x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the Quarterly Period Ended: June 30, 2017 | ||
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware (State or other jurisdiction of incorporation or organization) | 41-1724239 (I.R.S. Employer Identification No.) | |
804 Carnegie Center, Princeton, New Jersey (Address of principal executive offices) | 08540 (Zip Code) |
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | Emerging growth company o | |||
(Do not check if a smaller reporting company) |
• | NRG's ability to achieve the expected benefits of its Transformation Plan; |
• | The potential adverse effects of the GenOn Entities' filings under Chapter 11 of the Bankruptcy Code and restructuring transactions on NRG's operations, management and employees and the risks associated with operating NRG's business during the restructuring process; |
• | Risks and uncertainties associated with the GenOn Entities' Chapter 11 Cases including the ability to achieve anticipated benefits therefrom; |
• | General economic conditions, changes in the wholesale power markets and fluctuations in the cost of fuel; |
• | Volatile power supply costs and demand for power; |
• | Hazards customary to the power production industry and power generation operations such as fuel and electricity price volatility, unusual weather conditions (including wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to fuel supply costs or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission or gas pipeline system constraints and the possibility that NRG may not have adequate insurance to cover losses as a result of such hazards; |
• | The effectiveness of NRG's risk management policies and procedures, and the ability of NRG's counterparties to satisfy their financial commitments; |
• | Counterparties' collateral demands and other factors affecting NRG's liquidity position and financial condition; |
• | NRG's ability to operate its businesses efficiently and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations; |
• | NRG's ability to enter into contracts to sell power and procure fuel on acceptable terms and prices; |
• | The liquidity and competitiveness of wholesale markets for energy commodities; |
• | Government regulation, including compliance with regulatory requirements and changes in market rules, rates, tariffs and environmental laws; |
• | Changes in law, including judicial decisions; |
• | Price mitigation strategies and other market structures employed by ISOs or RTOs that result in a failure to adequately and fairly compensate NRG's generation units; |
• | NRG's ability to mitigate forced outage risk for units subject to capacity performance requirements in PJM, performance incentives in ISO-NE, and scarcity pricing in ERCOT; |
• | NRG's ability to borrow funds and access capital markets, as well as NRG's substantial indebtedness and the possibility that NRG may incur additional indebtedness going forward; |
• | Operating and financial restrictions placed on NRG and its subsidiaries that are contained in the indentures governing NRG's outstanding notes, in NRG's Senior Credit Facility, and in debt and other agreements of certain of NRG subsidiaries and project affiliates generally; |
• | Cyber terrorism and inadequate cybersecurity, or the occurrence of a catastrophic loss and the possibility that NRG may not have adequate insurance to cover losses resulting from such hazards or the inability of NRG's insurers to provide coverage; |
• | NRG's ability to develop and build new power generation facilities; |
• | NRG's ability to develop and innovate new products as retail and wholesale markets continue to change and evolve; |
• | NRG's ability to implement its strategy of finding ways to meet the challenges of climate change, clean air and protecting natural resources while taking advantage of business opportunities; |
• | NRG's ability to increase cash from operations through operational and commercial initiatives, corporate efficiencies, asset strategy, and a range of other programs throughout NRG to reduce costs or generate revenues; |
• | NRG's ability to sell assets to NRG Yield, Inc. and to close drop-down transactions; |
• | NRG's ability to achieve its strategy of regularly returning capital to stockholders; |
• | NRG's ability to obtain and maintain retail market share; |
• | NRG's ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives; |
• | NRG's ability to engage in successful mergers and acquisitions activity; |
• | NRG's ability to successfully integrate, realize cost savings and manage any acquired businesses; and |
• | NRG's ability to develop and maintain successful partnering relationships. |
2016 Form 10-K | NRG’s Annual Report on Form 10-K for the year ended December 31, 2016 | |
2023 Term Loan Facility | The Company's $1.9 billion term loan facility due 2023, a component of the Senior Credit Facility | |
ASC | The FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP | |
ASU | Accounting Standards Updates, which reflect updates to the ASC | |
Average realized prices | Volume-weighted average power prices, net of average fuel costs and reflecting the impact of settled hedges | |
BACT | Best Available Control Technology | |
Bankruptcy Code | Chapter 11 of Title 11 the U.S. Bankruptcy Code | |
Bankruptcy Court | United States Bankruptcy Court for the Southern District of Texas, Houston Division | |
BETM | Boston Energy Trading and Marketing LLC | |
BTU | British Thermal Unit | |
CAA | Clean Air Act | |
CAIR | Clean Air Interstate Rule | |
CAISO | California Independent System Operator | |
CDD | Cooling Degree Day | |
CDWR | California Department of Water Resources | |
CEC | California Energy Commission | |
CenterPoint | CenterPoint Energy, Inc. and its subsidiaries, on and after August 31, 2002, and Reliant Energy, Incorporated and its subsidiaries prior to August 31, 2002 | |
CFTC | U.S. Commodity Futures Trading Commission | |
Chapter 11 Cases | Voluntary cases commenced by the GenOn Entities under the Bankruptcy Code in the Bankruptcy Court | |
COD | Commercial Operation Date | |
ComEd | Commonwealth Edison | |
Company | NRG Energy, Inc. | |
CPP | Clean Power Plan | |
CPUC | California Public Utilities Commission | |
CSAPR | Cross-State Air Pollution Rule | |
CVSR | California Valley Solar Ranch | |
D.C. Circuit | U.S. Court of Appeals for the District of Columbia Circuit | |
DGPV Holdco 1 | NRG DGPV Holdco 1 LLC | |
DGPV Holdco 2 | NRG DGPV Holdco 2 LLC | |
Distributed Solar | Solar power projects that primarily sell power to customers for usage on site, or are interconnected to sell power into a local distribution grid | |
DSI | Dry Sorbent Injection | |
Economic gross margin | Sum of energy revenue, capacity revenue, retail revenue and other revenue, less cost of fuels and other cost of sales | |
ELG | Effluent Limitations Guidelines | |
El Segundo Energy Center | NRG West Holdings LLC, the subsidiary of Natural Gas Repowering LLC, which owns the El Segundo Energy Center project | |
EME | Edison Mission Energy | |
Energy Plus Holdings | Energy Plus Holdings LLC | |
EPA | U.S. Environmental Protection Agency |
EPC | Engineering, Procurement and Construction | |
ERCOT | Electric Reliability Council of Texas, the Independent System Operator and the regional reliability coordinator of the various electricity systems within Texas | |
ESCO | Energy Service Company | |
ESP | Electrostatic Precipitator | |
ESPP | NRG Energy, Inc. Amended and Restated Employee Stock Purchase Plan | |
ESPS | Existing Source Performance Standards | |
Exchange Act | The Securities Exchange Act of 1934, as amended | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
FTRs | Financial Transmission Rights | |
GAAP | Accounting principles generally accepted in the U.S. | |
GenConn | GenConn Energy LLC | |
GenOn | GenOn Energy, Inc. | |
GenOn Americas Generation | GenOn Americas Generation, LLC | |
GenOn Americas Generation Senior Notes | GenOn Americas Generation's $695 million outstanding unsecured senior notes consisting of $366 million of 8.5% senior notes due 2021 and $329 million of 9.125% senior notes due 2031 | |
GenOn Entities | GenOn and certain of its wholly owned subsidiaries, including GenOn Americas Generation. that filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court on June 14, 2017 | |
GenOn Senior Notes | GenOn's $1.8 billion outstanding unsecured senior notes consisting of $691 million of 7.875% senior notes due 2017, $649 million of 9.5% senior notes due 2018, and $489 million of 9.875% senior notes due 2020 | |
GHG | Greenhouse Gas | |
GW | Gigawatt | |
GWh | Gigawatt Hour | |
HAP | Hazardous Air Pollutant | |
HDD | Heating Degree Day | |
Heat Rate | A measure of thermal efficiency computed by dividing the total BTU content of the fuel burned by the resulting kWhs generated. Heat rates can be expressed as either gross or net heat rates, depending whether the electricity output measured is gross or net generation and is generally expressed as BTU per net kWh | |
HLBV | Hypothetical Liquidation at Book Value | |
IASB | Independent Accounting Standards Board | |
IFRS | International Financial Reporting Standards | |
ILU | Illinois Union Insurance Company | |
ISO | Independent System Operator | |
ISO-NE | ISO New England Inc. | |
ITC | Investment Tax Credit | |
LaGen | Louisiana Generating, L.L.C. | |
LIBOR | London Inter-Bank Offered Rate | |
LTIPs | Collectively, the NRG Long-Term Incentive Plan, as amended, and the NRG GenOn Long-Term Incentive Plan | |
Marsh Landing | NRG Marsh Landing, LLC (formerly known as GenOn Marsh Landing, LLC) | |
Mass Market | Residential and small commercial customers | |
MATS | Mercury and Air Toxics Standards promulgated by the EPA | |
MDth | Thousand Dekatherms | |
Midwest Generation | Midwest Generation, LLC | |
MISO | Midcontinent Independent System Operator, Inc. | |
MMBtu | Million British Thermal Units |
MW | Megawatts | |
MWh | Saleable megawatt hour net of internal/parasitic load megawatt-hour | |
MWt | Megawatts Thermal Equivalent | |
NAAQS | National Ambient Air Quality Standards | |
NEPOOL | New England Power Pool | |
NERC | North American Electric Reliability Corporation | |
Net Exposure | Counterparty credit exposure to NRG, net of collateral | |
Net Generation | The net amount of electricity produced, expressed in kWhs or MWhs, that is the total amount of electricity generated (gross) minus the amount of electricity used during generation | |
NOL | Net Operating Loss | |
NOx | Nitrogen Oxides | |
NPDES | National Pollutant Discharge Elimination System | |
NPNS | Normal Purchase Normal Sale | |
NRC | U.S. Nuclear Regulatory Commission | |
NRG | NRG Energy, Inc. | |
NRG Yield | Reporting segment including the projects owned by NRG Yield, Inc. | |
NRG Yield 2019 Convertible Notes | $345 million aggregate principal amount of 3.50% Convertible Senior Notes due 2019 issued by NRG Yield, Inc. | |
NRG Yield 2020 Convertible Notes | $287.5 million aggregate principal amount of 3.25% Convertible Notes due 2020 issued by NRG Yield, Inc. | |
NRG Yield, Inc. | NRG Yield, Inc., the owner of 53.4% of the economic interests of NRG Yield LLC with a controlling interest, and issuer of publicly held shares of Class A and Class C common stock | |
NSR | New Source Review | |
Nuclear Decommissioning Trust Fund | NRG's nuclear decommissioning trust fund assets, which are for the Company's portion of the decommissioning of the STP, units 1 & 2 | |
NYAG | State of New York Office of Attorney General | |
NYISO | New York Independent System Operator | |
NYSPSC | New York State Public Service Commission | |
OCI/OCL | Other Comprehensive Income/(Loss) | |
Peaking | Units expected to satisfy demand requirements during the periods of greatest or peak load on the system | |
PER | Peak Energy Rent | |
Petition Date | June 14, 2017 | |
PG&E | Pacific Gas and Electric Company | |
PJM | PJM Interconnection, LLC | |
PM | Particulate Matter | |
PPA | Power Purchase Agreement | |
PSD | Prevention of Significant Deterioration | |
PTC | Production Tax Credit | |
PUCT | Public Utility Commission of Texas | |
RAPA | Resource Adequacy Purchase Agreement | |
RCRA | Resource Conservation and Recovery Act of 1976 | |
REMA | NRG REMA LLC, which leases a 100% interest in the Shawville generating facility and 16.7% and 16.5% interests in the Keystone and Conemaugh generating facilities, respectively | |
Repowering | Technologies utilized to replace, rebuild, or redevelop major portions of an existing electrical generating facility to achieve a substantial emissions reduction, increase facility capacity and improve system efficiency | |
Restructuring Support Agreement | Restructuring Support and Lock-Up Agreement, dated as of June 12, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, the subsidiaries signatory thereto, NRG Energy, Inc. and the noteholders signatory thereto |
Retail | Reporting segment that includes NRG's residential and small commercial businesses which go to market as Reliant, NRG and other brands owned by NRG, as well as Business Solutions | |
Revolving Credit Facility | The Company’s $2.5 billion revolving credit facility, a component of the Senior Credit Facility. The revolving credit facility consists of $289 million of Tranche A Revolving Credit Facility, due 2018, and $2.2 billion of Tranche B Revolving Credit Facility, due 2021 Prior to June 30, 2016, the Company's $2.5 billion revolving credit facility due 2018, a component of the Senior Credit Facility. On June 30, 2016, the Company replaced the Senior Credit Facility, including the Revolving Credit Facility | |
RGGI | Regional Greenhouse Gas Initiative | |
RMR | Reliability Must-Run | |
ROFO Agreement | Second Amended and Restated Right of First Offer Agreement between the Company and NRG Yield, Inc. | |
RPV Holdco | NRG RPV Holdco 1 LLC | |
RTO | Regional Transmission Organization | |
SCE | Southern California Edison | |
SDG&E | San Diego Gas & Electric Company | |
SEC | U.S. Securities and Exchange Commission | |
Securities Act | The Securities Act of 1933, as amended | |
Senior Credit Facility | NRG's senior secured credit facility, compromised of the Revolving Credit Facility and the 2023 Term Loan Facility Prior to June 30, 2016, the Company's senior secured facility, comprised of the Term Loan Facility and the Revolving Credit Facility. On June 30, 2016, the Company replaced the Senior Credit Facility | |
Senior Notes | As of June 30, 2017, the Company’s $5.4 billion outstanding unsecured senior notes, consisting of $398 million of 7.625% senior notes due 2018, $207 million of 7.875% senior notes due 2021, $992 million of 6.25% senior notes due 2022, $869 million of 6.625% senior notes due 2023, $733 million of 6.25% senior notes due 2024, $1.0 billion of 7.25% senior notes due 2026 and $1.25 billion of 6.625% senior notes due 2027 | |
Settlement Agreement | A settlement agreement and any other documents necessary to effectuate the settlement among NRG, GenOn, and certain holders of senior unsecured notes of GenOn Americas Generation and GenOn, and certain of GenOn's direct and indirect subsidiaries | |
Seward | The Seward Power Generating Station, a 525 MW coal-fired facility in Pennsylvania | |
Shelby | The Shelby County Generating Station, a 352 MW natural gas-fired facility in Illinois | |
SO2 | Sulfur Dioxide | |
STP | South Texas Project — nuclear generating facility located near Bay City, Texas in which NRG owns a 44% interest | |
S&P | Standard & Poor's | |
TCPA | Telephone Consumer Protection Act | |
Term Loan Facility | Prior to June 30, 2016, the Company's $2.0 billion term loan facility due 2018, a component of the Senior Credit Facility. | |
TSA | Transportation Services Agreement | |
TWCC | Texas Westmoreland Coal Co. | |
U.S. | United States of America | |
U.S. DOE | U.S. Department of Energy | |
Utility Scale Solar | Solar power projects, typically 20 MW or greater in size (on an alternating current basis), that are interconnected into the transmission or distribution grid to sell power at a wholesale level | |
VaR | Value at Risk | |
VIE | Variable Interest Entity | |
Walnut Creek | NRG Walnut Creek, LLC, the operating subsidiary of WCEP Holdings, LLC, which owns the Walnut Creek project | |
WST | Washington-St. Tammany Electric Cooperative, Inc. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(In millions, except for per share amounts) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Operating Revenues | |||||||||||||||
Total operating revenues | $ | 2,701 | $ | 2,248 | $ | 5,083 | $ | 4,907 | |||||||
Operating Costs and Expenses | |||||||||||||||
Cost of operations | 1,837 | 1,443 | 3,696 | 3,271 | |||||||||||
Depreciation and amortization | 260 | 262 | 517 | 528 | |||||||||||
Impairment losses | 63 | 56 | 63 | 56 | |||||||||||
Selling, general and administrative | 223 | 266 | 482 | 520 | |||||||||||
Acquisition-related transaction and integration costs | 1 | 5 | 2 | 6 | |||||||||||
Development activity expenses | 18 | 18 | 35 | 44 | |||||||||||
Total operating costs and expenses | 2,402 | 2,050 | 4,795 | 4,425 | |||||||||||
Other income - affiliate | 42 | 48 | 90 | 96 | |||||||||||
Gain/(loss) on sale of assets | 2 | (83 | ) | 4 | (83 | ) | |||||||||
Operating Income | 343 | 163 | 382 | 495 | |||||||||||
Other Income/(Expense) | |||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | (3 | ) | 4 | 2 | (3 | ) | |||||||||
Gain/(impairment loss) on investment | — | 7 | — | (139 | ) | ||||||||||
Other income, net | 10 | 5 | 18 | 22 | |||||||||||
Loss on debt extinguishment, net | — | (80 | ) | (2 | ) | (69 | ) | ||||||||
Interest expense | (247 | ) | (237 | ) | (471 | ) | (479 | ) | |||||||
Total other expense | (240 | ) | (301 | ) | (453 | ) | (668 | ) | |||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 103 | (138 | ) | (71 | ) | (173 | ) | ||||||||
Income tax expense/(benefit) | 4 | 25 | (1 | ) | 47 | ||||||||||
Income/(Loss) from Continuing Operations | 99 | (163 | ) | (70 | ) | (220 | ) | ||||||||
Loss from discontinued operations, net of income tax | (741 | ) | (113 | ) | (775 | ) | (9 | ) | |||||||
Net Loss | (642 | ) | (276 | ) | (845 | ) | (229 | ) | |||||||
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interests | (16 | ) | (5 | ) | (55 | ) | (40 | ) | |||||||
Net Loss Attributable to NRG Energy, Inc. | (626 | ) | (271 | ) | (790 | ) | (189 | ) | |||||||
Dividends for preferred shares | — | — | — | 5 | |||||||||||
Gain on redemption of preferred shares | — | (78 | ) | — | (78 | ) | |||||||||
Loss Available for Common Stockholders | $ | (626 | ) | $ | (193 | ) | $ | (790 | ) | $ | (116 | ) | |||
Loss per Share Attributable to NRG Energy, Inc. Common Stockholders | |||||||||||||||
Weighted average number of common shares outstanding — basic and diluted | 316 | 315 | 316 | 315 | |||||||||||
Income/(loss) from continuing operations per weighted average common share — basic and diluted | $ | 0.36 | $ | (0.25 | ) | $ | (0.05 | ) | $ | (0.34 | ) | ||||
Loss from discontinued operations per weighted average common share — basic and diluted | $ | (2.34 | ) | $ | (0.36 | ) | $ | (2.45 | ) | $ | (0.03 | ) | |||
Loss per Weighted Average Common Share — Basic and Diluted | $ | (1.98 | ) | $ | (0.61 | ) | $ | (2.50 | ) | $ | (0.37 | ) | |||
Dividends Per Common Share | $ | 0.03 | $ | 0.03 | $ | 0.06 | $ | 0.18 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Net loss | $ | (642 | ) | $ | (276 | ) | $ | (845 | ) | $ | (229 | ) | |||
Other comprehensive income/(loss), net of tax | |||||||||||||||
Unrealized loss on derivatives, net of income tax expense of $0, $1, $1, and $2 | (5 | ) | (3 | ) | (1 | ) | (35 | ) | |||||||
Foreign currency translation adjustments, net of income tax expense of $0, $0, $0, and $0 | 1 | (3 | ) | 8 | 3 | ||||||||||
Available-for-sale securities, net of income tax expense of $0, $0, $0, and $0 | 1 | (2 | ) | 1 | 1 | ||||||||||
Defined benefit plans, net of income tax expense of $0, $0, $0, and $0 | 27 | — | 27 | 1 | |||||||||||
Other comprehensive income/(loss) | 24 | (8 | ) | 35 | (30 | ) | |||||||||
Comprehensive loss | (618 | ) | (284 | ) | (810 | ) | (259 | ) | |||||||
Less: Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interests | (17 | ) | (16 | ) | (56 | ) | (68 | ) | |||||||
Comprehensive loss attributable to NRG Energy, Inc. | (601 | ) | (268 | ) | (754 | ) | (191 | ) | |||||||
Dividends for preferred shares | — | — | — | 5 | |||||||||||
Gain on redemption of preferred shares | — | (78 | ) | — | (78 | ) | |||||||||
Comprehensive loss available for common stockholders | $ | (601 | ) | $ | (190 | ) | $ | (754 | ) | $ | (118 | ) |
June 30, 2017 | December 31, 2016 | ||||||
(In millions, except shares) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 752 | $ | 938 | |||
Funds deposited by counterparties | 19 | 2 | |||||
Restricted cash | 469 | 446 | |||||
Accounts receivable, net | 1,162 | 1,058 | |||||
Inventory | 713 | 721 | |||||
Derivative instruments | 644 | 1,067 | |||||
Cash collateral paid in support of energy risk management activities | 277 | 150 | |||||
Current assets - held for sale | 33 | 9 | |||||
Prepayments and other current assets | 400 | 404 | |||||
Current assets - discontinued operations | — | 1,919 | |||||
Total current assets | 4,469 | 6,714 | |||||
Property, plant and equipment, net | 15,302 | 15,369 | |||||
Other Assets | |||||||
Equity investments in affiliates | 1,127 | 1,120 | |||||
Notes receivable, less current portion | 9 | 16 | |||||
Goodwill | 662 | 662 | |||||
Intangible assets, net | 1,893 | 1,973 | |||||
Nuclear decommissioning trust fund | 637 | 610 | |||||
Derivative instruments | 226 | 181 | |||||
Deferred income taxes | 211 | 225 | |||||
Non-current assets held-for-sale | 10 | 10 | |||||
Other non-current assets | 659 | 841 | |||||
Non-current assets - discontinued operations | — | 2,961 | |||||
Total other assets | 5,434 | 8,599 | |||||
Total Assets | $ | 25,205 | $ | 30,682 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt and capital leases | $ | 1,042 | $ | 516 | |||
Accounts payable | 757 | 782 | |||||
Accounts payable - affiliate | 17 | 31 | |||||
Derivative instruments | 711 | 1,092 | |||||
Cash collateral received in support of energy risk management activities | 19 | 81 | |||||
Accrued expenses and other current liabilities | 810 | 990 | |||||
Accrued expenses and other current liabilities - affiliate | 164 | — | |||||
Current liabilities - discontinued operations | — | 1,210 | |||||
Total current liabilities | 3,520 | 4,702 | |||||
Other Liabilities | |||||||
Long-term debt and capital leases | 15,842 | 15,957 | |||||
Nuclear decommissioning reserve | 262 | 287 | |||||
Nuclear decommissioning trust liability | 367 | 339 | |||||
Deferred income taxes | 20 | 20 | |||||
Derivative instruments | 293 | 284 | |||||
Out-of-market contracts, net | 219 | 230 | |||||
Non-current liabilities held-for-sale | 13 | 11 | |||||
Other non-current liabilities | 1,135 | 1,151 | |||||
Non-current liabilities - discontinued operations | — | 3,209 | |||||
Total non-current liabilities | 18,151 | 21,488 | |||||
Total Liabilities | 21,671 | 26,190 | |||||
Redeemable noncontrolling interest in subsidiaries | 51 | 46 | |||||
Commitments and Contingencies | |||||||
Stockholders’ Equity | |||||||
Common stock | 4 | 4 | |||||
Additional paid-in capital | 8,383 | 8,358 | |||||
Retained deficit | (4,874 | ) | (3,787 | ) | |||
Less treasury stock, at cost — 101,858,284 and 102,140,814 shares, respectively | (2,392 | ) | (2,399 | ) | |||
Accumulated other comprehensive loss | (100 | ) | (135 | ) | |||
Noncontrolling interest | 2,462 | 2,405 | |||||
Total Stockholders’ Equity | 3,483 | 4,446 | |||||
Total Liabilities and Stockholders’ Equity | $ | 25,205 | $ | 30,682 |
Six months ended June 30, | |||||||
(In millions) | 2017 | 2016 | |||||
Cash Flows from Operating Activities | |||||||
Net loss | $ | (845 | ) | $ | (229 | ) | |
Loss from discontinued operations, net of income tax | (775 | ) | (9 | ) | |||
Loss from continuing operations | (70 | ) | (220 | ) | |||
Adjustments to reconcile net loss to net cash provided by operating activities: | |||||||
Distributions and equity in earnings of unconsolidated affiliates | 26 | 32 | |||||
Depreciation and amortization | 517 | 528 | |||||
Provision for bad debts | 18 | 20 | |||||
Amortization of nuclear fuel | 24 | 26 | |||||
Amortization of financing costs and debt discount/premiums | 29 | 29 | |||||
Adjustment for debt extinguishment | — | 14 | |||||
Amortization of intangibles and out-of-market contracts | 51 | 82 | |||||
Amortization of unearned equity compensation | 16 | 16 | |||||
Impairment losses | 63 | 195 | |||||
Changes in deferred income taxes and liability for uncertain tax benefits | 8 | 1 | |||||
Changes in nuclear decommissioning trust liability | 2 | 13 | |||||
Changes in derivative instruments | 7 | (7 | ) | ||||
Changes in collateral posted in support of risk management activities | (189 | ) | 323 | ||||
Proceeds from sale of emission allowances | 11 | 17 | |||||
Loss on sale of assets | (22 | ) | 83 | ||||
Changes in other working capital | (379 | ) | (272 | ) | |||
Cash provided by continuing operations | 112 | 880 | |||||
Cash (used) by discontinued operations | (38 | ) | (69 | ) | |||
Net Cash Provided by Operating Activities | 74 | 811 | |||||
Cash Flows from Investing Activities | |||||||
Acquisitions of businesses, net of cash acquired | (16 | ) | (17 | ) | |||
Capital expenditures | (542 | ) | (442 | ) | |||
Increase in notes receivable | 8 | (3 | ) | ||||
Purchases of emission allowances | (30 | ) | (27 | ) | |||
Proceeds from sale of emission allowances | 59 | 25 | |||||
Investments in nuclear decommissioning trust fund securities | (279 | ) | (280 | ) | |||
Proceeds from the sale of nuclear decommissioning trust fund securities | 277 | 267 | |||||
Proceeds from renewable energy grants and state rebates | 8 | 10 | |||||
Proceeds from sale of assets, net of cash disposed of | 35 | 25 | |||||
Investments in unconsolidated affiliates | (30 | ) | 1 | ||||
Other | 18 | 31 | |||||
Cash used by continuing operations | (492 | ) | (410 | ) | |||
Cash used by discontinued operations | (53 | ) | (60 | ) | |||
Net Cash Used by Investing Activities | (545 | ) | (470 | ) | |||
Cash Flows from Financing Activities | |||||||
Payment of dividends to common and preferred stockholders | (19 | ) | (57 | ) | |||
Payment for preferred shares | — | (226 | ) | ||||
Net receipts from settlement of acquired derivatives that include financing elements | 2 | 4 | |||||
Proceeds from issuance of long-term debt | 946 | 3,223 | |||||
Payments for short and long-term debt | (530 | ) | (3,505 | ) | |||
Receivable from affiliate | (125 | ) | — | ||||
Distributions to, net of contributions from, noncontrolling interest in subsidiaries | 14 | (21 | ) | ||||
Payment of debt issuance costs | (36 | ) | (35 | ) | |||
Other - contingent consideration | (10 | ) | (10 | ) | |||
Cash provided/(used) by continuing operations | 242 | (627 | ) | ||||
Cash used by discontinued operations | (224 | ) | 97 | ||||
Net Cash provided/(used) by Financing Activities | 18 | (530 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | (8 | ) | (3 | ) | |||
Change in Cash from discontinued operations | (315 | ) | (32 | ) | |||
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | (146 | ) | (160 | ) | |||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 1,386 | 1,322 | |||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 1,240 | $ | 1,162 |
June 30, 2017 | December 31, 2016 | ||||||
(In millions) | |||||||
Accounts receivable allowance for doubtful accounts | $ | 39 | $ | 29 | |||
Property, plant and equipment accumulated depreciation | 6,180 | 5,711 | |||||
Intangible assets accumulated amortization | 1,698 | 1,687 | |||||
Out-of-market contracts accumulated amortization | 346 | 457 |
June 30, 2017 | December 31, 2016 | June 30, 2016 | December 31, 2015 | ||||||||||||
(In millions) | |||||||||||||||
Cash and cash equivalents | $ | 752 | $ | 938 | $ | 748 | $ | 853 | |||||||
Funds deposited by counterparties | 19 | 2 | 1 | 55 | |||||||||||
Restricted cash | 469 | 446 | 413 | 414 | |||||||||||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ | 1,240 | $ | 1,386 | $ | 1,162 | $ | 1,322 |
(In millions) | |||
Balance as of December 31, 2016 | $ | 2,405 | |
Dividends paid to NRG Yield, Inc. public shareholders | (52 | ) | |
Distributions to noncontrolling interest | (39 | ) | |
Comprehensive loss attributable to noncontrolling interest | (19 | ) | |
Non-cash adjustments to noncontrolling interest | 88 | ||
Contributions from noncontrolling interest | 76 | ||
Sale of assets to NRG Yield, Inc. | 3 | ||
Balance as of June 30, 2017 | $ | 2,462 |
(In millions) | |||
Balance as of December 31, 2016 | $ | 46 | |
Contributions from redeemable noncontrolling interest | 42 | ||
Comprehensive loss attributable to redeemable noncontrolling interest | (37 | ) | |
Balance as of June 30, 2017 | $ | 51 |
Period from April 1, 2017 through June 14, 2017 | Three months ended June 30, 2016 | Period from January 1, 2017 through June 14, 2017 | Six months ended June 30, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Operating revenues | $ | 265 | $ | 398 | $ | 646 | $ | 977 | |||||||
Operating costs and expenses | (327 | ) | (474 | ) | (700 | ) | (941 | ) | |||||||
Gain on sale of assets | — | — | — | 32 | |||||||||||
Other expenses | (54 | ) | (40 | ) | (98 | ) | (84 | ) | |||||||
Loss from operations of discontinued components, before tax | (116 | ) | (116 | ) | (152 | ) | (16 | ) | |||||||
Income tax expense/(benefit) | 8 | — | 9 | (1 | ) | ||||||||||
Loss from operations of discontinued components | (124 | ) | (116 | ) | (161 | ) | (15 | ) | |||||||
Interest income - affiliate | 3 | 3 | 6 | 6 | |||||||||||
Loss from operations of discontinued components, net of tax | (121 | ) | (113 | ) | (155 | ) | (9 | ) | |||||||
Pre-tax loss on deconsolidation | (208 | ) | — | (208 | ) | — | |||||||||
Settlement consideration and services credit | (289 | ) | — | (289 | ) | — | |||||||||
