Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 05, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-15891 | |
Entity Registrant Name | NRG Energy, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1724239 | |
Entity Address, Address Line One | 804 Carnegie Center, | |
Entity Address, City or Town | Princeton | |
Entity Address, State or Province | NJ | |
Entity Address, Postal Zip Code | 08540 | |
City Area Code | 609 | |
Local Phone Number | 524-4500 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | NRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 244,220,834 | |
Entity Central Index Key | 0001013871 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Revenues | ||||
Total operating revenues | $ 2,809 | $ 2,996 | $ 7,066 | $ 7,626 |
Operating Costs and Expenses | ||||
Cost of operations | 2,034 | 2,153 | 4,925 | 5,649 |
Depreciation and amortization | 99 | 91 | 318 | 261 |
Impairment losses | 29 | 0 | 29 | 1 |
Selling, general and administrative costs | 253 | 210 | 670 | 615 |
Reorganization costs | 0 | 1 | 3 | 16 |
Development costs | 1 | 1 | 6 | 5 |
Total operating costs and expenses | 2,416 | 2,456 | 5,951 | 6,547 |
Gain on sale of assets | 0 | 0 | 6 | 2 |
Operating Income/(Loss) | 393 | 540 | 1,121 | 1,081 |
Other Income/(Expense) | ||||
Equity in earnings of unconsolidated affiliates | 36 | 29 | 37 | 8 |
Impairment losses on investments | 0 | (107) | (18) | (107) |
Other income, net | 11 | 17 | 52 | 49 |
Loss on debt extinguishment, net | 0 | 0 | (1) | (47) |
Interest expense | (99) | (99) | (292) | (318) |
Total other income/(expense) | (52) | (160) | (222) | (415) |
Income from Continuing Operations Before Income Taxes | 341 | 380 | 899 | 666 |
Income tax expense | 92 | 6 | 216 | 9 |
Income from Continuing Operations | 249 | 374 | 683 | 657 |
(Loss)/income from discontinued operations, net of income tax | 0 | (2) | 0 | 399 |
Net Income | 249 | 372 | 683 | 1,056 |
Less: Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 1 |
Net Income Attributable to NRG Energy, Inc. | $ 249 | $ 372 | $ 683 | $ 1,055 |
Earnings per Share | ||||
Weighted average number of common shares outstanding — basic (in shares) | 244 | 254 | 246 | 266 |
Income from continuing operations per weighted average common share — basic (in usd per share) | $ 1.02 | $ 1.47 | $ 2.78 | $ 2.47 |
(Loss)/income from discontinued operations per weighted average common share — basic (in usd per share) | 0 | (0.01) | 0 | 1.50 |
Earnings per Weighted Average Common Share — Basic (in usd per share) | $ 1.02 | $ 1.46 | $ 2.78 | $ 3.97 |
Weighted average number of common shares outstanding — diluted (in shares) | 245 | 256 | 247 | 268 |
Income from continuing operations per weighted average common share — diluted (in usd per share) | $ 1.02 | $ 1.46 | $ 2.77 | $ 2.45 |
(Loss)/income from discontinued operations per weighted average common share — diluted (in usd per share) | 0 | (0.01) | 0 | 1.49 |
Earnings per Weighted Average Common Share — Diluted (in usd per share) | $ 1.02 | $ 1.45 | $ 2.77 | $ 3.94 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||||||
Net Income | $ 249 | $ 372 | $ 683 | $ 1,056 | ||||
Other Comprehensive Income/(Loss) | ||||||||
Foreign currency translation adjustments | 4 | (4) | 2 | (4) | ||||
Available-for-sale securities | 0 | (14) | 0 | (13) | ||||
Defined benefit plans | 0 | (41) | 0 | (47) | ||||
Other comprehensive income/(loss) | 4 | $ 13 | $ (15) | (59) | $ (3) | $ (2) | 2 | (64) |
Comprehensive Income/(Loss) | 253 | 313 | 685 | 992 | ||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | 0 | 0 | 1 | ||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ 253 | $ 313 | $ 685 | $ 991 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 697 | $ 345 |
Funds deposited by counterparties | 15 | 32 |
Restricted cash | 6 | 8 |
Accounts receivable, net | 1,126 | 1,025 |
Inventory | 330 | 383 |
Derivative instruments | 578 | 860 |
Cash collateral paid in support of energy risk management activities | 77 | 190 |
Prepayments and other current assets | 258 | 245 |
Total current assets | 3,087 | 3,088 |
Property, plant and equipment, net | 2,573 | 2,593 |
Other Assets | ||
Equity investments in affiliates | 376 | 388 |
Operating lease right-of-use assets, net | 345 | 464 |
Goodwill | 579 | 579 |
Intangible assets, net | 721 | 789 |
Nuclear decommissioning trust fund | 828 | 794 |
Derivative instruments | 315 | 310 |
Deferred income taxes | 3,087 | 3,286 |
Other non-current assets | 314 | 240 |
Total other assets | 6,565 | 6,850 |
Total Assets | 12,225 | 12,531 |
Current Liabilities | ||
Current portion of long-term debt | 3 | 88 |
Current portion of operating lease liabilities | 69 | 73 |
Accounts payable | 753 | 722 |
Derivative instruments | 495 | 781 |
Cash collateral received in support of energy risk management activities | 15 | 32 |
Accrued expenses and other current liabilities | 651 | 663 |
Total current liabilities | 1,986 | 2,359 |
Other Liabilities | ||
Long-term debt | 5,792 | 5,803 |
Non-current operating lease liabilities | 297 | 483 |
Nuclear decommissioning reserve | 311 | 298 |
Nuclear decommissioning trust liability | 508 | 487 |
Derivative instruments | 318 | 322 |
Deferred income taxes | 17 | 17 |
Other non-current liabilities | 1,062 | 1,084 |
Total other liabilities | 8,305 | 8,494 |
Total Liabilities | 10,291 | 10,853 |
Redeemable noncontrolling interest in subsidiaries | 0 | 20 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock; $0.01 par value; 500,000,000 shares authorized; 423,041,349 and 421,890,790 shares issued and 244,147,420 and 248,996,189 shares outstanding at September 30, 2020 and December 31, 2019, respectively | 4 | 4 |
Additional paid-in-capital | 8,511 | 8,501 |
Accumulated deficit | (1,157) | (1,616) |
Treasury stock, at cost - 178,893,929 and 172,894,601 shares at September 30, 2020 and December 31, 2019, respectively | (5,234) | (5,039) |
Accumulated other comprehensive loss | (190) | (192) |
Total Stockholders' Equity | 1,934 | 1,658 |
Total Liabilities and Stockholders' Equity | $ 12,225 | $ 12,531 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par or value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 423,041,349 | 421,890,790 |
Common stock, shares outstanding (in shares) | 244,147,420 | 248,996,189 |
Treasury stock, shares (in shares) | 178,893,929 | 172,894,601 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||
Net Income | $ 683 | $ 1,056 |
(Loss)/income from discontinued operations, net of income tax | 0 | 399 |
Income/(loss) from continuing operations | 683 | 657 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | 6 | (5) |
Depreciation and amortization | 318 | 261 |
Accretion of asset retirement obligations | 46 | 31 |
Provision for credit losses | 74 | 87 |
Amortization of nuclear fuel | 40 | 40 |
Amortization of financing costs and debt discount/premiums | 23 | 20 |
Loss on debt extinguishment, net | 1 | 47 |
Amortization of emissions allowances and energy credits | 60 | 28 |
Amortization of unearned equity compensation | 17 | 15 |
Gain on sale and disposal of assets | (22) | (20) |
Impairment losses | 47 | 108 |
Changes in derivative instruments | (7) | 36 |
Changes in deferred income taxes and liability for uncertain tax benefits | 202 | (3) |
Changes in collateral deposits in support of energy risk management activities | 96 | 129 |
Changes in nuclear decommissioning trust liability | 39 | 27 |
Changes in other working capital | (237) | (569) |
Cash provided/(used) by continuing operations | 1,386 | 889 |
Cash provided by discontinued operations | 0 | 8 |
Net Cash Provided/(Used) by Operating Activities | 1,386 | 897 |
Cash Flows from Investing Activities | ||
Payments for acquisitions of assets and businesses | (277) | (348) |
Capital expenditures | (167) | (183) |
Net proceeds from notes receivable | 0 | 2 |
Net (purchases)/sales of emission allowances | (15) | 14 |
Investments in nuclear decommissioning trust fund securities | (360) | (295) |
Proceeds from the sale of nuclear decommissioning trust fund securities | 318 | 271 |
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 15 | 1,293 |
Changes in investments in unconsolidated affiliates | 2 | (94) |
Contributions to discontinued operations | 0 | (44) |
Cash (used)/provided by continuing operations | (484) | 616 |
Cash used by discontinued operations | 0 | (2) |
Net Cash (Used)/Provided by Investing Activities | (484) | 614 |
Cash Flows from Financing Activities | ||
Payments of dividends to common stockholders | (221) | (24) |
Payments for share repurchase activity | (229) | (1,322) |
Payments for debt extinguishment costs | 0 | (24) |
Purchase of and distributions to noncontrolling interests from subsidiaries | (2) | (1) |
Proceeds from issuance of common stock | 1 | 3 |
Proceeds from issuance of long-term debt | 59 | 1,833 |
Repayments of long-term debt | (62) | (2,487) |
Net (repayments)/proceeds of Revolving Credit Facility | (83) | 215 |
Other | (6) | 0 |
Cash used by continuing operations | (567) | (1,841) |
Cash provided by discontinued operations | 0 | 43 |
Net Cash Used by Financing Activities | (567) | (1,798) |
Effect of exchange rate changes on cash and cash equivalents | (2) | 0 |
Change in Cash from discontinued operations | 0 | 49 |
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 333 | (336) |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 385 | 613 |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ 718 | $ 277 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Treasury Stock | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2018 | $ (1,234) | $ 4 | $ 8,510 | $ (6,022) | $ (3,632) | $ (94) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 482 | 482 | |||||
Other comprehensive (loss) income, net of tax | (2) | (2) | |||||
Share repurchases | (749) | (10) | (739) | ||||
Equity-based awards activity, net | (32) | (32) | |||||
Issuance of common stock | 5 | 5 | |||||
Common stock dividends and dividend equivalents declared | [1] | (8) | (8) | ||||
Ending balance at Mar. 31, 2019 | (1,538) | 4 | 8,473 | (5,548) | (4,371) | (96) | |
Beginning balance at Dec. 31, 2018 | (1,234) | 4 | 8,510 | (6,022) | (3,632) | (94) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 1,055 | ||||||
Other comprehensive (loss) income, net of tax | (64) | ||||||
Ending balance at Sep. 30, 2019 | (1,571) | 4 | 8,494 | (4,991) | (4,920) | (158) | |
Beginning balance at Mar. 31, 2019 | (1,538) | 4 | 8,473 | (5,548) | (4,371) | (96) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 201 | 201 | |||||
Other comprehensive (loss) income, net of tax | (3) | (3) | |||||
Share repurchases | (305) | 10 | (315) | ||||
Equity-based awards activity, net | 5 | 5 | |||||
Common stock dividends and dividend equivalents declared | [1] | (8) | (8) | ||||
Ending balance at Jun. 30, 2019 | (1,648) | 4 | 8,488 | (5,355) | (4,686) | (99) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 372 | 372 | |||||
Other comprehensive (loss) income, net of tax | (59) | (59) | |||||
Share repurchases | (234) | (234) | |||||
Equity-based awards activity, net | 5 | 5 | |||||
Issuance of common stock | 1 | 1 | |||||
Common stock dividends and dividend equivalents declared | [1] | (8) | (8) | ||||
Ending balance at Sep. 30, 2019 | (1,571) | 4 | 8,494 | (4,991) | (4,920) | (158) | |
Beginning balance at Dec. 31, 2019 | 1,658 | 4 | 8,501 | (1,616) | (5,039) | (192) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 121 | 121 | |||||
Other comprehensive (loss) income, net of tax | (15) | (15) | |||||
Repurchase of partners' equity interest in VIE | 18 | 18 | |||||
Share repurchases | (150) | (150) | |||||
Equity-based awards activity, net | (21) | (21) | |||||
Common stock dividends and dividend equivalents declared | [1] | (75) | (75) | ||||
Ending balance at Mar. 31, 2020 | 1,536 | 4 | 8,498 | (1,570) | (5,189) | (207) | |
Beginning balance at Dec. 31, 2019 | 1,658 | 4 | 8,501 | (1,616) | (5,039) | (192) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 683 | ||||||
Other comprehensive (loss) income, net of tax | 2 | ||||||
Ending balance at Sep. 30, 2020 | 1,934 | 4 | 8,511 | (1,157) | (5,234) | (190) | |
Beginning balance at Mar. 31, 2020 | 1,536 | 4 | 8,498 | (1,570) | (5,189) | (207) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 313 | 313 | |||||
Other comprehensive (loss) income, net of tax | 13 | 13 | |||||
Shares reissuance for ESPP | 2 | 2 | |||||
Share repurchases | (47) | (47) | |||||
Equity-based awards activity, net | 6 | 6 | |||||
Issuance of common stock | 1 | 1 | |||||
Common stock dividends and dividend equivalents declared | [1] | (74) | (74) | ||||
Ending balance at Jun. 30, 2020 | 1,750 | 4 | 8,505 | (1,331) | (5,234) | (194) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income attributable to NRG Energy, Inc. | 249 | 249 | |||||
Other comprehensive (loss) income, net of tax | 4 | 4 | |||||
Equity-based awards activity, net | 6 | 6 | |||||
Common stock dividends and dividend equivalents declared | [1] | (75) | (75) | ||||
Ending balance at Sep. 30, 2020 | $ 1,934 | $ 4 | $ 8,511 | $ (1,157) | $ (5,234) | $ (190) | |
