Texas Retail Provider Discloses Estimate Of Minimum Expected Proceeds From Uplift Financing Program

During an earnings call last week, Genie Energy executives reported that the company expects to receive a minimum of $1.5 million of relief under a Texas financing program which will compensate LSEs for exposure to certain eligible costs above the PUC-authorized system-wide offer cap

Genie executives further said that to the extent the financing program allocates funds in the manner that Genie believes should be undertaken, Genie's proceeds under the program could increase to $2.5 million

Concerning the impact of the Texas winter weather event, Genie in a second quarter 10-Q reported that, "In mid-February of 2021, the State of Texas experienced unprecedented cold weather and snow, which was named Winter Storm Uri. With the grid overtaxed due to demand and weather-related reduced supply and rolling blackouts being enforced, by order of the ERCOT, real-time commodity prices during the crisis escalated significantly. Although our supply commitment for our customers in Texas was reasonably hedged for reasonably foreseen winter weather conditions, the market conditions exposed us to further unexpected cost increases. Despite our cost increases related to the unprecedented price volatility in real-time electricity prices, we maintained customer rates under current agreements with customers. The impact on our consolidated profitability for the three and six months ended June 30, 2021 were approximately $1.0 and $13.0 million, respectively."

See our story from last week for more details on Genie's recent earnings report