Genie Energy Comments on Impact of Texas Market Electricity Price Spikes
Genie Energy (NYSE: GNE, GNE.PRA) reported it continues to provide stable electricity rates to 10,000 customers in Texas, despite last week’s severe price volatility in the electricity market. CEO Michael Stein highlighted the company's effective risk management strategy that mitigated financial impacts. While real-time costs surged over 100 times the rates charged, the company upheld its fixed-rate agreements. Genie Energy estimates that the financial impact from the weather event will be modest for Q1 2021. A full assessment will be provided in the upcoming quarterly results.
- Stable rates maintained for 10,000 Texas customers amid market volatility.
- Implemented a robust commodity price risk management strategy.
- Provided significant customer support and incentives during the crisis.
- Real-time costs exceeded 100 times the rates charged to customers.
- Financial impact from severe weather estimated to be modest but still a concern.
NEWARK, N.J., Feb. 22, 2021 /PRNewswire/ -- Genie Energy (NYSE: GNE, GNEPRA) today said that it continues to serve its 10,000 customers across Texas with no change in their rates under their current agreements despite the unprecedented price volatility in real-time electricity prices last week.
Michael Stein, Genie's CEO, commented, "First and foremost, our heart goes out to the many people across Texas who have suffered because of the extraordinarily severe weather this winter and particularly in the last week. We applaud the emergency services personnel who helped many Texans in need during this difficult period.
"Our retail supply business in Texas, Southern Federal Power, continues to provide electricity to customers with no change in rates, as it did throughout the extraordinary market conditions last week. Although real time costs climbed to levels that were well over 100 times the rates we charge our customers, we take very seriously our obligation to provide our customers with supply at the agreed upon fixed rates.
"Genie Energy had a robust commodity price risk management strategy in place to mitigate the financial impacts of price spikes, and our seasoned customer service team worked diligently with customers throughout the disruption. In that regard, we thank the thousands of customers who consulted with us over the past week. Our team provided our customers with hundreds of thousands of dollars in incentives and rewards to lower their consumption and reduce strain on the grid during the crisis," Mr. Stein concluded.
Management continues to evaluate the financial impacts of the severe weather event in Texas. Its current estimate is that the impact on its consolidated, company-wide profitability for the first quarter of 2021 will be modest. The company expects to provide a full account of the impact when it announces its quarterly results.
In this press release, all statements that are not purely about historical facts, including, but not limited to, those in which we use the words "believe," "anticipate," "expect," "plan," "intend," "estimate, "target" and similar expressions, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our current judgment of what may happen in the future, actual results may differ materially from the results expressed or implied by these statements due to numerous important factors, including, but not limited to, those described in our most recent report on SEC Form 10-K (under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations"), which may be revised or supplemented in subsequent reports on SEC Forms 10-Q and 8-K. We are under no obligation, and expressly disclaim any obligation, to update the forward-looking statements in this press release, whether as a result of new information, future events or otherwise.
ABOUT GENIE ENERGY LTD:
Genie Energy Ltd. (NYSE: GNE, GNEPRA), is a global provider of energy services. The Genie Retail Energy division supplies electricity, including electricity from renewable resources, and natural gas to residential and small business customers in the United States. The Genie Retail Energy International division supplies customers in Europe and Asia. The Genie Energy Services division includes Diversegy, a commercial and industrial brokerage and consultative services company, and Genie Solar Energy and Prism Solar, which design, supply and install commercial solar solutions. For more information, visit Genie.com.
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SOURCE Genie Energy Ltd.
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