TVA Reports Fiscal Year 2023 Financial Results
- $12.1 billion in total operating revenues on 157 billion kilowatt-hours of electricity sales in FY23.
- Power sales were 3% lower due to overall milder weather and lower sales to industries.
- $225 million in pandemic recovery credits returned to customers in 2023. Over the past three years, a total of $674 million have been returned in total recovery-related credits.
- TVA’s economic development efforts, reliability, and competitive rates continued to help attract or expand businesses and industries in the Tennessee Valley in 2023. These companies announced projected capital investment of $9.2 billion and are expected to create over 12,000 jobs and retain over 46,000 jobs.
- TVA remains a clean energy leader with 55% of its power supply from carbon-free sources in 2023.
KNOXVILLE, Tenn. ― The Tennessee Valley Authority reported $12.1 billion in total operating revenues on 157 billion kilowatt-hours of electricity sales for the year ended Sep. 30, 2023. Total operating revenues decreased 3.9% over last year, primarily due to a decrease in fuel cost recovery revenue driven by lower fuel rates and lower sales volume.
TVA experienced unprecedented conditions caused by Winter Storm Elliott, resulting in several power demand records, including the highest 24-hour electricity demand, and highest winter peak demand, in TVA history. TVA also experienced some of the highest summer demand in 15 years - for three consecutive days in late August, TVA experienced peak loads of 31,000 megawatts or greater. Despite the weather extremes, sales of electricity decreased approximately three percent during 2023 as compared to the prior year, driven by overall milder weather and lower sales to industries.
“The strength of TVA has always been its people,” Jeff Lyash, TVA president and CEO, said. “I am immensely proud of the hard work and commitment of our employees, who respond to tough challenges each and every day. Our priority is to deliver for the communities and people of the Tennessee Valley region, ensuring that we provide affordable, reliable and clean energy now and in the future.”
Fuel and purchased power expense was $306 million lower, driven primarily by a decrease in purchased power expense due to lower demand for energy and higher availability of nuclear generation. Fifty-five percent of TVA’s power supply was carbon-free in fiscal year 2023 - coming from nuclear, hydroelectric and other renewables.
“TVA’s stable wholesale rates, credits to customers and communities, and the benefits of our diverse power system all played a role in keeping TVA’s electricity costs among the lowest in the country,” John Thomas, TVA’s chief financial and strategy officer, said. “TVA remains in the best financial health in decades, which has positioned TVA well to make substantial investments in the coming years that will help our region benefit for years to come.”
Operating and maintenance expense increased by $386 million driven primarily by labor costs, TVA’s New Nuclear Program, and an increase in outage and contract labor expense. Depreciation and amortization expense increased $159 million over the prior year, primarily due to an increase in depreciation expense associated with coal retirement decisions, and an increase in amortization expense of decommissioning costs recovered in rates.
Interest expense was $4 million higher for the year ended Sep. 30, 2023, with lower interest on long-term debt helping to offset the impact of rising interest rates.
TVA’s net income was $500 million for the fiscal year 2023, which was $608 million lower than the prior year due mainly to lower operating revenues and higher operating expenses.
TVA’s senior leadership team will host a conference call and webcast today to discuss fiscal year 2023 results at 9:30 a.m. ET. Please click here to pre-register. A webcast replay and transcript will also be available for one year on TVA’s website at tva.com/investors.
Selected Financial Data – Twelve Months Ended September 30
|Sales, Revenues & Expenses||2023||2022|
|Sales (millions of kWh)||157,311||162,608|
|Operating Revenues ($ millions)||$ 12,054||$ 12,540|
|Fuel & Purchased Power Expense||4,182||4,488|
|Operating & Maintenance Expense||3,372||2,986|
|Net Income||$ 500||$ 1,108|
|Net Cash Provided by / (Used in) ($ millions)|
|Operating Activities||$ 2,872||$ 2,948|
TVA’s annual report on Form 10-K provides additional financial, operational, and descriptive information, including audited financial statements for the year ended Sep. 30, 2023. TVA’s annual report and other SEC reports are available without charge on TVA’s website at tva.com/investors, on the SEC’s website at sec.gov, or by calling TVA toll-free at 888-882-4975.
This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the 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 those in the forward-looking statements.
Additional details of TVA’s successes over the past year are found in its FY23 Corporate Annual Report, which highlights the stories of the women and men of TVA and partner agencies who delivered outstanding performance.
The Tennessee Valley Authority is the nation’s largest public power supplier, delivering energy to 10 million people across seven southeastern states. TVA was established 90 years ago to serve this region and the nation by developing innovative solutions to solve complex challenges. TVA’s unique mission focuses on energy, environmental stewardship, and economic development. With one of the largest, most diverse, and cleanest energy systems – including nuclear, hydro, solar, gas, and advanced technologies – TVA is a leader in our nation’s drive toward a clean energy future.
TVA is a corporate agency of the United States, receiving 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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