Major Marketers 3Q Sales Compared
Wholesale gas and power sales still appear to be climbing
sharply for most major marketers as Enron, Duke Energy and Reliant
all posted significant increases in both commodities in third
quarter. Southern Energy reported that while its third quarter
North American electricity sales declined from last year's third
quarter level, its gas sales enjoyed a sizable increase.
Southern sold 54.9 million MWh of electricity, a decrease of 16
million MWh from last year's third quarter figure of 70.9 million
MWh. A company spokesman attributed the decline on electricity
sales primarily on the weather in the Northeast.
"We want to clarify that the decline in electricity volumes was
the result for our company's North American operations and was very
heavily influenced by the volumes of electricity and gas contracts
traded by our marketing and risk management organization," said
John Robinson, vice president investor relations, Southern Energy
"Southern Energy experienced increased profitability both from
our North American asset portfolio as well as from our marketing
and risk management activities. This increased profitability
coupled with the lower overall transaction volume indicates that
our strategy of focusing more on enhancing returns on our owned
assets is working," Robinson added.
In comparison, Enron reported a 46% increase in electricity
sales for the third quarter with 163 million MWh sold, compared to
last year's third quarter results totaling 111 million MWh. Duke
also experienced a jump in its power sales, increasing from 34
million MWh for the third quarter of 1999 to 90 million MWh for the
third quarter of 2000. Reliant, like Enron and Duke reported an
increase over 3Q 1999, recording a 36% increase. The company said
the largest single contributor to its increase in electricity sales
were its addition of Mid-Atlantic assets.
Even though Southern's electricity sales lagged, the company's
gas sales flourished. Southern sold 7.3 Bcf/d, an increase from the
company's 4.6 Bcf/d during 3Q 1999.
Enron's gas sales also rose significantly, from 13.3 Bcf/d
during 3Q 1999 to 24.6 Bcf/d for 3Q 2000, with most of the gain
attributed to EnronOnline, its online commodity exchange. Duke
Energy's gas sales volume rose from 10 Bcf/d to 12 Bcf/d. Duke
Energy spokesman Paul Mason said increased demand and more active
trading were the two major reasons for Duke's gains. Reliant
Energy's gas marketing volumes also rose between the two quarters,
from 4.7 Bcf/d to 7 Bcf/d, marking a 49% increase.
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