OXFORD, Miss. -Despite a drop in power sales, the Tennessee Valley Authority boosted its net income in fiscal 2013.
TVA said today it earned $271 million on sales of nearly $11 billion in the fiscal year ended Sept. 30. In fiscal 2012, TVA earned $211 million on sales of $11.22 billion.
TVA Chief Financial Officer John Thomas told the TVA board here today that power sales were 3.6 percent below budget and 2.8 percent below fiscal 2012. Thomas said the drop in sales was offset by the first phase of a 3-year effort by TVA to cut its operations and maintenance expenses by $500 million and by the bounty of Mother Nature with above-average rains helping to generate a record amount of hydroelectric power - TVA's cheapest power source.
"You don't often see a rise in income when you see a decline in sales," said TVA Director Peter Mahurin, the chairman of Hilliard Lyons Financial who chairs TVA's audit and finance committee.
"It's a very, very positive achievement."
The decline in TVA sales in the past year stemmed from milder weather, which reduced heating and cooling consumption by electric users and by an unexpected 8 percent drop in sales to major industrial customers, including the shut down in May of TVA's largest customer -- the U.S.. Enrichment Corp. in Paducah, Ky.
Thomas said TVA ended the year with $1.6 billion in cash.