Pension liability assumption | (119 | ) | — | (119 | ) | — | |||||||||
Advisory and consulting fees | (4 | ) | — | (4 | ) | — | |||||||||
Loss on disposal of discontinued components, net of tax | (620 | ) | — | (620 | ) | — | |||||||||
Loss from discontinued operations, net of tax | $ | (741 | ) | $ | (113 | ) | $ | (775 | ) | $ | (9 | ) |
(In millions) | December 31, 2016 | |||
Cash and cash equivalents | $ | 1,034 | ||
Other current assets | 885 | |||
Current assets - discontinued operations | 1,919 | |||
Property, plant and equipment, net | 2,543 | |||
Other non-current assets | 418 | |||
Non-current assets - discontinued operations | 2,961 | |||
Current portion of long term debt and capital leases | 704 | |||
Other current liabilities | 506 | |||
Current liabilities - discontinued operations | 1,210 | |||
Long-term debt and capital leases | 2,050 | |||
Out-of-market contracts | 811 | |||
Other non-current liabilities | 348 | |||
Non-current liabilities - discontinued operations | $ | 3,209 |
1) | Full releases from GenOn and GenOn Americas Generation in favor of NRG, including either a full release or indemnification in favor of NRG for any claims relating to GenOn Mid-Atlantic or REMA and the dismissal of all litigation against NRG. |
2) | NRG will provide settlement cash consideration to GenOn of $261.3 million, which will be paid in cash less any amounts owed to NRG under the intercompany secured revolving credit facility. As of June 30, 2017, GenOn owed NRG approximately $125 million under the intercompany secured revolving credit facility. See Note 14, Related Party Transactions, for further discussion of the intercompany secured revolving credit facility. |
3) | NRG will consent to the cancellation of its interests in the equity of GenOn. The equity interests in the reorganized GenOn will be issued to the holders of the GenOn Senior Notes. |
4) | NRG will retain the pension liability, including payment of approximately $13 million of 2017 pension contributions, for GenOn employees for service provided prior to the completion of the reorganization. GenOn’s pension liability as of June 30, 2017 was approximately $119 million. |
5) | The shared services agreement between NRG and GenOn will be amended such that (i) NRG will provide shared services to GenOn at an annualized rate of $84 million during the pendency of the Chapter 11 Cases, (ii) if the settlement is approved by the bankruptcy court, NRG will provide shared services to GenOn at no charge for two months, and (iii) NRG will then provide an option for up to two, one-month extensions for shared services at an annualized rate of $84 million. See Note 14, Related Party Transactions, for further discussion of the shared services agreement. |
6) | NRG will provide a credit of $28 million to GenOn to apply against amounts owed under the shared services agreement upon emergence from bankruptcy. Any unused amount can be paid in cash at GenOn’s request. The credit was intended to reimburse GenOn for its payment of financing costs. |
7) | NRG agreed to provide GenOn with a letter of credit facility during the pendency of the Chapter 11 Cases, which could be utilized for required letters of credit in lieu of the intercompany secured revolving credit facility. GenOn can no longer utilize the intercompany secured revolving credit facility and, on July 27, 2017, the letter of credit facility was terminated, as GenOn had obtained a separate letter of credit facility with a third party financial institution. See Note 14, Related Party Transactions, for further discussion of the intercompany secured revolver credit facility and the letter of credit facility obtained in July 2017. |
8) | NRG and GenOn have agreed to cooperate to maximize the value of certain development projects. |
1) | The intercompany secured revolving credit facility with NRG; |
2) | The indenture governing the GenOn 7.875% Senior Notes due 2017 (as amended or supplemented from time to time); |
3) | The indenture governing the GenOn 9.500% Notes due 2018 (as amended or supplemented from time to time); |
4) | The indenture governing the GenOn 9.875% Notes due 2020 (as amended or supplemented from time to time); |
5) | The indenture governing the GenOn Americas Generation 8.50% Senior Notes due 2021 (as amended or supplemented from time to time); and |
6) | The indenture governing the GenOn Americas Generation 9.125% Senior Notes due 2031 (as amended or supplemented from time to time). |
As of June 30, 2017 | As of December 31, 2016 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(In millions) | |||||||||||||||
Assets: | |||||||||||||||
Notes receivable (a) | $ | 25 | $ | 24 | $ | 34 | $ | 34 | |||||||
Liabilities: | |||||||||||||||
Long-term debt, including current portion (b) | 17,086 | 17,246 | 16,655 | 16,620 |
As of June 30, 2017 | As of December 31, 2016 | ||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||
(In millions) | |||||||||||||||
Long-term debt, including current portion | $ | 9,398 | $ | 7,848 | $ | 9,205 | $ | 7,415 |
As of June 30, 2017 | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investment in available-for-sale securities (classified within other non-current assets): | |||||||||||||||
Debt securities | $ | — | $ | — | $ | 18 | $ | 18 | |||||||
Available-for-sale securities | 4 | — | — | 4 | |||||||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 11 | — | — | 11 | |||||||||||
U.S. government and federal agency obligations | 45 | — | — | 45 | |||||||||||
Federal agency mortgage-backed securities | — | 71 | — | 71 | |||||||||||
Commercial mortgage-backed securities | — | 17 | — | 17 | |||||||||||
Corporate debt securities | — | 109 | — | 109 | |||||||||||
Equity securities | 319 | — | 61 | 380 | |||||||||||
Foreign government fixed income securities | — | 4 | — | 4 | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | — | — | 1 | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 186 | 535 | 110 | 831 | |||||||||||
Interest rate contracts | — | 39 | — | 39 | |||||||||||
Total assets | $ | 566 | $ | 775 | $ | 189 | $ | 1,530 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | 292 | 496 | 121 | 909 | |||||||||||
Interest rate contracts | — | 95 | — | 95 | |||||||||||
Total liabilities | $ | 292 | $ | 591 | $ | 121 | $ | 1,004 |
As of December 31, 2016 | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Investment in available-for-sale securities (classified within other non-current assets): | |||||||||||||||
Debt securities | $ | — | $ | — | $ | 17 | $ | 17 | |||||||
Available-for-sale securities | 10 | — | — | 10 | |||||||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 25 | — | — | 25 | |||||||||||
U.S. government and federal agency obligations | 72 | 1 | — | 73 | |||||||||||
Federal agency mortgage-backed securities | — | 62 | — | 62 | |||||||||||
Commercial mortgage-backed securities | — | 17 | — | 17 | |||||||||||
Corporate debt securities | — | 84 | — | 84 | |||||||||||
Equity securities | 292 | — | 54 | 346 | |||||||||||
Foreign government fixed income securities | — | 3 | — | 3 | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | — | — | 1 | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 560 | 549 | 90 | 1,199 | |||||||||||
Interest rate contracts | — | 49 | — | 49 | |||||||||||
Total assets | $ | 960 | $ | 765 | $ | 161 | $ | 1,886 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | 494 | 636 | 158 | 1,288 | |||||||||||
Interest rate contracts | — | 88 | — | 88 | |||||||||||
Total liabilities | $ | 494 | $ | 724 | $ | 158 | $ | 1,376 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
Three months ended June 30, 2017 | Six months ended June 30, 2017 | ||||||||||||||||||||||||||||||
(In millions) | Debt Securities | Trust Fund Investments | Derivatives(a) | Total | Debt Securities | Trust Fund Investments | Derivatives(a) | Total | |||||||||||||||||||||||
Beginning balance | $ | 18 | $ | 58 | $ | (56 | ) | $ | 20 | $ | 17 | $ | 54 | $ | (68 | ) | $ | 3 | |||||||||||||
Total gains — realized/unrealized: | |||||||||||||||||||||||||||||||
Included in earnings | — | — | 40 | 40 | 1 | — | 46 | 47 | |||||||||||||||||||||||
Included in nuclear decommissioning obligation | — | 3 | — | 3 | — | 7 | — | 7 | |||||||||||||||||||||||
Purchases | — | — | 5 | 5 | — | — | 9 | 9 | |||||||||||||||||||||||
Transfers into Level 3 (b) | — | — | 3 | 3 | — | — | (5 | ) | (5 | ) | |||||||||||||||||||||
Transfers out of Level 3 (b) | — | — | (3 | ) | (3 | ) | — | — | 7 | 7 | |||||||||||||||||||||
Ending balance as of June 30, 2017 | $ | 18 | $ | 61 | $ | (11 | ) | $ | 68 | $ | 18 | $ | 61 | $ | (11 | ) | $ | 68 | |||||||||||||
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of June 30, 2017 | $ | — | $ | — | $ | 22 | $ | 22 | $ | — | $ | — | $ | 7 | $ | 7 |
(a) | Consists of derivative assets and liabilities, net. |
(b) | Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2. |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||||||||||
Three months ended June 30, 2016 | Six months ended June 30, 2016 | ||||||||||||||||||||||||||||||
(In millions) | Debt Securities | Trust Fund Investments | Derivatives(a) | Total | Debt Securities | Trust Fund Investments | Derivatives(a) | Total | |||||||||||||||||||||||
Beginning balance | $ | 17 | $ | 52 | $ | (2 | ) | $ | 67 | $ | 17 | $ | 54 | $ | (22 | ) | $ | 49 | |||||||||||||
Total gains/(losses) — realized/unrealized: | |||||||||||||||||||||||||||||||
Included in earnings | — | — | 23 | 23 | — | — | 9 | 9 | |||||||||||||||||||||||
Included in OCI | (1 | ) | — | — | (1 | ) | (1 | ) | — | — | (1 | ) | |||||||||||||||||||
Included in nuclear decommissioning obligations | — | (1 | ) | — | (1 | ) | — | (4 | ) | — | (4 | ) | |||||||||||||||||||
Purchases | — | — | 22 | 22 | — | 1 | 27 | 28 | |||||||||||||||||||||||
Transfers into Level 3 (b) | — | — | (20 | ) | (20 | ) | — | — | 7 | 7 | |||||||||||||||||||||
Transfers out of Level 3 (b) | — | — | (5 | ) | (5 | ) | — | — | (3 | ) | (3 | ) | |||||||||||||||||||
Ending balance as of June 30, 2016 | $ | 16 | $ | 51 | $ | 18 | $ | 85 | $ | 16 | $ | 51 | $ | 18 | $ | 85 | |||||||||||||||
Gains/(losses) for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of June 30, 2016 | $ | — | $ | — | $ | 11 | $ | 11 | $ | — | $ | — | $ | (7 | ) | $ | (7 | ) |
(a) | Consists of derivative assets and liabilities, net. |
(b) | Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2. |
Significant Unobservable Inputs | |||||||||||||||||||||||
June 30, 2017 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 57 | $ | 78 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 10 | $ | 115 | $ | 30 | |||||||||||
FTRs | 53 | 43 | Discounted Cash Flow | Auction Prices (per MWh) | (29 | ) | 27 | — | |||||||||||||||
$ | 110 | $ | 121 |
Significant Unobservable Inputs | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 39 | $ | 108 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 11 | $ | 104 | $ | 31 | |||||||||||
FTRs | 51 | 50 | Discounted Cash Flow | Auction Prices (per MWh) | (22 | ) | 17 | — | |||||||||||||||
$ | 90 | $ | 158 |
Significant Unobservable Input | Position | Change In Input | Impact on Fair Value Measurement | |||
Forward Market Price Power | Buy | Increase/(Decrease) | Higher/(Lower) | |||
Forward Market Price Power | Sell | Increase/(Decrease) | Lower/(Higher) | |||
FTR Prices | Buy | Increase/(Decrease) | Higher/(Lower) | |||
FTR Prices | Sell | Increase/(Decrease) | Lower/(Higher) |
Net Exposure (a) (b) | ||
Category by Industry Sector | (% of Total) | |
Utilities, energy merchants, marketers and other | 89 | % |
Financial institutions | 11 | |
Total as of June 30, 2017 | 100 | % |
Net Exposure (a) (b) | ||
Category by Counterparty Credit Quality | (% of Total) | |
Investment grade | 78 | % |
Non-Investment grade/Non-Rated | 22 | |
Total as of June 30, 2017 | 100 | % |
(a) | Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices. |
(b) | The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts. |
As of June 30, 2017 | As of December 31, 2016 | ||||||||||||||||||||||||||||
(In millions, except otherwise noted) | Fair Value | Unrealized Gains | Unrealized Losses | Weighted-average Maturities (In years) | Fair Value | Unrealized Gains | Unrealized Losses | Weighted-average Maturities (In years) | |||||||||||||||||||||
Cash and cash equivalents | $ | 11 | $ | — | $ | — | — | $ | 25 | $ | — | $ | — | — | |||||||||||||||
U.S. government and federal agency obligations | 45 | 2 | — | 11 | 73 | 1 | — | 11 | |||||||||||||||||||||
Federal agency mortgage-backed securities | 71 | 1 | 1 | 24 | 62 | 1 | 1 | 25 | |||||||||||||||||||||
Commercial mortgage-backed securities | 17 | — | — | 24 | 17 | — | 1 | 26 | |||||||||||||||||||||
Corporate debt securities | 109 | 2 | 1 | 10 | 84 | 1 | 2 | 11 | |||||||||||||||||||||
Equity securities | 380 | 245 | — | — | 346 | 214 | — | — | |||||||||||||||||||||
Foreign government fixed income securities | 4 | — | — | 7 | 3 | — | — | 9 | |||||||||||||||||||||
Total | $ | 637 | $ | 250 | $ | 2 | $ | 610 | $ | 217 | $ | 4 |
Six months ended June 30, | |||||||
2017 | 2016 | ||||||
(In millions) | |||||||
Realized gains | $ | 3 | $ | 3 | |||
Realized losses | 3 | 2 | |||||
Proceeds from sale of securities | 277 | 267 |
Total Volume | ||||||||
June 30, 2017 | December 31, 2016 | |||||||
Category | Units | (In millions) | ||||||
Emissions | Short Ton | (2 | ) | — | ||||
Coal | Short Ton | 22 | 35 | |||||
Natural Gas | MMBtu | 45 | (53 | ) | ||||
Oil | Barrel | — | 1 | |||||
Power | MWh | 24 | 7 | |||||
Capacity | MW/Day | (1 | ) | (1 | ) | |||
Interest | Dollars | $ | 3,701 | $ | 3,429 | |||
Equity | Shares | 1 | 1 |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
June 30, 2017 | December 31, 2016 | June 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives designated as cash flow hedges: | |||||||||||||||
Interest rate contracts current | $ | — | $ | — | $ | 9 | $ | 28 | |||||||
Interest rate contracts long-term | 9 | 12 | 19 | 41 | |||||||||||
Total derivatives designated as cash flow hedges | 9 | 12 | 28 | 69 | |||||||||||
Derivatives not designated as cash flow hedges: | |||||||||||||||
Interest rate contracts current | 4 | — | 21 | 7 | |||||||||||
Interest rate contracts long-term | 26 | 37 | 46 | 12 | |||||||||||
Commodity contracts current | 640 | 1,067 | 681 | 1,057 | |||||||||||
Commodity contracts long-term | 191 | 132 | 228 | 231 | |||||||||||
Total derivatives not designated as cash flow hedges | 861 | 1,236 | 976 | 1,307 | |||||||||||
Total derivatives | $ | 870 | $ | 1,248 | $ | 1,004 | $ | 1,376 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | |||||||||||||
As of June 30, 2017 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 831 | $ | (730 | ) | $ | (2 | ) | $ | 99 | ||||||
Derivative liabilities | (909 | ) | 730 | 121 | (58 | ) | ||||||||||
Total commodity contracts | (78 | ) | — | 119 | 41 | |||||||||||
Interest rate contracts: | ||||||||||||||||
Derivative assets | 39 | (2 | ) | — | 37 | |||||||||||
Derivative liabilities | (95 | ) | 2 | — | (93 | ) | ||||||||||
Total interest rate contracts | (56 | ) | — | — | (56 | ) | ||||||||||
Total derivative instruments | $ | (134 | ) | $ | — | $ | 119 | $ | (15 | ) |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | |||||||||||||
As of December 31, 2016 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 1,199 | $ | (1,021 | ) | $ | (13 | ) | $ | 165 | ||||||
Derivative liabilities | (1,288 | ) | 1,021 | 13 | (254 | ) | ||||||||||
Total commodity contracts | (89 | ) | — | — | (89 | ) | ||||||||||
Interest rate contracts: | ||||||||||||||||
Derivative assets | 49 | (4 | ) | — | 45 | |||||||||||
Derivative liabilities | (88 | ) | 4 | — | (84 | ) | ||||||||||
Total interest rate contracts | (39 | ) | — | — | (39 | ) | ||||||||||
Total derivative instruments | $ | (128 | ) | $ | — | $ | — | $ | (128 | ) |
Interest Rate Contracts | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Accumulated OCI beginning balance | $ | (61 | ) | $ | (150 | ) | $ | (66 | ) | $ | (101 | ) | |||
Reclassified from accumulated OCI to income: | |||||||||||||||
Due to realization of previously deferred amounts | 3 | 7 | 6 | 10 | |||||||||||
Mark-to-market of cash flow hedge accounting contracts | (9 | ) | (22 | ) | (7 | ) | (74 | ) | |||||||
Accumulated OCI ending balance, net of $16, and $26 tax | $ | (67 | ) | $ | (165 | ) | $ | (67 | ) | $ | (165 | ) | |||
Losses expected to be realized from OCI during the next 12 months, net of $3 tax | $ | 15 | $ | 15 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Unrealized mark-to-market results | (In millions) | ||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 22 | $ | (18 | ) | $ | 25 | $ | (45 | ) | |||||
Reversal of acquired loss/(gain) positions related to economic hedges | 1 | (2 | ) | 1 | (4 | ) | |||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 36 | (13 | ) | 15 | 77 | ||||||||||
Total unrealized mark-to-market gains/(losses) for economic hedging activities | 59 | (33 | ) | 41 | 28 | ||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to trading activity | (4 | ) | 2 | (19 | ) | 10 | |||||||||
Net unrealized gains on open positions related to trading activity | 16 | 11 | 17 | 22 | |||||||||||
Total unrealized mark-to-market gains/(losses) for trading activity | 12 | 13 | (2 | ) | 32 | ||||||||||
Total unrealized gains/(losses) | $ | 71 | $ | (20 | ) | $ | 39 | $ | 60 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Unrealized gains/(losses) included in operating revenues | $ | 53 | $ | (460 | ) | $ | 157 | $ | (390 | ) | |||||
Unrealized gains/(losses) included in cost of operations | 18 | 440 | (118 | ) | 450 | ||||||||||
Total impact to statement of operations — energy commodities | $ | 71 | $ | (20 | ) | $ | 39 | $ | 60 | ||||||
Total impact to statement of operations — interest rate contracts | $ | (24 | ) | $ | (7 | ) | $ | (19 | ) | $ | (18 | ) |
(In millions, except rates) | June 30, 2017 | December 31, 2016 | June 30, 2017 interest rate % (a) | ||||||
Recourse debt: | |||||||||
Senior notes, due 2018 | $ | 398 | $ | 398 | 7.625 | ||||
Senior notes, due 2021 | 207 | 207 | 7.875 | ||||||
Senior notes, due 2022 | 992 | 992 | 6.250 | ||||||
Senior notes, due 2023 | 869 | 869 | 6.625 | ||||||
Senior notes, due 2024 | 733 | 733 | 6.250 | ||||||
Senior notes, due 2026 | 1,000 | 1,000 | 7.250 | ||||||
Senior notes, due 2027 | 1,250 | 1,250 | 6.625 | ||||||
Term loan facility, due 2023 | 1,881 | 1,891 | L+2.25 | ||||||
Tax-exempt bonds | 455 | 455 | 4.125 - 6.00 | ||||||
Subtotal NRG recourse debt | 7,785 | 7,795 | |||||||
Non-recourse debt: | |||||||||
NRG Yield Operating LLC Senior Notes, due 2024 | 500 | 500 | 5.375 | ||||||
NRG Yield Operating LLC Senior Notes, due 2026 | 350 | 350 | 5.000 | ||||||
NRG Yield, Inc. Convertible Senior Notes, due 2019 | 345 | 345 | 3.500 | ||||||
NRG Yield, Inc. Convertible Senior Notes, due 2020 | 288 | 288 | 3.250 | ||||||
El Segundo Energy Center, due 2023 | 414 | 443 | L+1.625 - L+2.25 | ||||||
Marsh Landing, due 2017 and 2023 | 358 | 370 | L+1.750 - L+1.875 | ||||||
Alta Wind I - V lease financing arrangements, due 2034 and 2035 | 939 | 965 | 5.696 - 7.015 | ||||||
Walnut Creek, term loans due 2023 | 299 | 310 | L+1.625 | ||||||
Utah Portfolio, due 2022 | 284 | 287 | L+2.625 | ||||||
Tapestry, due 2021 | 166 | 172 | L+1.625 | ||||||
CVSR, due 2037 | 757 | 771 | 2.339 - 3.775 | ||||||
CVSR HoldCo, due 2037 | 193 | 199 | 4.680 | ||||||
Alpine, due 2022 | 142 | 145 | L+1.750 | ||||||
Energy Center Minneapolis, due 2017 and 2025 | 85 | 96 | 5.95 - 7.25 | ||||||
Energy Center Minneapolis, due 2031 | 125 | 125 | 3.55 | ||||||
Viento, due 2023 | 169 | 178 | L+2.75 | ||||||
NRG Yield - other | 569 | 540 | various | ||||||
Subtotal NRG Yield debt (non-recourse to NRG) | 5,983 | 6,084 | |||||||
Ivanpah, due 2033 and 2038 | 1,108 | 1,113 | 2.285 - 4.256 | ||||||
Carlsbad Energy Project | 345 | — | 4.120 | ||||||
Agua Caliente, due 2037 | 843 | 849 | 2.395 - 3.633 | ||||||
Agua Caliente Borrower 1, due 2038 | 89 | — | 5.430 | ||||||
Cedro Hill, due 2025 | 156 | 163 | L+1.75 | ||||||
Midwest Generation, due 2019 | 194 | 231 | 4.390 | ||||||
NRG Other | 622 | 468 | various | ||||||
Subtotal other NRG non-recourse debt | 3,357 | 2,824 | |||||||
Subtotal all non-recourse debt | 9,340 | 8,908 | |||||||
Subtotal long-term debt (including current maturities) | 17,125 | 16,703 | |||||||
Capital leases | 6 | 6 | various | ||||||
Subtotal long-term debt and capital leases (including current maturities) | 17,131 | 16,709 | |||||||
Less current maturities | (1,042 | ) | (516 | ) | |||||
Less debt issuance costs | (208 | ) | (188 | ) | |||||
Discounts | (39 | ) | (48 | ) | |||||
Total long-term debt and capital leases | $ | 15,842 | $ | 15,957 |
(In millions) | June 30, 2017 | December 31, 2016 | |||||
Current assets | $ | 84 | $ | 87 | |||
Net property, plant and equipment | 1,493 | 1,534 | |||||
Other long-term assets | 1,024 | 954 | |||||
Total assets | 2,601 | 2,575 | |||||
Current liabilities | 63 | 59 | |||||
Long-term debt | 424 | 442 | |||||
Other long-term liabilities | 187 | 183 | |||||
Total liabilities | 674 | 684 | |||||
Noncontrolling interests | 600 | 529 | |||||
Net assets less noncontrolling interests | $ | 1,327 | $ | 1,362 |
Issued | Treasury | Outstanding | ||||||
Balance as of December 31, 2016 | 417,583,825 | (102,140,814 | ) | 315,443,011 | ||||
Shares issued under LTIPs | 397,287 | — | 397,287 | |||||
Shares issued under ESPP | — | 282,530 | 282,530 | |||||
Balance as of June 30, 2017 | 417,981,112 | (101,858,284 | ) | 316,122,828 |
Second Quarter 2017 | First Quarter 2017 | ||||||
Dividends per Common Share | $ | 0.03 | $ | 0.03 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(In millions, except per share data) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Basic and diluted loss per share attributable to NRG Energy, Inc. common stockholders | |||||||||||||||
Net loss attributable to NRG Energy, Inc. | $ | (626 | ) | $ | (271 | ) | $ | (790 | ) | $ | (189 | ) | |||
Dividends for preferred shares | — | — | — | 5 | |||||||||||
Gain on redemption of 2.822% redeemable perpetual preferred stock | — | (78 | ) | — | (78 | ) | |||||||||
Loss available for common stockholders | $ | (626 | ) | $ | (193 | ) | $ | (790 | ) | $ | (116 | ) | |||
Weighted average number of common shares outstanding - basic and diluted | 316 | 315 | 316 | 315 | |||||||||||
Loss per weighted average common share — basic and diluted | $ | (1.98 | ) | $ | (0.61 | ) | $ | (2.50 | ) | $ | (0.37 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||
(In millions of shares) | 2017 | 2016 | 2017 | 2016 | |||||||
Equity compensation plans | 6 | 3 | 6 | 3 | |||||||
Total | 6 | 3 | 6 | 3 |
Generation(a) | Retail (a) | Renewables(a) | NRG Yield | Corporate(a) | Eliminations | Total | ||||||||||||||||||||||
Three months ended June 30, 2017 | (In millions) | |||||||||||||||||||||||||||
Operating revenues(a) | $ | 882 | $ | 1,603 | $ | 123 | $ | 284 | $ | 3 | $ | (194 | ) | $ | 2,701 | |||||||||||||
Depreciation and amortization | 95 | 29 | 50 | 78 | 8 | — | 260 | |||||||||||||||||||||
Impairment losses | 41 | — | 22 | — | — | — | 63 | |||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | (15 | ) | — | (2 | ) | 16 | 3 | (5 | ) | (3 | ) | |||||||||||||||||
(Loss)/income from continuing operations before income taxes | (89 | ) | 330 | (52 | ) | 53 | (135 | ) | (4 | ) | 103 | |||||||||||||||||
(Loss)/income from continuing operations | (90 | ) | 341 | (47 | ) | 45 | (146 | ) | (4 | ) | 99 | |||||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (741 | ) | — | (741 | ) | |||||||||||||||||||
Net (Loss)/Income | (90 | ) | 341 | (47 | ) | 45 | (887 | ) | (4 | ) | (642 | ) | ||||||||||||||||
Net (Loss)/income attributable to NRG Energy, Inc. | $ | (90 | ) | $ | 341 | $ | (22 | ) | $ | 50 | — | $ | (920 | ) | $ | 15 | $ | (626 | ) | |||||||||
Total assets as of June 30, 2017 | $ | 8,539 | $ | 2,439 | $ | 5,193 | $ | 8,513 | $ | 10,954 | $ | (10,433 | ) | $ | 25,205 |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 171 | $ | 1 | $ | 10 | $ | 3 | $ | 9 | $ | — | $ | 194 |
Generation(a) | Retail(a) | Renewables(a) | NRG Yield(a) | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Three months ended June 30, 2016 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 504 | $ | 1,536 | $ | 101 | $ | 283 | $ | 10 | $ | (186 | ) | $ | 2,248 | ||||||||||||
Depreciation and amortization | 97 | 29 | 47 | 75 | 14 | — | 262 | ||||||||||||||||||||
Impairment losses | 17 | — | 27 | — | 12 | — | 56 | ||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | 2 | — | (2 | ) | 14 | 27 | (37 | ) | 4 | ||||||||||||||||||
Loss on sale of assets | — | — | — | — | (83 | ) | — | (83 | ) | ||||||||||||||||||
Loss on debt extinguishment, net | — | — | — | — | (80 | ) | — | (80 | ) | ||||||||||||||||||
(Loss)/income from continuing operations before income taxes | (458 | ) | 657 | (75 | ) | 76 | (295 | ) | (43 | ) | (138 | ) | |||||||||||||||
(Loss)/income from continuing operations | (458 | ) | 657 | (71 | ) | 64 | (312 | ) | (43 | ) | (163 | ) | |||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (113 | ) | — | (113 | ) | ||||||||||||||||||
Net (Loss)/Income | (458 | ) | 657 | (71 | ) | 64 | (425 | ) | (43 | ) | (276 | ) | |||||||||||||||
Net (Loss)/Income attributable to NRG Energy, Inc. | $ | (458 | ) | $ | 661 | $ | (66 | ) | $ | 48 | $ | (449 | ) | $ | (7 | ) | $ | (271 | ) |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 166 | $ | 1 | $ | 4 | $ | 2 | $ | 13 | $ | — | $ | 186 |
Generation(a) | Retail (a) | Renewables(a)(b) | NRG Yield | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Six months ended June 30, 2017 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 1,848 | $ | 2,938 | $ | 220 | $ | 502 | $ | 11 | $ | (436 | ) | $ | 5,083 | ||||||||||||
Depreciation and amortization | 192 | 57 | 99 | 153 | 16 | — | 517 | ||||||||||||||||||||
Impairment losses | 41 | — | 22 | — | — | — | 63 | ||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | (28 | ) | — | (3 | ) | 35 | 7 | (9 | ) | 2 | |||||||||||||||||
(Loss)/income from continuing operations before income taxes | (54 | ) | 303 | (89 | ) | 51 | (273 | ) | (9 | ) | (71 | ) | |||||||||||||||
(Loss)/Income from continuing operations | (56 | ) | 311 | (79 | ) | 44 | (281 | ) | (9 | ) | (70 | ) | |||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (775 | ) | — | (775 | ) | ||||||||||||||||||
Net (Loss)/Income | (56 | ) | 311 | (79 | ) | 44 | (1,056 | ) | (9 | ) | (845 | ) | |||||||||||||||
Net (Loss)/Income attributable to NRG Energy, Inc. | $ | (56 | ) | $ | 311 | $ | (26 | ) | $ | 58 | $ | (1,089 | ) | $ | 12 | $ | (790 | ) |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 406 | $ | 11 | $ | 4 | $ | — | $ | 15 | $ | — | $ | 436 |
Generation(a)(c) | Retail(a) | Renewables(a) | NRG Yield(a) | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Six months ended June 30, 2016 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 1,637 | $ | 2,906 | $ | 197 | $ | 517 | $ | 28 | $ | (378 | ) | $ | 4,907 | ||||||||||||
Depreciation and amortization | 197 | 57 | 95 | 149 | 30 | — | 528 | ||||||||||||||||||||
Impairment losses | 17 | — | 27 | — | 12 | — | 56 | ||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | (5 | ) | — | (8 | ) | 18 | 6 | (14 | ) | (3 | ) | ||||||||||||||||
Loss on sale of assets | — | — | — | — | (83 | ) | — | (83 | ) | ||||||||||||||||||
Impairment loss on investment | (137 | ) | — | — | — | (2 | ) | — | (139 | ) | |||||||||||||||||
Loss on debt extinguishment, net | — | — | — | — | (69 | ) | — | (69 | ) | ||||||||||||||||||
(Loss)/income from continuing operations before income taxes | (433 | ) | 808 | (122 | ) | 78 | (495 | ) | (9 | ) | (173 | ) | |||||||||||||||
(Loss)/income from continuing operations | (433 | ) | 807 | (111 | ) | 66 | (540 | ) | (9 | ) | (220 | ) | |||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (9 | ) | — | (9 | ) | ||||||||||||||||||
Net (Loss)/Income | (433 | ) | 807 | (111 | ) | 66 | (549 | ) | (9 | ) | (229 | ) | |||||||||||||||
Net (Loss)/Income attributable to NRG Energy, Inc. | $ | (433 | ) | $ | 807 | $ | (96 | ) | $ | 58 | $ | (558 | ) | $ | 33 | $ | (189 | ) |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 330 | $ | 5 | $ | 8 | $ | 6 | $ | 29 | $ | — | $ | 378 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income/(Loss) before income taxes | $ | 103 | $ | (138 | ) | $ | (71 | ) | $ | (173 | ) | ||||
Income tax expense/(benefit) from continuing operations | 4 | 25 | (1 | ) | 47 | ||||||||||
Effective tax rate | 3.9 | % | (18.1 | )% | 1.4 | % | (27.2 | )% |
Ace Energy, Inc. | Norwalk Power LLC | NRG Operating Services, Inc. |
Allied Home Warranty GP LLC | NRG Advisory Services LLC | NRG Oswego Harbor Power Operations Inc. |
Allied Warranty LLC | NRG Affiliate Services Inc. | NRG PacGen Inc. |
Arthur Kill Power LLC | NRG Artesian Energy LLC | NRG Portable Power LLC |
Astoria Gas Turbine Power LLC | NRG Arthur Kill Operations Inc. | NRG Power Marketing LLC |
Bayou Cove Peaking Power, LLC | NRG Astoria Gas Turbine Operations Inc. | NRG Reliability Solutions LLC |
BidURenergy, Inc. | NRG Bayou Cove LLC | NRG Renter's Protection LLC |
Cabrillo Power I LLC | NRG Business Services LLC | NRG Retail LLC |
Cabrillo Power II LLC | NRG Business Solutions LLC | NRG Retail Northeast LLC |
Carbon Management Solutions LLC | NRG Cabrillo Power Operations Inc. | NRG Rockford Acquisition LLC |
Cirro Group, Inc. | NRG California Peaker Operations LLC | NRG Saguaro Operations Inc. |
Cirro Energy Services, Inc. | NRG Cedar Bayou Development Company, LLC | NRG Security LLC |
Clean Edge Energy LLC | NRG Connected Home LLC | NRG Services Corporation |
Conemaugh Power LLC | NRG Connecticut Affiliate Services Inc. | NRG SimplySmart Solutions LLC |
Connecticut Jet Power LLC | NRG Construction LLC | NRG South Central Affiliate Services Inc. |
Cottonwood Development LLC | NRG Curtailment Solutions Holdings LLC | NRG South Central Generating LLC |
