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Segment Reporting
 9 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting
14. Segment Reporting
Our determination of reportable business segments considers the strategic operating units under which we make financial decisions, allocate resources and assess performance of our business. Our reportable business segments are retail electricity and retail natural gas. The retail electricity segment consists of electricity sales and transmission to residential and commercial customers, and related services. The retail natural gas segment consists of natural gas sales to, and natural gas transportation and distribution for, residential and commercial customers. Corporate and other consists of expenses and assets of the retail electricity and natural gas segments that are managed at a consolidated level such as general and administrative expenses. Asset optimization activities are also included in Corporate and other.
For the three months ended September 30, 2022 and 2021, we recorded asset optimization revenues of $22.6 million and $9.6 million and asset optimization cost of revenues of $20.9 million and $9.9 million, respectively, and for the nine months ended September 30, 2022 and 2021, we recorded asset optimization revenues of $68.4 million and $43.1 million and asset optimization cost of revenues of $68.9 million and $43.6 million, respectively, which are presented on a net basis in asset optimization revenues.
We use retail gross margin to assess the performance of our operating segments. We define retail gross margin as gross profit less (i) net asset optimization (expenses) revenues, (ii) net (losses) gains on non-trading derivative instruments, (iii) net current period cash settlements on non-trading derivative instruments, and (iv) gains (losses) from non-recurring events (including non-recurring market volatility).
We deduct net (losses) gains on non-trading derivative instruments, excluding current period cash settlements, from the retail gross margin calculation in order to remove the non-cash impact of net gains and losses on these derivative instruments. We deduct net gains (losses) from non-recurring events (including non-recurring market volatility) to ensure retail gross margin reflects operating performance that is not distorted by non-recurring events or extreme market volatility. Retail gross margin should not be considered an alternative to, or more meaningful than, gross profit, its most directly comparable financial measure calculated and presented in accordance with GAAP.
Below is a reconciliation of retail gross margin to gross profit (in thousands):

  
Three Months Ended September 30,Nine Months Ended September 30,
  2022202120222021
Reconciliation of Retail Gross Margin to Gross Profit
Total Revenue$118,859 $97,979 $343,112 $293,179 
Less:
Retail cost of revenues102,212 40,298 232,621 198,642 
Gross Profit16,647 57,681 110,491 94,537 
Less:
Net asset optimization revenue (expense)1,672 (288)(480)(542)
Net, (loss) gain on non-trading derivative instruments(1,413)32,262 54,570 58,214 
Net, Cash settlements on non-trading derivative instruments(14,068)(5,660)(36,067)(6,054)
Non-recurring event - Winter Storm Uri— 497 9,565 (64,403)
Retail Gross Margin$30,456 $30,870 $82,903 $107,322 
Financial data for business segments are as follows (in thousands):
Three Months Ended September 30, 2022
Retail
Electricity (a)		Retail
Natural Gas		Corporate
and Other		EliminationsConsolidated
Total revenues$104,970 $12,217 $1,672 $— $118,859 
Retail cost of revenues92,816 9,396 — — 102,212 
Gross Profit$12,154 $2,821 $1,672 $— $16,647 
Less:
Net asset optimization revenue— — 1,672 — 1,672 
Net, (loss) gain on non-trading derivative instruments(5,290)3,877 — — (1,413)
Current period settlements on non-trading derivatives(11,063)(3,005)— — (14,068)
Retail Gross Margin$28,507 $1,949 $— $— $30,456 
Total Assets at September 30, 2022$1,743,817 $84,612 $314,672 $(1,814,947)$328,154 
Goodwill at September 30, 2022$117,813 $2,530 $— $— $120,343 
(a) Retail Electricity includes related services.

Three Months Ended September 30, 2021
Retail
Electricity		Retail
Natural Gas		Corporate
and Other		EliminationsConsolidated
Total revenues$92,104 $6,163 $(288)$— $97,979 
Retail cost of revenues41,035 (737)— — 40,298 
Gross Profit$51,069 $6,900 $(288)$— $57,681 
Less:
Net asset optimization expense— — (288)— (288)
Net, gain on non-trading derivative instruments27,558 4,704 — — 32,262 
Current period settlements on non-trading derivatives(5,199)(461)— — (5,660)
Non-recurring event - Winter Storm Uri497 — — — 497 
Retail Gross Margin$28,213 $2,657 $— $— $30,870 
Total Assets at December 31, 2021$1,527,456 $7,320 $311,556 $(1,491,056)$355,276 
Goodwill at December 31, 2021$117,813 $2,530 $— $— $120,343 
Nine Months Ended September 30, 2022
Retail
Electricity		Retail
Natural Gas		Corporate
and Other		EliminationsConsolidated
Total revenues$275,301 $68,291 $(480)$— $343,112 
Retail cost of revenues189,092 43,529 — — 232,621 
Gross Profit$86,209 $24,762 $(480)$— $110,491 
Less:
Net asset optimization expense— — (480)— (480)
Net gain on non-trading derivatives42,557 12,013 — — 54,570 
Current period settlements on non-trading derivatives(28,317)(7,750)— — (36,067)
Non-recurring event - Winter Storm Uri9,565 — — — 9,565 
Retail Gross Margin$62,404 $20,499 $— $— $82,903 
Total Assets at September 30, 2022$1,743,817 $84,612 $314,672 $(1,814,947)$328,154 
Goodwill at September 30, 2022$117,813 $2,530 $— $— $120,343 
Nine Months Ended September 30, 2021
Retail
Electricity		Retail
Natural Gas		Corporate
and Other		EliminationsConsolidated
Total revenues$242,548 $51,173 $(542)$— $293,179 
Retail cost of revenues179,762 18,880 — — 198,642 
Gross Profit$62,786 $32,293 $(542)$— $94,537 
Less:
Net asset optimization expense— — (542)— (542)
Net gain on non-trading derivatives51,957 6,257 — — 58,214 
Current period settlements on non-trading derivatives(5,246)(808)— — (6,054)
Non-recurring event - Winter Storm Uri(64,403)— — — (64,403)
Retail Gross Margin$80,478 $26,844 $— $— $107,322 
Total Assets at December 31, 2021$1,527,456 $7,320 $311,556 $(1,491,056)$355,276 
Goodwill at December 31, 2021$117,813 $2,530 $— $— $120,343