TVA Net Income, Operating Revenues Up During Third Quarter
August 9, 2002
As a result of higher energy sales, TVA’s net income increased by $84 million and operating revenues were up by $51 million for the third quarter of the 2002 fiscal year, compared with the same period last year, according to financial results released today.
“The third quarter of 2002 was a period of solid financial performance for TVA and a time of significant achievements in supporting the National Energy Policy,” TVA Chairman Glenn McCullough Jr. said.
TVA reported net income of $59 million for the three months ending June 30, 2002, compared with a loss of $25 million for the third quarter of the 2001 fiscal year. Revenues were almost $1.7 billion, up 3.1 percent from the same period of the previous year.
Energy sales were up 4.7 percent during the 2002 third quarter compared with the same period last year. “The recent hot weather experienced across the United States sparked a strong demand for energy during the third quarter,” TVA Chief Financial Officer David Smith said.
However, Smith said that extremely mild weather in the Tennessee Valley during the winter has kept fiscal year-to-date operating revenues down $248 million from the same nine months in 2001. TVA reported a net loss of $27 million for the first nine months of the 2002 fiscal year, reflecting a loss on a project cancellation. Net income before the loss on the canceled Franklin County combined-cycle gas plant was $123 million.
“Although we have been tested by the effects of mild weather this year, we are financially healthy today and continue to make the necessary business decisions to strategically position ourselves for the competitive environment of tomorrow,” Smith said.
Net interest expense declined $43 million and $168 million, respectively, for the three months and nine months that ended June 30, 2002, compared with the same periods in 2001. The decline in interest expense reflects savings from refinancing debt and lower total outstanding debt.
Third-quarter actions by the TVA Board that support the National Energy Policy include the decision to return Browns Ferry Unit 1 to service, agreement with three other major transmission providers in the Southeast and Midwest to provide seamless transmission service, and partnering with Oak Ridge National Laboratory, the Department of Energy and Habitat for Humanity to build energy-efficient “Net Zero Energy” homes.
“TVA is using sound business practices coupled with 21st century technologies to deliver affordable, reliable electric power, a cleaner environment, and a vibrant economy for the people of the Tennessee Valley,” McCullough said.
TVA is the nation’s largest public power producer, and its power system is self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
Gil Francis, Knoxville (865-632-8031) or TVA News Bureau, Knoxville (865-632-6000)
