COUNCE, Tenn.—The Tennessee Valley Authority’s employees continued their 84-year mission of service to the region in fiscal year 2017, providing reliable, cleaner energy and strong environmental stewardship while partnering with customers and communities to increase economic opportunities. The value of the team’s effort is reflected in improved operational and financial performance that translates into low rates for consumers.
“Hardin County native and civil rights activist Myles Horton once noted that organizations don’t automatically receive respect, but they must earn it by serving people,” TVA President and CEO Bill Johnson told the TVA board of directors at its meeting today.
“That is a high standard, and one that every TVA employee strives to meet every day. Based on the measured results they delivered in fiscal 2017, our employees have earned respect and demonstrated, once again, their commitment to our mission of serving the people of the Tennessee Valley.”
During the 2017 fiscal year that ended Sept. 30, TVA employees remained aligned with TVA’s long-term financial plan and focused on operational excellence across the entire organization. Johnson highlighted a number of achievements during the board meeting including:
TVA Chief Financial Officer John Thomas provided the board with preliminary fiscal year-end results. Operating revenues ($10.7 billion), interest expenses ($1.3 billion) and net income ($685 million) were favorable to budget. Operating and maintenance expenses were favorable at the business unit level, partially offset by the board’s August decision to approve a one-time $500 million extra pension contribution.
“The prolonged warmer weather over the summer and fall, combined with our efforts to improve operational efficiency, created a level of performance that allowed us to accelerate our long-term financial plans,” said Thomas. “As a result, we were able to provide low-cost power, carry out our responsibilities for stewardship and economic development, invest more than $2 billion in capital improvements to our system and still reduce our debt and financing obligations by nearly $200 million during the fiscal year.”
TVA will conduct a call on Wednesday, Nov. 15, with investors and news media to review its complete 2017 fiscal year financial performance. The 10-K annual report will be available the same day.
“TVA employees’ efforts in 2017 have set the stage for meeting the challenges of an evolving energy market. Working together with thousands of local power company employees who share our devotion to the unique Tennessee Valley public power model, we will continue to adapt to meet the changing needs of those we serve,” said Johnson.
During the board meeting, the board acted to:
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power distributors serving more than 9 million people in parts of seven southeastern states. TVA receives no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation and land management for the Tennessee River system and assists local power companies and state and local governments with economic development and job creation.
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