Tennessee Valley Authority reported $2.5 billion in revenue for the first part of 2013.
TVA said it saw a $245 million net loss on its operating revenue. Electricity sales were relatively flat and up slightly by 0.2 percent.
Operating expenses increased by four percent than the same time last year because of higher fuel costs.
The utility said it used more of its own generation sources to offset those expenses and meet demand. TVA provides electricity for more than 9 million people in Tennessee and several other southern states.