NRG Energy paying more for coal, natural gas during 2013

NRG Energy (NYSE:NRG) is paying more for natural and coal so far during 2013, according to statistics released in connection with the company’s second quarter earnings report on Aug. 9.

 During the second quarter of 2013, NRG paid $4.15/mmBtu for natural gas compared to $2.46 mm/Btu during 2Q12. Year-to-date NRG is paying $4.37 for gas, compared to $2.59 during the same point in 2012, according to company statistics.

Likewise, NRG’s average coal costs also appear to be up during 2013. NRG paid an average cost of $45.17/ton for coal during 2Q13 compared to $34.80/ton for coal during 2Q12. So far in 2013, NRG coal costs average $45.40/ton compared to $35.13/ton for the same point in 2012.

The costs appear to be an average price of blended Powder River Basin, bituminous coal and lignite coal purchased by the company.

NRG is also burning more coal in 2013 than it did in 2012. NRG consumed 8.9 million tons of coal in 2Q13 compared to 5.9 million tons in 2Q12. Year-do-date coal consumption is 17.6 million tons compared to 10.5 million tons at the same point in 2012, NRG reported.

When figured on a per/mmBtu basis, similar to natural gas prices, NRG paid $2.60 for coal in the most recent quarter compared to $2.12/mmBtu for coal in 2Q12. Year-to-date coal costs are $2.59/mmBtu compared to $2.15/mmBtu at the same point in 2012, NRG noted.

It should be noted that the 2012 figures include statistics for only “Classic NRG assets,” according the NRG presentation. This would presumably mean it does not include the units that NRG acquired as part of its merger with GenOn.

The fuel statistics data can be found on slide 32 of NRG’s quarterly earnings presentation.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.