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TVA sales up, but still loses money in quarter

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CHATTANOOGA, TN (Times Free Press) -- Warmer temperatures this spring boosted electricity sales for the Tennessee Valley Authority by 6 percent during the past quarter, but the federal utility continued to lose money in the three months ended June 30.

TVA reported today that it had a $23 million net loss on sales of more than $2.7 billion in the spring quarter. The losses were less than 10 percent as much as a year ago, however, when TVA lost $230 million on sales of about $2.6 billion.

"The hot weather is causing higher power bills for our customers, but lower fuel costs, which make up a component of their bills, have helped to keep rates 4 percent lower this year as compared to last year," TVA Chief Financial Officer John Thomas said in a statement today.

In June, TVA had four straight days of temperature above 100 degrees, which helped boost electricity sales but also increased TVA's operating expenses, Thomas said.

Read more from our news partners at the Chattanooga Times Free Press.

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