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NRG Energy Sees $750 Million Loss Following Texas Cold Snap

(Bloomberg) — NRG Energy Inc. withdrew an earlier full-year profit forecast and said it expects a $750 million loss due to the brutal cold snap that froze Texas and led to sweeping blackouts across the state.

“Based on the new information available to us today, we are unable to provide financial guidance due to the unprecedented and unpredictable market outcomes resulting from winter storm Uri,” Chief Executive Officer Mauricio Gutierrez said Wednesday in a statement.

NRG is the latest power company to report taking a hit from the bitter cold after electricity prices surged to $9,000 a megawatt-hour during the blackouts and providers had to turn to the spot market to meet contractual obligations. State lawmakers are considering a plan to claw back some of those payments, though it’s faced significant barriers.

NRG, which operates power plants and provides retail services to homes and businesses in the state, previously projected full-year earnings of as much as $2.6 billion. The shares dropped 11% before the start of regular trading in New York.

Also See: Texas Power Firm Files for Bankruptcy After Energy Crisis

The historic outage caused as much as $129 billion in economic losses, and the impact on individual companies is only starting to emerge. More than 4 million homes and businesses were left without power, heat or water for days. Dozens of people died.

Vistra Corp. last month said the blackouts would cost it $900 million to $1.3 billion, days after Exelon Corp. said it expects its first-quarter net income will be reduced by $560 million to $710 million because of the outages.

(Updates with clawback proposal in third paragraph. An earlier version corrected time references in the last paragraph.)

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