TVA profits up with lower fuel costs, expenses - WRCBtv.com | Chattanooga News, Weather & Sports

TVA profits up with lower fuel costs, expenses

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CHATTANOOGA, TN (WRCB) -

The Tennessee Valley Authority reported Friday a net income of $577 million for the first six months of fiscal 2015, a $349 million increase compared with the same period last year.

Operating expenses through the second quarter were $392 million lower than the same time last year, primarily because of lower fuel and purchased power expenses, and lower operating and maintenance costs, the agency said in a news release.

Even with less revenue, the agency showed an increase in profits.

“It takes a collective effort by all of our employees to produce the sort of results we have seen so far this year,” TVA President and CEO Bill Johnson said.

The TVA's total sales of electricity for the first half of the fiscal year were down 1.5% compared the same period last year.

A new all-time demand record for the month of February when temperatures averaged 7 degrees across its service area the morning of Feb. 19 and peak power demand exceeded 32,000 megawatts.

“This winter tested the resiliency of our system,” Johnson said. “Through our balanced energy portfolio, the dedication of our employees and the cooperation of our customers, TVA again met a period of record demand safely and reliably. This was truly a team effort.”

During the second quarter, the TVA board of directors approved a power purchase agreement with a planned 80-megawatt, utility-scale solar farm in Alabama and the acquisition of a 700-megawatt, combined-cycle gas plant in Mississippi, which was completed in April.

The Tennessee Valley Authority serves 9 million people in parts of seven southeastern states.

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