Allegheny Power 2013 Annual Report Download - page 34
Download and view the complete annual report
Please find page 34 of the 2013 Allegheny Power annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24 -
25 -
26 -
27 -
28 -
29 -
30 -
31 -
32 -
33 -
34 -
35 -
36 -
37 -
38 -
39 -
40 -
41 -
42 -
43 -
44 -
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97
-
98
-
99
-
100
-
101
-
102
-
103
-
104
-
105
-
106
-
107
-
108
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
-
155
-
156
-
157
-
158
-
159
-
160
-
161
-
162
-
163
-
164
-
165
-
166
-
167
-
168
-
169
-
170
-
171
-
172
-
173
-
174
-
175
-
176
 |
 |
19
The following table summarizes the price and volume factors contributing to the $162 million decrease in generation revenues in
2013 compared to 2012:
Source of Change in Generation Revenues
Increase
(Decrease)
(In millions)
Retail:
Effect of decrease in sales volumes $ (194)
Change in prices 49
(145)
Wholesale:
Effect of decrease in sales volumes (95)
Change in prices 78
(17)
Decrease in Generation Revenues $ (162)
The decrease in retail generation sales volume was primarily due to increased customer shopping in the Utilities' service territories
during 2013, compared to 2012. This increased customer shopping, which does not impact earnings for the Regulated Distribution
segment, is expected to continue. Total generation provided by alternative suppliers as a percentage of total MWH deliveries
increased to 81% from 79% for the Ohio Companies, 66% from 64% for the Pennsylvania Companies, 47% from 46% for PE and
52% from 50% for JCP&L. The increase in prices reflects the completion of marginal transmission loss refunds to ME and PN
customers in the second quarter of 2013 and a higher generation rate at WP, which includes the recovery of transmission costs
beginning in June 2013.
The decrease in wholesale generation revenues of $17 million in 2013 resulted from the expiration of NUG contracts, partially offset
by higher energy and capacity prices in 2013.
Other revenues increased by $28 million primarily due to more customer requested work for OE and JCP&L in 2013 compared to
2012.
Operating Expenses —
Total operating expenses decreased by $318 million primarily due to the following:
• Fuel expense was $114 million higher in 2013 primarily related to increased generation at Fort Martin as a result of planned
and forced outages in 2012 and the asset transfer between MP and AE Supply of the Harrison Power Station effective
October 9, 2013.
• Purchased power costs were $493 million lower in 2013 primarily due to a decrease in volumes required as a result of
increased customer shopping, higher generation, reduced NUG purchases and lower unit power supply costs.
Source of Change in Purchased Power
Increase
(Decrease)
(In millions)
Purchases from non-affiliates:
Change due to decreased unit costs $ (68)
Change due to decreased volumes (429)
(497)
Purchases from affiliates:
Change due to decreased unit costs (10)
Change due to decreased volumes (92)
(102)
Decrease in costs deferred 106
Decrease in Purchased Power Costs $ (493)