TVA loses $240 million in fiscal third quarter

TVA loses $240 million in fiscal third quarter

August 11th, 2011 in Local - Breaking News

The TVA headquarters building is located in downtown Chattanooga.

Photo by Angela Lewis/Times Free Press.

The tornadoes that ripped through the Tennessee Valley in April cost TVA an estimated $139 million in equipment and power generation losses, TVA announced today.

Combined with lower electricity sales and higher environmental control expenses, TVA reported a $240 million loss in the three months ended June 30, according to a filing late today with the Securities and Exchange Commission. In the same period a year ago, TVA reported net income of $199 million.

The losses during TVA's most recent quarter left TVA with a net loss during the past nine months of $35 million. A year ago, TVA earned $779 million during the same nine months.

"Expenses related to repair of damage caused by storms, higher operating and maintenance expenses related to outages at generating plants, the agreements with the Environmental Protection Agency (to shut down aging coal plants) and increases in employee benefit expenses all contributed to lower net income," TVA Chief Financial Officer John Thomas said in TVA's financial report.

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