[1] | Dividends per common share were $0.30 for each of the quarters ended September 30, 2020, June 30, 2020 and March 31, 2020 and $0.03 for each of the quarters ended September 30, 2019, June 30, 2019 and March 31, 2019 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends per common share (in usd per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.03 | $ 0.03 | $ 0.03 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation General NRG Energy, Inc., or NRG or the Company, is an integrated power company built on dynamic retail brands with diverse generation assets. NRG brings the power of energy to consumers by producing and selling electricity and related products and services in major competitive power markets in the U.S. and Canada in a manner that delivers value to all of NRG's stakeholders. NRG is a customer-driven business focused on perfecting the integrated model by balancing retail load with generation supply within its deregulated markets. The Company sells energy, services, and innovative, sustainable products and services directly to retail customers under the brand names NRG, Reliant, Green Mountain Energy, Stream, and XOOM Energy, as well as other brand names owned by NRG, supported by approximately 23,000 MW of generation as of September 30, 2020. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the condensed consolidated financial statements in the Company's 2019 Form 10-K and the Current Report on Form 8-K filed May 7, 2020, which provides retrospectively revised historical financial information to correspond with the Company's current segment structure. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company's consolidated financial position as of September 30, 2020, and the results of operations, comprehensive income, cash flows and statements of stockholders' equity for the three and nine months ended September 30, 2020 and 2019. Segments As part of perfecting the integrated model, in which the majority of the Company’s generation serves its retail customers, the Company began managing its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus in 2020. As a result, the Company changed its business segments from Retail and Generation to Texas, East and West/Other beginning in the first quarter of 2020. The Company's updated segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: • Texas, which includes all activity related to customer, plant and market operations in Texas; • East, which includes the remaining activity related to customer operations and all activity related to plant and market operations in the East; • West/Other, which includes the following assets and activities: (i) all activity related to plant and market operations in the West, (ii) activity related to the Cottonwood power plant that was sold to Cleco on February 4, 2019 and is being leased back until 2025, (iii) the remaining renewables activity, including the Company’s equity method investments in Ivanpah Master Holdings, LLC and Agua Caliente, the remaining Home Solar assets and the NFL stadium solar generating assets, and (iv) activity related to the Company’s equity method investment for the Gladstone power plant in Australia; and • Corporate activities. All affected disclosures have been recast to reflect these changes for all periods presented. For further discussion of segment reporting, refer to Note 14, Segment Reporting . COVID-19 In March 2020, the World Health Organization categorized COVID-19 as a pandemic and the President of the United States declared the COVID-19 outbreak a national emergency. Electricity was deemed a 'critical and essential business operation' under various state and federal governmental COVID-19 mandates. NRG had activated its Crisis Management Team ("CMT") in January 2020 to proactively manage the Company's response to the impacts of COVID-19. NRG continues to remain focused on protecting the health and well-being of its employees, while supporting its customers and the communities in which it operates and assuring the continuity of its operations. In June 2020, summer-critical office employees returned to the offices and safety protocols were successfully implemented. The Company will continue to evaluate additional return to normal work operations on a location-by-location basis as COVID-19 conditions evolve. The Company continues to maintain certain restrictions on business travel and face-to-face sales channels, remote work practices remain in place and there are enhanced cleaning and hygiene protocols in all of its facilities. In addition, select essential employees and contractors are continuing to report to plant and certain office locations. The Company also continues to require pre-entry screening, including temperature checks, separation of work crews, additional personal protective equipment for employees and contractors when social distancing cannot be maintained, and a ban on all non-essential visitors. The Company has not experienced any material disruptions in its ability to continue its business operations to date. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassifications Certain prior year amounts have been reclassified for comparative purposes. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other Balance Sheet Information The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in intangible assets, net: (In millions) September 30, 2020 December 31, 2019 Property, plant and equipment accumulated depreciation $ 1,901 $ 1,752 Intangible assets accumulated amortization 1,314 1,262 Credit Losses On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , or ASU No. 2016-13, using the modified retrospective approach. Following the adoption of the new standard, the Company’s process of estimating expected credit losses remains materially consistent with its historical practice. Information prior to January 1, 2020, which was previously referred to as the allowance and provision for bad debt, has not been restated and continues to be reported under the accounting standards in effect for that period. Retail trade receivables are reported on the balance sheet net of the allowance for credit losses. The Company accrues an allowance for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. The following table represents the activity in the allowance for credit losses for the three and nine months ended September 30, 2020: (In millions) Three months ended September 30, 2020 Nine months ended September 30, 2020 Beginning balance $ 47 $ 43 Provision for credit losses 26 74 Write-offs (19) (71) Recoveries collected 3 11 Ending balance $ 57 $ 57 Restricted Cash The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 697 $ 345 Funds deposited by counterparties 15 32 Restricted cash 6 8 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 718 $ 385 Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties. Some amounts are segregated into separate accounts that are not contractually restricted but, based on the Company's intention, are not available for the payment of general corporate obligations. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the hedge counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held within the Company's projects that are restricted for specific uses. Pension Plan Contributions In the Company's 2019 Form 10-K, NRG had anticipated making contributions of $56 million to its pension plans in 2020. Cash contributions of $12 million were made during the nine months ended September 30, 2020 and the remaining planned contributions for 2020 were satisfied by available pre-funded pension balances (previous contributions in excess of required pension contributions). No additional contributions are planned in the fourth quarter of 2020. Recent Accounting Developments - Guidance Adopted in 2020 ASU 2018-17 — In October 2018, the FASB issued ASU No. 2018-17, Consolidations (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities , or ASU No. 2018-17, in response to stakeholders’ observations that Topic 810, Consolidations , could be improved thereby improving general purpose financial reporting. Specifically, ASU No. 2018-17 requires application of the variable interest entity (VIE) guidance to private companies under common control and consideration of indirect interest held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. All entities are required to apply the amendments retrospectively. The adoption did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2018-15 — In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in Cloud Computing Arrangement That Is a Service Contract , or ASU No. 2018-15. The amendments in ASU No. 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software (and hosting arrangement that include an internal-use software license). The amendment also requires the customer to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The Company adopted the amendments effective January 1, 2020 using the prospective approach. The adoption did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2018-13 — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair value Measurement) , or ASU No. 2018-13. The amendments in ASU No. 2018-13 eliminate such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and add new disclosure requirements for Level 3 measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain disclosures in ASU No. 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. The Company adopted the amendments effective January 1, 2020. As the amendments contemplates changes in disclosures only, it did not have an impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2016-13 — In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU No. 2016-13, which was further amended through various updates issued by the FASB thereafter. The guidance in ASU No. 2016-13 provides a new model for recognizing credit losses on financial assets carried at amortized cost using an estimate of expected credit losses, instead of the "incurred loss" methodology previously required for recognizing credit losses that delayed recognition until it was probable that a loss was incurred. The estimate of expected credit losses is to be based on consideration of past events, current conditions and reasonable and supportable forecasts of future conditions. The Company adopted the standard and its subsequent corresponding updates effective January 1, 2020 using the modified retrospective approach. Results for the reporting periods after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company's adoption of Topic 326 did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. Recent Accounting Developments - Guidance Not Yet Adopted ASU 2020-06 — In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) , or ASU No. 2020-06. The guidance in ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. In addition, ASU 2020-06 improves and amends the related earnings per share guidance. This standard is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently in the process of assessing the impact of this guidance on the consolidated financial statements and disclosures related to earnings per share. ASU 2019-12 — In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Performance Obligations As of September 30, 2020, estimated future fixed fee performance obligations are $188 million for the remaining three months of fiscal year 2020, and $648 million, $281 million, $43 million and $8 million for the fiscal years 2021, 2022, 2023 and 2024, respectively. These performance obligations are for cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions and are subject to penalties for non-performance. Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, 2020 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 1,633 $ 354 $ — $ — $ 1,987 Business Solutions 288 27 — — 315 Total retail revenue 1,921 381 — — 2,302 Energy revenue (a) 11 93 117 1 222 Capacity revenue (a) — 158 16 — 174 Mark-to-market for economic hedging activities (b) 1 43 (10) 5 39 Other revenue (a) 59 18 (1) (4) 72 Total operating revenue 1,992 693 122 2 2,809 Less: Lease revenue — — 5 — 5 Less: Realized and unrealized ASC 815 revenue 10 115 (10) 5 120 Total revenue from contracts with customers $ 1,982 $ 578 $ 127 $ (3) $ 2,684 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ — $ 23 $ 13 $ (1) $ 35 Capacity revenue — 49 — — 49 Other revenue 9 — (13) 1 (3) (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended September 30, 2019 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 1,735 $ 337 $ — $ — $ 2,072 Business Solutions 397 19 — — 416 Total retail revenue 2,132 356 — — 2,488 Energy revenue (a) 211 109 107 (1) 426 Capacity revenue (a) — 185 9 — 194 Mark-to-market for economic hedging activities (b) (213) 12 (9) — (210) Other revenue (a) 78 17 4 (1) 98 Total operating revenue 2,208 679 111 (2) 2,996 Less: Lease revenue — — 5 — 5 Less: Realized and unrealized ASC 815 revenue 420 69 — (2) 487 Total revenue from contracts with customers $ 1,788 $ 610 $ 106 $ — $ 2,504 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ 613 $ 20 $ 21 $ (2) $ 652 Capacity revenue — 34 — — 34 Other revenue 20 3 (12) — 11 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2020 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 3,938 $ 992 $ — $ (1) $ 4,929 Business Solutions 796 70 — — 866 Total retail revenue 4,734 1,062 — (1) 5,795 Energy revenue (a) 21 157 252 (1) 429 Capacity revenue (a) — 471 47 — 518 Mark-to-market for economic hedging activities (b) 1 63 6 8 78 Other revenue (a) 172 45 36 (7) 246 Total operating revenue 4,928 1,798 341 (1) 7,066 Less: Lease revenue — 1 14 — 15 Less: Realized and unrealized ASC 815 revenue 24 239 50 5 318 Total revenue from contracts with customers $ 4,904 $ 1,558 $ 277 $ (6) $ 6,733 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ — $ 60 $ 42 $ (3) $ 99 Capacity revenue — 114 — — 114 Other revenue 23 2 2 — 27 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2019 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 3,891 $ 892 $ — $ (3) $ 4,780 Business Solutions 927 55 — — 982 Total retail revenue 4,818 947 — (3) 5,762 Energy revenue (a) 452 283 217 — 952 Capacity revenue (a) — 524 27 — 551 Mark-to-market for economic hedging activities (b) 28 13 11 (1) 51 Other revenue (a) 213 45 55 (3) 310 Total operating revenue 5,511 1,812 310 (7) 7,626 Less: Lease revenue — 1 14 — 15 Less: Realized and unrealized ASC 815 revenue 1,314 187 46 (2) 1,545 Total revenue from contracts with customers $ 4,197 $ 1,624 $ 250 $ (5) $ 6,066 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ 1,239 $ 87 $ 28 $ (2) $ 1,352 Capacity revenue — 81 — 1 82 Other revenue 47 6 7 — 60 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Contract Balances The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of September 30, 2020 and December 31, 2019: (In millions) September 30, 2020 December 31, 2019 Deferred customer acquisition costs $ 122 $ 133 Accounts receivable, net - Contracts with customers 1,084 1,002 Accounts receivable, net - Derivative instruments 37 18 Accounts receivable, net - Affiliate 5 5 Total accounts receivable, net $ 1,126 $ 1,025 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 411 $ 402 Deferred revenues (a) 60 82 (a) Deferred revenues from contracts with customers for the three months ended September 30, 2020 and the year ended December 31, 2019 were approximately $31 million and $24 million, respectively The revenue recognized from contracts with customers during both the nine months ended September 30, 2020 and 2019 relating to the deferred revenue balance at the beginning of each period was $13 million. The revenue recognized during the three months ended September 30, 2020 and 2019 relating to the deferred revenue balance at the beginning of each period was $31 million and $21 million, respectively. The change in deferred revenue balances during the three and nine months ended September 30, 2020 and 2019 was primarily due to the timing difference of when consideration was received and when the performance obligation was transferred. |