Cottonwood Energy Company LP | NRG Curtailment Solutions, Inc | NRG South Central Operations Inc. |
Cottonwood Generating Partners I LLC | NRG Development Company Inc. | NRG South Texas LP |
Cottonwood Generating Partners II LLC | NRG Devon Operations Inc. | NRG SPV #1 LLC |
Cottonwood Generating Partners III LLC | NRG Dispatch Services LLC | NRG Texas C&I Supply LLC |
Cottonwood Technology Partners LP | NRG Distributed Generation PR LLC | NRG Texas Gregory LLC |
Devon Power LLC | NRG Dunkirk Operations Inc. | NRG Texas Holding Inc. |
Dunkirk Power LLC | NRG El Segundo Operations Inc. | NRG Texas LLC |
Eastern Sierra Energy Company LLC | NRG Energy Efficiency-L LLC | NRG Texas Power LLC |
El Segundo Power, LLC | NRG Energy Labor Services LLC | NRG Warranty Services LLC |
El Segundo Power II LLC | NRG ECOKAP Holdings LLC | NRG West Coast LLC |
Energy Alternatives Wholesale, LLC | NRG Energy Services Group LLC | NRG Western Affiliate Services Inc. |
Energy Choice Solutions LLC | NRG Energy Services International Inc. | O'Brien Cogeneration, Inc. II |
Energy Plus Holdings LLC | NRG Energy Services LLC | ONSITE Energy, Inc. |
Energy Plus Natural Gas LLC | NRG Generation Holdings, Inc. | Oswego Harbor Power LLC |
Energy Protection Insurance Company | NRG Greenco | RE Retail Receivables, LLC |
Everything Energy LLC | NRG Home & Business Solutions LLC | Reliant Energy Northeast LLC |
Forward Home Security, LLC | NRG Home Services LLC | Reliant Energy Power Supply, LLC |
GCP Funding Company, LLC | NRG Home Solutions LLC | Reliant Energy Retail Holdings, LLC |
Green Mountain Energy Company | NRG Home Solutions Product LLC | Reliant Energy Retail Services, LLC |
Gregory Partners, LLC | NRG Homer City Services LLC | RERH Holdings, LLC |
Gregory Power Partners LLC | NRG Huntley Operations Inc. | Saguaro Power LLC |
Huntley Power LLC | NRG HQ DG LLC | Somerset Operations Inc. |
Independence Energy Alliance LLC | NRG Identity Protect LLC | Somerset Power LLC |
Independence Energy Group LLC | NRG Ilion Limited Partnership | Texas Genco Financing Corp. |
Independence Energy Natural Gas LLC | NRG Ilion LP LLC | Texas Genco GP, LLC |
Indian River Operations Inc. | NRG International LLC | Texas Genco Holdings, Inc. |
Indian River Power LLC | NRG Maintenance Services LLC | Texas Genco LP, LLC |
Keystone Power LLC | NRG Mextrans Inc. | Texas Genco Operating Services, LLC |
Langford Wind Power, LLC | NRG MidAtlantic Affiliate Services Inc. | Texas Genco Services, LP |
Louisiana Generating LLC | NRG Middletown Operations Inc. | US Retailers LLC |
Meriden Gas Turbines LLC | NRG Montville Operations Inc. | Vienna Operations Inc. |
Middletown Power LLC | NRG New Roads Holdings LLC | Vienna Power LLC |
Montville Power LLC | NRG North Central Operations Inc. | WCP (Generation) Holdings LLC |
NEO Corporation | NRG Northeast Affiliate Services Inc. | West Coast Power LLC |
New Genco GP, LLC | NRG Norwalk Harbor Operations Inc. | |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 1,758 | $ | 989 | $ | — | $ | (46 | ) | $ | 2,701 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 1,307 | 558 | 16 | (44 | ) | 1,837 | |||||||||||||
Depreciation and amortization | 102 | 150 | 8 | — | 260 | ||||||||||||||
Impairment losses | 42 | 21 | — | — | 63 | ||||||||||||||
Selling, general and administrative | 86 | 38 | 100 | (1 | ) | 223 | |||||||||||||
Acquisition-related transaction and integration costs | — | 1 | — | — | 1 | ||||||||||||||
Development activity expenses | — | 13 | 5 | — | 18 | ||||||||||||||
Total operating costs and expenses | 1,537 | 781 | 129 | (45 | ) | 2,402 | |||||||||||||
Other income - affiliate | — | — | 42 | — | 42 | ||||||||||||||
Gain on sale of assets | 2 | — | — | — | 2 | ||||||||||||||
Operating Income/(Loss) | 223 | 208 | (87 | ) | (1 | ) | 343 | ||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in earnings/(losses) of consolidated subsidiaries | 57 | (22 | ) | (123 | ) | 88 | — | ||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | 676 | (645 | ) | (34 | ) | (3 | ) | |||||||||||
Other income | — | 7 | 3 | — | 10 | ||||||||||||||
Interest expense | (4 | ) | (121 | ) | (122 | ) | (247 | ) | |||||||||||
Total other income/(expense) | 53 | 540 | (887 | ) | 54 | (240 | ) | ||||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 276 | 748 | (974 | ) | 53 | 103 | |||||||||||||
Income tax expense/(benefit) | 113 | 267 | (376 | ) | — | 4 | |||||||||||||
Income/(Loss) from Continuing Operations | 163 | 481 | (598 | ) | 53 | 99 | |||||||||||||
Loss from Discontinued Operations, net of income tax | — | (741 | ) | — | — | (741 | ) | ||||||||||||
Net Income/(Loss) | 163 | (260 | ) | (598 | ) | 53 | (642 | ) | |||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests | — | (9 | ) | 28 | (35 | ) | (16 | ) | |||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 163 | $ | (251 | ) | $ | (626 | ) | $ | 88 | $ | (626 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 3,357 | $ | 1,851 | $ | — | $ | (125 | ) | $ | 5,083 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 2,568 | 1,222 | 31 | (125 | ) | 3,696 | |||||||||||||
Depreciation and amortization | 203 | 298 | 16 | — | 517 | ||||||||||||||
Impairment losses | 42 | 21 | — | — | 63 | ||||||||||||||
Selling, general and administrative | 184 | 84 | 216 | (2 | ) | 482 | |||||||||||||
Acquisition-related transaction and integration costs | — | 2 | — | — | 2 | ||||||||||||||
Development activity expenses | — | 25 | 10 | — | 35 | ||||||||||||||
Total operating costs and expenses | 2,997 | 1,652 | 273 | (127 | ) | 4,795 | |||||||||||||
Other income - affiliate | — | — | 90 | — | 90 | ||||||||||||||
Gain on sale of assets | 4 | — | — | — | 4 | ||||||||||||||
Operating Income/(Loss) | 364 | 199 | (183 | ) | 2 | 382 | |||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in (losses)/earnings of consolidated subsidiaries | (20 | ) | (57 | ) | (48 | ) | 125 | — | |||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | 707 | (669 | ) | (36 | ) | 2 | ||||||||||||
Other income | 1 | 12 | 5 | — | 18 | ||||||||||||||
Loss on debt extinguishment | — | (2 | ) | — | — | (2 | ) | ||||||||||||
Interest expense | (7 | ) | (225 | ) | (239 | ) | — | (471 | ) | ||||||||||
Total other (expense)/income | (26 | ) | 435 | (951 | ) | 89 | (453 | ) | |||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 338 | 634 | (1,134 | ) | 91 | (71 | ) | ||||||||||||
Income tax expense/(benefit) | 131 | 237 | (369 | ) | — | (1 | ) | ||||||||||||
Income/(Loss) from Continuing Operations | 207 | 397 | (765 | ) | 91 | (70 | ) | ||||||||||||
Loss from Discontinued Operations, net of income tax | — | (775 | ) | — | — | (775 | ) | ||||||||||||
Net Income/(Loss) | 207 | (378 | ) | (765 | ) | 91 | (845 | ) | |||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests | — | (46 | ) | 25 | (34 | ) | (55 | ) | |||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 207 | $ | (332 | ) | $ | (790 | ) | $ | 125 | $ | (790 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 163 | $ | (260 | ) | $ | (598 | ) | $ | 53 | $ | (642 | ) | ||||||
Other Comprehensive Income/(Loss), net of tax | |||||||||||||||||||
Unrealized loss on derivatives, net | — | (6 | ) | (4 | ) | 5 | (5 | ) | |||||||||||
Foreign currency translation adjustments, net | — | 1 | — | — | 1 | ||||||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | ||||||||||||||
Defined benefit plans, net | — | 28 | 28 | (29 | ) | 27 | |||||||||||||
Other comprehensive income/(loss) | — | 23 | 25 | (24 | ) | 24 | |||||||||||||
Comprehensive Income/(Loss) | 163 | (237 | ) | (573 | ) | 29 | (618 | ) | |||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (10 | ) | 28 | (35 | ) | (17 | ) | |||||||||||
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc. | $ | 163 | $ | (227 | ) | $ | (601 | ) | $ | 64 | $ | (601 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 207 | $ | (378 | ) | $ | (765 | ) | $ | 91 | $ | (845 | ) | ||||||
Other Comprehensive Income/(Loss), net of tax | |||||||||||||||||||
Unrealized gain on derivatives, net | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Foreign currency translation adjustments, net | 5 | 5 | 7 | (9 | ) | 8 | |||||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | ||||||||||||||
Defined benefit plans, net | — | 29 | 27 | (29 | ) | 27 | |||||||||||||
Other comprehensive income | 5 | 33 | 35 | (38 | ) | 35 | |||||||||||||
Comprehensive Income/(Loss) | 212 | (345 | ) | (730 | ) | 53 | (810 | ) | |||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (47 | ) | 25 | (34 | ) | (56 | ) | |||||||||||
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc. | $ | 212 | $ | (298 | ) | $ | (755 | ) | $ | 87 | $ | (754 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
ASSETS | (In millions) | ||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | (19 | ) | $ | 363 | $ | 408 | $ | — | $ | 752 | ||||||||
Funds deposited by counterparties | 14 | 2 | 3 | — | 19 | ||||||||||||||
Restricted cash | 23 | 443 | 3 | — | 469 | ||||||||||||||
Accounts receivable - trade, net | 783 | 376 | 3 | — | 1,162 | ||||||||||||||
Accounts receivable - affiliate | 195 | 5 | 1 | (102 | ) | 99 | |||||||||||||
Inventory | 472 | 241 | — | — | 713 | ||||||||||||||
Derivative instruments | 572 | 142 | 4 | (74 | ) | 644 | |||||||||||||
Cash collateral paid in support of energy risk management activities | 252 | 25 | — | — | 277 | ||||||||||||||
Prepayments and other current assets | 106 | 155 | 40 | — | 301 | ||||||||||||||
Current assets - held for sale | — | 33 | — | — | 33 | ||||||||||||||
Total current assets | 2,398 | 1,785 | 462 | (176 | ) | 4,469 | |||||||||||||
Net property, plant and equipment | 4,038 | 11,049 | 241 | (26 | ) | 15,302 | |||||||||||||
Other Assets | |||||||||||||||||||
Investment in subsidiaries | 1,158 | 1,040 | 9,626 | (11,824 | ) | — | |||||||||||||
Equity investments in affiliates | — | 1,123 | 4 | — | 1,127 | ||||||||||||||
Notes receivable, less current portion | — | 9 | — | — | 9 | ||||||||||||||
Goodwill | 359 | 303 | — | — | 662 | ||||||||||||||
Intangible assets, net | 560 | 1,336 | — | (3 | ) | 1,893 | |||||||||||||
Nuclear decommissioning trust fund | 637 | — | — | — | 637 | ||||||||||||||
Derivative instruments | 187 | 47 | 26 | (34 | ) | 226 | |||||||||||||
Deferred income tax | (6 | ) | (361 | ) | 578 | — | 211 | ||||||||||||
Non-current assets held-for-sale | — | 10 | — | — | 10 | ||||||||||||||
Other non-current assets | 60 | 537 | 62 | — | 659 | ||||||||||||||
Total other assets | 2,955 | 4,044 | 10,296 | (11,861 | ) | 5,434 | |||||||||||||
Total Assets | $ | 9,391 | $ | 16,878 | $ | 10,999 | $ | (12,063 | ) | $ | 25,205 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Current portion of long-term debt and capital leases | $ | — | $ | 622 | $ | 420 | $ | — | $ | 1,042 | |||||||||
Accounts payable | 540 | 187 | 30 | — | 757 | ||||||||||||||
Accounts payable — affiliate | 724 | (441 | ) | (136 | ) | (130 | ) | 17 | |||||||||||
Derivative instruments | 590 | 195 | — | (74 | ) | 711 | |||||||||||||
Cash collateral received in support of energy risk management activities | 14 | 2 | 3 | 19 | |||||||||||||||
Accrued expenses and other current liabilities | 298 | 5 | 479 | 28 | 810 | ||||||||||||||
Accrued expenses and other current liabilities-affiliate | — | 164 | — | — | 164 | ||||||||||||||
Total current liabilities | 2,166 | 734 | 796 | (176 | ) | 3,520 | |||||||||||||
Other Liabilities | |||||||||||||||||||
Long-term debt and capital leases | 244 | 8,616 | 6,982 | — | 15,842 | ||||||||||||||
Nuclear decommissioning reserve | 262 | — | — | — | 262 | ||||||||||||||
Nuclear decommissioning trust liability | 367 | — | — | — | 367 | ||||||||||||||
Deferred income taxes | 308 | — | (288 | ) | — | 20 | |||||||||||||
Derivative instruments | 179 | 148 | — | (34 | ) | 293 | |||||||||||||
Out-of-market contracts, net | 74 | 145 | — | — | 219 | ||||||||||||||
Non-current liabilities held-for-sale | — | 13 | — | — | 13 | ||||||||||||||
Other non-current liabilities | 383 | 316 | 436 | — | 1,135 | ||||||||||||||
Total non-current liabilities | 1,817 | 9,238 | 7,130 | (34 | ) | 18,151 | |||||||||||||
Total liabilities | 3,983 | 9,972 | 7,926 | (210 | ) | 21,671 | |||||||||||||
Redeemable noncontrolling interest in subsidiaries | — | 51 | — | — | 51 | ||||||||||||||
Stockholders’ Equity | 5,408 | 6,855 | 3,073 | (11,853 | ) | 3,483 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 9,391 | $ | 16,878 | $ | 10,999 | $ | (12,063 | ) | $ | 25,205 |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||
(In millions) | |||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||
Net income (loss) from continuing operations | $ | 207 | $ | 397 | $ | (765 | ) | $ | 91 | $ | (70 | ) | |||||||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||||||||||||||||||||
Distributions from unconsolidated affiliates | — | 32 | — | (4 | ) | 28 | |||||||||||||||
Equity in losses/(earnings) of unconsolidated affiliates | — | (13 | ) | 2 | 9 | (2 | ) | ||||||||||||||
Depreciation and amortization | 203 | 298 | 16 | — | 517 | ||||||||||||||||
Provision for bad debts | 17 | 1 | — | — | 18 | ||||||||||||||||
Amortization of nuclear fuel | 24 | — | — | — | 24 | ||||||||||||||||
Amortization of financing costs and debt discount/premiums | — | 20 | 9 | — | 29 | ||||||||||||||||
Amortization of intangibles and out-of-market contracts | 12 | 39 | — | — | 51 | ||||||||||||||||
Amortization of unearned equity compensation | — | — | 16 | — | 16 | ||||||||||||||||
Impairment losses | 42 | 21 | — | — | 63 | ||||||||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 131 | 237 | (360 | ) | — | 8 | |||||||||||||||
Changes in nuclear decommissioning trust liability | 2 | — | — | — | 2 | ||||||||||||||||
Changes in derivative instruments | 12 | (12 | ) | 7 | — | 7 | |||||||||||||||
Changes in collateral deposits supporting energy risk management activities | (203 | ) | 11 | 3 | (189 | ) | |||||||||||||||
Proceeds from sale of emission allowances | 11 | — | — | — | 11 | ||||||||||||||||
Gain on sale of assets | (22 | ) | — | — | — | (22 | ) | ||||||||||||||
Cash (used)/provided by changes in other working capital | (298 | ) | (1,138 | ) | 1,153 | (96 | ) | (379 | ) | ||||||||||||
Cash provided/(used) by continuing operations | 138 | (107 | ) | 81 | — | 112 | |||||||||||||||
Cash used by discontinued operations | — | (38 | ) | — | — | (38 | ) | ||||||||||||||
Net Cash Provided/(used) by Operating Activities | 138 | (145 | ) | 81 | — | 74 | |||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||
Dividends from NRG Yield, Inc. | 45 | (45 | ) | — | |||||||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | (131 | ) | — | 131 | — | |||||||||||||||
Intercompany dividends | — | — | 129 | (129 | ) | — | |||||||||||||||
Acquisition of business, net of cash acquired | (16 | ) | — | — | (16 | ) | |||||||||||||||
Capital expenditures | (90 | ) | (436 | ) | (16 | ) | — | (542 | ) | ||||||||||||
Decrease in notes receivable | — | 8 | — | — | 8 | ||||||||||||||||
Purchases of emission allowances | (30 | ) | — | — | (30 | ) | |||||||||||||||
Proceeds from sale of emission allowances | 59 | — | — | — | 59 | ||||||||||||||||
Investments in nuclear decommissioning trust fund securities | (279 | ) | — | — | — | (279 | ) | ||||||||||||||
Proceeds from sales of nuclear decommissioning trust fund securities | 277 | — | — | — | 277 | ||||||||||||||||
Proceeds from renewable energy grants and state rebates | 8 | — | — | — | — | 8 | |||||||||||||||
Proceeds from sale of assets, net of cash disposed of | 35 | — | — | — | 35 | ||||||||||||||||
Investments in unconsolidated affiliates | — | (30 | ) | — | — | (30 | ) | ||||||||||||||
Other | 18 | — | — | — | 18 | ||||||||||||||||
Cash (used)/provided by continuing operations | (2 | ) | (605 | ) | 158 | (43 | ) | (492 | ) | ||||||||||||
Cash used by discontinued operations | (53 | ) | (53 | ) | |||||||||||||||||
Net Cash (Used)/Provided by Investing Activities | (2 | ) | (658 | ) | 158 | (43 | ) | (545 | ) | ||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||
Dividends from NRG Yield, Inc. | — | (45 | ) | — | 45 | — | |||||||||||||||
Payments (for)/from intercompany loans | (122 | ) | 369 | (247 | ) | — | — | ||||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | — | 131 | (131 | ) | — | |||||||||||||||
Intercompany dividends | (129 | ) | 129 | — | |||||||||||||||||
Payment of dividends to common and preferred stockholders | — | — | (19 | ) | — | (19 | ) | ||||||||||||||
Net receipts from settlement of acquired derivatives that include financing elements | — | 2 | — | — | 2 | ||||||||||||||||
Proceeds from issuance of long-term debt | — | 741 | 205 | — | 946 | ||||||||||||||||
Payments for short and long-term debt | — | (316 | ) | (214 | ) | — | (530 | ) | |||||||||||||
Receivable from affiliate | — | (125 | ) | — | — | (125 | ) | ||||||||||||||
Contributions to, net of distributions from, noncontrolling interest in subsidiaries | — | 14 | — | — | 14 | ||||||||||||||||
Payment of debt issuance costs | — | (32 | ) | (4 | ) | — | (36 | ) | |||||||||||||
Other - contingent consideration | (10 | ) | — | (10 | ) | ||||||||||||||||
Cash (used)/provided by continuing operations | (122 | ) | 469 | (148 | ) | 43 | 242 | ||||||||||||||
Cash used by discontinued operations | — | (224 | ) | — | — | (224 | ) | ||||||||||||||
Net Cash (Used)/Provided by Financing Activities | (122 | ) | 245 | (148 | ) | 43 | 18 | ||||||||||||||
Change in cash from discontinued operations | — | (315 | ) | — | — | (315 | ) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (8 | ) | — | — | (8 | ) | ||||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties | 14 | (251 | ) | 91 | — | (146 | ) | ||||||||||||||
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at Beginning of Period | 4 | 1,059 | 323 | — | 1,386 | ||||||||||||||||
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at End of Period | $ | 18 | $ | 808 | $ | 414 | $ | — | $ | 1,240 |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 1,716 | $ | 569 | $ | — | $ | (37 | ) | $ | 2,248 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 1,128 | 342 | 10 | (37 | ) | 1,443 | |||||||||||||
Depreciation and amortization | 112 | 144 | 6 | — | 262 | ||||||||||||||
Impairment losses | — | 56 | — | — | 56 | ||||||||||||||
Selling, general and administrative | 93 | 46 | 127 | — | 266 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 5 | — | 5 | ||||||||||||||
Development activity expenses | — | 13 | 5 | — | 18 | ||||||||||||||
Total operating costs and expenses | 1,333 | 601 | 153 | (37 | ) | 2,050 | |||||||||||||
Other income - affiliate | 48 | 48 | |||||||||||||||||
Loss on sale of assets | — | — | (83 | ) | — | (83 | ) | ||||||||||||
Operating Income/(Loss) | 383 | (32 | ) | (188 | ) | — | 163 | ||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in (losses)/earnings of consolidated subsidiaries | (50 | ) | (35 | ) | 67 | 18 | — | ||||||||||||
Equity in earnings of unconsolidated affiliates | 2 | 41 | 7 | (46 | ) | 4 | |||||||||||||
Gain on investment | — | — | 7 | — | 7 | ||||||||||||||
Other income/(loss), net | 1 | 2 | 2 | — | 5 | ||||||||||||||
Loss on debt extinguishment | — | (4 | ) | (76 | ) | — | (80 | ) | |||||||||||
Interest expense | (4 | ) | (101 | ) | (132 | ) | — | (237 | ) | ||||||||||
Total other expense | (51 | ) | (97 | ) | (125 | ) | (28 | ) | (301 | ) | |||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 332 | (129 | ) | (313 | ) | (28 | ) | (138 | ) | ||||||||||
Income tax expense/(benefit) | 128 | (33 | ) | (70 | ) | — | 25 | ||||||||||||
Income/(Loss) from Continuing Operations | 204 | (96 | ) | (243 | ) | (28 | ) | (163 | ) | ||||||||||
(Loss)/ Income from Discontinued Operations, net of income tax | — | (116 | ) | 3 | — | (113 | ) | ||||||||||||
Net Income/(Loss) | 204 | (212 | ) | (240 | ) | (28 | ) | (276 | ) | ||||||||||
Less: Net income attributable to noncontrolling interest and redeemable noncontrolling interest | — | 10 | 31 | (46 | ) | (5 | ) | ||||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 204 | $ | (222 | ) | $ | (271 | ) | $ | 18 | $ | (271 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 3,655 | $ | 1,310 | $ | — | $ | (58 | ) | $ | 4,907 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 2,559 | 754 | 19 | (61 | ) | 3,271 | |||||||||||||
Depreciation and amortization | 225 | 291 | 12 | — | 528 | ||||||||||||||
Impairment losses | — | 56 | — | — | 56 | ||||||||||||||
Selling, general and administrative | 191 | 95 | 234 | — | 520 | ||||||||||||||
Acquisition-related transaction and integration costs | — | — | 6 | — | 6 | ||||||||||||||
Development activity expenses | — | 32 | 12 | — | 44 | ||||||||||||||
Total operating costs and expenses | 2,975 | 1,228 | 283 | (61 | ) | 4,425 | |||||||||||||
Other income - affiliate | — | — | 96 | — | 96 | ||||||||||||||
Loss on sale of assets | — | — | (83 | ) | — | (83 | ) | ||||||||||||
Operating Income/(Loss) | 680 | 82 | (270 | ) | 3 | 495 | |||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in (losses)/earnings of consolidated subsidiaries | (81 | ) | (70 | ) | 342 | (191 | ) | — | |||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | 3 | 39 | 10 | (55 | ) | (3 | ) | ||||||||||||
Impairment loss on investment | — | (139 | ) | — | — | (139 | ) | ||||||||||||
Other income, net | 2 | 19 | 2 | (1 | ) | 22 | |||||||||||||
Loss on debt extinguishment | — | (4 | ) | (65 | ) | — | (69 | ) | |||||||||||
Interest expense | (7 | ) | (207 | ) | (265 | ) | — | (479 | ) | ||||||||||
Total other (expense)/income | (83 | ) | (362 | ) | 24 | (247 | ) | (668 | ) | ||||||||||
Income/(Loss) Before Income Taxes | 597 | (280 | ) | (246 | ) | (244 | ) | (173 | ) | ||||||||||
Income tax expense/(benefit) | 228 | (94 | ) | (87 | ) | — | 47 | ||||||||||||
Income/(Loss) from Continuing Operations | 369 | (186 | ) | (159 | ) | (244 | ) | (220 | ) | ||||||||||
(Loss)/Income from Discontinued Operations, net of income tax | — | (15 | ) | 6 | — | (9 | ) | ||||||||||||
Net Income/(Loss) | 369 | (201 | ) | (153 | ) | (244 | ) | (229 | ) | ||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (23 | ) | 36 | (53 | ) | (40 | ) | |||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 369 | $ | (178 | ) | $ | (189 | ) | $ | (191 | ) | $ | (189 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 204 | $ | (212 | ) | $ | (240 | ) | $ | (28 | ) | $ | (276 | ) | |||||
Other Comprehensive Income/(Loss), net of tax | |||||||||||||||||||
Unrealized loss on derivatives, net | — | (5 | ) | (4 | ) | 6 | (3 | ) | |||||||||||
Foreign currency translation adjustments, net | (2 | ) | (2 | ) | (4 | ) | 5 | (3 | ) | ||||||||||
Available-for-sale securities, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Other comprehensive loss | (2 | ) | (7 | ) | (10 | ) | 11 | (8 | ) | ||||||||||
Comprehensive Income/(Loss) | 202 | (219 | ) | (250 | ) | (17 | ) | (284 | ) | ||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (1 | ) | 31 | (46 | ) | (16 | ) | |||||||||||
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc. | 202 | (218 | ) | (281 | ) | 29 | (268 | ) | |||||||||||
Gain on redemption of preferred shares | — | — | (78 | ) | — | (78 | ) | ||||||||||||
Comprehensive Income/(Loss) Available for Common Stockholders | $ | 202 | $ | (218 | ) | $ | (203 | ) | $ | 29 | $ | (190 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 369 | $ | (201 | ) | $ | (153 | ) | $ | (244 | ) | $ | (229 | ) | |||||
Other Comprehensive Income/(Loss), net of tax | |||||||||||||||||||
Unrealized (loss)/gain on derivatives, net | — | (55 | ) | 20 | — | (35 | ) | ||||||||||||
Foreign currency translation adjustments, net | 2 | 2 | 2 | (3 | ) | 3 | |||||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | ||||||||||||||
Defined benefit plans, net | 1 | — | — | — | 1 | ||||||||||||||
Other comprehensive income/(loss) | 3 | (53 | ) | 23 | (3 | ) | (30 | ) | |||||||||||
Comprehensive Income/(Loss) | 372 | (254 | ) | (130 | ) | (247 | ) | (259 | ) | ||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (51 | ) | 36 | (53 | ) | (68 | ) | |||||||||||
Comprehensive Income/(Loss) Attributable to NRG Energy, Inc. | 372 | (203 | ) | (166 | ) | (194 | ) | (191 | ) | ||||||||||
Dividends for preferred shares | — | — | 5 | — | 5 | ||||||||||||||
Gain on redemption of preferred shares | — | — | (78 | ) | — | (78 | ) | ||||||||||||
Comprehensive Income/(Loss) Available for Common Stockholders | $ | 372 | $ | (203 | ) | $ | (93 | ) | $ | (194 | ) | $ | (118 | ) |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations (a) | Consolidated | |||||||||||||||
ASSETS | (In millions) | ||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | (9 | ) | $ | 624 | $ | 323 | $ | 938 | ||||||||||
Funds deposited by counterparties | 2 | — | — | 2 | |||||||||||||||
Restricted cash | 11 | 435 | — | — | 446 | ||||||||||||||
Accounts receivable - trade, net | 734 | 321 | 3 | — | 1,058 | ||||||||||||||
Accounts receivable - affiliate | 307 | (254 | ) | 200 | (139 | ) | 114 | ||||||||||||
Inventory | 482 | 239 | — | — | 721 | ||||||||||||||
Derivative instruments | 962 | 196 | 1 | (92 | ) | 1,067 | |||||||||||||
Cash collateral paid in support of energy risk management activities | 116 | 34 | — | — | 150 | ||||||||||||||
Current assets held-for-sale | — | 9 | — | — | 9 | ||||||||||||||
Prepayments and other current assets | 76 | 152 | 62 | — | 290 | ||||||||||||||
Current assets - discontinued operations | — | 1,919 | — | — | 1,919 | ||||||||||||||
Total current assets | 2,681 | 3,675 | 589 | (231 | ) | 6,714 | |||||||||||||
Net Property, Plant and Equipment | 4,219 | 10,926 | 251 | (27 | ) | 15,369 | |||||||||||||
Other Assets | |||||||||||||||||||
Investment in subsidiaries | 1,090 | 1,054 | 10,128 | (12,272 | ) | — | |||||||||||||
Equity investments in affiliates | (13 | ) | 1,128 | 5 | — | 1,120 | |||||||||||||
Notes receivable, less current portion | — | 16 | — | — | 16 | ||||||||||||||
Goodwill | 359 | 303 | — | — | 662 | ||||||||||||||
Intangible assets, net | 592 | 1,384 | — | (3 | ) | 1,973 | |||||||||||||
Nuclear decommissioning trust fund | 610 | — | — | — | 610 | ||||||||||||||
Derivative instruments | 144 | 44 | 36 | (43 | ) | 181 | |||||||||||||
Deferred income taxes | 3 | — | 222 | — | 225 | ||||||||||||||
Non-current assets held for sale | — | 10 | — | — | 10 | ||||||||||||||
Other non-current assets | 67 | 446 | 328 | — | 841 | ||||||||||||||
Non-current assets - discontinued operations | — | 2,961 | — | — | 2,961 | ||||||||||||||
Total other assets | 2,852 | 7,346 | 10,719 | (12,318 | ) | 8,599 | |||||||||||||
Total Assets | $ | 9,752 | $ | 21,947 | $ | 11,559 | $ | (12,576 | ) | $ | 30,682 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Current portion of long-term debt and capital leases | $ | — | $ | 498 | $ | 18 | $ | — | $ | 516 | |||||||||
Accounts payable | 501 | 247 | 34 | — | 782 | ||||||||||||||
Accounts payable — affiliate | 744 | (452 | ) | (122 | ) | (139 | ) | 31 | |||||||||||
Derivative instruments | 947 | 237 | — | (92 | ) | 1,092 | |||||||||||||
Cash collateral received in support of energy risk management activities | 81 | — | — | — | 81 | ||||||||||||||
Accrued expenses and other current liabilities | 316 | 209 | 465 | — | 990 | ||||||||||||||
Current liabilities - discontinued operations | — | 1,210 | — | — | 1,210 | ||||||||||||||
Total current liabilities | 2,589 | 1,949 | 395 | (231 | ) | 4,702 | |||||||||||||
Other Liabilities | |||||||||||||||||||
Long-term debt and capital leases | 244 | 8,252 | 7,461 | — | 15,957 | ||||||||||||||
Nuclear decommissioning reserve | 287 | — | — | — | 287 | ||||||||||||||
Nuclear decommissioning trust liability | 339 | — | — | — | 339 | ||||||||||||||
Deferred income taxes | 186 | 125 | (291 | ) | — | 20 | |||||||||||||
Derivative instruments | 157 | 170 | — | (43 | ) | 284 | |||||||||||||
Out-of-market contracts, net | 80 | 150 | — | — | 230 | ||||||||||||||
Non-current liabilities held-for-sale | — | 11 | — | — | 11 | ||||||||||||||
Other non-current liabilities | 396 | 431 | 324 | — | 1,151 | ||||||||||||||
Non-current liabilities - discontinued operations | — | 3,209 | — | — | 3,209 | ||||||||||||||
Total non-current liabilities | 1,689 | 12,348 | 7,494 | (43 | ) | 21,488 | |||||||||||||
Total Liabilities | 4,278 | 14,297 | 7,889 | (274 | ) | 26,190 | |||||||||||||
Redeemable noncontrolling interest in subsidiaries | — | 46 | — | — | 46 | ||||||||||||||
Stockholders’ Equity | 5,474 | 7,604 | 3,670 | (12,302 | ) | 4,446 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 9,752 | $ | 21,947 | $ | 11,559 | $ | (12,576 | ) | $ | 30,682 |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income/(loss) from continuing operations | $ | 369 | $ | (186 | ) | $ | (159 | ) | $ | (244 | ) | $ | (220 | ) | |||||
Adjustments to reconcile net income/(loss) to net cash provided by operating activities: | |||||||||||||||||||
Distributions from unconsolidated affiliates | — | 40 | — | (11 | ) | 29 | |||||||||||||
Equity in (earnings)/losses of unconsolidated affiliates | (3 | ) | 2 | — | 4 | 3 | |||||||||||||
Depreciation and amortization | 225 | 291 | 12 | — | 528 | ||||||||||||||
Provision for bad debts | 16 | 4 | — | — | 20 | ||||||||||||||
Amortization of nuclear fuel | 26 | — | — | — | 26 | ||||||||||||||
Amortization of financing costs and debt discount/premiums | — | 16 | 13 | — | 29 | ||||||||||||||
Adjustment for debt extinguishment | — | 4 | 10 | — | 14 | ||||||||||||||
Amortization of intangibles and out-of-market contracts | 20 | 62 | — | — | 82 | ||||||||||||||
Amortization of unearned equity compensation | — | — | 16 | — | 16 | ||||||||||||||
Impairment losses | — | 195 | — | — | 195 | ||||||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 460 | (208 | ) | (251 | ) | — | 1 | ||||||||||||
Changes in nuclear decommissioning trust liability | 13 | — | — | — | 13 | ||||||||||||||
Changes in derivative instruments | (64 | ) | 54 | 3 | — | (7 | ) | ||||||||||||
Changes in collateral deposits supporting energy risk management activities | 344 | (21 | ) | — | — | 323 | |||||||||||||
Proceeds from sale of emission allowances | 47 | (30 | ) | — | — | 17 | |||||||||||||
