The driest year on record for Tennessee Valley Authority (TVA) resulted in hydropower output being down in 2006-7 following falls in each of the two previous years.
In reporting its full year results to 30 September, TVA said that hydroelectric generation was 9% down on last time. It added, however, that the baseline of 2005-6 was 42% below that of 2004-5, which itself was 35% less than 2003-4.
TVA said that the continued shortfall in hydropower output had led it to call on more expensive source of power generation, which hit cashflow. It added that the highest ever demand for electricity was for 33,482MW on 16 August, the month being the hottest on record in its service area.
In reporting the nine months to 30 June, TVA said that record dry conditions had cut its hydro revenues for the period by almost a third below budget. Rainfall over January-June was 56% of normal, which made it the second driest period on record in 118 years in Tennessee Valley.
Despite the difficulties for hydropower, TVA posted operating revenues up slightly to just over US$9.2B Net income increased to US$383M from US$329M last time.