|
|
|
|
Just Energy CEO: If ERCOT Sees The Volatility The Market Is Worried About Right Now, "Everybody's Book" At Risk If Not Hedged
The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com
If ERCOT this summer sees the volatility that the market is worried about right now, "you're going to see everybody's book at risk if they're not hedged, naturally or through weather structures like us," Just Energy’s CEO Pat McCullough said during an earnings call
Asked about the opportunity for acquisitions due to volatility, McCullough said that Just Energy has already seen several small books come across its radar due to recent volatility, sized about 10,000 to 50,000 RCEs, but said he isn't sure if any of those potential deals will get done
McCullough said that expected volatility in Texas, and the ERCOT forwards, is also bringing pricing power back to Just Energy
Just Energy is seeing the ability to price favorably as competitors pull back from sales due to concerns about summer exposure
Further discussing Just Energy's strategy to manage volatility and margins, in addition to its traditional weather hedges and new insurance products, McCullough said that the company will be more aggressive in passing incremental unhedgeable costs to its customers
Just Energy, McCullough said, has been very conservative in the past years in passing on such costs -- more conservative than its competitors
"So we are not at market when it comes to passing on some of the incremental costs that happen ... [such as] capacity costs and ancillary costs which you can't hedge," McCullough said, as the company will be more aggressive in passing on these costs where it has pricing power to do so
ADVERTISEMENT Copyright 2010-16 Energy Choice Matters. If you wish to share this story, please
email or post the website link; unauthorized copying, retransmission, or republication
prohibited.
Says Pricing Power Returning In ERCOT, As Competitors Pull Back Due To Expected Summer Volatility
Will Be More Aggressive In Passing Through To Customers More Unhedgeable Capacity, Ancillary Costs
May 17, 2018
Email This Story
Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Channel Sales - Associate -- Retail Supplier
• NEW! -- Director - Sales Management & Strategy -- Retail Supplier
• NEW! -- Operations Analyst -- Retail Supplier
• NEW! -- Sr. Business Development Manager -- Retail Supplier
• NEW! -- Sales Support Specialist -- Retail Supplier
• NEW! -- Natural Gas Operations Manager -- Retail Supplier
• NEW! -- Energy Consultant
• NEW! -- Director, Retail Energy Supply & Pricing -- Retail Supplier -- Houston
• NEW! -- Sales and Channel Partner Manager -- Retail Supplier
|
|
|