NRG Reports Decline In Total Mass Market Retail Customer Count Versus March 31, 2020, But Sees Growth In Texas

Reports Retail Revenue, Volumes

August 7, 2020

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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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In a 10-Q for the quarter ending June 30, 2020, NRG reported a decline in mass market customer count versus March 31, 2020

As of June 30, 2020, NRG was serving 3.618 million mass market customers, versus 3.651 million as of March 31, 2020 and 3.277 million as of June 30, 2019.

However, NRG grew its Texas mass market customer count by 8,000 customers from March 31, 2020 to June 30, 2020

NRG's mass market customer count by region was as follows:

Mass Market
  Thousands Of Customers (000)
        3/31/20     6/20/20
Texas     2,439       2,447
East      1,212       1,171

For the quarter ending June 30, 2020, NRG retail sales volumes were as follows:

Retail Sales Volumes, Quarter Ending 6/30/20
                     Texas    East    Total
Electricity
  Mass Market (GWh)  9,763   2,355   12,118
  C&I  (GWh)         4,213     365    4,578

Natural gas (MDth)    ---    3,591    3,591

Retail revenue for NRG was $1.832 billion for the quarter ending June 30, 2020, versus $1.685 billion a year ago.

For the quarter ending June 30, 2020, retail revenue was broken down as follows:

NRG Retail Revenues 
  (In millions) 

                   Texas    East    Total
Retail revenue:
Mass Market        $1,273   $291   $1,564
Business Solutions    248     20      268
Total retail        1,521    311    1,832

NRG no longer reports gross margin for a retail segment, but discussed retail as an overall driver for its gross margin in its new reporting segments (Texas, East, etc.)

The Texas segment saw economic gross margin increase by $72 million in the quarter ending June 30, 2020, versus the year ago, driven, in part, by the following notable divers:

Texas
Economic Gross Margin Change        $ In Millions

Higher gross margin primarily due           $100
   to lower costs to serve the retail 
   load, driven by a reduction of power 
   and fuel prices resulting from lower 
   natural gas prices

Higher gross margin from higher retail        48
   net revenue of $91 million, due to 
   increased volumes from the acquisition of 
   Stream in August 2019, higher net revenue 
   rates of $23 million, or $2.50 per MWh, 
   driven by customer term, product and mix, 
   and increased load of 256,000 MWhs from 
   favorable weather of $21 million, partially 
   offset by a decrease of $87 million due 
   to attrition and customer mix

Lower gross margin due to a decrease         (67)
   in net sales of generation to third
   parties, as the supply was fully utilized 
   to serve the Company's retail load in 2020

The East segment saw economic gross margin increase by $36 million in the quarter ending June 30, 2020, versus the year ago, driven, in part, by the following notable divers:

East
Economic Gross Margin Change        $ In Millions

Higher gross margin due to higher            $18
   revenues of approximately $10 
   million, or $4.50 per MWh, and 
   lower supply costs driven by lower 
   electricity and natural gas prices 
   of approximately $8 million, or 
   $3.50 per MWh

Higher gross margin due to increased         $11
   volumes from the acquisition of 
   Stream Energy in August 2019

NRG reported in the 10-Q that "Payments for acquisitions of businesses" for the six months ended June 30, 2020 were $5 million, versus $21 million a year ago.

In a July investor update, as previously reported, NRG had provided a separate metric, specifically, the change in its 2020 capital allocation since the quarter ending March 31, 2020. As previously reported, NRG in such July investor presentation had listed, as a change in capital allocation, "Small books" as $25 million.

NRG did not specify the nature of the small book acquisitions in such July presentation

However, EnergyChoiceMatters.com was first to report (story here) that NRG recently purchased the Texas retail customer book of Texans Energy. NRG, in a separate transaction, also recently acquired the Texas retail customer book of Windrose Energy

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