Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ||||
For the Quarterly Period Ended: | June 30, | |||
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware | 41-1724239 | |||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
804 Carnegie Center | , | Princeton | New Jersey | 08540 |
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol(s) | Name of Exchange on Which Registered |
Common Stock, par value $0.01 | NRG | New York Stock Exchange |
Large Accelerated Filer | ☒ | Accelerated filer | ☐ | Non-accelerated filer | ☐ | Smaller reporting company | ☐ | Emerging growth company | ☐ |
NRG’s Annual Report on Form 10-K for the year ended December 31, | ||
2023 Term Loan Facility | The Company's | |
Agua Caliente | Agua Caliente Solar Project, a 290 MW photovoltaic power station located in Yuma County, Arizona in which NRG owns 35% interest | |
ARO | Asset Retirement Obligation | |
ASC | The FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP | |
ASU | Accounting Standards Updates - updates to the ASC | |
Average realized prices | Volume-weighted average power prices, net of average fuel costs and reflecting the impact of settled hedges | |
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 | |
BRA | Base Residual Auction | |
BTU | British Thermal Unit | |
Business Solutions | NRG's business solutions group, which includes demand response, commodity sales, energy efficiency and energy management services | |
CAA | Clean Air Act | |
CAISO | California Independent System Operator | |
CDD | Cooling Degree Day | |
CDWR | California Department of Water Resources | |
CFTC | U.S. Commodity Futures Trading Commission | |
C&I | Commercial industrial and governmental/institutional | |
CES | Clean Energy Standard | |
Cleco | Cleco | |
CO2 | ||
ComEd | Commonwealth Edison | |
Company | NRG Energy, Inc. | |
CWA | Clean Water Act | |
D.C. Circuit | U.S. Court of Appeals for the District of Columbia Circuit | |
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 |
DNREC | Delaware Department of Natural Resources and Environmental Control | |
Economic gross margin | Sum of energy revenue, capacity revenue, retail revenue and other revenue, less cost of fuels and other cost of sales | |
EME | Edison Mission Energy | |
EPA | U.S. Environmental Protection Agency | |
ERCOT | Electric Reliability Council of Texas, the Independent System Operator and the regional reliability coordinator of the various electricity systems within Texas | |
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 | |
FGD | Flue gas desulfurization | |
FTRs | Financial Transmission Rights | |
GAAP | ||
GenConn | GenConn Energy LLC | |
GenOn | GenOn Energy, Inc. | |
GenOn | ||
GenOn and certain of its wholly owned subsidiaries, including GenOn Americas | ||
GHG | Greenhouse Gas | |
GIP | Global Infrastructure Partners | |
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 upon whether the electricity output measured is gross or net | |
High-level radioactive waste | ||
ISO | Independent System Operator, also referred to as RTOs | |
ISO-NE | ISO New England Inc. | |
kWh | Kilowatt-hour | |
LaGen | Louisiana Generating, LLC | |
LIBOR | London Inter-Bank Offered Rate | |
LTIPs | Collectively, the NRG LTIP and the NRG GenOn LTIP | |
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 | |
MWe | Megawatt equivalent | |
MWh | Saleable megawatt hour net of internal/parasitic load megawatt-hour | |
NAAQS | National Ambient Air Quality Standards | |
NEPOOL | New England Power Pool | |
NERC | North American Electric Reliability Corporation | |
NJBPU | New Jersey Board of Public Utilities | |
Net Exposure | Counterparty credit exposure to NRG, net of collateral | |
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, Inc. | NRG Yield, Inc., which changed it's name to Clearway Energy, Inc. following the | |||
Nuclear Decommissioning Trust Fund | NRG's nuclear decommissioning trust fund assets, which are for the Company's portion of the decommissioning of the STP, | |||
NY DEC | New York | |||
NYISO | New York Independent System Operator | |||
NYMEX | New York Mercantile Exchange |
NYSPSC | New York State Public Service Commission | |
OCI/OCL | Other Comprehensive Income/(Loss) | |
ORDC | Operating Reserve Demand Curve | |
PA PUC | Pennsylvania Public Utility Commission | |
Peaking | Units expected to satisfy demand requirements during the periods of greatest or peak load on | |
PJM | PJM Interconnection, LLC | |
PM2.5 | Particulate Matter that has a diameter of less than 2.5 micrometers | |
PPA | Power Purchase Agreement | |
PUCT | Public Utility Commission of Texas | |
RCRA | Resource Conservation and Recovery Act of 1976 | |
Reliant Energy | Reliant Energy Retail Services, LLC | |
REMA | NRG REMA LLC, which leases a 100% interest in the Shawville generating facility and 16.7% and 16.5% | |
Renewables Platform | The renewable operating and | |
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 | |
RGGI | Regional Greenhouse Gas Initiative | |
RTO | Regional Transmission Organization | |
SDG&E | San Diego Gas & Electric | |
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, comprised of the Revolving Credit Facility and the 2023 Term Loan Facility. The 2023 Term Loan Facility was repaid in the second quarter of 2019 | |
Senior Notes | As of | |
SO2 | Sulfur Dioxide | |
South Central Portfolio | NRG's South Central Portfolio, which owned and operated a portfolio of generation assets consisting of Bayou Cove, Big Cajun-I, Big Cajun-II, Cottonwood and Sterlington, was sold on February 4, 2019. NRG is leasing back the Cottonwood facility through May 2025 | |
STP | South Texas Project — nuclear generating facility located near Bay City, Texas in which NRG owns a 44% interest | |
STPNOC | South Texas Project Nuclear Operating Company |
TSA | Transportation Services Agreement | |
TWCC | Texas Westmoreland Coal Co. | |
UPMC Thermal Project | University of Pittsburgh Medical Center thermal generating project that provides power, steam, chilled water and backup power located in Pittsburgh, PA. | |
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 | |
VCP | Voluntary Clean-Up Program | |
VIE | Variable Interest Entity | |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||
(In millions, except for per share amounts) | 2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,922 | $ | 2,701 | $ | 5,343 | $ | 5,083 | $ | 2,465 | $ | 2,461 | $ | 4,630 | $ | 4,526 | ||||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||||||||||
Cost of operations | 2,051 | 1,841 | 3,609 | 3,704 | 1,845 | 1,889 | 3,496 | 3,274 | ||||||||||||||||||||||
Depreciation and amortization | 227 | 260 | 462 | 517 | 85 | 112 | 170 | 232 | ||||||||||||||||||||||
Impairment losses | 74 | 63 | 74 | 63 | 1 | 74 | 1 | 74 | ||||||||||||||||||||||
Selling, general and administrative | 211 | 221 | 402 | 481 | 211 | 200 | 405 | 376 | ||||||||||||||||||||||
Reorganization costs | 23 | — | 43 | — | 2 | 23 | 15 | 43 | ||||||||||||||||||||||
Development costs | 16 | 18 | 29 | 35 | 2 | 3 | 4 | 8 | ||||||||||||||||||||||
Total operating costs and expenses | 2,602 | 2,403 | 4,619 | 4,800 | 2,146 | 2,301 | 4,091 | 4,007 | ||||||||||||||||||||||
Other income - affiliate | — | 39 | — | 87 | ||||||||||||||||||||||||||
Gain on sale of assets | 14 | 2 | 16 | 4 | 1 | 14 | 2 | 16 | ||||||||||||||||||||||
Operating Income | 334 | 339 | 740 | 374 | 320 | 174 | 541 | 535 | ||||||||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | 18 | (3 | ) | 16 | 2 | — | 5 | (21 | ) | 6 | ||||||||||||||||||||
Other income/(expense), net | (20 | ) | 14 | (23 | ) | 26 | 20 | (23 | ) | 32 | (23 | ) | ||||||||||||||||||
Loss on debt extinguishment, net | (1 | ) | — | (3 | ) | (2 | ) | (47 | ) | (1 | ) | (47 | ) | (3 | ) | |||||||||||||||
Interest expense | (202 | ) | (247 | ) | (369 | ) | (471 | ) | (105 | ) | (123 | ) | (219 | ) | (239 | ) | ||||||||||||||
Total other expense | (205 | ) | (236 | ) | (379 | ) | (445 | ) | (132 | ) | (142 | ) | (255 | ) | (259 | ) | ||||||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 129 | 103 | 361 | (71 | ) | |||||||||||||||||||||||||
Income tax expense/(benefit) | 8 | 4 | 7 | (1 | ) | |||||||||||||||||||||||||
Income/(Loss) from Continuing Operations | 121 | 99 | 354 | (70 | ) | |||||||||||||||||||||||||
Loss from discontinued operations, net of income tax | (25 | ) | (741 | ) | (25 | ) | (775 | ) | ||||||||||||||||||||||
Net Income/(Loss) | 96 | (642 | ) | 329 | (845 | ) | ||||||||||||||||||||||||
Less: Net income/(loss) attributable to noncontrolling interest and redeemable noncontrolling interests | 24 | (16 | ) | (22 | ) | (55 | ) | |||||||||||||||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 72 | $ | (626 | ) | $ | 351 | $ | (790 | ) | ||||||||||||||||||||
Earnings/(Loss) per Share Attributable to NRG Energy, Inc. Common Stockholders | ||||||||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | 188 | 32 | 286 | 276 | ||||||||||||||||||||||||||
Income tax (benefit)/expense | (1 | ) | 5 | 3 | 11 | |||||||||||||||||||||||||
Income from Continuing Operations | 189 | 27 | 283 | 265 | ||||||||||||||||||||||||||
Income from discontinued operations, net of income tax | 13 | 69 | 401 | 64 | ||||||||||||||||||||||||||
Net Income | 202 | 96 | 684 | 329 | ||||||||||||||||||||||||||
Less: Net income/(loss) attributable to noncontrolling interest and redeemable interests | 1 | 24 | 1 | (22 | ) | |||||||||||||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 201 | $ | 72 | $ | 683 | $ | 351 | ||||||||||||||||||||||
Earnings per Share Attributable to NRG Energy, Inc. | ||||||||||||||||||||||||||||||
Weighted average number of common shares outstanding — basic | 310 | 316 | 314 | 316 | 265 | 310 | 272 | 314 | ||||||||||||||||||||||
Income/(loss) from continuing operations per weighted average common share — basic | $ | 0.31 | $ | 0.36 | $ | 1.20 | $ | (0.05 | ) | |||||||||||||||||||||
Income/(loss) from discontinued operations per weighted average common share — basic | $ | (0.08 | ) | $ | (2.34 | ) | $ | (0.08 | ) | $ | (2.45 | ) | ||||||||||||||||||
Earnings/(Loss) per Weighted Average Common Share — Basic | $ | 0.23 | $ | (1.98 | ) | $ | 1.12 | $ | (2.50 | ) | ||||||||||||||||||||
Income from continuing operations per weighted average common share — basic | $ | 0.71 | $ | 0.01 | $ | 1.04 | $ | 0.92 | ||||||||||||||||||||||
Income from discontinued operations per weighted average common share — basic | $ | 0.05 | $ | 0.22 | $ | 1.47 | $ | 0.20 | ||||||||||||||||||||||
Earnings per Weighted Average Common Share — Basic | $ | 0.76 | $ | 0.23 | $ | 2.51 | $ | 1.12 | ||||||||||||||||||||||
Weighted average number of common shares outstanding — diluted | 314 | 316 | 318 | 316 | 267 | 314 | 274 | 318 | ||||||||||||||||||||||
Income/(loss) from continuing operations per weighted average common share — diluted | $ | 0.31 | $ | 0.36 | $ | 1.18 | $ | (0.05 | ) | |||||||||||||||||||||
Income/(loss) from discontinued operations per weighted average common share — diluted | $ | (0.08 | ) | $ | (2.34 | ) | $ | (0.08 | ) | $ | (2.45 | ) | ||||||||||||||||||
Earnings/(Loss) per Weighted Average Common Share — Diluted | $ | 0.23 | $ | (1.98 | ) | $ | 1.10 | $ | (2.50 | ) | ||||||||||||||||||||
Income from continuing operations per weighted average common share — diluted | $ | 0.70 | $ | 0.01 | $ | 1.03 | $ | 0.90 | ||||||||||||||||||||||
Income from discontinued operations per weighted average common share — diluted | $ | 0.05 | $ | 0.22 | $ | 1.46 | $ | 0.20 | ||||||||||||||||||||||
Earnings per Weighted Average Common Share — Diluted | $ | 0.75 | $ | 0.23 | $ | 2.49 | $ | 1.10 | ||||||||||||||||||||||
Dividends Per Common Share | $ | 0.03 | $ | 0.03 | $ | 0.06 | $ | 0.06 | $ | 0.03 | $ | 0.03 | $ | 0.06 | $ | 0.06 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In millions) | |||||||||||||||
Net income/(loss) | $ | 96 | $ | (642 | ) | $ | 329 | $ | (845 | ) | |||||
Other comprehensive income/(loss), net of tax | |||||||||||||||
Unrealized gain/(loss) on derivatives, net of income tax expense of $0, $0, $0, and $1 | 5 | (5 | ) | 19 | (1 | ) | |||||||||
Foreign currency translation adjustments, net of income tax expense of $0, $0, $0, and $0 | (4 | ) | 1 | (6 | ) | 8 | |||||||||
Available-for-sale securities, net of income tax expense of $0, $0, $0, and $0 | 1 | 1 | 1 | 1 | |||||||||||
Defined benefit plans, net of income tax expense of $0, $0, $0, and $0 | (1 | ) | 27 | (2 | ) | 27 | |||||||||
Other comprehensive income | 1 | 24 | 12 | 35 | |||||||||||
Comprehensive income/(loss) | 97 | (618 | ) | 341 | (810 | ) | |||||||||
Less: Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interest | 26 | (17 | ) | (12 | ) | (56 | ) | ||||||||
Comprehensive income/(loss) attributable to NRG Energy, Inc. | 71 | (601 | ) | 353 | (754 | ) | |||||||||
Comprehensive income/(loss) available for common stockholders | $ | 71 | $ | (601 | ) | $ | 353 | $ | (754 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | |||||||||||||||
Net Income | $ | 202 | $ | 96 | $ | 684 | $ | 329 | |||||||
Other Comprehensive (Loss)/Income | |||||||||||||||
Unrealized gain on derivatives | — | 5 | — | 19 | |||||||||||
Foreign currency translation adjustments | (1 | ) | (4 | ) | — | (6 | ) | ||||||||
Available-for-sale securities | 1 | 1 | 1 | 1 | |||||||||||
Defined benefit plans | (3 | ) | (1 | ) | (6 | ) | (2 | ) | |||||||
Other comprehensive (loss)/income | (3 | ) | 1 | (5 | ) | 12 | |||||||||
Comprehensive Income | 199 | 97 | 679 | 341 | |||||||||||
Less: Comprehensive income/(loss) attributable to noncontrolling interest and redeemable noncontrolling interest | 1 | 26 | 1 | (12 | ) | ||||||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ | 198 | $ | 71 | $ | 678 | $ | 353 |
June 30, 2019 | December 31, 2018 | ||||||
(In millions, except share data) | (Unaudited) | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 294 | $ | 563 | |||
Funds deposited by counterparties | 31 | 33 | |||||
Restricted cash | 11 | 17 | |||||
Accounts receivable, net | 1,049 | 1,024 | |||||
Inventory | 370 | 412 | |||||
Derivative instruments | 850 | 764 | |||||
Cash collateral paid in support of energy risk management activities | 163 | 287 | |||||
Prepayments and other current assets | 277 | 302 | |||||
Current assets - held-for-sale | — | 1 | |||||
Current assets - discontinued operations | — | 197 | |||||
Total current assets | 3,045 | 3,600 | |||||
Property, plant and equipment, net | 2,610 | 3,048 | |||||
Other Assets | |||||||
Equity investments in affiliates | 383 | 412 | |||||
Operating lease right-of-use assets, net | 499 | — | |||||
Goodwill | 573 | 573 | |||||
Intangible assets, net | 561 | 591 | |||||
Nuclear decommissioning trust fund | 748 | 663 | |||||
Derivative instruments | 426 | 317 | |||||
Deferred income taxes | 55 | 46 | |||||
Other non-current assets | 271 | 289 | |||||
Non-current assets - held-for-sale | — | 77 | |||||
Non-current assets - discontinued operations | — | 1,012 | |||||
Total other assets | 3,516 | 3,980 | |||||
Total Assets | $ | 9,171 | $ | 10,628 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt and capital leases | $ | 87 | $ | 72 | |||
Current portion of operating lease liabilities | 74 | — | |||||
Accounts payable | 723 | 863 | |||||
Derivative instruments | 778 | 673 | |||||
Cash collateral received in support of energy risk management activities | 31 | 33 | |||||
Accrued expenses and other current liabilities | 601 | 680 | |||||
Current liabilities - held-for-sale | — | 5 | |||||
Current liabilities - discontinued operations | — | 72 | |||||
Total current liabilities | 2,294 | 2,398 | |||||
Other Liabilities | |||||||
Long-term debt and capital leases | 5,794 | 6,449 | |||||
Non-current operating lease liabilities | 513 | — | |||||
Nuclear decommissioning reserve | 290 | 282 | |||||
Nuclear decommissioning trust liability | 448 | 371 | |||||
Derivative instruments | 374 | 304 | |||||
Deferred income taxes | 71 | 65 | |||||
Other non-current liabilities | 1,016 | 1,274 | |||||
Non-current liabilities - held-for-sale | — | 65 | |||||
Non-current liabilities - discontinued operations | — | 635 | |||||
Total other liabilities | 8,506 | 9,445 | |||||
Total Liabilities | 10,800 | 11,843 | |||||
Redeemable noncontrolling interest in subsidiaries | 19 | 19 | |||||
Commitments and Contingencies | |||||||
Stockholders' Equity | |||||||
Common stock; $0.01 par value; 500,000,000 shares authorized; 421,830,474 and 420,288,886 shares issued and 258,570,598 and 283,650,039 shares outstanding at June 30, 2019 and December 31, 2018, respectively | 4 | 4 | |||||
Additional paid-in-capital | 8,488 | 8,510 | |||||
Accumulated deficit | (5,355 | ) | (6,022 | ) | |||
Less treasury stock, at cost - 163,259,876 and 136,638,847 shares at June 30, 2019 and December 31, 2018, respectively | (4,686 | ) | (3,632 | ) | |||
Accumulated other comprehensive loss | (99 | ) | (94 | ) | |||
Total Stockholders' Equity | (1,648 | ) | (1,234 | ) | |||
Total Liabilities and Stockholders' Equity | $ | 9,171 | $ | 10,628 |
June 30, 2018 | December 31, 2017 | ||||||
(In millions, except shares) | (Unaudited) | ||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 980 | $ | 991 | |||
Funds deposited by counterparties | 71 | 37 | |||||
Restricted cash | 286 | 508 | |||||
Accounts receivable, net | 1,371 | 1,079 | |||||
Inventory | 485 | 532 | |||||
Derivative instruments | 851 | 626 | |||||
Cash collateral paid in support of energy risk management activities | 224 | 171 | |||||
Accounts receivable - affiliate | 57 | 95 | |||||
Current assets - held for sale | 100 | 115 | |||||
Prepayments and other current assets | 328 | 261 | |||||
Total current assets | 4,753 | 4,415 | |||||
Property, plant and equipment, net | 12,774 | 13,908 | |||||
Other Assets | |||||||
Equity investments in affiliates | 1,055 | 1,038 | |||||
Notes receivable, less current portion | 15 | 2 | |||||
Goodwill | 539 | 539 | |||||
Intangible assets, net | 1,860 | 1,746 | |||||
Nuclear decommissioning trust fund | 694 | 692 | |||||
Derivative instruments | 426 | 172 | |||||
Deferred income taxes | 126 | 134 | |||||
Non-current assets held-for-sale | 50 | 43 | |||||
Other non-current assets | 655 | 629 | |||||
Total other assets | 5,420 | 4,995 | |||||
Total Assets | $ | 22,947 | $ | 23,318 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt and capital leases | $ | 952 | $ | 688 | |||
Accounts payable | 975 | 881 | |||||
Accounts payable - affiliate | 29 | 33 | |||||
Derivative instruments | 709 | 555 | |||||
Cash collateral received in support of energy risk management activities | 72 | 37 | |||||
Current liabilities held-for-sale | 74 | 72 | |||||
Accrued expenses and other current liabilities | 719 | 890 | |||||
Accrued expenses and other current liabilities - affiliate | 133 | 161 | |||||
Total current liabilities | 3,663 | 3,317 | |||||
Other Liabilities | |||||||
Long-term debt and capital leases | 14,821 | 15,716 | |||||
Nuclear decommissioning reserve | 274 | 269 | |||||
Nuclear decommissioning trust liability | 410 | 415 | |||||
Deferred income taxes | 17 | 21 | |||||
Derivative instruments | 285 | 197 | |||||
Out-of-market contracts, net | 195 | 207 | |||||
Non-current liabilities held-for-sale | 12 | 8 | |||||
Other non-current liabilities | 1,130 | 1,122 | |||||
Total non-current liabilities | 17,144 | 17,955 | |||||
Total Liabilities | 20,807 | 21,272 | |||||
Redeemable noncontrolling interest in subsidiaries | 69 | 78 | |||||
Commitments and Contingencies | |||||||
Stockholders’ Equity | |||||||
Common stock | 4 | 4 | |||||
Additional paid-in capital | 8,481 | 8,376 | |||||
Accumulated deficit | (5,920 | ) | (6,268 | ) | |||
Less treasury stock, at cost — 116,267,484 and 101,580,045 shares, at June 30, 2018 and December 31, 2017, respectively | (2,871 | ) | (2,386 | ) | |||
Accumulated other comprehensive loss | (60 | ) | (72 | ) | |||
Noncontrolling interest | 2,437 | 2,314 | |||||
Total Stockholders’ Equity | 2,071 | 1,968 | |||||
Total Liabilities and Stockholders’ Equity | $ | 22,947 | $ | 23,318 |
Six months ended June 30, | Six months ended June 30, | |||||||||||||
(In millions) | 2018 | 2017 | 2019 | 2018 | ||||||||||
Cash Flows from Operating Activities | ||||||||||||||
Net income/(loss) | $ | 329 | $ | (845 | ) | |||||||||
Loss from discontinued operations, net of income tax | (25 | ) | (775 | ) | ||||||||||
Income/(loss) from continuing operations | 354 | (70 | ) | |||||||||||
Adjustments to reconcile net income to net cash provided/(used) by operating activities: | ||||||||||||||
Distributions and equity in earnings of unconsolidated affiliates | 27 | 26 | ||||||||||||
Net Income | $ | 684 | $ | 329 | ||||||||||
Income from discontinued operations, net of income tax | 401 | 64 | ||||||||||||
Income from continuing operations | 283 | 265 | ||||||||||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||||||||
Distributions and equity earnings of unconsolidated affiliates | 22 | 12 | ||||||||||||
Depreciation, amortization and accretion | 485 | 517 | 184 | 252 | ||||||||||
Provision for bad debts | 31 | 18 | 52 | 30 | ||||||||||
Amortization of nuclear fuel | 24 | 24 | 27 | 24 | ||||||||||
Amortization of financing costs and debt discount/premiums | 27 | 29 | 13 | 13 | ||||||||||
Adjustment for debt extinguishment | 3 | — | ||||||||||||
Loss on debt extinguishment, net | 47 | 3 | ||||||||||||
Amortization of intangibles and out-of-market contracts | 48 | 51 | 14 | 20 | ||||||||||
Amortization of unearned equity compensation | 26 | 16 | 10 | 15 | ||||||||||
Loss/(gain) on sale and disposal of assets | 1 | (16 | ) | |||||||||||
Impairment losses | 89 | 63 | 1 | 88 | ||||||||||
Changes in derivative instruments | (22 | ) | (145 | ) | ||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 4 | 8 | (5 | ) | (2 | ) | ||||||||
Changes in collateral deposits in support of energy risk management activities | 125 | (9 | ) | |||||||||||
Changes in nuclear decommissioning trust liability | 41 | 2 | 17 | 41 | ||||||||||
Changes in derivative instruments | (211 | ) | 7 | |||||||||||
Changes in collateral deposits in support of energy risk management activities | (18 | ) | (189 | ) | ||||||||||
Gain on sale of emission allowances | (11 | ) | 11 | |||||||||||
Gain on sale of assets | (16 | ) | (22 | ) | ||||||||||
Loss on deconsolidation of business | 22 | — | ||||||||||||
Loss on deconsolidation of Ivanpah project | — | 22 | ||||||||||||
Changes in other working capital | (401 | ) | (379 | ) | (388 | ) | (349 | ) | ||||||
Cash provided by continuing operations | 524 | 112 | 381 | 264 | ||||||||||
Cash used by discontinued operations | — | (38 | ) | |||||||||||
Cash provided by discontinued operations | 8 | 249 | ||||||||||||
Net Cash Provided by Operating Activities | 524 | 74 | 389 | 513 | ||||||||||
Cash Flows from Investing Activities | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (284 | ) | (16 | ) | ||||||||||
Payments for acquisitions of businesses | (21 | ) | (211 | ) | ||||||||||
Capital expenditures | (691 | ) | (542 | ) | (107 | ) | (282 | ) | ||||||
Decrease in notes receivable | 4 | 8 | ||||||||||||
Purchases of emission allowances | (22 | ) | (30 | ) | ||||||||||
Proceeds from sale of emission allowances | 34 | 59 | ||||||||||||
Net proceeds from sale of emission allowances | (1 | ) | 3 | |||||||||||
Investments in nuclear decommissioning trust fund securities | (346 | ) | (279 | ) | (209 | ) | (346 | ) | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 303 | 277 | 191 | 303 | ||||||||||
Proceeds from renewable energy grants and state rebates | — | 8 | ||||||||||||
Proceeds from sale of assets, net of cash disposed of | 18 | 35 | ||||||||||||
Deconsolidation of business | (160 | ) | — | |||||||||||
Changes in investments in unconsolidated affiliates | (2 | ) | (30 | ) | ||||||||||
Other | — | 18 | ||||||||||||
Cash used by continuing operations | (1,146 | ) | (492 | ) | ||||||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 1,289 | 146 | ||||||||||||
Deconsolidation of Ivanpah project | — | (160 | ) | |||||||||||
Net distributions from investments in unconsolidated affiliates | 7 | (15 | ) | |||||||||||
Contributions to discontinued operations | (44 | ) | (16 | ) | ||||||||||
Cash provided/(used) by continuing operations | 1,105 | (578 | ) | |||||||||||
Cash used by discontinued operations | — | (53 | ) | (2 | ) | (584 | ) | |||||||
Net Cash Used by Investing Activities | (1,146 | ) | (545 | ) | ||||||||||
Net Cash Provided/(Used) by Investing Activities | 1,103 | (1,162 | ) | |||||||||||
Cash Flows from Financing Activities | ||||||||||||||
Payment of dividends to common and preferred stockholders | (19 | ) | (19 | ) | ||||||||||
Payment for treasury stock | (500 | ) | — | |||||||||||
Net receipts from settlement of acquired derivatives that include financing elements | — | 2 | ||||||||||||
Proceeds from issuance of long-term debt | 1,605 | 946 | ||||||||||||
Payments of dividends to common stockholders | (16 | ) | (19 | ) | ||||||||||
Payments for treasury stock | (1,039 | ) | (500 | ) | ||||||||||
Payments for debt extinguishment costs | (24 | ) | — | |||||||||||
Distributions to noncontrolling interests from subsidiaries | (1 | ) | (14 | ) | ||||||||||
Proceeds from issuance of common stock | 2 | 11 | ||||||||||||
Proceeds from issuance of short and long-term debt | 1,833 | 994 | ||||||||||||
Payment of debt issuance costs | (33 | ) | (19 | ) | ||||||||||
Payments for short and long-term debt | (848 | ) | (530 | ) | (2,485 | ) | (348 | ) | ||||||
Increase in notes receivable from affiliate | — | (125 | ) | |||||||||||
Net contributions from noncontrolling interests in subsidiaries | 222 | 14 | ||||||||||||
Payment of debt issuance costs | (37 | ) | (36 | ) | ||||||||||
Other - contingent consideration | — | (10 | ) | |||||||||||
Cash provided by continuing operations | 423 | 242 | ||||||||||||
Cash used by discontinued operations | — | (224 | ) | |||||||||||
Net Cash Provided by Financing Activities | 423 | 18 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (8 | ) | |||||||||||
Cash (used)/provided by continuing operations | (1,763 | ) | 105 | |||||||||||
Cash provided by discontinued operations | 43 | 345 | ||||||||||||
Net Cash (Used)/Provided by Financing Activities | (1,720 | ) | 450 | |||||||||||
Change in Cash from discontinued operations | — | (315 | ) | 49 | 10 | |||||||||
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | (199 | ) | (146 | ) | (277 | ) | (209 | ) | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 1,536 | 1,386 | 613 | 1,086 | ||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 1,337 | $ | 1,240 | $ | 336 | $ | 877 |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss | Total Stock-holders' Equity | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Balance at December 31, 2018 | $ | 4 | $ | 8,510 | $ | (6,022 | ) | $ | (3,632 | ) | $ | (94 | ) | $ | (1,234 | ) | |||||||
Net income | 482 | 482 | |||||||||||||||||||||
Other comprehensive loss | (2 | ) | (2 | ) | |||||||||||||||||||
Share repurchases | (10 | ) | (739 | ) | (749 | ) | |||||||||||||||||
Equity-based compensation | (32 | ) | (32 | ) | |||||||||||||||||||
Issuance of common stock | 5 | 5 | |||||||||||||||||||||
Common stock dividends | (8 | ) | (8 | ) | |||||||||||||||||||
Balance at March 31, 2019 | $ | 4 | $ | 8,473 | $ | (5,548 | ) | $ | (4,371 | ) | $ | (96 | ) | $ | (1,538 | ) | |||||||
Net income | 201 | 201 | |||||||||||||||||||||
Other comprehensive loss | (3 | ) | (3 | ) | |||||||||||||||||||
Share repurchases | 10 | (315 | ) | (305 | ) | ||||||||||||||||||
Equity-based compensation | 5 | 5 | |||||||||||||||||||||
Common stock dividends | (8 | ) | (8 | ) | |||||||||||||||||||
Balance at June 30, 2019 | $ | 4 | $ | 8,488 | $ | (5,355 | ) | $ | (4,686 | ) | $ | (99 | ) | $ | (1,648 | ) |
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss | Noncon- trolling Interest | Total Stock-holders' Equity | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||
Balance at December 31, 2017 | $ | 4 | $ | 8,376 | $ | (6,268 | ) | $ | (2,386 | ) | $ | (72 | ) | $ | 2,314 | $ | 1,968 | ||||||||||
Net income/(loss) | 279 | (30 | ) | 249 | |||||||||||||||||||||||
Other comprehensive income | 11 | 11 | |||||||||||||||||||||||||
Sale of assets to NRG Yield, Inc. | 8 | 4 | 12 | ||||||||||||||||||||||||
ESPP share purchases | (2 | ) | 5 | 3 | |||||||||||||||||||||||
Share repurchases | (93 | ) | (93 | ) | |||||||||||||||||||||||
Equity-based compensation | (10 | ) | (10 | ) | |||||||||||||||||||||||
Issuance of common stock | 7 | 7 | |||||||||||||||||||||||||
Common stock dividends | (10 | ) | (10 | ) | |||||||||||||||||||||||
Distributions to noncontrolling interests | (19 | ) | (19 | ) | |||||||||||||||||||||||
