The Tennessee Valley Authority last week reported $12.3 billion in total operating revenues for the 2024 Fiscal Year, as electricity sales increased around 4% compared to the prior year.
From September 2023 until this past September, more than 163 billion kilowatt-hours had been purchased and used in the seven-state service region, and leadership observed two major trends for the area.
+ Total operating revenues increased 2%, primarily due to higher effective base rates and higher sales volumes
+ And a 20% increase in cooling degree days drove up those sales
TVA President & CEO Jeff Lyash noted that extreme temperatures and natural disasters tested the grid, as well, but the network still delivered a record performance.
Furthermore, Lyash added that fuel and purchased power expenses were down $432 million, driven primarily by lower fuel and purchased power prices. More than 50% of TVA’s power supply was carbon-free in the last fiscal year — instead coming from nuclear, hydroelectric and other renewables, as opposed to fossil fuels.
That, he said, is only going to become a bigger margin.
Nuclear, he said, will not be the only focus of the future.
TVA also saw its effective electricity rate, or its average rate for all delivery and energy charges, fall 2% from the last year — timed well with the $8.9 billion and 10,000 new jobs that were announced over the Valley.
Operating and maintenance expenses did increase more than $260 million, mostly behind reported labor costs and extended outages.
TVA’s net income was $1.1 billion for FY24, more than $630 million higher than FY23 because of higher operating revenues and lower operating expenses.
John Thomas, TVA’s chief financial and strategy officer, said the keeping of low costs, the strategic borrowing and responsible raising of base rates kept the public power company in strong financial health and standing.
Lyash also confirmed that TVA — which does serve more than 10 million residents, businesses and industries — had its best safety performance in its history, with zero serious injuries reported on its jobs this year.