Acquisitions, Discontinued Oper
Acquisitions, Discontinued Operations and Dispositions | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions, Discontinued Operations and Dispositions | Acquisitions, Discontinued Operations and Dispositions Acquisitions Direct Energy Acquisition On July 24, 2020, the Company entered into a definitive purchase agreement with Centrica to acquire Direct Energy, a North American subsidiary of Centrica (the "Purchase Agreement"). Direct Energy is a leading retail provider of electricity, natural gas, and home and business energy related products and services in North America, with operations in all 50 U.S. states and 6 Canadian provinces. The acquisition will add over 3 million customers to NRG's business and build on and complement its integrated model, enabling better matching of power generation with customer demand. It will also broaden the Company's presence in the Northeast and into states and locales where it does not currently operate, supporting NRG's objective to diversify its business. The Company will pay an aggregate purchase price of $3.625 billion in cash, subject to a purchase price adjustment, including a working capital adjustment. The Company expects to fund the purchase price using a combination of cash on hand and approximately $3 billion in newly-issued secured and unsecured corporate debt. The Company also expects to increase its collective collateral facilities by $3.5 billion through a combination of new letter of credit facilities and increases to its existing Revolving Credit Facility. Through November 5, 2020, in preparation for the additional liquidity requirements related to the acquisition, the Company (i) amended its Revolving Credit Facility to, among other things, increase the existing revolving commitments in an aggregate amount of $802 million, and provide for a new tranche of revolving commitments in an aggregate amount of $273 million, as further discussed in Note 10, Long-term Debt, (ii) amended its credit default swap facility agreement to issue letters of credit to, among other things, increase the size of the facility to allow for the issuance of an additional $87 million of letters of credit, as further discussed in Note 10, Long-term Debt, (iii) entered into a revolving accounts receivable financing facility (the “ Receivables Facility”) for an amount up to $750 million, subject to adjustments on a seasonal basis, with issuers of asset-backed commercial paper and commercial banks, as further discussed in Note 9, Receivables Securitization and Repurchase Facility, (iv) entered into an uncommitted repurchase facility related to the Receivables Facility, under which the Company can borrow up to $75 million, as further discussed in Note 9, Receivables Securitization and Repurchase Facility, and (v) entered into $1.6 billion of interest rate hedges associated with anticipated financing needs, as further discussed in Note 20, Subsequent Events. The shareholders of Centrica approved the acquisition on August 20, 2020. The transaction has received approvals under the Canadian Competition Act and early termination of the waiting period under the HSR Act has been granted. The transaction remains subject to customary closing conditions, including the receipt of approval under the Federal Power Act. The acquisition is targeted to close by December 31, 2020. There are no assurances that the conditions to the consummation of the acquisition of Direct Energy will be satisfied or that the acquisition of Direct Energy will be consummated on the terms agreed to, or at all. Midwest Generation Lease Purchase On September 29, 2020, Midwest Generation acquired all of the ownership interests in the Powerton facility and Units 7 and 8 of the Joliet facility, which were being leased through 2034 and 2030, respectively, for approximately $260 million. The purchase was initially funded with cash-on-hand. The Company anticipates drawing on its Revolving Credit Facility in an amount equal to the previously existing operating lease liability of $148 million before December 31, 2020. Stream Energy Acquisition On August 1, 2019, the Company acquired Stream Energy's retail electricity and natural gas operating in 9 states and Washington, D.C. for $329 million, including working capital and other adjustments of approximately $29 million. The acquisition increased NRG's retail portfolio by approximately 600,000 RCEs or 450,000 customers. The purchase price was allocated as follows: (In millions) Account receivable $ 98 Accounts payable (73) Other net current and non-current working capital 5 Marketing partnership 154 Customer relationships 85 Trade name 28 Other intangible assets 26 Goodwill (a) 6 Stream Purchase Price $ 329 (a) Goodwill arising from the acquisition is attributed to the value of the platform acquired and the synergies expected from combining the operations of Stream Energy with NRG's existing businesses. Goodwill of $5 million and $1 million was assigned to the Texas and East segments, respectively, and is not deductible for tax purposes Discontinued Operations Sale of South Central Portfolio On February 4, 2019, the Company completed the sale of the South Central Portfolio to Cleco for cash consideration of $1 billion excluding working capital and other adjustments. The Company concluded that the divested business met the criteria for discontinued operations as of December 31, 2018, as the disposition represented a strategic shift in the business in which NRG operates and the criteria for held-for-sale were met. As such, all prior period results for the operations of the South Central Portfolio, except for the Cottonwood facility as discussed below, were reclassified as discontinued operations at December 31, 2018. In connection with the transaction, NRG also entered into a transition services agreement to provide certain corporate services to the divested business. The South Central Portfolio includes the 1,153 MW Cottonwood natural gas generating facility. Upon the closing of the sale of the South Central Portfolio, NRG entered into an agreement with Cleco to leaseback the Cottonwood facility through 2025. Due to its continuing involvement with the Cottonwood facility, NRG did not use held-for-sale or discontinued operations treatment in accounting for the Cottonwood facility. Summarized results of the South Central Portfolio discontinued operations were as follows: Three months ended Nine months ended (In millions) September 30, 2019 September 30, 2019 Operating revenues $ — $ 31 Operating costs and expenses — (23) Gain from operations of discontinued components — 8 (Loss)/Gain on disposal of discontinued operations, net of tax (1) 27 (Loss)/Gain from discontinued operations, including disposal, net of tax $ (1) $ 35 Carlsbad On February 6, 2018, NRG entered into an agreement with NRG Yield and GIP to sell 100% of its membership interests in Carlsbad Energy Holdings LLC, which owns the Carlsbad project, for $385 million of cash consideration, excluding working capital adjustments. The primary condition to close the Carlsbad transaction was the completion of the sale of NRG Yield and the Renewables Platform. At the time of the sale of NRG Yield and the Renewables Platform in August 2018, the Company concluded that the Carlsbad project met the criteria for discontinued operations and accordingly, all prior period results for Carlsbad were reclassified as discontinued operations. The transaction closed on February 27, 2019. Carlsbad continues to have a ground lease and easement agreement with NRG with an initial term ending in 2039 and two, ten Summarized results of Carlsbad discontinued operations were as follows: Three months ended Nine months ended (In millions) September 30, 2019 September 30, 2019 Operating revenues $ — $ 19 Operating costs and expenses — (9) Other expenses — (5) Gain from discontinued operations, net of tax — 5 (Loss)/gain on disposal of discontinued operations, net of tax (1) 330 Other Commitments, Indemnification and Fees — 27 (Loss)/gain on disposal of discontinued operations, net of tax (1) 357 (Loss)/gain from discontinued operations, including disposal, net of tax $ (1) $ 362 GenOn On June 14, 2017, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Texas Bankruptcy Court. As a result of the bankruptcy filings, NRG concluded that it no longer controlled GenOn as it was subject to the control of the Texas Bankruptcy Court; and accordingly, NRG deconsolidated GenOn and its subsidiaries for financial reporting purposes as of such date. Summarized results of GenOn discontinued operations were as follows: Nine months ended (In millions) September 30, 2019 Gain from discontinued operations, net of tax $ 2 Dispositions The Company completed other asset sales for cash proceeds of $15 million and $22 million during the nine months ended September 30, 2020 and 2019, respectively. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For cash and cash equivalents, funds deposited by counterparties, restricted cash, accounts and other receivables, accounts payable, and cash collateral paid and received in support of energy risk management activities, the carrying amounts approximate fair values because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows: September 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Notes receivable $ 10 $ 7 $ 11 $ 8 Liabilities: Long-term debt, including current portion (a) 5,854 6,309 5,956 6,504 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets The fair value of the Company's publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. The fair value of debt securities, non-publicly traded long-term debt and certain notes receivable of the Company are based on expected future cash flows discounted at market interest rates or current interest rates for similar instruments with equivalent credit quality and are classified as Level 3 within the fair value hierarchy. The following table presents the level within the fair value hierarchy for long-term debt, including current portion, as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (In millions) Level 2 Level 3 Level 2 Level 3 Long-term debt, including current portion $ 6,305 $ 4 $ 6,388 $ 116 Recurring Fair Value Measurements Debt securities, equity securities, and trust fund investments, which are comprised of various U.S. debt and equity securities, and derivative assets and liabilities, are carried at fair market value. The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: September 30, 2020 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 15 $ — $ 15 $ — Nuclear trust fund investments: Cash and cash equivalents 25 25 — — U.S. government and federal agency obligations 49 48 1 — Federal agency mortgage-backed securities 92 — 92 — Commercial mortgage-backed securities 38 — 38 — Corporate debt securities 144 — 144 — Equity securities 402 402 — — Foreign government fixed income securities 6 — 6 — Other trust fund investments: U.S. government and federal agency obligations 1 1 — — Derivative assets: Commodity contracts 893 74 592 227 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 72 Equity securities 7 Total assets $ 1,744 $ 550 $ 888 $ 227 Derivative liabilities: Commodity contracts $ 813 $ 70 $ 568 $ 175 Total liabilities $ 813 $ 70 $ 568 $ 175 December 31, 2019 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 20 $ — $ 20 $ — Nuclear trust fund investments: Cash and cash equivalents 17 17 — — U.S. government and federal agency obligations 68 68 — — Federal agency mortgage-backed securities 100 — 100 — Commercial mortgage-backed securities 29 — 29 — Corporate debt securities 109 — 109 — Equity securities 388 388 — — Foreign government fixed income securities 5 — 5 — Other trust fund investments: U.S. government and federal agency obligations 1 1 — — Derivative assets: Commodity contracts 1,170 84 893 193 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 78 Equity securities 8 Total assets $ 1,993 $ 558 $ 1,156 $ 193 Derivative liabilities: Commodity contracts $ 1,103 $ 143 $ 805 $ 155 Total liabilities $ 1,103 $ 143 $ 805 $ 155 The following tables reconcile, for the three and nine months ended September 30, 2020 and 2019, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Derivatives (a) Derivatives (a) Beginning balance $ 152 $ 38 Total (losses) realized/unrealized— included in earnings (92) (18) Purchases (10) 6 Transfers into Level 3 (b) (11) 22 Transfers out of Level 3 (b) 13 4 Ending balance $ 52 $ 52 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 period end $ 23 $ 50 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2019 Nine months ended September 30, 2019 (In millions) Debt Securities Derivatives (a) Total Debt Securities Derivatives (a) Total Beginning balance $ 19 $ 97 $ 116 $ 19 $ 20 $ 39 Contracts added from acquisitions — (2) (2) — (3) (3) Total (losses)/gains realized/unrealized: Included in earnings — (18) (18) 1 (45) (44) Included in OCI (14) — (14) (14) — (14) Cash received — — — (1) — (1) Purchases — 38 38 — 26 26 Transfers into Level 3 (b) — (126) (126) — 4 4 Transfers out of Level 3 (b) — 24 24 — 11 11 Ending balance $ 5 $ 13 $ 18 $ 5 $ 13 $ 18 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 period end — 44 44 1 13 14 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 Derivative Fair Value Measurements A portion of NRG's contracts are exchange-traded contracts with readily available quoted market prices. A majority of NRG's contracts are non-exchange-traded contracts valued using prices provided by external sources, primarily price quotations available through brokers or over-the-counter and on-line exchanges. