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Green Mountain Targeting Northeast, C&I Expansion
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Updated Nov.
5, 2010, Adds Management Remarks Throughout
One of Green Mountain Energy's initial priorities priorities under NRG ownership is "targeted" geographic growth, specifically, to serve customers in northeast deregulated markets who demand sustainable energy, NRG Energy announced in reporting earnings.
Green Mountain is also targeting moving up the commercial and industrial customer chain, NRG said.
"We believe NRG can ably assist Green Mountain to move further up the C&I ladder to sell to bigger and more extensive retail organizations, which themselves want to shore up their own sustainability credentials with their own customer base," NRG CEO David Crane said during an earnings call
Green Mountain to date has focused on small commercial customers, Crane said.
Additionally, NRG called Green Mountain a, "logical sales channel for distributed green energy products."
NRG Energy reported slower customer attrition at Reliant Energy.
Reliant's mass market customer count stood at 1.468 million as of September 30, 2010, versus 1.488 million as of June 30, 2010 and 1.552 million as of September 30, 2009. The net 20,000 mass market customer loss compares favorably to a net loss of 32,000 mass market customers from March 31, 2010 through June 30, 2010.
NRG credited a new advertising campaign and new products for the improvement in attrition. Reliant Energy President Jason Few cited, in particular, the introduction of the Reliant Cap and Save product (a capped indexed product), which he said saw "solid" customer reaction.
Commercial and industrial customer count was 62,000 as of September 30, 2010, versus 63,000 as of June 30, 2010 and 66,000 a year ago. The net 1,000 C&I customer loss was steady with the net loss from March 31, 2010 through June 30, 2010.
Total customer count was 1.530 million as of September 30, 2010, versus 1.551 million as of June 30, 2010 and 1.618 million a year ago.
Reliant Energy third quarter adjusted EBITDA totaled $209 million, a decline of $97
million from the third quarter of 2009. The decrease was driven by an $89 million
decline in retail gross margin as mass market margins decreased 17% due to lower
margins on acquired and renewed customers consistent with competitive offers. Also
contributing to lower margins was a 4% decline in mass volumes sold, primarily due
to 84,000 fewer customers versus the year-
On a GAAP basis, Reliant recorded a net loss of $20 million for the quarter, versus income of $393 million a year ago, on mark to market impacts.
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