Tennessee Valley Authority swung back to profitability in the first quarter of fiscal year 2017, reporting net income of $102 million thanks to higher sales of electricity. The company posted a net loss of $37 million in the prior-year period.
Revenues from electricity sales for the most recent quarter grew to $2.51 billion from $2.25 billion a year ago, while total operating revenues increased to $2.55 billion from $2.28 billion.
Due to higher fuel costs, operating expenses also increased to $2.12 billion in the fiscal 2017 first quarter, from $2.05 billion in the corresponding period in fiscal 2016.
"So, while the energy costs of producing electricity were not as favorable, the higher revenues, along with the efficiencies we've been able to build into the business, helped us improve the bottom line," TVA President and CEO Bill Johnson said in reference to extended drought conditions that have reduced the utility's hydroelectric generation output.