HomeMay 8, 2014
Duke Retail Reports Lower Earnings from Polar Vortex
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Duke Energy's competitive retail business reported lower earnings during the first quarter of 2014 from the purchase of market power to meet polar vortex-driven customer demand.
Duke said that its competitive retail supplier hedges its contract volumes based on normal weather, and the polar vortex usage forced Duke Energy Retail to buy high-priced power in the market to meet this increased demand.
These market purchases led to about a $7 million drag on Retail earnings (-$0.01 per share), compared to the year-ago.
Addressing the potential for Ohio to require ratepayer-backed contracts to support certain generation, Duke Energy CEO Lynn Good said that, "I think Ohio has begun to recognize that extreme weather conditions such as the polar vortex may be creating reliability concerns for the state."
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