PGE shields near-term margins via coal, low-cost gas contracts; long-term gas exposure rises

PGE can temporarily mitigate high gas prices by drawing on earlier lower-priced gas agreements and shifting generation toward coal, which is now more competitive. However, sustained high gas prices will pressure the company's long-term strategy as it plans to increase gas-fired generation. The market impact is limited to PGE's earnings outlook and Polish power pricing.