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Residential Churn at TXU Energy Steady

July 29, 2011
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TXU Energy lost a net of 33,000 residential customers from March 31, 2011 through June 30, 2011, Energy Future Holdings reported in a 10-Q this morning.

That compares with a loss of 32,000 residential customers from December 31, 2010 to March 31, 2011.

Residential churn for prior quarters dating back to the year-ago quarter was as follows:

- Net loss of 29,000 from September 30, 2010 through December 31, 2010

- Net loss of 30,000 from June 30, 2010 to September 30, 2010

- Net loss of 19,000 from March 31, 2010 through June 30, 2010.

TXU's residential customer count as of June 30, 2011 was 1.706 million, versus 1.739 million as of March 31, 2011 and 1.830 million as of June 30, 2010.

TXU's small business (< 1 MW) customer count stood at 199,000 as of June 30, 2011, versus 208,000 as of March 31, 2011. The net attrition of 9,000 small business customers was equal to the small business attrition seen during the first quarter of the year.

The small business customer count as of June 30, 2010 was 241,000.

TXU's large business customer count as of June 30, 2011 was 20,000, down from 22,000 as of March 31, 2011 and 22,000 a year-ago.

Executives said during an earnings call that the business customer attrition reflects margin discipline.

Total TXU customer count was 1.925 million as of June 30, 2011, versus 1.969 million as of March 31, 2011 and 2.093 million a year ago.

Total retail electricity volumes at TXU were 11,890 GWh for the quarter ending June 30, 2011, versus 12,766 GWh a year ago.

Business volumes (5,057 GWh in 2Q '11) decreased 15% versus the year-ago reflecting a change in customer mix as well as lower counts driven by competitive activity. Residential volumes (6,833 GWh for 2Q '11) were essentially flat versus the year-ago reflecting a 7% decline in customer count driven by competitive activity offset by 7% higher average consumption driven by warmer weather.

Retail electricity revenues were $1.330 billion for the quarter, versus $1.476 billion a year ago. Lower average pricing accounted for $45 million of the decrease, reflecting declining prices in both the residential and small business markets. Lower average pricing is reflective of competitive activity in a lower wholesale power price environment and a change in business customer mix.

SG&A expenses for Energy Future Holdings' combined wholesale and retail competitive energy segment decreased $5 million, or 3%, to $175 million for the second quarter of 2011. The decrease was driven by an $11 million reduction in retail bad debt expense reflecting improved collection initiatives and customer mix.

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