More Generators Earnings Higher than Lower

Generators saw improved earnings during the first quarter of 2018, with the exception of Vistra, which took over Dynegy.

AES: With major power plants in California, this worldwide energy company saw $684 million in earnings in the first quarter of 2018 compared to a loss of $24 million in the first quarter of 2017. On a per share basis, earnings were $1.03 compared to a loss of 4 cents in the first quarter of 2017.

Andrés Gluski, AES chief executive officer, attributed the gain to greater cost control, new power purchase agreements in the East and South, and reducing the company’s debt with the proceeds from selling a power plant in the Philippines.

In California, the company operates three large power plants along the coast in the Los Angeles Basin, plus two wind facilities in Southern California.

AltaGas: This Canadian energy company with plants in California had earnings in the first quarter this year of $49 million, or 28 cents per share, compared to $32 million, or 19 cents per share, in the first quarter of 2017.

“2018 is off to a great start, both from a financial perspective as well as from the advancements made toward closing the WGL acquisition,” said David Harris, the company’s chief executive officer. WGL is a utility in Washington, D.C., that AltaGas is purchasing for $9 billion.

AltaGas operates six gas-fired power plants in California, including the 507 MW Blythe plant, which has a power purchase agreement with Southern California Edison, and four plants in the Central Valley, including two peakers.

It also operates a 45 MW power plant in Pomona, which is coupled with a 20 MW battery energy storage system, which also is under contract with Edison.

Calpine: After this Texas-based company was acquired in March by Energy Capital Partners, a private equity firm, its stock ceased trading on the New York Stock Exchange and it is no longer producing public earnings reports.

The company has major operations in California, with gas power plants, as well as sizable geothermal facilities at the Geysers north of San Francisco.

Dynegy: This company, with a troubled history in California, merged with Vistra Energy early last month after a series of reported losses. For example, Dynegy reported a loss of $95 million for the last quarter of 2017.

Vistra reported a loss of $306 million, or minus 71 cents a share, for the first quarter of this year. That compares to net income in the first quarter of 2017 of $78 million, or 18 cents a share.

Included in Vistra’s California portfolio formerly owned by Dynegy are the 2,529 MW gas-fired Moss Landing plant and the 165 MW oil-fueled Oakland Energy Facility in California, which is slated for closure.

Next Era: The renewable subsidiary, with solar and wind plants in California, generated the lion’s share of the Florida-based company earnings the first quarter of 2018. NextEra Energy Resources’ latest quarterly earnings were reported at $3.926 billion, or $8.29 per share. That compares with the parent company’s overall reported earnings of $4.428 billion, or $9.32 hare.

The latest quarterly earnings were way above the 2017 first quarter earnings for Next Energy Resources, which were $476 million or $1.01 a share. Total company net income at that time was $1,583 billion, or $3.37 per share.

The company added 1,001 MW of new renewables projects, including 667 MW of new wind and 334 MW of new solar projects. Also, NextEra Energy Resources commissioned its first solar-plus-storage project in Florida.

NRG: The company, which is in the process of selling off its solar and wind projects and some gas-fired plants inside and outside California, reported positive first quarter earnings of $279 million, or 87 cents a share. That compares to a loss of $163 million, or minus 52 cents a share, in the first quarter of 2017.

The rosy financial news was attributed to the asset sales, including its $1.375 billion sale of its renewable plants and NRG Yield to GIP, which was announced Feb. 6.

The transaction is expected to close in the second half of 2018, assuming closing conditions are satisfied and the companies obtain needed regulatory approvals.

Excluded from the sale to GIP is NRG’s Ivanpah solar plant.

Other California plants still owned by NRG include five natural gas plants, including Encina, Long Beach, Midway Sunset, Watson and the San Diego Turbines.

Additionally, the company’s board approved the repurchasing of $1 billion in common stock earlier this year, with $93 million of stock bought in March,

The company also noted that the officers and board members of NRG Yield face claims of breach of fiduciary duty. A lawsuit filed in the Superior Court of Kern County in April 2016, alleges they violated the Securities & Exchange Act for failing to disclose material facts related to low wind production prior to a stock offering in 2015. —William J. Kelly & Elizabeth McCarthy

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More Generators Earnings Higher than Lower

William J. Kelly

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