TVA Reports Fiscal Year 2022 Financial Results
Tennessee Valley Authority (TVA) reported a record $12.5 billion in operating revenues for fiscal year 2022, marking a 19% increase year-over-year. Electricity sales rose by 3% due to regional demand growth. TVA maintained flat base power rates for a third consecutive year and returned $228 million in pandemic credits to customers. Total debt decreased for the sixth consecutive year, reaching its lowest level in 35 years. Despite higher operating expenses, TVA's net income was $1.1 billion, though down $404 million from the previous year.
- Operating revenues reached $12.5 billion, a 19% increase.
- Electricity sales increased by 3%, driven by regional demand growth.
- Flat base power rates maintained for the third consecutive year.
- Debt reduced for six consecutive years, lowest in 35 years.
- Net income of $1.1 billion, despite increased operating expenses.
- Net income decreased by $404 million from the previous year.
- Operating and maintenance expenses rose by $96 million.
- Fuel and purchased power expenses increased by $1.8 billion due to higher market rates.
Key Points
- Power sales were up
3% due in part to demand growth in the region. - TVA kept base power rates flat for the 3rd consecutive year in 2022, and returned
$228 million in pandemic credits to customers, helping keep power rates low. - TVA's diversified power system continued to keep customer rates low despite higher fuel prices, with
52% of TVA's power supply coming from nuclear, hydroelectric and renewables. - TVA reduced debt for the 6th consecutive year, with debt at the lowest level in 35 years.
KNOXVILLE, Tenn., Nov. 15, 2022 /PRNewswire/ -- The Tennessee Valley Authority reported
Sales of electricity increased approximately
"TVA, in partnership with our local power company customers, accomplished many things in 2022, including maintaining industry-leading reliability during challenging conditions this summer while keeping energy costs among the lowest in the nation," said Jeff Lyash, TVA president and CEO.
"This was our third year holding base rates flat despite growing inflation pressures, and we will continue that stable trend into a fourth year in 2023," said Lyash. "In addition, TVA's continuing financial strength and stability allows us to return hundreds of millions of dollars in rate credits back to our customers to support local communities."
Fuel and purchased power expense was
"TVA's diverse generation system and proactive fuel purchasing practices translate into electricity rates in the areas served by TVA and our local power company partners that are among the lowest in the nation," said TVA's Chief Financial and Strategy Officer John Thomas. "While natural gas prices nearly doubled over the past year, the effective rate paid by TVA customers was only
Operating and maintenance expense increased by
"We understand the importance of a clean energy future, which is why TVA is executing a defined plan that we laid out in our Strategic Intent and Guiding Principles document, proactively taking a national leadership role in decarbonization," said Lyash.
"Along with significant investments in our existing carbon-free generation, such as Watts Bar Unit 2 steam generator replacement this year, we issued an industry-leading request for proposals for 5,000 megawatts of carbon-free energy to be available by 2029 and signed partnerships with Ontario Power Generation and GE-Hitachi to pursue advanced nuclear technologies."
Interest expense was
"After decreasing obligations for six consecutive years, we have reduced debt by over
TVA's net income was
Additional highlights from TVA's fiscal year 2022 include:
- Credits from the
2.5% monthly base rate Pandemic Recovery Credit available to all TVA customers for 2022 totaled$228 million , which is money that stayed in local communities to help with recovery efforts. In August, TVA took advantage of its continued strong financial position to extend the credits for 2023, which is expected to total about$230 million . - As of November 14, 2022, 147 of 153 local power companies have entered 20-year agreements with TVA. Bill credits to 20-year partners totaled
$199 million for the year ended Sep. 30, 2022. - TVA published its first ever Diversity, Equity, Inclusion and Accessibility (DEIA) report, which highlights TVA's progress and key programs to promote DEIA within its workforce and across the seven states it serves.
- In May and June 2022, TVA experienced multiple record-setting peak and daily energy records, and the TVA power system was able to deliver energy reliably through these demands.
- Recently released data from the U.S. Department of Energy, Energy Information Administration shows that Tennessee was the number one state for reduction of carbon intensity from 2016-2020, due in large part to TVA's coal retirements and additional nuclear and solar additions.
- In July, TVA issued a carbon-free Request for Proposals (RFP) for up to 5,000 megawatts of carbon-free and renewable energy projects – believed to be the largest such request of its kind.
- TVA entered an agreement with GE-Hitachi and Ontario Power Generation to support TVA's planning and preliminary licensing for a potential deployment of a small modular reactor at the Clinch River Nuclear site and provide additional information needed as TVA continues to analyze the viability of advanced nuclear technology. Such collaborations help reduce the financial risk that comes from development of innovative technology, as well as future deployment costs.
- The TVA Board approved a program for up to
$200 million to help develop new nuclear technologies. - Watts Bar Unit 2 returned to service in July 2022 after replacing all four of its original steam generators with more efficient models that added about 20 megawatts of additional energy that will support decades of additional reliable, carbon-free generation in the Tennessee Valley.
- Unit 3 at TVA's Browns Ferry Nuclear Plant ran for 690 consecutive days and produced more than 20 billion kilowatt-hours of carbon-free electricity prior to its scheduled refueling and maintenance outage earlier this year - enough electricity to power the average home for about 1.8 million years.
- The 7-year,
$326 million Boone Dam remediation project was completed on time and under budget. - TVA's economic development efforts, combined with TVA's reliable, resilient, low-cost, and cleaner energy, continue to help attract and encourage the expansion of business and industries in the Tennessee Valley, with over
$10.2 billion in proposed investments and approximately 66,500 jobs expected to be created or retained in 2022.
Selected Financial Data – Twelve Months Ended September 30 | ||
Sales, Revenues & Expenses | 2022 | 2021 |
Sales (millions of kWh) | 162,608 | 157,353 |
Operating Revenues ($ millions) | $ 12,540 | $ 10,503 |
Fuel & Purchased Power Expense | 4,488 | 2,721 |
Operating & Maintenance Expense | 2,986 | 2,890 |
Interest Expense | 1,052 | 1,088 |
Net Income | 1,108 | 1,512 |
Net Cash Provided by / (Used in) ($ millions) | ||
Operating Activities | $ 2,948 | $ 3,256 |
Investing Activities | (2,663) | (2,338) |
Financing Activities | (283) | (921) |
TVA's executive management team will host a conference call to discuss fiscal year 2022 results at 9:30 a.m. ET, on Tuesday, Nov. 15. 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, by calling toll free 877-344-7529 in the United States or 412-317-0088 outside the United States and using the conference number 1899629. A webcast replay and transcript will also be available for one year on TVA's website at http://www.tva.com/investors.
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, 2022. TVA's annual 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.
Media Contact: | Jim Hopson, Knoxville, 865-632-8860 |
TVA Media Relations, Knoxville, 865-632-6000 | |
Investor Relations: | Tammy Wilson, Knoxville, 865-632-3366 or 888-882-4975 |
Josh Carlon, Knoxville, 865-632-4133 or 888-882-4975 | |
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SOURCE Tennessee Valley Authority
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