Allegheny Power 2013 Annual Report Download - page 33
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18
Regulated Distribution — 2013 Compared with 2012
Net income decreased by $39 million in 2013 compared to 2012, as more fully described below.
Revenues —
The $322 million decrease in total revenues resulted from the following sources:
For the Years Ended
December 31, Increase
Revenues by Type of Service 2013 2012 (Decrease)
(In millions)
Distribution services $ 3,762 $ 3,948 $ (186)
Generation sales:
Retail 3,959 4,104 (145)
Wholesale 330 347 (17)
Total generation sales 4,289 4,451 (162)
Transmission 448 450 (2)
Other 239 211 28
Total Revenues $ 8,738 $ 9,060 $ (322)
The decrease in distribution services revenue is primarily the result of a NJBPU-approved reduction to the JCP&L NUG Rider which
was effective March 1, 2012 and a decrease to the ME and PN NUG riders resulting from the expiration of certain NUG contracts
in 2012 and 2013. Additionally, lower recovery of energy efficiency expenses reflecting reduced costs was partially offset by an
increase in the Ohio Companies' DCR rider and slightly higher distribution deliveries. Distribution deliveries increased by 0.9% in
2013 compared to 2012. Distribution deliveries by customer class are summarized in the following table:
For the Years Ended
December 31, Increase
Electric Distribution MWH Deliveries 2013 2012 (Decrease)
(In thousands)
Residential 54,479 53,993 0.9 %
Commercial 42,582 42,645 (0.1)%
Industrial 50,243 49,378 1.8 %
Other 584 585 (0.2)%
Total Electric Distribution MWH Deliveries 147,888 146,601 0.9 %
Higher deliveries to residential customers primarily reflects increased weather-related usage resulting from heating degree days
that were 18% above 2012, and 2% above normal, partially offset by cooling degree days that were 15% below 2012, and 3%
above normal. Lower deliveries to the commercial sector primarily reflect increasing energy efficiency mandates and demand
response initiatives. In the industrial sector, increased sales to steel, chemical, and shale gas customers were partially offset by
lower sales to automotive and paper customers. Additionally, FirstEnergy expects additional growth in the industrial sector beyond
2013 for potential shale gas projects. As the gas fields are developed, the opportunity for additional manufacturing expansion could
further support growth.