Dividends paid to NRG Yield, Inc. | (30 | ) | (30 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | 153 | 153 | |||||||||||||||||||||||||
Adoption of new accounting standards | 17 | 17 | |||||||||||||||||||||||||
Balance at March 31, 2018 | $ | 4 | $ | 8,379 | $ | (5,982 | ) | $ | (2,474 | ) | $ | (61 | ) | $ | 2,392 | $ | 2,258 | ||||||||||
Net income | 72 | 32 | 104 | ||||||||||||||||||||||||
Other comprehensive income | 1 | 1 | |||||||||||||||||||||||||
Sale of assets to NRG Yield, Inc. | (2 | ) | (2 | ) | |||||||||||||||||||||||
ESPP share purchases | (1 | ) | (1 | ) | |||||||||||||||||||||||
Share repurchases | (11 | ) | (396 | ) | (407 | ) | |||||||||||||||||||||
Equity-based compensation | 8 | 8 | |||||||||||||||||||||||||
Issuance of common stock | 4 | 4 | |||||||||||||||||||||||||
Common stock dividends | (9 | ) | (9 | ) | |||||||||||||||||||||||
Distributions to noncontrolling interests | (15 | ) | (15 | ) | |||||||||||||||||||||||
Dividends paid to NRG Yield, Inc. | (31 | ) | (31 | ) | |||||||||||||||||||||||
Contributions from noncontrolling interests | 150 | 150 | |||||||||||||||||||||||||
Adoption of new accounting standards | (1 | ) | (1 | ) | |||||||||||||||||||||||
Deconsolidation of Business | (89 | ) | (89 | ) | |||||||||||||||||||||||
Equity component of convertible senior notes | 101 | 101 | |||||||||||||||||||||||||
Balance at June 30, 2018 | $ | 4 | $ | 8,481 | $ | (5,920 | ) | $ | (2,871 | ) | $ | (60 | ) | $ | 2,437 | $ | 2,071 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | |||||||||||||||
Income from continuing operations, net of income tax | $ | 188 | $ | 27 | $ | 282 | $ | 272 | |||||||
Income from discontinued operations, net of income tax | 13 | 45 | 401 | 79 | |||||||||||
Net income attributable to NRG Energy, Inc. | $ | 201 | $ | 72 | $ | 683 | $ | 351 |
June 30, 2019 | December 31, 2018 | ||||||
(In millions) | |||||||
Accounts receivable allowance for doubtful accounts | $ | 28 | $ | 32 | |||
Property, plant and equipment accumulated depreciation | 1,684 | 1,811 | |||||
Intangible assets accumulated amortization | 1,182 | 1,149 | |||||
Out-of-market contracts accumulated amortization | — | 37 |
June 30, 2018 | December 31, 2017 | ||||||
(In millions) | |||||||
Accounts receivable allowance for doubtful accounts | $ | 28 | $ | 28 | |||
Property, plant and equipment accumulated depreciation | 4,534 | 4,465 | |||||
Intangible assets accumulated amortization | 1,443 | 1,818 | |||||
Out-of-market contracts accumulated amortization | 370 | 358 |
June 30, 2019 | December 31, 2018 | ||||||
(In millions) | |||||||
Cash and cash equivalents | $ | 294 | $ | 563 | |||
Funds deposited by counterparties | 31 | 33 | |||||
Restricted cash | 11 | 17 | |||||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ | 336 | $ | 613 |
June 30, 2018 | December 31, 2017 | June 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Cash and cash equivalents | $ | 980 | $ | 991 | $ | 752 | $ | 938 | |||||||
Funds deposited by counterparties | 71 | 37 | 19 | 2 | |||||||||||
Restricted cash | 286 | 508 | 469 | 446 | |||||||||||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ | 1,337 | $ | 1,536 | $ | 1,240 | $ | 1,386 |
(In millions) | |||
Balance as of December 31, 2017 | $ | 2,314 | |
Dividends paid to NRG Yield, Inc. public shareholders | (61 | ) | |
Distributions to noncontrolling interest | (34 | ) | |
Comprehensive income attributable to noncontrolling interest | 12 | ||
Non-cash adjustments to noncontrolling interest | 8 | ||
Contributions from noncontrolling interest | 295 | ||
Sale of assets to NRG Yield, Inc. | (8 | ) | |
Deconsolidation of Ivanpah(a) | (89 | ) | |
Balance as of June 30, 2018 | $ | 2,437 |
(In millions) | |||
Balance as of December 31, 2017 | $ | 78 | |
Distributions to redeemable noncontrolling interest | (2 | ) | |
Contributions from redeemable noncontrolling interest | 26 | ||
Non-cash adjustments to redeemable noncontrolling interest | (9 | ) | |
Comprehensive loss attributable to redeemable noncontrolling interest | (24 | ) | |
Balance as of June 30, 2018 | $ | 69 |
Three months ended June 30, 2018 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | |||||||||||||||||||||||
Energy revenue(a)(b) | $ | — | $ | 508 | $ | 144 | $ | 652 | $ | 79 | $ | 192 | $ | (250 | ) | $ | 673 | ||||||||||||||
Capacity revenue(a)(b) | — | 68 | 160 | 228 | — | 87 | (2 | ) | 313 | ||||||||||||||||||||||
Retail revenue | |||||||||||||||||||||||||||||||
Mass customers | 1,380 | — | — | — | — | — | (1 | ) | 1,379 | ||||||||||||||||||||||
Business solutions customers | 437 | — | — | — | — | — | — | 437 | |||||||||||||||||||||||
Total retail revenue | 1,817 | — | — | — | — | — | (1 | ) | 1,816 | ||||||||||||||||||||||
Mark-to-market for economic hedging activities(c) | — | 289 | (15 | ) | 274 | 5 | — | (264 | ) | 15 | |||||||||||||||||||||
Contract amortization | — | 4 | — | 4 | — | (18 | ) | — | (14 | ) | |||||||||||||||||||||
Other revenue(a)(b) | — | 42 | 18 | 60 | 29 | 46 | (16 | ) | 119 | ||||||||||||||||||||||
Total operating revenue | 1,817 | 911 | 307 | 1,218 | 113 | 307 | (533 | ) | 2,922 | ||||||||||||||||||||||
Less: Lease revenue | 6 | — | 1 | 1 | 96 | 267 | — | 370 | |||||||||||||||||||||||
Less: Derivative revenue | — | 898 | (1 | ) | 897 | 5 | — | (264 | ) | 638 | |||||||||||||||||||||
Less: Contract amortization | — | 4 | — | 4 | — | (18 | ) | — | (14 | ) | |||||||||||||||||||||
Total revenue from contracts with customers | $ | 1,811 | $ | 9 | $ | 307 | $ | 316 | $ | 12 | $ | 58 | $ | (269 | ) | $ | 1,928 | ||||||||||||||
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 840: | |||||||||||||||||||||||||||||||
Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | ||||||||||||||||||||||||
Energy revenue | $ | — | $ | — | $ | — | $ | — | $ | 90 | $ | 182 | $ | — | $ | 272 | |||||||||||||||
Capacity revenue | — | — | — | — | — | 85 | — | 85 | |||||||||||||||||||||||
Other revenue | 6 | — | 1 | 1 | 6 | — | — | 13 | |||||||||||||||||||||||
(b) The following amounts of energy and capacity revenue relate to derivative instruments and are accounted for under ASC 815. | |||||||||||||||||||||||||||||||
Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | ||||||||||||||||||||||||
Energy revenue | $ | — | $ | 610 | $ | (30 | ) | $ | 580 | $ | — | $ | — | $ | — | $ | 580 | ||||||||||||||
Capacity revenue | — | — | 39 | 39 | — | — | — | 39 | |||||||||||||||||||||||
Other revenue | — | (1 | ) | 5 | 4 | — | — | — | 4 | ||||||||||||||||||||||
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815. |
Three months ended June 30, 2019 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
(In millions) | Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue(a)(c) | $ | — | $ | 497 | $ | 117 | $ | 614 | $ | (365 | ) | $ | 249 | ||||||||||
Capacity revenue(c) | — | — | 154 | 154 | 1 | 155 | |||||||||||||||||
Retail revenue | |||||||||||||||||||||||
Mass customers | 1,401 | — | — | — | (1 | ) | 1,400 | ||||||||||||||||
Business Solutions customers | 345 | — | — | — | — | 345 | |||||||||||||||||
Total retail revenue | 1,746 | — | — | — | (1 | ) | 1,745 | ||||||||||||||||
Mark-to-market for economic hedging activities(a)(b) | 2 | 460 | 64 | 524 | (285 | ) | 241 | ||||||||||||||||
Other revenues(c) | — | 16 | 59 | 75 | — | 75 | |||||||||||||||||
Total operating revenue | 1,748 | 973 | 394 | 1,367 | (650 | ) | 2,465 | ||||||||||||||||
Less: Lease revenue | 3 | — | 2 | 2 | — | 5 | |||||||||||||||||
Less: Realized and unrealized ASC 815 revenue(a) | 2 | 1,184 | 140 | 1,324 | (649 | ) | 677 | ||||||||||||||||
Total revenue from contracts with customers | $ | 1,743 | $ | (211 | ) | $ | 252 | $ | 41 | $ | (1 | ) | $ | 1,783 | |||||||||
(a) Generation includes higher revenues due to the Company's large internal transfer of power based on average annualized market prices, which are offset by higher | |||||||||||||||||||||||
cost of operations within Retail | |||||||||||||||||||||||
(b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 | |||||||||||||||||||||||
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 which are included in the amounts above: | |||||||||||||||||||||||
Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | ||||||||||||||||||
Energy revenue | $ | — | $ | 717 | $ | 42 | $ | 759 | $ | (365 | ) | $ | 394 | ||||||||||
Capacity revenue | — | — | 29 | 29 | 1 | 30 | |||||||||||||||||
Other revenue | — | 7 | 5 | 12 | — | 12 |
Six months ended June 30, 2018 | Three months ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Generation | Generation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Energy revenue | $ | — | $ | 879 | $ | 362 | $ | 1,241 | $ | 156 | $ | 306 | $ | (411 | ) | $ | 1,292 | $ | — | $ | 402 | $ | 259 | $ | 661 | $ | (251 | ) | $ | 410 | ||||||||||||||||||||||||
Capacity revenue | — | 135 | 300 | 435 | — | 169 | (3 | ) | 601 | — | — | 165 | 165 | — | 165 | |||||||||||||||||||||||||||||||||||||||
Retail revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mass customers | 2,551 | — | — | — | — | — | (2 | ) | 2,549 | 1,377 | — | — | — | (1 | ) | 1,376 | ||||||||||||||||||||||||||||||||||||||
Business solutions customers | 753 | — | — | — | — | — | — | 753 | ||||||||||||||||||||||||||||||||||||||||||||||
Business Solutions customers | 437 | — | — | — | — | 437 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total retail revenue | 3,304 | — | — | — | — | — | (2 | ) | 3,302 | 1,814 | — | — | — | (1 | ) | 1,813 | ||||||||||||||||||||||||||||||||||||||
Mark-to-market for economic hedging activities | (6 | ) | (275 | ) | (25 | ) | (300 | ) | (5 | ) | — | 220 | (91 | ) | — | 296 | (22 | ) | 274 | (264 | ) | 10 | ||||||||||||||||||||||||||||||||
Contract amortization | — | 7 | — | 7 | — | (35 | ) | — | (28 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other revenue(a)(b) | — | 128 | 34 | 162 | 48 | 92 | (35 | ) | 267 | |||||||||||||||||||||||||||||||||||||||||||||
Other revenues(c) | — | 10 | 57 | 67 | (4 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||||
Total operating revenue | 3,298 | 874 | 671 | 1,545 | 199 | 532 | (231 | ) | 5,343 | 1,814 | 708 | 459 | 1,167 | (520 | ) | 2,461 | ||||||||||||||||||||||||||||||||||||||
Less: Lease revenue | 12 | — | 2 | 2 | 160 | 448 | — | 622 | 3 | — | 2 | 2 | — | 5 | ||||||||||||||||||||||||||||||||||||||||
Less: Derivative revenue | (6 | ) | 710 | 79 | 789 | (5 | ) | — | 220 | 998 | ||||||||||||||||||||||||||||||||||||||||||||
Less: Contract amortization | — | 7 | — | 7 | — | (35 | ) | — | (28 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Less: Realized and unrealized ASC 815 revenue(a) | — | 865 | 48 | 913 | (511 | ) | 402 | |||||||||||||||||||||||||||||||||||||||||||||||
Total revenue from contracts with customers | $ | 3,292 | $ | 157 | $ | 590 | $ | 747 | $ | 44 | $ | 119 | $ | (451 | ) | $ | 3,751 | $ | 1,811 | $ | (157 | ) | $ | 409 | $ | 252 | $ | (9 | ) | $ | 2,054 | |||||||||||||||||||||||
(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 840: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Generation includes higher revenues due to the Company's large internal transfer of power based on average annualized market prices, which are offset by higher | (a) Generation includes higher revenues due to the Company's large internal transfer of power based on average annualized market prices, which are offset by higher | |||||||||||||||||||||||||||||||||||||||||||||||||||||
cost of operations within Retail | cost of operations within Retail | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 | (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 which are included in the amounts above: | (c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 which are included in the amounts above: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||
Energy revenue | $ | — | $ | — | $ | — | $ | — | $ | 151 | $ | 284 | $ | — | $ | 435 | $ | — | $ | 569 | $ | 26 | $ | 595 | $ | (247 | ) | $ | 348 | |||||||||||||||||||||||||
Capacity revenue | — | — | — | — | — | 164 | — | 164 | — | — | 39 | 39 | — | 39 | ||||||||||||||||||||||||||||||||||||||||
Other revenue | 12 | — | 2 | 2 | 9 | — | — | 23 | — | — | 5 | 5 | — | 5 | ||||||||||||||||||||||||||||||||||||||||
(b) The following amounts of energy and capacity revenue relate to derivative instruments and are accounted for under ASC 815. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail | Gulf Coast | East/West | Subtotal | Renewables | NRG Yield | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Energy revenue | $ | — | $ | 981 | $ | 31 | $ | 1,012 | $ | — | $ | — | $ | — | $ | 1,012 | ||||||||||||||||||||||||||||||||||||||
Capacity revenue | — | — | 65 | 65 | — | — | — | 65 | ||||||||||||||||||||||||||||||||||||||||||||||
Other revenue | — | 4 | 8 | 12 | — | — | — | 12 | ||||||||||||||||||||||||||||||||||||||||||||||
(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815. |
Six months ended June 30, 2019 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
(In millions) | Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue(a)(c) | $ | — | $ | 855 | $ | 341 | $ | 1,196 | $ | (641 | ) | $ | 555 | ||||||||||
Capacity revenue(c) | — | — | 309 | 309 | — | 309 | |||||||||||||||||
Retail revenue | |||||||||||||||||||||||
Mass customers | 2,722 | — | — | — | (2 | ) | 2,720 | ||||||||||||||||
Business Solutions customers | 631 | — | — | — | — | 631 | |||||||||||||||||
Total retail revenue | 3,353 | — | — | — | (2 | ) | 3,351 | ||||||||||||||||
Mark-to-market for economic hedging activities(a)(b) | 2 | 473 | 56 | 529 | (270 | ) | 261 | ||||||||||||||||
Other revenues(c) | — | 45 | 111 | 156 | (2 | ) | 154 | ||||||||||||||||
Total operating revenue | 3,355 | 1,373 | 817 | 2,190 | (915 | ) | 4,630 | ||||||||||||||||
Less: Lease revenue | 6 | — | 4 | 4 | — | 10 | |||||||||||||||||
Less: Realized and unrealized ASC 815 revenue(a) | 2 | 1,730 | 237 | 1,967 | (911 | ) | 1,058 | ||||||||||||||||
Total revenue from contracts with customers | $ | 3,347 | $ | (357 | ) | $ | 576 | $ | 219 | $ | (4 | ) | $ | 3,562 | |||||||||
(a) Generation includes higher revenues due to the Company's large internal transfer of power based on average annualized market prices, which are offset by higher | |||||||||||||||||||||||
cost of operations within Retail | |||||||||||||||||||||||
(b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 | |||||||||||||||||||||||
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 which are included in the amounts above: | |||||||||||||||||||||||
Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | ||||||||||||||||||
Energy revenue | $ | — | $ | 1,242 | $ | 129 | $ | 1,371 | $ | (641 | ) | $ | 730 | ||||||||||
Capacity revenue | — | — | 48 | 48 | — | 48 | |||||||||||||||||
Other revenue | — | 15 | 4 | 19 | — | 19 |
Six months ended June 30, 2018 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
(In millions) | Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue(a)(c) | $ | — | $ | 666 | $ | 598 | $ | 1,264 | $ | (411 | ) | $ | 853 | ||||||||||
Capacity revenue(c) | — | — | 308 | 308 | (1 | ) | 307 | ||||||||||||||||
Retail revenue | |||||||||||||||||||||||
Mass customers | 2,553 | — | — | — | (2 | ) | 2,551 | ||||||||||||||||
Business Solutions customers | 747 | — | — | — | — | 747 | |||||||||||||||||
Total retail revenue | 3,300 | — | — | — | (2 | ) | 3,298 | ||||||||||||||||
Mark-to-market for economic hedging activities(a)(b) | (6 | ) | (273 | ) | (27 | ) | (300 | ) | 220 | (86 | ) | ||||||||||||
Other revenues(c) | — | 64 | 102 | 166 | (12 | ) | 154 | ||||||||||||||||
Total operating revenue | 3,294 | 457 | 981 | 1,438 | (206 | ) | 4,526 | ||||||||||||||||
Less: Lease revenue | 7 | — | 4 | 4 | — | 11 | |||||||||||||||||
Less: Realized and unrealized ASC 815 revenue(a) | (6 | ) | 714 | 132 | 846 | (184 | ) | 656 | |||||||||||||||
Total revenue from contracts with customers | $ | 3,293 | $ | (257 | ) | $ | 845 | $ | 588 | $ | (22 | ) | $ | 3,859 | |||||||||
(a) Generation includes higher revenues due to the Company's large internal transfer of power based on average annualized market prices, which are offset by higher | |||||||||||||||||||||||
cost of operations within Retail | |||||||||||||||||||||||
(b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 | |||||||||||||||||||||||
(c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 which are included in the amounts above: | |||||||||||||||||||||||
Retail | Texas | East/West/Other | Subtotal | Corporate/Eliminations | Total | ||||||||||||||||||
Energy revenue | $ | — | $ | 982 | $ | 86 | $ | 1,068 | $ | (404 | ) | $ | 664 | ||||||||||
Capacity revenue | — | — | 65 | 65 | — | 65 | |||||||||||||||||
Other revenue | — | 5 | 8 | 13 | — | 13 |
(In millions) | June 30, 2018 | June 30, 2019 | December 31, 2018 | ||||||||
Deferred customer acquisition costs | $ | 102 | $ | 123 | $ | 111 | |||||
Accounts receivable, net - Contracts with customers | 1,187 | 1,015 | 999 | ||||||||
Accounts receivable, net - Leases | 152 | ||||||||||
Accounts receivable, net - Derivative instruments | 32 | 43 | 20 | ||||||||
Accounts receivable, net - Affiliate | 4 | 5 | |||||||||
Total accounts receivable, net | $ | 1,371 | $ | 1,062 | $ | 1,024 | |||||
Unbilled revenues (included within Accounts receivable, net - Contracts with customers) | 445 | $ | 403 | $ | 392 | ||||||
Deferred revenues | 73 | ||||||||||
Deferred revenues(a) | 89 | 67 |
(In millions) | |||
Net current and non-current working capital | $ | 46 | |
Other intangible assets | 133 | ||
Goodwill | 34 | ||
XOOM Purchase Price | $ | 213 |
Three months ended | Six months ended | ||||||||||||||
(In millions) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Operating revenues | $ | — | $ | 107 | $ | 31 | $ | 209 | |||||||
Operating costs and expenses | — | (91 | ) | (23 | ) | (177 | ) | ||||||||
Gain from discontinued operations, net of tax | — | 16 | 8 | 32 | |||||||||||
Gain on disposal of discontinued operations, net of tax | 1 | — | 28 | — | |||||||||||
Gain from discontinued operations, including disposal, net of tax | $ | 1 | $ | 16 | $ | 36 | $ | 32 |
(In millions) | December 31, 2018 | |||
Cash and cash equivalents | $ | 89 | ||
Accounts receivable - trade, net | 49 | |||
Inventory | 35 | |||
Other current assets | 5 | |||
Current assets - discontinued operations | 178 | |||
Property, plant and equipment, net | 408 | |||
Other non-current assets | 1 | |||
Non-current assets - discontinued operations | 409 | |||
Accounts payable | 19 | |||
Other current liabilities | 5 | |||
Current liabilities - discontinued operations | 24 | |||
Out-of-market contracts, net | 50 | |||
Other non-current liabilities | 11 | |||
Non-current liabilities - discontinued operations | $ | 61 |
Three months ended | Six months ended | ||||||||||||||
(In millions) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Operating revenues | $ | — | $ | 368 | $ | 19 | $ | 628 | |||||||
Operating costs and expenses | — | (223 | ) | (9 | ) | (453 | ) | ||||||||
Other expenses | — | (65 | ) | (5 | ) | (123 | ) | ||||||||
Gain from operations of discontinued components, before tax | — | 80 | 5 | 52 | |||||||||||
Income tax expense/(benefit) | — | 2 | — | (5 | ) | ||||||||||
Gain from discontinued operations, net of tax | — | 78 | 5 | 57 | |||||||||||
Gain on disposal of discontinued operations, net of tax | (17 | ) | — | 331 | — | ||||||||||
Other Commitments, Indemnification and Fees | 27 | — | 27 | — | |||||||||||
Gain on disposal of discontinued operations, net of tax | 10 | — | 358 | — | |||||||||||
Gain from discontinued operations, including disposal, net of tax | $ | 10 | $ | 78 | $ | 363 | $ | 57 |
(In millions) | December 31, 2018 | |||
Restricted cash | $ | 4 | ||
Accounts receivable - trade, net | 10 | |||
Other current assets | 5 | |||
Current assets - discontinued operations | 19 | |||
Property, plant and equipment, net | 590 | |||
Intangible assets, net | 9 | |||
Other non-current assets | 4 | |||
Non-current assets - discontinued operations | 603 | |||
Current portion of long-term debt and capital leases | 20 | |||
Accounts payable | 27 | |||
Other current liabilities | 1 | |||
Current liabilities - discontinued operations | 48 | |||
Long-term debt and capital leases | 572 | |||
Other non-current liabilities | 2 | |||
Non-current liabilities - discontinued operations | $ | 574 |
Three months ended | Six months ended | ||||||||||||||
(In millions) | June 30, 2019 | June 30, 2018 | June 30, 2019 | June 30, 2018 | |||||||||||
Interest income - affiliate | $ | — | $ | 2 | $ | — | $ | 3 | |||||||
Pension and post-retirement liability assumption | — | 1 | — | 1 | |||||||||||
Advisory and consulting fees | — | (1 | ) | — | (2 | ) | |||||||||
Other | 2 | (27 | ) | 2 | (27 | ) | |||||||||
Gain/(loss) from discontinued operations, net of tax | $ | 2 | $ | (25 | ) | $ | 2 | $ | (25 | ) |
Three months ended June 30, 2018 | Period from April 1, 2017 through June 14, 2017 | Six months ended June 30, 2018 | Period from January 1, 2017 through June 14, 2017 | ||||||||||||
(In millions) | |||||||||||||||
Operating revenues | $ | — | $ | 265 | $ | — | $ | 646 | |||||||
Operating costs and expenses | — | (327 | ) | — | (700 | ) | |||||||||
Other expenses | — | (54 | ) | — | (98 | ) | |||||||||
Loss from operations of discontinued components, before tax | — | (116 | ) | — | (152 | ) | |||||||||
Income tax expense | — | 8 | — | 9 | |||||||||||
Loss from operations of discontinued components | — | (124 | ) | — | (161 | ) | |||||||||
Interest income - affiliate | 2 | 3 | 3 | 6 | |||||||||||
Loss from operations of discontinued components, net of tax | 2 | (121 | ) | 3 | (155 | ) | |||||||||
Pre-tax loss on deconsolidation | — | (208 | ) | — | (208 | ) | |||||||||
Settlement consideration and services credit | — | (289 | ) | — | (289 | ) | |||||||||
Pension and post-retirement liability assumption | 1 | (119 | ) | 1 | (119 | ) | |||||||||
Advisory and consulting fees | (1 | ) | (4 | ) | (2 | ) | (4 | ) | |||||||
Other | (27 | ) | — | (27 | ) | — | |||||||||
Loss on disposal of discontinued components, net of tax | (27 | ) | (620 | ) | (28 | ) | (620 | ) | |||||||
Loss from discontinued operations, net of tax | $ | (25 | ) | $ | (741 | ) | $ | (25 | ) | $ | (775 | ) | |||
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(In millions) | |||||||||||||||
Assets: | |||||||||||||||
Notes receivable | $ | 12 | $ | 8 | $ | 17 | $ | 14 | |||||||
Liabilities: | |||||||||||||||
Long-term debt, including current portion (a) | 5,951 | 6,422 | 6,591 | 6,697 |
As of June 30, 2018 | As of December 31, 2017 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
(In millions) | |||||||||||||||
Assets: | |||||||||||||||
Notes receivable (a) | $ | 21 | $ | 18 | $ | 16 | $ | 15 | |||||||
Liabilities: | |||||||||||||||
Long-term debt, including current portion (b) | 15,969 | 16,163 | 16,603 | 16,894 |
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||
(In millions) | |||||||||||||||
Long-term debt, including current portion | $ | 6,305 | $ | 117 | $ | 6,528 | $ | 169 |
As of June 30, 2018 | As of December 31, 2017 | ||||||||||||||
Level 2 | Level 3 | Level 2 | Level 3 | ||||||||||||
(In millions) | |||||||||||||||
Long-term debt, including current portion | $ | 9,586 | $ | 6,577 | $ | 8,934 | $ | 7,960 |
As of June 30, 2019 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Investments in securities (classified within other current and non-current assets) | $ | 38 | $ | — | $ | 19 | $ | 19 | |||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 25 | 25 | — | — | |||||||||||
U.S. government and federal agency obligations | 57 | 57 | — | — | |||||||||||
Federal agency mortgage-backed securities | 92 | — | 92 | — | |||||||||||
Commercial mortgage-backed securities | 29 | — | 29 | — | |||||||||||
Corporate debt securities | 102 | — | 102 | — | |||||||||||
Equity securities | 366 | 366 | — | — | |||||||||||
Foreign government fixed income securities | 4 | — | 4 | — | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | 1 | — | — | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 1,276 | 131 | 770 | 375 | |||||||||||
Measured using net asset value practical expedient: | |||||||||||||||
Equity securities — nuclear trust fund investments | 73 | ||||||||||||||
Equity securities | 9 | ||||||||||||||
Total assets | $ | 2,072 | $ | 580 | $ | 1,016 | $ | 394 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | 1,152 | $ | 245 | $ | 629 | $ | 278 | |||||||
Total liabilities | $ | 1,152 | $ | 245 | $ | 629 | $ | 278 |
As of June 30, 2018 | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Investments in securities (classified within other non-current assets) | $ | 22 | $ | 3 | $ | — | $ | 19 | |||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 25 | 25 | — | — | |||||||||||
U.S. government and federal agency obligations | 42 | 42 | — | — | |||||||||||
Federal agency mortgage-backed securities | 97 | — | 97 | — | |||||||||||
Commercial mortgage-backed securities | 16 | — | 16 | — | |||||||||||
Corporate debt securities | 101 | — | 101 | — | |||||||||||
Equity securities | 342 | 342 | — | — | |||||||||||
Foreign government fixed income securities | 6 | — | 6 | — | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | 1 | — | — | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 1,169 | 188 | 481 | 500 | |||||||||||
Interest rate contracts | 108 | — | 108 | — | |||||||||||
Measured using net asset value practical expedient: | |||||||||||||||
Equity securities — nuclear trust fund investments | 65 | ||||||||||||||
Total assets | $ | 1,994 | $ | 601 | $ | 809 | $ | 519 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | 971 | 236 | 388 | 347 | |||||||||||
Interest rate contracts | 23 | — | 23 | — | |||||||||||
Total liabilities | $ | 994 | $ | 236 | $ | 411 | $ | 347 |
As of December 31, 2018 | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Investments in securities (classified within other current and non-current assets) | $ | 39 | $ | 2 | $ | 18 | $ | 19 | |||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 19 | 19 | — | — | |||||||||||
U.S. government and federal agency obligations | 46 | 46 | — | — | |||||||||||
Federal agency mortgage-backed securities | 100 | — | 100 | — | |||||||||||
Commercial mortgage-backed securities | 22 | — | 22 | — | |||||||||||
Corporate debt securities | 96 | — | 96 | — | |||||||||||
Equity securities | 312 | 312 | — | — | |||||||||||
Foreign government fixed income securities | 4 | — | 4 | — | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | 1 | — | — | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 1,042 | 137 | 796 | 109 | |||||||||||
Interest rate contracts | 39 | — | 39 | — | |||||||||||
Measured using net asset value practical expedient: | |||||||||||||||
Equity securities — nuclear trust fund investments | 64 | ||||||||||||||
Equity securities | 8 | ||||||||||||||
Total assets | $ | 1,792 | $ | 517 | $ | 1,075 | $ | 128 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | 977 | $ | 224 | $ | 664 | $ | 89 | |||||||
Total liabilities | $ | 977 | $ | 224 | $ | 664 | $ | 89 |
As of December 31, 2017 | |||||||||||||||
Fair Value | |||||||||||||||
(In millions) | Total | Level 1 | Level 2 | Level 3 | |||||||||||
Investments in securities (classified within other non-current assets) | $ | 22 | $ | 3 | $ | — | $ | 19 | |||||||
Nuclear trust fund investments: | |||||||||||||||
Cash and cash equivalents | 47 | 45 | 2 | — | |||||||||||
U.S. government and federal agency obligations | 43 | 42 | 1 | — | |||||||||||
Federal agency mortgage-backed securities | 82 | — | 82 | — | |||||||||||
Commercial mortgage-backed securities | 14 | — | 14 | — | |||||||||||
Corporate debt securities | 99 | — | 99 | — | |||||||||||
Equity securities | 334 | 334 | — | — | |||||||||||
Foreign government fixed income securities | 5 | — | 5 | — | |||||||||||
Other trust fund investments: | |||||||||||||||
U.S. government and federal agency obligations | 1 | 1 | — | — | |||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | 745 | 191 | 509 | 45 | |||||||||||
Interest rate contracts | 53 | — | 53 | — | |||||||||||
Measured using net asset value practical expedient: | |||||||||||||||
Equity securities — nuclear trust fund investments | 68 | ||||||||||||||
Total assets | $ | 1,513 | $ | 616 | $ | 765 | $ | 64 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | 693 | 257 | 359 | 77 | |||||||||||
Interest rate contracts | 59 | — | 59 | — | |||||||||||
Total liabilities | $ | 752 | $ | 257 | $ | 418 | $ | 77 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Three months ended June 30, 2018 | Six months ended June 30, 2018 | ||||||||||||||||||||||
(In millions) | Debt Securities | Derivatives(a) | Total | Debt Securities | Derivatives(a) | Total | |||||||||||||||||
Beginning balance | $ | 19 | $ | (22 | ) | $ | (3 | ) | $ | 19 | $ | (32 | ) | $ | (13 | ) | |||||||
