Integrys Energy Services Reports Lower Earnings Despite Higher Retail Margin

Core earnings at Integrys Energy Services decreased in the second quarter to $1.2 million, from $3.4 million a year ago.

The decrease was driven by miscellaneous tax rate differences, an increase in pension and benefit-related expenses, and a decrease in realized wholesale electric margins.

These negative drivers offset an increase in margins in those retail markets where Integrys Energy Services continues to focus its operations.

Realized retail electric margins were $24.0 million for the quarter, versus $23.9 million a year ago.

Realized per unit retail electric margins expanded to $8.01/MWh in the quarter, from $7.49/MWh a year ago.

Physical retail electric volumes were lower for the quarter at 2,997.0 GWh, versus 3,189.8 GWh a year ago.

Realized retail natural gas margins, excluding the impact of lower of cost or market accounting, were higher at $6.9 million for the quarter, versus $3.7 million a year ago.

Realized retail natural gas per unit margins were $0.29 per dekatherm versus $0.16 per dekatherm a year ago.

Physical retail natural gas volumes were 23.9 billion cubic feet in the first quarter, versus 23.8 billion cubic feet a year ago.

In a presentation to investors this morning, Integrys Energy Group said that market delays and changing market dynamics in some regions where its non-regulated segment operates have resulted in growth taking longer than originally expected.