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TVA Power Sales, Operating Revenues Increase During Third Quarter

August 17, 2004

Growth in the Tennessee Valley economy and warmer weather, particularly during the month of May, resulted in an 8-percent increase in power sales and a 14-percent increase in operating revenues for TVA during the third quarter of 2004, compared with the third quarter of the 2003 fiscal year.

Total sales of electricity increased 3.1 billion kilowatt-hours for the three-month period ending June 30, 2004, compared to the same three months of 2003. Operating revenues totaled nearly $1.86 billion for the third quarter of 2004, compared to $1.63 billion for the same period a year ago.

Net income for the third quarter of the 2004 fiscal year was $105 million, an increase of $113 million from the third quarter last year. The increase in net income was due partly to higher operating income of $73 million. Net interest expense was $326 million, down $6 million from the same three-month period a year ago.

Operating and maintenance costs increased $64 million, or 13 percent, during the 2004 third quarter, compared with the same quarter a year ago.

“Operationally, TVA’s power system continued to demonstrate excellence in providing affordable, reliable power during the third quarter,” said TVA Chairman Glenn McCullough Jr. “Generating units at three TVA fossil plants set continuous operation records, and TVA met two all-time peak demands for the month of May. TVA also began operating 10 additional selective catalytic reduction systems this quarter. These systems assure cleaner air in the Valley by reducing summertime emissions of nitrogen oxide from our coal-fired plants.”

For the first nine months of the 2004 fiscal year power sales increased by 3.8 billion kilowatt-hours, or about 3 percent, and operating revenues were up 8 percent, compared with the same nine months of 2003. The increases were weather related.

Net income for the first nine months of the 2004 fiscal year was $296 million, compared with $396 million for the same period in 2003. The decrease was primarily related to two non-cash accounting changes implemented during the first quarter of 2003.

TVA’s net interest expense declined by $28 million in the first nine months of 2004, from $1.013 billion for the same period last year to $985 million in 2004. The reduction reflects lower average interest rates and TVA’s commitment to lower its level of total outstanding debt. Operating and maintenance expenses were $219 million, or 15 percent higher for the nine months ending June 30, 2004, compared with the same nine-month period in 2003.

More complete financial information and related disclosure information are available on the page TVA Financial Reports.

TVA is the nation’s largest public power provider and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.5 million consumers in seven southeastern states.

Attatchment

TVA Highlights Third Quarter – Fiscal Year 2004 (41kb, PDF requires Adobe Acrobat Reader).

Media Contact:

John Moulton, Knoxville, (865) 632-8048
TVA News Bureau, Knoxville, (865) 632-6000

TVA Newsroom

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