Following a net loss of $267 million in the first half of its fiscal year, Tennessee Valley Authority executives announced they would cut back on capital expenses and trim upward of 1,000 positions.
TVA offered no further details on either measure or regarding what areas of the organization they would affect. In an earnings release, the company pointed to a 5.9 percent drop in electricity sales in the first half of the fiscal year, caused by one of the warmest winters on record in its service area. Slack demand also reduced rates, contributing to the 10.8 percent decline in revenues during the first two quarters of fiscal 2012 compared to the same period last year.
The earnings results follow a recent decision by TVA’s board to approve a $1.5 billion to $2 billion increase to the budget of the Watts Bar 2 completion project. While they remain committed to that endeavor and to nuclear power in general, TVA executives told reporters in a conference call that the organization will trim about $500 million from its budgets for capital projects.