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Show TRENDS IN THE AVERAGE RATE FOR RESIDENTIAL ELECTRICITY IN TENNESSEE 1929-1949 With Comparative Data for the United States FIGURE 6. The first year in which wholesale power revenues of TVA reached a consistent paying basis was fiscal 1939. The 6 previous years represented a de- velopmental stage in which a market for TVA power had to be built up, and in which litigation impeded normal progress. In these years power operations had resulted in a net operating deficit of $748,665. In 1939, energy sales totaled 1,618,- 287,000 kilowatt-hours and the Authority's power revenues were $5,507,000. These revenues pro- vided a net income of $1,442,880 after all expenses, or nearly $700,000 more than the net deficit in- curred in the previous years. Each year since that time TVA has had a sub- stantial net income. In fiscal 1950, TVA sold 14,166 million kilowatt-hours, with power revenues of 57.8 million dollars. Net revenues from opera- tions were 27 million dollars, representing a 5.8 percent return on average net investment in power facilities, which includes an allocation of a portion of the investment in multiple-purpose facilities. The annual return for the past 5 years has averaged almost 5 percent, and the aggregate figure since the beginning of operations averages more than 4 percent. TVA's net revenues represent earnings after all production and operating expenses, and after pay- ments in lieu of taxes as required by section 13 of the TVA Act. They are also after full provision for depreciation of the plant and facilities devoted to power operations. The depreciation accrual for 1950 was $10,702,357. TVA depreciates all limited life assets on a straight-line basis at rates derived from engineering studies of useful life. In-lieu tax payments are made annually to States and counties. TVA's total payments in lieu of taxes for fiscal 1950 amounted to $2,471,000, slightly more than double the amount paid by private owners of TVA's purchased power properties, in- cluding reservoir lands allocated to power, prior to acquisition by TVA. TVA does not own the distribution facilities, but the owners of these portions of the electric plant used in the area-for the most part cities and rural 771 |
