In its announcement, the Houston-based energy giant credited its good fortune to commodity margins in certain markets, as well as outage timing.
“The year-over-year increase in net income was primarily due to an increase in commodity margin in each of our wholesale regional segments and a decrease in operating and maintenance expense driven by the timing of maintenance outage costs for the year ended December 31, 2018, when compared to 2017,” Company officials stated.
The statement added that operating revenues went up by about $750 million, and that income from operations increased by more than 100% over 2017, leading to the $10 million net income the company experienced after a $339 million loss in 2017.
The cash increase came from operations income adjusted for non-cash items and an increase in working capital from the year-over-year change in net collateral margining requirements associated with commodity hedging activity.
Calpine charts show that East Texas saw the greatest increase in commodity margin, $180 million, while its retail segment lost $39 million in commodity margin.
Company officials point to “higher regulatory capacity revenue”, “higher spark spreads” and the “cancellation of a contract” as to why the East Texas region experienced the $180 million positive commodity margin.
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