TVA Reports First Quarter Fiscal Year 2024 Financial Results

• TVA's energy system is one of the nation's most diverse, affordable, reliable, and resilient.
• Total operating revenues decreased 8%, primarily due to a decrease in fuel cost recovery revenue, driven by lower fuel rates.
• TVA is a national leader -- 58% of TVA's power supply came from clean energy sources - including nuclear, hydroelectric, and renewables.
• TVA's senior leadership team will host a conference call and webcast at 9:30 a.m. ET today to discuss the first quarter fiscal year 2024 results. Please click here to pre-register.

KNOXVILLE, Tenn., Jan. 30, 2024 /PRNewswire/ -- The Tennessee Valley Authority reported $2.8 billion in total operating revenues on 37 billion kilowatt-hours of electricity sales for the three months of fiscal year 2024 ending Dec. 31, 2023. Total operating revenues decreased 8% over the same period last year, primarily due to a decrease in fuel cost recovery revenue, driven by lower fuel rates.  Sales of electricity decreased approximately 2% compared to the same period of the prior year, driven by overall milder weather. 

"Meeting this month's all-time record power demand illustrates that TVA's power system is one of the most diverse, affordable, reliable and resilient electric grids in the nation," said Jeff Lyash, TVA President and CEO. "Meeting that demand took a village. I am extraordinarily proud that, working together, TVA and our local power company (LPC) partners kept everyone safe and warm.

"Meeting an historic demand for electricity is a challenge, but changes in the region and across the nation intensify this task," Lyash continued. "In the last three months alone, TVA invested nearly $123 million to enhance reliability and resiliency at our coal, gas, and hydro facilities. We've also committed to invest $15 billion in our system over the next three years, deliver 10,000 megawatts of solar by 2035 and invest $1.5 billion over the next 4 years to expand energy efficiency and demand response programs. As we build this diverse set of assets to meet growing demand, there is a range of strongly held views that advocate for one technology over another: only renewables; just energy efficiency; hydrogen over natural gas; continue with coal; why build this plant in my community. The expression of these views is healthy and should always be part of the process.  I believe that being inclusive and listening to all voices contributes to good decision-making. And keeping our customers and stakeholders transparently informed and engaged throughout the process is vital."

Fuel and purchased power expense was $251 million lower in the first quarter of fiscal year 2024 over the same period of the prior year, primarily due to lower effective fuel rates and lower purchased power market prices.  For the first three months of fiscal year 2024, 58% of TVA's power supply was carbon-free - coming from nuclear, hydroelectric and other renewables.

"TVA and our 153 local power company partners consistently provide some of the nation's lowest priced power which fuels significant economic growth across the region," said John Thomas, TVA Chief Financial and Strategy Officer. "As our results continue to show, TVA is maintaining low rates for our customers today, even as we invest substantially to make our system more reliable, expand our capacity and add cleaner energy resources for the future."

Operating and maintenance expense increased by $40 million over the same period last year, driven primarily by increased labor and contract labor costs. Depreciation and amortization expense decreased $12 million primarily due to the Bull Run Fossil Plant fully depreciating in the fourth quarter of 2023. 

TVA's net income was $127 million for the first quarter of fiscal year 2024, $26 million higher than the same period of the prior year, primarily due to lower operating expenses.  

TVA's senior leadership team will host a conference call and webcast today to discuss the first quarter fiscal year 2024 results at 9:30 a.m. ET.  Please click here to pre-register. A webcast replay and transcript will also be available for one year on TVA's website at https://www.tva.com/investors

TVA's quarterly report on Form 10-Q provides additional financial, operational, and descriptive information, including unaudited financial statements for the quarter ended Dec. 31, 2023. TVA's quarterly report and other SEC reports are available without charge on TVA's website at http://www.tva.com/investors, on the SEC's website at http://www.sec.gov, or by calling TVA toll free at 888-882-4975.               

This release may contain forward-looking statements relating to future events and future performance. Although TVA believes that the assumptions underlying these statements are reasonable, numerous factors could cause actual results to differ materially from those in the forward-looking statements. Please refer to TVA's most recent annual report on Form 10-K and quarterly report on Form 10-Q for a discussion of factors that could cause actual results to differ from those in the forward-looking statements.

The Tennessee Valley Authority is the nation's largest public power supplier, delivering energy to 10 million people across seven southeastern states. TVA was established 90 years ago to serve this region and the nation by developing innovative solutions to solve complex challenges. TVA's unique mission focuses on energy, environmental stewardship, and economic development. With one of the largest, most diverse, and cleanest energy systems – including nuclear, hydro, solar, gas, and advanced technologies – TVA is a leader in our nation's drive toward a clean energy future.

TVA is a corporate agency of the United States, receiving no taxpayer funding, deriving virtually all of its revenues from sales of electricity. In addition to operating and investing its revenues in its electric system, TVA provides flood control, navigation, and land management for the Tennessee River system, and assists local power companies and state and local governments with economic development and job creation. Learn more at Energy System of the Future.

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SOURCE Tennessee Valley Authority