OTCPK:JENGQ - Post by User
Post by
prabhatmalikon May 17, 2014 10:31am
361 Views
Post# 22572838
Why they missed by $10 million shortfall?
Why they missed by $10 million shortfall?This is what Ms. MacDonald said during C.C.
Where we felt the greatest impact of cold weather was actually seen in the electricity markets. Price spikes were seen throughout the quarter with daily Ahead prices in New York at one point hitting a high of $600 per megawatt versus normal price of $80. Philadelphia Day Ahead prices peaked at over 1,000 per megawatt more than 20 times higher than normal price. Even a small price increase in consumption over normal levels results in a significant gross margin in this price environment. The total impact largely due to electricity during Q4 was approximately $50 million in reduced margin. This electricity price consumption combination was unprecedented in the history of Just Energy.