Despite lower electric sales, TVA posts record net income

TVA

KNOXVILLE, Tenn. (AP) – The Tennessee Valley Authority has posted a record net income despite falling electric sales.

According to the Chattanooga Times Free Press (http://bit.ly/2fB9vTJ ), the Tennessee Valley Authority says its 2016 budget year net income rose about 11 percent to more than $1.2 billion.

Electric sales dropped 3.4 percent due to stagnant demand and a slight drop in power rates.

Authority directors said Thursday they will give rank-and-file workers performance bonuses and pay higher performance bonuses to top managers.

Board members voted to increase CEO Bill Johnson’s potential pay next year.

CFO John Thomas said the authority cut operating and maintenance expenses by about $800 million in the year ending Sept. 30.

The utility spent $3.1 billion on capital improvements last year and used cheaper fuel to reduce average customer power prices.

Copyright 2016 The Associated Press. All rights reserved

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