May 23, 2012
KNOXVILLE, Tenn. (WVLT) -- The mild weather this winter has brought good news for everyone in East Tennessee. In a statement released on Friday, the Tennessee Valley Authority blamed the relatively pleasant weather for decline in electricity sales and revenue in the first-quarter of its fiscal year, which ended on Dec. 31, 2011.
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Electricity sales were off by five percent, or $100 million, the company reported, helping push revenues down nine percent, to $2.6 billion, over the same period last year, which the company noted included the fifth coldest month on record in the Tennessee Valley, December 2010.
“Weather fluctuations are not something new for TVA, but these uncontrollable conditions impact TVA’s financial results,” Chief Financial Officer John Thomas said. “TVA can, however, make adjustments in its operations to mitigate some of the impact of lower sales results"
Recovery of fuel costs comprised another $102 million of the total $260 million revenues dropped last quarter versus the same time last year. TVA blamed lower commodity prices and the use of lower-cost resources, including hydroelectric power.
The company did note it took steps for the long-term, working to retire older, less-efficient assets with low-cost, cleaner energy.
“During the first quarter of 2012, TVA remained focused on following the new path forward for its energy future,” said President and CEO Tom Kilgore. “Guided by the Integrated Resource Plan, we are working to achieve our vision while maintaining TVA’s record for reliable service, safe operations and competitive rates.”
