NRG 10-Q Discloses Green Mountain Energy Customer Growth, Reliant Gross Margin Drivers

Green Mountain Energy's customer count grew by 14,000 from June 30, 2011 to September 30, 2011, parent NRG Energy disclosed in a 10-Q yesterday.

Total metered customer count at Green Mountain was approximately 400,000 as of September 30, 2011.

Green Mountain Energy's customer count has increased by 48,000 in the nine months ended September 30, 2011.

Green Mountain Energy reported retail gross margin of $44 million for the three months ended September 30, 2011, reflecting increased customer usage due to warmer than normal weather, offset by higher power prices in ERCOT for incremental usage during August.

Operating revenues at Green Mountain were $230 million for the quarter. Revenues were generated 64% from residential customers and 36% from commercial customers.

As reported yesterday, Reliant gross margin decreased by $101 million for the quarter ending September 30, 2011, to $253 million.

The extreme ERCOT pricing during August was responsible for a $56 million decline in Reliant gross margin. Additionally, retail margins decreased 17% due to lower pricing on acquisitions and renewals consistent with competitive offers, which led to a $55 million reduction in gross margin. A $15 million decline in gross margin versus the year-ago resulted from the absence of a year-ago benefit from the unwind of certain out-of-market supply contracts.

Partially offsetting these negative drivers was a $25 million benefit for Reliant gross margin from increased volumes, from both customer growth and weather.

See yesterday's story for detail on Reliant customer growth

Mass market revenues at Reliant for the third quarter were $1.035 billion, versus $997 million a year ago. Commercial and Industrial revenues were $541 million, versus $546 million in the year-ago quarter.

Reliant mass market volumes were 8,389 GWh for the quarter, versus 7,547 GWh a year ago. Commercial and Industrial quarterly volumes were 7,231 GWh, versus 7,179 GWh a year ago.

NRG reported that selling, general and administrative expenses decreased by $3 million for the three months ended September 30, 2011, compared to the same period in 2010, due primarily to a decrease in bad debt expense of $12 million at Reliant Energy due to improved customer payment behavior.