NRG Reports Steady Retail Margins in Texas

NRG Energy reported this morning on its earnings call that it is seeing flat unit margins in Texas.

In contrast, retail unit margins declined in the Northeast; however, gross margin was maintained on higher volumes.

Retail gross margin was $22/MWh for the first quarter of 2013, versus $23/MWh a year ago.

NRG reported that it increased its customer count by 21,000 across the northeast and Texas as compared to the fourth quarter of 2012.

Specifically, NRG reported its retail customer count as 2.231 million as of the end of the first quarter of 2013, versus 2.210 million as of December 31, 2012 and 2.192 million as of September 30, 2012.

NRG also reported that margin discipline in Texas led to lower C&I volumes, but that it saw higher C&I volumes in the Northeast.

Total volumes for the first quarter of 2013 were 12.6 TWh, of which 10.6 TWh was in Texas, and the balance in the Northeast.

First quarter Adjusted EBITDA for NRG's Retail segment was $103 million; $9 million lower than first quarter 2012.

Net income for Retail was $369 million, versus $7 million a year ago, on changes in mark-to-market impacts.

Retail Gross Margin was lower by $4 million primarily due to increased supply costs not fully recovered as a result of competitive renewal and acquisition pricing, as well as weather impacts, partially offset by additional margin attributable to higher customer count