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TVA reports $240M third-quarter loss

NORTH MISSISSIPPI — Refueling outages at nuclear plants and a devastating storm combined with lower electricity demand impacted third-quarter financial results, the Tennessee Valley Authority reports.

TVA recorded a net loss of $240 million on $2.7 billion in revenues for the third quarter, compared with net income of $199 million on $2.6 billion in revenues for the same period a year ago.

For the nine months ended June 30, TVA reported a net loss of $35 million on $8.5 billion in revenues, compared with net income of $779 million on $7.6 billion in revenues for the same period of the prior year.

TVA’s third-quarter report to the Securities and Exchange Commission said expenses from a series of tornadoes April 27-28 and outages at three of TVA’s six reactors contributed to lower net income for the three-month period ended June 30.

One unit was refueled each at the Browns Ferry, Sequoyah and Watts Bar nuclear plants during the period. Five of six TVA reactors have been refueled since October.

The April storms left nearly 850,000 homes and businesses without power and damaged more than 90 large transmission lines. Electricity was restored for most distributor customers within a week, but rebuilding the transmission system in Alabama, Mississippi and Tennessee took until July.

In the third-quarter report, TVA estimated the storm cost $39 million for structural repairs, including $29 million in capitalized expenditures and $10 million in operating and maintenance expenditures. In addition, TVA spent $95 million on replacement power until the Browns Ferry Nuclear Plant and two units at Widows Creek Fossil Plant were reconnected to the grid in late May and early June.

Electricity sales volume declined 5 percent in the third quarter compared with a year ago. Lower demand from homes and businesses was weather-driven, as well, first by outages from the April storms and then by cooler-than-normal temperatures in May and June.

Fuel expenses rose by $75 million, to $584 million, for the three-month period ended June 30, while power purchases increased by $110 million, to $387 million. Operating and maintenance expenses were up $237 million, to $994 million, compared with the third quarter of 2010.

One aspect of TVA’s power system that has benefited from the weather is hydroelectric generation. Because of wetter-than-normal conditions, hydro production was up 47 percent in the third quarter compared with 2010.

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