Table 7.  Tennessee Valley Authority Return on Assets Compared 
with Hypothetical Equivalent Investor-Owned Utility Returns, 1990 and 1998

IOU Comparison Net Plant and Equipment (Million 1999 Dollars) Actual Revenue (Million 1999 Dollars) Operating Income (Million 1999 Dollars) Average Return
(Percent) 		Adjusted Revenue (Million 1999 Dollars) Implied IOU Rate of Return (Percent) Federal Government Support (Million 1999 Dollars)
1990
No Deferred Assets 23,882.5 6,502.9 1,193.6 5.00 7,759.6 10.26 1,256.7
Deferred Assets Before Taxes 31,056.6 6,502.9 1,193.6 3.84 8,495.7 10.26 1,992.8
Deferred Assets After Taxes 31,056.6 6,502.9 1,193.6 3.84 7,765.8 7.91 1,262.9
1998
No Deferred Assets 20,935.4 6,812.1 2,206.9 10.54 7,040.0 11.63 227.9
Deferred Assets Before Taxes 29,247.8 6,812.1 2,206.9 7.55 7,369.1 9.45 557.0
Deferred Assets After Taxes 29,247.8 6,812.1 2,206.9 7.55 6,591.1 6.79 --
Notes: Because TVA does not pay Federal taxes, the after-tax and pre-tax net income values are the same. Calculated values may differ slightly from the values shown due to independent rounding. Most of the dollar values appearing in this report have been converted to 1999 dollars using the Gross Domestic Product (GDP) deflator. The GDP deflator was applied to companies' prior year loan and interest data. Although the values on the companies' balance sheets and income statements do not change from year to year, the purpose of the calculation was to estimate Federal Government support in a consistent framework. The framework chosen was the value of Federal Government support in terms of its 1999 purchasing power. The 1999 GDP deflator was 22 percent higher than the 1990 value and 1 percent higher than the 1998 value.
 Source: Tennessee Valley Authority, Annual Report 1990 (1991) and Annual Report 1998 (1999).

Federal Electricity Programs

If you would like to received any information relating to any of our reports via e-mail, click on the link labeled "Projections ListServ" to Join by entering your e-mail address.

File last modified: July 10, 2000

URL: http://www.eia.doe.gov/oiaf/servicerpt/subsidy1/tbl_7.html

Need Help Now?
Call the National Energy Information Center (NEIC)
(202) 586-8800 9AM - 5PM eastern time

Specialized Services from NEIC

  If you are having technical problems with this site,
please contact the EIA Webmaster at wmaster@eia.doe.gov