KNOXVILLE, Tenn (WVLT) -- The Tennessee Valley Authority reported a net loss of $17 million for the first quarter of 2008, in a filing with the Securities and Exchange Commission.
TVA blames onggoing struggles with drought conditions as one of the major factors.
The loss for the three months that ended Dec. 31, 2007 compares with a net income of $51 million reported during the first quarter of the previous fiscal year.
The 2008 fiscal year began Oct. 1, 2007 and ends Sept. 30, 2008.
“The amount of electricity that we are able to generate from our hydroelectric plants depends on a number of factors outside TVA’s control,” said TVA President and CEO Tom Kilgore. “When these factors are unfavorable, TVA must increase its reliance on more expensive generation and purchased power.”
TVA says rainfall for fiscal year 2008 through the end of January was
was 28 percent below normal, while runoff – the amount of water that reaches the river and reservoirs – was 67 percent below normal.
Kilgore says he expects those challenges to continue through the remainder of 2008.