TransCanada Seeing Retail Business Growth

Continued growth in TransCanada Power Marketing's retail business was reflected in higher purchased power volumes during the quarter ending September 30, 2012.

Purchased sales volumes for TransCanada's U.S. Power unit were 3,600 GWh for the quarter ending September 30, 2012, more than double the year-ago purchased power of 1,650 GWh. The U.S. Power segment's generation during the quarter was 2,350 GWh, versus 2,100 GWh a year ago.

Asked about the increased purchased power in the U.S. Power segment, executives during an earnings call attributed the increase to the continuing growth of TransCanada's retail, commercial, and industrial business.

"[I]t's been a profitable business for us and successful business and we're just seeing customer volumes continue to increase," said Russell Girling, Chief Executive Officer and President of TransCanada Corporation.

Physical sales volumes for the three months ended September 30, 2012 increased compared to the same period in 2011, "primarily due to higher purchased volumes to serve increased sales to wholesale, commercial and industrial customers in the PJM and New England markets," TransCanada said.

Increased sales to wholesale, commercial, and industrial customers partially offset negative drivers for the U.S. Power segment during the quarter, which were lower realized power prices, higher load serving costs, and reduced water flows at the U.S. hydro facilities.

The U.S. Power segment reported Comparable EBITDA of $87 million for the three months ended September 30, 2012, versus $90 million a year ago.

The U.S. Power segment reported revenue of $408 million for the quarter, versus $336 million a year ago, on the aforementioned higher sales volumes to wholesale, commercial, and industrial customers, partially offset by lower realized power prices,

Commodity Purchases Resold were $268 million for the quarter ended September 30, 2012, versus $168 million a year ago, reflecting higher volumes of physical power purchased for resale under power sales commitments to wholesale, commercial, and industrial customers and higher load serving costs, partially offset by lower power prices.