AEP Energy Reports Higher Retail Margins, Customer Growth
February 19, 2020 Email This Story Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • email@example.com
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AEP, in reporting earnings for the year 2019, said that its competitive retail segment (AEP Energy) saw higher retail margins and customer growth.
Higher retail margins were recorded both in the fourth quarter, versus the year-ago, and for the full year 2019, versus the year-ago
With respect to the fourth quarter of 2019, the Retail segment posted a $0.02 per share improvement (about $10 million) in contribution to Generation & Marketing segment earnings versus the year-ago, due to "favorable retail margins."
For the full year 2019, the Retail, Trading and Marketing segment reported an increase of gross margin of $39.8 million versus the year 2018.
"Retail, Trading and Marketing increased $40 million due to higher retail margins due to lower market costs and higher delivered volumes and higher marketing activity in 2019," AEP said
AEP Energy is a retail energy supplier that supplies electricity and/or
natural gas to residential, commercial, and industrial customers. AEP Energy provides various energy solutions in Illinois, Pennsylvania,
Delaware, Maryland, New Jersey, Ohio and Washington, D.C. AEP Energy also provides demand-side management solutions
AEP reported that AEP Energy had approximately 470,000 customer accounts as of December 31, 2019. This compares to a total of 463,000 "customers" as listed in a November investor presentation, and 415,000 customer accounts as of December 31, 2018.
During an earnings call, AEP CEO Nick Akins touted the company's focus on growing its renewables businesses, including its non-regulated renewables businesses, which Akins said provides an all-in solution to customers from AEP OnSite Partners and AEP Renewables to retail supplier AEP Energy
As of December 31, 2019, subsidiaries within AEP’s Generation & Marketing segment had approximately 1,421 MWs of contracted
renewable generation projects in-service. In addition, as of December 31, 2019, these subsidiaries had approximately 156 MWs of renewable
generation projects under construction with total estimated capital costs of $229 million related to these projects