Contracts acquired in Xoom acquisition | — | 12 | 12 | — | 12 | 12 | |||||||||||||||||
Total losses — realized/unrealized: | |||||||||||||||||||||||
Included in earnings | — | (21 | ) | (21 | ) | — | (19 | ) | (19 | ) | |||||||||||||
Purchases | — | (4 | ) | (4 | ) | — | (3 | ) | (3 | ) | |||||||||||||
Transfers into Level 3 (b) | — | 193 | 193 | — | 197 | 197 | |||||||||||||||||
Transfers out of Level 3 (b) | — | (5 | ) | (5 | ) | — | (2 | ) | (2 | ) | |||||||||||||
Ending balance as of June 30, 2018 | $ | 19 | $ | 153 | $ | 172 | $ | 19 | $ | 153 | $ | 172 | |||||||||||
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, 2018 | — | 20 | 20 | — | 17 | 17 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Three months ended June 30, 2019 | Six months ended June 30, 2019 | ||||||||||||||||||||||
(In millions) | Debt Securities | Derivatives(a) | Total | Debt Securities | Derivatives(a) | Total | |||||||||||||||||
Beginning balance | $ | 18 | $ | (2 | ) | $ | 16 | $ | 19 | $ | 20 | $ | 39 | ||||||||||
Contracts added from acquisitions | — | (1 | ) | (1 | ) | — | (1 | ) | (1 | ) | |||||||||||||
Total gains/(losses) — realized/unrealized included in earnings | 1 | (17 | ) | (16 | ) | 1 | (27 | ) | (26 | ) | |||||||||||||
Cash received | — | — | — | (1 | ) | — | (1 | ) | |||||||||||||||
Purchases | — | (10 | ) | (10 | ) | — | (12 | ) | (12 | ) | |||||||||||||
Transfers into Level 3(b) | — | 113 | 113 | — | 130 | 130 | |||||||||||||||||
Transfers out of Level 3(b) | — | 14 | 14 | — | (13 | ) | (13 | ) | |||||||||||||||
Ending balance as of June 30, 2019 | $ | 19 | $ | 97 | $ | 116 | $ | 19 | $ | 97 | $ | 116 | |||||||||||
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, 2019 | $ | 1 | $ | (19 | ) | $ | (18 | ) | $ | 1 | $ | (31 | ) | $ | (30 | ) |
(a) | Consists of derivative assets and liabilities, |
(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 |
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 | Derivatives(a) | Total | Debt Securities | Derivatives(a) | Total | |||||||||||||||||
Beginning balance | $ | 18 | $ | (56 | ) | $ | (38 | ) | $ | 17 | $ | (68 | ) | $ | (51 | ) | |||||||
Total gains — realized/unrealized: | |||||||||||||||||||||||
Included in earnings | — | 40 | 40 | 1 | 46 | 47 | |||||||||||||||||
Included in nuclear decommissioning obligation | — | — | — | — | — | — | |||||||||||||||||
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 | $ | (11 | ) | $ | 7 | $ | 18 | $ | (11 | ) | $ | 7 | |||||||||
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 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
Three months ended June 30, 2018 | Six months ended June 30, 2018 | ||||||||||||||||||||||
(In millions) | Debt Securities | Derivatives(a) | Total | Debt Securities | Derivatives(a) | Total | |||||||||||||||||
Beginning balance | $ | 19 | $ | 5 | $ | 24 | $ | 19 | $ | (15 | ) | $ | 4 | ||||||||||
Contracts added in XOOM acquisition | — | 12 | 12 | — | 12 | 12 | |||||||||||||||||
Total (losses) — realized/unrealized included in earnings | — | (27 | ) | (27 | ) | — | (16 | ) | (16 | ) | |||||||||||||
Purchases | — | (4 | ) | (4 | ) | — | (3 | ) | (3 | ) | |||||||||||||
Transfers into Level 3(b) | — | 193 | 193 | — | 197 | 197 | |||||||||||||||||
Transfers out of Level 3(b) | — | (5 | ) | (5 | ) | — | (1 | ) | (1 | ) | |||||||||||||
Ending balance as of June 30, 2018 | $ | 19 | $ | 174 | $ | 193 | $ | 19 | $ | 174 | $ | 193 | |||||||||||
(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, 2018 | $ | — | $ | (27 | ) | $ | (27 | ) | $ | — | $ | (15 | ) | $ | (15 | ) |
(a) | Consists of derivative assets and liabilities, |
(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 |
Significant Unobservable Inputs | ||||||||||||||||||||||||||||||||||||||||||||||
June 30, 2018 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Input/Range | Fair Value | Input/Range | |||||||||||||||||||||||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||||||||||
Power Contracts | $ | 481 | $ | 330 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 6 | $ | 198 | $ | 35 | $ | 347 | $ | 261 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 4 | $ | 142 | $ | 25 | ||||||||||||||||||||||
FTRs | 19 | 17 | Discounted Cash Flow | Auction Prices (per MWh) | (48 | ) | 47 | — | 28 | 17 | Discounted Cash Flow | Auction Prices (per MWh) | (134 | ) | 52 | 0 | ||||||||||||||||||||||||||||||
$ | 500 | $ | 347 | $ | 375 | $ | 278 |
December 31, 2018 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 89 | $ | 75 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 1 | $ | 214 | $ | 31 | |||||||||||
FTRs | 20 | 14 | Discounted Cash Flow | Auction Prices (per MWh) | (90 | ) | 34 | 0 | |||||||||||||||
$ | 109 | $ | 89 |
Significant Unobservable Inputs | |||||||||||||||||||||||
December 31, 2017 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 34 | $ | 65 | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 10 | $ | 142 | $ | 33 | |||||||||||
FTRs | 11 | 12 | Discounted Cash Flow | Auction Prices (per MWh) | (28 | ) | 46 | — | |||||||||||||||
$ | 45 | $ | 77 |
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 | % | |
Financial institutions | ||
Total as of June 30, | 100 | % |
Net Exposure (a) (b) | ||
Category by Counterparty Credit Quality | (% of Total) | |
Investment grade | % | |
Total as of June 30, | 100 | % |
(a) | Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market |
(b) | The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain |
As of June 30, 2019 | As of December 31, 2018 | ||||||||||||||||||||||||||||
(In millions, except maturities) | 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 | $ | 25 | $ | — | $ | — | — | $ | 19 | $ | — | $ | — | — | |||||||||||||||
U.S. government and federal agency obligations | 57 | 4 | — | 12 | 46 | 1 | — | 12 | |||||||||||||||||||||
Federal agency mortgage-backed securities | 92 | 2 | — | 24 | 100 | 1 | 2 | 23 | |||||||||||||||||||||
Commercial mortgage-backed securities | 29 | 1 | 1 | 23 | 22 | — | 1 | 22 | |||||||||||||||||||||
Corporate debt securities | 102 | 5 | — | 11 | 96 | 1 | 2 | 11 | |||||||||||||||||||||
Equity securities | 439 | 291 | — | — | 376 | 231 | 1 | — | |||||||||||||||||||||
Foreign government fixed income securities | 4 | — | — | 8 | 4 | — | — | 9 | |||||||||||||||||||||
Total | $ | 748 | $ | 303 | $ | 1 | $ | 663 | $ | 234 | $ | 6 |
As of June 30, 2018 | As of December 31, 2017 | ||||||||||||||||||||||||||||
(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 | $ | 25 | $ | — | $ | — | — | $ | 47 | $ | — | $ | — | — | |||||||||||||||
U.S. government and federal agency obligations | 42 | 1 | — | 14 | 43 | 1 | — | 11 | |||||||||||||||||||||
Federal agency mortgage-backed securities | 97 | — | 3 | 23 | 82 | 1 | 1 | 23 | |||||||||||||||||||||
Commercial mortgage-backed securities | 16 | — | 1 | 22 | 14 | — | — | 20 | |||||||||||||||||||||
Corporate debt securities | 101 | 1 | 2 | 10 | 99 | 2 | 1 | 11 | |||||||||||||||||||||
Equity securities | 407 | 272 | — | — | 402 | 272 | — | — | |||||||||||||||||||||
Foreign government fixed income securities | 6 | — | — | 8 | 5 | — | — | 9 | |||||||||||||||||||||
Total | $ | 694 | $ | 274 | $ | 6 | $ | 692 | $ | 276 | $ | 2 |
Six months ended June 30, | |||||||
2019 | 2018 | ||||||
(In millions) | |||||||
Realized gains | $ | 5 | $ | 7 | |||
Realized losses | (5 | ) | (6 | ) | |||
Proceeds from sale of securities | 191 | 303 |
Six months ended June 30, | |||||||
2018 | 2017 | ||||||
(In millions) | |||||||
Realized gains | $ | 7 | $ | 3 | |||
Realized losses | 6 | 3 | |||||
Proceeds from sale of securities | $ | 303 | $ | 277 |
Total Volume | ||||||||
June 30, 2019 | December 31, 2018 | |||||||
Category | Units | (In millions) | ||||||
Emissions | Short Ton | 1 | (2 | ) | ||||
Renewable Energy Certificates | Certificates | 1 | 1 | |||||
Coal | Short Ton | 7 | 13 | |||||
Natural Gas | MMBtu | (238 | ) | (330 | ) | |||
Oil | Barrels | — | 1 | |||||
Power | MWh | 21 | 1 | |||||
Capacity | MW/Day | (1 | ) | (1 | ) | |||
Interest | Dollars | $ | — | $ | 1,000 |
Total Volume | ||||||||
June 30, 2018 | December 31, 2017 | |||||||
Category | Units | (In millions) | ||||||
Emissions | Short Ton | 2 | 1 | |||||
Coal | Short Ton | 12 | 21 | |||||
Natural Gas | MMBtu | (551 | ) | (17 | ) | |||
Power | MWh | 16 | 14 | |||||
Capacity | MW/Day | (1 | ) | (1 | ) | |||
Interest | Dollars | $ | 4,016 | $ | 3,876 | |||
Equity | Shares | — | 1 |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
June 30, 2019 | December 31, 2018 | June 30, 2019 | December 31, 2018 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives Not Designated as Cash Flow or Fair Value Hedges: | |||||||||||||||
Interest rate contracts current | $ | — | $ | 17 | $ | — | $ | — | |||||||
Interest rate contracts long-term | — | 22 | — | — | |||||||||||
Commodity contracts current | 850 | 747 | 778 | 673 | |||||||||||
Commodity contracts long-term | 426 | 295 | 374 | 304 | |||||||||||
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges | $ | 1,276 | $ | 1,081 | $ | 1,152 | $ | 977 |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
June 30, 2018 | December 31, 2017 | June 30, 2018 | December 31, 2017 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives Designated as Cash Flow or Fair Value Hedges: | |||||||||||||||
Interest rate contracts current | $ | 3 | $ | 1 | $ | 2 | $ | 5 | |||||||
Interest rate contracts long-term | 23 | 11 | 5 | 11 | |||||||||||
Total Derivatives Designated as Cash Flow or Fair Value Hedges | 26 | 12 | 7 | 16 | |||||||||||
Derivatives Not Designated as Cash Flow or Fair Value Hedges: | |||||||||||||||
Interest rate contracts current | 16 | 9 | 5 | 15 | |||||||||||
Interest rate contracts long-term | 66 | 32 | 11 | 28 | |||||||||||
Commodity contracts current | 832 | 616 | 702 | 535 | |||||||||||
Commodity contracts long-term | 337 | 129 | 269 | 158 | |||||||||||
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges | 1,251 | 786 | 987 | 736 | |||||||||||
Total Derivatives | $ | 1,277 | $ | 798 | $ | 994 | $ | 752 |
Gross Amounts Not Offset in the Statement of Financial Position | Gross Amounts Not Offset in the June 30, 2019 Balance Sheet | |||||||||||||||||||||||||||||||
Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | |||||||||||||||||||||||||
As of June 30, 2018 | (In millions) | |||||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||||
Commodity contracts: | ||||||||||||||||||||||||||||||||
Derivative assets | $ | 1,169 | $ | (817 | ) | $ | (50 | ) | $ | 302 | $ | 1,276 | $ | (1,029 | ) | $ | (10 | ) | $ | 237 | ||||||||||||
Derivative liabilities | (971 | ) | 817 | 98 | (56 | ) | (1,152 | ) | 1,029 | 58 | (65 | ) | ||||||||||||||||||||
Total commodity contracts | 198 | — | 48 | 246 | $ | 124 | $ | — | $ | 48 | $ | 172 | ||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||
Derivative assets | 108 | (3 | ) | — | 105 | |||||||||||||||||||||||||||
Derivative liabilities | (23 | ) | 3 | — | (20 | ) | ||||||||||||||||||||||||||
Total interest rate contracts | 85 | — | — | 85 | ||||||||||||||||||||||||||||
Total derivative instruments | $ | 283 | $ | — | $ | 48 | $ | 331 |
Gross Amounts Not Offset in the December 31, 2018 Balance Sheet | ||||||||||||||||
Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | |||||||||||||
(In millions) | ||||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 1,042 | $ | (778 | ) | $ | (31 | ) | $ | 233 | ||||||
Derivative liabilities | (977 | ) | 778 | 114 | (85 | ) | ||||||||||
Total commodity contracts | 65 | — | 83 | 148 | ||||||||||||
Interest rate contracts: | ||||||||||||||||
Derivative assets | 39 | — | — | 39 | ||||||||||||
Total interest rate contracts | 39 | — | — | 39 | ||||||||||||
Total derivative instruments | $ | 104 | $ | — | $ | 83 | $ | 187 |
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, 2017 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 745 | $ | (578 | ) | $ | (11 | ) | $ | 156 | ||||||
Derivative liabilities | (693 | ) | 578 | 73 | (42 | ) | ||||||||||
Total commodity contracts | 52 | — | 62 | 114 | ||||||||||||
Interest rate contracts: | ||||||||||||||||
Derivative assets | 53 | (3 | ) | — | 50 | |||||||||||
Derivative liabilities | (59 | ) | 3 | — | (56 | ) | ||||||||||
Total interest rate contracts | (6 | ) | — | — | (6 | ) | ||||||||||
Total derivative instruments | $ | 46 | $ | — | $ | 62 | $ | 108 |
Interest Rate Contracts | |||||||
Three months ended June 30, 2018 | Six months ended June 30, 2018 | ||||||
(In millions) | |||||||
Accumulated OCL beginning balance | $ | (31 | ) | $ | (54 | ) | |
Reclassified from accumulated OCL to income: | |||||||
Due to realization of previously deferred amounts | 3 | 7 | |||||
Mark-to-market of cash flow hedge accounting contracts | 5 | 24 | |||||
Accumulated OCL ending balance, net of $5 tax | $ | (23 | ) | $ | (23 | ) |
Interest Rate Contracts | |||||||||||||||
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
(In millions) | |||||||||||||||
Accumulated OCI beginning balance | $ | (31 | ) | $ | (61 | ) | $ | (54 | ) | $ | (66 | ) | |||
Reclassified from accumulated OCI to income: | |||||||||||||||
Due to realization of previously deferred amounts | 3 | 3 | 7 | 6 | |||||||||||
Mark-to-market of cash flow hedge accounting contracts | 5 | (9 | ) | 24 | (7 | ) | |||||||||
Accumulated OCI ending balance, net of $5, and $16 tax | $ | (23 | ) | $ | (67 | ) | $ | (23 | ) | $ | (67 | ) | |||
Losses expected to be realized from OCI during the next 12 months, net of $1 tax | $ | 8 | $ | 8 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Unrealized mark-to-market results | (In millions) | ||||||||||||||
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (3 | ) | $ | 22 | $ | (1 | ) | $ | 25 | |||||
Reversal of acquired (gain)/loss positions related to economic hedges | (1 | ) | 1 | (1 | ) | 1 | |||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (67 | ) | 36 | 127 | 15 | ||||||||||
Total unrealized mark-to-market (losses)/gains for economic hedging activities | (71 | ) | 59 | 125 | 41 | ||||||||||
Reversal of previously recognized unrealized gains on settled positions related to trading activity | (3 | ) | (4 | ) | (6 | ) | (19 | ) | |||||||
Net unrealized gains on open positions related to trading activity | 8 | 16 | 19 | 17 | |||||||||||
Total unrealized mark-to-market gains/(losses) for trading activity | 5 | 12 | 13 | (2 | ) | ||||||||||
Total unrealized (losses)/gains | $ | (66 | ) | $ | 71 | $ | 138 | $ | 39 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Unrealized mark-to-market results | (In millions) | ||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 11 | $ | (2 | ) | $ | 30 | $ | (1 | ) | |||||
Reversal of acquired loss/(gain) positions related to economic hedges | 1 | (1 | ) | (1 | ) | (1 | ) | ||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 9 | (73 | ) | 12 | 132 | ||||||||||
Total unrealized mark-to-market gains/(losses) for economic hedging activities | 21 | (76 | ) | 41 | 130 | ||||||||||
Reversal of previously recognized unrealized gains on settled positions related to trading activity | (1 | ) | (3 | ) | (7 | ) | (6 | ) | |||||||
Net unrealized gains on open positions related to trading activity | 13 | 8 | 26 | 19 | |||||||||||
Total unrealized mark-to-market gains for trading activity | 12 | 5 | 19 | 13 | |||||||||||
Total unrealized gains/(losses) | $ | 33 | $ | (71 | ) | $ | 60 | $ | 143 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||
Unrealized gains/(losses) included in operating revenues | $ | 20 | $ | 53 | $ | (78 | ) | $ | 157 | $ | 253 | $ | 15 | $ | 280 | $ | (73 | ) | ||||||||||||
Unrealized (losses)/gains included in cost of operations | (86 | ) | 18 | 216 | (118 | ) | (220 | ) | (86 | ) | (220 | ) | 216 | |||||||||||||||||
Total impact to statement of operations — energy commodities | $ | (66 | ) | $ | 71 | $ | 138 | $ | 39 | $ | 33 | $ | (71 | ) | $ | 60 | $ | 143 | ||||||||||||
Total impact to statement of operations — interest rate contracts | $ | 13 | $ | (24 | ) | $ | 61 | $ | (19 | ) | $ | (29 | ) | $ | 3 | $ | (38 | ) | $ | 15 |
2. | not reassess the lease classification for any leases that commenced prior to the January 1, 2019 implementation date, meaning that all commenced capital leases under Topic 840 will be classified as finance leases under Topic 842 and all commenced operating leases under Topic 840 will be classified as operating leases under Topic 842; |
3. | not reassess initial direct costs for any leases; |
4. | not reassess whether existing land easements, which were not previously accounted as leases under Topic 840, are or contain leases; and |
5. | not separate lease and non-lease components for all asset classes, except office space leases and generation facilities leases. |
(In millions) | Three months ended June 30, 2019 | Six months ended June 30, 2019 | |||||
Operating lease cost | 33 | 56 | |||||
Short-term lease cost | 1 | 1 | |||||
Variable lease cost | 2 | 3 | |||||
Sublease income | (5 | ) | (9 | ) | |||
Total lease cost | $ | 31 | $ | 51 |
(In millions) | Six months ended June 30, 2019 | ||
Cash paid for amounts included in the measurement of lease liabilities: | $ | 53 | |
Operating cash flows from operating leases | 53 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 214 |
Weighted-average remaining lease term | In Years |
Finance leases | 2.5 |
Operating leases | 8.1 |
Weighted-average discount rate | % |
Finance leases | 6.50 |
Operating leases | 5.73 |
(In millions) | |||
Remainder of 2019 | $ | 50 | |
2020 | 95 | ||
2021 | 85 | ||
2022 | 85 | ||
2023 | 86 | ||
Thereafter | 371 | ||
Total undiscounted lease payments | $ | 772 | |
Less: present value adjustment | (185 | ) | |
Total discounted lease payments | $ | 587 |
(In millions, except rates) | June 30, 2018 | December 31, 2017 | June 30, 2018 interest rate % (a) | ||||||
Recourse debt: | |||||||||
Senior Notes, due 2022 | $ | 977 | $ | 992 | 6.250 | ||||
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 | ||||||
Senior Notes, due 2028 | 841 | 870 | 5.750 | ||||||
Convertible Senior Notes, due 2048 | 575 | — | 2.750 | ||||||
Revolving loan facility, due 2018 and 2021 | 26 | — | L+1.75 | ||||||
Term loan facility, due 2023 | 1,862 | 1,872 | L+1.75 | ||||||
Tax-exempt bonds | 465 | 465 | 4.125 - 6.00 | ||||||
Subtotal recourse debt | 7,729 | 7,182 | |||||||
Non-recourse debt: | |||||||||
NRG Yield, Inc. Convertible Senior Notes, due 2019 | 345 | 345 | 3.500 | ||||||
NRG Yield, Inc. Convertible Senior Notes, due 2020 | 288 | 288 | 3.250 | ||||||
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 LLC and NRG Yield Operating LLC Revolving Credit Facility, due 2023(b) | — | 55 | L+1.75 | ||||||
El Segundo Energy Center, due 2023 | 369 | 400 | L+1.75 - L+2.375 | ||||||
Marsh Landing, due 2023 | 305 | 318 | L+2.125 | ||||||
Alta Wind I - V lease financing arrangements, due 2034 and 2035 | 901 | 926 | 5.696 - 7.015 | ||||||
Walnut Creek, term loans due 2023 | 254 | 267 | L+1.625 | ||||||
Utah Portfolio, due 2022 | 273 | 278 | various | ||||||
Tapestry, due 2021 | 155 | 162 | L+1.625 | ||||||
CVSR, due 2037 | 731 | 746 | 2.339 - 3.775 | ||||||
CVSR HoldCo, due 2037 | 188 | 194 | 4.680 | ||||||
Alpine, due 2022 | 133 | 135 | L+1.750 | ||||||
Energy Center Minneapolis, due 2031, 2033, 2035 and 2037 | 328 | 208 | various | ||||||
Viento, due 2023 | 154 | 163 | L+3.00 | ||||||
Buckthorn Solar, due 2018 and 2025 | 132 | 169 | L+1.750 | ||||||
NRG Yield - other | 564 | 579 | various | ||||||
Subtotal NRG Yield debt (non-recourse to NRG) (c) | 5,970 | 6,083 | |||||||
Ivanpah, due 2033 and 2038 (e) | — | 1,073 | 2.285 - 4.256 | ||||||
Carlsbad Energy Project (c) | 513 | 427 | L+1.625 - 4.120 | ||||||
Agua Caliente, due 2037 | 812 | 818 | 2.395 - 3.633 | ||||||
Agua Caliente Borrower 1, due 2038 | 86 | 89 | 5.430 | ||||||
Cedro Hill, due 2025 (c) | 144 | 151 | L+1.75 | ||||||
Midwest Generation, due 2019 | 108 | 152 | 4.390 | ||||||
NRG Other Renewables (c) | 623 | 478 | various | ||||||
NRG Other | 107 | 180 | various | ||||||
Subtotal other NRG non-recourse debt | 2,393 | 3,368 | |||||||
Subtotal all non-recourse debt | 8,363 | 9,451 | |||||||
Subtotal long-term debt (including current maturities) | 16,092 | 16,633 | |||||||
Capital leases | 3 | 5 | various | ||||||
Subtotal long-term debt and capital leases (including current maturities) | 16,095 | 16,638 | |||||||
Less current maturities(d) | (952 | ) | (688 | ) | |||||
Less debt issuance costs | (199 | ) | (204 | ) | |||||
Discounts | (123 | ) | (30 | ) | |||||
Total long-term debt and capital leases | $ | 14,821 | $ | 15,716 |
(In millions, except rates) | June 30, 2019 | December 31, 2018 | Interest rate % | ||||||
Recourse debt: | |||||||||
Senior Notes, due 2024 | $ | — | $ | 733 | 6.250 | ||||
Senior Notes, due 2026 | 1,000 | 1,000 | 7.250 | ||||||
Senior Notes, due 2027 | 1,230 | 1,230 | 6.625 | ||||||
Senior Notes, due 2028 | 821 | 821 | 5.750 | ||||||
Senior Notes, due 2029 | 733 | — | 5.250 | ||||||
Convertible Senior Notes, due 2048 | 575 | 575 | 2.750 | ||||||
Senior Secured First Lien Notes, due 2024 | 600 | — | 3.750 | ||||||
Senior Secured First Lien Notes, due 2029 | 500 | — | 4.450 | ||||||
Term Loan Facility (a) | — | 1,698 | L+1.75 | ||||||
Tax-exempt bonds | 466 | 466 | 4.125 - 6.00 | ||||||
Subtotal recourse debt | 5,925 | 6,523 | |||||||
Non-recourse debt: | |||||||||
Agua Caliente Borrower 1, due 2038 | 83 | 86 | 5.430 | ||||||
Midwest Generation | — | 48 | 4.390 | ||||||
Other | 34 | 34 | various | ||||||
Subtotal all non-recourse debt | 117 | 168 | |||||||
Subtotal long-term debt (including current maturities) | 6,042 | 6,691 | |||||||
Capital leases | 1 | 1 | various | ||||||
Subtotal long-term debt and capital leases (including current maturities) | 6,043 | 6,692 | |||||||
Less current maturities | (87 | ) | (72 | ) | |||||
Less debt issuance costs | (71 | ) | (70 | ) | |||||
Discounts | (91 | ) | (101 | ) | |||||
Total long-term debt and capital leases | $ | 5,794 | $ | 6,449 |
Principal Repurchased | Cash Paid (a) | Average Early Redemption Percentage | ||||||||
In millions, except rates | ||||||||||
5.750% senior notes due 2028 | $ | 29 | $ | 30 | 99.24 | % | ||||
6.250% senior notes due 2022 | 14 | 15 | 103.25 | % | ||||||
Total at June 30, 2018 | $ | 43 | $ | 45 | ||||||
6.250% senior notes due 2022 | 6 | 6 | 103.25 | % | ||||||
5.750% senior notes due 2028 | 20 | 21 | 99.13 | % | ||||||
6.625% senior notes due 2027 | 20 | 21 | 103.06 | % | ||||||
Total at August 2, 2018 | $ | 89 | $ | 93 |
Amount | Interest Rate | |||||
In millions, except rates | ||||||
Energy Center Minneapolis Series E Notes, due 2033 | $ | 70 | 4.80 | % | ||
Energy Center Minneapolis Series F Notes, due 2033 | 10 | 4.60 | % | |||
Energy Center Minneapolis Series G Notes, due 2035 | 83 | 5.90 | % | |||
Energy Center Minneapolis Series H Notes, due 2037 | 40 | 4.83 | % | |||
Total proceeds | $ | 203 | ||||
Repayment of Energy Center Minneapolis Series C Notes, due 2025 | (83 | ) | 5.95 | % | ||
Net borrowings | $ | 120 |
(In millions) | June 30, 2019 | December 31, 2018 | |||||
Current assets | $ | 3 | $ | 3 | |||
Net property, plant and equipment | 74 | 76 | |||||
Other long-term assets | 29 | 28 | |||||
Total assets | 106 | 107 | |||||
Current liabilities | 1 | 2 | |||||
Long-term debt | 28 | 29 | |||||
Other long-term liabilities | 8 | 7 | |||||
Total liabilities | 37 | 38 | |||||
Redeemable noncontrolling interest | 19 | 19 | |||||
Net assets less noncontrolling interests | $ | 50 | $ | 50 |
(In millions) | June 30, 2018 | December 31, 2017 | |||||
Current assets | $ | 191 | $ | 118 | |||
Net property, plant and equipment | 2,709 | 2,337 | |||||
Other long-term assets | 660 | 658 | |||||
Total assets | 3,560 | 3,113 | |||||
Current liabilities | 119 | 96 | |||||
Long-term debt | 814 | 661 | |||||
Other long-term liabilities | 211 | 209 | |||||
Total liabilities | 1,144 | 966 | |||||
Redeemable noncontrolling interest | 69 | 78 | |||||
Noncontrolling interest | 660 | 507 | |||||
Net assets less noncontrolling interest | $ | 1,687 | $ | 1,562 |
Issued | Treasury | Outstanding | ||||||
Balance as of December 31, 2018 | 420,288,886 | (136,638,847 | ) | 283,650,039 | ||||
Shares issued under LTIPs | 1,541,588 | — | 1,541,588 | |||||
Shares repurchased | — | (26,621,029 | ) | (26,621,029 | ) | |||
Balance as of June 30, 2019 | 421,830,474 | (163,259,876 | ) | 258,570,598 | ||||
Shares issued under LTIPs subsequent to June 30, 2019 | 3,827 | — | 3,827 | |||||
Shares repurchased subsequent to June 30, 2019 | — | (5,586,536 | ) | (5,586,536 | ) | |||
Balance as of August 7, 2019 | 421,834,301 | (168,846,412 | ) | 252,987,889 |
Issued | Treasury | Outstanding | ||||||
Balance as of December 31, 2017 | 418,323,134 | (101,580,045 | ) | 316,743,089 | ||||
Shares issued under LTIPs | 1,373,655 | — | 1,373,655 | |||||
Shares issued under ESPP | — | 175,862 | 175,862 | |||||
Shares repurchased | — | (14,863,301 | ) | (14,863,301 | ) | |||
Balance as of June 30, 2018 | 419,696,789 | (116,267,484 | ) | 303,429,305 |
Total number of shares purchased | Average price paid per share (a) | Amounts paid for shares purchased (in millions) (a) | ||||||||
Board Authorized Share Repurchases | ||||||||||
First Quarter 2018 | 3,114,748 | $ | 93 | |||||||
Second Quarter 2018 (b) | 11,748,553 | 407 | ||||||||
Total Board Authorized Share Repurchases as of June 30, 2018 | 14,863,301 | $ | 500 | |||||||
July 2018 | 860,880 | — | ||||||||
Total Board Authorized Share Repurchases as of August 2, 2018 | 15,724,181 | $ | 31.80 | $ | 500 |
Total number of shares purchased | Amounts paid for shares purchased (in millions) | |||||
Board Authorized Share Repurchases | ||||||
2018 program: | ||||||
Repurchases made during January-February to complete the 2018 program | 6,153,415 | $ | 250 | |||
2019 program: | ||||||
Shares repurchased under February 28, 2019 Accelerated Share Repurchase Agreement | 9,438,671 | 400 | ||||
Other repurchases | 11,028,943 | 404 | ||||
Total Share Repurchases during the six months ended June 30, 2019 | 26,621,029 | $ | 1,054 | |||
Repurchases made subsequent to June 30, 2019 to complete the 2019 program | 5,586,536 | $ | 196 | |||
Total Share Repurchases during the period ended August 7, 2019 | 32,207,565 | $ | 1,250 |
Second Quarter 2018 | First Quarter 2018 | ||||||
Dividends per Common Share | $ | 0.03 | $ | 0.03 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
In millions, except per share data | 2018 | 2017 | 2018 | 2017 | |||||||||||
Basic income/(loss) per share attributable to NRG Energy, Inc. common stockholders | |||||||||||||||
Net income/(loss) attributable to NRG Energy, Inc. | $ | 72 | $ | (626 | ) | $ | 351 | $ | (790 | ) | |||||
Weighted average number of common shares outstanding - basic | 310 | 316 | 314 | 316 | |||||||||||
Earnings/(loss) per weighted average common share — basic | $ | 0.23 | $ | (1.98 | ) | $ | 1.12 | $ | (2.50 | ) | |||||
Diluted income/(loss) per share attributable to NRG Energy, Inc. common stockholders | |||||||||||||||
Weighted average number of common shares outstanding - diluted | 310 | 316 | 314 | 316 | |||||||||||
Incremental shares attributable to the issuance of equity compensation (treasury stock method) | 4 | — | 4 | — | |||||||||||
Total dilutive shares | 314 | 316 | 318 | 316 | |||||||||||
Earnings/(loss) per weighted average common share — diluted | $ | 0.23 | $ | (1.98 | ) | $ | 1.10 | $ | (2.50 | ) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
In millions, except per share data | 2019 | 2018 | 2019 | 2018 | |||||||||||
Basic income per share attributable to NRG Energy, Inc; | |||||||||||||||
Net income attributable to NRG Energy, Inc. common stockholders | $ | 201 | $ | 72 | $ | 683 | $ | 351 | |||||||
Weighted average number of common shares outstanding - basic | 265 | 310 | 272 | 314 | |||||||||||
Income per weighted average common share — basic | $ | 0.76 | $ | 0.23 | $ | 2.51 | $ | 1.12 | |||||||
Diluted income per share attributable to NRG Energy, Inc; | |||||||||||||||
Net income attributable to NRG Energy, Inc. available to common shareholders | $ | 201 | $ | 72 | $ | 683 | 351 | ||||||||
Weighted average number of common shares outstanding - basic | 265 | 310 | 272 | 314 | |||||||||||
Incremental shares attributable to the issuance of equity compensation (treasury stock method) | 2 | 4 | 2 | 4 | |||||||||||
Weighted average number of common shares outstanding - dilutive | 267 | 314 | 274 | 318 | |||||||||||
Income per weighted average common share — diluted | $ | 0.75 | $ | 0.23 | $ | 2.49 | $ | 1.10 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
In millions of shares | 2019 | 2018 | 2019 | 2018 | |||||||
Equity compensation plans | — | — | — | 1 |
Three months ended June 30, | Six months ended June 30, | ||||||||||
