KNOXVILLE, Tenn. ― The Tennessee Valley Authority reported $4.9 billion in total operating revenues on 76.4 billion kilowatt-hours of electricity sales for the first two quarters of fiscal year 2021 ended March 31, 2021.
Sales of electricity were 3% higher due to an 8% increase in heating degree days over the same period in the prior year, and an increase in sales to directly served customers. Total operating revenues decreased 4% over the same period of the prior year driven primarily by lower effective base rates and lower fuel cost recovery revenues as a result of lower fuel rates offset by higher demand volume.
“The industry-leading reliability of the TVA power system kept the lights and heat on in the Tennessee Valley region this winter during conditions that caused severe disruptions in other parts of the country,” said Jeff Lyash, TVA president and CEO. “The dedicated effort of TVA’s 10,000 employees and the diversity and resiliency of the TVA power system continued to serve the 10 million people that rely on us each and every day, just as they have for the past 88 years.”
TVA’s tax equivalents and interest expenses were lower in the first two quarters of fiscal year 2021 than in the same periods of the prior year, while operating and maintenance expenses increased slightly by $26 million, driven primarily by an increase in planned outage expense and labor escalation. TVA’s fuel and purchased power expense was 8% lower year-over-year, primarily driven by lower fuel cost recovery resulting from volatility in the natural gas and purchased power markets, as well as lower effective fuel rates, due to lower coal prices, improved nuclear fleet performance and more hydroelectric generation.
TVA’s depreciation and amortization expense was $282 million lower during the quarter versus the same period in the prior year, due to a $265 million decrease related to the 2019 decision to accelerate the retirements of Bull Run and Paradise.
Interest expense was $557 million for the first six months of fiscal year 2021, which was a 3% decrease from the same period of the prior year, driven by lower average debt balances.
“As we continue to provide reliable power even in the most extreme conditions, the cost of TVA’s electricity also remains among the lowest in the industry and the region,” said John Thomas, TVA’s chief financial officer. “In fact, TVA’s customers are paying effective wholesale rates in 2021 that are lower than a decade ago and we project our rates will remain stable for the remainder of the decade.”
Additional highlights from TVA’s second quarter fiscal year 2021 include:
|Selected Financial Data – Six Months Ended March 31|
|Sales, Revenues & Expenses||2021||2020|
|Sales (millions of kWh)||76,431||74,123|
|Operating Revenues ($ millions)||$ 4,876||$ 5,099|
|Fuel & Purchased Power Expense||1,213||1,323|
|Operating & Maintenance Expense||1,359||1,333|
|Net Cash Provided by / (Used in) ($ millions)|
TVA executive management will host a conference call to discuss second quarter fiscal year 2021 results at 9:30 a.m. ET, on Tuesday, May 4. The event will be conducted as a webcast and as a dial-in teleconference. Participants will be able to hear the discussion and see slides via webcast, but will need telephone access to ask questions. Pre-registration for the conference call is required. Please click here to pre-register. Once pre-registered, the dial-in number will be provided via an email. If you are unable to pre-register, you may access the conference call by dialing toll free 844-308-6432 in the United States, or 412-717-9611 outside the 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 in the United States or 412-317-0088 outside the United States and using the conference number 10152742. A webcast replay and transcript will also be available for one year on TVA’s 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. TVA’s quarterly report and other SEC reports are available without charge on TVA’s website at http://www.tva.com/investors, on the SEC’s website at http://www.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.
The Tennessee Valley Authority is a corporate agency of the United States that provides electricity for business customers and local power companies serving nearly 10 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.
Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975
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