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available. These contracts are valued based on various valuation techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of the observable market data with similar characteristics. As of September 30, 2020, contracts valued with prices provided by models and other valuation techniques make up 25% of derivative assets and 22% of derivative liabilities. NRG's significant positions classified as Level 3 include physical and financial power executed in illiquid markets, as well as FTRs. The significant unobservable inputs used in developing fair value include illiquid power location pricing, which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. For FTRs, NRG uses the most recent auction prices to derive the fair value. The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of September 30, 2020 and December 31, 2019: September 30, 2020 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Power Contracts $ 196 $ 167 Discounted Cash Flow Forward Market Price (per MWh) $ 10 $ 116 $ 24 FTRs 31 8 Discounted Cash Flow Auction Prices (per MWh) (50) 43 0 $ 227 $ 175 December 31, 2019 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Power Contracts $ 151 $ 139 Discounted Cash Flow Forward Market Price (per MWh) $ 8 $ 218 $ 24 FTRs 42 16 Discounted Cash Flow Auction Prices (per MWh) (105) 213 0 $ 193 $ 155 The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2020 and December 31, 2019: 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) The fair value of each contract is discounted using a risk-free interest rate. In addition, the Company applies a credit reserve to reflect credit risk, which is calculated based on published default probabilities. As of September 30, 2020, the credit reserve resulted in a $1 million increase primarily within operating revenue. As of December 31, 2019, the credit reserve did not result in a significant change in fair value in operating revenue and cost of operations. Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies , to the Company's 2019 Form 10-K, the following is a discussion of the concentration of credit risk for the Company's contractual obligations. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. NRG is exposed to counterparty credit risk through various activities including wholesale sales, fuel purchases and retail supply arrangements, as well as retail customer credit risk through its retail load activities. Counterparty Credit Risk The Company's counterparty credit risk policies are disclosed in its 2019 Form 10-K. As of September 30, 2020, counterparty credit exposure, excluding credit exposure from RTOs, ISOs, registered commodity exchanges and certain long-term agreements, was $232 million and NRG held collateral (cash and letters of credit) against those positions of $19 million, resulting in a net exposure of $214 million NRG periodically receives collateral from counterparties in excess of their exposure. Collateral amounts shown include such excess while net exposure shown excludes excess collateral received. Approximately 39% of the Company's exposure before collateral is expected to roll off by the end of 2021. Counterparty credit exposure is valued through observable market quotes and discounted at a risk free interest rate. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a)(b) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 88 % Financial institutions 12 Total as of September 30, 2020 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 59 % Non-investment grade/non-rated 41 Total as of September 30, 2020 100 % (a) Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices (b) The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long-term contracts The Company currently has $45 million of exposure to two wholesale counterparties in excess of 10% of total net exposure discussed above as of September 30, 2020. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, NRG does not anticipate a material impact on its financial position or results of operations from nonperformance by any of NRG's counterparties. RTOs and ISOs The Company participates in the organized markets of CAISO, ERCOT, ISO-NE, MISO, NYISO and PJM, known as RTOs or ISOs. Trading in these markets is approved by FERC, or in the case of ERCOT, approved by the PUCT, and includes credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to NRG’s share of the overall market and are excluded from the above exposures. Exchange Traded Transactions The Company enters into commodity transactions on registered exchanges, notably ICE, NYMEX and Nodal. These clearinghouses act as the counterparty and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk. Long-Term Contracts Counterparty credit exposure described above excludes credit risk exposure under certain long-term contracts, primarily solar PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company values these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. Based on these valuation techniques, as of September 30, 2020, aggregate credit risk exposure managed by NRG to these counterparties was approximately $621 million for the next five years. Retail Customer Credit Risk The Company is exposed to retail credit risk through the Company's retail electricity providers, which serve C&I customers and the Mass market. Retail credit risk results in losses when a customer fails to pay for services rendered. The losses may result from both non-payment of customer accounts receivable and the loss of in-the-money forward value. The Company manages retail credit risk through the use of established credit policies that include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements. As of September 30, 2020, the Company's retail customer credit exposure to C&I and Mass customers was diversified across many customers and various industries, as well as government entities. The Company is also subject to risk with respect to its residential solar customers. Current economic conditions may affect the Company's customers' ability to pay bills in a timely manner, which could increase customer delinquencies and may lead to an increase in credit losses. |
Nuclear Decommissioning Trust F
Nuclear Decommissioning Trust Fund | 9 Months Ended |
Sep. 30, 2020 | |
Regulated Operations [Abstract] | |
Nuclear Decommissioning Trust Fund | Nuclear Decommissioning Trust Fund NRG's Nuclear Decommissioning Trust Fund assets, which are for the decommissioning of its 44% interest in STP, are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations , because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to the Nuclear Decommissioning Trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment. The following table summarizes the aggregate fair values and unrealized gains and losses for the securities held in the trust funds, as well as information about the contractual maturities of those securities. As of September 30, 2020 As of December 31, 2019 (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 $ — $ — — $ 17 $ — $ — — U.S. government and federal agency obligations 49 7 — 12 68 4 — 11 Federal agency mortgage-backed securities 92 4 — 24 100 3 — 24 Commercial mortgage-backed securities 38 2 — 28 29 1 1 24 Corporate debt securities 144 12 — 12 109 6 — 11 Equity securities 474 321 1 — 466 324 — — Foreign government fixed income securities 6 1 — 10 5 — — 10 Total $ 828 $ 347 $ 1 $ 794 $ 338 $ 1 The following table summarizes proceeds from sales of available-for-sale securities held in the trust funds and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method. Nine months ended September 30, (In millions) 2020 2019 Realized gains $ 22 $ 8 Realized losses (11) (7) Proceeds from sale of securities 318 271 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Energy-Related Commodities As of September 30, 2020, NRG had energy-related derivative instruments extending through 2034. The Company marks these derivatives to market through the statement of operations. NRG has executed power purchase agreements extending through 2037 that qualified for the NPNS exception and were therefore exempt from fair value accounting treatment. Interest Rate Swaps NRG was exposed to changes in interest rates through the Company's issuance of variable rate debt. In order to manage the Company's interest rate risk, NRG entered into interest rate swap agreements. As of September 30, 2020, NRG had no interest rate derivative instruments as a result of the early termination of such contracts in connection with the repayment of the 2023 Term Loan Facility during the second quarter of 2019. As of November 5, 2020, the Company entered into $1.6 billion of interest rate hedges associated with anticipated financing needs. Volumetric Underlying Derivative Transactions The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of September 30, 2020 and December 31, 2019. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. Total Volume (In millions) Category Units September 30, 2020 December 31, 2019 Emissions Short Ton 1 3 Renewable Energy Certificates Certificates 3 1 Coal Short Ton 4 10 Natural Gas MMBtu (264) (181) Power MWh 51 38 Capacity MW/Day (1) (1) Fair Value of Derivative Instruments The following table summarizes the fair value within the derivative instrument valuation on the balance sheets: Fair Value Derivative Assets Derivative Liabilities (In millions) September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Commodity contracts current $ 578 $ 860 $ 495 $ 781 Commodity contracts long-term 315 310 318 322 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 893 $ 1,170 $ 813 $ 1,103 The Company has elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Company's derivative assets or liabilities are recorded on a separate line item on the balance sheet. The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of September 30, 2020 Commodity contracts: Derivative assets $ 893 $ (738) $ (1) $ 154 Derivative liabilities (813) 738 — (75) Total commodity contracts $ 80 $ — $ (1) $ 79 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of December 31, 2019 Commodity contracts: Derivative assets $ 1,170 $ (909) $ (7) $ 254 Derivative liabilities (1,103) 909 73 (121) Total commodity contracts $ 67 $ — $ 66 $ 133 Impact of Derivative Instruments on the Statements of Operations Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow and fair value hedges are reflected in current period results of operations. The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's statement of operations. The effect of commodity hedges is included within operating revenues and cost of operations and the effect of interest rate hedges is included in interest expense. (In millions) Three months ended September 30, Nine months ended September 30, Unrealized mark-to-market results 2020 2019 2020 2019 Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges $ (101) $ (118) $ (62) $ (88) Reversal of acquired (gain)/loss positions related to economic hedges (2) (3) 2 (4) Net unrealized (losses)/gains on open positions related to economic hedges (15) 57 73 69 Total unrealized mark-to-market (losses)/gains for economic hedging activities (118) (64) 13 (23) Reversal of previously recognized unrealized (gains) on settled positions related to trading activity (7) (1) (14) (8) Net unrealized gains/(losses) on open positions related to trading activity 2 (3) 19 23 Total unrealized mark-to-market (losses)/gains for trading activity (5) (4) 5 15 Total unrealized (losses)/gains $ (123) $ (68) $ 18 $ (8) Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Unrealized gains/(losses) included in operating revenues $ 34 $ (214) $ 83 $ 66 Unrealized (losses)/gains included in cost of operations (157) 146 (65) (74) Total impact to statement of operations — energy commodities $ (123) $ (68) $ 18 $ (8) Total impact to statement of operations — interest rate contracts $ — $ — $ — $ (38) The reversals of acquired gain or loss positions were valued based upon the forward prices on the acquisition date. The roll-off amounts were offset by realized gains or losses at the settled prices and are reflected in operating revenue or cost of operations during the same period. For the nine months ended September 30, 2020, the $73 million unrealized gain from open economic hedge positions was primarily the result of an increase in value of forward positions as a result of decreases in New York capacity and power prices, as well as increases in ERCOT power prices. For the nine months ended September 30, 2019, the $69 million unrealized gain from open economic hedge positions was primarily the result of an increase in value of forward purchases of ERCOT heat rate due to ERCOT heat rate expansion. Credit Risk Related Contingent Features Certain of the Company's hedging agreements contain provisions that require the Company to post additional collateral if the counterparty determines that there has been deterioration in credit quality, generally termed “adequate assurance” under the agreements, or require the Company to post additional collateral if there were a downgrade in the Company's credit rating. The collateral required for contracts with adequate assurance clauses that are in a net liability position as of September 30, 2020 was $35 million. The Company is also party to certain marginable agreements under which it has net liability position, but the counterparty has not called for the collateral due, which was $8 million as of September 30, 2020. If called for by the counterparty, $3 million of additional collateral would be required for all contracts with credit rating contingent features as of September 30, 2020. See Note 5, Fair Value of Financial Instruments , for discussion regarding concentration of credit risk. |
Impairments
