TVA reports $24 million loss for first quarter

TVA, the nation’s largest public utility, had a net income of $118 million for the same quarter a year ago and attributed the loss this year to higher fuel costs and lower power sales because of milder weather.

“Like other power companies around the nation, TVA is faced with rising costs for coal, natural gas and purchased power,” TVA director Skila Harris said in a statement. “For the six months ending March 31, TVA’s cost for fuel and purchased power increased more than 13 percent over the same period last year.”

Net income for the first six months was $66 million compared to $186 million for the first half of 2004.

The operating revenue for the second quarter was $1.84 billion, down 2.1 percent from a year ago. The quarter’s operating expenses were up 7.8 percent from 2004 to $1.56 billion.

“Operating expenses are expected to increase as the costs for coal and natural gas continue to escalate,” TVA director Bill Baxter said. “Based on current estimates, coal and transportation costs are projected to increase by 13 percent in the next two years, and natural gas prices are expected to increase 7 percent in 2006 and 2007. Future events could affect these estimates, but if they are on the mark, it will likely increase TVA’s costs for power it buys from other suppliers.”

The sales of electricity was down slightly from $41.9 million a year ago to $41.7 million for this quarter mainly because of a milder winter than 2004, officials said.

However, total sales for the six-month period increased from $81.3 last year to $83 million this year.

TVA provides electricity to 158 distributors serving about 8.5 million people in Tennessee and parts of Alabama, Mississippi, Kentucky, Georgia, North Carolina and Virginia.

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On the Net:

TVA: http://www.tva.gov/