Growth in sales and diversified resources help give TVA the best financial health “for decades”

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Strong points

Into TVA power index up by more than 52%

Increased demand from local and industrial power companies

Low-cost nuclear power plants and renewables offset gas increases

Tennessee Valley Authority electricity sales increased 4% for the fiscal year ended Sept. 30 and 2.1% for the fourth quarter of the fiscal year, with most of it produced with zero emissions, data shows published during the call for the annual results of the public electricity agency.

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In a year marked by soaring natural gas prices, TVA’s heavy dependence on renewable energies with marginal costs close to zero and nuclear energy with very low fuel costs and in The decline has helped the public electricity supplier achieve what President and CEO Jeff Lyash called “the best financial health we’ve had in decades.”

“After the impacts of COVID-19 seen the previous year, 2021 has been a solid year for TVA and the 10 million people that TVA serves,” Lyash said. “TVA’s reliable, low-cost electricity and its economic development efforts have continued to play a key role in helping our region recover from the pandemic, while our strong financial results help keep electricity prices down. a low level as we invest in the sustainability and resilience of our electricity system. . “

The monthly average bilateral Into TVA daily peak index jumped more than 52% to $ 36.55 / MWh in the 12 months ending September 30, compared to the same period of 2019-2020, according to the base of S&P Global Platts price data.

TVA’s electricity sales totaled 157.4 TWh during the last fiscal year, compared to less than 151.3 TWh the previous fiscal year. As a federal agency, TVA operates for a fiscal year that begins on October 1. For the most recent quarter, TVA sold 43.7 TWh, up 2.1% from 42.9 TWh for the comparable period of 2020.

“The value of diversity”

“Respond to such demand and reliability [challenges] highlights the strength of our diverse generation mix, ”said Lyash. “The value of diversity shines during times of rising industry prices.

Non-emitting resources provided the bulk of TVA’s electricity during the last financial year, mainly:

  • Nuclear: 41%
  • Hydroelectric: 10%
  • Purchased renewable: 5%

The average cost of nuclear fuel per MWh decreased 5.2% to about $ 5.50 last year, compared to 2019-2020. The average annual cost of coal-fired electricity generation fell 8.6% to $ 24.60 / MWh, but a 28.6% increase in the average annual gas-fired electricity cost to $ 25.20 / MWh increased TVA’s weighted average fuel cost by 8.3% to $ 14.40 / MWh.

Gas-fired power plants provided 21% of TVA’s electricity in the most recent fiscal year, while coal-fired power plants provided 15% and purchased non-renewable electricity provided 8%. TVA did not provide comparable data for 2020.

TVA reported net income of $ 1.5 billion on operating revenue of $ 10.5 billion for the fiscal year ending September 30, compared to net income of less than $ 1.4 billion out of 10.2 billion for the previous year.

For the most recent quarter, documents filed with the TVA Securities Commission show the federal provider made a net profit of $ 603 million on operating revenues of $ 3.2 billion, compared to net profit of $ 700 million on operating income of $ 3 billion in the same period of 2020.

Industrial and utility demand

Industries directly served by TVA provided the biggest boost to sales by the federal electricity supplier, up 11.1% to 18.8 TWh for the 12 months ended September 20 and up 17.6% to 4.9 TWh during the last quarter.

Local power companies, to which TVA sold 86.7% of its electricity in the last fiscal year, recorded strong annual growth of 3.2% for the fiscal year, but quarterly year-over-year growth. the other was more modest by 2.1%.

The normal growth in energy demand that could arise due to economic or demographic changes has often been offset by energy efficiency gains, Lyash said, but extraordinary trends have given some impetus to a net increase in energy efficiency. demand for electricity.

“We are now seeing demand from data centers and manufacturing shift to the VAT area, and we are starting to see a trend of positive load growth,” Lyash said on the earnings conference call. Lyash warned, however, that “we’ll need to see a few more data points” on annual growth before TVA has to consider revising its production capacity plans.

In a year with extreme conditions – record heatwaves, wildfires, brutal cold hurricanes – that resulted in power outages in other areas, Lyash celebrated reliability at 99.999% VAT.

“TVA’s electricity grid has remained stable despite the extreme cold that negatively impacted much of the country last winter, and while the heat waves this summer caused one of the demands for electricity. the highest in a decade for our service area, with multiple peak loads exceeding 30,000 MW, ”says Lyash.


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