TVA
Makes Clean Air Improvements, Exceeds Debt Reduction Target
Sept.
10, 2002
TVA will spend more than $430 million on environmental improvements this
year as part of the most aggressive clean air program in the country and
will reduce its debt by $100 million twice as much as projected
according to 2002 fiscal year financial projections presented to
the TVA Board today.
Meeting
at TVA headquarters in Knoxville, Tennessee, the Board approved a 2003
fiscal year budget of more than $7 billion. The 2003 budget includes another
$528 million for environmental improvements, provides funds for the recovery
of Browns Ferry Nuclear Plant Unit 1, and continues the trend of debt
reduction.
No
general increase in TVA rates will be required in 2003, marking the fifth
straight year of stable rates.
What
TVA has accomplished in 2002 reflects our commitment to making sound business
decisions to provide the capital needed to improve air quality and enhance
our generation and transmission systems while continuing the trend of
debt reduction, TVA Chairman Glenn McCullough Jr. said. Our
financial and operational achievements demonstrate the dedication and
excellent work by the men and women of TVA and their success at controlling
costs while providing a reliable, affordable power supply for the Tennessee
Valley region.
TVA
Chief Financial Officer David Smith reviewed TVAs financial highlights
for fiscal year 2002 and presented the 2003 budget to the Board.
Smith
said TVA consistently met customers high electricity demands with
fewer interruptions through prudent operational and financial management
and competitive and stable energy prices. He said TVA expects revenues
of $6.8 billion in fiscal year 2002, which ends September 30.
Smith
also said that TVA is on track to reduce debt by $100 million this fiscal
year, for a total debt reduction of $2.4 billion since 1997. He said that
interest expense is down $195 million from the 2001 fiscal year and is
currently 21 percent of revenue the lowest percentage in more than
20 years.
As
part of TVAs continued investment in clean air, Smith said that
11 systems to reduce nitrogen oxide emissions are operational, another
11 are under construction, and six are being designed.
TVA
is fulfilling its historic mission to provide a reliable power supply
for residents of the Valley while improving the environment for future
generations, TVA Director Skila Harris said.
Focusing
on excellence in our business performance helps the entire Tennessee Valley
region because an affordable power supply is the engine that drives economic
development, high-quality job creation, and a higher quality of life for
everyone, TVA Director Bill Baxter said.
TVA
is the nations largest public power producer, and its power system
is self-financed. It provides power to 158 power distributors that serve
about 8.3 million consumers in seven Southeastern
states and also serves large industries in the region.
Media Contact:
Gil
Francis, Knoxville (865-632-8031) or TVA News Bureau, Knoxville (865-632-6000)
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