KNOXVILLE — The Tennessee Valley Authority reported $5.9 billion in total operating revenues on 78 billion kilowatt-hours of electricity sales for the six months ended March 31, 2024. Total operating revenues decreased 1 percent over the same period last year, primarily due to a decrease in fuel cost recovery revenue, driven by lower fuel and purchased power prices. Sales of electricity increased approximately 3 percent compared to the same period of the prior year, primarily driven by an increase in heating degree days.
“TVA is a national leader in carbon reduction, but we aren’t satisfied,” said Jeff Lyash, TVA President and CEO. “We are committed to a clean energy transition, while maintaining our focus on delivering affordable, reliable, and resilient energy. Our investments in reliability and resiliency paid dividends last quarter as, during Winter Storm Heather, TVA successfully met the highest recorded peak demand for power in our history.”
Fuel and purchased power expense was $331 million lower in the first half 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 six months of fiscal year 2024, 58 percent of TVA’s power supply was carbon-free — coming from nuclear, hydroelectric and other renewables.
Operating and maintenance expense increased by $106 million over the same period last year, driven primarily by increased labor and contract labor costs. Depreciation and amortization expense was $32 million lower than the same period last year, primarily due to the Bull Run Fossil Plant fully depreciating in the fourth quarter of 2023.
“Our customers continue to benefit from TVA’s low effective rates,” said John Thomas, TVA Chief Financial and Strategy Officer. “TVA’s strong financial results and diverse power system are helping keep the cost of power low today, even as we make substantial investments to ensure reliable, affordable power and build the energy system of the future.”
Interest expense was $528 million for the first half of fiscal year 2024, or $2 million lower than the same period last year. TVA’s net income was $434 million for the six months ended March 31, 2024, $285 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 at 9:30 a.m. today to discuss the second 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 ended March 31, 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.
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