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OMB strategic review of TVA nearly complete, TVA CEO says


From the February 6, 2014 issue of Public Power Daily

Originally published February 6, 2014

By Robert Varela
Editorial Director
All the analytical work is done on a strategic review of the Tennessee Valley Authority—including possible privatization—proposed by the Obama administration in its 2013 budget proposal, TVA President and CEO Bill Johnson said Feb. 4. "I hope and expect in the next short little while we get to some conclusion," he said in a conference call on the federal utility’s financial results for the first quarter of 2014. How the review is concluded will be up to the Office of Management and Budget, Johnson said, although he expects TVA to be able to review any reports coming out of the review.

TVA financial results improve, though still in the red
TVA reported a $67 million net loss on operating revenues of $2.38 billion in the first quarter of 2014, an improvement over a $245 million loss on revenues of $2.58 billion for the same period last year. "Our efforts to keep rates low and reliability high for our customers by working more efficiently helped to offset lower sales and revenues reported in the first quarter of 2014," Johnson said.

Compared with last year, operating and maintenance expenses were down $112 million, or 12 percent, in the first quarter of 2014 and total operating expenses were 14 percent lower. Sales to local utilities were 7 percent higher as a result of cooler weather than a year ago and some growth in electric demand, TVA said, but total electricity sales were down 3 percent, largely because of the loss of TVA’s largest industrial customer, USEC Inc., the uranium enrichment company. 
 

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