|
|
|
|
|
Integrys Energy Services Reports Intensified Competitive Pressure, Earnings Rise on Lower Costs
August 10, 2012
Email This Story
Copyright 2010-
Integrys Energy Services reported core earnings for the second quarter of $2.3 million, up from $1.2 million a year ago, but said that it is facing increased competitive pressures.
For the second quarter, lower operating expenses more than offset reduced margins. In terms of adjusted earnings, realized retail electric and natural gas margin were down $1.6 million, mainly due to competitive pressure on per-unit margins, as well as warmer weather. Electric volumes were also marginally less than expected, primarily due to increased competition, executives said.
In particular, given the current competitive environment, Integrys Energy Services' retail electric municipal acquisition results in Illinois are slightly behind management's 2012 expectations. As of June 30, 2012 Integrys Energy Services has 32 communities contracted under Illinois municipal aggregation programs.
Integrys Energy Services expects municipal aggregation growth opportunities to extend into 2013, with more than 100 additional Illinois communities expected to put electric aggregation on the November ballot.
Integrys Energy Services had 243,500 total Illinois customers under contract as of June 30, 2012, with 47,000 of these customers coming online in the third quarter of 2012.
To combat the increased competition seen across all of its markets, Integrys Energy Services has continued its previously reported expansion to Mid-Atlantic gas sales, and has also expanded marketing at PECO, AEP Ohio, and AEP Michigan (I&M).
For the second quarter, realized retail electric margins were $22.3 million, versus $24.0 million a year ago.
Realized per unit retail electric margins were lower at $7.23/MWh in the quarter, versus $8.01/MWh a year ago.
Physical retail electric volumes were 3,082.7 GWh for the quarter, versus 2,997.0 GWh a year ago.
Realized retail natural gas margins, excluding the impact of lower of cost or market accounting, were $5.9 million, versus $6.9 million a year ago.
Realized retail natural gas per unit margins were $0.25 per dekatherm versus $0.29 per dekatherm a year ago.
Physical retail natural gas volumes were 23.3 billion cubic feet in the second quarter, versus 23.9 billion cubic feet a year ago.
Copyright 2010-
|
|
|
|
|