TVA Operating Revenues, Expenses Increase; Net Income Decreases
August 24, 2005
During the first nine months of the 2005 fiscal year, TVA’s operating revenues totaled more than $5.5 billion, an increase of $41 million over the same period last year, reflecting a 1.5 -percent increase in power sales.
Total operating expenses for the nine months ending June 30 were $254 million higher than the same period in 2004 and included a nearly 11-percent increase in fuel and purchased power costs. Net income for the nine-month period in 2005 was $51 million, compared to $291 million for the same period a year ago.
“An increase in operating revenues coupled with a reduction of $42 million in net interest expense helped offset the higher operating expenses, which were driven primarily by the rising costs of coal, natural gas and purchased power,” said TVA Chairman Bill Baxter. “Our power system performed exceptionally well during this period, delivering a record amount of power to our customers during an early heat wave in June as the region’s growing economy continues to drive the need for electricity.”
During the third quarter of 2005, operating revenues were $24 million higher than the third quarter of 2004, with power sales about the same. Operating expenses for the three months ending June 30 were more than $1.5 billion, an increase of 6 percent over the same period last year.
TVA recorded a net loss of $15 million in the 2005 third quarter, compared to net income of $105 million for the same three-month period in 2004. Higher operating expenses contributed to the difference.
View a summary of the TVA Power Program Financial and Statistical Highlights for the quarter and year-to-date (PDF file, 7 kb).
TVA is the nation’s largest public power provider and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve approximately 8.6 million consumers in seven southeastern states.
Media Contact
John Moulton, (865) 632-8048
TVA News Bureau, Knoxville, (865) 632-6000
