Allegheny Power 2014 Annual Report Download - page 42

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27
CES — 2013 Compared with 2012
Net income decreased $435 million in 2013, compared to 2012. Impairment charges of $473 million associated with the deactivation
of the Hatfield and Mitchell plants and a $149 million loss on debt redemptions were partially offset by lower Pension and OPEB
mark-to-market adjustments of $322 million. Excluding these charges, year over year earnings were impacted by lower capacity
revenue as a result of lower auction clearing prices, and lower unit pricing reflecting lower energy prices, partially offset by increased
contract sales volumes.
Revenues —
Total revenues decreased $146 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 Structured Sales channels. The 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)
Contract Sales:
Direct $ 2,913 $ 2,934 $ (21)
Governmental Aggregation 1,185 1,029 156
Mass Market 448 352 96
POLR 858 990 (132)
Structured Sales 421 275 146
Total Contract Sales 5,825 5,580 245
Wholesale(1) 341 751 (410)
Transmission 144 160 (16)
RECs 2 7 (5)
Other 186 146 40
Total Revenues $ 6,498 $ 6,644 $ (146)
(1) Excludes wholesale revenues classified in Discontinued Operations.
For the Years Ended
December 31, Increase
MWH Sales by Channel 2013 2012 (Decrease)
(In thousands)
Contract Sales:
Direct 56,145 54,528 3.0 %
Governmental Aggregation 20,859 17,287 20.7 %
Mass Market 6,761 5,212 29.7 %
POLR 15,758 17,927 (12.1)%
Structured Sales 9,047 4,737 91.0 %
Total Contract Sales 108,570 99,691 8.9 %
Wholesale(1) 1,250 4,091 (69.4)%
Total MWH Sales 109,820 103,782 5.8 %
(1) Excludes wholesale sales classified in Discontinued Operations.