., Sept. 10, 2002 — TVA will spend more than $430 million on environmental improvements this year as part of the most aggressive clean air program in the country and will reduce its debt by $100 million — twice as much as projected — according to 2002 fiscal year financial projections presented to the TVA Board recently.
Meeting at TVA headquarters in Knoxville, Tenn., the Board approved a 2003 fiscal year budget of more than $7 billion. The 2003 budget includes another $528 million for environmental improvements, provides funds for the recovery of Browns Ferry Nuclear Plant Unit 1 and continues the trend of reduction.
No general increase in TVA rates will be required in 2003, marking the fifth straight year of stable rates.
“What TVA has accomplished in 2002 reflects our commitment to making sound business decisions to provide capital needed to improve air quality and enhance our generation and transmission systems while continuing the trend of debt reduction,” TVA Chairman Glenn McCullough Jr. said. “Our financial and operational achievements demonstrate the dedication and excellent work by the men and women of TVA and their success at controlling costs while providing reliable, affordable power supply for the Tennessee Valley region.”
TVA Chief Financial Officer David Smith reviewed TVA’s financial highlights for Fiscal Year 2002 and presented the 2003 budget to the Board.
Smith said TVA consistently met high electricity demands of customers with fewer interruptions through prudent operational and financial management and competitive and stable energy prices. He said TVA expects revenues of $6.8 billion in Fiscal Year 2002, which ends September 30.
Smith also said that TVA is on track to reduce debt by $100 million this fiscal year, for a total debt reduction of $2.4 billion since 1997. He said that interest expense is down $195 million from the 2001 fiscal year and is currently 21 percent of revenue — the lowest percentage in more than 20 years.
As part of TVA’s continued investment in clean air, Smith said that 11 systems to reduce nitrogen oxide emissions are operational, another 11 are under construction and six are being designed.
“TVA is fulfilling its historic mission to provide a reliable power supply for residents of the Valley while improving the environment for future generations,” TVA Director Skila Harris said.
“Focusing on excellence in our business performance helps the entire Tennessee Valley region because an affordable power supply is the engine that drives economic development, high quality job creation and a higher quality of life for everyone,” TVA Director Bill Baxter said.
TVA is the nation’s largest public power producer, and its power system is self-financed. TVA provides power to large industries and 158 power distributors that serve about 8.3 million consumers in seven southeastern states, and also serves large industries in the region.