VOL. 127 | NO. 89 | Monday, May 7, 2012
Warm Winter, Higher Expenses Lead to Drop in TVA Revenue
By RAY HENRY
ATLANTA (AP) — The Tennessee Valley Authority announced Friday it will seek to cut less than 1,000 positions as it faces a drop in electricity sales driven by an unusually warm winter and looming expenses, including an over-budget effort to finish building a nuclear reactor in Tennessee.
TVA officials reported that the electricity supplier brought in roughly $5.2 billion in revenue during the first half of its financial year ending in March, or nearly 11 percent less than the same period last year.
The electric supplier blamed the bulk of those losses on an unusually warm winter, which cut both the demand for electricity and the prices that TVA can charge for it. TVA officials stood by the board’s recent decision to approve adding $1.5 billion to $2 billion to the estimated cost of building a second nuclear reactor at its Watts Bar power plant in Spring City, Tenn.
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.