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TVA REPORTS THIRD QUARTER FINANCIAL RESULTS

 KNOXVILLE, Tenn., July 30 /PRNewswire/ -- An improving economy and continued growth have resulted in increased power sales, revenues and income for the Tennessee Valley Authority, according to third quarter financial results reported today.
 Results for the nine-month period that ended June 30 also show a continued trend of decreasing operating expenses, which were down by $94 million compared to the same nine-month period in the last fiscal year. The fiscal year began Oct. 1, 1992, and ends Sept. 30, 1993.
 Operating revenues for nine months were $3.790 billion, up from $3.714 billion for the same period last year. Operating income increased 12 percent from $1.364 billion to $1.534 billion when compared to the same period last year, and net income was $270 million compared to $141 million.
 TVA's power sales for the nine-month period increased 4 percent from 81.4 billion kilwatthours to 85.0 billion kWh.
 William F. Malec, TVA's executive vice president and chief financial officer, said decreased operating costs were partly a result of an increase in off-system sales, which are an offset against expenses.
 Increased generation from TVA's economical hydroelectric power and an accounting change related to the amortization of nuclear recovery costs also lowered operating expenses, Malec said. He said revenues were affected by higher sales of nonfirm power, which has lower rates, and by TVA's School and Job Credits Program.
 For the 12-month period ending June 30, TVA operating revenues were approximately the same as the previous year at $5.1 billion. Net income was $249 million compared to $302 million for the same period a year ago. Net income for the current 12-month period was affected by an accounting write-off of $109 million related to certain nuclear fuel assets, Malec said.
 Power sales for the 12-month period were 116.0 billion kWh, up from 112.2 billion kWh the previous year.
 TENNESSEE VALLEY AUTHORITY
 Financial Results for the Period Ending June 30 (unaudited)
 (millions)
 Three Months Nine Months Twelve Months
 1993 1992 1993 1992 1993 1992
 Operating
 Revenues $1,256 $1,195 $3,790 $3,714 $5,141 $5,149
 Operating
 Expenses
 Fuel and Power 332 333 937 988 1,304 1,383
 Other Production
 Costs 167 153 456 443 617 601
 Other Operating
 Expenses 283 311 863 919 1,185 1,232
 Total Operating
 Expenses 782 797 2,256 2,350 3,106 3,216
 Operating
 Income 474 398 1,534 1,364 2,035 1,933
 Interest
 Expense (449) (427) (1,321) (1,265) (1,751) (1,685)
 AFUDC 15 11 38 25 49 38
 Other Income
 and Deductions 7 6 19 17 25 16
 Accounting
 write-offs -- -- -- -- (109) --
 Net Income $ 47 $ (12) $ 270 $ 141 $ 249 $ 302
 Kwh Sales 28,005 26,813 85,026 81,380 116,048 112,153
 Note: TVA converted to an end-use wholesale rate structure in May 1992. Kwh sales have been adjusted to reflect this change.
 -0- 7/30/93
 /CONTACT: John Moulton, Public Relations, 615-632-8048 or 615-632-6000, or William F. Malec in Knoxville, 615-632-3987, both of TVA/


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

MM-CM -- CH002 -- 7628 07/30/93 09:30 EDT
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Publication:PR Newswire
Date:Jul 30, 1993
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