Impairments | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Impairments | Impairments 2020 Impairment Losses Home Solar — During the third quarter of 2020, the Company concluded its Home Solar business was held for sale as a result of advanced negotiations to sell the business. NRG recorded impairment losses of $29 million in the West/Other segment to adjust the carrying amount of the assets and liabilities to fair market value based on indicative sale prices. As of September 30, 2020, there were $88 million of other non-current assets and $44 million of other non-current liabilities classified as held for sale. Petra Nova Parish Holdings — During the first quarter of 2020, due to the decline in oil prices, NRG determined that the carrying amount of the Company’s equity method investment exceeded the fair value of the investment and that the decline is considered to be other-than-temporary. In determining the fair value, the Company utilized an income approach to estimate future project cash flows. The Company recorded an impairment loss of $18 million in the Texas segment, which included the anticipated drawdown of the $12 million letter of credit posted in September 2019 to cover certain project debt reserve requirements. 2019 Impairment Losses Petra Nova Parish Holdings — During the third quarter of 2019, NRG contributed $95 million in cash to Petra Nova and posted a $12 million letter of credit to cover certain project debt reserve requirements. The cash portion of the contribution was used by Petra Nova to prepay a significant portion of the project debt. As a result, the previously disclosed guarantee of up to $124 million related to the project level debt provided by NRG was canceled and the remaining project debt has now become non-recourse to NRG. In relation to this contribution, the Company evaluated the project for impairment and determined that the carrying amount of the Company's equity method investment exceeded the fair value of the investment and that the decline is considered to be other-than-temporary. In determining the fair value, the Company utilized an income approach and considered project specific assumptions for the estimated future project cash flows. The Company measured the impairments loss as the difference between the carrying amount and the fair value of the investment and recorded an impairment loss of $101 million. Other Impairments — During the nine months ended September 30, 2019, the Company recorded $7 million of impairment losses of cost investments and intangible assets. |
Long-term Debt
Long-term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Long-term debt consisted of the following: (In millions, except rates) September 30, 2020 December 31, 2019 Interest rate % Recourse debt: 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 733 733 5.250 Convertible Senior Notes, due 2048 (a) 575 575 2.750 Senior Secured First Lien Notes, due 2024 600 600 3.750 Senior Secured First Lien Notes, due 2029 500 500 4.450 Revolving Credit Facility — 83 L + 1.750 Tax-exempt bonds 466 466 1.30 - 6.00 Subtotal recourse debt 5,925 6,008 Non-recourse debt: Other 4 34 various Subtotal all non-recourse debt 4 34 Subtotal long-term debt (including current maturities) 5,929 6,042 Less current maturities (3) (88) Less debt issuance costs (59) (65) Discounts (75) (86) Total long-term debt $ 5,792 $ 5,803 (a) As of the ex-dividend date of October 30, 2020, the Convertible Notes were convertible at a price of $46.24, which is equivalent to a conversion rate of approximately 21.62 shares of common stock per $1,000 principal amount Recourse Debt Revolving Credit Facility The Company had $83 million outstanding under its Revolving Credit Facility as of December 31, 2019, which was used to repay the outstanding indebtedness on the Agua Caliente Borrower 1 notes on a leverage-neutral basis during the fourth quarter of 2019. Due to market conditions, primarily as a result of COVID-19, the Company drew upon the facility in the first quarter of 2020 as a precaution and to proportionally increase cash on hand, and fully repaid the outstanding borrowings during the second quarter of 2020. During the third quarter of 2020, the Company amended its existing credit agreement to, among other things, (i) increase the existing revolving commitments in an aggregate amount of $802 million, and (ii) provide for a new tranche of revolving commitments in an aggregate amount of $273 million with a maturity date that is 30 months after the date of closing of the Direct Energy acquisition (the "Acquisition Closing Date"). The maturity date of the new revolving tranche of commitments may, upon request by the Company, and at the option of each applicable lender under the new tranche be extended by 12 months, but not beyond May 28, 2024, which is the maturity date of the existing and increased commitments. Other than with respect to the maturity date, the terms of all revolving commitments and loan made pursuant thereto are identical. The increase in the existing commitments, and the commitments with respect to the new tranche were effective on August 20, 2020 but will only become available upon the Acquisition Closing Date. For further discussion of the acquisition of Direct Energy see Note 4, Acquisitions, Discontinued Operations and Dispositions . Upon the Acquisition Closing Date, total revolving commitments available, subject to usage, under the amended credit agreement will be $3.7 billion. In addition, the amendment includes changes to, among other things, (i) permit the borrowing of up to the full amount of the revolving commitments in Canadian dollars, (ii) increase the swingline facility from $50 million to $100 million and provide a $10 million swingline facility in Canadian dollars, (iii) increase the credit facilities lien basket from the greater of $6 billion and 30% of total assets to the greater of $10 billion and 30% of total assets, (iv) increase the credit facilities debt basket from $6 billion to $10 billion, (v) increase the basket for securitization indebtedness from $750 million to $1.7 billion, (vi) provide an additional indebtedness basket equal to $600 million for certain liquidity facilities, and (vii) make certain other changes to the existing covenants and other provisions. Tax-Exempt Bonds On March 11, 2020, NRG issued $59 million in aggregate principal amount of NRG Dunkirk 2020 1.30% tax-exempt refinancing bonds due 2042 ("the Bonds"). The Bonds are guaranteed on a first-priority basis by each of NRG’s current and future subsidiaries that guarantee indebtedness under its credit agreement. The Bonds are secured by a first priority security interest in the same collateral that is pledged for the benefit of the lenders under NRG’s credit agreement, which consists of a substantial portion of the property and assets owned by NRG and the guarantors. The collateral securing the Bonds will, at the request of NRG, be released if NRG satisfies certain conditions, including receipt of an investment grade rating on its senior, unsecured debt securities from two out of the three rating agencies, subject to reversion if those rating agencies withdraw their investment grade rating of the Bonds or any of NRG’s senior, unsecured debt securities or downgrade such rating below investment grade. The Bonds are subject to mandatory tender and purchase on April 3, 2023 and have a final maturity date of April 1, 2042. NRG used the net proceeds from the offering to redeem the existing principal amount of outstanding Dunkirk Power LLC 5.875% tax exempt bonds due 2042. Non-Recourse Debt Credit Default Swap Facility On January 4, 2019, the Company entered into an $80 million credit agreement to issue letters of credit, which is currently supporting the Cottonwood facility lease. Annual fees of 1.33% on the facility were paid quarterly in advance. On August 13, 2020, the agreement was amended permitting the Company to increase the size of the facility and fees on the facility were adjusted to reflect the cost of the credit default swaps that serve as collateral for the facility. In order to increase the Company's collective collateral facilities in connection with the Direct Energy acquisition, NRG expanded the facility allowing for the issuance of an additional $50 million of letters of credit as of September 30, 2020. The Company has further expanded the facility to a total capacity of $167 million as of November 5, 2020. As of September 30, 2020, $80 million was issued under this facility. |
Investments Accounted for Using
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities Disclosure [Abstract] | |
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs Entities that are not Consolidated NRG accounts for the Company's significant investments using the equity method of accounting. NRG's carrying value of equity investments can be impacted by a number of elements including impairments, unrealized gains and losses on derivatives and movements in foreign currency exchange rates. PG&E Bankruptcy — Agua Caliente and two of the three Ivanpah units are party to PPAs with PG&E. Both projects have project financing with the U.S. DOE. On January 29, 2019, PG&E Corp. and primary operating subsidiary utility PG&E filed for Chapter 11 relief in the California Bankruptcy Court. As a result of the bankruptcy filing, Agua Caliente and the two Ivanpah units were issued notices of events of default under their respective loan agreements. On September 9, 2019, PG&E filed a plan of reorganization that would assume all power purchase agreements, including those held by Agua Caliente and the two Ivanpah units. The California Bankruptcy Court approved the PG&E plan and the Confirmation Order was entered on June 19, 2020. The plan went effective, and PG&E emerged from bankruptcy on July 1, 2020. In July 2020, the U.S. DOE agreed to waivers of the bankruptcy-related events of default with respect to the Agua Caliente and Ivanpah projects. Subsequent to PG&E's emergence from bankruptcy, the Agua Caliente and the Ivanpah projects were allowed to resume distributions, and as of November 5, 2020, NRG received $50 million. NRG renewed its efforts to sell its 35% interest in Agua Caliente in July 2020, following PG&E's emergence from bankruptcy. NRG's maximum exposure to loss is limited to its equity investment, which was $197 million for Agua Caliente and $26 million for Ivanpah as of September 30, 2020. Variable Interest Entities that are Consolidated The Company has a controlling financial interest in certain entities that have been identified as VIEs under ASC 810. These arrangements are related to the Receivables Facility as further described in Note 9, Receivables Securitization and Repurchase Facility, and tax equity arrangements entered into with third-parties in order to finance the cost of solar energy systems under operating leases eligible for certain tax credits as further described in Note 2, Summary of Significant Accounting Policies, to the Company's 2019 Form 10-K. During the first quarter of 2020, the Company repurchased its partners' equity interest in one of the partnerships. As the Company retains control of its interest, the repurchase was recorded to equity. During the third quarter of 2020, the remaining Home Solar VIE was reclassified to held for sale as further discussed in Note 8, Impairments . The summarized financial information for the Company's consolidated VIEs consisted of the following: (In millions) September 30, 2020 December 31, 2019 Accounts receivable $ 887 $ — Other current assets 4 3 Net property, plant and equipment — 71 Other long-term assets 25 27 Total assets 916 101 Current liabilities 5 4 Long-term debt — 24 Other long-term liabilities 27 8 Total liabilities 32 36 Redeemable noncontrolling interest — 20 Net assets less noncontrolling interest $ 884 $ 45 |
Changes in Capital Structure
Changes in Capital Structure | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Changes in Capital Structure | Changes in Capital Structure As of September 30, 2020 and December 31, 2019, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2019 421,890,790 (172,894,601) 248,996,189 Shares issued under LTIPs 1,150,559 — 1,150,559 Shares issued under ESPP — 63,455 63,455 Shares repurchased — (6,062,783) (6,062,783) Balance as of September 30, 2020 423,041,349 (178,893,929) 244,147,420 Shares issued under LTIPs 5,400 — 5,400 Shares issued under ESPP — 68,014 68,014 Balance as of November 5, 2020 423,046,749 (178,825,915) 244,220,834 Share Repurchases The Company adopted, in the fourth quarter of 2019, a long-term capital allocation policy that targets allocating 50% of cash available for allocation generated each year to growth investments and 50% to be returned to shareholders. The return of capital to shareholders is expected to be completed through the increased dividend discussed below, supplemented by share repurchases. The following repurchases have been made during the nine months ended September 30, 2020: Total number of shares purchased Average price paid per share Amounts paid for shares purchased (in millions) 2020 repurchases: Repurchases 6,062,783 $ 197 Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances (a) 711,248 27 Total Share Repurchases during the nine months ended September 30, 2020 6,774,031 $33.05 $ 224 (a) NRG elected to pay cash for tax withholding on equity awards instead of issuing actual shares to management. The average price per equivalent shares withheld was $38.23 Employee Stock Purchase Plan In March 2019, the Company reopened participation in the ESPP, which allows eligible employees to elect to withhold between 1% and 10% of their eligible compensation to purchase shares of NRG common stock at the lesser of 95% of its market value on the offering date or 95% of the fair market value on the exercise date. An offering date will occur each April 1 and October 1. An exercise date will occur each September 30 and March 31. NRG Common Stock Dividends Beginning in the first quarter of 2020, NRG increased the annual dividend to $1.20 from $0.12 per share and expects to target an annual dividend growth rate of 7-9% per share in subsequent years. A quarterly dividend of $0.30 per share was paid on the Company's common stock during the three months ended September 30, 2020. On October 23, 2020, NRG declared a quarterly dividend on the Company's common stock of $0.30 per share, payable on November 16, 2020 to stockholders of record as of November 2, 2020. