The Tennessee Valley Authority reports its operating revenues were US$8 billion through the nine-month period ended June 30, 2018, a 5% increase over the same period last year.
TVA says the higher revenues were driven by a 6% increase in electricity sales, primarily due to weather conditions.
O&M expenses were down $85 million, or 4%, mostly driven by a decrease in planned outage days and an increase in workforce efficiencies.
Fuel expense was down $68 million, or 4%, due to lower market prices for natural gas and more hydroelectric and gas generation.
“The strong performance of TVA’s nuclear and hydroelectric assets is playing a significant role in keeping power rates low for customers in 2018,” said Bill Johnson, TVA president and chief executive officer. “TVA has one of the cleanest, most diverse and most reliable power fleets in the entire nation — and we are seeing the benefits of that on the bottom line, with significantly lower operating expenses.”
In addition, net income was $1.2 billion, up 123%.
TVA is a corporate agency of the U.S. that provides electricity for business customers and local power distributors serving more than 9 million people in parts of seven southeastern states. TVA derives virtually all of its revenues from the sales of electricity.
TVA owns 30 hydroelectric facilities throughout the Tennessee River system, as well as the Raccoon Mountain pumped-storage plant. The agency also purchases power from eight hydro plants on the Cumberland River operated by the U.S. Army Corps of Engineers.
In November 2017, we reported that a rock slide damaged a section of a wooden water flume that supplied water to TVA’s 23-MW Ocoee No. 2 hydropower plant.