KNOXVILLE, Tenn. (AP) — The Tennessee Valley Authority reported a net loss of $245 million on operating revenues of $2.58 billion in the first quarter of fiscal year 2013 as electricity sales were flat and fuel expenses increased.
TVA said in a news release Tuesday that their quarterly filing with the Securities and Exchange Commission shows that total electricity sales increased by a slight 0.2 percent for the three-month period ending Dec. 31, 2012 and total operating expenses were 4 percent higher than the same period last year, driven by a 24 percent increase in fuel expense.
Operating revenues were $11 million higher compared with last year, due to an $82 million increase in fuel cost recovery and a $14 million increase in other revenue sources. However that was partially offset by an $85 million decrease in base revenue. Also the utility had $111 million increase in expenses from nuclear refueling outages in the first quarter.
TVA said that as the utility transitions to a time-of-use rate structure with its customers, it may result in reduced overall effective base rates in certain periods.
"We are seeing reduced base rates during transition months and winter months, and expect to see higher revenues during the summer months," Chief Financial Officer John Thomas said in a news release. "However, cost-savings actions we took last year have positioned TVA to remain financially healthy throughout the year."
TVA provides electricity for utility and business customers in most of Tennessee and parts of Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia to a population of over 9 million people.