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted income per share is computed in a manner consistent with that of basic income per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The outstanding non-qualified stock options, non-vested restricted stock units, market stock units, and relative performance stock units are not considered outstanding for purposes of computing basic income per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method. The Convertible Senior Notes are convertible, under certain circumstances, into the Company’s common stock, cash or combination thereof (at NRG's option). There is no dilutive effect for the Convertible Senior Notes due to the Company’s expectation to settle the liability in cash. The reconciliation of NRG's basic and diluted income per share is shown in the following table: Three months ended September 30, Nine months ended September 30, (In millions, except per share data) 2020 2019 2020 2019 Basic income per share: Net income available to common shareholders $ 249 $ 372 $ 683 $ 1,055 Weighted average number of common shares outstanding - basic 244 254 246 266 Income per weighted average common share — basic $ 1.02 $ 1.46 $ 2.78 $ 3.97 Diluted income per share: Net income available to common shareholders $ 249 $ 372 $ 683 $ 1,055 Weighted average number of common shares outstanding - basic 244 254 246 266 Incremental shares attributable to the issuance of equity compensation (treasury stock method) 1 2 1 2 Weighted average number of common shares outstanding - dilutive 245 256 247 268 Income per weighted average common share — diluted $ 1.02 $ 1.45 $ 2.77 $ 3.94 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting As part of perfecting the integrated model, in which the majority of the Company’s generation serves its retail customers, the Company began managing its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus in 2020. As a result, the Company changed its business segments from Retail and Generation to Texas, East and West/Other beginning in the first quarter of 2020, as further described in Note 1, Nature of Business . The Company's updated segment structure reflects how management currently makes financial decisions and allocates resources The financial information for the three and nine months ended September 30, 2019 was recast to reflect the current segment structure. In February 2019, as described in Note 4, Acquisitions, Discontinued Operations and Dispositions , the Company completed the sales of the South Central Portfolio and Carlsbad. The financial information for the three and nine months ended September 30, 2019 presented below reflects the presentation of these entities as discontinued operations within the corporate segment. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and allocation of capital, as well as net income/(loss). Three months ended September 30, 2020 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 1,992 $ 693 $ 122 $ — $ 2 $ 2,809 Depreciation and amortization 49 34 9 7 — 99 Impairment losses — — 29 — — 29 Equity in earnings of unconsolidated affiliates — — 36 — — 36 Income/(loss) from continuing operations before income taxes 288 149 17 (113) — 341 Income/(loss) from continuing operations 288 149 17 (205) — 249 Net income/(loss) attributable to NRG Energy, Inc $ 288 $ 149 $ 17 $ (205) $ — $ 249 Three months ended September 30, 2019 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 2,208 $ 679 $ 111 $ — $ (2) $ 2,996 Depreciation and amortization 45 31 8 7 — 91 Equity in earnings of unconsolidated affiliates 1 — 28 — — 29 Income/(loss) from continuing operations before income taxes 348 121 16 (106) 1 380 Income/(loss) from continuing operations 348 121 15 (111) 1 374 Loss from discontinued operations, net of tax — — — (2) — (2) Net income/(loss) 348 121 15 (113) 1 372 Net income/(loss) attributable to NRG Energy, Inc. $ 348 $ 121 $ 15 $ (113) $ 1 $ 372 Nine months ended September 30, 2020 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 4,928 $ 1,798 $ 341 $ — $ (1) $ 7,066 Depreciation and amortization 167 100 25 26 — 318 Impairment losses — — 29 — — 29 Gain on sale of assets — — 1 5 — 6 Equity in (losses)/earnings of unconsolidated affiliates (3) — 40 — — 37 Income/(loss) from continuing operations before income taxes 800 319 84 (304) — 899 Income/(loss) from continuing operations 800 319 83 (519) — 683 Net income/(loss) attributable to NRG Energy, Inc $ 800 $ 319 $ 83 $ (519) $ — $ 683 Nine months ended September 30, 2019 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 5,511 $ 1,812 $ 310 $ — $ (7) $ 7,626 Depreciation and amortization 125 87 26 23 — 261 Reorganization costs 5 — — 11 — 16 Gain on sale of assets — 1 — 1 — 2 Equity in (losses)/earnings of unconsolidated affiliates (5) — 13 — — 8 Loss on debt extinguishment, net — — — (47) — (47) Income/(loss) from continuing operations before income taxes 757 280 11 (382) — 666 Income/(loss) from continuing operations 757 280 10 (390) — 657 Income from discontinued operations, net of tax — — — 399 — 399 Net income 757 280 10 9 — 1,056 Net income attributable to NRG Energy, Inc. $ 757 $ 280 $ 9 $ 9 $ — $ 1,055 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Income Tax Rate The income tax provision consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions, except rates) 2020 2019 2020 2019 Income from continuing operations before income taxes $ 341 $ 380 $ 899 $ 666 Income tax expense from continuing operations 92 6 216 9 Effective income tax rate 27.0 % 1.6 % 24.0 % 1.4 % For the three and nine months ended September 30, 2020, the effective tax rates were higher than the statutory rate of 21% due to state tax expense partially offset by an excess tax benefit related to share-based compensation. For the same periods in 2019, the effective tax rates were lower than the statutory rate of 21% primarily due to the tax benefit for the change in valuation allowance partially offset by state tax expense. On March 27, 2020, the Senate passed the CARES Act to provide emergency relief related to the COVID-19 pandemic. The CARES Act contains federal income tax provisions which, among other things: (i) increases the amount of interest expense that businesses are allowed to deduct by increasing the adjusted taxable income limitation from 30% to 50% for tax years that begin in 2019 and 2020; (ii) permits businesses to carry back to each of the five tax years NOLs arising from tax years beginning after December 31, 2017 and before January 1, 2020; and (iii) temporarily removes the 80% limitation on NOLs until tax years beginning after 2020. NRG does not expect the CARES Act provisions to have a material impact on the tax positions of the Company. Uncertain Tax Benefits As of September 30, 2020, NRG had a non-current tax liability of $21 million for uncertain tax benefits from positions taken on various state income tax returns and accrued interest. For the nine months ended September 30, 2020, NRG accrued an immaterial amount of interest relating to the uncertain tax benefits. As of September 30, 2020, NRG had cumulative interest and penalties related to these uncertain tax benefits of $3 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense. NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia and Canada. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2016. With few exceptions, state and local income tax examinations are no longer open for years prior to 2011. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions NRG provides services to some of its equity method investments under operations and maintenance agreements. Fees for the services under these agreements include recovery of NRG's costs of operating the plants. Certain agreements also include fees for administrative service, a base monthly fee, profit margin and/or annual incentive bonus. The following table summarizes NRG's material related party transactions with third party affiliates: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Revenues from Related Parties Included in Operating Revenues Gladstone $ 1 $ 2 $ 2 $ 3 Ivanpah (a) 11 7 34 25 Midway-Sunset 1 2 4 4 Total $ 13 $ 11 $ 40 $ 32 (a) Also includes fees under project management agreements with each project company |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments First Lien Structure NRG has granted first liens to certain counterparties on a substantial portion of property and assets owned by NRG and the guarantors of its senior debt. NRG uses the first lien structure to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedge agreements for forward sales of power or gas used as a proxy for power. To the extent that the underlying hedge positions for a counterparty are out-of-the-money to NRG, the counterparties would have a claim under the first lien program. As of September 30, 2020, all hedges under the first lien were in-the-money for NRG on a counterparty aggregate basis. Jewett Mine Lignite Contract The Company's Limestone facility historically burned lignite obtained from the Jewett mine, which was operated by TWCC. On or about March 15, 2019, the Jewett mine and related lignite supply agreement with NRG were acquired by Westmoreland Jewett Mining LLC ("Jewett Mining"), a subsidiary of Westmoreland Mining LLC pursuant to a plan of reorganization confirmed by the Texas Bankruptcy Court. Effective August 5, 2020, NRG's subsidiary, NRG Texas LLC, acquired all of the equity interests of Jewett Mining. Active mining under the lignite supply agreement ceased as of December 31, 2016; however, under the terms of the lignite supply agreement, Jewett Mining remains responsible for reclamation activities and NRG is responsible for all reclamation costs. NRG has recorded an adequate ARO liability. The Railroad Commission of Texas has imposed a bond obligation of approximately $99 million for the reclamation of the Jewett mine, which NRG supports through surety bonds. The cost of the reclamation may exceed the value of the bonds. NRG may provide additional performance assurance if required by the Railroad Commission of Texas. Contingencies The Company's material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records accruals for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate accrual for the applicable legal matters, including regulatory and environmental matters as further discussed in Note 18, Regulatory Matters , and Note 19, Environmental Matters . In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Company is unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company's liabilities and contingencies could be at amounts that are different from its currently recorded accruals and that such difference could be material. In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. Washington-St. Tammany and Claiborne Electric Cooperative v. LaGen — On June 28, 2017, plaintiffs Washington-St. Tammany Electric Cooperative, Inc. and Claiborne Electric Cooperative, Inc. filed a lawsuit against LaGen in the United States District Court for the Middle District of Louisiana. The plaintiffs claimed breach of contract against LaGen for allegedly improperly charging the plaintiffs for costs related to the installation and maintenance of certain pollution control technology. Plaintiffs sought damages for the alleged improper charges and a declaration as to which charges were proper under the contract. In February 2020, the court dismissed this lawsuit without prejudice for lack of subject matter jurisdiction. This matter had been appealed to the United States Court of Appeals for the Fifth Circuit, which dismissed the appeals on July 13, 2020. On March 17, 2020, plaintiffs filed a lawsuit in the Nineteenth Judicial District Court for the Parish of East Baton Rouge in Louisiana alleging substantially the same matters. On February 4, 2019, NRG sold the South Central Portfolio, including the entities subject to this litigation. However, NRG has agreed to indemnify the purchaser for certain losses suffered in connection therewith. Sierra club et al. v. Midwest Generation LLC — In 2012, several environmental groups filed a complaint against Midwest Generation with the Illinois Pollution Control Board ("IPCB") alleging violations of environmental law resulting in groundwater contamination. In June 2019, the IPCB found that Midwest Generation violated the law because it had improperly handled coal ash at four facilities in Illinois and caused or allowed coal ash constituents to impact groundwater. On September 9, 2019, Midwest Generation filed a Motion to Reconsider numerous issues, which the court granted in part and denied in part on February 6, 2020. The IPCB will hold hearings to determine the appropriate relief. Midwest Generation has been working with the Illinois EPA to address the groundwater issues since 2010. XOOM Energy Litigation — XOOM is a defendant in two purported class action lawsuits pending in Maryland and New York. The plaintiffs generally claim that they did not receive the savings they were promised in their natural gas and electricity bills. In the Maryland lawsuit, the district court denied plaintiffs' bid to certify the case as a class action on August 18, 2020. The court is resetting the discovery and trial schedule for the remaining plaintiffs' individual claims. In the New York case, XOOM filed a motion to dismiss, which the court granted on September 21, 2018, later entering judgment in XOOM's favor on September 24, 2018. The plaintiffs in the New York case appealed to the U.S. Court of Appeals for the Second Circuit. On July 26, 2019, the Second Circuit reversed the judgment of the district court and remanded to the district court with instructions that plaintiffs be permitted to proceed on their proposed amended complaint. This matter was known and accrued for at the time of the acquisition. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2020 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters Environmental regulatory matters are discussed within Note 19, Environmental Matters. NRG operates in a highly regulated industry and is subject to regulation by various federal and state agencies. As such, NRG is affected by regulatory developments at both the federal and state levels and in the regions in which NRG operates. In addition, NRG is subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRG's businesses. In addition to the regulatory proceedings noted below, NRG and its subsidiaries are parties to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. California Station Power — As the result of unfavorable final and non-appealable litigation, the Company accrued a liability associated with consumption of station power at the Company's Encina power plant facility in California after August 30, 2010. The Company has established an appropriate accrual pending potential regulatory action by San Diego Gas & Electric regarding the Company's Encina facility. South Central — On August 4, 2016, NRG received a document hold notice from FERC regarding conduct in the MISO and PJM markets. FERC Office of Enforcement Staff investigated potential violations of MISO rules involving bidding for the Big Cajun 2 facility, as well as other aspects of NRG’s operations in MISO. On August 18, 2020, FERC Office of Enforcement presented NRG with its preliminary findings. NRG will respond to the preliminary findings on January 15, 2021. FERC has the authority to require disgorgement of profits and to impose penalties and NRG retains any liability following the sale of the South Central Portfolio. ISO-NE — On February 5, 2019, FERC informed the Company that it had made a preliminary finding that the Company violated FERC's market behavior rules in connection with offers made into the ISO-NE Forward Capacity Auction in 2016. On April 26, 2019, NRG responded to the preliminary findings. The investigation is awaiting further Commission action. |
