The Tennessee Valley Authority reported their end of the fiscal year financial results during an investor call this week, showing that the TVA battled with the weather all year, even outside of extremes.
December brought unprecedented cold for the area with Winter Storm Elliot, which resulted in the highest 24-hhour electricity demand—and the highest winter peak demand—in TVA history. Then in the summer, the system also experienced some of highest summer demand in about 15 years, as there were peak loads of 31,000 megawatts or great for three consecutive days in August. CEO Jeff Lyash says they moved immediately to make sure their existing infrastructure is better prepared for future extreme temperature events.
Despite those extreme events, the TVA reports that sales of electricity were actually down, with Chief Financial and Strategy Officer John Thomas saying that’s in part due to all around mild temperatures the rest of the year.
The TVA reported $12.1 billion in total operating revenues on 157 billion kilowatt-hours of electricity sales. Total operating revenues were down 3.9 percent compared to the prior year. Meanwhile, operating and maintenance expenses increased by $386 million, likely caused by increases in labor costs, new programs and an increase in outage and contract labor expense.
With all that in mind, Thomas says the TVA is sitting in a good spot financially.
Looking to the future, Lyash says they have continued to support their communities, from creating new capacity, economic development and more.
TVA’s net income was $500 million for the fiscal year 2023, which was $608 million lower than the prior year due mainly to lower operating revenues and higher operating expenses.