NEWARK, N.J., March 8, 2021 /PRNewswire/ -- Genie Energy
(NYSE: GNE, GNEPRA) today provided additional information on the
financial impact to the company of Winter Storm Uri, which
disrupted the Texas electricity
market in mid-February 2021.
The unprecedented severity of the storm triggered an exceptional
increase in electricity demand. As a result, wholesale prices
in the Electric Reliability Council of Texas ("ERCOT") service area reached or
exceeded maximum allowed clearing prices for sustained periods.
Because complete supply costs are not yet available, Genie
Energy is not yet able to fully quantify the financial impact of
Winter Storm Uri. However, invoices received to date as well
as other costs incurred place the loss from the situation in the
first quarter of 2021 at approximately $12.5
million. The final amount of the losses is still
unknown.
The company plans to provide updates when it announces fourth
quarter 2020 results on March
11th and when it gains access to complete price
and volume settlement data from its supplier. Moreover, the
results of formal disputes regarding pricing and volume settlement
and corrective actions that Genie and other market participants are
seeking from the State of Texas,
ERCOT, the Public Utility Commission of Texas, and other regulatory agencies of
jurisdiction may impact the final cost.
The company serves approximately 10,000 electricity meters in
ERCOT's service territory comprising approximately 21,000
residential customer equivalents, or approximately 5% of its global
customer base.
Despite the evolving impact of the Winter Storm Uri in
Texas, Genie Energy has
consistently maintained, and continues to maintain, sufficient
liquidity to conduct its operations in the ordinary course of
business and management remains confident that the company has the
resources to address the ultimate impacts from this extraordinary
event.
In this press release, all statements that are not purely
about historical facts, including, but not limited to, those in
which we use the words "believe," "anticipate," "expect," "plan,"
"intend," "estimate, "target" and similar expressions, are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. While these
forward-looking statements represent our current judgment of what
may happen in the future, actual results may differ materially from
the results expressed or implied by these statements due to
numerous important factors, including, but not limited to, those
described in our most recent report on SEC Form 10-K (under the
headings "Risk Factors" and "Management's Discussion and Analysis
of Financial Condition and Results of Operations"), which may be
revised or supplemented in subsequent reports on SEC Forms 10-Q and
8-K. We are under no obligation, and expressly disclaim any
obligation, to update the forward-looking statements in this press
release, whether as a result of new information, future events or
otherwise.
ABOUT GENIE ENERGY LTD:
Genie Energy Ltd.
(NYSE: GNE, GNEPRA), is a global provider of energy services.
The Genie Retail Energy division supplies electricity, including
electricity from renewable resources, and natural gas to
residential and small business customers in the United States. The Genie Retail Energy
International division supplies customers in Europe and Asia. The Genie Energy
Services division includes Diversegy, a commercial and industrial
brokerage and consultative services company, and Genie Solar Energy
and Prism Solar, which design, supply and install commercial solar
solutions. For more information, visit Genie.com.
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SOURCE Genie Energy Ltd.