The Tennessee Valley Authority earned $253 million in the fiscal quarter ended March 31, down from the $430 million earned in the same period a year ago.
The drop in earnings came despite a 13 percent jump in revenues in the past year due to higher rates and more electricity sales during the colder winter weather this year.
TVA said fuel and purchased power costs nearly doubled from a year ago, rising from $605 million in the first three months of 2010 to more than $1 billion in the first quarter of this year. Higher prices for coal and natural gas pushed up fuel expenses, according to TVA.
For the first half of fiscal 2011, TVA reported net income of $205 million on revenues of $4.9 billion. In the first half of fiscal 2010, TVA earned $580 million on revenues of $4.2 billion.
TVA is the nation’s largest government-owned utility and serves parts of seven Southeastern states.