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Warmer winter cuts TVA electricity sales

The TVA Watts Bar Nuclear Plant is photographed on Thursday, Oct. 22, 2015, near Spring City, Tenn., as Unit 2 begins producing electricity for the first time, 43 years after construction began at the site.
The TVA Watts Bar Nuclear Plant is photographed on Thursday, Oct. 22, 2015, near Spring City, Tenn., as Unit 2 begins producing electricity for the first time, 43 years after construction began at the site. The TVA Watts Bar Nuclear Plant is photographed on Thursday, Oct. 22, 2015, near Spring City, Tenn., as Unit 2 begins producing electricity for the first time, 43 years after construction began at the site.

By Dave Flessner 3 min read

Warmer temperatures this winter cost TVA $425 million of cold cash in the past six months as electricity sales declined so far this year compared with a colder 2015.

But the utility said today it still earned $281 million in net income in the first half of the current fiscal year after cutting its fuel and operating expenses.

In its quarterly financial report filed today with the U.S. Securities and Exchange Commission, TVA said electricity sales in the first half of TVA’s fiscal year fell by 7 percent from a year agp, cutting net income for the federal utility in half compared with the previous year.

TVA reported that it earned $281 million for the first six months of the fiscal year ending March 31, 2016 on sales of nearly $4.78 billion. A year ago, TVA reported net income of $577 million on sales of $5.2 billion.

The $296 million drop in net income was primarily due to the extremely mild winter experienced in TVA’s service territory compared to record-setting cold temperatures in 2015.