How did Vistra's East segment perform in 2023?

Vistra's East segment, which operates in the PJM market, had a notable performance in 2023 despite some challenges. Here are the key points: 1. **Capacity Auction Results**: In the PJM capacity auction for the 2022/2023 planning year, Vistra's East segment cleared a total of 7,218 megawatts (MW) at a weighted average clearing price of $66.89 per megawatt-day. This resulted in approximately $176 million in capacity revenue for the planning year. 2. **Revenue from Retail Sales**: In addition to the capacity auction revenue, Vistra's East segment generated incremental revenue of $55-$60 million from existing retail bilateral sales above the capacity auction clearing price. This highlights the segment's diversified revenue streams. 3. **Market Conditions**: The East segment faced market conditions that were both a challenge and an opportunity. Hotter-than-usual temperatures in Texas led to higher wholesale power prices, which negatively impacted earnings due to the lower prices that Vistra had set for consumers before the summer. However, milder weather in other markets kept prices low, and Vistra's diversified operations helped to mitigate these effects. 4. **Hedging Impact**: Vistra's hedging strategy played a significant role in managing risk. The company hedged approximately 90% of its expected generation volumes for the balance of 2023 through 2025, which helped to lock in prices and manage exposure to volatile market conditions. In conclusion, Vistra's East segment performed well in 2023, achieving substantial capacity revenue and managing to grow revenue from retail sales. Despite challenging market conditions, the segment's diversified operations and hedging strategies helped to maintain financial stability and profitability.