TVA Reports Third Quarter Fiscal Year 2024 Financial Results

• Register now for today's 9:30 a.m. ET conference call discussing TVA's third quarter financial results.
• TVA reported $8.8 billion in total operating revenues through the first three quarters of 2024, as sales of electricity increased approximately 4% compared to the same period last year.
• TVA is a clean energy leader with nearly 60% of the agency's power supply coming from carbon-free sources in fiscal year 2024 - including nuclear, hydroelectric, solar and wind.
• TVA is focused on keeping electricity costs affordable. Our effective electricity rate through the first nine months of fiscal year 2024 is three percent lower than in the prior year despite a base rate adjustment.

KNOXVILLE, Tenn., July 30, 2024 /PRNewswire/ -- The Tennessee Valley Authority reported $8.8 billion in total operating revenues on 117 billion kilowatt-hours of electricity sales for the nine months ending on Jun. 30, 2024.  Total operating revenues increased 1.5% over the same period last year, primarily due to higher effective base rates and higher sales volume.  Sales of electricity increased approximately 4% compared to the same period of the prior year, primarily driven by a 50% increase in cooling degree days. 

"In 2023, GDP in TVA's service territory grew 0.5% faster than the national average, and we are focused on continuing to power that growth by providing affordable, reliable, and cleaner energy across the region," Jeff Lyash, TVA President and CEO, said. "As a clean energy leader, TVA's diverse power system continues to provide our region with a competitive advantage. The most recent summer heat wave is a perfect example as we worked with our partners to provide reliable power in extreme weather conditions – the same power that our communities rely on every single day."

Fuel and purchased power expense was $376 million lower in the nine months 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 nine months of fiscal year 2024, 57% of TVA's power supply was carbon-free — coming from nuclear, hydroelectric, solar and wind.

Operating and maintenance expenses increased by $109 million over the same period last year, driven primarily by increased labor and contract labor costs. Depreciation and amortization expense was $38 million lower than the same period last year, primarily due to the Bull Run Fossil Plant fully depreciating in the fourth quarter of 2023. 

"Despite the extreme weather this year, our customers continue to benefit from the diversity of TVA's power system," said John Thomas, TVA Chief Financial and Strategy Officer.  "TVA's effective electricity rate to customers through the first nine months was three percent lower than in the prior year despite the base rate we put in place for 2024."

Interest expense was $796 million for the nine months of fiscal year 2024, or $2 million higher than the same period last year.  TVA's net income was $627 million for the nine months ending on Jun. 30, 2024, $536 million higher than the same period of the prior year, primarily due to higher operating revenue and lower operating expenses.  

TVA's senior leadership team will host a conference call and webcast at 9:30 a.m. ET today to discuss the third quarter fiscal year 2024 results.  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 ending on Jun. 30, 2024. 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