Loss on sale of assets | — | 8 | 75 | — | 83 | ||||||||||||||
Cash (used)/provided by changes in other working capital | (1,148 | ) | 239 | 386 | 251 | (272 | ) | ||||||||||||
Net cash provided by continuing operations | 305 | 470 | 105 | — | 880 | ||||||||||||||
Cash used by discontinued operations | (69 | ) | (69 | ) | |||||||||||||||
Net Cash Provided by Operating Activities | 305 | 401 | 105 | — | 811 | ||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Dividends from NRG Yield, Inc. | — | — | 39 | (39 | ) | — | |||||||||||||
Intercompany dividends | — | — | 12 | (12 | ) | — | |||||||||||||
Acquisition of businesses, net of cash acquired | — | (17 | ) | — | — | (17 | ) | ||||||||||||
Capital expenditures | (80 | ) | (329 | ) | (33 | ) | — | (442 | ) | ||||||||||
Increase in notes receivable | — | (3 | ) | — | — | (3 | ) | ||||||||||||
Purchases of emission allowances | (27 | ) | — | — | — | (27 | ) | ||||||||||||
Proceeds from sale of emission allowances | 25 | — | — | — | 25 | ||||||||||||||
Investments in nuclear decommissioning trust fund securities | (280 | ) | — | — | — | (280 | ) | ||||||||||||
Proceeds from sales of nuclear decommissioning trust fund securities | 267 | — | — | — | 267 | ||||||||||||||
Proceeds from renewable energy grants and state rebates | — | 10 | — | — | 10 | ||||||||||||||
Proceeds from sale of assets, net of cash disposed of | — | — | 25 | — | 25 | ||||||||||||||
Investments in unconsolidated affiliates | 1 | — | — | — | 1 | ||||||||||||||
Other | 27 | 4 | — | — | 31 | ||||||||||||||
Net cash (used)/provided by continuing operations | (67 | ) | (335 | ) | 43 | (51 | ) | (410 | ) | ||||||||||
Cash used by discontinued operations | (60 | ) | (60 | ) | |||||||||||||||
Net Cash (Used)/Provided by Investing Activities | (67 | ) | (395 | ) | 43 | (51 | ) | (470 | ) | ||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Dividends from NRG Yield, Inc. | — | (39 | ) | — | 39 | — | |||||||||||||
Payments (for)/from intercompany loans | (179 | ) | 45 | 134 | — | — | |||||||||||||
Intercompany dividends | (52 | ) | 40 | — | 12 | — | |||||||||||||
Payment of dividends to common and preferred stockholders | — | — | (57 | ) | — | (57 | ) | ||||||||||||
Payment for preferred shares | — | — | (226 | ) | — | (226 | ) | ||||||||||||
Net receipts for settlement of acquired derivatives that include financing elements | — | 4 | — | — | 4 | ||||||||||||||
Proceeds from issuance of long-term debt | — | 332 | 2,891 | — | 3,223 | ||||||||||||||
Payments for short and long-term debt | (1 | ) | (279 | ) | (3,225 | ) | — | (3,505 | ) | ||||||||||
Distributions from, net of contributions to, noncontrolling interest in subsidiaries | — | (21 | ) | — | — | (21 | ) | ||||||||||||
Payment of debt issuance costs | — | — | (35 | ) | — | (35 | ) | ||||||||||||
Other | (3 | ) | (7 | ) | — | — | (10 | ) | |||||||||||
Net cash used/provided by continuing operations | (235 | ) | 75 | (518 | ) | 51 | (627 | ) | |||||||||||
Cash provided by discontinued operations | 97 | 97 | |||||||||||||||||
Net Cash (Used)/Provided by Financing Activities | (235 | ) | 172 | (518 | ) | 51 | (530 | ) | |||||||||||
Change in cash from discontinued operations | (32 | ) | (32 | ) | |||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (3 | ) | — | — | (3 | ) | ||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties | 3 | 207 | (370 | ) | — | (160 | ) | ||||||||||||
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at Beginning of Period | — | 629 | 693 | — | 1,322 | ||||||||||||||
Cash and Cash Equivalents, Restricted Cash, and Funds Restricted by Counterparties at End of Period | $ | 3 | $ | 836 | $ | 323 | $ | — | $ | 1,162 |
(a) | All significant intercompany transactions have been eliminated in consolidation. |
• | Executive summary, including introduction and overview, business strategy, and changes to the business environment during the period, including environmental and regulatory matters; |
• | Results of operations; |
• | Financial condition, addressing liquidity position, sources and uses of liquidity, capital resources and requirements, commitments, and off-balance sheet arrangements; and |
• | Known trends that may affect NRG's results of operations and financial condition in the future. |
Global Generation Portfolio(a)(b) | ||||||||||||||||||
(In MW) | ||||||||||||||||||
Generation | ||||||||||||||||||
Generation Type | Gulf Coast | East/West (c) | Renewables(d) | NRG Yield(e) | Other(f) | Total Global | ||||||||||||
Natural gas(g) | 7,835 | 4,939 | — | 1,878 | — | 14,652 | ||||||||||||
Coal | 5,114 | 3,869 | — | — | — | 8,983 | ||||||||||||
Oil | — | 3,642 | — | 190 | — | 3,832 | ||||||||||||
Nuclear | 1,136 | — | — | — | — | 1,136 | ||||||||||||
Wind | — | — | 944 | 2,005 | — | 2,949 | ||||||||||||
Utility Scale Solar | — | — | 742 | 921 | — | 1,663 | ||||||||||||
Distributed Solar | — | — | 133 | 14 | 114 | 261 | ||||||||||||
Total generation capacity(g) | 14,085 | 12,450 | 1,819 | 5,008 | 114 | 33,476 | ||||||||||||
Capacity attributable to noncontrolling interest(h) | — | — | (684 | ) | (2,252 | ) | — | (2,936 | ) | |||||||||
Total net generation capacity | 14,085 | 12,450 | 1,135 | 2,756 | 114 | 30,540 |
(b) | GenOn, which represented 16,423 MW of global generation at December 31, 2016, was deconsolidated from NRG on June 14, 2017. |
(h) | NRG Yield's total generation capacity includes 6 MWs for noncontrolling interest for Spring Canyon II and III. NRG Yield's total generation capacity net of this noncontrolling interest was 5,002 MWs. |
Capacity Performance Product | |||
Zone | Cleared Capacity (MW)(a) | Price ($/MW-day) | |
COMED | 3,315 | $188.12 | |
EMAAC | 519 | $187.87 | |
MAAC | 158 | $86.04 | |
Total | 3,992 |
• | On July 12, 2017, NRG announced its Transformation Plan. The three-part, three-year plan is comprised of targets in the areas of operational and cost excellence, portfolio optimization, and capital structure and allocation enhancement. |
• | On the Petition Date, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of the bankruptcy filings and beginning on the Petition Date, NRG no longer consolidates GenOn for financial reporting purposes, as discussed in more detail in Note 3, Discontinued Operations and Dispositions and Note 14, Related Party Transactions of this Form 10-Q. |
• | On March 27, 2017, the Company completed the sale of the following projects to NRG Yield, Inc.: (i) a 16% interest in the Agua Caliente solar project, and (ii) NRG's interests in seven utility-scale solar projects located in Utah, which have reached commercial operations, for $130 million cash consideration, as discussed in more detail in Note 3, Discontinued Operations and Dispositions of this Form 10-Q. |
• | On August 1, 2017, NRG closed on the sale of its remaining 25% interest in NRG Wind TE Holdco, a portfolio of 12 wind projects, to NRG Yield, Inc. for total cash consideration of $41.5 million, excluding working capital adjustments. The transaction also includes potential additional payments to NRG dependent upon actual energy prices for merchant periods beginning in 2027. |
• | On May 26, 2017, Carlsbad Energy Holdings, LLC entered into a note payable agreement with financial institutions for the issuance of up to $407 million of senior secured notes that bear interest at a rate of 4.12%, and mature on October 31, 2038, as discussed in more detail in Note 8, Debt and Capital Leases of this Form 10-Q. |
• | On June 12, 2017, NRG repaid $125 million on the Revolving Credit Facility. As of June 30, 2017, there were no cash borrowings outstanding on the revolver. |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Energy revenue (a) | $ | 656 | $ | 755 | $ | (99 | ) | $ | 1,243 | $ | 1,545 | $ | (302 | ) | |||||||||
Capacity revenue (a) | 297 | 315 | (18 | ) | 559 | 634 | (75 | ) | |||||||||||||||
Retail revenue | 1,605 | 1,548 | 57 | 2,946 | 2,916 | 30 | |||||||||||||||||
Mark-to-market for economic hedging activities | 41 | (473 | ) | 514 | 159 | (422 | ) | 581 | |||||||||||||||
Contract amortization | (14 | ) | (14 | ) | — | (29 | ) | (29 | ) | — | |||||||||||||
Other revenues (b) | 116 | 117 | (1 | ) | 205 | 263 | (58 | ) | |||||||||||||||
Total operating revenues | 2,701 | 2,248 | 453 | 5,083 | 4,907 | 176 | |||||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||
Cost of sales (c) | 1,422 | 1,363 | (59 | ) | 2,683 | 2,679 | (4 | ) | |||||||||||||||
Mark-to-market for economic hedging activities | (18 | ) | (440 | ) | (422 | ) | 118 | (450 | ) | (568 | ) | ||||||||||||
Contract and emissions credit amortization (c) | 8 | 9 | 1 | 16 | 23 | 7 | |||||||||||||||||
Operations and maintenance | 340 | 426 | 86 | 712 | 842 | 130 | |||||||||||||||||
Other cost of operations | 85 | 85 | — | 167 | 177 | 10 | |||||||||||||||||
Total cost of operations | 1,837 | 1,443 | (394 | ) | 3,696 | 3,271 | 425 | ||||||||||||||||
Depreciation and amortization | 260 | 262 | 2 | 517 | 528 | 11 | |||||||||||||||||
Impairment losses | 63 | 56 | (7 | ) | 63 | 56 | (7 | ) | |||||||||||||||
Selling, general and administrative | 223 | 266 | 43 | 482 | 520 | 38 | |||||||||||||||||
Acquisition-related transaction and integration costs | 1 | 5 | 4 | 2 | 6 | 4 | |||||||||||||||||
Development costs | 18 | 18 | — | 35 | 44 | 9 | |||||||||||||||||
Total operating costs and expenses | 2,402 | 2,050 | (352 | ) | 4,795 | 4,425 | (370 | ) | |||||||||||||||
Other income - affiliate | 42 | 48 | (6 | ) | 90 | 96 | (6 | ) | |||||||||||||||
Gain/(loss) on sale of assets | 2 | (83 | ) | 85 | 4 | (83 | ) | 87 | |||||||||||||||
Operating Income | 343 | 163 | 180 | 382 | 495 | (113 | ) | ||||||||||||||||
Other Income/(Expense) | |||||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | (3 | ) | 4 | (7 | ) | 2 | (3 | ) | 5 | ||||||||||||||
Gain/(Impairment loss) on investment | — | 7 | (7 | ) | — | (139 | ) | 139 | |||||||||||||||
Other income, net | 10 | 5 | 5 | 18 | 22 | (4 | ) | ||||||||||||||||
Loss on debt extinguishment, net | — | (80 | ) | 80 | (2 | ) | (69 | ) | 67 | ||||||||||||||
Interest expense | (247 | ) | (237 | ) | (10 | ) | (471 | ) | (479 | ) | 8 | ||||||||||||
Total other expense | (240 | ) | (301 | ) | 61 | (453 | ) | (668 | ) | 215 | |||||||||||||
Income/(Loss) from Continuing Operations before Income Taxes | 103 | (138 | ) | 241 | (71 | ) | (173 | ) | 102 | ||||||||||||||
Income tax expense/(benefit) | 4 | 25 | (21 | ) | (1 | ) | 47 | (48 | ) | ||||||||||||||
Income/(Loss) from Continuing Operations | 99 | (163 | ) | 262 | (70 | ) | (220 | ) | 150 | ||||||||||||||
Loss from discontinued operations, net of income tax | (741 | ) | (113 | ) | (628 | ) | (775 | ) | (9 | ) | (766 | ) | |||||||||||
Net Loss | (642 | ) | (276 | ) | (366 | ) | (845 | ) | (229 | ) | (616 | ) | |||||||||||
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | (16 | ) | (5 | ) | (11 | ) | (55 | ) | (40 | ) | (15 | ) | |||||||||||
Net Loss Attributable to NRG Energy, Inc. | $ | (626 | ) | $ | (271 | ) | $ | (355 | ) | $ | (790 | ) | $ | (189 | ) | $ | (601 | ) | |||||
Business Metrics | |||||||||||||||||||||||
Average natural gas price — Henry Hub ($/MMBtu) | $ | 3.18 | $ | 1.95 | 63 | % | $ | 3.25 | $ | 2.02 | 61 | % |
Average on Peak Power Price ($/MWh) | ||||||||||
Three months ended June 30, | ||||||||||
Region | 2017 | 2016 | Change % | |||||||
Gulf Coast (a) | ||||||||||
ERCOT - Houston (b) | $ | 46.03 | $ | 24.33 | 89 | % | ||||
ERCOT - North(b) | 27.80 | 22.30 | 25 | % | ||||||
MISO - Louisiana Hub(c) | 41.81 | 33.20 | 26 | % | ||||||
East/West | ||||||||||
NY J/NYC(c) | 38.73 | 30.54 | 27 | % | ||||||
NEPOOL(c) | 32.19 | 28.17 | 14 | % | ||||||
PEPCO (PJM)(c) | 35.37 | 36.49 | (3 | )% | ||||||
PJM West Hub(c) | 33.24 | 32.07 | 4 | % | ||||||
CAISO - NP15(c) | 32.31 | 25.99 | 24 | % | ||||||
CAISO - SP15(c) | 32.31 | 25.13 | 29 | % |
Average Realized Power Price ($/MWh) | ||||||||||
Three months ended June 30, | ||||||||||
Region | 2017 | 2016 | Change % | |||||||
Gulf Coast | $ | 34.68 | $ | 38.82 | (11 | )% | ||||
East/West | 40.17 | 42.87 | (6 | )% |
Three months ended June 30, 2017 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Gulf Coast | East/West(a) | Subtotal | Retail | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | 484 | $ | 184 | $ | 668 | $ | — | $ | 107 | $ | 175 | $ | (294 | ) | $ | 656 | ||||||||||||||
Capacity revenue | 68 | 144 | 212 | — | — | 85 | 297 | ||||||||||||||||||||||||
Retail revenue | — | — | — | 1,605 | — | — | 1,605 | ||||||||||||||||||||||||
Mark-to-market for economic hedging activities | (90 | ) | 13 | (77 | ) | (2 | ) | (3 | ) | 123 | 41 | ||||||||||||||||||||
Contract amortization | 3 | — | 3 | (17 | ) | (14 | ) | ||||||||||||||||||||||||
Other revenue (b) | 55 | 21 | 76 | — | 19 | 41 | (20 | ) | 116 | ||||||||||||||||||||||
Operating revenue | 520 | 362 | 882 | 1,603 | 123 | 284 | (191 | ) | 2,701 | ||||||||||||||||||||||
Cost of fuel | (284 | ) | (82 | ) | (366 | ) | (2 | ) | (1 | ) | (7 | ) | 5 | (371 | ) | ||||||||||||||||
Other cost of sales(c) | (79 | ) | (52 | ) | (131 | ) | (1,211 | ) | (2 | ) | (7 | ) | 300 | (1,051 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (15 | ) | (2 | ) | (17 | ) | 158 | — | — | (123 | ) | 18 | |||||||||||||||||||
Contract and emission credit amortization | (7 | ) | (1 | ) | (8 | ) | — | — | — | — | (8 | ) | |||||||||||||||||||
Gross margin | $ | 135 | $ | 225 | $ | 360 | $ | 548 | $ | 120 | $ | 270 | $ | (9 | ) | $ | 1,289 | ||||||||||||||
Less: Mark-to-market for economic hedging activities, net | (105 | ) | 11 | (94 | ) | 156 | (3 | ) | — | — | 59 | ||||||||||||||||||||
Less: Contract and emission credit amortization, net | (4 | ) | (1 | ) | (5 | ) | — | — | (17 | ) | — | (22 | ) | ||||||||||||||||||
Economic gross margin | $ | 244 | $ | 215 | $ | 459 | $ | 392 | $ | 123 | $ | 287 | $ | (9 | ) | $ | 1,252 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 13,958 | 4,581 | 1,083 | 2,089 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 13,101 | 3,084 | 1,083 | 2,402 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $7 million of intercompany revenue to NRG Yield. | |||||||||||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits | |||||||||||||||||||||||||||||||
(d) MWh sold excludes generation at facilities in East/West and NRG Yield that generate revenue under capacity agreements. | |||||||||||||||||||||||||||||||
(e) Does not include thermal MWh of 9 thousand or MWt of 418 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 20 thousand or MWt of 418 thousand for thermal generated by NRG Yield. |
Three months ended June 30, 2016 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Gulf Coast | East/West(a) | Subtotal | Retail | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | 506 | $ | 206 | $ | 712 | $ | — | $ | 91 | $ | 173 | $ | (221 | ) | $ | 755 | ||||||||||||||
Capacity revenue | 71 | 159 | 230 | — | — | 87 | (2 | ) | 315 | ||||||||||||||||||||||
Retail revenue | — | — | — | 1,539 | — | — | 9 | 1,548 | |||||||||||||||||||||||
Mark-to-market for economic hedging activities | (421 | ) | (123 | ) | (544 | ) | (2 | ) | (2 | ) | — | 75 | (473 | ) | |||||||||||||||||
Contract amortization | 4 | — | 4 | (1 | ) | — | (17 | ) | — | (14 | ) | ||||||||||||||||||||
Other revenue (b) | 78 | 24 | 102 | — | 12 | 40 | (37 | ) | 117 | ||||||||||||||||||||||
Operating revenue | 238 | 266 | 504 | 1,536 | 101 | 283 | (176 | ) | 2,248 | ||||||||||||||||||||||
Cost of fuel | (225 | ) | (81 | ) | (306 | ) | (1 | ) | (1 | ) | (7 | ) | 1 | (314 | ) | ||||||||||||||||
Other cost of sales(c) | (109 | ) | (57 | ) | (166 | ) | (1,122 | ) | (3 | ) | (7 | ) | 249 | (1,049 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | 32 | 7 | 39 | 476 | — | — | (75 | ) | 440 | ||||||||||||||||||||||
Contract and emission credit amortization | (7 | ) | (1 | ) | (8 | ) | (1 | ) | — | — | — | (9 | ) | ||||||||||||||||||
Gross margin | $ | (71 | ) | $ | 134 | $ | 63 | $ | 888 | $ | 97 | $ | 269 | $ | (1 | ) | $ | 1,316 | |||||||||||||
Less: Mark-to-market for economic hedging activities, net | (389 | ) | (116 | ) | (505 | ) | 474 | (2 | ) | — | — | (33 | ) | ||||||||||||||||||
Less: Contract and emission credit amortization, net | (3 | ) | (1 | ) | (4 | ) | (2 | ) | — | (17 | ) | — | (23 | ) | |||||||||||||||||
Economic gross margin | $ | 321 | $ | 251 | $ | 572 | $ | 416 | $ | 99 | $ | 286 | $ | (1 | ) | $ | 1,372 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 13,036 | 4,805 | 901 | 2,041 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 11,770 | 3,327 | 901 | 2,417 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations. | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $4 million of intercompany revenue to NRG Yield. | |||||||||||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits | |||||||||||||||||||||||||||||||
(d) MWh sold excludes generation at facilities in the East, West and NRG Yield that generate revenue under capacity agreements. | |||||||||||||||||||||||||||||||
(e) Does not include thermal MWh of 9 thousand or MWt of 448 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 32 thousand or MWt of 448 thousand for thermal generated by NRG Yield. |
Three months ended June 30, | |||||||||||||
Weather Metrics | Gulf Coast | East/West | |||||||||||
2017 | |||||||||||||
CDDs (a) | 921 | 281 | |||||||||||
HDDs (a) | 41 | 380 | |||||||||||
2016 | |||||||||||||
CDDs | 873 | 273 | |||||||||||
HDDs | 53 | 410 | |||||||||||
10 year average | |||||||||||||
CDDs | 957 | 254 | |||||||||||
HDDs | 75 | 438 |
(a) | National Oceanic and Atmospheric Administration-Climate Prediction Center - A Cooling Degree Day, or CDD, represents the number of degrees that the mean temperature for a particular day is above 65 degrees Fahrenheit in each region. A Heating Degree Day, or HDD, represents the number of degrees that the mean temperature for a particular day is below 65 degrees Fahrenheit in each region. The CDDs/HDDs for a period of time are calculated by adding the CDDs/HDDs for each day during the period. |
(In millions) | |||
Lower gross margin due to 10% decrease in average realized prices primarily in Texas due to lower hedged power prices | $ | (52 | ) |
Lower energy margin due to increased supply cost on load contracts | (18 | ) | |
Lower gross margin due to a 14% decrease in nuclear generation driven by the timing of planned outages | (11 | ) | |
Lower gross margin due to a 55% decrease in PJM capacity prices and a 45% decrease in volume sold | (8 | ) | |
Higher gross margin primarily due to an 3% increase in higher coal generation mainly in Texas driven by timing of planned outages | 14 | ||
Other | (2 | ) | |
Decrease in economic gross margin | $ | (77 | ) |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 284 | ||
Decrease in contract and emission credit amortization | (1 | ) | |
Increase in gross margin | $ | 206 |
(In millions) | |||
Lower gross margin due to a 5% decrease in average realized energy prices coupled with spark spread contraction | $ | (20 | ) |
Lower gross margin due to a 12% decrease in PJM capacity volumes sold coupled with a 9% decrease in NY/NE realized capacity prices | (13 | ) | |
Lower gross margin from commercial optimization activities | (12 | ) | |
Other | 9 | ||
Decrease in economic gross margin | $ | (36 | ) |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 127 | ||
Increase in gross margin | $ | 91 |
Three months ended June 30, | |||||||
(In millions except otherwise noted) | 2017 | 2016 | |||||
Retail revenue | $ | 1,515 | $ | 1,478 | |||
Supply management revenue | 52 | 40 | |||||
Capacity revenue | 38 | 21 | |||||
Customer mark-to-market | (2 | ) | (2 | ) | |||
Contract amortization | — | (1 | ) | ||||
Operating revenue (a) | 1,603 | 1,536 | |||||
Cost of sales (b) | (1,213 | ) | (1,123 | ) | |||
Mark-to-market for economic hedging activities | 158 | 476 | |||||
Contract amortization | — | (1 | ) | ||||
Gross Margin | $ | 548 | $ | 888 | |||
Less: Mark-to-market for economic hedging activities, net | 156 | 474 | |||||
Less: Contract and emission credit amortization, net | — | (2 | ) | ||||
Economic Gross Margin | $ | 392 | $ | 416 | |||
Business Metrics | |||||||
Mass electricity sales volume - GWh - Gulf Coast | 9,234 | 8,674 | |||||
Mass electricity sales volume - GWh - All other regions | 1,357 | 1,444 | |||||
C&I electricity sales volume — GWh - All regions | 5,308 | 4,671 | |||||
Natural gas sales volumes (MDth) | 438 | 328 | |||||
Average Retail Mass customer count (in thousands) | 2,859 | 2,765 | |||||
Ending Retail Mass customer count (in thousands) | 2,887 | 2,771 |
(a) | Includes intercompany sales of $1 million and $1 million in 2017 and 2016, respectively, representing sales from Retail to the Gulf Coast region. |
(b) | Includes intercompany purchases of $286 million and $184 million in 2017 and 2016, respectively. |
(In millions) | |||
Lower gross margin due to lower revenue of $16 million, primarily due to lower rates to customers and higher supply costs of $25 million driven primarily by an increase in power prices | $ | (41 | ) |
Lower gross margin of $5 million due to a reduction in load of 173,000 MWhs and $3 million in lower margin due to the unfavorable impacts of selling back excess supply due to milder weather conditions in 2017 compared to 2016 | (8 | ) | |
Higher gross margin due to higher volume driven by higher average customer usage and mix | 25 | ||
Decrease in economic gross margin | $ | (24 | ) |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (318 | ) | |
Increase in contract and emission credit amortization | 2 | ||
Decrease in gross margin | $ | (340 | ) |
Three months ended June 30, 2017 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Gulf Coast | East/West(a) | Retail | Renewables | Eliminations(b) | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (7 | ) | $ | (11 | ) | $ | (1 | ) | $ | — | $ | 50 | $ | 31 | ||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (83 | ) | 24 | (1 | ) | (3 | ) | 73 | 10 | ||||||||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (90 | ) | $ | 13 | $ | (2 | ) | $ | (3 | ) | $ | 123 | $ | 41 | ||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (4 | ) | $ | — | $ | 45 | $ | — | $ | (50 | ) | $ | (9 | ) | ||||||||
Reversal of acquired loss positions related to economic hedges | — | — | 1 | — | — | 1 | |||||||||||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (11 | ) | (2 | ) | 112 | — | (73 | ) | 26 | ||||||||||||||
Total mark-to-market (losses)/gains in operating costs and expenses | $ | (15 | ) | $ | (2 | ) | $ | 158 | $ | — | $ | (123 | ) | $ | 18 |
(a) | Includes International and BETM. |
(b) | Represents the elimination of the intercompany activity between Retail and Generation. |
Three months ended June 30, 2016 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Gulf Coast | East/West(a) | Retail | Renewables | Eliminations(b) | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (129 | ) | $ | (21 | ) | $ | (1 | ) | $ | — | $ | 35 | $ | (116 | ) | |||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (292 | ) | (102 | ) | (1 | ) | (2 | ) | 40 | (357 | ) | ||||||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (421 | ) | $ | (123 | ) | $ | (2 | ) | $ | (2 | ) | $ | 75 | $ | (473 | ) | ||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 7 | $ | 5 | $ | 121 | $ | — | $ | (35 | ) | $ | 98 | ||||||||||
Reversal of acquired (gain)/loss positions related to economic hedges | — | (3 | ) | 1 | — | — | (2 | ) | |||||||||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 25 | 5 | 354 | — | (40 | ) | 344 | ||||||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 32 | $ | 7 | $ | 476 | $ | — | $ | (75 | ) | $ | 440 |
(a) | Includes International and BETM. |
(b) | Represents the elimination of the intercompany activity between Retail and Generation. |
Three months ended June 30, | |||||||
(In millions) | 2017 | 2016 | |||||
Trading gains | |||||||
Realized | $ | 14 | $ | 23 | |||
Unrealized | 12 | 13 | |||||
Total trading gains | $ | 26 | $ | 36 |
Generation | Retail | Renewables | NRG Yield | Corporate | Eliminations | Total | ||||||||||||||||||||||||
Gulf Coast | East/West(a) | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||
Three months ended June 30, 2017 | $ | 107 | $ | 108 | $ | 56 | $ | 34 | $ | 46 | $ | — | $ | (11 | ) | $ | 340 | |||||||||||||
Three months ended June 30, 2016 | $ | 141 | $ | 140 | $ | 60 | $ | 44 | $ | 49 | $ | — | $ | (8 | ) | $ | 426 |
(a) | Includes International, BETM and generation eliminations of $1 million in 2017 and $2 million in 2016. |
(In millions) | |||
Decrease in Gulf Coast operation and maintenance expense due primarily to lower expenses at Big Cajun II in 2017 | $ | (25 | ) |
Decrease in operation and maintenance expenses due primarily to major maintenance activities and environmental control work at Midwest Generation in 2016 | (39 | ) | |
Decrease in Renewables operation and maintenance expense primarily due to unplanned outages at Ivanpah in 2016 | (10 | ) | |
Decrease in Retail operation and maintenance expense due primarily to a reduction in employee expenses | (4 | ) | |
Other | (8 | ) | |
$ | (86 | ) |
Generation | Retail | Renewables | NRG Yield | Corporate | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three months ended June 30, 2017 | $ | 48 | $ | 106 | $ | 14 | $ | 6 | $ | 49 | $ | 223 | |||||||||||
Three months ended June 30, 2016 | 74 | 112 | 15 | 3 | 62 | 266 |
(In millions) | |||
Increase in derivative interest expense from changes in fair value of interest rate swaps | $ | 22 | |
Increase due to the issuance of Utah Portfolio debt, due 2022 and CVSR Holdco Notes, due 2037 during 2016 | 6 | ||
Increase due to the issuance of Yield Operating Senior Notes, due 2026, partially offset by repayment of the Yield Revolving Credit Facility, due 2019 during 2016 | 2 | ||
Decrease due to the repurchase of Senior Notes in 2016 of $46 million, partially offset by Senior Notes issued in 2016 of $31 million | (15 | ) | |
Decrease due to the redemption of bonds related to Peaker Finance Company, due 2019 during 2016 | (5 | ) | |
$ | 10 |
Average on Peak Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2017 | 2016 | Change % | |||||||
Gulf Coast (a) | ||||||||||
ERCOT - Houston (b) | $ | 36.86 | $ | 22.39 | 65 | % | ||||
ERCOT - North(b) | 25.28 | 20.97 | 21 | % | ||||||
MISO - Louisiana Hub(c) | 38.86 | 28.52 | 36 | % | ||||||
East/West | ||||||||||
NY J/NYC(c) | 39.20 | 30.02 | 31 | % | ||||||
NEPOOL(c) | 30.35 | 32.02 | (5 | )% | ||||||
PEPCO (PJM)(c) | 35.17 | 36.46 | (4 | )% | ||||||
PJM West Hub(c) | 32.88 | 31.78 | 3 | % | ||||||
CAISO - NP15(c) | 32.02 | 26.04 | 23 | % | ||||||
CAISO - SP15(c) | 30.94 | 24.94 | 24 | % |
Average Realized Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2017 | 2016 | Change % | |||||||
Gulf Coast | $ | 34.25 | $ | 39.41 | (13 | )% | ||||
East/West | 41.81 | 43.81 | (5 | )% |
Six months ended June 30, 2017 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Gulf Coast | East/West(a) | Subtotal | Retail | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | 868 | $ | 408 | $ | 1,276 | $ | — | $ | 179 | $ | 289 | $ | (501 | ) | $ | 1,243 | ||||||||||||||
Capacity revenue | 133 | 266 | 399 | — | — | 164 | (4 | ) | 559 | ||||||||||||||||||||||
Retail revenue | — | — | — | 2,939 | — | — | 7 | 2,946 | |||||||||||||||||||||||
Mark-to-market for economic hedging activities | 41 | 4 | 45 | — | 3 | — | 111 | 159 | |||||||||||||||||||||||
Contract amortization | 6 | 6 | (1 | ) | — | (34 | ) | — | (29 | ) | |||||||||||||||||||||
Other revenue (b) | 102 | 20 | 122 | — | 38 | 83 | (38 | ) | 205 | ||||||||||||||||||||||
Operating revenue | 1,150 | 698 | 1,848 | 2,938 | 220 | 502 | (425 | ) | 5,083 | ||||||||||||||||||||||
Cost of fuel | (498 | ) | (170 | ) | (668 | ) | (7 | ) | (2 | ) | (18 | ) | 31 | (664 | ) | ||||||||||||||||
Other cost of sales(c) | (157 | ) | (124 | ) | (281 | ) | (2,204 | ) | (5 | ) | (12 | ) | 483 | (2,019 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (24 | ) | (3 | ) | (27 | ) | 20 | — | — | (111 | ) | (118 | ) | ||||||||||||||||||
Contract and emission credit amortization | (14 | ) | (2 | ) | (16 | ) | — | — | — | — | (16 | ) | |||||||||||||||||||
Gross margin | $ | 457 | $ | 399 | $ | 856 | $ | 747 | $ | 213 | $ | 472 | $ | (22 | ) | $ | 2,266 | ||||||||||||||
Less: Mark-to-market for economic hedging activities, net | 17 | 1 | 18 | 20 | 3 | — | — | 41 | |||||||||||||||||||||||
Less: Contract and emission credit amortization, net | (8 | ) | (2 | ) | (10 | ) | (1 | ) | — | (34 | ) | — | (45 | ) | |||||||||||||||||
Economic gross margin | $ | 448 | $ | 400 | $ | 848 | $ | 728 | $ | 210 | $ | 506 | $ | (22 | ) | $ | 2,270 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 25,340 | 9,759 | 2,012 | 3,751 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 23,790 | 6,101 | 2,013 | 4,206 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations. | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $14 million of intercompany revenue to NRG Yield. | |||||||||||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits. | |||||||||||||||||||||||||||||||
(d) MWh sold excludes generation at facilities in the East, West and NRG Yield that generate revenue under capacity agreements. | |||||||||||||||||||||||||||||||
(e) Does not include thermal MWh of 18 thousand or MWt of 987 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 36 thousand or MWt of 987 thousand for thermal generated by NRG Yield. |
Six months ended June 30, 2016 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Gulf Coast | East/West(a) | Subtotal | Retail | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | 948 | $ | 534 | $ | 1,482 | $ | — | $ | 176 | $ | 301 | $ | (414 | ) | $ | 1,545 | ||||||||||||||
Capacity revenue | 150 | 320 | 470 | — | — | 170 | (6 | ) | 634 | ||||||||||||||||||||||
Retail revenue | — | — | — | 2,909 | — | — | 7 | 2,916 | |||||||||||||||||||||||
Mark-to-market for economic hedging activities | (449 | ) | (66 | ) | (515 | ) | (2 | ) | (1 | ) | — | 96 | (422 | ) | |||||||||||||||||
