NEWARK, N.J., March 8, 2021 /PRNewswire/ -- Genie Energy (NYSE: GNE, GNEPRA) today provided additional information on the financial impact to the company of Winter Storm Uri, which disrupted the Texas electricity market in mid-February 2021.
The unprecedented severity of the storm triggered an exceptional increase in electricity demand. As a result, wholesale prices in the Electric Reliability Council of Texas ("ERCOT") service area reached or exceeded maximum allowed clearing prices for sustained periods.
Because complete supply costs are not yet available, Genie Energy is not yet able to fully quantify the financial impact of Winter Storm Uri. However, invoices received to date as well as other costs incurred place the loss from the situation in the first quarter of 2021 at approximately $12.5 million. The final amount of the losses is still unknown.
The company plans to provide updates when it announces fourth quarter 2020 results on March 11th and when it gains access to complete price and volume settlement data from its supplier. Moreover, the results of formal disputes regarding pricing and volume settlement and corrective actions that Genie and other market participants are seeking from the State of Texas, ERCOT, the Public Utility Commission of Texas, and other regulatory agencies of jurisdiction may impact the final cost.
The company serves approximately 10,000 electricity meters in ERCOT's service territory comprising approximately 21,000 residential customer equivalents, or approximately 5% of its global customer base.
Despite the evolving impact of the Winter Storm Uri in Texas, Genie Energy has consistently maintained, and continues to maintain, sufficient liquidity to conduct its operations in the ordinary course of business and management remains confident that the company has the resources to address the ultimate impacts from this extraordinary event.
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.