NRG moves to consolidate in Houston

Power giant reports an $82 million loss and revenue of $8.1 billion in first quarter

NRG Energy, one of the state’s largest generators and sellers of electricity, said Thursday it will consolidate its corporate headquarters, now also in Princeton, N.J., solely in Houston.

“Texas is already our largest customer and employee base and a great place to do business,” NRG President and CEO Mauricio Gutierrez said. “And Houston continues to be at the forefront of energy and technology, with one of the most diverse workforces in the country.”

The announcement came as NRG reported an $82 million loss in the first three months of the year, compared with a $121 million profit during the same period in 2020. Revenue grew to $8.1 billion from $2 billion in the first quarter of 2020, but costs outweighed the increase.

NRG, whose brands include Reliant Energy, Green Mountain Energy and Cirro Energy, said it took a first quarter hit of $967 million from the winter storm that knocked out power across the state.

Included in that figure is a $95 million payment to help the state’s power grid manager, the Electric Reliability Council of Texas, cover a $3 billion shortfall. The cost is being shared by buyers and sellers who participate in the market.

The company said it also lost $385 million because of the emergency pricing imposed by ERCOT during the winter storm.

“NRG is committed to helping Texans recover from the impacts of (the winter storm) and working with our stakeholders on lasting solutions to improve resilience in the ERCOT market,” Gutierrez said in a Thursday release. “We remain focused on advancing our customer-centric strategy and strengthening our platform.”

Also Thursday, NRG said it had appointed Alberto Fornaro as executive vice president and CFO effective June 1. Fornaro will succeed Gaetan Frotte, who has served as interim CFO since Feb. 4, replacing Kirkland Andrews who stepped down. Frotte will resume his responsibilities as senior vice president and treasurer.

CenterPoint Energy

The regulated utility that delivers power to the Houston area on Thursday said it swung to a profit in the first quarter from a loss in the same period last year.

The utility, which has about 1.1 million gas customers in the Houston area, reported a $363 million profit in the first three months of the year, compared with a $1.2 billion loss during the same period in 2020. Revenue rose 18 percent to $2.55 billion in the period from $2.17 billion in the first quarter of 2020.

CenterPoint said that it has worked with its suppliers to reduce the costs of natural gas, decreasing the amount from $2.5 billion to $2.2 billion, which customers will see reflected in their natural gas bills.

In April, CenterPoint disclosed a 99-cent increase, effective Monday. This month’s increase raises the residential customer charge to $18.38 from $17.39. Non-residential customers will pay as much as $23.22 more per month. The larger bills, CenterPoint said, will cover capital costs, but not expenses related to the February power crisis.

As CenterPoint focuses on reducing and eliminating its midstream operations, it has entered an agreement to sell its Arkansas and Oklahoma gas distribution companies. The $1.7 billion deal is expected to close in the second half of 2021, subject to regulatory approval, the company said.