TVA reports $15 million loss in third quarter

The nation’s largest public utility said operating expenses reached $1.5 billion for the three-month period ending June 30, a 6 percent increase over the same period the year before.

The $15 million loss came on $1.8 billion in revenues, which were up $24 million over the same quarter a year ago that yielded a $105 million gain.

The self-financing government corporation last month adopted a 7.5 percent electric rate increase — the first since 2003 — specifically because of rising costs of natural gas and coal for its power plants.

That rate increase, taking effect Oct. 1, will add $3.50 to $6.50 a month to the typical residential power bill. TVA provides electricity to about 8.5 million consumers in Tennessee, Kentucky, Alabama, Mississippi, Georgia, North Carolina and Virginia.

TVA is still operating in the black for the first nine months of 2005, showing a profit of $51 million so far this year, compared with $291 million for the same period a year ago.

The agency said revenue for the first three quarters exceeded $5.5 billion, an increase of $41 million over the same period last year — reflecting a 1.5 percent increase in power sales.

“An increase in operating revenues coupled with a reduction of $42 million in net interest expense helped offset the higher operating expenses, which were primarily driven by the rising costs of coal, natural gas and purchased power,” TVA Chairman Bill Baxter said in a statement.

“Our power system performed exceptionally well during this period, delivering a record amount of power to our customers during an early heat wave in June as the region’s growing economy continues to drive the need for electricity,” he said.

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TVA: http://www.tva.gov