| Where does Reliant make the most money? Here?….
Houston-based Reliant Energy reported its first quarter earnings this week and they didn’t do too badly, according to the AP story we ran:
“… earnings leaped 46 percent, helped by successful hedges and better wholesale margins.
The company earned $377.2 million, or $1.07 per share, compared with $258.7 million, or 74 cents per share, in the first quarter of 2007.
Revenue jumped 19 percent to $2.82 billion, from $2.36 billion a year earlier.”
| …. or here?
Most of us know Reliant as the local electric retailer with its name on the stadium. And since the deregulation of retail electricity in Texas many have gotten used to directing anger over high bills at Reliant (and others, but Reliant’s one of the biggest).
But retail electric sales are not the company’s strongest point on the income statement. Rather it’s sale of wholesale power generated in other states where Reliant owns power plants. (It has just one in Texas and it’s trying to get rid of that one).
Wholesale power sales rose 67 percent to $142 million in the first quarter while profit from retail power sales fell 2.9 percent to $66 million.