In millions of shares | 2018 | 2017 | 2018 | 2017 | |||||||
Equity compensation plans | — | 6 | 1 | 6 | |||||||
Total | — | 6 | 1 | 6 |
Retail(a) | Generation(a) | Renewables(a) | NRG Yield | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Three months ended June 30, 2018 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 1,817 | $ | 1,218 | $ | 113 | $ | 307 | $ | 7 | $ | (540 | ) | $ | 2,922 | ||||||||||||
Depreciation and amortization | 31 | 66 | 40 | 82 | 8 | — | 227 | ||||||||||||||||||||
Impairment losses | — | 74 | — | — | — | — | 74 | ||||||||||||||||||||
Reorganization costs | 1 | 3 | 3 | — | 16 | — | 23 | ||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | — | 5 | 29 | — | (16 | ) | 18 | |||||||||||||||||||
(Loss)/income from continuing operations before income taxes | (84 | ) | 273 | (17 | ) | 103 | (134 | ) | (12 | ) | 129 | ||||||||||||||||
(Loss)/income from continuing operations | (84 | ) | 272 | (12 | ) | 96 | (139 | ) | (12 | ) | 121 | ||||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (25 | ) | — | (25 | ) | ||||||||||||||||||
Net (Loss)/Income | (84 | ) | 272 | (12 | ) | 96 | (164 | ) | (12 | ) | 96 | ||||||||||||||||
(Loss)/Income attributable to NRG Energy, Inc. | $ | (88 | ) | $ | 272 | $ | (35 | ) | $ | 73 | $ | (244 | ) | $ | 94 | $ | 72 | ||||||||||
Total assets as of June 30, 2018 | $ | 7,217 | $ | 4,306 | $ | 4,117 | $ | 8,448 | $ | 9,675 | $ | (10,816 | ) | $ | 22,947 |
Three months ended June 30, 2019(a) | |||||||||||||||||||
Retail | Generation | Corporate | Eliminations | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating revenues(b) | $ | 1,748 | $ | 1,367 | $ | — | $ | (650 | ) | $ | 2,465 | ||||||||
Depreciation and amortization | 32 | 45 | 8 | — | 85 | ||||||||||||||
Impairment losses | 1 | — | — | — | 1 | ||||||||||||||
Reorganization costs | 2 | — | — | — | 2 | ||||||||||||||
Gain on sale of assets | — | — | 1 | — | 1 | ||||||||||||||
Loss on debt extinguishment, net | — | — | (47 | ) | — | (47 | ) | ||||||||||||
(Loss)/income from continuing operations before income taxes | (280 | ) | 618 | (151 | ) | 1 | 188 | ||||||||||||
(Loss)/income from continuing operations | (280 | ) | 618 | (150 | ) | 1 | 189 | ||||||||||||
Income from discontinued operations, net of tax | — | — | 13 | — | 13 | ||||||||||||||
Net (loss)/income | (280 | ) | 618 | (137 | ) | 1 | 202 | ||||||||||||
Net (loss)/income attributable to NRG Energy, Inc. | $ | (281 | ) | $ | 618 | $ | (137 | ) | $ | 1 | $ | 201 |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 2 | $ | 546 | $ | 9 | $ | — | $ | (17 | ) | $ | — | $ | 540 |
Retail(a) | Generation(a) | Renewables(a) | NRG Yield | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Three months ended June 30, 2017 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 1,603 | $ | 882 | $ | 119 | $ | 288 | $ | 3 | $ | (194 | ) | $ | 2,701 | ||||||||||||
Depreciation and amortization | 29 | 95 | 49 | 79 | 8 | — | 260 | ||||||||||||||||||||
Impairment losses | — | 41 | 22 | — | — | — | 63 | ||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | — | (15 | ) | (2 | ) | 16 | 3 | (5 | ) | (3 | ) | ||||||||||||||||
Income/(loss) from continuing operations before income taxes | 330 | (89 | ) | (51 | ) | 52 | (134 | ) | (5 | ) | 103 | ||||||||||||||||
Income/(loss) from continuing operations | 341 | (90 | ) | (46 | ) | 44 | (145 | ) | (5 | ) | 99 | ||||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (741 | ) | — | (741 | ) | ||||||||||||||||||
Net Income/(Loss) | 341 | (90 | ) | (46 | ) | 44 | (886 | ) | (5 | ) | (642 | ) | |||||||||||||||
Net Income/(Loss) attributable to NRG Energy, Inc. | $ | 341 | $ | (90 | ) | $ | (21 | ) | $ | 38 | $ | (919 | ) | $ | 25 | $ | (626 | ) |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 1 | $ | 171 | $ | 3 | $ | — | $ | 19 | $ | — | $ | 194 |
(a) Includes intersegment revenues and costs associated with the internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation | |||||||||||||||||||
(b) Operating revenues include intersegment sales and net derivative gains and losses of: | $ | 2 | $ | 627 | $ | 21 | $ | — | $ | 650 |
Three months ended June 30, 2018(a) | |||||||||||||||||||
Retail | Generation | Corporate | Eliminations | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating revenues(b) | $ | 1,814 | $ | 1,167 | $ | — | $ | (520 | ) | $ | 2,461 | ||||||||
Depreciation and amortization | 30 | 74 | 9 | (1 | ) | 112 | |||||||||||||
Reorganization costs | 1 | 3 | 19 | — | 23 | ||||||||||||||
Equity in earnings of unconsolidated affiliates | — | 5 | 2 | (2 | ) | 5 | |||||||||||||
(Loss)/income from continuing operations before income taxes | (84 | ) | 252 | (137 | ) | 1 | 32 | ||||||||||||
(Loss)/income from continuing operations | (84 | ) | 252 | (142 | ) | 1 | 27 | ||||||||||||
Income from discontinued operations, net of tax | — | — | 69 | — | 69 | ||||||||||||||
Net (loss)/income | (84 | ) | 252 | (73 | ) | 1 | 96 | ||||||||||||
Net (loss)/income attributable to NRG Energy, Inc. | $ | (84 | ) | $ | 250 | $ | (97 | ) | $ | 3 | $ | 72 |
(a) Includes intersegment revenues and costs associated with our internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation | |||||||||||||||||||
(b) Operating revenues include intersegment sales and net derivative gains and losses of: | $ | 4 | $ | 514 | $ | 2 | $ | — | $ | 520 |
Retail(a) | Generation(a) | Renewables(a) | NRG Yield | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Six months ended June 30, 2018 | (In millions) | ||||||||||||||||||||||||||
Operating revenues(a) | $ | 3,298 | $ | 1,545 | $ | 199 | $ | 532 | $ | 9 | $ | (240 | ) | $ | 5,343 | ||||||||||||
Depreciation and amortization | 59 | 133 | 90 | 163 | 17 | — | 462 | ||||||||||||||||||||
Impairment losses | — | 74 | — | — | — | — | 74 | ||||||||||||||||||||
Reorganization costs | 4 | 7 | 3 | — | 29 | — | 43 | ||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | 2 | 5 | 33 | (1 | ) | (23 | ) | 16 | ||||||||||||||||||
Income/(Loss) from continuing operations before income taxes | 861 | (264 | ) | (56 | ) | 102 | (260 | ) | (22 | ) | 361 | ||||||||||||||||
Income/(Loss) from continuing operations | 861 | (265 | ) | (45 | ) | 96 | (271 | ) | (22 | ) | 354 | ||||||||||||||||
Income from discontinued operations, net of tax | — | — | — | — | (25 | ) | — | (25 | ) | ||||||||||||||||||
Net Income/(Loss) | 861 | (265 | ) | (45 | ) | 96 | (296 | ) | (22 | ) | 329 | ||||||||||||||||
Net Income/(Loss) attributable to NRG Energy, Inc. | $ | 851 | $ | (265 | ) | $ | (33 | ) | $ | 94 | $ | (392 | ) | $ | 96 | $ | 351 |
Six months ended June 30, 2019 (a) | |||||||||||||||||||
Retail | Generation | Corporate | Eliminations | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating revenues(b) | $ | 3,355 | $ | 2,190 | $ | — | $ | (915 | ) | $ | 4,630 | ||||||||
Depreciation and amortization | 63 | 91 | 16 | — | 170 | ||||||||||||||
Impairment losses | 1 | — | — | — | 1 | ||||||||||||||
Reorganization costs | 3 | 1 | 11 | — | 15 | ||||||||||||||
Gain on sale of assets | — | 1 | 1 | — | 2 | ||||||||||||||
Equity in losses of unconsolidated affiliates | — | (21 | ) | — | — | (21 | ) | ||||||||||||
Loss on debt extinguishment, net | — | — | (47 | ) | — | (47 | ) | ||||||||||||
(Loss)/income from continuing operations before income taxes | (169 | ) | 731 | (275 | ) | (1 | ) | 286 | |||||||||||
(Loss)/income from continuing operations | (170 | ) | 731 | (277 | ) | (1 | ) | 283 | |||||||||||
Income from discontinued operations, net of tax | — | — | 401 | — | 401 | ||||||||||||||
Net (loss)/income | (170 | ) | 731 | 124 | (1 | ) | 684 | ||||||||||||
Net (loss)/income attributable to NRG Energy, Inc. common stockholders | $ | (171 | ) | $ | 731 | $ | 124 | $ | (1 | ) | $ | 683 |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 3 | $ | 239 | $ | 17 | $ | — | $ | (19 | ) | $ | — | $ | 240 |
(a) Includes intersegment revenues and costs associated with our internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation | |||||||||||||||||||
(b) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 5 | $ | 862 | $ | 48 | $ | — | $ | 915 |
Retail (a) | Generation(a) | Renewables(a) | NRG Yield | Corporate(a) | Eliminations | Total | |||||||||||||||||||||
Six months ended June 30, 2017 | |||||||||||||||||||||||||||
Operating revenues(a) | $ | 2,938 | $ | 1,848 | $ | 213 | $ | 509 | $ | 11 | $ | (436 | ) | $ | 5,083 | ||||||||||||
Depreciation and amortization | 57 | 192 | 96 | 156 | 16 | — | 517 | ||||||||||||||||||||
Impairment losses | — | 41 | 22 | — | — | — | 63 | ||||||||||||||||||||
Equity in (losses)/earnings of unconsolidated affiliates | — | (28 | ) | (3 | ) | 35 | 7 | (9 | ) | 2 | |||||||||||||||||
Income/(loss) from continuing operations before income taxes | 303 | (52 | ) | (87 | ) | 49 | (275 | ) | (9 | ) | (71 | ) | |||||||||||||||
Income/(loss) from continuing operations | 311 | (54 | ) | (77 | ) | 42 | (283 | ) | (9 | ) | (70 | ) | |||||||||||||||
Loss from discontinued operations, net of tax | — | — | — | — | (775 | ) | — | (775 | ) | ||||||||||||||||||
Net Income/(loss) | 311 | (54 | ) | (77 | ) | 42 | (1,058 | ) | (9 | ) | (845 | ) | |||||||||||||||
Net Income/(loss) attributable to NRG Energy, Inc. | $ | 311 | $ | (54 | ) | $ | (24 | ) | $ | 50 | $ | (1,091 | ) | $ | 18 | $ | (790 | ) |
Six months ended June 30, 2018 (a) | |||||||||||||||||||
Retail | Generation | Corporate | Eliminations | Total | |||||||||||||||
Operating revenues(b) | $ | 3,294 | $ | 1,438 | $ | — | $ | (206 | ) | $ | 4,526 | ||||||||
Depreciation and amortization | 56 | 160 | 18 | (2 | ) | 232 | |||||||||||||
Impairment losses | — | 74 | — | — | 74 | ||||||||||||||
Reorganization costs | 5 | 6 | 32 | — | 43 | ||||||||||||||
Gain on sale of assets | — | 2 | 14 | — | 16 | ||||||||||||||
Equity in earnings of unconsolidated affiliates | — | 7 | 1 | (2 | ) | 6 | |||||||||||||
Income/(loss) from continuing operations before income taxes | 860 | (319 | ) | (264 | ) | (1 | ) | 276 | |||||||||||
Income/(loss) from continuing operations | 860 | (319 | ) | (275 | ) | (1 | ) | 265 | |||||||||||
Income from discontinued operations, net of tax | — | — | 64 | — | 64 | ||||||||||||||
Net income/(loss) | 860 | (319 | ) | (211 | ) | (1 | ) | 329 | |||||||||||
Net income/(loss) attributable to NRG Energy, Inc. common stockholders | $ | 859 | $ | (313 | ) | $ | (196 | ) | $ | 1 | $ | 351 |
(a) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 11 | $ | 406 | $ | 4 | $ | — | $ | 15 | $ | — | $ | 436 |
(a) Includes intersegment revenues and costs associated with our internal transfer of power, which is based on average annualized market prices and results in higher revenues in Generation and higher cost of operations in Retail that are eliminated in consolidation | |||||||||||||||||||
(b) Operating revenues include inter-segment sales and net derivative gains and losses of: | $ | 6 | $ | 205 | $ | (5 | ) | $ | — | $ | 206 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
In millions, except rates | 2018 | 2017 | 2018 | 2017 | |||||||||||
Income/(Loss) before income taxes | $ | 129 | $ | 103 | $ | 361 | $ | (71 | ) | ||||||
Income tax expense/(benefit) from continuing operations | 8 | 4 | 7 | (1 | ) | ||||||||||
Effective tax rate | 6.2 | % | 3.9 | % | 1.9 | % | 1.4 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
In millions, except rates | 2019 | 2018 | 2019 | 2018 | |||||||||||
Income from continuing operations before income taxes | $ | 188 | $ | 32 | $ | 286 | $ | 276 | |||||||
Income tax (benefit)/expense from continuing operations | (1 | ) | 5 | 3 | 11 | ||||||||||
Effective income tax rate | (0.5 | )% | 15.6 | % | 1.0 | % | 4.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
(In millions) | |||||||||||||||
Revenues from Related Parties Included in Operating Revenues | |||||||||||||||
Gladstone | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||
GenConn | — | 1 | — | 3 | |||||||||||
Ivanpah | 7 | 5 | 18 | 5 | |||||||||||
Midway-Sunset | 1 | — | 2 | — | |||||||||||
Revenues from Related Parties recorded against selling, general and administrative expenses | |||||||||||||||
GenOn | — | 21 | — | 42 | |||||||||||
Total | $ | 9 | $ | 28 | $ | 21 | $ | 51 |
Ace Energy, Inc. | NRG | |
Allied Home Warranty GP LLC | NRG | |
Allied Warranty LLC | NRG | NRG |
Arthur Kill Power LLC | NRG | NRG |
Astoria Gas Turbine Power LLC | NRG | |
NRG | ||
BidURenergy, Inc. | NRG | NRG |
Cabrillo Power I LLC | NRG | NRG |
Cabrillo Power II LLC | NRG | NRG |
Carbon Management Solutions LLC | NRG | NRG |
Cirro Group, Inc. | NRG | NRG |
Cirro Energy Services, Inc. | NRG | |
NRG Services Corporation | ||
NRG Distributed Energy Resources Holdings LLC | NRG | |
NRG Distributed Generation PR LLC | NRG South | |
NRG Dunkirk Operations Inc. | NRG | |
NRG ECOKAP Holdings LLC | NRG South Texas LP | |
El Segundo Power, LLC | NRG El Segundo Operations Inc. | NRG Texas |
El Segundo Power II LLC | NRG Energy Labor Services LLC | NRG Texas |
Energy Alternatives Wholesale, LLC | NRG Energy Services Group LLC | NRG |
Energy Choice Solutions LLC | NRG Energy Services International Inc. | NRG |
Energy Plus Holdings LLC | NRG Energy Services LLC | NRG |
Energy Plus Natural Gas LLC | NRG Generation Holdings, Inc. | |
Energy Protection Insurance Company | NRG Greenco LLC | |
Everything Energy LLC | NRG Home & Business Solutions LLC | |
Forward Home Security, LLC | NRG Home Services LLC | |
GCP Funding Company, LLC | NRG Home Solutions LLC | |
Green Mountain Energy Company | NRG Home Solutions Product LLC | |
Gregory Partners, LLC | NRG Homer City Services LLC | Reliant Energy |
Gregory Power Partners LLC | NRG Huntley Operations Inc. | |
Huntley Power LLC | NRG HQ DG LLC | |
Independence Energy Alliance LLC | NRG Identity Protect LLC | |
Independence Energy Group LLC | NRG Ilion Limited Partnership | |
Independence Energy Natural Gas LLC | NRG Ilion LP LLC | |
Indian River Operations Inc. | NRG International LLC | |
Indian River Power LLC | NRG Maintenance Services LLC | |
Meriden Gas Turbines LLC | NRG Mextrans Inc. | Texas Genco GP, LLC |
Middletown Power LLC | NRG MidAtlantic Affiliate Services Inc. | Texas Genco Holdings, Inc. |
Montville Power LLC | NRG Middletown Operations Inc. | Texas Genco LP, LLC |
NEO Corporation | NRG Montville Operations Inc. | Texas Genco Services, LP |
New Genco GP, LLC | NRG North Central Operations Inc. | US Retailers LLC |
Norwalk Power LLC | NRG Northeast Affiliate Services Inc. | Vienna Operations Inc. |
NRG | Vienna Power LLC | |
NRG | WCP (Generation) Holdings LLC | |
NRG | West Coast Power LLC | |
NRG Astoria Gas Turbine Operations Inc. |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 2,140 | $ | 332 | $ | — | $ | (7 | ) | $ | 2,465 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 1,590 | 252 | 10 | (7 | ) | 1,845 | |||||||||||||
Depreciation and amortization | 51 | 26 | 8 | — | 85 | ||||||||||||||
Impairment losses | 1 | — | — | — | 1 | ||||||||||||||
Selling, general and administrative | 112 | 12 | 87 | — | 211 | ||||||||||||||
Reorganization costs | — | — | 2 | — | 2 | ||||||||||||||
Development costs | — | 1 | 1 | — | 2 | ||||||||||||||
Total operating costs and expenses | 1,754 | 291 | 108 | (7 | ) | 2,146 | |||||||||||||
Gain on sale of assets | — | 1 | — | — | 1 | ||||||||||||||
Operating Income/(Loss) | 386 | 42 | (108 | ) | — | 320 | |||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 2 | — | 430 | (432 | ) | — | |||||||||||||
Other income, net | 4 | 8 | 8 | — | 20 | ||||||||||||||
Loss on debt extinguishment, net | — | — | (47 | ) | — | (47 | ) | ||||||||||||
Interest expense | (3 | ) | (5 | ) | (97 | ) | — | (105 | ) | ||||||||||
Total other income/(expense) | 3 | 3 | 294 | (432 | ) | (132 | ) | ||||||||||||
Income from Continuing Operations Before Income Taxes | 389 | 45 | 186 | (432 | ) | 188 | |||||||||||||
Income tax expense/(benefit) | — | 1 | (2 | ) | — | (1 | ) | ||||||||||||
Income from Continuing Operations | 389 | 44 | 188 | (432 | ) | 189 | |||||||||||||
Income from discontinued operations, net of income tax | — | — | 13 | — | 13 | ||||||||||||||
Net Income | 389 | 44 | 201 | (432 | ) | 202 | |||||||||||||
Less: Net income attributable to noncontrolling interest and redeemable interests | — | 1 | — | — | 1 | ||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 389 | $ | 43 | $ | 201 | $ | (432 | ) | $ | 201 |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||
Total operating revenues | $ | 2,276 | $ | 659 | $ | — | $ | (13 | ) | $ | 2,922 | ||||||||
Operating Costs and Expenses | |||||||||||||||||||
Cost of operations | 1,778 | 282 | (4 | ) | (5 | ) | 2,051 | ||||||||||||
Depreciation and amortization | 76 | 143 | 8 | — | 227 | ||||||||||||||
Impairment losses | — | 74 | — | — | 74 | ||||||||||||||
Selling, general and administrative | 110 | 34 | 77 | (10 | ) | 211 | |||||||||||||
Reorganization costs | 1 | — | 22 | — | 23 | ||||||||||||||
Development costs | — | 13 | 3 | — | 16 | ||||||||||||||
Total operating costs and expenses | 1,965 | 546 | 106 | (15 | ) | 2,602 | |||||||||||||
Gain on sale of assets | — | 14 | — | — | 14 | ||||||||||||||
Operating Income/(Loss) | 311 | 127 | (106 | ) | 2 | 334 | |||||||||||||
Other Income/(Expense) | |||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 7 | — | 355 | (362 | ) | — | |||||||||||||
Equity in earnings of unconsolidated affiliates | — | 18 | — | — | 18 | ||||||||||||||
Other income/(expense), net | 4 | (26 | ) | 2 | — | (20 | ) | ||||||||||||
Loss on debt extinguishment, net | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Interest expense | (4 | ) | (92 | ) | (106 | ) | — | (202 | ) | ||||||||||
Total other income/(expense) | 7 | (100 | ) | 250 | (362 | ) | (205 | ) | |||||||||||
Income Before Income Taxes | 318 | 27 | 144 | (360 | ) | 129 | |||||||||||||
Income tax expense/(benefit) | 108 | (68 | ) | (32 | ) | — | 8 | ||||||||||||
Income from Continuing Operations | 210 | 95 | 176 | (360 | ) | 121 | |||||||||||||
Loss from discontinued operations, net of income tax | — | — | (25 | ) | — | (25 | ) | ||||||||||||
Net Income | 210 | 95 | 151 | (360 | ) | 96 | |||||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests | — | (57 | ) | 79 | 2 | 24 | |||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 210 | $ | 152 | $ | 72 | $ | (362 | ) | $ | 72 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Total operating revenues | $ | 4,120 | $ | 1,249 | $ | — | $ | (26 | ) | $ | 5,343 | $ | 3,909 | $ | 727 | $ | — | $ | (6 | ) | $ | 4,630 | ||||||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||||||||||||||||||
Cost of operations | 3,004 | 613 | 9 | (17 | ) | 3,609 | 2,948 | 535 | 19 | (6 | ) | 3,496 | ||||||||||||||||||||||||||
Depreciation and amortization | 149 | 297 | 16 | — | 462 | 105 | 49 | 16 | — | 170 | ||||||||||||||||||||||||||||
Impairment losses | — | 74 | — | — | 74 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||
Selling, general and administrative | 213 | 60 | 139 | (10 | ) | 402 | 234 | 28 | 143 | — | 405 | |||||||||||||||||||||||||||
Reorganization costs | 3 | — | 40 | — | 43 | — | — | 15 | — | 15 | ||||||||||||||||||||||||||||
Development costs | — | 23 | 7 | (1 | ) | 29 | — | 1 | 3 | — | 4 | |||||||||||||||||||||||||||
Total operating costs and expenses | 3,369 | 1,067 | 211 | (28 | ) | 4,619 | 3,288 | 613 | 196 | (6 | ) | 4,091 | ||||||||||||||||||||||||||
Gain on sale of assets | 3 | 13 | — | — | 16 | 1 | 1 | — | — | 2 | ||||||||||||||||||||||||||||
Operating Income/(Loss) | 754 | 195 | (211 | ) | 2 | 740 | 622 | 115 | (196 | ) | — | 541 | ||||||||||||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 9 | — | 685 | (694 | ) | — | 12 | — | 729 | (741 | ) | — | ||||||||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | 17 | (1 | ) | — | 16 | ||||||||||||||||||||||||||||||||
Other income/(expense), net | 8 | (36 | ) | 5 | — | (23 | ) | |||||||||||||||||||||||||||||||
Equity in losses of unconsolidated affiliates | — | (21 | ) | — | — | (21 | ) | |||||||||||||||||||||||||||||||
Other income, net | 8 | 9 | 15 | — | 32 | |||||||||||||||||||||||||||||||||
Loss on debt extinguishment, net | — | — | (3 | ) | — | (3 | ) | — | — | (47 | ) | — | (47 | ) | ||||||||||||||||||||||||
Interest expense | (7 | ) | (164 | ) | (198 | ) | — | (369 | ) | (7 | ) | (9 | ) | (203 | ) | — | (219 | ) | ||||||||||||||||||||
Total other income/(expense) | 10 | (183 | ) | 488 | (694 | ) | (379 | ) | 13 | (21 | ) | 494 | (741 | ) | (255 | ) | ||||||||||||||||||||||
Income Before Income Taxes | 764 | 12 | 277 | (692 | ) | 361 | ||||||||||||||||||||||||||||||||
Income tax expense/(benefit) | 221 | (20 | ) | (194 | ) | — | 7 | |||||||||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | 635 | 94 | 298 | (741 | ) | 286 | ||||||||||||||||||||||||||||||||
Income tax expense | — | 1 | 2 | — | 3 | |||||||||||||||||||||||||||||||||
Income from Continuing Operations | 543 | 32 | 471 | (692 | ) | 354 | 635 | 93 | 296 | (741 | ) | 283 | ||||||||||||||||||||||||||
Loss from discontinued operations, net of income tax | — | — | (25 | ) | — | (25 | ) | |||||||||||||||||||||||||||||||
Income from discontinued operations, net of income tax | 9 | 5 | 387 | — | 401 | |||||||||||||||||||||||||||||||||
Net Income | 543 | 32 | 446 | (692 | ) | 329 | 644 | 98 | 683 | (741 | ) | 684 | ||||||||||||||||||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interests | — | (119 | ) | 95 | 2 | (22 | ) | |||||||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interest and redeemable interests | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 543 | $ | 151 | $ | 351 | $ | (694 | ) | $ | 351 | $ | 644 | $ | 97 | $ | 683 | $ | (741 | ) | $ | 683 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Net Income | $ | 210 | $ | 95 | $ | 151 | $ | (360 | ) | $ | 96 | $ | 389 | $ | 44 | $ | 201 | $ | (432 | ) | $ | 202 | ||||||||||||||||
Other Comprehensive Income, net of tax | ||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net | — | 4 | 6 | (5 | ) | 5 | ||||||||||||||||||||||||||||||||
Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | (4 | ) | (4 | ) | (5 | ) | 9 | (4 | ) | (1 | ) | (1 | ) | (1 | ) | 2 | (1 | ) | ||||||||||||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Defined benefit plans, net | — | — | (1 | ) | — | (1 | ) | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||
Other comprehensive (loss)/income | (4 | ) | — | 1 | 4 | 1 | ||||||||||||||||||||||||||||||||
Other comprehensive loss | (1 | ) | (1 | ) | (3 | ) | 2 | (3 | ) | |||||||||||||||||||||||||||||
Comprehensive Income | 206 | 95 | 152 | (356 | ) | 97 | 388 | 43 | 198 | (430 | ) | 199 | ||||||||||||||||||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (57 | ) | 81 | 2 | 26 | ||||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling redeemable interest | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ | 206 | $ | 152 | $ | 71 | $ | (358 | ) | $ | 71 | $ | 388 | $ | 42 | $ | 198 | $ | (430 | ) | $ | 198 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Net Income | $ | 543 | $ | 32 | $ | 446 | $ | (692 | ) | $ | 329 | $ | 644 | $ | 98 | $ | 683 | $ | (741 | ) | $ | 684 | ||||||||||||||||
Other Comprehensive (Loss)/Income, net of tax | ||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net | — | 20 | 21 | (22 | ) | 19 | ||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net | (6 | ) | (6 | ) | (8 | ) | 14 | (6 | ) | |||||||||||||||||||||||||||||
Other Comprehensive Loss | ||||||||||||||||||||||||||||||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
Defined benefit plans, net | — | — | (2 | ) | — | (2 | ) | — | — | (6 | ) | — | (6 | ) | ||||||||||||||||||||||||
Other comprehensive (loss)/income | (6 | ) | 14 | 12 | (8 | ) | 12 | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | (5 | ) | — | (5 | ) | |||||||||||||||||||||||||||||||
Comprehensive Income | 537 | 46 | 458 | (700 | ) | 341 | 644 | 98 | 678 | (741 | ) | 679 | ||||||||||||||||||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (119 | ) | 105 | 2 | (12 | ) | |||||||||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling redeemable interest | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ | 537 | $ | 165 | $ | 353 | $ | (702 | ) | $ | 353 | $ | 644 | $ | 97 | $ | 678 | $ | (741 | ) | $ | 678 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
ASSETS | (In millions) | (In millions) | ||||||||||||||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 71 | $ | 395 | $ | 514 | $ | — | $ | 980 | $ | — | $ | 27 | $ | 267 | $ | — | $ | 294 | ||||||||||||||||||
Funds deposited by counterparties | 71 | — | — | — | 71 | 31 | — | — | — | 31 | ||||||||||||||||||||||||||||
Restricted cash | 9 | 277 | — | — | 286 | 8 | 2 | 1 | — | 11 | ||||||||||||||||||||||||||||
Accounts receivable, net | 1,094 | 274 | 3 | — | 1,371 | 1,383 | 133 | 277 | (744 | ) | 1,049 | |||||||||||||||||||||||||||
Inventory | 309 | 176 | — | — | 485 | 254 | 116 | — | — | 370 | ||||||||||||||||||||||||||||
Derivative instruments | 837 | 36 | 15 | (37 | ) | 851 | 867 | 54 | — | (71 | ) | 850 | ||||||||||||||||||||||||||
Cash collateral paid in support of energy risk management activities | 209 | 15 | — | — | 224 | 148 | 15 | — | — | 163 | ||||||||||||||||||||||||||||
Accounts receivable - affiliate | 1,189 | 123 | 141 | (1,396 | ) | 57 | ||||||||||||||||||||||||||||||||
Current assets - held for sale | — | 100 | — | — | 100 | |||||||||||||||||||||||||||||||||
Prepayments and other current assets | 173 | 122 | 35 | (2 | ) | 328 | 190 | 11 | 76 | — | 277 | |||||||||||||||||||||||||||
Total current assets | 3,962 | 1,518 | 708 | (1,435 | ) | 4,753 | 2,881 | 358 | 621 | (815 | ) | 3,045 | ||||||||||||||||||||||||||
Property, plant and equipment, net | 2,402 | 10,164 | 231 | (23 | ) | 12,774 | 1,494 | 965 | 151 | — | 2,610 | |||||||||||||||||||||||||||
Other Assets | ||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 486 | — | 8,111 | (8,597 | ) | — | 436 | — | 4,191 | (4,627 | ) | — | ||||||||||||||||||||||||||
Equity investments in affiliates | — | 1,055 | — | — | 1,055 | — | 383 | — | — | 383 | ||||||||||||||||||||||||||||
Notes receivable, less current portion | — | 15 | — | — | 15 | |||||||||||||||||||||||||||||||||
Operating lease right-of-use assets, net | 91 | 279 | 129 | — | 499 | |||||||||||||||||||||||||||||||||
Goodwill | 360 | 179 | — | — | 539 | 359 | 214 | — | — | 573 | ||||||||||||||||||||||||||||
Intangible assets, net | 415 | 1,448 | — | (3 | ) | 1,860 | 402 | 159 | — | — | 561 | |||||||||||||||||||||||||||
Nuclear decommissioning trust fund | 694 | — | — | — | 694 | 748 | — | — | — | 748 | ||||||||||||||||||||||||||||
Derivative instruments | 329 | 61 | 38 | (2 | ) | 426 | 420 | 22 | — | (16 | ) | 426 | ||||||||||||||||||||||||||
Deferred income tax | 156 | 34 | (64 | ) | — | 126 | — | 56 | (1 | ) | — | 55 | ||||||||||||||||||||||||||
Non-current assets held-for-sale | — | 50 | — | — | 50 | |||||||||||||||||||||||||||||||||
Other non-current assets | 81 | 454 | 120 | — | 655 | 148 | 30 | 96 | (3 | ) | 271 | |||||||||||||||||||||||||||
Total other assets | 2,521 | 3,296 | 8,205 | (8,602 | ) | 5,420 | 2,604 | 1,143 | 4,415 | (4,646 | ) | 3,516 | ||||||||||||||||||||||||||
Total Assets | $ | 8,885 | $ | 14,978 | $ | 9,144 | $ | (10,060 | ) | $ | 22,947 | $ | 6,979 | $ | 2,466 | $ | 5,187 | $ | (5,461 | ) | $ | 9,171 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt and capital leases | $ | — | $ | 862 | $ | 92 | $ | (2 | ) | $ | 952 | $ | — | $ | 87 | $ | — | $ | — | $ | 87 | |||||||||||||||||
Current portion of operating lease liabilities | 22 | 31 | 21 | — | 74 | |||||||||||||||||||||||||||||||||
Accounts payable | 699 | 230 | 46 | — | 975 | 937 | 107 | 423 | (744 | ) | 723 | |||||||||||||||||||||||||||
Accounts payable — affiliate | 1,901 | (207 | ) | (269 | ) | (1,396 | ) | 29 | ||||||||||||||||||||||||||||||
Derivative instruments | 695 | 51 | — | (37 | ) | 709 | 817 | 32 | — | (71 | ) | 778 | ||||||||||||||||||||||||||
Cash collateral received in support of energy risk management activities | 72 | — | — | — | 72 | 31 | — | — | — | 31 | ||||||||||||||||||||||||||||
Current liabilities held-for-sale | — | 74 | — | — | 74 | |||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 270 | 123 | 326 | — | 719 | 258 | 42 | 301 | — | 601 | ||||||||||||||||||||||||||||
Accrued expenses and other current liabilities-affiliate | — | — | 133 | — | 133 | |||||||||||||||||||||||||||||||||
Total current liabilities | 3,637 | 1,133 | 328 | (1,435 | ) | 3,663 | 2,065 | 299 | 745 | (815 | ) | 2,294 | ||||||||||||||||||||||||||
Other Liabilities | ||||||||||||||||||||||||||||||||||||||
Long-term debt and capital leases | 245 | 7,428 | 7,148 | — | 14,821 | 245 | 89 | 5,463 | (3 | ) | 5,794 | |||||||||||||||||||||||||||
Non-current operating lease liabilities | 73 | 313 | 127 | — | 513 | |||||||||||||||||||||||||||||||||
