.
TVA reported net income of $1.4 billion, an increase of 27% from 2018.
TVA is a corporate agency of the U.S. that provides electricity for business customers and local power companies serving nearly 10 million people in parts of seven southeastern states.