Exelon Corp. expects its first-quarter web revenue can be lowered by US$560 million to US$710 million due to final week’s chilly blast in Texas, saying three of its energy crops had been compelled to close down.
The utility proprietor cited periodic outages starting Feb. 15 at three of its natural-gas crops in Texas in an announcement Wednesday. Exelon stated the losses could be offset by US$410 million to US$490 million in deferred upkeep prices, one-time financial savings and extra income alternatives.
“This loss is unacceptable to us,” Exelon Chief Government Officer Christopher Crane stated on a name with analysts.
The three crops had been “periodically obtainable” when energy costs reached the market cap of US$9,000 a megawatt hour, and the estimated loss continues to be preliminary, Crane stated
“It consists of our greatest estimate for load obligations, ancillary costs and unhealthy debt,” he stated. The corporate expects to concern extra steerage by the point it releases its first-quarter earnings.
The Chicago-based firm’s fuel plant operators routinely plan for harsh climate, however in Texas they confronted “unprecedented, sustained chilly temperatures,” Crane stated.
The historic outage triggered billions in financial losses, and the affect to particular person firms is simply beginning to emerge. At its peak, greater than 4 million Texas properties and companies had been with out energy over a number of days of unprecedented chilly.