Tennessee Valley Authority Reports $965 Million Net Income

The Tennessee Valley Authority reported a net income of $965 million for the first three quarters of the fiscal year, representing a $220 million increase over the previous period. Total operating revenue rose 3% year-over-year to $10 billion, a growth CFO Tom Rice attributed primarily to higher power sales to the data processing, web hosting, and related services sectors.

Rising natural gas and purchased power market prices increased expenses by $253 million. However, the utility offset some of these costs through a $76 million decrease in operating and maintenance expenses, which Rice noted was aided by Inflation Reduction Act tax credits for nuclear and hydroelectric improvements.

Interim President and CEO Mike Skaggs confirmed that the utility maintains a construction pipeline for new generation totaling 3,770 MW. This expansion includes new gas plants scheduled for commissioning at the Cumberland and Kingston sites, as well as planned units in Mississippi and Memphis.