KNOXVILLE, Tenn., May 4, 2021 / PRNewswire / – The Tennessee Valley Authority reported $ 4.9 billion total operating revenues on 76.4 billion kilowatt-hours of electricity sales for the first two quarters of fiscal 2021 ended March 31, 2021.
Electricity sales increased 3% due to an 8% increase in heating degree days compared to the same period last year and increased sales to directly served customers. Total operating revenues decreased by 4% compared to the same period last year, mainly due to lower effective base rates and lower fuel cost recovery revenues due to the lower fuel prices offset by higher volume of demand.
“The state-of-the-art reliability of TVA’s electrical system has kept the lights and heating on in the Tennessee Valley area this winter under conditions that have caused severe disruption in other parts of the country,” said Jeff lyash, President and CEO of TVA. “The dedicated efforts of TVA’s 10,000 employees and the diversity and resilience of TVA’s electricity grid have continued to serve the 10 million people who rely on us every day, just as they have for the past 88 years. .
The tax equivalents and interest charges of VAT were lower in the first two quarters of fiscal 2021 than in the same periods of the previous fiscal year, while operating and maintenance costs have slightly increased by $ 26 million, mainly due to increased expenses related to planned outages and escalating workforce. Fuel and electricity costs purchased from TVA decreased 8% year over year, primarily due to lower fuel cost recovery resulting from volatile natural gas and gas markets. purchased energy, as well as lower effective fuel prices, due to lower coal prices, which improved nuclear fleet performance and more hydropower production.
The VAT depreciation expense was $ 282 million down during the quarter compared to the same period of the previous year, due to a $ 265 million decrease linked to the 2019 decision to accelerate the retirements of Bull Run and Paradise.
Interest expense was $ 557 million for the first six months of fiscal 2021, a decrease of 3% compared to the same period of the previous year, due to the decrease in average debt balances.
“While we continue to provide reliable power even under the most extreme conditions, TVA’s electricity cost also remains among the lowest in the industry and in the region,” said John thomas, Financial Director of TVA. “In fact, TVA customers are paying effective wholesale rates in 2021 that are lower than ten years ago and we expect our rates to remain stable for the remainder of the decade.”
Other highlights of TVA’s second quarter of fiscal 2021 include:
- TVA continued to maintain 99.999% reliability in delivering energy to its customers despite the extreme winter conditions in the quarter ended in March. TVA has maintained 99.999% reliability for over 20 consecutive years, delivering industry-leading reliability.
- As part of the strategic financial plan approved by the VAT Commission in 2019, TVA offers a 20-year partnership agreement option to customers of local power companies. From May 3, 2021, 142 local power companies had accepted the offer and are now long-term partners of TVA. Invoice credits available to long-standing partners total more than $ 90 million during the first two quarters of fiscal 2021.
- In 2020, the VAT board approved a pandemic relief credit which came into effect from October 2020 in the form of a monthly loan of 2.5% at the prime rate, totaling approximately $ 200 million for 2021. From March 31, 2021, TVA had provided approximately $ 104 million in Emergency credits in the event of a pandemic. TVA also offers the Back-to-Business credit program which relieves some large customers when they return to operations and the Community Care Fund which combines TVA and LPC to support local initiatives that address the difficulties created by the COVID-19 pandemic. TVA remains committed to supporting the communities and customers of the Tennessee Valley during the region’s continued recovery.
- Precipitation and runoff in the Tennessee Valley during the second quarter of 2021 were 130% and 115% of normal, respectively.
- TVA’s economic development efforts, combined with our reliability and low costs, continue to attract and encourage the expansion of businesses and industries in the Tennessee Valley, with more than $ 3.9 billion investments and more than 45,200 jobs created or retained in the second quarter of 2021.
Selected Financial Data – Six Months Ended March 31
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Sales (million kWh)
Operating revenues (in millions of dollars)
Fuel and electricity costs purchased
Operation and maintenance costs
Net cash provided by / (used in) (in millions of dollars)
TVA’s senior management will hold a conference call to discuss the results for the second quarter of fiscal 2021 at 9:30 a.m. ET, at Tuesday May 4. The event will take the form of a webcast and teleconference by phone call. Participants will be able to hear the discussion and view slides via the webcast, but will need phone access to ask questions. Pre-registration for the conference call is required. Please click here to pre-register. Once pre-registered, the phone number will be provided by email. If you are unable to pre-register, you can access the conference call by dialing toll-free 844-308-6432 at United States, or 412-717-9611 outside United States.
A replay will be available one hour after the end of the conference call until 9:30 a.m. ET, June 4, by calling toll-free 877-344-7529 at United States or 412-317-0088 outside United States and using conference number 10152742. A replay and transcript of the webcast will also be available for one year on the TVA website at http://www.tva.com/investors.
TVA’s Quarterly Report on Form 10-Q provides additional financial, operational and descriptive information, including unaudited financial statements for the quarter ended March. 31, 2021. The TVA Quarterly Report and other SEC reports are available for free on the TVA website at http://www.tva.com/investors, on the SEC website at http: // www.sec.gov, or by calling TVA toll-free at 888-882-4975.
This press release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, there are many factors that could cause actual results to differ materially from those of forward-looking statements. Please refer to TVA’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q for a discussion of factors that could cause actual results to differ from forward-looking statements.
The Tennessee Valley Authority is a corporate agency of United States which provides electricity to commercial customers and local power companies serving nearly 10 million people in parts of seven southeastern states. TVA receives no funding from taxpayers, deriving almost all of its income from the sale of electricity. In addition to operating and investing its revenues in its power system, TVA provides flood control, navigation, and land management for the Tennessee river system, and assists local power companies and state governments. and local in economic development and job creation.
Jim Hopson, Knoxville, 865-632-8860
TVA Media Relations, Knoxville, 865-632-6000
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Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
SOURCE Tennessee Valley Authority