Contract amortization | 7 | — | 7 | (1 | ) | — | (34 | ) | (1 | ) | (29 | ) | |||||||||||||||||||
Other revenue (b) | 131 | 62 | 193 | — | 22 | 80 | (32 | ) | 263 | ||||||||||||||||||||||
Operating revenue | 787 | 850 | 1,637 | 2,906 | 197 | 517 | (350 | ) | 4,907 | ||||||||||||||||||||||
Cost of fuel | (401 | ) | (181 | ) | (582 | ) | (4 | ) | (1 | ) | (18 | ) | 96 | (509 | ) | ||||||||||||||||
Other cost of sales(c) | (195 | ) | (162 | ) | (357 | ) | (2,144 | ) | (8 | ) | (12 | ) | 351 | (2,170 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | 35 | 1 | 36 | 510 | — | — | (96 | ) | 450 | ||||||||||||||||||||||
Contract and emission credit amortization | (13 | ) | (4 | ) | (17 | ) | (3 | ) | — | (6 | ) | 3 | (23 | ) | |||||||||||||||||
Gross margin | $ | 213 | $ | 504 | $ | 717 | $ | 1,265 | $ | 188 | $ | 481 | $ | 4 | $ | 2,655 | |||||||||||||||
Less: Mark-to-market for economic hedging activities, net | (414 | ) | (65 | ) | (479 | ) | 508 | (1 | ) | — | — | 28 | |||||||||||||||||||
Less: Contract and emission credit amortization, net | (6 | ) | (4 | ) | (10 | ) | (4 | ) | — | (40 | ) | 2 | (52 | ) | |||||||||||||||||
Economic gross margin | $ | 633 | $ | 573 | $ | 1,206 | $ | 761 | $ | 189 | $ | 521 | $ | 2 | $ | 2,679 | |||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 24,053 | 12,190 | 1,991 | 3,819 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 21,500 | 7,306 | 1,991 | 4,456 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations. | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $8 million of intercompany revenue to NRG Yield. | |||||||||||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits | |||||||||||||||||||||||||||||||
(d) MWh sold excludes generation at facilities in the East, West and NRG Yield that generate revenue under capacity agreements. | |||||||||||||||||||||||||||||||
(e) Does not include thermal MWh of 49 thousand or MWt of 1,001 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 123 thousand or MWt of 1,001 thousand for thermal generated by NRG Yield. |
Six months ended June 30, | |||||||||||||||
Weather Metrics | Gulf Coast | Other | |||||||||||||
2017 | |||||||||||||||
CDDs (a) | 1,125 | 301 | |||||||||||||
HDDs (a) | 673 | 2,008 | |||||||||||||
2016 | |||||||||||||||
CDDs | 950 | 292 | |||||||||||||
HDDs | 984 | 2,023 | |||||||||||||
10 year average | |||||||||||||||
CDDs | 1,039 | 271 | |||||||||||||
HDDs | 1,161 | 2,237 |
(a) | National Oceanic and Atmospheric Administration-Climate Prediction Center - A Cooling Degree Day, or CDD, represents the number of degrees that the mean temperature for a particular day is above 65 degrees Fahrenheit in each region. A Heating Degree Day, or HDD, represents the number of degrees that the mean temperature for a particular day is below 65 degrees Fahrenheit in each region. The CDDs/HDDs for a period of time are calculated by adding the CDDs/HDDs for each day during the period. |
(In millions) | |||
Lower gross margin due to 12% decrease in lower average realized prices primarily in Texas due to lower hedged power prices | $ | (149 | ) |
Lower energy margin due to increased supply cost on load contracts | (26 | ) | |
Lower gross margin due to a 62% decrease in PJM capacity prices and a 38% decrease in volume sold | (22 | ) | |
Lower capacity margin on contract expirations and lower demand | (20 | ) | |
Lower gross margin due to an 11% decrease in nuclear generation driven by the timing of planned outages | (18 | ) | |
Higher gross margin primarily due to a 16% increase in higher coal generation mainly in Texas driven by timing of planned outages | 43 | ||
Other | 7 | ||
Decrease in economic gross margin | $ | (185 | ) |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 431 | ||
Decrease in contract and emission credit amortization | (2 | ) | |
Increase in gross margin | $ | 244 |
(In millions) | |||
Lower gross margin due to a 22% decrease in PJM capacity volumes sold coupled with a 12% decrease in NY/NE realized capacity prices and a 5% decrease in NY/NE capacity volumes | $ | (44 | ) |
Lower gross margin by BETM due to higher gains in 2016 on over the counter strategies, offset in small part by higher gains in 2017 on congestion strategies | (31 | ) | |
Lower gross margin from commercial optimization activities | (31 | ) | |
Lower gross margin due to lower load contract volumes coupled with higher supply costs | (29 | ) | |
Lower gross margin due to a 16% decrease in generation driven by lower economic generation due to outages and milder weather compared to prior year | (24 | ) | |
Lower gross margin due to a 3% decrease in average realized energy prices coupled with spark spread contraction | (17 | ) | |
Other | 3 | ||
Decrease in economic gross margin | $ | (173 | ) |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 66 | ||
Increase in contract and emission credit amortization | 2 | ||
Decrease in gross margin | $ | (105 | ) |
Six months ended June 30, | |||||||
(In millions except otherwise noted) | 2017 | 2016 | |||||
Retail revenue | $ | 2,813 | $ | 2,816 | |||
Supply management revenue | 84 | 64 | |||||
Capacity revenue | 42 | 29 | |||||
Customer mark-to-market | — | (2 | ) | ||||
Contract amortization | (1 | ) | (1 | ) | |||
Operating revenue (a) | 2,938 | 2,906 | |||||
Cost of sales (b) | (2,211 | ) | (2,148 | ) | |||
Mark-to-market for economic hedging activities | 20 | 510 | |||||
Contract amortization | — | (3 | ) | ||||
Gross Margin | $ | 747 | $ | 1,265 | |||
Less: Mark-to-market for economic hedging activities, net | 20 | 508 | |||||
Less: Contract and emission credit amortization, net | (1 | ) | (4 | ) | |||
Economic Gross Margin | $ | 728 | $ | 761 | |||
Business Metrics | |||||||
Mass electricity sales volume - GWh - Gulf Coast | 16,218 | 15,386 | |||||
Mass electricity sales volume - GWh - All other regions | 2,998 | 3,278 | |||||
C&I electricity sales volume — GWh - All regions | 10,141 | 9,211 | |||||
Natural gas sales volumes (MDth) | 1,700 | 1,251 | |||||
Average Retail Mass customer count (in thousands) | 2,844 | 2,763 | |||||
Ending Retail Mass customer count (in thousands) | 2,887 | 2,771 |
(a) | Includes intercompany sales of $2 million and $2 million in 2017 and 2016, respectively, representing sales from Retail to the Gulf Coast region. |
(b) | Includes intercompany purchases of $465 million and $315 million in 2017 and 2016. |
(In millions) | |||
Lower gross margin due to lower revenue of $73 million or approximately $3 per MWh, driven by lower rates to customers, partially offset by lower supply costs of $21 million or approximately $1 per MWh driven primarily by a decrease in power prices at the time of procurement | $ | (52 | ) |
Lower gross margin of $18 million due to a reduction in load of 481,000 MWhs and $9 million in lower margin due to the unfavorable impacts of selling back excess supply due to milder weather conditions in 2017 compared to 2016 | (27 | ) | |
Higher gross margin due to higher volumes driven by higher average customer usage and mix | 46 | ||
Decrease in economic gross margin | $ | (33 | ) |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (488 | ) | |
Increase in contract and emission credit amortization | 3 | ||
Decrease in gross margin | $ | (518 | ) |
Six months ended June 30, 2017 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Gulf Coast | East/West(a) | Retail | Renewables | Eliminations(b) | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (8 | ) | $ | (37 | ) | $ | (1 | ) | $ | — | $ | 89 | $ | 43 | ||||||||
Net unrealized gains on open positions related to economic hedges | 49 | 41 | 1 | 3 | 22 | 116 | |||||||||||||||||
Total mark-to-market gains in operating revenues | $ | 41 | $ | 4 | $ | — | $ | 3 | $ | 111 | $ | 159 | |||||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (7 | ) | $ | 2 | $ | 76 | $ | — | $ | (89 | ) | $ | (18 | ) | ||||||||
Reversal of acquired loss positions related to economic hedges | — | — | 1 | — | — | 1 | |||||||||||||||||
Net unrealized losses on open positions related to economic hedges | (17 | ) | (5 | ) | (57 | ) | — | (22 | ) | (101 | ) | ||||||||||||
Total mark-to-market (losses)/gains in operating costs and expenses | $ | (24 | ) | $ | (3 | ) | $ | 20 | $ | — | $ | (111 | ) | $ | (118 | ) |
(a) | Includes International and BETM. |
(b) | Represents the elimination of the intercompany activity between Retail and Generation. |
Six months ended June 30, 2016 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Gulf Coast | East/West(a) | Retail | Renewables | Eliminations(a) | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (268 | ) | $ | (67 | ) | $ | (1 | ) | $ | — | $ | 77 | $ | (259 | ) | |||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (181 | ) | 1 | (1 | ) | (1 | ) | 19 | (163 | ) | |||||||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (449 | ) | $ | (66 | ) | $ | (2 | ) | $ | (1 | ) | $ | 96 | $ | (422 | ) | ||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 19 | $ | 8 | $ | 264 | $ | — | $ | (77 | ) | $ | 214 | ||||||||||
Reversal of acquired (gain)/loss positions related to economic hedges | — | (5 | ) | 1 | — | — | (4 | ) | |||||||||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 16 | (2 | ) | 245 | — | (19 | ) | 240 | |||||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 35 | $ | 1 | $ | 510 | $ | — | $ | (96 | ) | $ | 450 |
(a) | Includes International and BETM. |
(b) | Represents the elimination of the intercompany activity between Retail and Generation. |
Six months ended June 30, | |||||||
(In millions) | 2017 | 2016 | |||||
Trading gains/(losses) | |||||||
Realized | $ | 28 | $ | 47 | |||
Unrealized | (2 | ) | 32 | ||||
Total trading gains | $ | 26 | $ | 79 |
Generation | Retail | Renewables | NRG Yield | Corporate | Eliminations | Total | ||||||||||||||||||||||||
Gulf Coast | East/West(a) | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||
Six months ended June 30, 2017 | $ | 250 | $ | 207 | $ | 114 | $ | 63 | $ | 97 | $ | 2 | $ | (21 | ) | $ | 712 | |||||||||||||
Six months ended June 30, 2016 | 281 | 278 | 120 | 74 | 93 | 10 | $ | (14 | ) | 842 |
(a) | Includes International, BETM and generation eliminations of $2 million in 2017 and $3 million in 2016. |
(In millions) | |||
Decrease in operation and maintenance expenses due primarily to major maintenance activities and environmental control work at Midwest Generation in 2016 | $ | (51 | ) |
Decrease in Gulf Coast operation and maintenance expense due primarily to lower expenses at Big Cajun II in 2017 | (31 | ) | |
Decrease in operations and maintenance expense primarily related to the deactivation of the Huntley and Dunkirk facilities in 2016 | (15 | ) | |
Decrease in Renewables operation and maintenance expense primarily due to unplanned outages at Ivanpah in 2016 as well as cost reductions in 2017 | (9 | ) | |
Decrease in Retail operation and maintenance expense due primarily to a reduction in employee expenses | (6 | ) | |
Decrease in operations and maintenance expense primarily related to the timing of outage work at Arthur Kill in 2016 | (6 | ) | |
Other | (12 | ) | |
$ | (130 | ) |
Generation | Retail | Renewables | NRG Yield | Corporate | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Six months ended June 30, 2017 | $ | 104 | $ | 226 | $ | 28 | $ | 10 | $ | 114 | $ | 482 | |||||||||||
Six months ended June 30, 2016 | 136 | 226 | 31 | 6 | 121 | 520 |
(In millions) | |||
Decrease due to the repurchase of Senior Notes in 2016 of $101 million, partially offset by Senior Notes issued in 2016 of $70 million | $ | (31 | ) |
Decrease due to the redemption of bonds related to Peaker Finance Company, due 2019 during 2016 | (7 | ) | |
Increase due to the issuance of Utah Portfolio debt, due 2022 and CVSR Holdco Notes, due 2037 during 2016 | 12 | ||
Increase in derivative interest expense from changes in fair value of interest rate swaps | 10 | ||
Increase due to the issuance of Yield Operating Senior Notes, due 2026, partially offset by repayment of the Yield Revolving Credit Facility, due 2019 during 2016 | 5 | ||
Other | 3 | ||
$ | (8 | ) |
(In millions) | June 30, 2017 | December 31, 2016 | |||||
Cash and cash equivalents: | |||||||
NRG excluding NRG Yield | $ | 571 | $ | 621 | |||
NRG Yield and subsidiaries | 181 | 317 | |||||
Restricted cash - operating | 141 | 56 | |||||
Restricted cash - reserves (a) | 328 | 390 | |||||
Total | 1,221 | 1,384 | |||||
Total credit facility availability | 1,497 | 989 | |||||
Total liquidity, excluding collateral received | $ | 2,718 | $ | 2,373 |
S&P | Moody's | ||
NRG Energy, Inc. | BB- Stable | Ba3 Stable | |
7.625% Senior Notes, due 2018 | BB- | B1 | |
7.875% Senior Notes, due 2021 | BB- | B1 | |
6.25% Senior Notes, due 2022 | BB- | B1 | |
6.625% Senior Notes, due 2023 | BB- | B1 | |
6.25% Senior Notes, due 2024 | BB- | B1 | |
7.25% Senior Notes, due 2026 | BB- | B1 | |
6.625% Senior Notes, due 2027 | BB- | B1 | |
Term Loan Facility, due 2023 | BB+ | Baa3 | |
NRG Yield, Inc. | BB | Ba2 | |
5.375% NRG Yield Operating LLC Senior Notes, due 2024 | BB | Ba2 | |
5.00% NRG Yield Operating LLC Senior Notes, due 2026 | BB | Ba2 |
Equivalent Net Sales Secured by First Lien Structure (a) | 2017 | 2018 | 2019 | 2020 | 2021 | |||||||||
In MW | 1,562 | 1,033 | — | — | — | |||||||||
As a percentage of total net coal and nuclear capacity (b) | 29 | % | 19 | % | — | % | — | % | — | % |
(a) | Equivalent net sales include natural gas swaps converted using a weighted average heat rate by region. |
(b) | Net coal and nuclear capacity represents 80% of the Company’s total coal and nuclear assets eligible under the first lien which excludes coal assets acquired in the EME (Midwest Generation) acquisition, assets in NRG Yield, Inc. and NRG's assets that have project level financing. |
Maintenance | Environmental | Growth Investments | Total | ||||||||||||
(In millions) | |||||||||||||||
Generation | |||||||||||||||
Gulf Coast | $ | 53 | $ | 1 | $ | 3 | $ | 57 | |||||||
East/West | 16 | 24 | 181 | 221 | |||||||||||
Retail | 14 | — | 13 | 27 | |||||||||||
Renewables | 2 | — | 213 | 215 | |||||||||||
NRG Yield | 11 | — | 2 | 13 | |||||||||||
Corporate | 6 | — | 3 | 9 | |||||||||||
Total cash capital expenditures for the six months ended June 30, 2017 | 102 | 25 | 415 | 542 | |||||||||||
Funding from third party equity partners, cash grants and debt financing, net of fees | — | — | (593 | ) | (593 | ) | |||||||||
Other investments (a) | — | — | 66 | 66 | |||||||||||
Total capital expenditures and investments, net of financings | 102 | 25 | (112 | ) | 15 | ||||||||||
Estimated capital expenditures for the remainder of 2017 | 119 | 10 | 273 | 402 | |||||||||||
Funding from third party equity partners, cash grants and debt financing, net of fees | — | — | (76 | ) | (76 | ) | |||||||||
NRG estimated capital expenditures for the remainder of 2017, net of financings | $ | 119 | $ | 10 | $ | 197 | $ | 326 |
(a) | Other investments include restricted cash activity. |
• | Environmental capital expenditures — For the six months ended June 30, 2017, the Company's environmental capital expenditures included DSI/ESP upgrades at the Powerton facility and the Joliet gas conversion to satisfy CPS. |
• | Growth Investments capital expenditures — For the six months ended June 30, 2017, the Company's growth investment capital expenditures included $184 million for repowering projects, $156 million for solar projects, $57 million for wind projects and $16 million for the Company's other growth projects. |
Second Quarter 2017 | First Quarter 2017 | ||||||
Dividends per Common Share | $ | 0.030 | $ | 0.030 |
Facility | Net Generation Capacity (MW) (b) | Project Type | Fuel Type | Targeted COD | ||||
Repowerings | ||||||||
Carlsbad Peakers (formerly Encina) Units 1, 2, 3, 4, 5 and GT | 527 | Growth | Natural Gas | Q4 2018 | ||||
Puente (formerly Mandalay) Units 1 and 2(a) | 262 | Growth | Natural Gas | Q2 2020 | ||||
Total Fuel Repowerings | 789 |
Six months ended June 30, | |||||||||||
2017 | 2016 | Change | |||||||||
(In millions) | |||||||||||
Net cash used by operating activities | $ | 74 | $ | 811 | $ | (737 | ) | ||||
Net cash used by investing activities | (545 | ) | (470 | ) | (75 | ) | |||||
Net cash used by financing activities | 18 | (530 | ) | 548 |
(In millions) | |||
Changes in cash collateral in support of risk management activities due to changes in commodity prices | $ | (512 | ) |
Decrease in operating income adjusted for non-cash items | (180 | ) | |
Increase in inventory due to lower generation in 2017, combined with earlier inventory purchases in the fourth quarter of 2015 for anticipated 2016 generation requirements | (78 | ) | |
Other | 2 | ||
Cash provided by discontinued operations | 31 | ||
$ | (737 | ) |
(In millions) | |||
Decrease in maintenance and environmental capital expenditures, offset by an increase in growth capital expenditures | $ | (100 | ) |
Increase in investments in unconsolidated affiliates | (30 | ) | |
Proceeds from sale of equipment | 18 | ||
Net increase in nuclear decommissioning trust fund activity | 11 | ||
Increase in insurance proceeds received in 2017 related to the Cottonwood generations station outage in 2016 | 10 | ||
Other | 9 | ||
Cash provided by discontinued operations | 7 | ||
$ | (75 | ) |
(In millions) | |||
Increase in borrowings, primarily related to Agua Caliente Borrower 1 & 2, 2038 Senior Notes and the Carlsbad Project Financing as well as reduced payments due to repurchases of Senior Notes in 2016 | $ | 698 | |
Increase due to purchase of preferred stock in 2016 | 226 | ||
Decrease in payment of dividends, primarily related to reduction of NRG dividend rate in the first quarter of 2016 | 38 | ||
Increase in cash contributions, net of distributions from non-controlling interest in 2017 | 35 | ||
Payment for affiliate receivable | (125 | ) | |
Decrease in financing element related to acquired derivatives | (3 | ) | |
Cash used by discontinued operations | (321 | ) | |
$ | 548 |
Derivative Activity (Losses)/Gains | (In millions) | ||
Fair Value of Contracts as of December 31, 2016 | $ | (128 | ) |
Contracts realized or otherwise settled during the period | 26 | ||
Changes in fair value | (32 | ) | |
Fair Value of Contracts as of June 30, 2017 | $ | (134 | ) |
Fair Value of Contracts as of June 30, 2017 | |||||||||||||||||||
Maturity | |||||||||||||||||||
Fair value hierarchy (Losses)/Gains | 1 Year or Less | Greater than 1 Year to 3 Years | Greater than 3 Years to 5 Years | Greater than 5 Years | Total Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||||
Level 1 | $ | (54 | ) | $ | (45 | ) | $ | (7 | ) | $ | — | $ | (106 | ) | |||||
Level 2 | (7 | ) | (2 | ) | (5 | ) | (3 | ) | (17 | ) | |||||||||
Level 3 | (6 | ) | 2 | (1 | ) | (6 | ) | (11 | ) | ||||||||||
Total | $ | (67 | ) | $ | (45 | ) | $ | (13 | ) | $ | (9 | ) | $ | (134 | ) |
(In millions) | 2017 | 2016 | |||||
VaR as of June 30, | $ | 49 | $ | 63 | |||
Three months ended June 30, | |||||||
Average | $ | 59 | $ | 62 | |||
Maximum | 66 | 68 | |||||
Minimum | 49 | 55 | |||||
Six months ended June 30, | |||||||
Average | $ | 56 | $ | 58 | |||
Maximum | 66 | 68 | |||||
Minimum | 41 | 44 |
• | the ability of the GenOn Entities to obtain Bankruptcy Court approval with respect to motions in the Chapter 11 proceedings and the outcomes of Bankruptcy Court rulings of the proceedings and appeals of such rulings in general; |
• | the length of time the GenOn Entities will operate under the Chapter 11 proceedings and their ability to successfully emerge, including with respect to obtaining any necessary regulatory approvals; |
• | the ability of the GenOn Entities to complete a plan of reorganization and NRG’s role in such plan of reorganization; |
• | risks associated with third party motions, proceedings and litigation in the Chapter 11 proceedings, which may interfere with the GenOn Entities’ plan of reorganization; |
• | NRG’s and the GenOn Entities’ ability to manage contracts that are critical to NRG’s operations, and to obtain and maintain appropriate credit and other terms with customers, suppliers and service providers; |
• | NRG’s ability to attract, retain and motivate key employees; |
• | NRG’s ability to fund and execute its business plan; |
• | the disposition or resolution of all pre-petition claims against NRG and the GenOn Entities; and |
• | NRG’s ability to maintain existing customers and vendor relationships and expand sales to new customers. |
Number | Description | Method of Filing | ||
10.1 | Consent Agreement, dated as of May 22, 2017, by and among GenOn Energy, Inc., NRG Energy, Inc. and the holders of Notes signatory thereto. | Incorporated herein by reference to Exhibit 10.1 to GenOn Energy, Inc. and GenOn Americas Generation, LLC's Current Report on Form 8-K filed on May 23, 2017. | ||
10.2 | Restructuring Support and Lock-Up Agreement, dated as of June 12, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, the subsidiaries signatory thereto, NRG Energy, Inc. and the noteholders signatory thereto. | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on June 14, 2017. | ||
10.3 | Backstop Commitment Letter, dated as of June 12, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, the subsidiaries signatory thereto and the noteholders signatory thereto. | Incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on June 14, 2017. | ||
10.4 | Backstop Fee Letter, dated as of June 12, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, the subsidiaries signatory thereto and the noteholders signatory thereto. | Incorporated herein by reference to Exhibit 10.3 to the Registrant's Current Report on Form 8-K filed on June 14, 2017. | ||
31.1 | Rule 13a-14(a)/15d-14(a) certification of Mauricio Gutierrez. | Filed herewith. | ||
31.2 | Rule 13a-14(a)/15d-14(a) certification of Kirkland B. Andrews. | Filed herewith. | ||
31.3 | Rule 13a-14(a)/15d-14(a) certification of David Callen. | Filed herewith. | ||
32 | Section 1350 Certification. | Furnished herewith. | ||
101 INS | XBRL Instance Document. | Filed herewith. | ||
101 SCH | XBRL Taxonomy Extension Schema. | Filed herewith. | ||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||
101 DEF | XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||
101 LAB | XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. |
NRG ENERGY, INC. (Registrant) | ||||
/s/ MAURICIO GUTIERREZ | ||||
Mauricio Gutierrez | ||||
Chief Executive Officer (Principal Executive Officer) | ||||
/s/ KIRKLAND B. ANDREWS | ||||
Kirkland B. Andrews | ||||
Chief Financial Officer (Principal Financial Officer) | ||||
/s/ DAVID CALLEN | ||||
David Callen | ||||
Date: August 3, 2017 | Chief Accounting Officer (Principal Accounting Officer) | |||
1. | I have reviewed this quarterly report on Form 10-Q of NRG Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MAURICIO GUTIERREZ | |
Mauricio Gutierrez Chief Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of NRG Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ KIRKLAND B. ANDREWS | |
Kirkland B. Andrews Chief Financial Officer (Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of NRG Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DAVID CALLEN | |
David Callen Chief Accounting Officer (Principal Accounting Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
/s/ MAURICIO GUTIERREZ | ||||
Mauricio Gutierrez | ||||
Chief Executive Officer (Principal Executive Officer) | ||||
/s/ KIRKLAND B. ANDREWS | ||||
Kirkland B. Andrews | ||||
Chief Financial Officer (Principal Financial Officer) | ||||
/s/ DAVID CALLEN | ||||
David Callen | ||||
Chief Accounting Officer (Principal Accounting Officer) |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jul. 31, 2017 |
|
Document And Entity Information [Abstract] | ||
Entity Registrant Name | NRG ENERGY, INC. | |
Entity Central Index Key | 0001013871 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 316,460,692 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||||
Unrealized loss on derivatives, income tax expense | $ 0 | $ 1 | $ 1 | $ 2 |
Foreign currency translation adjustments, income tax expense | 0 | 0 | 0 | 0 |
Available-for-sale securities, income tax expense | 0 | 0 | 0 | 0 |
Defined benefit plans, income tax expense | $ 0 | $ 0 | $ 0 | $ 0 |
Condensed Consolidated Balance Sheets (Parenthetical) - shares |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Treasury stock, shares (in shares) | 101,858,284 | 102,140,814 |
Basis of Presentation |
6 Months Ended |
---|---|
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation NRG Energy, Inc., or NRG or the Company, is a leading integrated power company built on the strength of a diverse competitive electric generation portfolio and leading retail electricity platform. NRG is continuously focused on excellence in operating performance of its existing assets and optimal hedging of generation assets and retail load operations, as well as serving the energy needs of end-use residential, commercial and industrial customers in competitive markets through multiple brands and channels. The Company owns and operates approximately 31,000 MW of generation; engages in the trading of wholesale energy, capacity and related products; transacts in and trades fuel and transportation services; and directly sells energy, services, and innovative, sustainable products and services to retail customers under the names “NRG”, "Reliant" and other retail brand names owned by NRG. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements in the Company's 2016 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company's consolidated financial position as of June 30, 2017, and the results of operations, comprehensive income/(loss) and cash flows for the three and six months ended June 30, 2017 and 2016. GenOn Chapter 11 Cases On June 14, 2017, or the Petition Date, GenOn, along with GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries, or collectively the GenOn Entities, filed voluntary petitions for relief under Chapter 11, or the Chapter 11 Cases, of the U.S. Bankruptcy Code, or the Bankruptcy Code, in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, or the Bankruptcy Court. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA and certain other subsidiaries, did not file for relief under Chapter 11. As a result of the bankruptcy filings and beginning on June 14, 2017, GenOn and its subsidiaries were deconsolidated from NRG’s consolidated financial statements. NRG recorded its investment in GenOn under the cost method with an estimated fair value of zero. NRG has determined that this disposal of GenOn and its subsidiaries is a discontinued operation; and, accordingly, the financial information for all historical periods have been recast to reflect GenOn as a discontinued operation. In connection with the disposal, NRG has recorded a loss on deconsolidation of $208 million during the quarter ended June 30, 2017. See Note 3, Discontinued Operations and Dispositions, for more information. Prior to the GenOn Entities' filing the Chapter 11 Cases, NRG entered into a restructuring support and lock-up agreement, or the Restructuring Support Agreement, with the GenOn Entities and certain holders of the GenOn and GenOn Americas Generation Senior Notes, that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization. There is no assurance that the GenOn Entities' plan will be approved by the requisite stakeholders, confirmed by the Bankruptcy Court, or successfully implemented thereafter. The principal terms of the Restructuring Support Agreement are described further in Note 3, Discontinued Operations and Dispositions. Transformation Plan On July 12, 2017, NRG announced its Transformation Plan designed to significantly strengthen earnings and cost competitiveness, lower risk and volatility, and create significant shareholder value. The three-part, three-year plan is comprised of the following targets: Operations and cost excellence — Cost savings and margin enhancement of $1,065 million recurring, which consists of $590 million of annual cost savings, a $215 million net margin enhancement program, $50 million annual reduction in maintenance capital expenditures, and $210 million in permanent selling, general and administrative expense reduction associated with asset sales. Portfolio optimization — Targeting $2.5-$4.0 billion of asset sale net cash proceeds, including divestitures of 6 GWs of conventional generation and businesses (excluding GenOn) and the monetization of 50-100% of its interest in NRG Yield, Inc. and its renewables platform. Capital structure and allocation enhancements — A prioritized capital allocation strategy that targets a reduction in consolidated debt from approximately $19.5 billion ($18 billion net debt) to approximately $6.5 billion ($6 billion net debt). Following the completion of the contemplated asset sales, the Company expects $4.8-$6.3 billion in excess cash to be available for allocation through 2020, after achieving its targeted 3.0x net debt / Adjusted EBITDA corporate credit ratio. The Company expects to fully implement the Transformation Plan by the end of 2020 with significant completion by the end of 2018. The Company expects to realize (i) $370 million of non-recurring working capital improvements through 2020 and (ii) approximately $290 million, one-time costs to achieve. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassifications Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Summary of Significant Accounting Policies |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other Balance Sheet Information The following table presents the allowance for doubtful accounts included in accounts receivable, net; accumulated depreciation included in property, plant and equipment, net; accumulated amortization included in intangible assets, net and accumulated amortization included in out-of-market contracts, net:
