KNOXVILLE, Tenn. (AP) -- The Tennessee Valley Authority on Friday reported a net income of $54 million in its second fiscal quarter, compared to a net loss of $94 million in the same quarter of 2012.
"We ended the second quarter 2013 essentially on plan," TVA President and CEO Bill Johnson said. "More normal weather had a favorable impact, as did employee efforts to reduce costs. We are focused on controllable factors that improve cost management and drive operational performance as we work to keep rates low. This is particularly important as we enter the summer months, when customer usage and sales typically are at the highest levels."
The company's operating revenues in the most recent quarter were $2.74 billion, compared with $2.60 billion in the second quarter of 2012.
Electricity sales to power distributors were up 9 percent in the most recent period, but were offset by a drop in demand by industrial customers. There were higher sales of excess generation to other utilities, which helped the bottom line.
TVA's total revenues have seen a 3 percent year-to-date increase compared to last year because of higher fuel-cost recovery through higher fuel rates and an increase in electricity sales. The higher fuel expenses were primarily due to more nuclear outages, resulting in more reliance on higher-cost electricity sources, particularly natural gas and coal-fired generation.
TVA is a corporate agency of the U.S. government that provides electricity to 9 million people in seven Southeastern states.