Attached files
| file | filename |
|---|---|
| 8-K - 8-K - Tennessee Valley Authority | a8-kboardmeetingxxnovember.htm |
Financial Performance
Update
JOHN THOMAS
Executive Vice President
and Chief Financial Officer
EXHIBIT 99.1
Fiscal Year 2016
Net Income: $1,233M
$641M more than budget and $122M above last year
Operating Revenues: Effective rate of 6.7¢ v. 6.9¢ last year
Favorable fuel cost results in lower customer rates
Operating & Maintenance Expenses: $77M favorable to budget
Reduced O&M over $800M
Interest Expense: $229M favorable to budget
Total Financing Obligations (TFO): $776M less than budget
Additional AFUDC recognition and lower debt rates
BOARD MEETING | 2
| 3
Warm Winter – Long, Hot Summer
BOARD MEETING
Fiscal years 1962 through 2016 (ranked low to high). FY16 heating degree days adjusted for leap year for comparison purposes
Summary Income Statement
$641M favorable due to lower expenses, despite unfavorable winter weather
FY 2016 FY 2015
$ million
Actual Budget
Variance
Actual
'16 v '15
Fav/(Unfav) Fav/(Unfav)
Operating Revenue $ 10,616 $ 10,754 $ (138) $ 11,003 $ (387)
Fuel & Purchased Power 3,090 3,406 316 3,394 304
Total O&M Expense 2,842 2,919 77 2,838 (4)
Taxes, Depreciation, Other 2,315 2,472 157 2,527 212.
Interest 1,136 1,365 229 1,133 (3)
Net Income (Loss) $ 1,233 $ 592 $ 641 $ 1,111 $ 122
BOARD MEETING | 4
Summary Cash Flow Statement
FY 2016 FY 2015
$ million Actual Budget Variance Actual '16 v '15
Cash Flow from Operating Activities $ 3,042 $ 2,632 $ 410 $ 3,315 $ (273)
Cash Flow used in Investing Activities (3,113) (3,176) 63 (3,585) 472
Cash Flow from Financing Activities 71 544 (473) 70 1
Net Change in Cash & Cash
Equivalents
- - - (200) 200
Ending Cash & Short-Term Investments 300 300 - 300 -
Ending Debt and Financing Obligations $ 26,202 $ 26,978 $ 776 $ 26,120 $ (82)
Statutory Debt 24,175 24,951 776 23,878 (297)
BOARD MEETING | 5
TFOs were $776M favorable to budget, reflecting $392M of favorability FY16
FY 2016 Summary (Results v. Plan)
Lower Rates for our Customers
Lower Expenses
Lower Debt Balance
Higher Net Income
BOARD MEETING | 6
Financial Track Record
BOARD MEETING | 7