Nuclear decommissioning reserve | 274 | — | — | — | 274 | 290 | — | — | — | 290 | ||||||||||||||||||||||||||||
Nuclear decommissioning trust liability | 410 | — | — | — | 410 | 448 | — | — | — | 448 | ||||||||||||||||||||||||||||
Derivative instruments | 388 | 2 | — | (16 | ) | 374 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 112 | 64 | (159 | ) | — | 17 | (10 | ) | 68 | 13 | — | 71 | ||||||||||||||||||||||||||
Derivative instruments | 237 | 50 | — | (2 | ) | 285 | ||||||||||||||||||||||||||||||||
Out-of-market contracts, net | 58 | 137 | — | — | 195 | |||||||||||||||||||||||||||||||||
Non-current liabilities held-for-sale | — | 12 | — | — | 12 | |||||||||||||||||||||||||||||||||
Other non-current liabilities | 410 | 311 | 409 | — | 1,130 | 399 | 148 | 469 | — | 1,016 | ||||||||||||||||||||||||||||
Total non-current liabilities | 1,746 | 8,002 | 7,398 | (2 | ) | 17,144 | ||||||||||||||||||||||||||||||||
Total liabilities | 5,383 | 9,135 | 7,726 | (1,437 | ) | 20,807 | ||||||||||||||||||||||||||||||||
Total other liabilities | 1,833 | 620 | 6,072 | (19 | ) | 8,506 | ||||||||||||||||||||||||||||||||
Total Liabilities | 3,898 | 919 | 6,817 | (834 | ) | 10,800 | ||||||||||||||||||||||||||||||||
Redeemable noncontrolling interest in subsidiaries | — | 69 | — | — | 69 | — | 19 | — | — | 19 | ||||||||||||||||||||||||||||
Stockholders’ Equity | 3,502 | 5,774 | 1,418 | (8,623 | ) | 2,071 | 3,081 | 1,528 | (1,630 | ) | (4,627 | ) | (1,648 | ) | ||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 8,885 | $ | 14,978 | $ | 9,144 | $ | (10,060 | ) | $ | 22,947 | $ | 6,979 | $ | 2,466 | $ | 5,187 | $ | (5,461 | ) | $ | 9,171 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income | $ | 543 | $ | 32 | $ | 446 | $ | (692 | ) | $ | 329 | ||||||||
Loss from discontinued operations | — | — | (25 | ) | — | (25 | ) | ||||||||||||
Net income from continuing operations | 543 | 32 | 471 | (692 | ) | 354 | |||||||||||||
Adjustments to reconcile net income to net cash provided/(used) by operating activities: | |||||||||||||||||||
Distributions from unconsolidated affiliates | — | 50 | — | (7 | ) | 43 | |||||||||||||
Equity in (earnings)/losses of unconsolidated affiliates | — | (17 | ) | 1 | — | (16 | ) | ||||||||||||
Depreciation, amortization and accretion | 162 | 307 | 16 | — | 485 | ||||||||||||||
Provision for bad debts | 31 | — | — | — | 31 | ||||||||||||||
Amortization of nuclear fuel | 24 | — | — | — | 24 | ||||||||||||||
Amortization of financing costs and debt discount/premiums | — | 18 | 9 | — | 27 | ||||||||||||||
Adjustment for debt extinguishment | — | — | 3 | — | 3 | ||||||||||||||
Amortization of intangibles and out-of-market contracts | 9 | 39 | — | — | 48 | ||||||||||||||
Amortization of unearned equity compensation | — | — | 26 | — | 26 | ||||||||||||||
Impairment losses | — | 89 | — | — | 89 | ||||||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 221 | (41 | ) | (176 | ) | — | 4 | ||||||||||||
Changes in nuclear decommissioning trust liability | 41 | — | — | — | 41 | ||||||||||||||
Changes in derivative instruments | (154 | ) | (43 | ) | 8 | (22 | ) | (211 | ) | ||||||||||
Changes in collateral deposits in support of energy risk management activities | (4 | ) | (14 | ) | — | — | (18 | ) | |||||||||||
Gain on sale of emission allowances | (11 | ) | — | — | — | (11 | ) | ||||||||||||
Gain on sale of assets | (3 | ) | (13 | ) | — | — | (16 | ) | |||||||||||
Loss on deconsolidation of business | — | 22 | — | — | 22 | ||||||||||||||
Changes in other working capital | (298 | ) | 41 | (865 | ) | 721 | (401 | ) | |||||||||||
Net Cash Provided/(Used) by Operating Activities | 561 | 470 | (507 | ) | — | 524 | |||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Dividends from NRG Yield, Inc. | — | — | 52 | (52 | ) | — | |||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | (126 | ) | — | 126 | — | |||||||||||||
Acquisition of business, net of cash acquired | (2 | ) | (282 | ) | — | — | (284 | ) | |||||||||||
Capital expenditures | (105 | ) | (556 | ) | (30 | ) | — | (691 | ) | ||||||||||
Decrease in notes receivable | — | 4 | — | — | 4 | ||||||||||||||
Purchases of emission allowances | (22 | ) | — | — | — | (22 | ) | ||||||||||||
Proceeds from sale of emission allowances | 34 | — | — | — | 34 | ||||||||||||||
Investments in nuclear decommissioning trust fund securities | (346 | ) | — | — | — | (346 | ) | ||||||||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 303 | — | — | — | 303 | ||||||||||||||
Proceeds from sale of assets, net of cash disposed of | 10 | 8 | — | — | 18 | ||||||||||||||
Deconsolidation of business | — | (160 | ) | — | — | (160 | ) | ||||||||||||
Change in investments in unconsolidated affiliates | — | (2 | ) | — | — | (2 | ) | ||||||||||||
Net Cash (Used)/Provided by Investing Activities | (128 | ) | (1,114 | ) | 22 | 74 | (1,146 | ) | |||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Dividends from NRG Yield, Inc. | — | (52 | ) | — | 52 | — | |||||||||||||
Payment (for)/from intercompany loans | (323 | ) | 108 | 215 | — | — | |||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | — | 126 | (126 | ) | — | |||||||||||||
Payment of dividends to common and preferred stockholders | — | — | (19 | ) | — | (19 | ) | ||||||||||||
Payment for treasury stock | — | — | (500 | ) | — | (500 | ) | ||||||||||||
Proceeds from issuance of long-term debt | — | 774 | 831 | — | 1,605 | ||||||||||||||
Payments for short and long-term debt | — | (564 | ) | (284 | ) | — | (848 | ) | |||||||||||
Contributions from, net of distributions to noncontrolling interests in subsidiaries | — | 222 | — | — | 222 | ||||||||||||||
Payment of debt issuance costs | — | (24 | ) | (13 | ) | — | (37 | ) | |||||||||||
Net Cash (Used)/Provided by Financing Activities | (323 | ) | 464 | 356 | (74 | ) | 423 | ||||||||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 110 | (180 | ) | (129 | ) | — | (199 | ) | |||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 41 | 852 | 643 | — | 1,536 | ||||||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 151 | $ | 672 | $ | 514 | $ | — | $ | 1,337 |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income | $ | 644 | $ | 98 | $ | 683 | $ | (741 | ) | $ | 684 | ||||||||
Income from discontinued operations | 9 | 5 | 387 | — | 401 | ||||||||||||||
Income from continuing operations | 635 | 93 | 296 | (741 | ) | 283 | |||||||||||||
Adjustments to reconcile net income to net cash provided/(used) by operating activities: | |||||||||||||||||||
Distributions and equity in (earnings)/losses of unconsolidated affiliates and consolidated subsidiaries | (12 | ) | 22 | (729 | ) | 741 | 22 | ||||||||||||
Depreciation, amortization and accretion | 115 | 53 | 16 | — | 184 | ||||||||||||||
Provision for bad debts | 42 | 4 | 6 | — | 52 | ||||||||||||||
Amortization of nuclear fuel | 27 | — | — | — | 27 | ||||||||||||||
Amortization of financing costs and debt discount/premiums | — | — | 13 | — | 13 | ||||||||||||||
Loss on debt extinguishment, net | — | — | 47 | — | 47 | ||||||||||||||
Amortization of intangibles | 13 | 1 | — | — | 14 | ||||||||||||||
Amortization of unearned equity compensation | — | — | 10 | — | 10 | ||||||||||||||
(Loss)/gain on sale and disposal of assets | (3 | ) | 1 | 3 | — | 1 | |||||||||||||
Impairment losses | 1 | — | — | — | 1 | ||||||||||||||
Changes in derivative instruments | (28 | ) | (32 | ) | 38 | — | (22 | ) | |||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | — | (3 | ) | (2 | ) | — | (5 | ) | |||||||||||
Changes in collateral deposits in support of energy risk management activities | 128 | (3 | ) | — | — | 125 | |||||||||||||
Changes in nuclear decommissioning trust liability | 17 | — | — | — | 17 | ||||||||||||||
Changes in other working capital | (343 | ) | (64 | ) | 19 | — | (388 | ) | |||||||||||
Cash provided/(used) by continuing operations | 592 | 72 | (283 | ) | — | 381 | |||||||||||||
Cash provided/(used) by discontinued operations | 17 | (9 | ) | — | — | 8 | |||||||||||||
Net Cash Provided/(Used) by Operating Activities | 609 | 63 | (283 | ) | — | 389 | |||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Intercompany dividends | — | — | 738 | (738 | ) | — | |||||||||||||
Payments for acquisitions of businesses | (21 | ) | — | — | — | (21 | ) | ||||||||||||
Capital expenditures | (77 | ) | (15 | ) | (15 | ) | — | (107 | ) | ||||||||||
Net purchases of emission allowances | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Investments in nuclear decommissioning trust fund securities | (209 | ) | — | — | — | (209 | ) | ||||||||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 191 | — | — | — | 191 | ||||||||||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 1 | 400 | 888 | 1,289 | |||||||||||||||
Net distributions from investments in unconsolidated affiliates | — | 7 | — | — | 7 | ||||||||||||||
Contributions to discontinued operations | — | (44 | ) | — | — | (44 | ) | ||||||||||||
Cash (used)/provided by continuing operations | (116 | ) | 348 | 1,611 | (738 | ) | 1,105 | ||||||||||||
Cash used by discontinued operations | — | (2 | ) | — | — | (2 | ) | ||||||||||||
Net Cash (Used)/Provided by Investing Activities | (116 | ) | 346 | 1,611 | (738 | ) | 1,103 | ||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Payments from/(for) intercompany loans | 206 | (375 | ) | 169 | — | — | |||||||||||||
Intercompany dividends | (738 | ) | — | — | 738 | — | |||||||||||||
Payment of dividends to common stockholders | — | — | (16 | ) | — | (16 | ) | ||||||||||||
Payments for treasury stock | — | — | (1,039 | ) | — | (1,039 | ) | ||||||||||||
Payments for debt extinguishment | — | — | (24 | ) | — | (24 | ) | ||||||||||||
Distributions to noncontrolling interests from subsidiaries | — | (1 | ) | — | — | (1 | ) | ||||||||||||
Proceeds from issuance of common stock | — | — | 2 | — | 2 | ||||||||||||||
Proceeds from issuance of long-term debt | — | — | 1,833 | — | 1,833 | ||||||||||||||
Payment of debt issuance costs | — | — | (33 | ) | — | (33 | ) | ||||||||||||
Payments for long-term debt | — | (53 | ) | (2,432 | ) | — | (2,485 | ) | |||||||||||
Cash used by continuing operations | (532 | ) | (429 | ) | (1,540 | ) | 738 | (1,763 | ) | ||||||||||
Cash provided by discontinued operations | — | 43 | — | — | 43 | ||||||||||||||
Net Cash Used by Financing Activities | (532 | ) | (386 | ) | (1,540 | ) | 738 | (1,720 | ) | ||||||||||
Change in cash from discontinued operations | 17 | 32 | — | — | 49 | ||||||||||||||
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | (56 | ) | (9 | ) | (212 | ) | — | (277 | ) | ||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 95 | 38 | 480 | — | 613 | ||||||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 39 | $ | 29 | $ | 268 | $ | — | $ | 336 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Total operating revenues | $ | 2,060 | $ | 664 | $ | — | $ | (23 | ) | $ | 2,701 | $ | 2,172 | $ | 291 | $ | — | $ | (2 | ) | $ | 2,461 | ||||||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||||||||||||||||||
Cost of operations | 1,530 | 312 | 20 | (21 | ) | 1,841 | 1,702 | 195 | (5 | ) | (3 | ) | 1,889 | |||||||||||||||||||||||||
Depreciation and amortization | 99 | 153 | 8 | — | 260 | 63 | 40 | 9 | — | 112 | ||||||||||||||||||||||||||||
Impairment losses | 42 | 21 | — | — | 63 | — | 74 | — | — | 74 | ||||||||||||||||||||||||||||
Selling, general and administrative | 96 | 29 | 97 | (1 | ) | 221 | 108 | 16 | 76 | — | 200 | |||||||||||||||||||||||||||
Reorganization costs | 1 | — | 22 | — | 23 | |||||||||||||||||||||||||||||||||
Development costs | — | 13 | 5 | — | 18 | — | 1 | 3 | (1 | ) | 3 | |||||||||||||||||||||||||||
Total operating costs and expenses | 1,767 | 528 | 130 | (22 | ) | 2,403 | 1,874 | 326 | 105 | (4 | ) | 2,301 | ||||||||||||||||||||||||||
Other income - affiliate | — | — | 39 | — | 39 | |||||||||||||||||||||||||||||||||
Gain on sale of assets | 2 | — | — | — | 2 | — | 14 | — | — | 14 | ||||||||||||||||||||||||||||
Operating Income/(Loss) | 295 | 136 | (91 | ) | (1 | ) | 339 | 298 | (21 | ) | (105 | ) | 2 | 174 | ||||||||||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of consolidated subsidiaries | 8 | — | (149 | ) | 141 | — | ||||||||||||||||||||||||||||||||
Equity in losses of unconsolidated affiliates | — | (2 | ) | (1 | ) | — | (3 | ) | ||||||||||||||||||||||||||||||
Other income, net | — | 41 | 7 | (34 | ) | 14 | ||||||||||||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 7 | — | 353 | (360 | ) | — | ||||||||||||||||||||||||||||||||
Equity in earnings of unconsolidated affiliates | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||
Other income/(loss), net | 3 | (29 | ) | 3 | — | (23 | ) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment, net | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||||||||||||||
Interest expense | (4 | ) | (121 | ) | (122 | ) | — | (247 | ) | (4 | ) | (13 | ) | (106 | ) | — | (123 | ) | ||||||||||||||||||||
Total other income/(expense) | 4 | (82 | ) | (265 | ) | 107 | (236 | ) | 6 | (37 | ) | 249 | (360 | ) | (142 | ) | ||||||||||||||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 299 | 54 | (356 | ) | 106 | 103 | 304 | (58 | ) | 144 | (358 | ) | 32 | |||||||||||||||||||||||||
Income tax expense/(benefit) | 113 | 267 | (376 | ) | — | 4 | 108 | (71 | ) | (32 | ) | — | 5 | |||||||||||||||||||||||||
Income/(Loss) from Continuing Operations | 186 | (213 | ) | 20 | 106 | 99 | ||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income tax | — | (123 | ) | (618 | ) | — | (741 | ) | ||||||||||||||||||||||||||||||
Net Income/(Loss) | 186 | (336 | ) | (598 | ) | 106 | (642 | ) | ||||||||||||||||||||||||||||||
Income from Continuing Operations | 196 | 13 | 176 | (358 | ) | 27 | ||||||||||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of income tax | 15 | 80 | (26 | ) | — | 69 | ||||||||||||||||||||||||||||||||
Net Income | 211 | 93 | 150 | (358 | ) | 96 | ||||||||||||||||||||||||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (9 | ) | 28 | (35 | ) | (16 | ) | — | (56 | ) | 78 | 2 | 24 | ||||||||||||||||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 186 | $ | (327 | ) | $ | (626 | ) | $ | 141 | $ | (626 | ) | |||||||||||||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 211 | $ | 149 | $ | 72 | $ | (360 | ) | $ | 72 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
(In millions) | (In millions) | |||||||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||
Total operating revenues | $ | 3,878 | $ | 1,241 | $ | — | $ | (36 | ) | $ | 5,083 | $ | 3,916 | $ | 620 | $ | — | $ | (10 | ) | $ | 4,526 | ||||||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||||||||||||||||||
Cost of operations | 3,050 | 651 | 39 | (36 | ) | 3,704 | 2,857 | 419 | 9 | (11 | ) | 3,274 | ||||||||||||||||||||||||||
Depreciation and amortization | 198 | 303 | 16 | — | 517 | 123 | 92 | 17 | — | 232 | ||||||||||||||||||||||||||||
Impairment losses | 42 | 21 | — | — | 63 | — | 74 | — | — | 74 | ||||||||||||||||||||||||||||
Selling, general and administrative | 205 | 64 | 213 | (1 | ) | 481 | 212 | 27 | 137 | — | 376 | |||||||||||||||||||||||||||
Reorganization costs | 3 | — | 40 | — | 43 | |||||||||||||||||||||||||||||||||
Development costs | — | 25 | 10 | — | 35 | — | 2 | 7 | (1 | ) | 8 | |||||||||||||||||||||||||||
Total operating costs and expenses | 3,495 | 1,064 | 278 | (37 | ) | 4,800 | 3,195 | 614 | 210 | (12 | ) | 4,007 | ||||||||||||||||||||||||||
Other income - affiliate | — | — | 87 | — | 87 | |||||||||||||||||||||||||||||||||
Gain on sale of assets | 4 | — | — | — | 4 | 3 | 13 | — | — | 16 | ||||||||||||||||||||||||||||
Operating Income/(Loss) | 387 | 177 | (191 | ) | 1 | 374 | 724 | 19 | (210 | ) | 2 | 535 | ||||||||||||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of consolidated subsidiaries | 13 | — | (100 | ) | 87 | — | ||||||||||||||||||||||||||||||||
Equity in earnings of consolidated subsidiaries | 8 | — | 685 | (693 | ) | — | ||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | — | 4 | (2 | ) | — | 2 | — | 7 | (1 | ) | — | 6 | ||||||||||||||||||||||||||
Other income, net | 1 | 47 | 13 | (35 | ) | 26 | ||||||||||||||||||||||||||||||||
Other income/(loss), net | 8 | (36 | ) | 5 | — | (23 | ) | |||||||||||||||||||||||||||||||
Loss on debt extinguishment, net | — | (2 | ) | — | — | (2 | ) | — | — | (3 | ) | — | (3 | ) | ||||||||||||||||||||||||
Interest expense | (7 | ) | (225 | ) | (239 | ) | — | (471 | ) | (7 | ) | (34 | ) | (198 | ) | — | (239 | ) | ||||||||||||||||||||
Total other income/(expense) | 7 | (176 | ) | (328 | ) | 52 | (445 | ) | 9 | (63 | ) | 488 | (693 | ) | (259 | ) | ||||||||||||||||||||||
Income/(Loss) from Continuing Operations Before Income Taxes | 394 | 1 | (519 | ) | 53 | (71 | ) | 733 | (44 | ) | 278 | (691 | ) | 276 | ||||||||||||||||||||||||
Income tax expense/(benefit) | 131 | 237 | (369 | ) | — | (1 | ) | 221 | (16 | ) | (194 | ) | — | 11 | ||||||||||||||||||||||||
Income/(Loss) from Continuing Operations | 263 | (236 | ) | (150 | ) | 53 | (70 | ) | 512 | (28 | ) | 472 | (691 | ) | 265 | |||||||||||||||||||||||
Loss from discontinued operations, net of income tax | — | (160 | ) | (615 | ) | — | (775 | ) | ||||||||||||||||||||||||||||||
Net Income/(Loss) | 263 | (396 | ) | (765 | ) | 53 | (845 | ) | ||||||||||||||||||||||||||||||
Income/(loss) from discontinued operations, net of income tax | 30 | 60 | (26 | ) | — | 64 | ||||||||||||||||||||||||||||||||
Net Income | 542 | 32 | 446 | (691 | ) | 329 | ||||||||||||||||||||||||||||||||
Less: Net (loss)/income attributable to noncontrolling interest and redeemable noncontrolling interest | — | (46 | ) | 25 | (34 | ) | (55 | ) | — | (119 | ) | 95 | 2 | (22 | ) | |||||||||||||||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 263 | $ | (350 | ) | $ | (790 | ) | $ | 87 | $ | (790 | ) | |||||||||||||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 542 | $ | 151 | $ | 351 | $ | (693 | ) | $ | 351 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 186 | $ | (336 | ) | $ | (598 | ) | $ | 106 | $ | (642 | ) | ||||||
Other Comprehensive Income, 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 | — | 23 | 25 | (24 | ) | 24 | |||||||||||||
Comprehensive Income/(Loss) | 186 | (313 | ) | (573 | ) | 82 | (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. | $ | 186 | $ | (303 | ) | $ | (601 | ) | $ | 117 | $ | (601 | ) |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income | $ | 211 | $ | 93 | $ | 150 | $ | (358 | ) | $ | 96 | ||||||||
Other Comprehensive (Loss)/Income | |||||||||||||||||||
Unrealized gain on derivatives, net | — | 4 | 6 | (5 | ) | 5 | |||||||||||||
Foreign currency translation adjustments, net | (4 | ) | (4 | ) | (5 | ) | 9 | (4 | ) | ||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | ||||||||||||||
Defined benefit plans, net | — | — | (1 | ) | — | (1 | ) | ||||||||||||
Other comprehensive (loss)/income | (4 | ) | — | 1 | 4 | 1 | |||||||||||||
Comprehensive Income | 207 | 93 | 151 | (354 | ) | 97 | |||||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable interests | — | (56 | ) | 80 | 2 | 26 | |||||||||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ | 207 | $ | 149 | $ | 71 | $ | (356 | ) | $ | 71 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income/(Loss) | $ | 263 | $ | (396 | ) | $ | (765 | ) | $ | 53 | $ | (845 | ) | ||||||
Other Comprehensive Income, net of tax | |||||||||||||||||||
Unrealized loss 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) | 268 | (363 | ) | (730 | ) | 15 | (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. | $ | 268 | $ | (316 | ) | $ | (755 | ) | $ | 49 | $ | (754 | ) |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Net Income | $ | 542 | $ | 32 | $ | 446 | $ | (691 | ) | $ | 329 | ||||||||
Other Comprehensive (Loss)/Income | |||||||||||||||||||
Unrealized gain on derivatives, net | — | 20 | 21 | (22 | ) | 19 | |||||||||||||
Foreign currency translation adjustments, net | (6 | ) | (6 | ) | (8 | ) | 14 | (6 | ) | ||||||||||
Available-for-sale securities, net | — | — | 1 | — | 1 | ||||||||||||||
Defined benefit plans, net | — | — | (2 | ) | — | (2 | ) | ||||||||||||
Other comprehensive (loss)/income | (6 | ) | 14 | 12 | (8 | ) | 12 | ||||||||||||
Comprehensive Income | 536 | 46 | 458 | (699 | ) | 341 | |||||||||||||
Less: Comprehensive (loss)/income attributable to noncontrolling interest and redeemable interests | — | (119 | ) | 105 | 2 | (12 | ) | ||||||||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ | 536 | $ | 165 | $ | 353 | $ | (701 | ) | $ | 353 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||||||||||||||||
ASSETS | (In millions) | (In millions) | ||||||||||||||||||||||||||||||||||||
Current Assets | ||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | — | $ | 348 | $ | 643 | $ | — | $ | 991 | $ | 55 | $ | 28 | $ | 480 | $ | — | $ | 563 | ||||||||||||||||||
Funds deposited by counterparties | 37 | — | — | — | 37 | 33 | — | — | — | 33 | ||||||||||||||||||||||||||||
Restricted cash | 4 | 504 | — | — | 508 | 7 | 10 | — | — | 17 | ||||||||||||||||||||||||||||
Accounts receivable, net | 912 | 163 | 4 | — | 1,079 | 1,354 | 115 | 309 | (754 | ) | 1,024 | |||||||||||||||||||||||||||
Inventory | 338 | 194 | — | — | 532 | 278 | 134 | — | — | 412 | ||||||||||||||||||||||||||||
Derivative instruments | 646 | 29 | 9 | (58 | ) | 626 | 779 | 50 | 16 | (81 | ) | 764 | ||||||||||||||||||||||||||
Cash collateral paid in support of energy risk management activities | 170 | 1 | — | — | 171 | 275 | 12 | — | — | 287 | ||||||||||||||||||||||||||||
Accounts receivable - affiliate | 685 | 133 | (129 | ) | (594 | ) | 95 | |||||||||||||||||||||||||||||||
Current assets held-for-sale | 8 | 107 | — | — | 115 | |||||||||||||||||||||||||||||||||
Prepayments and other current assets | 122 | 112 | 27 | — | 261 | 180 | 32 | 90 | — | 302 | ||||||||||||||||||||||||||||
Current assets - held-for-sale | — | 1 | — | — | 1 | |||||||||||||||||||||||||||||||||
Current assets - discontinued operations | 177 | 20 | — | — | 197 | |||||||||||||||||||||||||||||||||
Total current assets | 2,922 | 1,591 | 554 | (652 | ) | 4,415 | 3,138 | 402 | 895 | (835 | ) | 3,600 | ||||||||||||||||||||||||||
Property, plant and equipment, net | 2,507 | 11,188 | 238 | (25 | ) | 13,908 | 1,938 | 957 | 153 | — | 3,048 | |||||||||||||||||||||||||||
Other Assets | ||||||||||||||||||||||||||||||||||||||
Investment in subsidiaries | 266 | — | 7,581 | (7,847 | ) | — | 446 | — | 4,707 | (5,153 | ) | — | ||||||||||||||||||||||||||
Equity investments in affiliates | — | 1,036 | 2 | — | 1,038 | — | 412 | — | — | 412 | ||||||||||||||||||||||||||||
Note receivable, less current portion | — | 2 | 38 | (38 | ) | 2 | ||||||||||||||||||||||||||||||||
Goodwill | 360 | 179 | — | — | 539 | 359 | 214 | — | — | 573 | ||||||||||||||||||||||||||||
Intangible assets, net | 454 | 1,295 | — | (3 | ) | 1,746 | 422 | 169 | — | — | 591 | |||||||||||||||||||||||||||
Nuclear decommissioning trust fund | 692 | — | — | — | 692 | 663 | — | — | — | 663 | ||||||||||||||||||||||||||||
Derivative instruments | 126 | 15 | 31 | — | 172 | 296 | 4 | 22 | (5 | ) | 317 | |||||||||||||||||||||||||||
Deferred income taxes | 377 | (7 | ) | (236 | ) | — | 134 | 6 | (143 | ) | 183 | — | 46 | |||||||||||||||||||||||||
Non-current assets held for sale | — | 43 | — | — | 43 | |||||||||||||||||||||||||||||||||
Other non-current assets | 50 | 459 | 120 | — | 629 | 133 | 71 | 97 | (12 | ) | 289 | |||||||||||||||||||||||||||
Non-current assets - held for sale | — | 77 | — | — | 77 | |||||||||||||||||||||||||||||||||
Non-current assets - discontinued operations | 405 | 607 | — | — | 1,012 | |||||||||||||||||||||||||||||||||
Total other assets | 2,325 | 3,022 | 7,536 | (7,888 | ) | 4,995 | 2,730 | 1,411 | 5,009 | (5,170 | ) | 3,980 | ||||||||||||||||||||||||||
Total Assets | $ | 7,754 | $ | 15,801 | $ | 8,328 | $ | (8,565 | ) | $ | 23,318 | $ | 7,806 | $ | 2,770 | $ | 6,057 | $ | (6,005 | ) | $ | 10,628 | ||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||||||||||||||||||||||
Current Liabilities | ||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt and capital leases | $ | — | $ | 667 | $ | 59 | $ | (38 | ) | $ | 688 | $ | — | $ | 55 | $ | 17 | $ | — | $ | 72 | |||||||||||||||||
Accounts payable | 610 | 216 | 55 | — | 881 | 1,368 | (185 | ) | 434 | (754 | ) | 863 | ||||||||||||||||||||||||||
Accounts payable — affiliate | 742 | (297 | ) | 181 | (593 | ) | 33 | |||||||||||||||||||||||||||||||
Derivative instruments | 556 | 57 | — | (58 | ) | 555 | 713 | 41 | — | (81 | ) | 673 | ||||||||||||||||||||||||||
Cash collateral received in support of energy risk management activities | 37 | — | — | — | 37 | 33 | — | — | — | 33 | ||||||||||||||||||||||||||||
Current liabilities held-for-sale | — | 72 | — | — | 72 | |||||||||||||||||||||||||||||||||
Accrued expenses and other current liabilities | 303 | 162 | 425 | — | 890 | 291 | 36 | 353 | — | 680 | ||||||||||||||||||||||||||||
Accrued expenses and other current liabilities - affiliate | — | — | 161 | — | 161 | |||||||||||||||||||||||||||||||||
Current liabilities - held-for-sale | — | 5 | — | — | 5 | |||||||||||||||||||||||||||||||||
Current liabilities - discontinued operations | 24 | 48 | — | — | 72 | |||||||||||||||||||||||||||||||||
Total current liabilities | 2,248 | 877 | 881 | (689 | ) | 3,317 | 2,429 | — | 804 | (835 | ) | 2,398 | ||||||||||||||||||||||||||
Other Liabilities | ||||||||||||||||||||||||||||||||||||||
Long-term debt and capital leases | 244 | 8,733 | 6,739 | — | 15,716 | 244 | 192 | 6,025 | (12 | ) | 6,449 | |||||||||||||||||||||||||||
Nuclear decommissioning reserve | 269 | — | — | — | 269 | 282 | — | — | — | 282 | ||||||||||||||||||||||||||||
Nuclear decommissioning trust liability | 415 | — | — | — | 415 | 371 | — | — | — | 371 | ||||||||||||||||||||||||||||
Derivative instruments | 306 | 3 | — | (5 | ) | 304 | ||||||||||||||||||||||||||||||||
Deferred income taxes | 112 | 64 | (155 | ) | — | 21 | 112 | 61 | (108 | ) | — | 65 | ||||||||||||||||||||||||||
Derivative instruments | 136 | 61 | — | — | 197 | |||||||||||||||||||||||||||||||||
Out-of-market contracts, net | 66 | 141 | — | — | 207 | |||||||||||||||||||||||||||||||||
Non-current liabilities held-for-sale | — | 8 | — | — | 8 | |||||||||||||||||||||||||||||||||
Other non-current liabilities | 410 | 321 | 391 | — | 1,122 | 402 | 320 | 552 | — | 1,274 | ||||||||||||||||||||||||||||
Total non-current liabilities | 1,652 | 9,328 | 6,975 | — | 17,955 | |||||||||||||||||||||||||||||||||
Non-current liabilities - held-for-sale | — | 65 | — | — | 65 | |||||||||||||||||||||||||||||||||
Non-current liabilities - discontinued operations | 58 | 577 | — | — | 635 | |||||||||||||||||||||||||||||||||
Total other liabilities | 1,775 | 1,218 | 6,469 | (17 | ) | 9,445 | ||||||||||||||||||||||||||||||||
Total Liabilities | 3,900 | 10,205 | 7,856 | (689 | ) | 21,272 | 4,204 | 1,218 | 7,273 | (852 | ) | 11,843 | ||||||||||||||||||||||||||
Redeemable noncontrolling interest in subsidiaries | — | 78 | — | — | 78 | — | 19 | — | — | 19 | ||||||||||||||||||||||||||||
Stockholders’ Equity | 3,854 | 5,518 | 472 | (7,876 | ) | 1,968 | 3,602 | 1,533 | (1,216 | ) | (5,153 | ) | (1,234 | ) | ||||||||||||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 7,754 | $ | 15,801 | $ | 8,328 | $ | (8,565 | ) | $ | 23,318 | $ | 7,806 | $ | 2,770 | $ | 6,057 | $ | (6,005 | ) | $ | 10,628 |
(a) | All significant intercompany transactions have been eliminated in |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income/(loss) | $ | 263 | $ | (396 | ) | $ | (765 | ) | $ | 53 | $ | (845 | ) | ||||||
Loss from discontinued operations | — | (160 | ) | (615 | ) | — | (775 | ) | |||||||||||
Net income/(loss) from continuing operations | 263 | (236 | ) | (150 | ) | 53 | (70 | ) | |||||||||||
Adjustments to reconcile net income/(loss) to net cash provided/(used) by operating activities: | |||||||||||||||||||
Distributions from unconsolidated affiliates | — | 32 | — | (4 | ) | 28 | |||||||||||||
Equity in (earnings)/losses of unconsolidated affiliates | — | (4 | ) | 2 | — | (2 | ) | ||||||||||||
Depreciation, amortization and accretion | 198 | 303 | 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 in support of energy risk management activities | (203 | ) | 11 | 3 | — | (189 | ) | ||||||||||||
Proceeds from sale of emission allowances | 11 | — | — | — | 11 | ||||||||||||||
Gain on sale of assets | (22 | ) | — | — | — | (22 | ) | ||||||||||||
Changes in other working capital | (329 | ) | (539 | ) | 538 | (49 | ) | (379 | ) | ||||||||||
Net cash provided/(used) by continuing operations | 158 | (127 | ) | 81 | — | 112 | |||||||||||||
Cash used by discontinued operations | — | (38 | ) | — | — | (38 | ) | ||||||||||||
