RAINSVILLE, Ala. -- Despite a $727 million drop in power sales in the past year, the Tennessee Valley Authority still managed to cut its wholesale rates and end fiscal 2012 with a net income of $60 million .
TVA Chief Financial Officer John Thomas said today that cheaper fuel and cost cuts adopted by TVA this year helped cut TVA's wholesale rates by 10 percent in fiscal 2012 compared with the previous year. The drop in costs, however, was offset, in part, by a decline in electricity usage due to the mild weather and economy.
'"It was a challenging year because of the weather and the sluggishness of the economy," Thomas told the TVA board today. "But lower commodity prices, managed actions taken by TVA to conserve cash helped our whole rates 10 percent below what we planned."