DOW JONES NEWSWIRES RRI Energy Inc. (RRI) swung to a second-quarter loss on prior-year earnings from discontinued operations as revenue rose. The operator of power plants in mostly deregulated states, sells its output at market prices rather than regulated rates. It has suffered along with peers in recent years as reduced power demand pushed down prices. RRI plans to merge with Mirant Corp. (MIR) this year, aiming to cut costs by combining corporate functions in a so-called at-market transaction, designed to give investors of neither company a premium. RRI posted a loss of $172.1 million, or 49 cents a share, compared with a year-earlier profit of $803.6 million, or $2.29 a share. On a continuing operations basis, the loss widened to 50 cents a share from 30 cents. The latest period included $80 million in merger- and derivative-related losses while the prior-year quarter included $7 million in derivative gains. Revenue rose 2.7% to $400.2 million as generation volume rose 2.3%. Analysts surveyed by Thomson Reuters expected a loss of 15 cents a share on $402 million in revenue. Shares of the operator of plants mostly in California and the Mid-Atlantic region closed Thursday at $3.94 and were inactive premarket. -By Matt Jarzemsky, Dow Jones Newswires; 212-416-2240; matthew.jarzemsky@dowjones.com
