Daily Email







NRG Reports "Strong Retail Performance", Enters Growth Phase In Plan To Become Leading Provider Of Essential Home Services

November 7, 2022

Email This Story
Copyright 2010-21
Reporting by Paul Ring •

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of

NRG reported earnings for the quarter ending September 30, 2022 (third quarter)

In doing so, NRG said that in 2023, it would further execute on its previously reported integrated home plan (reflecting both vertical integration and partnerships)

NRG is moving from a testing & learning phase, and is ready to start executing to become a "leading provider" of essential services for the home, executives said. See more background on NRG's strategy to offer a suite of essential home services, in addition to energy, in our prior story here

NRG said that solar, EV, energy management, and security offerings are now in late stage development. Aside from energy management, all of these services are to be offered in concert with a partner network

A home concierge service (via a partner network) is in early stage development, NRG said

NRG is allocating $220 million in capital in 2023 to its growth plans, which includes executing its integrated home plan

"In 2023, the Company expects to enter its next phase of growth, 'grow from core,' through executing identified investment and strategic partnerships, while evaluating incremental vertical integration and partnership opportunities. Consistent with its strategic and capital allocation priorities, the Company expects to allocate approximately $220 million for growth-related projects in 2023," NRG said

In 2023, NRG is also allocating a separate $20 million for small book acquisitions, compared to a $50 million capital allocation in 2022. NRG is also separately allocating, in 2023, $40 million for Retail Home growth

NRG reported "strong retail performance" for the third quarter of 2022

NRG said that it ended the third quarter of 2022 with 5.5 million Home customers, compared to 5.6 million as of the end of the second quarter of 2022, and 5.55 million as of the end of the first quarter of 2022

NRG listed third quarter 2022 retail highlights as:

• "Healthy consumer trends and spending on essential home services

• "Further stabilizing customer bills and earnings; extended avg new Home contract [in Texas] to 2 years"

• "Disciplined approach to pricing in volatile market; balancing earnings with customer count"

NRG reported third quarter 2022 retail volumes as follows:

45 TWh Electricity

     18 TWh Home / Residential 
         (76% of volumes are in Texas)

     27 TWh Business / C&I  
         (41% of volumes are in Texas)

356 MMDth Natural Gas
     11 MMDth Home / Residential 
    345 MMDth Business / C&I

NRG reported Adjusted EBITDA $452 million for the third quarter of 2022, down from $767 million a year ago

In NRG's Texas segment, third quarter 2022 Adjusted EBITDA was $183 million, $263 million lower than the $446 million posted in the third quarter of 2021. This decrease was primarily driven by higher supply costs as a result of the previously announced unplanned outage at W.A. Parish Unit 8 and higher ancillary charges, partially offset by higher revenue rates and increased load driven by weather.

With regards to W.A. Parish Unit 8 (610 MW), based on management's current assessment of necessary restoration efforts, NRG continues to target the return to service of the unit by the end of the second quarter of 2023.

In NRG's East segment, third quarter 2022 Adjusted EBITDA was $175 million, $44 million lower than the $219 million posted in the third quarter of 2021. This decrease was primarily driven by the 4.8 GW asset sale which was completed in December 2021, PJM asset retirements, and supply chain constraints, partially offset by higher revenue rates and the realization of Direct Energy synergies.

On September 9, 2022, NRG entered into a definitive purchase agreement to sell land and related assets from the Astoria site, within the East region of operations, for initial proceeds of $212 million, subject to purchase price adjustments and certain other indemnifications. As part of the transaction, NRG will enter into an agreement to lease the land back for the purpose of operating the Astoria facility through the planned April 30, 2023 retirement date. The operating lease agreement is expected to end six months after the facility's actual retirement date. The transaction is expected to close in the fourth quarter of 2022 and is subject to various closing conditions, NRG said

As a result of the agreement for the Astoria sale mentioned above, and the planned withdrawal and cancellation of the proposed Astoria redevelopment project, NRG recorded an impairment of $43 million in the third quarter of 2022.


NEW Jobs on
NEW! -- Sales Director
NEW! -- Market Operations Analyst -- Retail Supplier
NEW! -- Accounting Manager -- Retail Supplier
NEW! -- Sales Development Representative
NEW! -- Operations Analyst/Manager - Retail Supplier
NEW! -- Customer Success
NEW! -- Operations Manager - Retail Supplier
NEW! -- Marketing Associate - Retail Supplier
NEW! -- Supervisor-Commercial Operations
NEW! -- Market Operations Analyst
NEW! -- Customer Data Specialist
NEW! -- Director, Regulatory Affairs, Retail Supplier
NEW! -- Account Manager Project Manager
NEW! -- Retail Energy Policy Analyst
NEW! -- Incentive Specialists
NEW! -- Utility Rates Specialist
NEW! -- Customer Onboarding Specialist
NEW! -- Energy Performance Engineer

Email This Story


Copyright 2010-22 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.



Daily Email