Allegheny Power 2013 Annual Report Download - page 47

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32
For the Years Ended
December 31, Increase
MWH Sales by Channel 2012 2011 (Decrease)
(In thousands)
Pre-merger Companies:
Direct 53,099 46,187 15.0 %
Governmental Aggregation 17,287 15,786 9.5 %
Mass Market 5,212 1,936 169.2 %
POLR and Structured 16,212 15,340 5.7 %
Wholesale(1) 96 2,916 (96.7)%
Allegheny companies(2) 29,697 26,379 12.6 %
Intra-segment eliminations (17,821) (1,806) 886.8 %
Total MWH Sales 103,782 106,738 (2.8)%
Allegheny companies(2)
Direct 1,429 1,390 2.8 %
POLR 5,874 7,974 (26.3)%
Structured 578 1,492 (61.3)%
Wholesale(1) 21,816 15,523 40.5 %
Total MWH Sales 29,697 26,379 12.6 %
(1) Excludes wholesale sales classified in Discontinued Operations.
(2) Allegheny results include 12 months in 2012 and 10 months in 2011.
The following tables summarize the price and volume factors contributing to changes in revenues (excluding the Allegheny
companies):
Source of Change in Revenues
Increase (Decrease)
MWH Sales Channel:
Sales
Volumes Prices
Gain on
Settled
Contracts
Capacity
Revenue Total
(In millions)
Direct $ 393 $ (168) $ — $ — $ 225
Governmental Aggregation 98 (101) — — (3)
Mass Market 219 4 — — 223
POLR and Structured Sales 16 (61) — — (45)
Wholesale(1) (90) (1) 276 (104) 81
(1) Excludes wholesale sales classified in Discontinued Operations.
The increase in Direct revenues of $225 million resulted from higher sales volumes due to the acquisition of new customers, partially
offset by lower unit prices. The decrease in Governmental Aggregation of $3 million resulted from lower unit prices, partially offset
from the acquisition of new customers primarily in Illinois. The increase in Mass Market of $223 million resulted from the acquisition
of new customers primarily in Ohio and Pennsylvania, partially offset by lower unit prices. The Direct, Governmental Aggregation
and Mass Market customer base increased to 2.6 million customers in December 2012 as compared to 1.8 million in December
2011.
The decrease in POLR and structured revenues of $45 million was due primarily to lower sales volumes at the Ohio Companies,
ME, PN and other non-associated companies. Revenues were also adversely impacted by lower unit prices, which were partially
offset by increased structured sales. The decline in POLR sales reflects a continued strategic focus on other sales channels.
Wholesale revenues increased $81 million due to increased gains of $276 million on financially settled contracts, partially offset by
$91 million decrease in short-term (net hourly positions) transactions resulting primarily from reduced generation and a $104 million
decrease in capacity revenues.