Environmental Matters
Environmental Matters | 9 Months Ended |
Sep. 30, 2020 | |
Environmental Matters Disclosure [Abstract] | |
Environmental Matters | Environmental Matters NRG is subject to a wide range of environmental laws in the development, construction, ownership and operation of projects. These laws generally require that governmental permits and approvals be obtained before construction and during operation of power plants. NRG is also subject to laws regarding the protection of wildlife, including migratory birds, eagles and threatened and endangered species. The electric generation industry has been facing requirements regarding GHGs, combustion byproducts, water discharge and use, and threatened and endangered species that have been put in place in recent years. However, under the current U.S. presidential administration, some of these rules are being reconsidered and reviewed. In general, future laws are expected to require the addition of emissions controls or other environmental controls or to impose certain restrictions on the operations of the Company's facilities, which could have a material effect on the Company's consolidated financial position, results of operations, or cash flows. Federal and state environmental laws generally have become more stringent over time, although this trend could slow or pause in the near term with respect to federal laws under the current U.S. presidential administration. Air On July 8, 2019, the EPA promulgated the ACE rule, which rescinded the CPP, which had sought to broadly regulate CO 2 emissions from the power sector. The ACE rule requires states that have coal-fired EGUs to develop plans to seek heat rate improvements from coal-fired EGUs. Numerous parties have challenged the ACE rule in the D.C. Circuit and numerous parties have filed petitions for reconsideration with the EPA. Water Effluent Limitations Guidelines — In November 2015, the EPA revised the Effluent Limitations Guidelines for Steam Electric Generating Facilities, which imposed more stringent requirements (as individual permits were renewed) for wastewater streams from FGD, fly ash, bottom ash, and flue gas mercury control. On September 18, 2017, the EPA promulgated a final rule that, among other things, postponed the compliance dates to preserve the status quo for FGD wastewater and bottom ash transport water by two years to November 2020 until the EPA amended the rule. On October 13, 2020, the EPA amended the 2015 ELG rule by: (i) altering the stringency of certain limits for FGD wastewater; (ii) relaxing the zero-discharge requirement for bottom ash transport water; and (iii) changing several deadlines. The Company is in the process of estimating the environmental capital expenditures that will be required to comply. Byproducts, Wastes, Hazardous Materials and Contamination In April 2015, the EPA finalized the rule regulating byproducts of coal combustion (e.g., ash and gypsum) as solid wastes under the RCRA. In September 2017, the EPA agreed to reconsider the rule. On July 30, 2018, the EPA promulgated a rule that amends the existing ash rule by extending some of the deadlines and providing more flexibility for compliance. On August 21, 2018, the D.C. Circuit found, among other things, that the EPA had not adequately regulated unlined ponds and legacy ponds. On August 14, 2019, the EPA proposed targeted changes to the April 2015 Rule including changes to address the August 2018 D.C. Circuit decision. On December 2, 2019, the EPA released for comment "Closure Part A Proposal" to revise the CCR Rule to address the D.C. Circuit's 2018 decision regarding the adequacy of clay-lined impoundments, obligations to close all unlined impoundments and related deadlines. On February 20, 2020, the EPA proposed the framework for developing and implementing a federal permit program for states that are not approved to administer the CCR rule. On March 3, 2020, the EPA proposed for comment "A Holistic Approach to Closure Part B," which proposes procedures for obtaining approval to operate existing impoundments with alternative liners. On August 28, 2020, the EPA finalized "A Holistic Approach to Closure Part A: Deadline to Initiate Closure," which amended the April 2015 Rule to address the August 2018 D.C. Circuit decision and extend some of the deadlines. The Company anticipates that the EPA will promulgate additional regulations to further amend the existing rule. The Company has updated its estimates of required environmental capital expenditures. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsAs of November 5, 2020, the Company entered into $1.6 billion of interest rate hedges associated with anticipated financing needs. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Consolidating Financial Information Disclosure [Abstract] | |
Condensed Consolidating Financial Information | Condensed Consolidating Financial Information As of September 30, 2020, the Company had outstanding $4.4 billion of Senior Notes and Convertible Senior Notes due from 2026 to 2048 and outstanding $1.1 billion of Senior Secured Notes due from 2024 to 2029, as shown in Note 10, Long-term Debt . These Senior Notes and Senior Secured Notes are guaranteed by certain of NRG's current and future 100% owned domestic subsidiaries, or guarantor subsidiaries. These guarantees are both joint and several. The non-guarantor subsidiaries include all of NRG's foreign subsidiaries and certain domestic subsidiaries. NRG conducts much of its business through and derives much of its income from its subsidiaries. Therefore, the Company's ability to make required payments with respect to its indebtedness and other obligations depends on the financial results and condition of its subsidiaries and NRG's ability to receive funds from its subsidiaries. There are no restrictions on the ability of any of the guarantor subsidiaries to transfer funds to NRG. However, there may be restrictions for certain non-guarantor subsidiaries. The following condensed consolidating financial information presents the financial information of NRG Energy, Inc., the guarantor subsidiaries and the non-guarantor subsidiaries in accordance with Rule 3-10 of Regulation S-X of the Securities Act. The financial information may not necessarily be indicative of results of operations or financial position had the guarantor subsidiaries or non-guarantor subsidiaries operated as independent entities. In this presentation, NRG Energy, Inc. consists of parent company operations. Guarantor subsidiaries and non-guarantor subsidiaries of NRG are reported on an equity basis. For companies acquired, the fair values of the assets and liabilities acquired have been presented on a push-down accounting basis. Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes, Convertible Senior Notes and Senior Secured Notes as of September 30, 2020: Ace Energy, Inc. NRG Distributed Energy Resources Holdings LLC Reliant Energy Retail Services, LLC Allied Home Warranty GP LLC NRG Distributed Generation PR LLC RERH Holdings, LLC Allied Warranty LLC NRG Dunkirk Operations Inc. Saguaro Power LLC Arthur Kill Power LLC NRG ECOKAP Holdings LLC SGE Energy Sourcing, LLC Astoria Gas Turbine Power LLC NRG El Segundo Operations Inc. SGE Texas Holdco, LLC BidURenergy, Inc. NRG Energy Labor Services LLC Somerset Operations Inc. Cabrillo Power I LLC NRG Energy Services Group LLC Somerset Power LLC Cabrillo Power II LLC NRG Energy Services LLC Stream Energy Columbia, LLC Carbon Management Solutions LLC NRG Generation Holdings Inc. Stream Energy Delaware, LLC Cirro Energy Services, Inc. NRG Greenco LLC Stream Energy Illinois, LLC Cirro Group, Inc. NRG Home & Business Solutions LLC Stream Energy Maryland, LLC Connecticut Jet Power LLC NRG Home Services LLC Stream Energy New Jersey, LLC Devon Power LLC NRG Home Solutions LLC Stream Energy New York, LLC Dunkirk Power LLC NRG Home Solutions Product LLC Stream Energy Pennsylvania, LLC Eastern Sierra Energy Company LLC NRG Homer City Services LLC Stream Georgia Gas SPE, LLC El Segundo Power II LLC NRG HQ DG LLC Stream Ohio Gas & Electric, LLC El Segundo Power, LLC NRG Huntley Operations Inc. Stream SPE GP, LLC Energy Alternatives Wholesale, LLC NRG Identity Protect LLC Stream SPE, Ltd. Energy Choice Solutions LLC NRG Ilion Limited Partnership Texas Genco GP, LLC Energy Plus Holdings LLC NRG Ilion LP LLC Texas Genco Holdings, Inc. Energy Plus Natural Gas LLC NRG International LLC Texas Genco LP, LLC Energy Protection Insurance Company NRG Maintenance Services LLC Texas Genco Services, LP Everything Energy LLC NRG Mextrans Inc. US Retailers LLC Forward Home Security, LLC NRG Middletown Operations Inc. Vienna Operations Inc. GCP Funding Company, LLC NRG Montville Operations Inc. Vienna Power LLC Green Mountain Energy Company NRG North Central Operations Inc. WCP (Generation) Holdings LLC Gregory Partners, LLC NRG Norwalk Harbor Operations Inc. West Coast Power LLC Gregory Power Partners LLC NRG Operating Services, Inc. XOOM Alberta Holdings, LLC Huntley Power LLC NRG Oswego Harbor Power Operations Inc. XOOM British Columbia Holdings, LLC Independence Energy Alliance LLC NRG Portable Power LLC XOOM Energy California, LLC Independence Energy Group LLC NRG Power Marketing LLC XOOM Energy Connecticut, LLC Independence Energy Natural Gas LLC NRG Reliability Solutions LLC XOOM Energy Delaware, LLC Indian River Operations Inc. NRG Renter's Protection LLC XOOM Energy Georgia, LLC Indian River Power LLC NRG Retail LLC XOOM Energy Global Holdings, LLC Meriden Gas Turbines LLC NRG Retail Northeast LLC XOOM Energy Illinois LLC Middletown Power LLC NRG Rockford Acquisition LLC XOOM Energy Indiana, LLC Montville Power LLC NRG Saguaro Operations Inc. XOOM Energy Kentucky, LLC NEO Corporation NRG Security LLC XOOM Energy Maine, LLC New Genco GP, LLC NRG Services Corporation XOOM Energy Maryland, LLC Norwalk Power LLC NRG SimplySmart Solutions LLC XOOM Energy Massachusetts, LLC NRG Advisory Services LLC NRG South Central Operations Inc. XOOM Energy Michigan, LLC NRG Affiliate Services Inc. NRG South Texas LP XOOM Energy New Hampshire, LLC NRG Arthur Kill Operations Inc. NRG Texas Gregory LLC XOOM Energy New Jersey, LLC NRG Astoria Gas Turbine Operations Inc. NRG Texas Holding Inc. XOOM Energy New York, LLC NRG Business Services LLC NRG Texas LLC XOOM Energy Ohio, LLC NRG Cabrillo Power Operations Inc. NRG Texas Power LLC XOOM Energy Pennsylvania, LLC NRG California Peaker Operations LLC NRG Warranty Services LLC XOOM Energy Rhode Island, LLC NRG Cedar Bayou Development Company, LLC NRG West Coast LLC XOOM Energy Texas, LLC NRG Connected Home LLC NRG Western Affiliate Services Inc. XOOM Energy Virginia, LLC NRG Construction LLC Oswego Harbor Power LLC XOOM Energy Washington D.C., LLC NRG Curtailment Solutions, Inc. Reliant Energy Northeast LLC XOOM Energy, LLC NRG Development Company Inc. Reliant Energy Power Supply, LLC XOOM Ontario Holdings, LLC NRG Devon Operations Inc. Reliant Energy Retail Holdings, LLC XOOM Solar, LLC NRG Dispatch Services LLC NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 2,513 $ 297 $ — $ (1) $ 2,809 Operating Costs and Expenses Cost of operations 1,796 230 9 (1) 2,034 Depreciation and amortization 72 21 6 — 99 Impairment losses — 29 — — 29 Selling, general and administrative costs 154 7 92 — 253 Development costs — (1) 2 — 1 Total operating costs and expenses 2,022 286 109 (1) 2,416 Operating Income/(Loss) 491 11 (109) — 393 Other Income/(Expense) Equity in earnings of consolidated subsidiaries — — 540 (540) — Equity in earnings of unconsolidated affiliates — 36 — — 36 Other income, net 4 2 5 — 11 Interest expense (3) — (96) — (99) Total other income/(expense) 1 38 449 (540) (52) Income from Continuing Operations Before Income Taxes 492 49 340 (540) 341 Income tax expense — 1 91 — 92 Net Income $ 492 $ 48 $ 249 $ (540) $ 249 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 6,346 $ 730 $ — $ (10) $ 7,066 Operating Costs and Expenses Cost of operations 4,357 586 (8) (10) 4,925 Depreciation and amortization 232 60 26 — 318 Impairment losses — 29 — — 29 Selling, general and administrative costs 431 19 220 — 670 Reorganization costs — — 3 — 3 Development costs — — 6 — 6 Total operating costs and expenses 5,020 694 247 (10) 5,951 Gain on sale of assets — 1 5 — 6 Operating Income/(Loss) 1,326 37 (242) — 1,121 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 6 — 1,385 (1,391) — Equity in earnings of unconsolidated affiliates — 37 — — 37 Impairment losses on investments — (18) — — (18) Other income, net 14 6 32 — 52 Loss on debt extinguishment, net — — (1) — (1) Interest expense (12) (3) (277) — (292) Total other income/(expense) 8 22 1,139 (1,391) (222) Income from Continuing Operations Before Income Taxes 1,334 59 897 (1,391) 899 Income tax expense — 2 214 — 216 Net Income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 492 $ 48 $ 249 $ (540) $ 249 Other Comprehensive Income Foreign currency translation adjustments, net 5 3 4 (8) 4 Defined benefit plans, net 2 — — (2) — Other comprehensive income 7 3 4 (10) 4 Comprehensive Income $ 499 $ 51 $ 253 $ (550) $ 253 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 Other Comprehensive Income Foreign currency translation adjustments, net 2 1 2 (3) 2 Defined benefit plans, net 5 — — (5) — Other comprehensive income 7 1 2 (8) 2 Comprehensive Income $ 1,341 $ 58 $ 685 $ (1,399) $ 685 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 23 $ 674 $ — $ 697 Funds deposited by counterparties 15 — — — 15 Restricted cash 5 — 1 — 6 Accounts receivable, net 650 1,034 805 (1,363) 1,126 Inventory 253 77 — — 330 Derivative instruments 582 14 — (18) 578 Cash collateral paid in support of energy risk management activities 74 3 — — 77 