Allegheny Power 2013 Annual Report Download - page 36

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21
Competitive Energy Services — 2013 Compared with 2012
Net income decreased by $435 million in 2013, compared to 2012, as more fully described below.
Revenues —
Total revenues decreased by $149 million in 2013, compared to 2012, primarily due to a decline in wholesale sales. Although MWH
sales increased 5.8% compared to the prior period, revenues were adversely impacted by lower unit prices compared to 2012 as
a result of a significant decrease in power prices beginning in the fourth quarter of 2011 when the 2013 competitive retail sales
position was only approximately 50% committed. These decreases were partially offset by growth in Governmental Aggregation,
Mass Market, and POLR and Structured sales channels. The decrease in total revenues resulted from the following sources:
For the Years Ended
December 31, Increase
(Decrease)Revenues by Type of Service 2013 2012
(In millions)
Direct $ 2,913 $ 2,934 $ (21)
Governmental Aggregation 1,185 1,029 156
Mass Market 448 352 96
POLR and Structured 1,279 1,265 14
Wholesale(1) 341 751 (410)
Transmission 144 160 (16)
RECs 2 7 (5)
Other 183 146 37
Total Revenues $ 6,495 $ 6,644 $ (149)
(1) Excludes wholesale revenues classified as Discontinued Operations.
For the Years Ended
December 31, Increase
(Decrease)
MWH Sales by Channel 2013 2012
(In thousands)
Direct 56,145 54,528 3.0 %
Governmental Aggregation 20,859 17,287 20.7 %
Mass Market 6,761 5,212 29.7 %
POLR and Structured 24,805 22,664 9.4 %
Wholesale(1) 1,250 4,091 (69.4)%
Total MWH Sales 109,820 103,782 5.8 %
(1) Excludes wholesale sales classified as Discontinued Operations.
The following tables summarize the price and volume factors contributing to changes in revenues: