Are TVA reports to SEC useless?
February 2, 2011
Quick off the blocks, (unusual for TVA) in a paid press release TVA tries to justify, let’s say blame, increased operating costs on the weather. Remember how TVA tried to blame the weather on the Kingston disaster? On “slimes”?
In their first quarter financial report to the Securities and Exchange Commission, October, November and December of 2010, TVA says, “Unseasonably cold temperatures in December led to increased demand for electricity from the Tennessee Valley Authority.” Wait until next quarter’s report.
To TVA, almost everything is a surprise including how cold it gets. So you use more electricity in winter? Aghast! But it costs more to use it too. Continuing their own words,”Expenses also increased because TVA generated 45 percent less hydroelectric power during the period.” In other words, production is down so expenses go up?
TVA management should be fired for that one alone. Too bad TVA has no shareholders; they would have gotten rid of this management crowd long ago.
Why would hydroelectric production be down (45% less from a year ago) when that is the most economical source of electricity? When TVA sells 2% more electricity one must ask, why didn’t TVA live within its own income? With all of its power producing facilities in place and the proper and efficient utilization of that capability, TVA’s management should be called to task and provide some answers.
It is to TVA’s detriment that they are not forthcoming in clear, logical sentences that explain where the money went. Also TVA didn’t bother to elaborate on why the cost of running TVA’s Green Power Switch program which cost TVA $659,803 more than it took in from sales of “blocks” of imaginary electricity. And what account was that money taken from?
And with the opportunity not taken in this SEC report to clarify the firing of a vice president in charge of completing the Watts Bar Unit 2 nuclear plant started in 1985, TVA again chooses the secretive route rather than the open one. The issues surrounding the delay in progress, according to the Nuclear Regulatory Commission, will have an adverse impact on the planned start up date of the reactor. Slippage in these kinds of huge construction projects can greatly affect final costs.
TVA says though, that the dismissal of the head of the operation will not affect the timeline. Maybe the NRC and TVA management should sit down and talk about this if for no other reason than to get their stories straight.
If you care to read the PR piece paid for by ratepayers, see http://www.prnewswire.com/news-releases/colder-weather-drives-up-tva-operating-costs-in-first-quarter-115128514.html I’m sure you will get a lot out of it if you understand the mangled English used by TVA with its non sequiturs and hidden meanings.
The word I’ve been looking for? Oh yes, its “accountability”.