Net Cash Provided/(Used) by Operating Activities | 158 | (165 | ) | 81 | — | 74 | |||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Dividends from NRG Yield, Inc. | — | — | 45 | (45 | ) | — | |||||||||||||
Intercompany dividends | — | — | 129 | (129 | ) | — | |||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | (131 | ) | — | 131 | — | |||||||||||||
Acquisition of businesses, 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 the sale 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 | ||||||||||||||
Change in investments in unconsolidated affiliates | — | (30 | ) | — | — | (30 | ) | ||||||||||||
Other | 18 | — | — | — | 18 | ||||||||||||||
Net 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 | — | (129 | ) | — | 129 | — | |||||||||||||
Acquisition of Drop Down Assets, net of cash acquired | — | — | 131 | (131 | ) | — | |||||||||||||
Intercompany dividends | (122 | ) | 369 | (247 | ) | — | — | ||||||||||||
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 | ) | |||||||||||
Increase in notes receivable from affiliate | — | (125 | ) | — | — | (125 | ) | ||||||||||||
Distributions to, net of contributions from, noncontrolling interests in subsidiaries | — | 14 | — | — | 14 | ||||||||||||||
Payments of debt issuance costs | — | (32 | ) | (4 | ) | — | (36 | ) | |||||||||||
Other - contingent consideration | — | (10 | ) | — | — | (10 | ) | ||||||||||||
Net 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 | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (8 | ) | — | — | (8 | ) | ||||||||||||
Change in cash from discontinued operations | — | (315 | ) | — | — | (315 | ) | ||||||||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 34 | (271 | ) | 91 | — | (146 | ) | ||||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 13 | 1,050 | 323 | — | 1,386 | ||||||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 47 | $ | 779 | $ | 414 | $ | — | $ | 1,240 |
Guarantor Subsidiaries | Non-Guarantor Subsidiaries | NRG Energy, Inc. (Note Issuer) | Eliminations(a) | Consolidated | |||||||||||||||
(In millions) | |||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||
Net income | $ | 542 | $ | 32 | $ | 446 | $ | (691 | ) | $ | 329 | ||||||||
Income/(loss) from discontinued operations | 30 | 60 | (26 | ) | — | 64 | |||||||||||||
Income/(loss) from continuing operations | 512 | (28 | ) | 472 | (691 | ) | 265 | ||||||||||||
Adjustments to reconcile net income to net cash provided/(used) by operating activities: | |||||||||||||||||||
Distributions and equity in (earnings)/losses of unconsolidated affiliates and consolidated subsidiaries | (8 | ) | 11 | (682 | ) | 691 | 12 | ||||||||||||
Depreciation, amortization and accretion | 136 | 99 | 17 | — | 252 | ||||||||||||||
Provision for bad debts | 30 | — | — | — | 30 | ||||||||||||||
Amortization of nuclear fuel | 24 | — | — | — | 24 | ||||||||||||||
Amortization of financing costs and debt discount/premiums | — | 1 | 12 | — | 13 | ||||||||||||||
Loss on debt extinguishment, net | — | — | 3 | — | 3 | ||||||||||||||
Amortization of intangibles and out-of-market contracts | 16 | 4 | — | — | 20 | ||||||||||||||
Amortization of unearned equity compensation | — | — | 15 | — | 15 | ||||||||||||||
Loss on sale and disposal of assets | (3 | ) | (13 | ) | — | — | (16 | ) | |||||||||||
Impairment losses | — | 88 | — | — | 88 | ||||||||||||||
Changes in derivative instruments | (154 | ) | 19 | (10 | ) | — | (145 | ) | |||||||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 221 | (47 | ) | (176 | ) | — | (2 | ) | |||||||||||
Changes in collateral deposits in support of energy risk management activities | (5 | ) | (4 | ) | — | — | (9 | ) | |||||||||||
Changes in nuclear decommissioning trust liability | 41 | — | — | — | 41 | ||||||||||||||
Loss on deconsolidation of Ivanpah project | — | 22 | — | — | 22 | ||||||||||||||
Changes in other working capital | 152 | (56 | ) | (445 | ) | — | (349 | ) | |||||||||||
Cash provided/(used) by continuing operations | 962 | 96 | (794 | ) | — | 264 | |||||||||||||
Cash provided by discontinued operations | 50 | 199 | — | — | 249 | ||||||||||||||
Net Cash Provided/(Used) by Operating Activities | 1,012 | 295 | (794 | ) | — | 513 | |||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||
Intercompany dividends | — | — | 157 | (157 | ) | — | |||||||||||||
Payments for acquisitions of businesses | (2 | ) | (209 | ) | — | — | (211 | ) | |||||||||||
Capital expenditures | (103 | ) | (149 | ) | (30 | ) | — | (282 | ) | ||||||||||
Net proceeds from sale of emission allowances | 3 | — | — | — | 3 | ||||||||||||||
Investments in nuclear decommissioning trust fund securities | (346 | ) | — | — | — | (346 | ) | ||||||||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 303 | — | — | — | 303 | ||||||||||||||
Proceeds from sale of assets, net of cash disposed of | 11 | — | 135 | — | 146 | ||||||||||||||
Deconsolidation of Ivanpah project | — | (160 | ) | — | — | (160 | ) | ||||||||||||
Net contributions for investments in unconsolidated affiliates | — | (15 | ) | — | — | (15 | ) | ||||||||||||
Contributions to discontinued operations | — | (16 | ) | — | — | (16 | ) | ||||||||||||
Cash (used)/provided by continuing operations | (134 | ) | (549 | ) | 262 | (157 | ) | (578 | ) | ||||||||||
Cash provided/(used) by discontinued operations | 2 | (586 | ) | — | — | (584 | ) | ||||||||||||
Net Cash (Used)/Provided by Investing Activities | (132 | ) | (1,135 | ) | 262 | (157 | ) | (1,162 | ) | ||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||
Payments (for)/from intercompany loans | (611 | ) | 204 | 407 | — | — | |||||||||||||
Intercompany dividends | (157 | ) | — | — | 157 | — | |||||||||||||
Payment of dividends to common stockholders | — | — | (19 | ) | — | (19 | ) | ||||||||||||
Payments for treasury stock | — | — | (500 | ) | — | (500 | ) | ||||||||||||
Distributions to noncontrolling interests from subsidiaries | — | (14 | ) | — | — | (14 | ) | ||||||||||||
Proceeds from issuance of common stock | — | — | 11 | — | 11 | ||||||||||||||
Proceeds from issuance of short and long-term debt | — | 163 | 831 | — | 994 | ||||||||||||||
Payment of debt issuance costs | — | — | (19 | ) | — | (19 | ) | ||||||||||||
Payments for short and long-term debt | — | (63 | ) | (285 | ) | — | (348 | ) | |||||||||||
Cash (used)/provided by continuing operations | (768 | ) | 290 | 426 | 157 | 105 | |||||||||||||
Cash provided by discontinued operations | — | 345 | — | — | 345 | ||||||||||||||
Net Cash (Used)/Provided by Financing Activities | (768 | ) | 635 | 426 | 157 | 450 | |||||||||||||
Change in cash from discontinued operations | 52 | (42 | ) | — | — | 10 | |||||||||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 60 | (163 | ) | (106 | ) | — | (209 | ) | |||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 41 | 425 | 620 | — | 1,086 | ||||||||||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ | 101 | $ | 262 | $ | 514 | $ | — | $ | 877 |
(a) | All significant intercompany transactions have been eliminated in |
Global Generation Portfolio(a) | Global Generation Portfolio(a) | |||||||||||||||||||||||||||||
(In MW) | (In MW) | |||||||||||||||||||||||||||||
Generation | Generation | |||||||||||||||||||||||||||||
Generation Type | Gulf Coast(f)(i) | East/West(b) | Renewables(c)(g)(j)(k) | NRG Yield(d)(j) | Other(e)(j) | Total Global | Texas(b) | East/West(c)(d) | Other (e) | Total Global | ||||||||||||||||||||
Natural gas | 7,464 | 4,878 | — | 1,888 | — | 14,230 | 4,759 | 4,994 | — | 9,753 | ||||||||||||||||||||
Coal | 5,114 | 3,871 | — | — | — | 8,985 | 4,174 | 3,745 | — | 7,919 | ||||||||||||||||||||
Oil | — | 3,641 | — | 190 | — | 3,831 | — | 3,600 | — | 3,600 | ||||||||||||||||||||
Nuclear | 1,136 | — | — | — | — | 1,136 | 1,126 | — | — | 1,126 | ||||||||||||||||||||
Wind(g) | — | — | 739 | 2,200 | — | 2,939 | ||||||||||||||||||||||||
Utility Scale Solar | — | — | 342 | 921 | — | 1,263 | — | 321 | — | 321 | ||||||||||||||||||||
Distributed Solar | — | — | 189 | 52 | 114 | 355 | ||||||||||||||||||||||||
Total generation capacity(h) | 13,714 | 12,390 | 1,270 | 5,251 | 114 | 32,739 | ||||||||||||||||||||||||
Capacity attributable to noncontrolling interest(h) | — | — | (580 | ) | (2,358 | ) | — | (2,938 | ) | |||||||||||||||||||||
Total net generation capacity | 13,714 | 12,390 | 690 | 2,893 | 114 | 29,801 | ||||||||||||||||||||||||
Battery Storage & Distributed Solar | 2 | — | 60 | 62 | ||||||||||||||||||||||||||
Total generation capacity | 10,061 | 12,660 | 60 | 22,781 |
(a) | All Utility Scale Solar and Distributed Solar facilities are described in MW on an alternating current basis. MW figures provided represent nominal summer net MW capacity of power generated as adjusted for the Company's owned or leased interest excluding capacity from inactive/mothballed |
(c) | Includes |
(e) | The Distributed Solar figure within "Other" includes the aggregate production capacity of installed and activated residential solar energy |
Capacity Performance Product | |||||
Zone | Cleared Capacity (MW)(a) | Price ($/MW-day) | |||
COMED | 3,995 | $ | 195.55 | ||
DPL | 552 | $ | 165.73 | ||
MAAC | 121 | $ | 140.00 | ||
PEPCO | 72 | $ | 140.00 | ||
Total | 4,740 |
Three months ended June 30, | Six months ended June 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
(In millions except otherwise noted) | 2018 | 2017 | Change | 2018 | 2017 | Change | ||||||||||||||||||||||||||||||||||||||||
(In millions, except as otherwise noted) | 2019 | 2018 | Change | 2019 | 2018 | Change | ||||||||||||||||||||||||||||||||||||||||
Operating Revenues | ||||||||||||||||||||||||||||||||||||||||||||||
Energy revenue (a) | $ | 673 | $ | 656 | $ | 17 | $ | 1,292 | $ | 1,243 | $ | 49 | $ | 249 | $ | 410 | $ | (161 | ) | $ | 555 | $ | 853 | $ | (298 | ) | ||||||||||||||||||||
Capacity revenue (a) | 313 | 297 | 16 | 601 | 559 | 42 | 155 | 165 | (10 | ) | 309 | 307 | 2 | |||||||||||||||||||||||||||||||||
Retail revenue | 1,816 | 1,605 | 211 | 3,302 | 2,946 | 356 | 1,745 | 1,813 | (68 | ) | 3,351 | 3,298 | 53 | |||||||||||||||||||||||||||||||||
Mark-to-market for economic hedging activities | 15 | 41 | (26 | ) | (91 | ) | 159 | (250 | ) | 241 | 10 | 231 | 261 | (86 | ) | 347 | ||||||||||||||||||||||||||||||
Contract amortization | (14 | ) | (14 | ) | — | (28 | ) | (29 | ) | 1 | ||||||||||||||||||||||||||||||||||||
Other revenues (b) | 119 | 116 | 3 | 267 | 205 | 62 | 75 | 63 | 12 | 154 | 154 | — | ||||||||||||||||||||||||||||||||||
Total operating revenues | 2,922 | 2,701 | 221 | 5,343 | 5,083 | 260 | 2,465 | 2,461 | 4 | 4,630 | 4,526 | 104 | ||||||||||||||||||||||||||||||||||
Operating Costs and Expenses | ||||||||||||||||||||||||||||||||||||||||||||||
Cost of sales (c) | 1,515 | 1,422 | (93 | ) | 2,908 | 2,683 | (225 | ) | ||||||||||||||||||||||||||||||||||||||
Cost of Sales (c) | 1,273 | 1,453 | 180 | 2,614 | 2,775 | 161 | ||||||||||||||||||||||||||||||||||||||||
Mark-to-market for economic hedging activities | 86 | (18 | ) | (104 | ) | (216 | ) | 118 | 334 | 220 | 86 | (134 | ) | 220 | (216 | ) | (436 | ) | ||||||||||||||||||||||||||||
Contract and emissions credit amortization (c) | 7 | 8 | 1 | 13 | 16 | 3 | 6 | 7 | 1 | 11 | 13 | 2 | ||||||||||||||||||||||||||||||||||
Operations and maintenance | 360 | 340 | (20 | ) | 730 | 712 | (18 | ) | 284 | 282 | (2 | ) | 531 | 573 | 42 | |||||||||||||||||||||||||||||||
Other cost of operations | 83 | 89 | 6 | 174 | 175 | 1 | 62 | 61 | (1 | ) | 120 | 129 | 9 | |||||||||||||||||||||||||||||||||
Total cost of operations | 2,051 | 1,841 | (210 | ) | 3,609 | 3,704 | (95 | ) | 1,845 | 1,889 | 44 | 3,496 | 3,274 | (222 | ) | |||||||||||||||||||||||||||||||
Depreciation and amortization | 227 | 260 | 33 | 462 | 517 | 55 | 85 | 112 | 27 | 170 | 232 | 62 | ||||||||||||||||||||||||||||||||||
Impairment losses | 74 | 63 | (11 | ) | 74 | 63 | (11 | ) | 1 | 74 | 73 | 1 | 74 | 73 | ||||||||||||||||||||||||||||||||
Selling, general and administrative | 211 | 221 | 10 | 402 | 481 | 79 | 211 | 200 | (11 | ) | 405 | 376 | (29 | ) | ||||||||||||||||||||||||||||||||
Reorganization costs | 23 | — | (23 | ) | 43 | — | (43 | ) | 2 | 23 | 21 | 15 | 43 | 28 | ||||||||||||||||||||||||||||||||
Development costs | 16 | 18 | 2 | 29 | 35 | 6 | 2 | 3 | 1 | 4 | 8 | 4 | ||||||||||||||||||||||||||||||||||
Total operating costs and expenses | 2,602 | 2,403 | (199 | ) | 4,619 | 4,800 | 181 | 2,146 | 2,301 | 155 | 4,091 | 4,007 | (84 | ) | ||||||||||||||||||||||||||||||||
Other income - affiliate | — | 39 | (39 | ) | — | 87 | (87 | ) | ||||||||||||||||||||||||||||||||||||||
Gain on sale of assets | 14 | 2 | 12 | 16 | 4 | 12 | 1 | 14 | (13 | ) | 2 | 16 | (14 | ) | ||||||||||||||||||||||||||||||||
Operating Income | 334 | 339 | (5 | ) | 740 | 374 | 366 | 320 | 174 | 146 | 541 | 535 | 6 | |||||||||||||||||||||||||||||||||
Other Income/(Expense) | ||||||||||||||||||||||||||||||||||||||||||||||
Equity in earnings/(losses) of unconsolidated affiliates | 18 | (3 | ) | 21 | 16 | 2 | 14 | — | 5 | (5 | ) | (21 | ) | 6 | (27 | ) | ||||||||||||||||||||||||||||||
Other (losses)/income, net | (20 | ) | 14 | (34 | ) | (23 | ) | 26 | (49 | ) | ||||||||||||||||||||||||||||||||||||
Other income/(expense), net | 20 | (23 | ) | 43 | 32 | (23 | ) | 55 | ||||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment, net | (1 | ) | — | (1 | ) | (3 | ) | (2 | ) | (1 | ) | (47 | ) | (1 | ) | (46 | ) | (47 | ) | (3 | ) | (44 | ) | |||||||||||||||||||||||
Interest expense | (202 | ) | (247 | ) | 45 | (369 | ) | (471 | ) | 102 | (105 | ) | (123 | ) | 18 | (219 | ) | (239 | ) | 20 | ||||||||||||||||||||||||||
Total other expense | (205 | ) | (236 | ) | 31 | (379 | ) | (445 | ) | 66 | (132 | ) | (142 | ) | 10 | (255 | ) | (259 | ) | 4 | ||||||||||||||||||||||||||
Income/(Loss) from Continuing Operations before Income Taxes | 129 | 103 | 26 | 361 | (71 | ) | 432 | |||||||||||||||||||||||||||||||||||||||
Income tax expense/(benefit) | 8 | 4 | 4 | 7 | (1 | ) | 8 | |||||||||||||||||||||||||||||||||||||||
Income/(Loss) from Continuing Operations | 121 | 99 | 22 | 354 | (70 | ) | 424 | |||||||||||||||||||||||||||||||||||||||
Loss from discontinued operations, net of income tax | (25 | ) | (741 | ) | 716 | (25 | ) | (775 | ) | 750 | ||||||||||||||||||||||||||||||||||||
Net Income/(Loss) | 96 | (642 | ) | 738 | 329 | (845 | ) | 1,174 | ||||||||||||||||||||||||||||||||||||||
Less: Net income/(loss) attributable to noncontrolling interest and redeemable noncontrolling interest | 24 | (16 | ) | 40 | (22 | ) | (55 | ) | 33 | |||||||||||||||||||||||||||||||||||||
Net Income/(Loss) Attributable to NRG Energy, Inc. | $ | 72 | $ | (626 | ) | $ | 698 | $ | 351 | $ | (790 | ) | $ | 1,141 | ||||||||||||||||||||||||||||||||
Income from Continuing Operations Before Income Taxes | 188 | 32 | 156 | 286 | 276 | 10 | ||||||||||||||||||||||||||||||||||||||||
Income tax (benefit)/expense | (1 | ) | 5 | 6 | 3 | 11 | 8 | |||||||||||||||||||||||||||||||||||||||
Income from Continuing Operations | 189 | 27 | 162 | 283 | 265 | 18 | ||||||||||||||||||||||||||||||||||||||||
Income from discontinued operations, net of income tax | 13 | 69 | (56 | ) | 401 | 64 | 337 | |||||||||||||||||||||||||||||||||||||||
Net Income | 202 | 96 | 106 | 684 | 329 | 355 | ||||||||||||||||||||||||||||||||||||||||
Less: Net income/(loss) attributable to noncontrolling interest and redeemable interests | 1 | 24 | (23 | ) | 1 | (22 | ) | 23 | ||||||||||||||||||||||||||||||||||||||
Net Income Attributable to NRG Energy, Inc. | $ | 201 | $ | 72 | $ | 129 | $ | 683 | $ | 351 | $ | 332 | ||||||||||||||||||||||||||||||||||
Business Metrics | ||||||||||||||||||||||||||||||||||||||||||||||
Average natural gas price — Henry Hub ($/MMBtu) | $ | 2.80 | $ | 3.18 | (12 | )% | $ | 2.90 | $ | 3.25 | (11 | )% | $ | 2.64 | $ | 2.80 | (6 | )% | $ | 2.89 | $ | 2.90 | — | % |
Average on Peak Power Price ($/MWh) | Average on Peak Power Price ($/MWh) | |||||||||||||||||||
Three months ended June 30, | Three months ended June 30, | |||||||||||||||||||
Region | 2018 | 2017 | Change % | 2019 | 2018 | Change % | ||||||||||||||
Gulf Coast (a) | ||||||||||||||||||||
Texas | ||||||||||||||||||||
ERCOT - Houston | $ | 34.82 | $ | 46.03 | (24 | )% | $ | 31.88 | $ | 34.82 | (8 | )% | ||||||||
ERCOT - North | 34.89 | 27.80 | 26 | % | 30.13 | 34.89 | (14 | )% | ||||||||||||
MISO - Louisiana Hub | 44.20 | 42.77 | 3 | % | 33.40 | 44.20 | (24 | )% | ||||||||||||
East/West | ||||||||||||||||||||
NY J/NYC | 36.41 | 39.35 | (7 | )% | 29.52 | 36.41 | (19 | )% | ||||||||||||
NEPOOL | 36.28 | 33.57 | 8 | % | 27.15 | 36.28 | (25 | )% | ||||||||||||
COMED (PJM) | 31.88 | 33.40 | (5 | )% | 26.78 | 31.88 | (16 | )% | ||||||||||||
PJM West Hub | 39.73 | 32.79 | 21 | % | 28.54 | 39.73 | (28 | )% | ||||||||||||
CAISO - NP15(c) | 27.37 | 28.29 | (3 | )% | ||||||||||||||||
CAISO - SP15(c) | 27.75 | 30.72 | (10 | )% | ||||||||||||||||
CAISO - SP15(b) | 23.30 | 27.75 | (16 | )% |
Average Realized Power Price ($/MWh) | ||||||||||
Three months ended June 30, | ||||||||||
Region | 2018 | 2017 | Change % | |||||||
Gulf Coast | $ | 36.33 | $ | 34.68 | 5 | % | ||||
East/West (a) | 35.63 | 36.67 | (3 | )% |
Average Realized Power Price ($/MWh) | ||||||||||
Three months ended June 30, | ||||||||||
Region | 2019 | 2018 | Change % | |||||||
Texas | $ | 43.59 | $ | 36.96 | 18 | % | ||||
East/West/Other (a)(b) | 34.60 | 43.39 | (20 | )% |
Three months ended June 30, 2018 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West(a) | Subtotal | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | — | $ | 508 | $ | 144 | $ | 652 | $ | 79 | $ | 192 | $ | (250 | ) | $ | 673 | ||||||||||||||
Capacity revenue | — | 68 | 160 | 228 | — | 87 | (2 | ) | 313 | ||||||||||||||||||||||
Retail revenue | 1,817 | — | — | — | — | — | (1 | ) | 1,816 | ||||||||||||||||||||||
Mark-to-market for economic hedging activities | — | 289 | (15 | ) | 274 | 5 | — | (264 | ) | 15 | |||||||||||||||||||||
Contract amortization | — | 4 | — | 4 | — | (18 | ) | — | (14 | ) | |||||||||||||||||||||
Other revenue (b) | — | 42 | 18 | 60 | 29 | 46 | (16 | ) | 119 | ||||||||||||||||||||||
Operating revenue | 1,817 | 911 | 307 | 1,218 | 113 | 307 | (533 | ) | 2,922 | ||||||||||||||||||||||
Cost of fuel | (4 | ) | (260 | ) | (70 | ) | (330 | ) | — | (9 | ) | (25 | ) | (368 | ) | ||||||||||||||||
Other cost of sales(c) | (1,315 | ) | (81 | ) | (21 | ) | (102 | ) | (2 | ) | (8 | ) | 280 | (1,147 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (346 | ) | (4 | ) | — | (4 | ) | — | — | 264 | (86 | ) | |||||||||||||||||||
Contract and emission credit amortization | — | (7 | ) | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||
Gross margin | $ | 152 | $ | 559 | $ | 216 | $ | 775 | $ | 111 | $ | 290 | $ | (14 | ) | $ | 1,314 | ||||||||||||||
Less: Mark-to-market for economic hedging activities, net | (346 | ) | 285 | (15 | ) | 270 | 5 | — | — | (71 | ) | ||||||||||||||||||||
Less: Contract and emission credit amortization, net | — | (3 | ) | — | (3 | ) | — | (18 | ) | — | (21 | ) | |||||||||||||||||||
Economic gross margin | $ | 498 | $ | 277 | $ | 231 | $ | 508 | $ | 106 | $ | 308 | $ | (14 | ) | $ | 1,406 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 13,982 | 3,616 | 1,211 | 2,308 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 12,959 | 2,903 | 1,211 | 2,675 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $13 million of intercompany revenue to NRG Yield. | |||||||||||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits | |||||||||||||||||||||||||||||||
(d) MWh sold excludes generation at facilities in East/West and NRG Yield that generate revenue under capacity agreements. | |||||||||||||||||||||||||||||||
(e) Does not include thermal MWh of 9 thousand or MWt of 462 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 28 thousand or MWt of 462 thousand for thermal generated by NRG Yield. |
Three months ended June 30, 2019 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
($ In millions) | Retail | Texas | East/West/Other(a) | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue | $ | — | $ | 497 | $ | 117 | $ | 614 | $ | (365 | ) | $ | 249 | ||||||||||
Capacity revenue | — | — | 154 | 154 | 1 | 155 | |||||||||||||||||
Retail revenue | 1,746 | — | — | — | (1 | ) | 1,745 | ||||||||||||||||
Mark-to-market for economic hedging activities | 2 | 460 | 64 | 524 | (285 | ) | 241 | ||||||||||||||||
Other revenue | — | 16 | 59 | 75 | — | 75 | |||||||||||||||||
Operating revenue | 1,748 | 973 | 394 | 1,367 | (650 | ) | 2,465 | ||||||||||||||||
Cost of fuel | (12 | ) | (203 | ) | (65 | ) | (268 | ) | 1 | (279 | ) | ||||||||||||
Other cost of sales(b) | (1,276 | ) | (23 | ) | (59 | ) | (82 | ) | 364 | (994 | ) | ||||||||||||
Mark-to-market for economic hedging activities | (486 | ) | (16 | ) | (3 | ) | (19 | ) | 285 | (220 | ) | ||||||||||||
Contract and emission credit amortization | — | (6 | ) | — | (6 | ) | — | (6 | ) | ||||||||||||||
Gross margin | $ | (26 | ) | $ | 725 | $ | 267 | $ | 992 | $ | — | $ | 966 | ||||||||||
Less: Mark-to-market for economic hedging activities, net | (484 | ) | 444 | 61 | 505 | — | 21 | ||||||||||||||||
Less: Contract and emission credit amortization, net | — | (6 | ) | — | (6 | ) | — | (6 | ) | ||||||||||||||
Economic gross margin | $ | 458 | $ | 287 | $ | 206 | $ | 493 | $ | — | $ | 951 | |||||||||||
Business Metrics | |||||||||||||||||||||||
MWh sold (thousands) | 11,401 | 3,410 | |||||||||||||||||||||
MWh generated (thousands) | 10,645 | 2,535 | |||||||||||||||||||||
(a) Includes International, Renewables, and Generation eliminations | |||||||||||||||||||||||
(b) Includes purchased energy, capacity and emissions credits |
Three months ended June 30, 2017 | Three months ended June 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Generation | Generation | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West(a) | Subtotal | Renewables | NRG Yield | Corporate/Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||
($ In millions) | Retail | Texas | East/West/Other(a)(b) | Subtotal | Corporate/Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
Energy revenue | $ | — | $ | 484 | $ | 184 | $ | 668 | $ | 105 | $ | 177 | $ | (294 | ) | $ | 656 | $ | — | $ | 402 | $ | 259 | $ | 661 | $ | (251 | ) | $ | 410 | ||||||||||||||||||||||||
Capacity revenue | — | 68 | 144 | 212 | — | 85 | — | 297 | — | — | 165 | 165 | — | 165 | ||||||||||||||||||||||||||||||||||||||||
Retail revenue | 1,605 | — | — | — | — | — | — | 1,605 | 1,814 | — | — | — | (1 | ) | 1,813 | |||||||||||||||||||||||||||||||||||||||
Mark-to-market for economic hedging activities | (2 | ) | (90 | ) | 13 | (77 | ) | (3 | ) | — | 123 | 41 | — | 296 | (22 | ) | 274 | (264 | ) | 10 | ||||||||||||||||||||||||||||||||||
Contract amortization | — | 3 | — | 3 | — | (17 | ) | — | (14 | ) | ||||||||||||||||||||||||||||||||||||||||||||
Other revenue (b) | — | 55 | 21 | 76 | 17 | 43 | (20 | ) | 116 | |||||||||||||||||||||||||||||||||||||||||||||
Other revenue | — | 10 | 57 | 67 | (4 | ) | 63 | |||||||||||||||||||||||||||||||||||||||||||||||
Operating revenue | 1,603 | 520 | 362 | 882 | 119 | 288 | (191 | ) | 2,701 | 1,814 | 708 | 459 | 1,167 | (520 | ) | 2,461 | ||||||||||||||||||||||||||||||||||||||
Cost of fuel | (2 | ) | (284 | ) | (82 | ) | (366 | ) | (1 | ) | (7 | ) | 5 | (371 | ) | (3 | ) | (188 | ) | (115 | ) | (303 | ) | — | (306 | ) | ||||||||||||||||||||||||||||
Other cost of sales(c) | (1,211 | ) | (79 | ) | (52 | ) | (131 | ) | (2 | ) | (7 | ) | 300 | (1,051 | ) | (1,315 | ) | (35 | ) | (50 | ) | (85 | ) | 254 | (1,146 | ) | ||||||||||||||||||||||||||||
Mark-to-market for economic hedging activities | 158 | (15 | ) | (2 | ) | (17 | ) | — | — | (123 | ) | 18 | (346 | ) | (3 | ) | (1 | ) | (4 | ) | 264 | (86 | ) | |||||||||||||||||||||||||||||||
Contract and emission credit amortization | — | (7 | ) | (1 | ) | (8 | ) | — | — | (8 | ) | — | (7 | ) | — | (7 | ) | — | (7 | ) | ||||||||||||||||||||||||||||||||||
Gross margin | $ | 548 | $ | 135 | $ | 225 | $ | 360 | $ | 116 | $ | 274 | $ | (9 | ) | $ | 1,289 | $ | 150 | $ | 475 | $ | 293 | $ | 768 | $ | (2 | ) | $ | 916 | ||||||||||||||||||||||||
Less: Mark-to-market for economic hedging activities, net | 156 | (105 | ) | 11 | (94 | ) | (3 | ) | — | — | 59 | (346 | ) | 293 | (23 | ) | 270 | — | (76 | ) | ||||||||||||||||||||||||||||||||||
Less: Contract and emission credit amortization, net | — | (4 | ) | (1 | ) | (5 | ) | — | (17 | ) | — | (22 | ) | — | (7 | ) | — | (7 | ) | — | (7 | ) | ||||||||||||||||||||||||||||||||
Economic gross margin | $ | 392 | $ | 244 | $ | 215 | $ | 459 | $ | 119 | $ | 291 | $ | (9 | ) | $ | 1,252 | $ | 496 | $ | 189 | $ | 316 | $ | 505 | $ | (2 | ) | $ | 999 | ||||||||||||||||||||||||
Business Metrics | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 13,958 | 4,598 | 1,059 | 2,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MWh generated (thousands) (f) | 13,101 | 3,079 | 1,059 | 2,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $7 million of intercompany revenue to NRG Yield. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
MWh sold (thousands) | 10,876 | 5,969 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
MWh generated (thousands) | 9,848 | 5,255 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(a) Includes International, Renewables, and Generation eliminations | (a) Includes International, Renewables, and Generation eliminations | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(b) Includes BETM which was sold as of July 31, 2018 | (b) Includes BETM which was sold as of July 31, 2018 | (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 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, | Three months ended June 30, | |||||||||
Weather Metrics | Gulf Coast | East/West | Texas | East/West/Other(b) | ||||||
2018 | ||||||||||
2019 | ||||||||||
CDDs (a) | 1,067 | 265 | 934 | 458 | ||||||
HDDs (a) | 108 | 425 | 70 | 283 | ||||||
2017 | ||||||||||
2018 | ||||||||||
CDDs | 921 | 281 | 1,101 | 521 | ||||||
HDDs | 41 | 380 | 91 | 325 | ||||||
10-year average | ||||||||||
CDDs | 970 | 259 | 1,009 | 487 | ||||||
HDDs | 67 | 429 | 60 | 310 |
(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 |
Three months ended June 30, | Three months ended June 30, | |||||||||||||
(In millions except otherwise noted) | 2018 | 2017 | ||||||||||||
(In millions, except as otherwise noted) | 2019 | 2018 | ||||||||||||
Retail revenue | $ | 1,689 | $ | 1,515 | $ | 1,650 | $ | 1,687 | ||||||
Supply management revenue | 42 | 52 | 50 | 42 | ||||||||||
Capacity revenue | 86 | 38 | 46 | 85 | ||||||||||
Customer mark-to-market | — | (2 | ) | 2 | — | |||||||||
Operating revenue (a) | 1,817 | 1,603 | 1,748 | 1,814 | ||||||||||
Cost of sales (b) | (1,319 | ) | (1,213 | ) | (1,288 | ) | (1,318 | ) | ||||||
Mark-to-market for economic hedging activities | (346 | ) | 158 | (486 | ) | (346 | ) | |||||||
Gross Margin | $ | 152 | $ | 548 | $ | (26 | ) | $ | 150 | |||||
Less: Mark-to-market for economic hedging activities, net | (346 | ) | 156 | (484 | ) | (346 | ) | |||||||
Economic Gross Margin | $ | 498 | $ | 392 | $ | 458 | $ | 496 | ||||||
Business Metrics | ||||||||||||||
Mass electricity sales volume — GWh - Gulf Coast | 9,802 | 9,234 | ||||||||||||
Mass electricity sales volume — GWh - Texas | 9,130 | 9,793 | ||||||||||||
Mass electricity sales volume — GWh - All other regions | 1,592 | 1,357 | 1,913 | 1,600 | ||||||||||
C&I electricity sales volume — GWh - All regions | 5,403 | 5,308 | 5,008 | 5,403 | ||||||||||
Natural gas sales volumes (MDth) | 1,244 | 438 | 3,054 | 1,244 | ||||||||||
Average Retail Mass customer count (in thousands) | 2,973 | 2,859 | 3,306 | 2,966 | ||||||||||
Ending Retail Mass customer count (in thousands) | 3,173 | 2,887 | 3,277 | 3,149 |
(a) | Includes intercompany sales of |
(b) | Includes intercompany purchases of $374 million and $251 million in 2019 and |
(In millions) | ||||
Higher gross margin due to higher revenue of $63 million or approximately $3.25 per MWh, driven by customer product, term and mix, offset by higher supply costs of $25 million or approximately $1.25 per MWh, driven by an increase in power prices | $ | 38 | ||
Higher gross margin from the Business Solutions unit reflecting the early settlement of capacity obligations for 2018 | 34 | |||
Higher gross margin due to an increase in load of 790,000 MWh driven by warmer weather conditions in 2018 as compared to 2017 | 27 | |||
Higher gross margin due to higher volumes driven by higher average customer counts primarily driven by the XOOM acquisition in June 2018 | 7 | |||
Increase in economic gross margin | $ | 106 | ||
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (502 | ) | ||
Decrease in gross margin | $ | (396 | ) |
(In millions) | ||||
Lower gross margin from Business Solutions primarily due to a reduction in the volume of an early settlement of capacity obligations in 2019 as compared to 2018 | $ | (28 | ) | |