Restricted Cash The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties. Some amounts are segregated into separate accounts that are not contractually restricted but, based on the Company's intention, are not available for the payment of general corporate obligations. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the hedge counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. As of December 31, 2016, $79 million of the cash collateral received was from GenOn, previously a consolidated subsidiary, and is included in cash collateral received in current liabilities as a result of deconsolidating GenOn, with the offset included in cash and cash equivalents. Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company's projects that are restricted in their use. Noncontrolling Interest The following table reflects the changes in NRG's noncontrolling interest balance:
Redeemable Noncontrolling Interest The following table reflects the changes in the Company's redeemable noncontrolling interest balance:
Recent Accounting Developments - Guidance Adopted in 2017 ASU 2016-18 — In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, or ASU No. 2016-18. The amendments of ASU No. 2016-18 require an entity to include amounts generally described as restricted cash and restricted cash equivalents, including funds deposited by counterparties with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of ASU No. 2016-18 are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted and the adoption of ASU No. 2016-18 will be applied retrospectively. The Company adopted the guidance in ASU No. 2016-18 during the second quarter of 2017. In connection with the adoption of the standard, the Company has applied the guidance retrospectively which resulted in a decrease in cash flow from operations of $54 million and a decrease of in cash flow from investing of $1 million on the statement of cash flow for the six months ended June 30, 2016. ASU 2016-16 — In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, or ASU No. 2016-16. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party which has resulted in diversity in practice and increased complexity within financial reporting. The amendments of ASU No. 2016-16 would require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted the guidance in ASU No. 2016-16 effective January 1, 2017. In connection with the adoption of the standard, the Company recorded a reduction to non-current assets of $267 million with a corresponding reduction to cumulative retained deficit. ASU 2016-15 — In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, or ASU No. 2016-15. The amendments of ASU No. 2016-15 were issued to address eight specific cash flow issues for which stakeholders have indicated to the FASB that a diversity in practice existed in how entities were presenting and classifying these items in the statement of cash flows. The issues addressed by ASU No. 2016-15 include but are not limited to the classification of debt prepayment and debt extinguishment costs, payments made for contingent consideration for a business combination, proceeds from the settlement of insurance proceeds, distributions received from equity method investees and separately identifiable cash flows and the application of the predominance principle. The Company adopted the guidance in ASU No. 2016-15 effective January 1, 2017. In connection with the adoption of the standard, the Company has applied the guidance retrospectively which resulted in an increase in cash flow from operations of $55 million and a decrease in cash flow from financing of $55 million on the statement of cash flow for the six months ended June 30, 2016. ASU 2016-09 — In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), or ASU No. 2016-09. The amendments focused on simplification specifically with regard to share-based payment transactions, including income tax consequences, classification of awards as equity or liabilities and classification on the statement of cash flows. The Company adopted the guidance in ASU No. 2016-09 effective January 1, 2017 with no material adjustments recorded to the consolidated balance sheet. Recent Accounting Developments - Guidance Not Yet Adopted ASU 2017-07 — In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, or ASU No. 2017-07. Current GAAP does not indicate where the amount of net benefit cost should be presented in an entity’s income statement and does not require entities to disclose the amount of net benefit cost that is included in the income statement. The amendments of ASU No. 2017-07 require an entity to report the service cost component of net benefit costs in the same line item as other compensation costs arising from services rendered by the related employees during the applicable service period. The other components of net benefit cost are required to be presented separately from the service cost component and outside the subtotal of income from operations. Further, ASU No. 2017-07 prescribes that only the service cost component of net benefit costs is eligible for capitalization. The amendments of ASU No. 2017-07 are effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted and must be applied on a retrospective basis, except for the amendments regarding the capitalization of the service cost component, which must be applied prospectively. The Company is currently assessing the impact that the adoption of ASU No. 2017-07 will have on its results of operations, cash flows, and statement of financial position. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or Topic 842, with the objective to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and to improve financial reporting by expanding the related disclosures. The guidance in Topic 842 provides that a lessee that may have previously accounted for a lease as an operating lease under current GAAP should recognize the assets and liabilities that arise from a lease on the balance sheet. In addition, Topic 842 expands the required quantitative and qualitative disclosures with regards to lease arrangements. The Company expects to adopt the standard effective January 1, 2019 utilizing the required modified retrospective approach for the earliest period presented. The Company expects to elect certain of the practical expedients permitted, including the expedient that permits the Company to retain its existing lease assessment and classification. The Company is currently working through an adoption plan which includes the evaluation of lease contracts compared to the new standard. While the Company is currently evaluating the impact the new guidance will have on its financial position and results of operations, the Company expects to recognize lease liabilities and right of use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending the Company’s review of its existing lease contracts and service contracts which may contain embedded leases. While this review is still in process, NRG believes the adoption of Topic 842 will have a material impact on its financial statements. ASU 2014-09 — In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Topic 606, which was further amended through various updates issued by the FASB thereafter. The amendments of Topic 606 completed the joint effort between the FASB and the IASB, to develop a common revenue standard for GAAP and IFRS, and to improve financial reporting. The guidance under Topic 606 provides that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services provided and establishes a five step model to be applied by an entity in evaluating its contracts with customers. The Company expects to adopt the standard effective January 1, 2018 and apply the guidance retrospectively to contracts at the date of adoption. The Company will recognize the cumulative effect of applying Topic 606 at the date of initial application, as prescribed under the modified retrospective transition method. The Company also expects to elect the practical expedient available under Topic 606 for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity. The Company continues to assess the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating the Company’s methods of estimating the amount and timing of variable consideration. While the impact remains subject to continued review, the Company does not believe the adoption of Topic 606 will have a material impact on its financial statements. |
Discontinued Operations and Dispositions |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Dispositions | Discontinued Operations and Dispositions Discontinued Operations As described in Note 1, Basis of Presentation, on the Petition Date, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of the bankruptcy filings, NRG has concluded that it no longer controls GenOn as it is subject to the control of the Bankruptcy Court; and, accordingly, NRG no longer consolidates GenOn for financial reporting purposes. By eliminating a large portion of its operations in the PJM market with the deconsolidation of GenOn, NRG has concluded that GenOn meets the criteria for discontinued operations, as this represents a strategic shift in the markets in which NRG operates. As such, all prior period results for GenOn have been reclassified as discontinued operations while NRG will record all ongoing results of GenOn as a cost method investment, which was valued at zero at the date of deconsolidation. Summarized results of discontinued operations were as follows:
The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of December 31, 2016. As noted above, NRG no longer consolidates GenOn for financial reporting purposes as of June 30, 2017.
Restructuring Support Agreement Prior to the GenOn Entities filing for relief under the Bankruptcy Code, as described in Note 1, Basis of Presentation, NRG, GenOn and certain holders representing greater than 93% in aggregate principal amount of GenOn’s Senior Notes and certain holders representing greater than 93% in aggregate principal amount of GenOn Americas Generation’s Senior Notes entered into a Restructuring Support Agreement, on June 12, 2017, that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization. Completion of the agreed upon terms is contingent upon certain milestones in the Restructuring Support Agreement. Certain principal terms of the Restructuring Support Agreement are detailed below:
In addition to the Restructuring Support Agreement, additional support and other agreements are being negotiated, including a transition services agreement. Settlement Consideration NRG has determined that the payment of the settlement consideration is probable and has recorded a liability for the amount due of $261.3 million in accrued expenses and other current liabilities - affiliate with a corresponding loss from discontinued operations. NRG expects to pay this amount net of amounts due from GenOn under the intercompany secured revolving credit facility, which is further described in Note 14, Related Party Transactions. Pension Liability NRG will retain the pension liability, including payment of approximately $13 million of 2017 pension contributions, for the GenOn employees for service provided prior to emergence from bankruptcy. NRG determined that the retention of this liability is probable and has recorded the estimated accumulated pension benefit obligation as of June 30, 2017 of $119 million in other non-current liabilities with a corresponding loss from discontinued operations. NRG's obligation for this liability will be revalued through and at GenOn's emergence from bankruptcy. Services Agreement NRG will continue to provide shared services to GenOn under the Services Agreement at an annualized rate of $84 million during the pendency of the Chapter 11 Cases as well as for two months post-emergence at no charge. NRG then will provide an option for up to two, one-month extensions for shared services at an annualized rate of $84 million. Beginning on June 14, 2017, NRG records operating income for the amounts earned for shared services of approximately $5 million per month. NRG has also agreed to provide GenOn with a credit of $28 million against amounts owed under the Services Agreement. Any unused amount can be paid in cash at GenOn’s request. As a result, NRG has concluded that the liability for this credit is probable and has recorded a payable to GenOn for $28 million in accrued expenses and other current liabilities - affiliate with a corresponding loss from discontinued operations. Commercial Operations For pre-disposal periods, NRG provided GenOn with services as described in Note 14, Related Party Transactions. Under intercompany agreements, NRG Power Marketing LLC has entered into physical and financial intercompany commodity and hedging transactions with GenOn and certain of its subsidiaries. Subject to applicable collateral thresholds, these arrangements may provide for the bilateral exchange of credit support based upon market exposure and potential market movements. The terms and conditions of the agreements are generally consistent with industry practices and other third party arrangements. For current and pre-disposal periods, revenue and expense associated with these transactions is recorded in continuing operations. GenOn Debt As of June 30, 2017, the GenOn Senior Notes and GenOn Americas Generation Senior Notes, which totaled approximately $2.5 billion, were deconsolidated from NRG's consolidated financial statements. The filing of the Chapter 11 Cases constitutes an event of default under the following debt instruments of GenOn:
Transfer of Assets Under Common Control On August 1, 2017, NRG closed on the sale of its remaining 25% interest in NRG Wind TE Holdco, a portfolio of 12 wind projects, to NRG Yield, Inc. for total cash consideration of $41.5 million, excluding working capital adjustments. The transaction also includes potential additional payments to NRG dependent upon actual energy prices for merchant periods beginning in 2027. On March 27, 2017, the Company sold to NRG Yield, Inc.: (i) a 16% interest in the Agua Caliente solar project, representing ownership of approximately 46 net MW of capacity and (ii) NRG's interests in seven utility-scale solar projects located in Utah representing 265 net MW of capacity, which have reached commercial operations. NRG Yield, Inc. paid cash consideration of $130 million, plus $1 million in working capital adjustments, and assumed non-recourse debt of approximately $328 million. Dispositions Disposition of Majority Interest in EVgo On June 17, 2016, the Company completed the sale of a majority interest in its EVgo business to Vision Ridge Partners for total consideration of approximately $39 million, including $17 million in cash received, which is net of $2.5 million in working capital adjustments, $15 million contributed as capital to the EVgo business and $7 million of future contributions by Vision Ridge Partners, all of which were determined based on forecasted cash requirements to operate the business in future periods. In addition, the Company has future earnout potential of up to $70 million based on future profitability targets. NRG will retain its original financial obligation of $102.5 million under its agreement with the CPUC whereby EVgo will build at least 200 public fast charging Freedom Station sites and perform the associated work to prepare 10,000 commercial and multi-family parking spaces for electric vehicle charging in California. As part of the sale, NRG has contracted with EVgo to continue to build the remaining required Freedom Stations and commercial and multi-family parking spaces for electric vehicle charging required under this obligation and will be directly reimbursed by NRG for the costs. As a result of the sale, the Company recorded a loss on sale of $83 million during the second quarter of 2016, which reflects the loss on the sale of the equity interest of $27 million and the accrual of NRG's remaining obligation under its agreement with the CPUC of $56 million. On February 22, 2017, the Company and CPUC entered into a second amendment to the agreement which extended the operating period commitment for the Freedom Stations to December 5, 2020. At June 30, 2017, the Company's remaining 35% interest in EVgo of $3 million was accounted for as an equity-method investment. Rockford Disposition On May 12, 2016, the Company entered into an agreement with RA Generation, LLC to sell 100% of its interests in the Rockford I and Rockford II generating stations, or Rockford, for cash consideration of $55 million, subject to adjustments for working capital and the results of the PJM 2019/2020 base residual auction. Rockford is a 450 MW natural gas facility located in Rockford, Illinois. The transaction triggered an indicator of impairment as the sales price was less than the carrying amount of the assets, and, as a result the assets were considered to be impaired. The Company measured the impairment loss as the difference between the carrying amount of the assets and the agreed-upon sales price. The Company recorded an impairment loss of $17 million during the quarter ended June 30, 2016 to reduce the carrying amount of the assets held for sale to the fair market value. At June 30, 2016, the Company had $2 million of current assets and $54 million of non-current assets classified as held for sale for Rockford on its balance sheet. On July 12, 2016, the Company completed the sale of Rockford for cash proceeds of $56 million, including $1 million in adjustments for the PJM base residual auction results. For further discussion on this impairment, refer to Note 7, Impairments, to this Form 10-Q. |
Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments This footnote should be read in conjunction with the complete description under Note 4, Fair Value of Financial Instruments, to the Company's 2016 Form 10-K. For cash and cash equivalents, funds deposited by counterparties, accounts and other receivables, accounts payable, restricted cash, and cash collateral paid and received in support of energy risk management activities, the carrying amount approximates fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows:
(a) Includes the current portion of notes receivable which is recorded in prepayments and other current assets on the Company's consolidated balance sheets. (b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets. The fair value of the Company's publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. The fair value of debt securities, non-publicly traded long-term debt and certain notes receivable of the Company are based on expected future cash flows discounted at market interest rates, or current interest rates for similar instruments with equivalent credit quality and are classified as Level 3 within the fair value hierarchy. The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2017 and December 31, 2016:
Recurring Fair Value Measurements Debt securities, equity securities, and trust fund investments, which are comprised of various U.S. debt and equity securities, and derivative assets and liabilities, are carried at fair market value. The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
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There were no transfers during the three and six months ended June 30, 2017 and 2016 between Levels 1 and 2. The following tables reconcile, for the three and six months ended June 30, 2017 and 2016, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, at least annually, using significant unobservable inputs:
Derivative Fair Value Measurements A portion of NRG's contracts are exchange-traded contracts with readily available quoted market prices. A majority of NRG's contracts are non-exchange-traded contracts valued using prices provided by external sources, primarily price quotations available through brokers or over-the-counter and on-line exchanges. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available for the whole term or for certain delivery months or the contracts are retail and load following power contracts. These contracts are valued using various valuation techniques including but not limited to internal models that apply fundamental analysis of the market and corroboration with similar markets. As of June 30, 2017, contracts valued with prices provided by models and other valuation techniques make up 13% of the total derivative assets and 12% of the total derivative liabilities. NRG's significant positions classified as Level 3 include physical and financial power and physical coal executed in illiquid markets as well as financial transmission rights, or FTRs. The significant unobservable inputs used in developing fair value include illiquid power and coal location pricing which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. For FTRs, NRG uses the most recent auction prices to derive the fair value. The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2017 and December 31, 2016:
The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2017 and December 31, 2016:
The fair value of each contract is discounted using a risk-free interest rate. In addition, the Company applies a credit reserve to reflect credit risk, which is calculated based on published default probabilities. As of June 30, 2017, there is no credit reserve. As of December 31, 2016, the credit reserve resulted in a $10 million decrease in fair value in operating revenue and cost of operations. Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies, to the Company's 2016 Form 10-K, the following is a discussion of the concentration of credit risk for the Company's contractual obligations. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. NRG is exposed to counterparty credit risk through various activities including wholesale sales, fuel purchases and retail supply arrangements, and retail customer credit risk through its retail load activities. Counterparty Credit Risk The Company's counterparty credit risk policies are disclosed in its 2016 Form 10-K. As of June 30, 2017, the Company's counterparty credit exposure, excluding credit risk exposure under certain long term agreements, was $145 million with net exposure of $17 million. NRG held collateral (cash and letters of credit) against those positions of $137 million. Approximately 75% of the Company's exposure before collateral is expected to roll off by the end of 2018. Counterparty credit exposure is valued through observable market quotes and discounted at a risk free interest rate. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.
NRG has counterparty credit risk exposure to certain counterparties, each of which represent more than 10% of total net exposure discussed above. The aggregate of such counterparties' exposure was $43 million as of June 30, 2017. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, NRG does not anticipate a material impact on the Company's financial position or results of operations from nonperformance by any of NRG's counterparties. RTOs and ISOs The Company participates in the organized markets of CAISO, ERCOT, ISO-NE, MISO, NYISO and PJM, known as RTOs or ISOs. Trading in these markets is approved by FERC, or in the case of ERCOT, approved by the PUCT and includes credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to NRG’s share of overall market and are excluded from the above exposures. Exchange Traded Transactions The Company enters into commodity transactions on registered exchanges, notably ICE and NYMEX. These clearinghouses act as the counterparty and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk. Long Term Contracts Counterparty credit exposure described above excludes credit risk exposure under certain long term agreements, including California tolling agreements, Gulf Coast load obligations, and wind and solar PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company estimates its credit exposure for these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. Based on these valuation techniques, as of June 30, 2017, aggregate credit risk exposure managed by NRG to these counterparties was approximately $4.3 billion, including $2.8 billion related to assets of NRG Yield, Inc., for the next five years. This amount excludes potential credit exposures for projects with long-term PPAs that have not reached commercial operations. The majority of these power contracts are with utilities or public power entities with strong credit quality and public utility commission or other regulatory support. However, such regulated utility counterparties can be impacted by changes in government regulations or treatment by regulatory agencies which NRG is unable to predict. Retail Customer Credit Risk NRG is exposed to retail credit risk through the Company's retail electricity providers, which serve commercial, industrial and governmental/institutional customers and the Mass market. Retail credit risk results when a customer fails to pay for products or services rendered. The losses may result from both nonpayment of customer accounts receivable and the loss of in-the-money forward value. NRG manages retail credit risk through the use of established credit policies that include monitoring of the portfolio, and the use of credit mitigation measures such as deposits or prepayment arrangements. As of June 30, 2017, the Company believes its retail customer credit exposure was diversified across many customers and various industries, as well as government entities. |
Nuclear Decommissioning Trust Fund |
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Nuclear Decommissioning Trust Fund Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Fund | Nuclear Decommissioning Trust Fund This footnote should be read in conjunction with the complete description under Note 6, Nuclear Decommissioning Trust Fund, to the Company's 2016 Form 10-K. NRG's Nuclear Decommissioning Trust Fund assets are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations, because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to nuclear decommissioning trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment. The following table summarizes the aggregate fair values and unrealized gains and losses (including other-than-temporary impairments) for the securities held in the trust funds, as well as information about the contractual maturities of those securities.
The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method.
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Accounting for Derivative Instruments and Hedging Activities |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities This footnote should be read in conjunction with the complete description under Note 5, Accounting for Derivative Instruments and Hedging Activities, to the Company's 2016 Form 10-K. Energy-Related Commodities As of June 30, 2017, NRG had energy-related derivative instruments extending through 2031. The Company marks these derivatives to market through the statement of operations. Interest Rate Swaps NRG is exposed to changes in interest rates through the Company's issuance of variable rate debt. In order to manage the Company's interest rate risk, NRG enters into interest rate swap agreements. As of June 30, 2017, the Company had interest rate derivative instruments on recourse debt extending through 2021, which are not designated as cash flow hedges. The Company had interest rate swaps on non-recourse debt extending through 2041, most of which are designated as cash flow hedges. Volumetric Underlying Derivative Transactions The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of June 30, 2017 and December 31, 2016. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
The increase in the natural gas position was primarily the result of additional generation and retail hedge positions. The increase in the power position was primarily the result of additional retail hedge positions. Fair Value of Derivative Instruments The following table summarizes the fair value within the derivative instrument valuation on the balance sheets:
The Company has elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Company's derivative assets or liabilities are recorded on a separate line item on the balance sheet. The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid:
Accumulated Other Comprehensive Loss The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow hedge derivatives, net of tax:
Amounts reclassified from accumulated OCI into income and amounts recognized in income from the ineffective portion of cash flow hedges are recorded to interest expense for interest rate contracts. There was no ineffectiveness for the three and six months ended June 30, 2017 and 2016. Accounting guidelines require a high degree of correlation between the derivative and the hedged item throughout the period in order to qualify as a cash flow hedge. As of December 31, 2016, the Company's regression analysis for Viento Funding II interest rate swaps, while positively correlated, did not meet the required threshold for cash flow hedge accounting. As a result, the Company de-designated the Viento Funding II cash flow hedges as of December 31, 2016, and will prospectively mark these derivatives to market through the income statement. The Company's regression analysis for Marsh Landing, Walnut Creek, and Avra Valley interest rate swaps, while positively correlated, no longer contain match terms for cash flow hedge accounting. As a result, the Company voluntarily de-designated the Marsh Landing, Walnut Creek, and Avra Valley cash flow hedges as of April 28, 2017, and will prospectively mark these derivatives to market through the income statement. Impact of Derivative Instruments on the Statements of Operations Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow hedges and ineffectiveness of hedge derivatives are reflected in current period consolidated results of operations. The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations. The effect of energy commodity contracts is included within operating revenues and cost of operations and the effect of interest rate contracts is included in interest expense.
