Mild Weather Results in Slightly Lower Third-Quarter Revenue for TVA
Aug. 22, 2003
Mild weather in the Tennessee Valley resulted in a decline in power sales and slightly lower operating revenues for TVA during the third quarter of the 2003 fiscal year, compared with the same three months of 2002.
Revenues for the three months that ended June 30 totaled $1.637 billion, a 2.4-percent reduction from the third quarter a year ago. Power sales were down 4.3 percent (or 1.7 billion kilowatt-hours) from the same period last year.
For the first nine months of the 2003 fiscal year, revenues were $5.133 billion, up almost 6 percent from the same nine-month period in 2002, according to the unaudited financial results. Colder winter temperatures resulted in increased power sales and revenues for the nine months that ended June 30, 2003.
“Although milder-than-normal temperatures during the quarter lessened demand for electricity, and hence lowered TVA’s power sales and revenue, overall financial indicators remain positive for the fiscal year to date,” said TVA Chairman Glenn McCullough Jr.
TVA reduced interest expense during the third quarter to $332 million, down from $356 million for the third quarter of 2002. For the year to date, interest expense was down $60 million from the first nine months of 2002. McCullough credited the reduction in interest expense to TVA’s “careful management of long-term debt.”
TVA reported operating income of $324 million for the 2003 third quarter, compared with $412 million for the same period last year. TVA had a net loss of $8 million for the three-month period, compared with net income of $59 million for the third quarter of last year.
Year-to-date net income through June 30 was $413 million, compared with a net loss of $27 million for the same nine-month period in 2002. Much of the increase is a result of two non-cash accounting changes implemented during the first quarter of 2003.
Energy sales for the first nine months of 2003 were up 3.3 percent or 3.8 billion kwh, compared with the same period in 2002.
To assure full and accurate disclosure of its financial condition, TVA has adopted a financial code of ethics and financial reporting practices that are consistent with the goals of the Sarbanes-Oxley Act of 2002. Complete financial statements and related disclosure information are available on the financial reports page.
TVA is the nation’s largest public power producer and is completely self-financed. TVA provides power to large industries and 158 power distributors that serve 8.3 million consumers in seven southeastern states.
Media Contact:
John Moulton, Knoxville (865-632-8048) or TVA News Bureau, Knoxville (865-632-6000)
