TVA reports $12 million loss in quarter due to drop in power sales
Milder temperatures and economic growth across the Tennessee Valley lowered TVA power sales this spring by 5 percent below year-ago levels, generating a $12 million quarterly loss and pushing the federal utility to pare expenses again this year.
The Tennessee Valley Authority reported today a net loss of $12 million on revenues of $2.6 billion in the fiscal quarter ended June 30. In the same period a year ago, TVA lost $23 million on revenues of $2.74 billion.
For the first nine months of its fiscal year, TVA said it lost $203 million on sales of $7.92 billion. In the same period of fiscal 2012, TVA $290 million on sales of $7.95 billion.
In response to such losses, TVA implemented a "diet and exercise program" last year and is cutting its staff this year.In a filing today with the U.S. Securities and Exchange Commission, TVA officials said they "continue to focus on reducing costs in response to lower electricity sales. TVA has asked for voluntary resignations and retirements in coal division and some other utility departments.
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