The reversals of acquired gain or loss positions were valued based upon the forward prices on the acquisition date. The roll-off amounts were offset by realized gains or losses at the settled prices and are reflected in operating revenue or cost of operations during the same period. For the six months ended June 30, 2017, the $15 million unrealized gain from open economic hedge positions was primarily the result of an increase in value of forward sales of PJM electricity and New York capacity due to decreases in PJM electricity and New York capacity prices, which was offset by a decrease in value of forward purchases of natural gas and coal due to decreases in natural gas and coal prices. For the six months ended June 30, 2016, the $77 million unrealized gain from open economic hedge positions was primarily the result of an increase in value of forward purchases of ERCOT electricity and natural gas due to increases in ERCOT power and natural gas prices. Credit Risk Related Contingent Features Certain of the Company's hedging agreements contain provisions that require the Company to post additional collateral if the counterparty determines that there has been deterioration in credit quality, generally termed “adequate assurance” under the agreements, or requires the Company to post additional collateral if there were a one notch downgrade in the Company's credit rating. The collateral required for contracts with adequate assurance clauses that are in a net liability position as of June 30, 2017, was $36 million. The collateral required for contracts with credit rating contingent features as of June 30, 2017, was $39 million. The Company is also a party to certain marginable agreements where NRG has a net liability position, but the counterparty has not called for the collateral due, which was approximately $6 million as of June 30, 2017. See Note 4, Fair Value of Financial Instruments, to this Form 10-Q for discussion regarding concentration of credit risk. |
Impairments |
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Asset Impairment Charges [Abstract] | |
Impairments | Impairments 2017 Impairment Losses Bacliff Project — On June 16, 2017, NRG Texas Power LLC provided notice to BTEC New Albany, LLC that it was exercising its right to terminate the Amended and Restated Membership Interest Purchase Agreement, or MIPA, due to the Bacliff Project, a new peaking facility at the former P.H. Robinson Electric Generating Station, not achieving commercial completion by the contractual expiration date of May 31, 2017. As a result of the MIPA termination, the Company recorded an impairment loss of $41 million to reduce the carrying amount of the related construction in progress to $0 during the second quarter of 2017. On July 14, 2017, the Company gave notice to BTEC New Albany, LLC that it owes NRG Texas Power LLC approximately $48 million under the terminated MIPA, consisting of $38 million in purchaser incurred costs and $10 million in liquidated damages. Other Impairments — During the second quarter of 2017, the Company recorded impairment losses of approximately $22 million in connection with the Company's Renewables business. 2016 Impairment Losses Rockford — On May 12, 2016, the Company entered into an agreement with RA Generation, LLC to sell 100% of its interests in the Rockford generating stations for cash consideration of $55 million. The transaction triggered an indicator of impairment as the sale price was less than the carrying amount of the assets, and, as a result, the assets were considered to be impaired. The Company measured the impairment loss as the difference between the carrying amount of the assets and the agreed-upon sale price. The Company recorded an impairment loss of $17 million during the quarter ended June 30, 2016, to reduce the carrying amount of the assets held for sale to the fair market value. Other Impairments — During the second quarter of 2016, the Company recorded impairment losses for intangible assets of $8 million in connection with the Company's strategic change in its residential solar business as well as $10 million of deferred marketing expenses. In addition, the Company also recorded an impairment loss of $17 million to record certain previously purchased solar panels at fair market value. Petra Nova Parish Holdings — During the first quarter of 2016, management changed its plans with respect to its future capital commitments driven in part by the continued decline in oil prices. As a result, the Company reviewed its 50% interest in Petra Nova Parish Holdings for impairment utilizing the other-than-temporary impairment model. In determining fair value, the Company utilized an income approach and considered project specific assumptions for the future project cash flows. The carrying amount of the Company's equity method investment exceeded the fair value of the investment and the Company concluded that the decline is considered to be other than temporary. As a result, the Company measured the impairment loss as the difference between the carrying amount and the fair value of the investment and recorded an impairment loss of $140 million. |
Debt and Capital Leases |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Capital Leases | Debt and Capital Leases This footnote should be read in conjunction with the complete description under Note 12, Debt and Capital Leases, to the Company's 2016 Form 10-K. Long-term debt and capital leases consisted of the following:
(a) As of June 30, 2017, L+ equals 3 month LIBOR plus x%, with the exception of the Utah Portfolio term loans. Recourse Debt 2023 Term Loan Facility On January 24, 2017, NRG repriced the 2023 Term Loan Facility, reducing the interest rate margin by 50 basis points to LIBOR plus 2.25%. The LIBOR floor remains 0.75%. Revolving Credit Facility On June 12, 2017, NRG repaid $125 million on the Revolving Credit Facility. As of June 30, 2017, no cash borrowings were outstanding on the revolver. Senior Notes Issuance of 2026 Senior Notes On May 23, 2016, NRG issued $1.0 billion in aggregate principal amount at par of 7.25% senior notes due 2026, or the 2026 Senior Notes. The 2026 Senior Notes are senior unsecured obligations of NRG and are guaranteed by certain of its subsidiaries. Interest is paid semi-annually beginning on November 15, 2016, until the maturity date of May 15, 2026. Issuance of 2027 Senior Notes On August 2, 2016, NRG issued $1.25 billion in aggregate principal amount at par of 6.625% senior notes due 2027, or the 2027 Senior Notes. The 2027 Senior Notes are senior unsecured obligations of NRG and are guaranteed by certain of its subsidiaries. Interest is paid semi-annually beginning on January 15, 2017, until the maturity date of January 15, 2027. The proceeds from the issuance of the 2027 Senior Notes were utilized to retire the Company's 8.250% senior notes due 2020 and reduce the balance of the Company's 7.875% senior notes due 2021. Non-recourse Debt NRG Yield LLC and NRG Yield Operating LLC Revolving Credit Facility NRG Yield LLC and its direct wholly owned subsidiary, NRG Yield Operating LLC, entered into a senior secured revolving credit facility, which can be used for cash and for the issuance of letters of credit. At June 30, 2017, there was $68 million of letters of credit issued under the revolving credit facility and no borrowing outstanding on the revolver. Project Financings Agua Caliente Project Financing On February 17, 2017, Agua Caliente Borrower 1 LLC and Agua Caliente Borrower 2 LLC, or Agua Caliente Holdco, the indirect owners of 51% of the Agua Caliente solar facility, issued $130 million of senior secured notes under the Agua Caliente Holdco Financing Agreement, or 2038 Agua Caliente Holdco Notes, that bear interest at 5.43% and mature on December 31, 2038. As described in Note 3, Discontinued Operations and Dispositions, on March 27, 2017, NRG Yield, Inc. acquired Agua Caliente Borrower 2 LLC from NRG. The debt is joint and several with respect to Agua Caliente Borrower 1 LLC and Agua Caliente Borrower 2 LLC and is secured by the equity interests of each borrower in the Agua Caliente solar facility. Carlsbad Project Financing On May 26, 2017, Carlsbad Energy Holdings, LLC entered into a note payable agreement with financial institutions for the issuance of up to $407 million of senior secured notes that bear interest at a rate of 4.12%, and mature on October 31, 2038. As of June 30, 2017, $345 million of these notes were outstanding. Also on May 26, 2017, Carlsbad Energy Holdings, LLC entered into a credit agreement, or the Carlsbad Financing Agreement, with the issuing banks, for a $194 million construction loan, that will convert to a term loan upon completion of the project. The Carlsbad Financing Agreement also includes a letter of credit facility with an aggregate principle amount not to exceed $83 million, and a working capital loan facility with an aggregate principle amount not to exceed $4 million. |
Variable Interest Entities, or VIEs |
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Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities, or VIEs | Variable Interest Entities, or VIEs Entities that are not Consolidated NRG has interests in entities that are considered VIEs under ASC 810, Consolidation, but NRG is not considered the primary beneficiary. NRG accounts for its interests in these entities under the equity method of accounting. GenConn Energy LLC — Through its consolidated subsidiary, NRG Yield Operating LLC, the Company owns a 50% interest in GCE Holding LLC, the owner of GenConn, which owns and operates two 190 MW peaking generation facilities in Connecticut at NRG's Devon and Middletown sites. NRG's maximum exposure to loss is limited to its equity investment, which was $104 million as of June 30, 2017. Entities that are Consolidated The Company has a controlling financial interest in certain entities which have been identified as VIEs under ASC 810. These arrangements are primarily related to tax equity arrangements entered into with third-parties in order to finance the cost of solar energy systems under operating leases and wind facilities eligible for certain tax credits as further described in Note 2, Summary of Significant Accounting Policies to the Company's 2016 Form 10-K. For one of the tax equity arrangements, the Company has a deficit restoration obligation equal to $95 million as of June 30, 2017, which would be required to be funded if the arrangement were to be dissolved. The summarized financial information for the Company's consolidated VIEs consisted of the following:
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Changes in Capital Structure |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Capital Structure | Changes in Capital Structure As of June 30, 2017 and December 31, 2016, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding:
Preferred Stock On May 24, 2016, NRG entered an agreement with Credit Suisse Group to repurchase 100% of the outstanding shares of its $344.5 million 2.822% preferred stock. On June 13, 2016, the Company completed the repurchase from Credit Suisse of 100% of the outstanding shares at a price of $226 million. The transaction resulted in a gain on redemption of $78 million, measured as the difference between the fair value of the cash consideration paid upon redemption of $226 million and the carrying value of the preferred stock at the time of the redemption of $304 million. This amount is reflected in net income/(loss) available to NRG common stockholders in the calculation of earnings per share. Amended and Restated Employee Stock Purchase Plan On April 27, 2017, NRG stockholders approved an increase of 3,000,000 shares available for issuance under the ESPP. As of June 30, 2017, there were 3,385,289 shares of treasury stock available for issuance under the ESPP. In July 2017, 278,240 shares of NRG common stock were issued to employee accounts from treasury stock under the ESPP. Amended and Restated Long-term Incentive Plan On April 27, 2017, NRG stockholders approved an increase of 3,000,000 shares available for issuance under the NRG Energy, Inc. Amended and Restated Long-term Incentive Plan. NRG Common Stock Dividends The following table lists the dividends paid during the six months ended June 30, 2017:
On July 20, 2017, NRG declared a quarterly dividend on the Company's common stock of $0.03 per share, payable August 15, 2017, to stockholders of record as of August 1, 2017, representing $0.12 per share on an annualized basis. The Company's common stock dividends are subject to available capital, market conditions, and compliance with associated laws, regulations and other contractual obligations. |
Earnings/(Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings/(Loss) Per Share | Earnings/(Loss) Per Share Basic earnings/(loss) per common share is computed by dividing net income/(loss) less accumulated preferred stock dividends by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings/(loss) per share is computed in a manner consistent with that of basic income/(loss) per share while giving effect to all potentially dilutive common shares that were outstanding during the period. During the second quarter of 2016, the Company repurchased 100% of the outstanding shares of its 2.822% preferred stock. The reconciliation of NRG's basic and diluted loss per share is shown in the following table:
The following table summarizes NRG’s outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted loss per share:
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Segment Reporting |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | Segment Reporting The Company's segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: Generation, which includes generation, international and BETM; Retail, which includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products; Renewables, which includes solar and wind assets, excluding those in NRG Yield; NRG Yield; and corporate activities. The financial information for the three and six months ended June 30, 2016 has been recast to reflect the current segment structure. On September 1, 2016, NRG Yield acquired the remaining 51.05% interest in CVSR Holdco LLC, which indirectly owns the CVSR solar facility, from the Company. On March 27, 2017, NRG Yield acquired from NRG a 16% interest in the Agua Caliente solar project, and NRG's interests in seven utility-scale solar projects located in Utah. Both acquisitions were treated as a transfer of entities under common control and accordingly, all historical periods have been recast to reflect the acquisition as if they had occurred at the beginning of the financial statement period. On June 14, 2017, as described in Note 3, Discontinued Operations and Dispositions, NRG deconsolidated GenOn for financial reporting purposes. The financial information for all historical periods have been recast to reflect the deconsolidation of GenOn and to present discontinued operations within the corporate segment. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and capital for allocation, as well as net income/(loss).
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes Effective Tax Rate The income tax provision consisted of the following:
For the three months ended June 30, 2017, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to the tax benefit for the change in valuation allowance and the generation of PTCs and ITCs from various wind and solar facilities, respectively, partially offset by the inclusion of consolidated partnerships and current state tax expense. For the six months ended June 30, 2017, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to the tax expense for the change in valuation allowance, current state tax expense partially offset by the generation of PTCs and ITCs from various wind and solar facilities, respectively. For the three and six months ended June 30, 2016, NRG's overall effective tax rate was different than the statutory rate of 35% primarily due to tax expense resulting from the change in the valuation allowance, amortization of indefinite lived assets, inclusion of consolidated partnerships and the impact of state income taxes. Uncertain Tax Benefits As of June 30, 2017, NRG has recorded a non-current tax liability of $39 million for uncertain tax benefits from positions taken on various state income tax returns, including accrued interest. For the six months ended June 30, 2017, NRG accrued an immaterial amount of interest relating to the uncertain tax benefits. As of June 30, 2017, NRG had cumulative interest and penalties related to these uncertain tax benefits of $4 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense. NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia. The Company is not subject to U.S. federal income tax examinations for years prior to 2015. With few exceptions, state and local income tax examinations are no longer open for years before 2010. The Company's primary foreign operations are also no longer subject to examination by local jurisdictions for years prior to 2010. |
Related Party Transactions |
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Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Services Agreement with GenOn The Company provides GenOn with various management, personnel and other services, which include human resources, regulatory and public affairs, accounting, tax, legal, information systems, treasury, risk management, commercial operations, and asset management, as set forth in the services agreement with GenOn, or the Services Agreement. The initial term of the Services Agreement was through December 31, 2013, with an automatic renewal absent a request for termination. The fee charged was determined based on a fixed amount as described in the Services Agreement and was calculated based on historical GenOn expenses prior to the NRG Merger. The annual fees under the Services Agreement were approximately $193 million and management has concluded that this method of charging overhead costs is reasonable. As described in Note 3, Discontinued Operations and Dispositions, in connection with the Restructuring Support Agreement, NRG agreed to provide shared services to GenOn under the Services Agreement for an adjusted annualized fee of $84 million through the pendency of the Chapter 11 Cases. Beginning on June 14, 2017, NRG records operating income for the amounts earned for shared services of approximately $5 million per month. Subsequent to the GenOn Entities' emergence from bankruptcy, NRG will provide shared services for two months at no charge; after which GenOn has an additional two, one-month options to provide services at an annualized fee of $84 million. NRG charges these fees on a monthly basis, less amounts incurred directly by GenOn. For the three and six months ended June 30, 2017, NRG recorded other income - affiliate related to these services of $42 million and $90 million, respectively. For the three and six months ended June 30, 2016, NRG recorded other income - affiliate related to these services of $48 million and $96 million, respectively. In addition, as described in Note 3, Discontinued Operations and Dispositions, under the Restructuring Support Agreement, NRG has agreed to provide GenOn with a $28 million credit against amounts owed to NRG prior to the Petition Date under the current Services Agreement. The credit was intended to reimburse GenOn for its payment of financing costs. In addition, the Restructuring Support Agreement provides that to the extent GenOn has paid for services during the bankruptcy proceedings and the aforementioned credit has not been applied in full, NRG shall, upon request by GenOn, reimburse such payments in cash up to the amount of any unused portion of the credit. Credit Agreement with GenOn NRG and GenOn are party to a secured intercompany revolving credit agreement. The intercompany revolving credit agreement provided for a $500 million revolving credit facility, all of which was available for revolving loans and letters of credit. At June 30, 2017 and December 31, 2016, $140 million and $272 million, respectively, of letters of credit were issued and outstanding under the NRG credit agreement for GenOn. Additionally, as of June 30, 2017, there were $125 million of loans outstanding under the intercompany secured revolving credit facility. As of December 31, 2016, no loans were outstanding under this intercompany secured revolving credit facility. In addition, the intercompany secured revolving credit facility contains customary covenants and events of default. As of June 30, 2017, GenOn was in default under the secured intercompany revolving credit agreement due to the filing of the Chapter 11 Cases. As a result of the Chapter 11 Cases, no additional revolving loans or letters of credit are available to GenOn. In addition, NRG agreed to provide GenOn with a letter of credit facility during the pendency of the Chapter 11 Cases, which could be utilized for required letters of credit in lieu of the intercompany secured revolving credit facility. The letter of credit facility provided availability of up to $330 million less amounts borrowed and letters of credit provided are required to be cash collateralized at 103% of the letter of credit amount. On July 27, 2017, this letter of credit facility was terminated as GenOn has obtained a separate letter of credit facility with a third party financial institution. Effective with completion of the reorganization, GenOn must repay NRG for all revolving loans outstanding, with such amount to be netted against the settlement payment owed from NRG to GenOn. Accordingly, the affiliate receivable is recorded net within accrued expenses and other current liabilities - affiliate on the consolidated balance sheet as of June 30, 2017. Interest continues to accrue during the pendency of the Chapter 11 Cases and borrowings remain secured obligations. Commercial Operations Agreement NRG Power Marketing LLC has entered into physical and financial intercompany commodity and hedging transactions with GenOn and certain of its subsidiaries. Subject to applicable collateral thresholds, these arrangements may provide for the bilateral exchange of credit support based upon market exposure and potential market movements. The terms and conditions of the agreements are generally consistent with industry practices and other third party arrangements. As of June 30, 2017, derivative assets and liabilities associated with these transactions are recorded within NRG's derivative instruments balances on the consolidated balance sheet, with related revenues and costs within operating revenues and cost of operations, respectively. |
Commitments and Contingencies |
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Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies This footnote should be read in conjunction with the complete description under Note 22, Commitments and Contingencies, to the Company's 2016 Form 10-K. Commitments First Lien Structure — NRG has granted first liens to certain counterparties on a substantial portion of the Company's assets, excluding assets acquired in the EME (including Midwest Generation) acquisitions, assets held by NRG Yield, Inc. and NRG's assets that have project-level financing, to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedge agreements for forward sales of power or MWh equivalents. The Company's lien counterparties may have a claim on NRG's assets to the extent market prices exceed the hedged price. As of June 30, 2017, hedges under the first liens were out-of-the-money for NRG on a counterparty aggregate basis. Ivanpah Energy Production Guarantee — The Company's PPAs with PG&E with respect to the Ivanpah plant contain provisions for contract quantity and guaranteed energy production, which require that Ivanpah units 1 and 3 deliver to PG&E no less than the guaranteed energy production amount specified in the PPAs in any period of twenty-four consecutive months, or performance measurement period, during the term of the PPAs. In January 2017, the Company and PG&E executed amendments to the PPAs that provide, among other things, the ability to cure any failure to meet the guaranteed energy production amounts through performance and liquidated damage provisions. On February 2, 2017, PG&E filed a request with the CPUC to approve the amendments. The CPUC approved the amendments without modification on May 11, 2017 and the appeal period expired 30 days later with no appeals filed. Lignite Contract with Texas Westmoreland Coal Co. — The Company has a contract with TWCC for reclamation activities associated with closure of the Jewett mine. NRG is responsible for reclamation costs and has recorded an adequate ARO liability. The Railroad Commission of Texas has imposed a bond obligation of $95.5 million on TWCC for the reclamation of the mine. Pursuant to the contract with TWCC, NRG supports this obligation through surety bonds. Additionally, NRG is obligated to provide additional performance assurance if required by the Railroad Commission of Texas. Contingencies The Company's material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate reserve for the matters discussed below. In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Company is unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company's liabilities and contingencies could be at amounts that are different from its currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. Midwest Generation Asbestos Liabilities — The Company, through its subsidiary, Midwest Generation, may be subject to potential asbestos liabilities as a result of its acquisition of EME. The Company is currently analyzing the scope of potential liability as it may relate to Midwest Generation. The Company believes that it has established an adequate reserve for these cases. Energy Plus Holdings — On August 7, 2012, Energy Plus Holdings received a subpoena from the NYAG which generally sought information and business records related to Energy Plus Holdings' sales, marketing and business practices. Energy Plus Holdings provided documents and information to the NYAG. On June 22, 2015, the NYAG issued another subpoena seeking additional information. Energy Plus Holdings provided responsive documents to this second subpoena. The Company does not expect the resolution of this matter to have a material impact on the Company's consolidated financial position, results of operation, or cash flows. Midwest Generation New Source Review Litigation — In August 2009, the EPA and the Illinois Attorney General, or the Government Plaintiffs, filed a complaint, or the Governments’ Complaint, in the U.S. District Court for the Northern District of Illinois alleging violations of CAA PSD requirements by Midwest Generation arising from maintenance, repair or replacement projects at six Illinois coal-fired electric generating stations performed by Midwest Generation or ComEd, a prior owner of the stations, including alleged failures to obtain PSD construction permits and to comply with BACT requirements. The Government Plaintiffs also alleged violations of opacity and PM standards at the Midwest Generation plants. Finally, the Government Plaintiffs alleged that Midwest Generation violated certain operating permit requirements under Title V of the CAA allegedly arising from such claimed PSD, opacity and PM emission violations. In addition to seeking penalties of up to $37,500 per violation, per day, the complaint seeks an injunction ordering Midwest Generation to install controls sufficient to meet BACT emission rates at the units subject to the complaint and other remedies, which could go well beyond the requirements of the CPS. Several environmental groups intervened as plaintiffs in this litigation and filed a complaint, or the Intervenors’ Complaint, which alleged opacity, PM and related Title V violations. Midwest Generation filed a motion to dismiss nine of the ten PSD counts in the Governments’ Complaint, and to dismiss the tenth PSD count to the extent the Governments’ Complaint sought civil penalties for that count. The trial court granted the motion in March 2010. In June 2010, the Government Plaintiffs and Intervenors each filed an amended complaint. The Governments’ Amended Complaint again alleged that Midwest Generation violated PSD (based upon the same projects as alleged in their original complaint, but adding allegations that the Company was liable as the “successor” to ComEd), Title V and opacity and PM standards. It named EME and ComEd as additional defendants and alleged PSD violations (again, premised on the same projects) against them. The Intervenors’ Amended Complaint named only Midwest Generation as a defendant and alleged Title V and opacity/PM violations, as well as one of the ten PSD violations alleged in the Governments’ Amended Complaint. Midwest Generation again moved to dismiss all but one of the Government Plaintiffs’ PSD claims and the related Title V claims. Midwest Generation also filed a motion to dismiss the PSD claim in the Intervenors’ Amended Complaint and the related Title V claims. In March 2011, the trial court granted Midwest Generation’s partial motion to dismiss the Government Plaintiffs’ PSD claims. The trial court denied Midwest Generation’s motion to dismiss the PSD claim asserted in the Intervenors’ Amended Complaint, but noted that the plaintiffs would be required to convince the court that the statute of limitations should be equitably tolled. The trial court did not address other counts in the amended complaints that allege violations of opacity and PM emission limitations under the Illinois State Implementation Plan and related Title V claims. The trial court also granted the motions to dismiss the PSD claims asserted against EME and ComEd. Following the trial court ruling, the Government Plaintiffs appealed the trial court’s dismissals of their PSD claims, including the dismissal of nine of the ten PSD claims against Midwest Generation and of the PSD claims against the other defendants. Those PSD claim dismissals were affirmed by the U.S. Court of Appeals for the Seventh Circuit in July 2013. In addition, in 2012, all but one of the environmental groups that had intervened in the case dismissed their claims without prejudice. As a result, only one environmental group remains a plaintiff intervenor in the case. The Company does not expect the resolution of this matter to have a material impact on the Company’s consolidated financial position, results of operations or cash flows. Telephone Consumer Protection Act Purported Class Actions — Three purported class action lawsuits have been filed against NRG Residential Solar Solutions, LLC — one in California and two in New Jersey. The plaintiffs generally allege misrepresentation by the call agents and violations of the TCPA, claiming that the defendants engaged in a telemarketing campaign placing unsolicited calls to individuals on the “Do Not Call List.” The plaintiffs seek statutory damages of up to $1,500 per plaintiff, actual damages and equitable relief. On July 8, 2016, NRG filed a Rule 11 Motion seeking dismissal of NRG from the California case. The Rule 11 Motion was denied on August 16, 2016. On June 22, 2017, plaintiffs in the California case filed a motion for leave to file a second amended complaint to substitute new plaintiffs. Defendants’ filed an opposition to this motion on June 26, 2017. The court granted plaintiffs' motion to substitute new plaintiffs and on August 1, 2017, Defendants filed an answer to the second amended complaint. On July 12, 2017, the parties in the New Jersey action reached an agreement in principle to resolve the class allegations which was confirmed by a term sheet signed by the parties on July 28, 2017. The parties to the New Jersey action are seeking to have the New Jersey and California litigation stayed while a final settlement can be executed and approved by the court. California Department of Water Resources and San Diego Gas & Electric Company v. Sunrise Power Company LLC — On January 29, 2016, CDWR and SDG&E filed a lawsuit against Sunrise Power Company, along with NRG and Chevron Power Corporation. In June 2001, CDWR and Sunrise entered into a 10-year PPA under which Sunrise would construct and operate a generating facility and provide power to CDWR. At the time the PPA was entered into, Sunrise had a transportation services agreement, or TSA, to purchase natural gas from Kern River through April 30, 2018. In August 2003, CDWR entered into an agreement with Sunrise and Kern River in which CDWR accepted assignment of the TSA through the term of the PPA. After the PPA expired, Kern River demanded that any reassignment be to a party which met certain creditworthiness standards which Sunrise did not. As such, the plaintiffs have brought this lawsuit against the defendants alleging breach of contract, breach of covenant of good faith and fair dealing and improper distributions. Plaintiffs generally claim damages of $1.2 million per month for the remaining 70 months of the TSA. On April 20, 2016, the defendants filed demurrers in response to the plaintiffs' complaint. The demurrers were granted on June 14, 2016; however, the plaintiffs were allowed to file amended complaints on July 1, 2016. On July 27, 2016, defendants filed demurrers to the amended complaints. On November 18, 2016, the court sustained the demurrers and allowed plaintiffs another opportunity to file a second amended lawsuit which they did on January 13, 2017. On April 21, 2017, the court issued an order sustaining the demurrers without leave to amend. On July 14, 2017, CDWR filed a notice of appeal. Braun v. NRG Yield, Inc. — On April 19, 2016, plaintiffs filed a putative class action lawsuit against NRG Yield, Inc., the current and former members of its board of directors individually, and other parties in California Superior Court in Kern County, CA. Plaintiffs allege various violations of the Securities Act due to the defendants’ alleged failure to disclose material facts related to low wind production prior to the NRG Yield, Inc.'s June 22, 2015 Class C common stock offering. Plaintiffs seek compensatory damages, rescission, attorney’s fees and costs. The Defendants filed demurrers and a motion challenging jurisdiction on October 18, 2016. On June 16, 2017, the court approved the parties' stipulation which provides the plaintiffs' opposition is due on September 15, 2017 and defendants' reply is due on November 15, 2017. Ahmed v. NRG Energy, Inc. and the NRG Yield Board of Directors — On September 15, 2016, plaintiffs filed a putative class action lawsuit against NRG Energy, Inc., the directors of NRG Yield, Inc., and other parties in the Delaware Chancery Court. The complaint alleges that the defendants breached their respective fiduciary duties with regard to the recapitalization of NRG Yield, Inc. common stock in 2015. The plaintiffs generally seek economic damages, attorney’s fees and injunctive relief. The defendants filed a motion to dismiss the lawsuit on December 21, 2016. Plaintiffs filed their objection to the motion to dismiss on February 15, 2017. The Defendants' reply was filed on March 24, 2017. The court heard oral argument on defendants' motion to dismiss on June 20, 2017. Griffoul v. NRG Residential Solar Solutions — On February 28, 2017, plaintiffs, consisting of New Jersey residential solar customers, filed a purported class action lawsuit in New Jersey state court. Plaintiffs allege violations of the New Jersey Consumer Fraud Action and Truth-in-Consumer Contracts, Warranty and Notice Act with regard to certain provisions of their residential solar contracts. The plaintiffs seek damages and injunctive relief as to the proper allocation of the solar renewable energy credits. On June 6, 2017, the defendants filed a motion to compel arbitration or dismiss the lawsuit. Plaintiffs filed their opposition on June 29, 2017. On July 14, 2017, the court denied NRG's motion to compel arbitration or dismiss the case. On July 25, 2017, NRG filed a motion for reconsideration of the appeal. Rice v. NRG — On April 14, 2017, plaintiffs filed a purported class action lawsuit in the U.S. District Court for the Western District of Pennsylvania against NRG, First Energy Corporation and Matt Canastrale Contracting, Inc. Plaintiffs generally claim personal injury, trespass, nuisance and property damage related to the disposal of coal ash from GenOn's Elrama Power Plant and First Energy’s Mitchell and Hatfield Power Plants. Plaintiffs generally seek monetary damages, medical monitoring and remediation of their property. NRG believes that it was incorrectly named as a party to the lawsuit. Washington-St. Tammany and Claiborne Electric Cooperative v. LaGen — On June 28, 2017, plaintiffs Washington-St. Tammany Electric Cooperative, Inc. and Claiborne Electric Cooperative, Inc. filed a lawsuit against Louisiana Generating, L.L.C., or LaGen, in the United States District Court for the Middle District of Louisiana. The plaintiffs claim breach of contract against LaGen for allegedly improperly charging the plaintiffs for costs related to the installation and maintenance of certain pollution control technology. Plaintiffs seek damages for the alleged improper charges and a declaration as to which charges are proper under the contract. GenOn Chapter 11 Cases — On the Petition Date, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. Under the Restructuring Support Agreement to which the GenOn Entities, NRG and certain of GenOn's and GenOn Americas Generation's senior unsecured noteholders are parties, each of them has agreed to support Bankruptcy Court approval of the plan of reorganization. GenOn has a customary "fiduciary out" under the Restructuring Support Agreement. Moreover, the Bankruptcy Court may not approve the plan of reorganization. If the plan of reorganization is not approved, NRG may not be entitled to the benefits of the Settlement Agreement provided under the Restructuring Support Agreement and it will remain subject to any claims of GenOn and the noteholders, including claims relating to or arising out of any shared services and any other relationships or transactions between the companies. See Note 3, Discontinued Operations and Dispositions, for additional information related to the Chapter 11 Cases. GenOn Noteholders' Lawsuit — On December 13, 2016, certain indenture trustees for an ad hoc group of holders, or the Noteholders, of the GenOn Energy, Inc. 7.875% Senior Notes due 2017, 9.500% Notes due 2018, and 9.875% Notes due 2020, and the GenOn Americas Generation, LLC 8.50% Senior Notes due 2021 and 9.125% Senior Notes due 2031, along with certain of the Noteholders, filed a complaint in the Superior Court of the State of Delaware against NRG and GenOn alleging certain claims related to the Services Agreement between NRG and GenOn. Plaintiffs generally seek return of all monies paid under the Services Agreement and any other damages that the court deems appropriate. On February 3, 2017, the court entered an order approving a Standstill Agreement whereby the parties agreed to suspend all deadlines in the case until March 1, 2017. The Standstill Agreement terminated on March 1, 2017. On April 30, 2017, the Noteholders filed an amended complaint that asserts (i) additional fraudulent transfer claims in relation to GenOn’s sale of the Marsh Landing project to NRG Yield LLC, (ii) alleged breaches of fiduciary duty by certain current and former officers and directors of GenOn in relation to the Services Agreement and the alleged usurpation of corporate opportunities concerning the Mandalay and Canal projects and (iii) claims against NRG for allegedly aiding and abetting such claimed breaches of fiduciary duties. In addition to NRG and GenOn, the amended complaint names NRG Yield LLC and certain current and former officers and directors of GenOn as defendants. The plaintiffs, among other things, generally seek return of all monies paid under the services agreement and any other damages that the court deems appropriate. Pursuant to the terms of the Restructuring Support Agreement, this matter should ultimately be resolved if the GenOn Entities' plan of reorganization is approved by the Bankruptcy Court. Morgantown v. GenOn Mid-Atlantic — On June 8, 2017, Morgantown and Dickerson Owner Lessors filed a lawsuit against GenOn Mid-Atlantic, LLC, NRG North America LLC, GenOn Americas Generation, LLC, NRG Americas, Inc., GenOn Energy Holdings, Inc., GenOn Energy, Inc., and NRG Energy, Inc. in New York State Supreme Court. The plaintiffs, among other things, allege that GenOn Mid-Atlantic was overcharged in connection with the Services Agreement and that GenOn Mid-Atlantic failed to comply with a covenant requiring the maintenance of qualifying credit support. The plaintiffs seek, among other things, the return of certain transferred funds and service charges paid and to bar defendants from executing additional transfers on plaintiffs’ behalf. The litigation has been stayed and a status hearing has been scheduled for September 27, 2017. A claims estimation hearing of this matter is scheduled for September 5, 2017 before the Bankruptcy Court. BTEC v. NRG Texas Power — On July 18, 2017, BTEC New Albany LLC, or BTEC, filed a lawsuit against NRG Texas Power LLC, or NRG Texas Power, in the Harris County District Court in Texas. On January 15, 2013, the parties entered into a Membership Interest and Purchase Agreement, or MIPA, whereby BTEC agreed to dismantle, transport and rebuild an electric power generation facility at the former P.H. Robinson Electric Generating Station in Bacliff, Texas. On June 16, 2017, NRG Texas Power provided notice to BTEC that it was exercising its right to terminate the MIPA due to the project not achieving commercial completion by the contractual expiration date of May 31, 2017. BTEC claims that NRG Texas Power breached the MIPA by improperly terminating it, and seeks a declaratory judgment as to the rights and obligations of the parties. In addition, BTEC seeks damages, interest and attorney’s fees. GenOn Related Contingencies Actions Pursued by MC Asset Recovery — With Mirant Corporation's emergence from bankruptcy protection in 2006, certain actions filed by GenOn Energy Holdings and some of its subsidiaries against third parties were transferred to MC Asset Recovery, a wholly owned subsidiary of GenOn Energy Holdings. MC Asset Recovery is governed by a manager who is independent of NRG and GenOn. MC Asset Recovery is a disregarded entity for income tax purposes. Under the remaining action transferred to MC Asset Recovery, MC Asset Recovery seeks to recover damages from Commerzbank AG and various other banks, or the Commerzbank Defendants, for alleged fraudulent transfers that occurred prior to Mirant's bankruptcy proceedings. In December 2010, the U.S. District Court for the Northern District of Texas dismissed MC Asset Recovery's complaint against the Commerzbank Defendants. In January 2011, MC Asset Recovery appealed the District Court's dismissal of its complaint against the Commerzbank Defendants to the U.S. Court of Appeals for the Fifth Circuit, or the Fifth Circuit. In March 2012, the Fifth Circuit reversed the District Court's dismissal and reinstated MC Asset Recovery's amended complaint against the Commerzbank Defendants. On December 10, 2015, the District Court granted summary judgment in favor of the Commerzbank Defendants. On December 29, 2015, MC Asset Recovery filed a notice to appeal this judgment with the Fifth Circuit. On June 1, 2017, the Fifth Circuit affirmed the District Court's judgment. On June 12, 2017, MC Asset Recovery petitioned the Fifth Circuit for rehearing. The petition for rehearing was denied and a court order and judgment affirming the District Court's judgments was entered on July 17, 2017. Natural Gas Litigation — GenOn is party to several lawsuits, certain of which are class action lawsuits, in state and federal courts in Kansas, Missouri, Nevada and Wisconsin. These lawsuits were filed in the aftermath of the California energy crisis in 2000 and 2001 and the resulting FERC investigations and relate to alleged conduct to increase natural gas prices in violation of state antitrust law and similar laws. The lawsuits seek treble or punitive damages, restitution and/or expenses. The lawsuits also name as parties a number of energy companies unaffiliated with NRG. In July 2011, the U.S. District Court for the District of Nevada, which was handling four of the five cases, granted the defendants' motion for summary judgment and dismissed all claims against GenOn in those cases. The plaintiffs appealed to the U.S. Court of Appeals for the Ninth Circuit, or the Ninth Circuit, which reversed the decision of the District Court. GenOn along with the other defendants in the lawsuit filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the Ninth Circuit's decision and the U.S. Supreme Court granted the petition. On April 21, 2015, the U.S. Supreme Court affirmed the Ninth Circuit’s holding that plaintiffs’ state antitrust law claims are not field-preempted by the federal Natural Gas Act and the Supremacy Clause of the U.S. Constitution. The U.S. Supreme Court left open whether the claims were preempted on the basis of conflict preemption. The U.S. Supreme Court directed that the case be remanded to the U.S. District Court for the District of Nevada for further proceedings. On March 7, 2016, class plaintiffs filed their motions for class certification. Defendants filed their briefs in opposition to class plaintiffs' motions for class certification on June 24, 2016. On March 30, 2017, the court denied the plaintiffs' motions for class certification. On April 13, 2017, the plaintiffs petitioned the Ninth Circuit for interlocutory review of the court’s order denying class certification. On June 13, 2017, the Ninth Circuit granted plaintiffs' petition for interlocutory review. In May 2016 in one of the Kansas cases, the U.S. District Court for the District of Nevada granted the defendants' motion for summary judgment. Subsequently in December 2016, the plaintiffs filed a notice of appeal with the Ninth Circuit. The appeal has been fully briefed by the parties. GenOn has agreed to indemnify CenterPoint against certain losses relating to these lawsuits. In September 2012, the State of Nevada Supreme Court, which was handling the remaining case, affirmed dismissal by the Eighth Judicial District Court for Clark County, Nevada of all plaintiffs' claims against GenOn. In February 2013, the plaintiffs in the Nevada case filed a petition for a writ of certiorari to the U.S. Supreme Court. In June 2013, the U.S. Supreme Court denied the petition for a writ of certiorari, thereby ending one of the five lawsuits. Potomac River Environmental Investigation — In March 2013, NRG Potomac River LLC, a subsidiary of GenOn, received notice that the District of Columbia Department of Environment (now renamed the Department of Energy and Environment, or DOEE) was investigating potential discharges to the Potomac River originating from the Potomac River Generating facility site, a site where the generation facility is no longer in operation. In connection with that investigation, DOEE served a civil subpoena on NRG Potomac River LLC requesting information related to the site and potential discharges occurring from the site. NRG Potomac River LLC provided various responsive materials. In January 2016, DOEE advised NRG Potomac River LLC that DOEE believed various environmental violations had occurred as a result of discharges DOEE believes occurred to the Potomac River from the Potomac River Generating facility site and as a result of associated failures to accurately or sufficiently report such discharges. DOEE has indicated it believes that penalties are appropriate in light of the violations. NRG Potomac River LLC is currently reviewing the information provided by DOEE. |
