TVA Reports Third Quarter Fiscal Year 2023 Financial Results
Key Points - | |
• 4th consecutive year of no increase in TVA's base rate - helping to keep customers' bills low. | |
• TVA has returned | |
• TVA has one of the nation's largest, most diverse, and clean power systems which helps keep rates stable despite higher fuel prices. | |
• | |
• Year-to-date power sales were |
Total operating revenues increased
"We have been focused this summer on using TVA's diverse power system to keep costs low and meet power demand as several heat waves have moved through the Tennessee Valley region," said Jeff Lyash, TVA President and CEO. "And while we are focused each day on providing power that is affordable, reliable, and resilient, TVA is also actively planning and investing in the next generation of technologies to ensure that we maintain our region and nation's energy security."
Fuel and purchased power expense was
"TVA's customers continue to benefit from our stable base rates in 2023, which are unchanged for the fourth consecutive year," said John Thomas, TVA Chief Financial and Strategy Officer. "In addition to stable base rates, TVA's strong performance has enabled us to continue providing extended recovery credits to all customers that have totaled
Operating and maintenance expense increased by
"We have been responsibly and methodically retiring TVA's coal-fired assets as they reach the end of their service lives and have now retired or scheduled for retirement about 75 percent of our coal-fired fleet," Lyash said. "The higher depreciation related expenses are a recognition of those retirement decisions."
Interest expense was only
Additional highlights from TVA's third quarter fiscal year 2023:
- Credits from the
2.5% monthly base rate Pandemic Recovery Credit totaled for the nine months ended Jun. 30, 2023. This credit to all customers, which TVA extended through 2023, is expected to total approximately$158 million in 2023, helping local communities with ongoing recovery efforts. Recovery-related credits to customers since the pandemic now total$230 million .$607 million - TVA is in the process of doing detailed reviews of solar energy and storage project bids under its clean energy request for proposal (RFP) for up to 5,000 megawatts of carbon-free power. Projects selected will help get closer to meeting TVA's aspiration of adding 10,000 megawatts of solar by 2035.
- Colbert combustion turbine units 9-10 commenced pre-commercial plant operations in June 2023 and unit 11 in early July 2023. All units became operational on July 25, 2023.
- TVA is preparing for its next Integrated Resource Plan (IRP), which is expected to be completed in calendar year 2024. The IRP will serve as a guide to how TVA can best meet energy demand in the coming decades.
- Progress is being made on design work under the technology collaboration agreement put in place earlier this year between TVA, GE Hitachi Nuclear Energy, Ontario Power Generation, and Synthos Green Energy, to advance the global deployment of the GE-Hitachi BWRX-300 small modular reactor technology.
Selected Financial Data – Nine Months Ended June 30 | ||
Sales, Revenues & Expenses | 2023 | 2022 |
Sales (millions of kWh) | 112,685 | 117,547 |
Operating Revenues ($ millions) | $ 8,672 | $ 8,437 |
Fuel & Purchased Power Expense | 3,079 | 2,771 |
Operating & Maintenance Expense | 2,546 | 2,269 |
Interest Expense | 794 | 791 |
Net Income | 91 | 476 |
Net Cash Provided by / (Used in) ($ millions) | ||
Operating Activities | $ 1,776 | $ 1,834 |
Investing Activities | (2,233) | (1,978) |
Financing Activities | 457 | 147 |
TVA's executive management team will host a conference call and webcast today to discuss third quarter fiscal year 2023 results at 9:30 a.m. ET. Please click here to pre-register. 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 Jun. 30, 2023. 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 the nation's largest public power supplier, delivering energy to 10 million people across seven southeastern states. TVA was established 90 years ago to serve this region and the nation by developing innovative solutions to solve complex challenges. TVA's unique mission focuses on energy, environmental stewardship, and economic development. With one of the largest, most diverse, and cleanest energy systems – including nuclear, hydro, solar, gas, and advanced technologies – TVA is a leader in our nation's drive toward a clean energy future.
TVA is a corporate agency of
Media Contact: | Melissa Greene, TVA Media Relations, |
Investor Relations: | Tammy |
Josh Carlon, | |
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SOURCE Tennessee Valley Authority