Lower gross margin due to the unfavorable impact from weather that resulted in a decrease in load of 750,000 MWh in 2019 as compared to 2018 | (28 | ) | ||
Higher gross margin primarily driven by higher volumes from XOOM and other customer acquisitions | 10 | |||
Higher gross margin from Mass due to increased revenues of approximately $5.75 per MWh or $62 million primarily driven by margin enhancement initiatives, partially offset by higher supply costs driven by an increase in power prices of approximately $5.00 per MWh or $54 million | 8 | |||
Business Solutions gross margin remained unchanged as lower revenues were offset by lower costs. Lower revenues were driven by lower rates to customers of approximately $5.25 per MWh or $27 million, offset by lower supply costs driven by a decrease in power prices at the time of procurement of approximately $5.25 per MWh or $27 million | — | |||
Decrease in economic gross margin | $ | (38 | ) | |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (138 | ) | ||
Decrease in gross margin | $ | (176 | ) |
(In millions) | |||
Higher gross margin due to a 5% increase in average realized prices in South Central and a 6% increase in average realized prices in Texas | $ | 45 | |
Higher capacity margins due to an increase in load demand in the South Central business | 10 | ||
Lower energy margin due to a 14% increase in supply cost on load contracts | (9 | ) | |
Lower capacity revenue due to the cancellation of the Greens Bayou RMR agreement in 2017 | (6 | ) | |
Lower gross margin from commercial optimization activities | (5 | ) | |
Other | (2 | ) | |
Increase in economic gross margin | $ | 33 | |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 391 | ||
Increase in gross margin | $ | 424 |
(In millions) | |||
Higher gross margin due to a 18% increase in average realized prices primarily due to the intersegment transactions at annual average power prices | $ | 58 | |
Higher gross margin driven by planned outages at STP, Cedar Bayou and forced outages at T.H. Wharton and Greens Bayou in 2018 | 26 | ||
Higher gross margin from commercial optimization activities | 7 | ||
Higher gross margin due to margin enhancement initiatives from reduced fuel supply costs | 7 | ||
Increase in economic gross margin | $ | 98 | |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 151 | ||
Increase in contract and emission credit amortization | 1 | ||
Increase in gross margin | $ | 250 |
(In millions) | |||
Higher gross margin due to a 80% increase in New England cleared capacity pricing | $ | 16 | |
Higher gross margin due to a 26% increase in PJM cleared capacity pricing which relates to the first full period of capacity performance product pricing | 15 | ||
Lower gross margin due to a 29% decrease in capacity pricing in New York of $15 million and decreases in capacity pricing and volumes due to the Long Beach capacity toll expiration in July 2017 of $4 million | (19 | ) | |
Lower gross margin due to a 6% decrease in generation volumes due to timing of planned and unplanned outages at Midwest Generation, offset by favorable fuel costs | (8 | ) | |
Higher gross margin due to insurance proceeds from outages of $14 million in 2018, compared to business interruption proceeds of $8 million in 2017 | 6 | ||
Other | 6 | ||
Increase in economic gross margin | $ | 16 | |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (26 | ) | |
Increase in contract and emission credit amortization | 1 | ||
Decrease in gross margin | $ | (9 | ) |
(In millions) | |||
Lower gross margin due to the deconsolidations of Ivanpah in April 2018 and Agua Caliente in August 2018 | $ | (43 | ) |
Lower gross margin primarily due to the sale of BETM, Keystone and Conemaugh in the third quarter of 2018, Guam in the first quarter of 2019 and the retirement of Encina in December 2018 | (41 | ) | |
Lower gross margin due to insurance proceeds from outages in 2018 | (14 | ) | |
Lower gross margin due to a 22% decrease in realized capacity pricing in New York | (10 | ) | |
Lower gross margin due to an extended forced outage at the Sunrise facility in 2019 | (7 | ) | |
Lower gross margin due to a 11% decrease in average realized prices at Cottonwood | (7 | ) | |
Lower gross margin driven by a decrease in economic generation volume due to planned outages in 2019 | (6 | ) | |
Higher gross margin due to a 20% increase in PJM capacity prices and a 10% increase in ISO-NE capacity prices | 16 | ||
Higher gross margin from commercial optimization activities | 6 | ||
Other | (4 | ) | |
Decrease in economic gross margin | $ | (110 | ) |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 84 | ||
Decrease in gross margin | $ | (26 | ) |
Three months ended June 30, 2018 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Retail | Gulf Coast | East/West | 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 | $ | — | $ | (52 | ) | $ | (8 | ) | $ | — | $ | 28 | $ | (32 | ) | ||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | — | 341 | (7 | ) | 5 | (292 | ) | 47 | |||||||||||||||
Total mark-to-market gains/(losses) in operating revenues | $ | — | $ | 289 | $ | (15 | ) | $ | 5 | $ | (264 | ) | $ | 15 | |||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 62 | $ | (2 | ) | $ | (3 | ) | $ | — | $ | (28 | ) | $ | 29 | ||||||||
Reversal of acquired gain positions related to economic hedges | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (407 | ) | (2 | ) | 3 | — | 292 | (114 | ) | ||||||||||||||
Total mark-to-market (losses)/gains in operating costs and expenses | $ | (346 | ) | $ | (4 | ) | $ | — | $ | — | $ | 264 | $ | (86 | ) |
Three months ended June 30, 2019 | |||||||||||||||||||
Generation | |||||||||||||||||||
Retail | Texas | East/West/Other | 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 | $ | (1 | ) | $ | (74 | ) | $ | 16 | $ | 59 | $ | — | |||||||
Net unrealized gains on open positions related to economic hedges | 3 | 534 | 48 | (344 | ) | 241 | |||||||||||||
Total mark-to-market gains in operating revenues | $ | 2 | $ | 460 | $ | 64 | $ | (285 | ) | $ | 241 | ||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||
Reversal of previously recognized unrealized losses on settled positions related to economic hedges | $ | 69 | $ | 1 | $ | — | $ | (59 | ) | $ | 11 | ||||||||
Reversal of acquired loss positions related to economic hedges | 1 | — | — | — | 1 | ||||||||||||||
Net unrealized (losses) on open positions related to economic hedges | (556 | ) | (17 | ) | (3 | ) | 344 | (232 | ) | ||||||||||
Total mark-to-market (losses) in operating costs and expenses | $ | (486 | ) | $ | (16 | ) | $ | (3 | ) | $ | 285 | $ | (220 | ) |
(a) | Represents the elimination of the intercompany activity between Retail and |
Three months ended June 30, 2017 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Retail | Gulf Coast | East/West | 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 | $ | (1 | ) | $ | (7 | ) | $ | (11 | ) | $ | — | $ | 50 | $ | 31 | ||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (1 | ) | (83 | ) | 24 | (3 | ) | 73 | 10 | ||||||||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (2 | ) | $ | (90 | ) | $ | 13 | $ | (3 | ) | $ | 123 | $ | 41 | ||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 45 | $ | (4 | ) | $ | — | $ | — | $ | (50 | ) | $ | (9 | ) | ||||||||
Reversal of acquired loss positions related to economic hedges | 1 | — | — | — | — | 1 | |||||||||||||||||
Net unrealized gains/(losses)on open positions related to economic hedges | 112 | (11 | ) | (2 | ) | — | (73 | ) | 26 | ||||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 158 | $ | (15 | ) | $ | (2 | ) | $ | — | $ | (123 | ) | $ | 18 |
Three months ended June 30, 2018 | |||||||||||||||||||
Generation | |||||||||||||||||||
Retail | Texas | East/West/Other | Eliminations(a) | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges | $ | — | $ | (53 | ) | $ | (6 | ) | $ | 28 | $ | (31 | ) | ||||||
Net unrealized gains/(losses) on open positions related to economic hedges | — | 349 | (16 | ) | (292 | ) | 41 | ||||||||||||
Total mark-to-market gains/(losses) in operating revenues | $ | — | $ | 296 | $ | (22 | ) | $ | (264 | ) | $ | 10 | |||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 62 | $ | (1 | ) | $ | (4 | ) | $ | (28 | ) | $ | 29 | ||||||
Reversal of acquired gain positions related to economic hedges | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (407 | ) | (2 | ) | 3 | 292 | (114 | ) | |||||||||||
Total mark-to-market (losses) in operating costs and expenses | $ | (346 | ) | $ | (3 | ) | $ | (1 | ) | $ | 264 | $ | (86 | ) |
(a) | Represents the elimination of the intercompany activity between Retail and |
Three months ended June 30, | Three months ended June 30, | |||||||||||||
(In millions) | 2018 | 2017 | 2019 | 2018 | ||||||||||
Trading gains | ||||||||||||||
Realized | $ | 25 | $ | 14 | $ | 15 | $ | 25 | ||||||
Unrealized | 5 | 12 | 12 | 5 | ||||||||||
Total trading gains | $ | 30 | $ | 26 | $ | 27 | $ | 30 |
Retail | Generation | Renewables | NRG Yield | Corporate | Eliminations | Total | ||||||||||||||||||||||||
Gulf Coast | East/West(a) | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||
Three months ended June 30, 2018 | $ | 49 | $ | 156 | $ | 99 | $ | 25 | $ | 42 | $ | 1 | $ | (12 | ) | $ | 360 | |||||||||||||
Three months ended June 30, 2017 | $ | 57 | $ | 105 | $ | 105 | $ | 34 | $ | 46 | $ | 5 | $ | (12 | ) | $ | 340 |
Generation | Corporate | Eliminations | |||||||||||||||||||||
Retail | Texas | East/West/Other | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three months ended June 30, 2019 | $ | 56 | $ | 114 | $ | 113 | $ | 2 | $ | (1 | ) | $ | 284 | ||||||||||
Three months ended June 30, 2018 | $ | 49 | $ | 123 | $ | 112 | $ | — | $ | (2 | ) | $ | 282 |
(In millions) | |||
2017 proceeds and 2018 payments in settlement of certain legal matters | $ | 33 | |
Increase in operations and maintenance due to the gain on sale of the Jewett Mine dragline in 2017 | 18 | ||
Increased deactivation costs primarily at Dunkirk | 7 | ||
Increase in major maintenance primarily due to outages at W.A. Parish and Big Cajun II | 6 | ||
Decrease in NRG Yield operations and maintenance expense due to lower costs related to forced outages at Walnut Creek in 2018 compared to 2017, as well as lower losses on disposal of assets at Walnut Creek and El Segundo | (5 | ) | |
Decrease in East/West operations and maintenance expense due to major maintenance at Sunrise in 2017 | (5 | ) | |
Decrease in Renewables operations and maintenance expense primarily from the deconsolidation of Ivanpah | (9 | ) | |
Decrease in operations and maintenance expense due to cost efficiencies as a result of the Transformation Plan | (25 | ) | |
$ | 20 |
(In millions) | |||
Increase as a result of timing of the realization of Transformation Plan savings | $ | 20 | |
Increase in investments in Texas plants in preparation for summer operations | 14 | ||
Increase primarily related to the lease of Cottonwood from February 4, 2019 | 10 | ||
Increase due to the XOOM acquisition in June 2018 | 3 | ||
Decrease due to the timing of outages in 2019 | (23 | ) | |
Decrease due to 2018 payments in settlement of certain legal matters | (10 | ) | |
Decrease due to the deconsolidations of Ivanpah and Agua Caliente in 2018 | (6 | ) | |
Other | (6 | ) | |
Increase in operations and maintenance expense | $ | 2 |
Generation | |||||||||||||||
Retail | Texas | East/West/Other | Total | ||||||||||||
(In millions) | |||||||||||||||
Three months ended June 30, 2019 | $ | 27 | $ | 16 | $ | 19 | $ | 62 | |||||||
Three months ended June 30, 2018 | $ | 26 | $ | 15 | $ | 20 | $ | 61 |
Retail | Generation | Corporate | Total | ||||||||||||
(In millions) | |||||||||||||||
Three months ended June 30, 2019 | $ | 135 | $ | 71 | $ | 5 | $ | 211 | |||||||
Three months ended June 30, 2018 | 125 | 58 | 17 | 200 |
Retail | Generation | Renewables | NRG Yield | Corporate | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Three months ended June 30, 2018 | $ | 126 | $ | 55 | $ | 12 | $ | 7 | $ | 11 | $ | 211 | |||||||||||
Three months ended June 30, 2017 | 106 | 52 | 14 | 7 | 42 | 221 |
(In millions) | |||
Decrease in general and administrative expense from cost initiatives for the Transformation Plan | $ | (36 | ) |
Prior year fees associated with advisors engaged to assist the Company in its strategic review in 2017 | (6 | ) | |
Increase in bad debt expense primarily from increased usage due to weather | 6 | ||
Increase in expense for estimated legal settlements | 10 | ||
Increase in selling and marketing expense associated with costs incurred for margin enhancement initiatives | 16 | ||
$ | (10 | ) |
(In millions) | |||
Increase in selling and marketing expenses associated with costs incurred for margin enhancement initiatives | $ | 19 | |
Increase in bad debt expense primarily due to higher customer attrition | 12 | ||
Increase in selling expense due to the acquisition of XOOM in June 2018 | 3 | ||
Decrease due to additional litigation in 2018 | (10 | ) | |
Decrease in general and administrative expense from cost initiatives as a result of the Transformation Plan | (9 | ) | |
Decrease related to fees incurred in the acquisition of businesses | (3 | ) | |
Other | (1 | ) | |
Increase in selling, general and administrative expenses | $ | 11 |
(In millions) | |||
Decrease in derivative interest expense from changes in the fair value of interest rate swaps driven by increased interest rates in 2018 | $ | (35 | ) |
Decrease in interest expense related to repurchases of Senior Notes | (9 | ) | |
Decrease in interest expense related to Ivanpah deconsolidation | (6 | ) | |
Other | 4 | ||
$ | (46 | ) |
Average on Peak Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2018 | 2017 | Change % | |||||||
Gulf Coast (a) | ||||||||||
ERCOT - Houston (b) | $ | 33.98 | $ | 36.86 | (8 | )% | ||||
ERCOT - North(b) | 33.28 | 25.28 | 32 | % | ||||||
MISO - Louisiana Hub(c) | 45.22 | 43.71 | 3 | % | ||||||
East/West | ||||||||||
NY J/NYC(c) | 49.19 | 37.48 | 31 | % | ||||||
NEPOOL(c) | 51.07 | 33.69 | 52 | % | ||||||
COMED (PJM)(c) | 32.54 | 31.89 | 2 | % | ||||||
PJM West Hub(c) | 43.58 | 32.40 | 35 | % | ||||||
CAISO - NP15(c) | 30.05 | 27.38 | 10 | % | ||||||
CAISO - SP15(c) | 31.60 | 26.87 | 18 | % |
Average Realized Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2018 | 2017 | Change % | |||||||
Gulf Coast | $ | 34.85 | $ | 34.25 | 2 | % | ||||
East/West (a) | 40.69 | 40.20 | 1 | % |
Six months ended June 30, 2018 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West(a) | Subtotal | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | — | $ | 879 | $ | 362 | $ | 1,241 | $ | 156 | $ | 306 | $ | (411 | ) | $ | 1,292 | ||||||||||||||
Capacity revenue | — | 135 | 300 | 435 | — | 169 | (3 | ) | 601 | ||||||||||||||||||||||
Retail revenue | 3,304 | — | — | — | — | — | (2 | ) | 3,302 | ||||||||||||||||||||||
Mark-to-market for economic hedging activities | (6 | ) | (275 | ) | (25 | ) | (300 | ) | (5 | ) | — | 220 | (91 | ) | |||||||||||||||||
Contract amortization | — | 7 | — | 7 | — | (35 | ) | — | (28 | ) | |||||||||||||||||||||
Other revenue (b) | — | 128 | 34 | 162 | 48 | 92 | (35 | ) | 267 | ||||||||||||||||||||||
Operating revenue | 3,298 | 874 | 671 | 1,545 | 199 | 532 | (231 | ) | 5,343 | ||||||||||||||||||||||
Cost of fuel | (12 | ) | (454 | ) | (152 | ) | (606 | ) | (1 | ) | (23 | ) | (88 | ) | (730 | ) | |||||||||||||||
Other cost of sales(c) | (2,415 | ) | (164 | ) | (90 | ) | (254 | ) | (4 | ) | (14 | ) | 509 | (2,178 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | 446 | (7 | ) | (3 | ) | (10 | ) | — | — | (220 | ) | 216 | |||||||||||||||||||
Contract and emission credit amortization | — | (12 | ) | (1 | ) | (13 | ) | — | — | — | (13 | ) | |||||||||||||||||||
Gross margin | $ | 1,317 | $ | 237 | $ | 425 | $ | 662 | $ | 194 | $ | 495 | $ | (30 | ) | $ | 2,638 | ||||||||||||||
Less: Mark-to-market for economic hedging activities, net | 440 | (282 | ) | (28 | ) | (310 | ) | (5 | ) | — | — | 125 | |||||||||||||||||||
Less: Contract and emission credit amortization, net | — | (5 | ) | (1 | ) | (6 | ) | — | (35 | ) | — | (41 | ) | ||||||||||||||||||
Economic gross margin | $ | 877 | $ | 524 | $ | 454 | $ | 978 | $ | 199 | $ | 530 | $ | (30 | ) | $ | 2,554 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 25,220 | 8,110 | 2,227 | 3,924 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 23,146 | 5,463 | 2,227 | 4,729 | |||||||||||||||||||||||||||
(a) Includes International, BETM and Generation eliminations. | |||||||||||||||||||||||||||||||
(b) Renewables other revenue includes $26 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 18 thousand or MWt of 1,079 thousand for thermal sold by NRG Yield. | |||||||||||||||||||||||||||||||
(f) Does not include thermal MWh of 47 thousand or MWt of 987 thousand for thermal generated by NRG Yield. |
Six months ended June 30, 2017 | |||||||||||||||||||||||||||||||
Generation | |||||||||||||||||||||||||||||||
(In millions) | Retail | Gulf Coast | East/West(a) | Subtotal | Renewables | NRG Yield | Corporate/Eliminations | Total | |||||||||||||||||||||||
Energy revenue | $ | — | $ | 868 | $ | 408 | $ | 1,276 | $ | 174 | $ | 294 | $ | (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 | (1 | ) | 6 | — | 6 | — | (34 | ) | — | (29 | ) | ||||||||||||||||||||
Other revenue (b) | — | 102 | 20 | 122 | 36 | 85 | (38 | ) | 205 | ||||||||||||||||||||||
Operating revenue | 2,938 | 1,150 | 698 | 1,848 | 213 | 509 | (425 | ) | 5,083 | ||||||||||||||||||||||
Cost of fuel | (7 | ) | (498 | ) | (170 | ) | (668 | ) | (2 | ) | (18 | ) | 31 | (664 | ) | ||||||||||||||||
Other cost of sales(c) | (2,204 | ) | (157 | ) | (124 | ) | (281 | ) | (5 | ) | (12 | ) | 483 | (2,019 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | 20 | (24 | ) | (3 | ) | (27 | ) | — | — | (111 | ) | (118 | ) | ||||||||||||||||||
Contract and emission credit amortization | — | (14 | ) | (2 | ) | (16 | ) | — | — | — | (16 | ) | |||||||||||||||||||
Gross margin | $ | 747 | $ | 457 | $ | 399 | $ | 856 | $ | 206 | $ | 479 | $ | (22 | ) | $ | 2,266 | ||||||||||||||
Less: Mark-to-market for economic hedging activities, net | 20 | 17 | 1 | 18 | 3 | — | — | 41 | |||||||||||||||||||||||
Less: Contract and emission credit amortization, net | (1 | ) | (8 | ) | (2 | ) | (10 | ) | — | (34 | ) | — | (45 | ) | |||||||||||||||||
Economic gross margin | $ | 728 | $ | 448 | $ | 400 | $ | 848 | $ | 203 | $ | 513 | $ | (22 | ) | $ | 2,270 | ||||||||||||||
Business Metrics | |||||||||||||||||||||||||||||||
MWh sold (thousands)(d)(e) | 25,340 | 9,776 | 1,974 | 3,789 | |||||||||||||||||||||||||||
MWh generated (thousands) (f) | 23,790 | 6,096 | 1,974 | 4,244 | |||||||||||||||||||||||||||
(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 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, | |||||
Weather Metrics | Gulf Coast | East/West | |||
2018 | |||||
CDDs (a) | 1,200 | 283 | |||
HDDs (a) | 1,142 | 2,152 | |||
2017 | |||||
CDDs | 1,125 | 301 | |||
HDDs | 673 | 2,008 | |||
10-year average | |||||
CDDs | 1,062 | 276 | |||
HDDs | 1,103 | 2,206 |
Six months ended June 30, | |||||||
(In millions except otherwise noted) | 2018 | 2017 | |||||
Retail revenue | $ | 3,135 | $ | 2,813 | |||
Supply management revenue | 75 | 84 | |||||
Capacity revenue | 94 | 42 | |||||
Customer mark-to-market | (6 | ) | — | ||||
Contract amortization | — | (1 | ) | ||||
Other | — | — | |||||
Operating revenue (a) | 3,298 | 2,938 | |||||
Cost of sales (b) | (2,427 | ) | (2,211 | ) | |||
Mark-to-market for economic hedging activities | 446 | 20 | |||||
Gross Margin | $ | 1,317 | $ | 747 | |||
Less: Mark-to-market for economic hedging activities, net | 440 | 20 | |||||
Less: Contract amortization, net | — | (1 | ) | ||||
Economic Gross Margin | $ | 877 | $ | 728 | |||
Business Metrics | |||||||
Mass electricity sales volume — GWh - Gulf Coast | 17,745 | 16,218 | |||||
Mass electricity sales volume — GWh - All other regions | 3,310 | 2,998 | |||||
C&I electricity sales volume — GWh - All regions | 10,430 | 10,141 | |||||
Natural gas sales volumes (MDth) | 3,419 | 1,700 | |||||
Average Retail Mass customer count (in thousands) | 2,926 | 2,843 | |||||
Ending Retail Mass customer count (in thousands) (c) | 3,173 | 2,887 |
(In millions) | ||||
Higher gross margin due to higher revenue of $101 million or approximately $3.00 per MWh, driven by customer product, term and mix offset by higher supply costs of $40 million or approximately $1.25 per MWh, driven primarily by an increase in power prices | $ | 61 | ||
Higher gross margin from the Business Solutions unit reflecting the early settlement of capacity obligations for 2018 | 34 | |||
Higher gross margin due to an increase in load of 1,495,000 MWh driven by more favorable weather conditions in 2018 as compared to 2017 | 46 | |||
Higher gross margin due to higher volumes driven by higher average customer counts primarily driven by the XOOM acquisition in June 2018 | 8 | |||
Increase in economic gross margin | $ | 149 | ||
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 420 | |||
Increase in contract amortization | 1 | |||
Increase in gross margin | $ | 570 |
(In millions) | |||
Higher gross margin due to a 10% increase in average realized prices in South Central and a 2% increase in average realized prices in Texas | $ | 65 | |
Higher gross margin from sales of NOx emission credits | 35 | ||
Higher capacity margins due to an 15% increase in load demand in the South Central business | 29 | ||
Lower energy margin due to a 14% increase in supply cost on load contracts | (36 | ) | |
Lower capacity revenue due to the cancellation of the Greens Bayou RMR agreement in 2017 | (14 | ) | |
Other | (3 | ) | |
Increase in economic gross margin | $ | 76 | |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (299 | ) | |
Increase in contract and emission credit amortization | 3 | ||
Decrease in gross margin | $ | (220 | ) |
(In millions) | |||
Higher gross margin due to a 88% increase in New England cleared capacity pricing | $ | 34 | |
Higher gross margin due to a 23% increase in PJM cleared capacity pricing which relates to the first full period of capacity performance product pricing | 29 | ||
Higher gross margin from commercial optimization activities | 15 | ||
Higher gross margin by BETM due to higher gains in congestion strategies | 14 | ||
Higher gross margin due to a net overall increase in capacity volumes sold in New York | 11 | ||
Lower gross margin due to a 31% decrease in capacity pricing in New York of $30 million and decreases in capacity pricing and volumes due to the Long Beach capacity toll expiration in July 2017 of $9 million | (39 | ) | |
Lower gross margin due to lower load contracted prices coupled with lower contracted volumes | (13 | ) | |
Lower gross margin due to a 10% decrease in generation volumes due to timing of planned and unplanned outages at Midwest Generation and Arthur Kill, offset by favorable fuel costs | (10 | ) | |
Higher gross margin due to insurance proceeds from outages of $14 million in 2018, compared to business interruption proceeds of $8 million in 2017 | 6 | ||
Other | 7 | ||
Increase in economic gross margin | $ | 54 | |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (29 | ) | |
Increase in contract and emission credit amortization | 1 | ||
Increase in gross margin | $ | 26 |
Six months ended June 30, 2018 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Retail | Gulf Coast | East/West | 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 | $ | (1 | ) | $ | (86 | ) | $ | (8 | ) | $ | — | $ | 31 | $ | (64 | ) | |||||||
Net unrealized (losses)/gains on open positions related to economic hedges | (5 | ) | (189 | ) | (17 | ) | (5 | ) | 189 | (27 | ) | ||||||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (6 | ) | $ | (275 | ) | $ | (25 | ) | $ | (5 | ) | $ | 220 | $ | (91 | ) | ||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 104 | $ | (3 | ) | $ | (7 | ) | $ | — | $ | (31 | ) | $ | 63 | ||||||||
Reversal of acquired gain positions related to economic hedges | (1 | ) | — | — | — | — | (1 | ) | |||||||||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 343 | (4 | ) | 4 | — | (189 | ) | 154 | |||||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 446 | $ | (7 | ) | $ | (3 | ) | $ | — | $ | (220 | ) | $ | 216 |
Six months ended June 30, 2017 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
Retail | Gulf Coast | East/West | 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 | $ | (1 | ) | $ | (8 | ) | $ | (37 | ) | $ | — | $ | 89 | $ | 43 | ||||||||
Net unrealized gains on open positions related to economic hedges | 1 | 49 | 41 | 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 losses/(gains) on settled positions related to economic hedges | $ | 76 | $ | (7 | ) | $ | 2 | $ | — | $ | (89 | ) | $ | (18 | ) | ||||||||
Reversal of acquired loss positions related to economic hedges | 1 | — | — | — | — | 1 | |||||||||||||||||
Net unrealized losses on open positions related to economic hedges | (57 | ) | (17 | ) | (5 | ) | — | (22 | ) | (101 | ) | ||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 20 | $ | (24 | ) | $ | (3 | ) | $ | — | $ | (111 | ) | $ | (118 | ) |
Six months ended June 30, | |||||||
(In millions) | 2018 | 2017 | |||||
Trading gains/(losses) | |||||||
Realized | $ | 40 | $ | 28 | |||
Unrealized | 13 | (2 | ) | ||||
Total trading gains | $ | 53 | $ | 26 |
Retail | Generation | Renewables | NRG Yield | Corporate | Eliminations | Total | ||||||||||||||||||||||||
Gulf Coast | East/West(a) | |||||||||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||||||
Six months ended June 30, 2018 | $ | 96 | $ | 307 | $ | 204 | $ | 53 | $ | 94 | $ | 2 | $ | (26 | ) | $ | 730 | |||||||||||||
Six months ended June 30, 2017 | $ | 114 | $ | 250 | $ | 200 | $ | 63 | $ | 98 | $ | 9 | $ | (22 | ) | $ | 712 |
(In millions) | |||
2017 proceeds and 2018 payments in settlement of certain legal matters | $ | 33 | |
Increase in operations and maintenance due to the gain on sale of the Jewett Mine dragline in 2017 | 18 | ||
Increase in major maintenance primarily due to outages at W.A. Parish and Big Cajun II | 32 | ||
Increased deactivation costs primarily at Dunkirk | 10 | ||
Decrease in operations and maintenance expense due to cost efficiencies as a result of the Transformation Plan(a) | (60 | ) | |
Decrease in Renewables operations and maintenance expense primarily from the deconsolidation of Ivanpah | (10 | ) | |
Decrease in NRG Yield operations and maintenance expense due to lower costs related to forced outages at Walnut Creek in 2018 compared to 2017, as well as lower losses on disposal of assets at Walnut Creek and El Segundo | (5 | ) | |
$ | 18 |
Retail | Generation | Renewables | NRG Yield | Corporate | Total | ||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Six months ended June 30, 2018 | $ | 241 | $ | 106 | $ | 22 | $ | 13 | $ | 20 | $ | 402 | |||||||||||
Six months ended June 30, 2017 | 225 | 111 | 27 | 12 | 106 | 481 |
(In millions) | |||
Decrease in general and administrative expense from cost initiatives for the Transformation Plan(a) | $ | (104 | ) |
Prior year fees associated with advisors engaged to assist the Company in its strategic review in 2017 | (20 | ) | |
Prior year fees for advisors and other consultants engaged to assist the Company with GenOn's ability to continue as a going concern | (11 | ) | |
Increase in bad debt expense primarily from increased usage due to weather | 14 | ||
Increase in expense for estimated legal settlements | 10 | ||
Increase in selling and marketing expense associated with costs incurred for margin enhancement initiatives | 32 | ||
$ | (79 | ) |
(In millions) | |||
Decrease in derivative interest expense from changes in the fair value of interest rate swaps driven by increased interest rates in 2018 | $ | (75 | ) |
Decrease in interest expense related to repurchases of Senior Notes | (20 | ) | |
Decrease in interest expense related to Ivanpah deconsolidation | (6 | ) | |
Other | (1 | ) | |
$ | (102 | ) |
(In millions) | |||
Increase in derivative interest expense due to the termination of interest rate swaps | $ | 32 | |
Decrease related to the termination of in-the-money interest rate swaps | (25 | ) | |
Decrease related to the debt reduction of $1.2 billion and refinancing $2.4 billion of debt at lower interest rates in 2019 and 2018 | (21 | ) | |
Decrease related to the deconsolidations of Ivanpah and Agua Caliente in 2018 | (9 | ) | |
Other | 5 | ||
Decrease in interest expense | $ | (18 | ) |
Three Months Ended June 30, | ||||||||||||
(In millions) | 2019 | 2018 | Change | |||||||||
South Central Portfolio | 1 | 16 | $ | (15 | ) | |||||||