Regulatory Matters |
6 Months Ended |
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Jun. 30, 2017 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters This footnote should be read in conjunction with the complete description under Note 23, Regulatory Matters, to the Company's 2016 Form 10-K. NRG operates in a highly regulated industry and is subject to regulation by various federal and state agencies. As such, NRG is affected by regulatory developments at both the federal and state levels and in the regions in which NRG operates. In addition, NRG is subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRG's wholesale and retail businesses. In addition to the regulatory proceedings noted below, NRG and its subsidiaries are parties to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. National Zero-Emission Credits for Nuclear Plants in Illinois — In 2016, Illinois enacted a Zero Emission Credit, or ZEC, program for selected nuclear units in Illinois. In total, the program directs over $2.5 billion over ten years to nuclear plants in Illinois that would otherwise retire. Pursuant to the legislation, the Illinois Power Agency, or IPA, conducts a competitive solicitation to procure ZECs, although both the Governor of Illinois and Exelon have already announced that the ZECs will be awarded to two Exelon-owned nuclear power plants in Illinois. These ZECs are out-of-market subsidies that threaten to artificially suppress market prices and interfere with the wholesale power market. On February 14, 2017, NRG, along with other companies, filed a complaint in the U.S. District Court for the Northern District of Illinois alleging that the state program is preempted by federal law and in violation of the dormant commerce clause. Another plaintiff group filed a similar complaint on the same day. Subsequently, on March 31, 2017, NRG, along with other companies, filed a motion for preliminary injunction. On April 10, 2017, Exelon, as an intervenor defendant, and State defendants filed motions to dismiss. On July 14, 2017, Defendants' motions to dismiss were granted. On July 17, 2017, NRG, along with other companies, filed a notice of appeal to the U.S. Court of Appeals for the Seventh Circuit. On July 18, 2017, the Court of Appeals issued an order setting an expedited briefing schedule for the matter. Zero-Emission Credits for Nuclear Plants in New York — On August 1, 2016, the NYSPSC issued its Clean Energy Standard, or CES, which provided for ZECs which would provide more than $7.6 billion over 12 years in out-of-market subsidy payments to certain selected nuclear generating units in the state. These ZECs are out-of-market subsidies that threaten to artificially suppress market prices and interfere with the wholesale power market. On October 19, 2016, NRG, along with other companies, filed a complaint in the U.S. District Court for the Southern District of New York, challenging the validity of the NYSPSC action and the ZEC program. On March 29, 2017, the U.S. District Court heard oral arguments on a motion to dismiss filed by defendants. On July 25, 2017, the defendants' motions to dismiss were granted. Current Administration and Changeover at FERC — FERC is currently without a quorum and cannot issue orders in contested proceedings until at least two new Commissioners are appointed. FERC continues to issue orders through authority that was delegated by the full Commission to FERC Staff. The legal validity of these actions has been questioned in connection with several of those orders. There are four vacant positions at FERC. The current administration has nominated three individuals for Commissioner positions and has announced its intent to nominate a fourth Commissioner. NRG’s business may be affected because its generation fleet is subject to changes in FERC regulatory policy. |
Environmental Matters |
6 Months Ended |
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Jun. 30, 2017 | |
Environmental Matters Disclosure [Abstract] | |
Environmental Matters | Environmental Matters This footnote should be read in conjunction with the complete description under Note 24, Environmental Matters, to the Company's 2016 Form 10-K. NRG is subject to a wide range of environmental laws in the development, construction, ownership and operation of projects. These laws generally require that governmental permits and approvals be obtained before construction and during operation of power plants. NRG is also subject to laws regarding the protection of wildlife, including migratory birds, eagles and threatened and endangered species. The electric generation industry has been facing requirements regarding GHGs, combustion byproducts, water discharge and use, and threatened and endangered species that have been put in place in recent years. However, under the current U.S. presidential administration, some of these rules are being reconsidered and reviewed. In general, future laws are expected to require the addition of emissions controls or other environmental controls or to impose certain restrictions on the operations of the Company's facilities, which could have a material effect on the Company's consolidated financial position, results of operations, or cash flows. Federal and state environmental laws generally have become more stringent over time, although this trend could slow or pause in the near term with respect to federal laws under the current U.S. presidential administration. The EPA finalized CSAPR in 2011, which was intended to replace CAIR in January 2012, to address certain states' obligations to reduce emissions so that downwind states can achieve federal air quality standards. In December 2011, the D.C. Circuit stayed the implementation of CSAPR and then vacated CSAPR in August 2012 but kept CAIR in place until the EPA could replace it. In April 2014, the U.S. Supreme Court reversed and remanded the D.C. Circuit's decision. In October 2014, the D.C. Circuit lifted the stay of CSAPR. In response, the EPA in November 2014 amended the CSAPR compliance dates. Accordingly, CSAPR replaced CAIR on January 1, 2015. On July 28, 2015, the D.C. Circuit held that the EPA had exceeded its authority by requiring certain reductions that were not necessary for downwind states to achieve federal standards. Although the D.C. Circuit kept the rule in place, the court ordered the EPA to revise the Phase 2 (or 2017) (i) SO2 budgets for four states including Texas and (ii) ozone-season NOx budgets for 11 states including Maryland, New Jersey, New York, Ohio, Pennsylvania and Texas. On October 26, 2016, the EPA finalized the CSAPR Update Rule, which reduces future NOx allocations and discounts the current banked allowances to account for the more stringent 2008 Ozone NAAQS and to address the D.C. Circuit's July 2015 decision. This rule has been challenged in the D.C. Circuit. The Company believes its investment in pollution controls and cleaner technologies leave the fleet well-positioned for compliance. In February 2012, the EPA promulgated standards (the MATS rule) to control emissions of HAPs from coal and oil-fired electric generating units. The rule established limits for mercury, non-mercury metals, certain organics and acid gases, which had to be met beginning in April 2015 (with some units getting a 1-year extension). In June 2015, the U.S. Supreme Court issued a decision in the case of Michigan v. EPA, and held that the EPA unreasonably refused to consider costs when it determined that it was "appropriate and necessary" to regulate HAPs emitted by electric generating units. The U.S. Supreme Court did not vacate the MATS rule but rather remanded it to the D.C. Circuit for further proceedings. In December 2015, the D.C. Circuit remanded the MATS rule to the EPA without vacatur. On April 25, 2016, the EPA released a supplemental finding that the benefits of this regulation outweigh the costs to address the U.S. Supreme Court's ruling that the EPA had not properly considered costs. This finding has been challenged in the D.C. Circuit. On April 18, 2017, the EPA asked the D.C. Circuit to postpone oral argument that had been scheduled for May 18, 2017 because the EPA is closely reviewing the supplemental finding to determine whether it should reconsider all or part of the rule. On April 27, 2017, the D.C. Circuit granted EPA's request to postpone the oral argument and hold the case in abeyance. While NRG cannot predict the final outcome of this rulemaking, NRG believes that because it has already invested in pollution controls and cleaner technologies, the fleet is well-positioned to comply with the MATS rule. Water In August 2014, the EPA finalized the regulation regarding the use of water for once through cooling at existing facilities to address impingement and entrainment concerns. NRG anticipates that more stringent requirements will be incorporated into some of its water discharge permits over the next several years as NPDES permits are renewed. Effluent Limitations Guidelines — In November 2015, the EPA revised the Effluent Limitations Guidelines for Steam Electric Generating Facilities, which would have imposed more stringent requirements (as individual permits were renewed) for wastewater streams from flue gas desulfurization, fly ash, bottom ash, and flue gas mercury control. In April 2017, the EPA granted two petitions to reconsider the rule and also administratively stayed some of the deadlines. This regulation also has been challenged. The legal challenges have been suspended while the EPA reconsiders and likely modifies the rule. Accordingly, the Company has largely eliminated its estimate of the environmental capital expenditures that would have been required to comply with permits incorporating the revised guidelines. The Company will revisit these estimates after the rule is revised. Byproducts, Wastes, Hazardous Materials and Contamination In April 2015, the EPA finalized the rule regulating byproducts of coal combustion (e.g., ash and gypsum) as solid wastes under the RCRA. A petition for reconsideration has been filed by the Utility Solid Waste Activities Group. The Company has evaluated the impact of the new rule on the Company's consolidated financial position, results of operations, or cash flows and has accrued its environmental and asset retirement obligations under the rule based on current estimates as of June 30, 2017. East Region Burton Island Old Ash Landfill — In January 2006, NRG's Indian River Power LLC was notified that it may be a potentially responsible party with respect to Burton Island Old Ash Landfill, a historic captive landfill located at the Indian River facility. On October 1, 2007, NRG signed an agreement with DNREC to investigate the site through the Voluntary Clean-up Program, or the VCP. On February 4, 2008, DNREC issued findings that no further action was required in relation to surface water and that a previously planned shoreline stabilization project would satisfactorily address shoreline erosion. The landfill itself required a Remedial Investigation and Feasibility Study to determine the type and scope of any additional required work. DNREC approved the Feasibility Study in December 2012. In January 2013, DNREC proposed a remediation plan based on the Feasibility Study. The remediation plan was approved in October 2013. In December 2015, DNREC approved the Company's remediation design and the Company's Long Term Stewardship Plan. In the second quarter of 2017, the Company completed the remediation requirements in the remediation plan. The cost of completing the work required by the remediation plan was within amounts budgeted in early 2016. The estimated cost to comply with the Long-Term Stewardship Plan was added to the liability in December 2016. In addition to the VCP, on May 29, 2008, DNREC requested that NRG's Indian River Power LLC participate in the development and performance of a Natural Resource Damage Assessment at the Burton Island Old Ash Landfill. NRG is working with DNREC and other trustees to close out the assessment process. |
Condensed Consolidating Financial Information |
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Condensed Consolidating Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information As of June 30, 2017, the Company had outstanding $5.4 billion of Senior Notes due from 2018 to 2027, as shown in Note 8, Debt and Capital Leases. These Senior Notes are guaranteed by certain of NRG's current and future 100% owned domestic subsidiaries, or guarantor subsidiaries. These guarantees are both joint and several. The non-guarantor subsidiaries include all of NRG's foreign subsidiaries and certain domestic subsidiaries, and NRG Yield, Inc. and its subsidiaries. Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of June 30, 2017:
NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company's ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG's ability to receive funds from its subsidiaries. There are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. However, there may be restrictions for certain non-guarantor subsidiaries. The following condensed consolidating financial information presents the financial information of NRG Energy, Inc., the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 under the SEC Regulation S-X. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities. In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis. NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the six months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the six months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the six months ended June 30, 2016 (Unaudited)
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Summary of Significant Accounting Policies (Policies) |
6 Months Ended |
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Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Recent Accounting Developments | Recent Accounting Developments - Guidance Adopted in 2017 ASU 2016-18 — In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, or ASU No. 2016-18. The amendments of ASU No. 2016-18 require an entity to include amounts generally described as restricted cash and restricted cash equivalents, including funds deposited by counterparties with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. The amendments of ASU No. 2016-18 are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted and the adoption of ASU No. 2016-18 will be applied retrospectively. The Company adopted the guidance in ASU No. 2016-18 during the second quarter of 2017. In connection with the adoption of the standard, the Company has applied the guidance retrospectively which resulted in a decrease in cash flow from operations of $54 million and a decrease of in cash flow from investing of $1 million on the statement of cash flow for the six months ended June 30, 2016. ASU 2016-16 — In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, or ASU No. 2016-16. Current GAAP prohibits the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset has been sold to an outside party which has resulted in diversity in practice and increased complexity within financial reporting. The amendments of ASU No. 2016-16 would require an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company adopted the guidance in ASU No. 2016-16 effective January 1, 2017. In connection with the adoption of the standard, the Company recorded a reduction to non-current assets of $267 million with a corresponding reduction to cumulative retained deficit. ASU 2016-15 — In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments, or ASU No. 2016-15. The amendments of ASU No. 2016-15 were issued to address eight specific cash flow issues for which stakeholders have indicated to the FASB that a diversity in practice existed in how entities were presenting and classifying these items in the statement of cash flows. The issues addressed by ASU No. 2016-15 include but are not limited to the classification of debt prepayment and debt extinguishment costs, payments made for contingent consideration for a business combination, proceeds from the settlement of insurance proceeds, distributions received from equity method investees and separately identifiable cash flows and the application of the predominance principle. The Company adopted the guidance in ASU No. 2016-15 effective January 1, 2017. In connection with the adoption of the standard, the Company has applied the guidance retrospectively which resulted in an increase in cash flow from operations of $55 million and a decrease in cash flow from financing of $55 million on the statement of cash flow for the six months ended June 30, 2016. ASU 2016-09 — In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718), or ASU No. 2016-09. The amendments focused on simplification specifically with regard to share-based payment transactions, including income tax consequences, classification of awards as equity or liabilities and classification on the statement of cash flows. The Company adopted the guidance in ASU No. 2016-09 effective January 1, 2017 with no material adjustments recorded to the consolidated balance sheet. Recent Accounting Developments - Guidance Not Yet Adopted ASU 2017-07 — In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, or ASU No. 2017-07. Current GAAP does not indicate where the amount of net benefit cost should be presented in an entity’s income statement and does not require entities to disclose the amount of net benefit cost that is included in the income statement. The amendments of ASU No. 2017-07 require an entity to report the service cost component of net benefit costs in the same line item as other compensation costs arising from services rendered by the related employees during the applicable service period. The other components of net benefit cost are required to be presented separately from the service cost component and outside the subtotal of income from operations. Further, ASU No. 2017-07 prescribes that only the service cost component of net benefit costs is eligible for capitalization. The amendments of ASU No. 2017-07 are effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted and must be applied on a retrospective basis, except for the amendments regarding the capitalization of the service cost component, which must be applied prospectively. The Company is currently assessing the impact that the adoption of ASU No. 2017-07 will have on its results of operations, cash flows, and statement of financial position. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or Topic 842, with the objective to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and to improve financial reporting by expanding the related disclosures. The guidance in Topic 842 provides that a lessee that may have previously accounted for a lease as an operating lease under current GAAP should recognize the assets and liabilities that arise from a lease on the balance sheet. In addition, Topic 842 expands the required quantitative and qualitative disclosures with regards to lease arrangements. The Company expects to adopt the standard effective January 1, 2019 utilizing the required modified retrospective approach for the earliest period presented. The Company expects to elect certain of the practical expedients permitted, including the expedient that permits the Company to retain its existing lease assessment and classification. The Company is currently working through an adoption plan which includes the evaluation of lease contracts compared to the new standard. While the Company is currently evaluating the impact the new guidance will have on its financial position and results of operations, the Company expects to recognize lease liabilities and right of use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending the Company’s review of its existing lease contracts and service contracts which may contain embedded leases. While this review is still in process, NRG believes the adoption of Topic 842 will have a material impact on its financial statements. ASU 2014-09 — In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Topic 606, which was further amended through various updates issued by the FASB thereafter. The amendments of Topic 606 completed the joint effort between the FASB and the IASB, to develop a common revenue standard for GAAP and IFRS, and to improve financial reporting. The guidance under Topic 606 provides that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services provided and establishes a five step model to be applied by an entity in evaluating its contracts with customers. The Company expects to adopt the standard effective January 1, 2018 and apply the guidance retrospectively to contracts at the date of adoption. The Company will recognize the cumulative effect of applying Topic 606 at the date of initial application, as prescribed under the modified retrospective transition method. The Company also expects to elect the practical expedient available under Topic 606 for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity. The Company continues to assess the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating the Company’s methods of estimating the amount and timing of variable consideration. While the impact remains subject to continued review, the Company does not believe the adoption of Topic 606 will have a material impact on its financial statements. |
Nuclear Decommissioning | NRG's Nuclear Decommissioning Trust Fund assets are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations, because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to nuclear decommissioning trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment. |
Segment Reporting | The Company's segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: Generation, which includes generation, international and BETM; Retail, which includes Mass customers and Business Solutions, which includes C&I customers and other distributed and reliability products; Renewables, which includes solar and wind assets, excluding those in NRG Yield; NRG Yield; and corporate activities. The financial information for the three and six months ended June 30, 2016 has been recast to reflect the current segment structure. On September 1, 2016, NRG Yield acquired the remaining 51.05% interest in CVSR Holdco LLC, which indirectly owns the CVSR solar facility, from the Company. On March 27, 2017, NRG Yield acquired from NRG a 16% interest in the Agua Caliente solar project, and NRG's interests in seven utility-scale solar projects located in Utah. Both acquisitions were treated as a transfer of entities under common control and accordingly, all historical periods have been recast to reflect the acquisition as if they had occurred at the beginning of the financial statement period. On June 14, 2017, as described in Note 3, Discontinued Operations and Dispositions, NRG deconsolidated GenOn for financial reporting purposes. The financial information for all historical periods have been recast to reflect the deconsolidation of GenOn and to present discontinued operations within the corporate segment. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and capital for allocation, as well as net income/(loss). |
Summary of Significant Accounting Policies (Tables) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Information | The following table presents the allowance for doubtful accounts included in accounts receivable, net; accumulated depreciation included in property, plant and equipment, net; accumulated amortization included in intangible assets, net and accumulated amortization included in out-of-market contracts, net:
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Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
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Schedule of Change in Noncontrolling Interest | Noncontrolling Interest The following table reflects the changes in NRG's noncontrolling interest balance:
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Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest The following table reflects the changes in the Company's redeemable noncontrolling interest balance:
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Discontinued Operations and Dispositions (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Results of Discontinued Operations and Major Classes of Assets and Liabilities | Summarized results of discontinued operations were as follows:
The following table summarizes the major classes of assets and liabilities classified as discontinued operations as of December 31, 2016. As noted above, NRG no longer consolidates GenOn for financial reporting purposes as of June 30, 2017.
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Fair Value of Financial Instruments (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value | The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows:
(a) Includes the current portion of notes receivable which is recorded in prepayments and other current assets on the Company's consolidated balance sheets. (b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets. The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of June 30, 2017 and December 31, 2016:
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Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
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Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following tables reconcile, for the three and six months ended June 30, 2017 and 2016, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, at least annually, using significant unobservable inputs:
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Significant unobservable inputs used developing fair valueets, Quantitative Information | The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2017 and December 31, 2016:
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Fair Value Inputs, Sensitivity Analysis | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2017 and December 31, 2016:
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Net counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.
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Nuclear Decommissioning Trust Fund (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nuclear Decommissioning Trust Fund Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of aggregate fair values and unrealized gains and losses (including other-than-temporary impairments) for the securities held in the nuclear decommissioning trust fund | The following table summarizes the aggregate fair values and unrealized gains and losses (including other-than-temporary impairments) for the securities held in the trust funds, as well as information about the contractual maturities of those securities.
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Summary of proceeds from sales of available-for-sale securities and the related realized gains and losses | The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method.
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Accounting for Derivative Instruments and Hedging Activities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net notional volume buy/(sell) of NRG's open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of June 30, 2017 and December 31, 2016. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
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Fair value within the derivative instrument valuation on the balance sheets | The following table summarizes the fair value within the derivative instrument valuation on the balance sheets:
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Offsetting of derivatives by counterparty master agreement level and collateral received or paid | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid:
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Effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow hedge derivatives, net of tax | The following table summarizes the effects of ASC 815 on the Company's accumulated OCI balance attributable to cash flow hedge derivatives, net of tax:
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Pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations | The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations. The effect of energy commodity contracts is included within operating revenues and cost of operations and the effect of interest rate contracts is included in interest expense.
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Debt and Capital Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt and capital leases | Long-term debt and capital leases consisted of the following:
(a) As of June 30, 2017, L+ equals 3 month LIBOR plus x%, with the exception of the Utah Portfolio term loans. |
Variable Interest Entities, or VIEs (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable Interest Entities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information for Consolidated VIEs | The summarized financial information for the Company's consolidated VIEs consisted of the following:
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Changes in Capital Structure (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in NRG's common shares issued and outstanding | The following table reflects the changes in NRG's common stock issued and outstanding:
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Schedule of dividends paid | The following table lists the dividends paid during the six months ended June 30, 2017:
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Earnings/(Loss) Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of NRG's basic and diluted earnings per share | The reconciliation of NRG's basic and diluted loss per share is shown in the following table:
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Summary of NRG's outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company's diluted earnings per share | The following table summarizes NRG’s outstanding equity instruments that are anti-dilutive and were not included in the computation of the Company’s diluted loss per share:
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Segment Reporting (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of segment reporting information, by segment |
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Income Taxes (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision consisted of the following:
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Condensed Consolidating Financial Information (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Statements of Operations | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the six months ended June 30, 2016 (Unaudited)
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Condensed Consolidating Statements of Comprehensive Income/(Loss) | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended June 30, 2016 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the six months ended June 30, 2016 (Unaudited)
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Condensed Consolidating Balance Sheets | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2016
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Condensed Consolidating Statements of Cash Flows | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the six months ended June 30, 2017 (Unaudited)
NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the six months ended June 30, 2016 (Unaudited)
|
Basis of Presentation - Basis of Presentation (Details) MW in Thousands |
2 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | |
---|---|---|---|---|---|
Jun. 14, 2017
USD ($)
|
Jun. 30, 2017
USD ($)
MW
|
Jun. 30, 2016
USD ($)
|
Jun. 14, 2017
USD ($)
|
Jun. 30, 2016
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Generation capacity (in MW) | MW | 31 | ||||
GenOn | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cost method investments, fair value | $ 0 | $ 0 | |||
GenOn | Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Loss on disposal of discontinued operation | $ 620,000,000 | $ 208,000,000 | $ 0 | $ 620,000,000 | $ 0 |
Summary of Significant Accounting Policies - Other Balance Sheet Information (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Accounting Policies [Abstract] | ||
Accounts receivable allowance for doubtful accounts | $ 39 | $ 29 |
Property, plant and equipment accumulated depreciation | 6,180 | 5,711 |
Intangible assets accumulated amortization | 1,698 | 1,687 |
Out-of-market contracts accumulated amortization | $ 346 | $ 457 |
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
Jun. 30, 2016 |
Dec. 31, 2015 |
---|---|---|---|---|
Accounting Policies [Abstract] | ||||
Collateral received from GenOn | $ 79 | |||
Cash and cash equivalents | $ 752 | 938 | $ 748 | $ 853 |
Funds deposited by counterparties | 19 | 2 | 1 | 55 |
Restricted cash | 469 | 446 | 413 | 414 |
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ 1,240 | $ 1,386 | $ 1,162 | $ 1,322 |
Summary of Significant Accounting Policies - Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Noncontrolling Interest [Roll Forward] | ||||
Balance as of beginning of period | $ 2,405 | |||
Dividends paid to NRG Yield, Inc. public shareholders | (52) | |||
Distributions to noncontrolling interest | (39) | |||
Comprehensive loss attributable to noncontrolling interest | $ (17) | $ (16) | (56) | $ (68) |
Contributions from noncontrolling interest | 76 | |||
Sale of assets to NRG Yield, Inc. | 3 | |||
Balance as of end of period | $ 2,462 | 2,462 | ||
Noncontrolling Interest | ||||
Noncontrolling Interest [Roll Forward] | ||||
Comprehensive loss attributable to noncontrolling interest | (19) | |||
Non-cash adjustments to noncontrolling interest | $ 88 |
Summary of Significant Accounting Policies - Redeemable Noncontrolling Interest (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Noncontrolling Interest [Line Items] | ||||
Balance as of beginning of period | $ 46 | |||
Contributions from redeemable noncontrolling interest | 42 | |||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | $ (17) | $ (16) | (56) | $ (68) |
Balance as of end of period | $ 51 | 51 | ||
Redeemable noncontrolling interest [Member] | ||||
Noncontrolling Interest [Line Items] | ||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | $ (37) |
Fair Value of Financial Instruments - Estimated Carrying Amounts and Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | $ 17,125 | $ 16,703 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes receivable | 25 | 34 |
Long-term debt, including current portion | 17,086 | 16,655 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes receivable | 24 | 34 |
Long-term debt, including current portion | 17,246 | 16,620 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | 9,398 | 9,205 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | $ 7,848 | $ 7,415 |
Fair Value of Financial Instruments - Derivative Fair Value Measurements, Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Fair Value Disclosures [Abstract] | ||
Total derivative assets valued with prices provied by models and other valuation techniques (as a percent) | 13.00% | |
Total derivative liabilities valued with prices provied by models and other valuation techniques (as a percent) | 12.00% | |
Credit reserve | $ 10 |
Nuclear Decommissioning Trust Fund - Summary of proceeds from sales of available-for-sale securities and related gains and losses (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Nuclear Decommissioning Trust Fund Disclosure [Abstract] | ||
Realized gains | $ 3 | $ 3 |
Realized losses | 3 | 2 |
Proceeds from sale of securities | $ 277 | $ 267 |
Variable Interest Entities, or VIEs (Details) $ in Millions |
Jun. 30, 2017
USD ($)
facility
MW
|
Dec. 31, 2016
USD ($)
|
---|---|---|
Investments Accounted for by the Equity Method | ||
Generation capacity (in MW) | MW | 31,000 | |
Equity investments in affiliates | $ 1,127 | $ 1,120 |
Deficit Restoration Obligation | 95 | |
Current assets | 84 | 87 |
Net property, plant and equipment | 1,493 | 1,534 |
Other long-term assets | 1,024 | 954 |
Total assets | 2,601 | 2,575 |
Current liabilities | 63 | 59 |
Long-term debt | 424 | 442 |
Other long-term liabilities | 187 | 183 |
Total liabilities | 674 | 684 |
Noncontrolling interests | 600 | 529 |
Net assets less noncontrolling interests | $ 1,327 | $ 1,362 |
GenConn Energy LLC | ||
Investments Accounted for by the Equity Method | ||
Economic interest in equity method investments (as a percent) | 50.00% | |
Power generation facilities | facility | 2 | |
Generation capacity (in MW) | MW | 190 | |
Equity investments in affiliates | $ 104 |
Changes in Capital Structure - Changes in NRG's common shares outstanding and issued (Details) |
6 Months Ended |
---|---|
Jun. 30, 2017
shares
| |
Class of Stock [Line Items] | |
Balance as of beginning of period | 417,583,825 |
Treasury shares, balance as of beginning of period | (102,140,814) |
Outstanding, as of beginning of period | 315,443,011 |
Shares issued under LTIPs | 397,287 |
Shares issued under ESPP | 282,530 |
Balance as of end of period | 417,981,112 |
Treasury shares, balance as of end of the period | (101,858,284) |
Outstanding, as of end of period | 316,122,828 |
Issued | |
Class of Stock [Line Items] | |
Shares issued under LTIPs | 397,287 |
Shares issued under ESPP | 0 |
Treasury | |
Class of Stock [Line Items] | |
Shares issued under LTIPs | 0 |
Shares issued under ESPP | 282,530 |
Changes in Capital Structure - Schedule of dividends paid (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jul. 20, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Dividends Payable [Line Items] | ||||||
Dividends Per Common Share (in dollars per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.18 | |
Subsequent Event | ||||||
Dividends Payable [Line Items] | ||||||
Common stock dividends declared (in usd per share) | $ 0.03 | |||||
Common stock dividends proposed annual amount (in usd per share) | $ 0.12 |
Earnings/(Loss) Per Share - Anti-dilutive Securities (Details) - shares shares in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 6 | 3 | 6 | 3 |
Equity compensation plans | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities (in shares) | 6 | 3 | 6 | 3 |
Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Effective Tax Rate | ||||
Income/(Loss) before income taxes | $ 103 | $ (138) | $ (71) | $ (173) |
Income tax expense/(benefit) | $ 4 | $ 25 | $ (1) | $ 47 |
Effective tax rate | 3.90% | (18.10%) | 1.40% | (27.20%) |
Statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
Uncertain Tax Benefits | ||||
Non-current tax liability for uncertain tax benefits | $ 39 | $ 39 | ||
Unrecognized tax benefits, penalties and interest accrued | $ 4 | $ 4 |
Related Party Transactions - Service Agreement with GenOn (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 14, 2017 |
Jun. 12, 2017 |
Jun. 30, 2017 |
Jun. 30, 2016 |
Jun. 30, 2017 |
Jun. 30, 2016 |
|
Related Party Transaction [Line Items] | ||||||
Other income - affiliate | $ 42 | $ 48 | $ 90 | $ 96 | ||
GenOn | Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Service fees | $ 193 | |||||
Shared services, annualized rate | $ 84 | |||||
Credit applied | 28 | |||||
Restructuring Support Agreement | Services Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Shared services, annualized rate | 84 | |||||
Monthly shared services | $ 5 | |||||
Credit applied | $ 28 |
Related Party Transactions - Credit Agreement with GenOn (Details) - USD ($) |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Related Party Transaction [Line Items] | ||
Long-term debt | $ 17,125,000,000 | $ 16,703,000,000 |
GenOn | Revolving Credit Facility | Intercompany Credit Agreement | ||
Related Party Transaction [Line Items] | ||
Credit facility maximum borrowing capacity | 500,000,000 | |
Letters of credit outstanding under revolver | 140,000,000 | 272,000,000 |
Long-term debt | 125,000,000 | $ 0 |
GenOn | Revolving Credit Facility | Restructuring Support Agreement, Letter of Credit Credit Facility | ||
Related Party Transaction [Line Items] | ||
Credit facility maximum borrowing capacity | $ 330,000,000 | |
Line of credit facility cash collateralized percentage required | 103.00% |
Condensed Consolidating Financial Information - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 17,125 | $ 16,703 |
Recourse Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | 7,785 | $ 7,795 |
Senior Notes | Recourse Debt | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 5,400 |
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