NORTH MISSISSIPPI — Weather and higher sales to industrial customers improved the Tennessee Valley Authority’s (TVA’s) financial performance in the three months ended June 30, the utility said today in its quarterly report to the Securities and Exchange Commission.
Warm temperatures across the Tennessee Valley during the period from April through June of 2012, including four straight days with highs above 100 degrees, contributed to a 6 percent increase in electricity sales and a 5 percent increase in operating revenue compared with the same period last year.
TVA says it is also beginning to see positive results from a series of cost-saving actions begun in the second quarter of 2012, including reductions in discretionary spending, deferred program spending, productivity enhancements and elimination of management levels and some contractor and consultant services.
While third quarter 2012 results were improved over the same period last year, the increases in sales and revenues were not large enough to offset decreases reported in the first two quarters of 2012 attributed to the exceptionally mild winter and slow economy.
TVA’s fuel expenses decreased $224 million or 11 percent in the first nine months of 2012 compared with the same period last year. TVA benefited from a balanced mix of generation resources and lower natural gas prices, which, in turn helped to lower rates for customers. During the first nine months of 2012, gas-fired generation increased 138 percent and coal-fired generation decreased 27 percent compared with the same period last year. Nuclear generation also helped offset the reduction in coal-fired generation, increasing 17 percent in the first nine months of 2012.
TVA reports it met a record load swing from just over 15,000 megawatts to more than 30,000 megawatts between 3 a.m. and 5 p.m. June 28, when temperatures rose from 68 degrees to 101 across the Tennessee Valley. The next day TVA met a new peak record for June (31,097 megawatts), and then a new weekend peak record (30,771 megawatts) on June 30-July 1.