Integrys Energy Services Earnings Lifted by Higher Margins

Integrys Energy Services saw core earnings of $13.5 million for the fourth quarter of 2011, versus $6.9 million a year ago.

Operating expenses were lower quarter over quarter, and realized retail electric margins increased due to a revised pricing strategy.

For the full year, core earnings at Integrys Energy Services were $34.0 million, versus $15.7 million in 2010.

Integrys Energy Services has enrolled over 33,000 new retail electric small commercial and residential customers in Illinois since starting to market to this customer class in April 2011.

Integrys Energy Services said that a framework is in place to offer natural gas to mid-Atlantic commercial and industrial customers in 2012; it recently launched commercial natural gas service in Maryland, D.C. and Virginia

Additionally, it is thus far serving 44,000 new retail electric customers under customer aggregation programs in Illinois.

For the fourth quarter, realized retail electric margins were $26.9 million, versus $24.9 million a year ago.

Realized per unit retail electric margins expanded to $9.08/MWh in the quarter, from $8.49/MWh a year ago.

Physical retail electric volumes were 2,962.4 GWh for the quarter, versus 2,931.3 GWh a year ago.

Realized retail natural gas margins, excluding the impact of lower of cost or market accounting, were higher at $14.5 million for the quarter, versus $14.0 million a year ago.

Realized retail natural gas per unit margins were $0.42 per dekatherm versus $0.37 per dekatherm a year ago.

Physical retail natural gas volumes were 34.8 billion cubic feet in the fourth quarter, versus 37.5 billion cubic feet a year ago

Revenues for Integrys Energy Services were $266.7 million for the quarter, versus $381.6 million a year ago.