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 KNOXVILLE, Tenn., Jan. 28 /PRNewswire/ -- The Tennessee Valley Authority reported today a $71 million reduction in operating expenses and a significant increase in power sales.
 TVA's first quarter operating expenses were $718 million, compared to $789 million reported for the same period last year. Lower fuel costs, the off-system sale of electricity, and an accounting change related to amortization of deferred assets contributed to the 9 percent reduction. The decreased fuel expenses resulted from more power being generated by TVA's hydro and nuclear units at a much lower cost.
 "TVA employees are continuing to achieve success with our expense reduction initiative," said William F. Malec, TVA's executive vice president and chief financial officer. "We're accomplishing our goal of doing more with less while remaining responsive to our customers' needs."
 The improving economy and growth in the region contributed to the increase in TVA's power sales this quarter, despite mild weather throughout the Tennessee Valley. Total power sales for the first quarter were 27.7 billion kilowatthours, an increase of more than 3 percent compared to last year.
 TVA's operating revenues of $1.25 billion increased 1 percent over last year's first quarter results of $1.24 billion. The agency's School and Job Credits Program offset revenues for the quarter by $17 million. The year-long program, launched in May 1992, offers 10 percent discounts to schools and 5 percent discounts to manufacturers on their firm power bills. Since the program was announced, schools and certain industrial customers served by TVA have saved approximately $38 million in power bill reductions.
 TVA also reported first quarter net income of $116 million, nearly triple the amount reported for the same period last year.
 TVA's net income for the 12 months ending Dec. 31, 1992, was $196 million, compared to $471 million for the 12 months ending Dec. 31, 1991.
 Operating revenues decreased slightly during the 12 months ending Dec. 31, 1992, from $5.17 billion to $5.08 billion, a decrease of 2 percent. Revenues for the past 12 months were impacted by milder weather, growth in TVA's sale of reduced-rate non-firm power, and the agency's School and Job Credits Program.
 Financial Results for the Period Ending December 31 (unaudited)
 Three Months Twelve Months
 1992 1991 1992 1991
 Operating Revenues $1,247 $1,237 $5,075 $5,174
 Operating Expenses
 Fuel and Power 285 335 1,303 1,373
 Other Production Costs 148 152 599 559
 Other Operating Expenses 285 302 1,226 1,167
 Total Operating Expenses 718 789 3,128 3,099
 Operating Income 529 448 1,947 2,075
 Interest Expense (428) (417) (1,705) (1,675)
 AFUDC 9 4 40 56
 Other Income and Deductions 6 5 23 15
 Accounting Write-offs - - (109) -
 Net Income $116 $40 $196 $471
 Kwh Sales 27,730 26,794 113,338 112,714
 Note: TVA converted to an end-use wholesale rate structure in
 May 1992. Kwh sales have been adjusted to reflect this
 -0- 1/28/93
 /CONTACT: Arlethia Perry-Johnson, 615-632-2006, or William F. Malec, 615-632-3987, both of TVA/

CO: Tennessee Valley Authority ST: Tennessee IN: UTI SU: ERN

SB -- CH004 -- 0103 01/28/93 09:35 EST
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Publication:PR Newswire
Date:Jan 28, 1993

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