Yield Renewables Platform & Carlsbad | 10 | 78 | (68 | ) | ||||||||
Genon | 2 | (25 | ) | 27 | ||||||||
Income from discontinued operations, net of tax | $ | 13 | $ | 69 | $ | (56 | ) |
Average on Peak Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2019 | 2018 | Change % | |||||||
Texas | ||||||||||
ERCOT - Houston (a) | $ | 30.04 | $ | 33.98 | (12 | )% | ||||
ERCOT - North(a) | 29.08 | 33.28 | (13 | )% | ||||||
MISO - Louisiana Hub(b) | 33.12 | 45.22 | (27 | )% | ||||||
East/West | ||||||||||
NY J/NYC(b) | 37.34 | 49.19 | (24 | )% | ||||||
NEPOOL(b) | 37.28 | 51.07 | (27 | )% | ||||||
COMED (PJM)(b) | 28.44 | 32.54 | (13 | )% | ||||||
PJM West Hub(b) | 31.17 | 43.58 | (28 | )% | ||||||
CAISO - SP15(b) | 36.86 | 31.60 | 17 | % |
Average Realized Power Price ($/MWh) | ||||||||||
Six months ended June 30, | ||||||||||
Region | 2019 | 2018 | Change % | |||||||
Texas | $ | 42.06 | $ | 34.44 | 22 | % | ||||
East/West/Other (a) (b) | 36.45 | 47.43 | (23 | )% |
Six months ended June 30, 2019 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
($ In millions) | Retail | Texas | East/West/Other(a) | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue | $ | — | $ | 855 | $ | 341 | $ | 1,196 | $ | (641 | ) | $ | 555 | ||||||||||
Capacity revenue | — | — | 309 | 309 | — | 309 | |||||||||||||||||
Retail revenue | 3,353 | — | — | — | (2 | ) | 3,351 | ||||||||||||||||
Mark-to-market for economic hedging activities | 2 | 473 | 56 | 529 | (270 | ) | 261 | ||||||||||||||||
Other revenue | — | 45 | 111 | 156 | (2 | ) | 154 | ||||||||||||||||
Operating revenue | 3,355 | 1,373 | 817 | 2,190 | (915 | ) | 4,630 | ||||||||||||||||
Cost of fuel | (51 | ) | (352 | ) | (165 | ) | (517 | ) | 3 | (565 | ) | ||||||||||||
Other cost of sales (b) | (2,472 | ) | (69 | ) | (148 | ) | (217 | ) | 640 | (2,049 | ) | ||||||||||||
Mark-to-market for economic hedging activities | (494 | ) | 2 | 2 | 4 | 270 | (220 | ) | |||||||||||||||
Contract and emission credit amortization | — | (11 | ) | — | (11 | ) | — | (11 | ) | ||||||||||||||
Gross margin | $ | 338 | $ | 943 | $ | 506 | $ | 1,449 | $ | (2 | ) | $ | 1,785 | ||||||||||
Less: Mark-to-market for economic hedging activities, net | (492 | ) | 475 | 58 | 533 | — | 41 | ||||||||||||||||
Less: Contract and emission credit amortization, net | — | (11 | ) | — | (11 | ) | — | (11 | ) | ||||||||||||||
Economic gross margin | $ | 830 | $ | 479 | $ | 448 | $ | 927 | $ | (2 | ) | $ | 1,755 | ||||||||||
Business Metrics | |||||||||||||||||||||||
MWh sold (thousands) | 20,329 | 9,354 | |||||||||||||||||||||
MWh generated (thousands) | 18,279 | 6,957 | |||||||||||||||||||||
(a) Includes International, Renewables, and Generation eliminations | |||||||||||||||||||||||
(b) Includes purchased energy, capacity and emissions credits |
Six months ended June 30, 2018 | |||||||||||||||||||||||
Generation | |||||||||||||||||||||||
($ In millions) | Retail | Texas | East/West/Other(a)(b) | Subtotal | Corporate/Eliminations | Total | |||||||||||||||||
Energy revenue | $ | — | $ | 666 | $ | 598 | $ | 1,264 | $ | (411 | ) | $ | 853 | ||||||||||
Capacity revenue | — | — | 308 | 308 | (1 | ) | 307 | ||||||||||||||||
Retail revenue | 3,300 | — | — | — | (2 | ) | 3,298 | ||||||||||||||||
Mark-to-market for economic hedging activities | (6 | ) | (273 | ) | (27 | ) | (300 | ) | 220 | (86 | ) | ||||||||||||
Other revenue | — | 64 | 102 | 166 | (12 | ) | 154 | ||||||||||||||||
Operating revenue | 3,294 | 457 | 981 | 1,438 | (206 | ) | 4,526 | ||||||||||||||||
Cost of fuel | (11 | ) | (311 | ) | (239 | ) | (550 | ) | (2 | ) | (563 | ) | |||||||||||
Other cost of sales (b) | (2,417 | ) | (62 | ) | (154 | ) | (216 | ) | 421 | (2,212 | ) | ||||||||||||
Mark-to-market for economic hedging activities | 446 | (5 | ) | (5 | ) | (10 | ) | (220 | ) | 216 | |||||||||||||
Contract and emission credit amortization | — | (12 | ) | (1 | ) | (13 | ) | — | (13 | ) | |||||||||||||
Gross margin | $ | 1,312 | $ | 67 | $ | 582 | $ | 649 | $ | (7 | ) | $ | 1,954 | ||||||||||
Less: Mark-to-market for economic hedging activities, net | 440 | (278 | ) | (32 | ) | (310 | ) | — | 130 | ||||||||||||||
Less: Contract and emission credit amortization, net | — | (12 | ) | (1 | ) | (13 | ) | — | (13 | ) | |||||||||||||
Economic gross margin | $ | 872 | $ | 357 | $ | 615 | $ | 972 | $ | (7 | ) | $ | 1,837 | ||||||||||
Business Metrics | |||||||||||||||||||||||
MWh sold (thousands) | 19,340 | 12,607 | |||||||||||||||||||||
MWh generated (thousands) | 17,304 | 9,957 | |||||||||||||||||||||
(a) Includes International, Renewables, and Generation eliminations | |||||||||||||||||||||||
(b) Includes BETM, which was sold as of July 31, 2018 | |||||||||||||||||||||||
(c) Includes purchased energy, capacity and emissions credits |
Six months ended June 30, | |||||
Weather Metrics | Texas | East/West/Other (b) | |||
2019 | |||||
CDDs (a) | 1,008 | 490 | |||
HDDs (a) | 1,111 | 1,897 | |||
2018 | |||||
CDDs | 1,246 | 573 | |||
HDDs | 1,059 | 1,844 | |||
10-year average | |||||
CDDs | 1,115 | 529 | |||
HDDs | 1,031 | 1,850 |
(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 |
Six months ended June 30, | |||||||
(In millions, except as otherwise noted) | 2019 | 2018 | |||||
Retail revenue | $ | 3,220 | $ | 3,132 | |||
Supply management revenue | 84 | 75 | |||||
Capacity revenue | 49 | 93 | |||||
Customer mark-to-market | 2 | (6 | ) | ||||
Operating revenue (a) | 3,355 | 3,294 | |||||
Cost of sales (b) | (2,523 | ) | (2,428 | ) | |||
Mark-to-market for economic hedging activities | (494 | ) | 446 | ||||
Gross Margin | $ | 338 | $ | 1,312 | |||
Less: Mark-to-market for economic hedging activities, net | (492 | ) | 440 | ||||
Economic Gross Margin | $ | 830 | $ | 872 | |||
Business Metrics | |||||||
Mass electricity sales volume — GWh - Texas | 17,119 | 17,736 | |||||
Mass electricity sales volume — GWh - All other regions | 4,407 | 3,319 | |||||
C&I electricity sales volume — GWh - All regions | 9,839 | 10,430 | |||||
Natural gas sales volumes (MDth) | 13,601 | 3,419 | |||||
Average Retail Mass customer count (in thousands) | 3,317 | 2,922 | |||||
Ending Retail Mass customer count (in thousands) | 3,277 | 3,149 |
(a) | Includes intercompany sales of $5 million and $6 million in 2019 and 2018, respectively, representing sales from Retail to the Texas region |
(b) | Includes intercompany purchases of $676 million and $415 million in 2019 and 2018, respectively, inclusive of the internal transfer of large average annualized market price transactions |
(In millions) | ||||
Lower gross margin due to the unfavorable impact from weather that resulted in a decrease in load of 900,000 MWh in 2019 as compared to 2018 | $ | (36 | ) | |
Lower gross margin from Business Solutions primarily due to a reduction in the volume of an early settlement of capacity obligations in 2019 as compared to 2018 | (28 | ) | ||
Lower gross margin from Mass due to higher supply costs driven by an increase in power prices of approximately $12.25 per MWh or $134 million, partially offset by higher revenue of approximately $10.25 per MWh or $111 million primarily driven by margin enhancement initiatives | (23 | ) | ||
Lower gross margin from Business Solutions due to lower revenue driven by lower rates to customers of approximately $6.25 per MWh or $61 million, partially offset by lower supply costs driven by a decrease in power prices at the time of procurement of approximately $3.50 per MWh or $36 million and lower volumes due to customer usage and mix of $24 million | (1 | ) | ||
Higher gross margin primarily driven by higher volumes from XOOM and other customer acquisitions | 46 | |||
Decrease in economic gross margin | $ | (42 | ) | |
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | (932 | ) | ||
Decrease in gross margin | $ | (974 | ) |
(In millions) | |||
Higher gross margin due to a 22% increase in weighted average realized prices, due primarily to the inter-segment transactions at annual average power prices | $ | 89 | |
Higher gross margin driven by planned outage at STP, Cedar Bayou and a forced outage at T.H.Wharton in 2018 | 39 | ||
Higher gross margin due to commercial optimization activities | 10 | ||
Higher gross margin due to margin enhancement initiatives from reduced fuel supply costs | 10 | ||
Decreased gross margin from lower sales of NOx emission credits | (22 | ) | |
Other | (4 | ) | |
Increase in economic gross margin | $ | 122 | |
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges | 753 | ||
Increase in contract and emission credit amortization | 1 | ||
Increase in gross margin | $ | 876 |
(In millions) | |||
Lower gross margin due to Ivanpah and Agua deconsolidations in April 2018 and August 2019, respectively | $ | (87 | ) |
Lower gross margin due to the sale of BETM, Keystone and Conemaugh in the third quarter of 2018, Guam in the first quarter of 2019 and the retirement of Encina in December | (75 | ) | |
Lower gross margin due to decrease in economic generation volumes, primarily due to dark spread and spark spread contractions in the northeast and planned outages in 2019 | (30 | ) | |
Lower gross margin driven by a 27% decrease in realized capacity pricing in New York | (18 | ) | |
Lower gross margin due to insurance proceeds from outages in 2018 | (14 | ) | |
Lower gross margin due to an extended forced outage at the Sunrise facility in 2019 | (12 | ) | |
Higher gross margin due to a 29% increase in PJM capacity prices and a 13% increase in ISO-NE capacity prices | 46 | ||
Higher gross margin due to a 14% increase in weighted average realized prices, primarily at Midwest Generation | 19 | ||
Higher gross margin from commercial optimization activities | 4 | ||
Decrease in economic gross margin | $ | (167 | ) |
Increase to mark-to-market for economic hedges primarily due to net unrealized gains/losses on open positions related to economic hedges | 90 | ||
Increase in contract and emission credit amortization | 1 | ||
Decrease in gross margin | $ | (76 | ) |
Six months ended June 30, 2019 | |||||||||||||||||||
Generation | |||||||||||||||||||
Retail | Texas | East/West/Other | Eliminations(a) | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges | $ | (1 | ) | $ | (153 | ) | $ | (6 | ) | $ | 152 | $ | (8 | ) | |||||
Net unrealized gains on open positions related to economic hedges | 3 | 626 | 62 | (422 | ) | 269 | |||||||||||||
Total mark-to-market gains in operating revenues | $ | 2 | $ | 473 | $ | 56 | $ | (270 | ) | $ | 261 | ||||||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||
Reversal of previously recognized unrealized losses on settled positions related to economic hedges | $ | 184 | $ | 4 | $ | 2 | $ | (152 | ) | $ | 38 | ||||||||
Reversal of acquired gain positions related to economic hedges | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Net unrealized (losses) on open positions related to economic hedges | (677 | ) | (2 | ) | — | 422 | (257 | ) | |||||||||||
Total mark-to-market (losses)/gains in operating costs and expenses | $ | (494 | ) | $ | 2 | $ | 2 | $ | 270 | $ | (220 | ) |
(a) | Represents the elimination of the intercompany activity between Retail and Generation |
Six months ended June 30, 2018 | |||||||||||||||||||
Generation | |||||||||||||||||||
Retail | Texas | East/West/Other | Eliminations(a) | Total | |||||||||||||||
(In millions) | |||||||||||||||||||
Mark-to-market results in operating revenues | |||||||||||||||||||
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges | $ | (1 | ) | $ | (88 | ) | $ | (6 | ) | $ | 31 | $ | (64 | ) | |||||
Net unrealized (losses) on open positions related to economic hedges | (5 | ) | (185 | ) | (21 | ) | 189 | (22 | ) | ||||||||||
Total mark-to-market (losses) in operating revenues | $ | (6 | ) | $ | (273 | ) | $ | (27 | ) | $ | 220 | $ | (86 | ) | |||||
Mark-to-market results in operating costs and expenses | |||||||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 104 | $ | (2 | ) | $ | (8 | ) | $ | (31 | ) | $ | 63 | ||||||
Reversal of acquired gain positions related to economic hedges | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 343 | (3 | ) | 3 | (189 | ) | 154 | ||||||||||||
Total mark-to-market gains/(losses) in operating costs and expenses | $ | 446 | $ | (5 | ) | $ | (5 | ) | $ | (220 | ) | $ | 216 |
(a) | Represents the elimination of the intercompany activity between Retail and Generation |
Six months ended June 30, | |||||||
(In millions) | 2019 | 2018 | |||||
Trading gains | |||||||
Realized | $ | 31 | $ | 40 | |||
Unrealized | 19 | 13 | |||||
Total trading gains | $ | 50 | $ | 53 |
Retail | Generation | Corporate | Eliminations | Total | |||||||||||||||||||
Texas | East/West/Other(a) | ||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Six months ended June 30, 2019 | $ | 110 | $ | 228 | $ | 190 | $ | 4 | $ | (1 | ) | $ | 531 | ||||||||||
Six months ended June 30, 2018 | $ | 96 | $ | 243 | $ | 236 | $ | 1 | $ | (3 | ) | 573 |
(In millions) | |||
Decrease due to the reduction in accrual for the Midwest Generation asbestos liability following final settlement | (27 | ) | |
Decrease due to the timing of outages in 2019 | (23 | ) | |
Decrease due to the deconsolidations of Ivanpah and Agua Caliente in 2018 | (20 | ) | |
Decrease due to 2018 payments in settlement of certain legal matters | (10 | ) | |
Decrease due to cost efficiencies as a result of the Transformation Plan | (5 | ) | |
Increase in investments in Texas plants in preparation for summer operations | 21 | ||
Increase primarily related to the lease of Cottonwood from February 4, 2019 | 17 | ||
Increase due to the XOOM acquisition in June 2018 | 8 | ||
Increase associated with costs incurred for margin enhancement initiatives | 2 | ||
Other | (5 | ) | |
Decrease in operations and maintenance expense | $ | (42 | ) |
Generation | ||||||||||||||||
Retail | Texas | East/West/Other | Total | |||||||||||||
(In millions) | ||||||||||||||||
Six months ended June 30, 2019 | $ | 53 | $ | 32 | $ | 35 | $ | 120 | ||||||||
Six months ended June 30, 2018 | $ | 50 | $ | 36 | $ | 43 | $ | 129 |
(In millions) | |||
Decrease in other cost of operations due to cost efficiencies as a result of the Transformation Plan | $ | (5 | ) |
Decrease in ARO accretion expense due to prior year write-off of S.R. Berton | (4 | ) | |
Decrease in other cost of operations | $ | (9 | ) |
Retail | Generation | Corporate | Total | ||||||||||||
(In millions) | |||||||||||||||
Six months ended June 30, 2019 | $ | 277 | $ | 117 | $ | 11 | $ | 405 | |||||||
Six months ended June 30, 2018 | 240 | 110 | 26 | 376 |
(In millions) | |||
Increase in selling and marketing expenses associated with costs incurred for margin enhancement initiatives | $ | 34 | |
Increase in bad debt expense primarily due to higher customer attrition | 22 | ||
Increase in selling expense due to the acquisition of XOOM in June 2018 | 12 | ||
Decrease in general and administrative expense from cost efficiencies as a result of the Transformation Plan | (26 | ) | |
Decrease due to higher accruals for estimated legal liabilities in 2018 | (10 | ) | |
Decrease related to fees incurred in the acquisition of businesses | (3 | ) | |
Increase in selling, general and administrative expenses | $ | 29 |
(In millions) | |||
Decrease related to the deconsolidations of Ivanpah and Agua Caliente in 2018 | $ | (23 | ) |
Decrease related to the termination of in-the-money interest rate swaps | (25 | ) | |
Decrease related to the debt reduction of $1.2 billion and refinancing $2.4 billion of debt at lower interest rates in 2019 and 2018 | (30 | ) | |
Increase in derivative interest expense due to the termination of interest rate swaps in 2019 | 53 | ||
Other | 5 | ||
Decrease in interest expense | $ | (20 | ) |
Six Months Ended June 30, | ||||||||||||
(In millions) | 2019 | 2018 | Change | |||||||||
South Central Portfolio | 36 | 32 | $ | 4 | ||||||||
Yield Renewables Platform & Carlsbad | 363 | 57 | 306 | |||||||||
GenOn | 2 | (25 | ) | 27 | ||||||||
Income from discontinued operations, net of tax | $ | 401 | $ | 64 | $ | 337 |
(In millions) | June 30, 2018 | December 31, 2017 | |||||
Cash and cash equivalents: | |||||||
NRG excluding NRG Yield | $ | 850 | $ | 843 | |||
NRG Yield and subsidiaries | 130 | 148 | |||||
Restricted cash - operating | 43 | 71 | |||||
Restricted cash - reserves (a) | 243 | 437 | |||||
Total | 1,266 | 1,499 | |||||
Total credit facility availability | 1,222 | 1,711 | |||||
Total liquidity, excluding collateral received | $ | 2,488 | $ | 3,210 |
(In millions) | June 30, 2019 | December 31, 2018 | |||||
Cash and cash equivalents | $ | 294 | $ | 563 | |||
Restricted cash - operating | 9 | 6 | |||||
Restricted cash - reserves(a) | 2 | 11 | |||||
Total | 305 | 580 | |||||
Total credit facility availability | 1,799 | 1,397 | |||||
Total liquidity, excluding funds deposited by counterparties | $ | 2,104 | $ | 1,977 |
Sales | Cash Proceeds (in millions) | |||
South Central Portfolio | $ | 962 | ||
Carlsbad | 396 | |||
Guam | 8 | |||
Other | 10 | |||
Sales transactions during the six months ended June 30, 2019 | $ | 1,376 |
Equivalent Net Sales Secured by First Lien Structure (a) | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |||||
In MW | 264 | 908 | 916 | 765 | 828 | 860 | |||||
As a percentage of total net coal and nuclear capacity (b) | 6% | 19% | 20% | 16% | 18% | 18% |
Equivalent Net Sales Secured by First Lien Structure(a) | 2019 | 2020 | 2021 | 2022 | 2023 | ||||
In MW | 514 | 865 | 740 | 792 | 846 | ||||
As a percentage of total net coal and nuclear capacity(b) | 11% | 19% | 16% | 17% | 19% |
(a) | Equivalent Net Sales include natural gas swaps converted using a weighted average heat rate by |
(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 |
Maintenance | Environmental | Growth Investments (b) | Total | ||||||||||||
(In millions) | |||||||||||||||
Retail | $ | 12 | $ | — | $ | 22 | $ | 34 | |||||||
Generation | |||||||||||||||
Gulf Coast | 70 | — | — | 70 | |||||||||||
East/West (a) | 15 | — | 208 | 223 | |||||||||||
Renewables | 2 | — | 286 | 288 | |||||||||||
NRG Yield | 17 | — | 28 | 45 | |||||||||||
Corporate | 6 | — | 25 | 31 | |||||||||||
Total cash capital expenditures for the six months ended June 30, 2018 | 122 | — | 569 | 691 | |||||||||||
Funding from third party equity partners, cash grants and debt financing, net of fees | — | — | (618 | ) | (618 | ) | |||||||||
Other investments (c) | — | — | 286 | 286 | |||||||||||
Total capital expenditures and investments, net of financings | 122 | — | 237 | 359 | |||||||||||
Estimated capital expenditures for the remainder of 2018 | 99 | 3 | 231 | 333 | |||||||||||
Funding from third party equity partners, cash grants and debt financing, net of fees | — | — | (73 | ) | (73 | ) | |||||||||
Other investments (c) | — | — | 10 | 10 | |||||||||||
NRG estimated capital expenditures for the remainder of 2018, net of financings (d) | $ | 99 | $ | 3 | $ | 168 | $ | 270 |
Maintenance | Environmental | Growth Investments(c) | Total | ||||||||||||
(In millions) | |||||||||||||||
Retail | $ | 9 | $ | — | $ | 19 | $ | 28 | |||||||
Generation | |||||||||||||||
Texas | 39 | — | — | 39 | |||||||||||
East/West/Other(a) | 25 | 2 | — | 27 | |||||||||||
Corporate | 3 | — | 10 | 13 | |||||||||||
Total cash capital expenditures for the six months ended June 30, 2019 | 76 | 2 | 29 | 107 | |||||||||||
Other investments | — | — | 58 | 58 | |||||||||||
Total capital expenditures and investments, net of financings | 76 | 2 | 87 | 165 | |||||||||||
Estimated capital expenditures for the remainder of 2019(b) | $ | 79 | $ | 1 | $ | 17 | $ | 97 |
Second Quarter 2018 | First Quarter 2018 | ||||||
Dividends per Common Share | $ | 0.03 | $ | 0.03 |
Principal Repurchased | Cash Paid (a) | Average Early Redemption Percentage | ||||||||
In millions, except rates | ||||||||||
5.750% senior notes due 2028 | $ | 29 | $ | 30 | 99.24 | % | ||||
6.250% senior notes due 2022 | 14 | 15 | 103.25 | % | ||||||
Total at June 30, 2018 | $ | 43 | $ | 45 | ||||||
6.250% senior notes due 2022 | $ | 6 | $ | 6 | 103.25 | % | ||||
5.750% senior notes due 2028 | 20 | 21 | 99.13 | % | ||||||
6.625% senior notes due 2027 | 20 | 21 | 103.06 | % | ||||||
Total at August 2, 2018 | $ | 89 | $ | 93 |
Six months ended June 30, | |||||||||||
2018 | 2017 | Change | |||||||||
(In millions) | |||||||||||
Net cash provided/(used) by operating activities | $ | 524 | $ | 74 | $ | 450 | |||||
Net cash used by investing activities | (1,146 | ) | (545 | ) | (601 | ) | |||||
Net cash used by financing activities | 423 | 18 | 405 |
Six months ended June 30, | |||||||||||
2019 | 2018 | Change | |||||||||
(In millions) | |||||||||||
Net Cash Provided by Operating Activities | $ | 389 | $ | 513 | $ | (124 | ) | ||||
Net Cash Provided/(Used) by Investing Activities | 1,103 | (1,162 | ) | 2,265 | |||||||
Net Cash (Used)/Provided by Financing Activities | (1,720 | ) | 450 | (2,170 | ) |
(In millions) | |||
Increase in operating income adjusted for non-cash items | $ | 262 | |
Changes in cash collateral in support of risk management activities due to changes in commodity prices | 171 | ||
Other changes in working capital | (21 | ) | |
Change in cash from discontinued operations | 38 | ||
$ | 450 |
(In millions) | |||
Change in cash provided by discontinued operations | $ | (241 | ) |
Decrease in working capital | (39 | ) | |
Changes in cash collateral in support of risk management activities due to changes in commodity prices | 134 | ||
Increase in operating income adjusted for other non-cash items | 22 | ||
$ | (124 | ) |
(In millions) | |||
Increase in cash paid for acquisitions in 2018 compared to 2017, primarily from the XOOM acquisition | $ | (268 | ) |
Increase in capital expenditures for growth investments for solar and repowering projects | (149 | ) | |
Beginning balance of cash removed due to the deconsolidation of Ivanpah in 2018 | (160 | ) | |
Decrease in proceeds from the sale of investments in 2017 compared to 2018 | (17 | ) | |
Decrease in insurance proceeds for property damage | (18 | ) | |
Decrease in sales of emissions, net of purchases | (17 | ) | |
Change in cash from discontinued operations | 53 | ||
Other | (25 | ) | |
$ | (601 | ) |
(In millions) | |||
Increase in proceeds from sale of assets and discontinued operations primarily due to sales of South Central Portfolio and Carlsbad | $ | 1,143 | |
Decrease in cash used by discontinued operations | 582 | ||
Decrease in cash paid for acquisitions primarily due to XOOM acquisition in 2018 | 190 | ||
Decrease in capital expenditures | 175 | ||
Cash removed due to deconsolidation of Ivanpah in 2018 | 160 | ||
Increase in proceeds received from sales of nuclear decommissioning trust fund securities, net of purchases | 25 | ||
Increase in contributions to discontinued operations | (28 | ) | |
Other | 18 | ||
$ | 2,265 |
(In millions) | |||
Repurchases of common stock in 2018, from open market repurchases and the ASR Agreement | $ | (500 | ) |
Increase in payments for short and long-term debt | (318 | ) | |
Increase in proceeds from the issuance of long-term debt, primarily for the Convertible Notes | 659 | ||
Change in cash from discontinued operations including long-term deposits in 2017 | 349 | ||
Increase in cash contributions, net of distributions from non-controlling interests in 2018, primarily related to tax equity financings | 208 | ||
Other | 7 | ||
$ | 405 |
(In millions) | |||
Increase in payments of short and long-term debt | $ | (2,137 | ) |
Increase in payments for treasury stock | (539 | ) | |
Change in cash provided by discontinued operations | (302 | ) | |
Increase in payments of debt extinguishment costs and deferred issuance costs | (38 | ) | |
Increase in proceeds from issuance of short and long-term debt | 839 | ||
Other | 7 | ||
$ | (2,170 | ) |
Derivative Activity Gains | (In millions) | |||||
Fair Value of Contracts as of December 31, 2017 | $ | 46 | ||||
Derivative Activity Gains/(Losses) | (In millions) | |||||
Fair Value of Contracts as of December 31, 2018 | $ | 104 | ||||
Contracts realized or otherwise settled during the period | 9 | (16 | ) | |||
Contracts acquired during the period | 11 | (2 | ) | |||
Changes in fair value | 217 | 38 | ||||
Fair Value of Contracts as of June 30, 2018 | $ | 283 | ||||
Fair Value of Contracts as of June 30, 2019 | $ | 124 |
Fair Value of Contracts as of June 30, 2018 | Fair Value of Contracts as of June 30, 2019 | |||||||||||||||||||||||||||||||||||||
Maturity | 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 | 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) | (In millions) | |||||||||||||||||||||||||||||||||||||
Level 1 | $ | (9 | ) | $ | (30 | ) | $ | (8 | ) | $ | (1 | ) | $ | (48 | ) | $ | (93 | ) | $ | (18 | ) | $ | (3 | ) | $ | — | $ | (114 | ) | |||||||||
Level 2 | 10 | 137 | 16 | 15 | 178 | 69 | 75 | 7 | (10 | ) | 141 | |||||||||||||||||||||||||||
Level 3 | 141 | 32 | (6 | ) | (14 | ) | 153 | 96 | 32 | (5 | ) | (26 | ) | 97 | ||||||||||||||||||||||||
Total | $ | 142 | $ | 139 | $ | 2 | $ | — | $ | 283 | $ | 72 | $ | 89 | $ | (1 | ) | $ | (36 | ) | $ | 124 |
(In millions) | 2018 | 2017 | 2019 | 2018 | ||||||||||
VaR as of June 30, | $ | 54 | $ | 49 | $ | 33 | $ | 54 | ||||||
Three months ended June 30, | ||||||||||||||
Average | $ | 59 | $ | 59 | $ | 40 | $ | 59 | ||||||
Maximum | 68 | 66 | 46 | 68 | ||||||||||
Minimum | 52 | 49 | 33 | 52 | ||||||||||
Six months ended June 30, | ||||||||||||||
Average | 59 | $ | 56 | 43 | $ | 59 | ||||||||
Maximum | 69 | 66 | 49 | 69 | ||||||||||
Minimum | 48 | 41 | 33 | 48 |
For the three months ended June 30, 2018 | Total Number of Shares Purchased | Average Price Paid per Share(a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(b) | ||||||||||
Month #1 | ||||||||||||||
(April 1, 2018 to April 30, 2018) | 1,779,530 | $ | 29.98 | 1,779,530 | $ | 853,952,158 | ||||||||
Month #2 | ||||||||||||||
(May 1, 2018 to May 31, 2018) | 9,969,023 | $ | 32.69 | 9,969,023 | $ | 499,950,111 | ||||||||
Month #3 | ||||||||||||||
(June 1, 2018 to June 30, 2018) | — | $ | — | — | $ | 499,950,111 | ||||||||
Total at June 30, 2018 | 11,748,553 | 11,748,553 |
For the three months ended June 30, 2019 | Total Number of Shares Purchased | Average Price Paid per Share(a) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs(a) | ||||||||||
Month #1 | ||||||||||||||
(April 1, 2019 to April 30, 2019) | 390,908 | (b) | 390,908 | $ | 499,773,516 | |||||||||
Month #2 | ||||||||||||||
(May 1, 2019 to May 31, 2019) | 4,246,164 | $ | 35.83 | 4,246,164 | $ | 347,547,868 | ||||||||
Month #3 | ||||||||||||||
(June 1, 2019 to June 30, 2019) | 4,375,000 | $ | 34.67 | 4,375,000 | $ | 195,779,264 | ||||||||
Total at June 30, 2019 | 9,012,072 | 9,012,072 |
(a) | Includes commissions paid |
(b) | Includes 351,768 additional shares delivered under the ASR agreement upon settlement. The average price paid per share for April purchases excluding the additional shares delivered under the ASR was $41.99 |
Number | Description | Method of Filing | ||
4.1 | Incorporated herein by reference to Exhibit 4.1 to the Registrant's current report on Form 8-K filed on May 16, 2019 | |||
4.2 | Incorporated herein by reference to Exhibit 4.2 to the Registrant's current report on Form 8-K filed on May 16, 2019 | |||
4.3 | Incorporated herein by reference to Exhibit 4.3 to the Registrant's current report on Form 8-K filed on May 16, 2019 | |||
4.4 | Incorporated herein by reference to Exhibit 4.1 to the Registrant's current report on Form 8-K filed on May 30, 2019 | |||
4.5 | ||||
Incorporated herein by reference to Exhibit 4.2 to the Registrant's | ||||
4.6 | Incorporated herein by reference to Exhibit 4.3 to the Registrant's current report on Form 8-K filed on May 30, 2019 | |||
4.7 | Incorporated herein by reference to Exhibit 4.4 to the Registrant's current report on Form 8-K filed on May 30, 2019 | |||
10.1 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's | |||
31.1 | Filed herewith. | |||
31.2 | Filed herewith. | |||
31.3 | Filed herewith. | |||
32 | Furnished herewith. | |||
101 INS | Inline XBRL Instance Document. | |||
101 SCH | Inline XBRL Taxonomy Extension Schema. | Filed herewith. | ||
101 CAL | Inline XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||
101 DEF | Inline XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||
101 LAB | Inline XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||
101 PRE | Inline XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. | ||
104 | Cover Page Interactive Data File (the cover page interactive data file does not appear in Exhibit 104 because it's Inline XBRL tags are embedded within the Inline XBRL document). | 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 | Chief Accounting Officer (Principal Accounting Officer) | |||