Prepayments and other current assets 238 16 4 — 258 Total current assets 1,817 1,167 1,484 (1,381) 3,087 Property, plant and equipment, net 1,270 1,159 144 — 2,573 Other Assets Investment in subsidiaries 28 — 4,981 (5,009) — Equity investments in affiliates — 376 — — 376 Operating lease right-of-use assets, net 68 167 110 — 345 Goodwill 400 179 — — 579 Intangible assets, net 684 37 — — 721 Nuclear decommissioning trust fund 828 — — — 828 Derivative instruments 315 10 — (10) 315 Deferred income taxes 435 (32) 2,684 — 3,087 Other non-current assets 168 110 36 — 314 Total other assets 2,926 847 7,811 (5,019) 6,565 Total Assets $ 6,013 $ 3,173 $ 9,439 $ (6,400) $ 12,225 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ 3 $ — $ — $ — $ 3 Current portion of operating lease liabilities 18 33 18 — 69 Accounts payable 933 144 1,039 (1,363) 753 Derivative instruments 505 8 — (18) 495 Cash collateral received in support of energy risk management activities 15 — — — 15 Accrued expenses and other current liabilities 275 71 305 — 651 Total current liabilities 1,749 256 1,362 (1,381) 1,986 Other Liabilities Long-term debt 245 — 5,547 — 5,792 Non-current operating lease liabilities 56 134 107 — 297 Nuclear decommissioning reserve 311 — — — 311 Nuclear decommissioning trust liability 508 — — — 508 Derivative instruments 326 2 — (10) 318 Deferred income taxes — 17 — — 17 Other non-current liabilities 307 266 489 — 1,062 Total other liabilities 1,753 419 6,143 (10) 8,305 Total Liabilities 3,502 675 7,505 (1,391) 10,291 Stockholders’ Equity 2,511 2,498 1,934 (5,009) 1,934 Total Liabilities and Stockholders’ Equity $ 6,013 $ 3,173 $ 9,439 $ (6,400) $ 12,225 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Cash Flows from Operating Activities Net income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 Adjustments to reconcile net income/(loss) to cash provided by operating activities: Distributions from and equity in earnings/(losses) of unconsolidated affiliates and consolidated subsidiaries (6) 6 (1,385) 1,391 6 Depreciation and amortization 232 60 26 — 318 Accretion of asset retirement obligations 19 27 — — 46 Provision for credit losses 66 8 — — 74 Amortization of nuclear fuel 40 — — — 40 Amortization of financing costs and debt discount/premiums — — 23 — 23 Loss on debt extinguishment, net — — 1 — 1 Amortization of emission allowances and energy credits 46 14 — — 60 Amortization of unearned equity compensation — — 17 — 17 Net gain on sale of assets and disposal of assets (16) (1) (5) — (22) Impairment losses — 47 — — 47 Changes in derivative instruments (27) 20 — — (7) Changes in deferred income taxes and liability for uncertain tax benefits (52) 11 243 — 202 Changes in collateral deposits in support of energy risk management activities 91 5 — — 96 Changes in nuclear decommissioning trust liability 39 — — — 39 Changes in other working capital 355 (923) 331 — (237) Net Cash Provided/(Used) by Operating Activities 2,121 (669) (66) — 1,386 Cash Flows from Investing Activities Intercompany dividends — — 2,591 (2,591) — Payments for acquisitions of businesses (15) (262) — — (277) Capital expenditures (115) (28) (24) — (167) Net purchases of emission allowances (15) — — — (15) Investments in nuclear decommissioning trust fund securities (360) — — — (360) Proceeds from the sale of nuclear decommissioning trust fund securities 318 — — — 318 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 8 2 5 — 15 Net contributions to investments in unconsolidated affiliates — 2 — — 2 Net Cash (Used)/Provided by Investing Activities (179) (286) 2,572 (2,591) (484) Cash Flows from Financing Activities Intercompany dividends and transfers (1,894) 964 (1,661) 2,591 — Payments of dividends to common stockholders — — (221) — (221) Payments for share repurchase activity — — (229) — (229) Purchase of and distributions to noncontrolling interests from subsidiaries — (2) — — (2) Proceeds from issuance of common stock — — 1 — 1 Proceeds from issuance of long-term debt — — 59 — 59 Payment of debt issuance costs — — (24) — (24) Repayments of long-term debt (59) (3) — — (62) Net repayment of Revolving Credit Facility — — (83) — (83) Other (6) — — — (6) Net Cash (Used)/Provided by Financing Activities (1,959) 959 (2,158) 2,591 (567) Effect of exchange rate changes on cash and cash equivalents — (2) — — (2) Net (Decrease)/Increase in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (17) 2 348 — 333 Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period 37 21 327 — 385 Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period $ 20 $ 23 $ 675 $ — $ 718 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 2,473 $ 525 $ — $ (2) $ 2,996 Operating Costs and Expenses Cost of operations 1,728 421 6 (2) 2,153 Depreciation and amortization 52 32 7 — 91 Selling, general and administrative costs 132 28 50 — 210 Reorganization costs — — 1 — 1 Development costs — — 1 — 1 Total operating costs and expenses 1,912 481 65 (2) 2,456 Operating Income/(Loss) 561 44 (65) — 540 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 20 — 537 (557) — Equity in earnings of unconsolidated affiliates — 29 — — 29 Impairment losses on investments — (101) (6) — (107) Other income, net 11 1 5 — 17 Interest expense (4) (3) (92) — (99) Total other income/(expense) 27 (74) 444 (557) (160) Income/(Loss) from Continuing Operations Before Income Taxes 588 (30) 379 (557) 380 Income tax expense — 1 5 — 6 Income/(Loss) from Continuing Operations 588 (31) 374 (557) 374 Loss from discontinued operations, net of income tax — — (2) — (2) Net Income Attributable to NRG Energy, Inc. $ 588 $ (31) $ 372 $ (557) $ 372 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 6,382 $ 1,252 $ — $ (8) $ 7,626 Operating Costs and Expenses Cost of operations 4,676 956 25 (8) 5,649 Depreciation and amortization 157 81 23 — 261 Impairment losses 1 — — — 1 Selling, general and administrative costs 366 56 193 — 615 Reorganization costs — — 16 — 16 Development costs — 1 4 — 5 Total operating costs and expenses 5,200 1,094 261 (8) 6,547 Gain on sale of assets 1 1 — — 2 Operating Income/(Loss) 1,183 159 (261) — 1,081 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 32 — 1,266 (1,298) — Equity in earnings of unconsolidated affiliates — 8 — — 8 Impairment losses on investments — (101) (6) — (107) Other income, net 19 10 20 — 49 Loss on debt extinguishment, net — — (47) — (47) Interest expense (11) (12) (295) — (318) Total other income/(expense) 40 (95) 938 (1,298) (415) Income from Continuing Operations Before Income Taxes 1,223 64 677 (1,298) 666 Income tax expense — 2 7 — 9 Income from Continuing Operations 1,223 62 670 (1,298) 657 Income from discontinued operations, net of income tax 9 5 385 — 399 Net Income 1,232 67 1,055 (1,298) 1,056 Less: Net income attributable to noncontrolling interest and redeemable noncontrolling interest — 1 — — 1 Net Income Attributable to NRG Energy, Inc. $ 1,232 $ 66 $ 1,055 $ (1,298) $ 1,055 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the three months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income/(Loss) $ 588 $ (31) $ 372 $ (557) $ 372 Other Comprehensive Loss Foreign currency translation adjustments, net (5) (4) (4) 9 (4) Available-for-sale securities, net — — (14) — (14) Defined benefit plans, net (40) — (41) 40 (41) Other comprehensive loss (45) (4) (59) 49 (59) Comprehensive Income/(Loss) $ 543 $ (35) $ 313 $ (508) $ 313 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 1,232 $ 67 $ 1,055 $ (1,298) $ 1,056 Other Comprehensive Loss Foreign currency translation adjustments, net (5) (4) (4) 9 (4) Available-for-sale securities, net — — (13) — (13) Defined benefit plans, net (40) — (47) 40 (47) Other comprehensive loss (45) (4) (64) 49 (64) Comprehensive Income 1,187 63 991 (1,249) 992 Less: Comprehensive income attributable to redeemable noncontrolling interest — 1 — — 1 Comprehensive Income Attributable to NRG Energy, Inc. $ 1,187 $ 62 $ 991 $ (1,249) $ 991 (a) All significant intercompany transactions have been eliminated in consolidation CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 20 $ 325 $ — $ 345 Funds deposited by counterparties 32 — — — 32 Restricted cash 5 1 2 — 8 Accounts receivable, net 1,293 239 233 (740) 1,025 Inventory 272 111 — — 383 Derivative instruments 856 45 — (41) 860 Cash collateral paid in support of energy risk management activities 182 8 — — 190 Prepayments and other current assets 170 8 67 — 245 Total current assets 2,810 432 627 (781) 3,088 Property, plant and equipment, net 1,483 952 158 — 2,593 Other Assets Investment in subsidiaries 710 — 4,785 (5,495) — Equity investments in affiliates — 388 — — 388 Operating lease right-of-use assets, net 81 261 122 — 464 Goodwill 359 220 — — 579 Intangible assets, net 375 414 — — 789 Nuclear decommissioning trust fund 794 — — — 794 Derivative instruments 308 15 — (13) 310 Deferred income taxes 421 (19) 2,884 — 3,286 Other non-current assets 145 30 65 — 240 Total other assets 3,193 1,309 7,856 (5,508) 6,850 Total Assets $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ — $ 5 $ 83 $ — $ 88 Current portion of operating lease liabilities 20 32 21 — 73 Accounts payable 918 141 403 (740) 722 Derivative instruments 797 25 — (41) 781 Cash collateral received in support of energy risk management activities 32 — — — 32 Accrued expenses and other current liabilities 280 44 339 — 663 Total current liabilities 2,047 247 846 (781) 2,359 Other Liabilities Long-term debt 302 28 5,473 — 5,803 Non-current operating lease liabilities 64 301 118 — 483 Nuclear decommissioning reserve 298 — — — 298 Nuclear decommissioning trust liability 487 — — — 487 Derivative instruments 334 1 — (13) 322 Deferred income taxes — 17 — — 17 Other non-current liabilities 399 153 532 — 1,084 Total other liabilities 1,884 500 6,123 (13) 8,494 Total Liabilities 3,931 747 6,969 (794) 10,853 Redeemable noncontrolling interest in subsidiaries — 20 — — 20 Stockholders’ Equity 3,555 1,926 1,672 (5,495) 1,658 Total Liabilities and Stockholders’ Equity $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Cash Flows from Operating Activities Net income $ 1,232 $ 67 $ 1,055 $ (1,298) $ 1,056 Income from discontinued operations 9 5 385 — 399 Income from continuing operations 1,223 62 670 (1,298) 657 Adjustments to reconcile net income to cash provided by operating activities: Distributions from and equity in losses of unconsolidated affiliates and consolidated subsidiaries (32) (5) (1,266) 1,298 (5) Depreciation and amortization 156 82 23 — 261 Accretion of asset retirement obligations 25 6 — — 31 Provision for credit losses 72 11 4 — 87 Amortization of nuclear fuel 40 — — — 40 Amortization of financing costs and debt discount/premiums — — 20 — 20 Loss on debt extinguishment, net — — 47 — 47 Amortization of emission allowances and energy credits 21 7 — — 28 Amortization of unearned equity compensation — — 15 — 15 Net loss on sale of assets and disposal of assets (25) 2 3 — (20) Impairment losses 1 101 6 — 108 Changes in derivative instruments 10 (12) 38 — 36 Changes in deferred income taxes and liability for uncertain tax benefits — (1) (2) — (3) Changes in collateral deposits in support of energy risk management activities 136 (7) — — 129 Changes in nuclear decommissioning trust liability 27 — — — 27 Changes in other working capital (401) (123) (45) — (569) Cash provided/(used) by continuing operations 1,253 123 (487) — 889 Cash provided/(used) by discontinued operations 17 (9) — — 8 Net Cash Provided/(Used) by Operating Activities 1,270 114 (487) — 897 Cash Flows from Investing Activities Intercompany dividends — — 3,866 (3,866) — Payments for acquisitions of businesses (348) — — — (348) Capital expenditures (135) (23) (25) — (183) Decrease in notes receivable — — 2 — 2 Net purchases of emission allowances 14 — — — 14 Investments in nuclear decommissioning trust fund securities (295) — — — (295) Proceeds from the sale of nuclear decommissioning trust fund securities 271 — — — 271 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 1 400 892 — 1,293 Net distributions from investments in unconsolidated affiliates — (94) — (94) Contributions to discontinued operations — (44) — — (44) Cash (used)/provided by continuing operations (492) 239 4,735 (3,866) 616 Cash used by discontinued operations — (2) — — (2) Net Cash (Used)/Provided by Investing Activities (492) 237 4,735 (3,866) 614 Cash Flows from Financing Activities Intercompany dividends and transfers (824) (317) (2,725) 3,866 — Payment of dividends to common stockholders — — (24) — (24) Payments for share repurchase activity — — (1,322) — (1,322) Payments for debt extinguishment — — (24) — (24) Net distributions to noncontrolling interests from subsidiaries — (1) — — (1) Proceeds from issuance of common stock — — 3 — 3 Proceeds from issuance of long-term debt — — 1,833 — 1,833 Payment of debt issuance costs — — (34) — (34) Payments for long-term debt — (55) (2,432) — (2,487) Net proceeds of Revolving Credit Facility — — 215 — 215 Cash used by continuing operations (824) (373) (4,510) 3,866 (1,841) Cash provided by discontinued operations — 43 — — 43 Net Cash Used by Financing Activities (824) (330) (4,510) 3,866 (1,798) Change in cash from discontinued operations 17 32 — — 49 Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (63) (11) (262) — (336) 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 $ 32 $ 27 $ 218 $ — $ 277 (a) All significant intercompany transactions have been eliminated in consolidation |
Receivables Securitization and
Receivables Securitization and Repurchase Facility | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Receivables Securitization and Repurchase Facility | Receivables Securitization and Repurchase Facility Receivables Securitization On September 22, 2020, NRG Receivables LLC, a bankruptcy remote, special purpose, indirect wholly owned subsidiary, entered into the Receivables Facility for an amount up to $750 million, subject to adjustments on a seasonal basis, with issuers of asset-backed commercial paper and commercial banks (the "Lenders".) The assets of NRG Receivables LLC are first available to satisfy the claims of the Lenders before making payments on the subordinated note and equity issued by NRG Receivables LLC. The assets of NRG Receivables LLC are not available to the Company and its subsidiaries or creditors unless and until distributed by NRG Receivables LLC. Under the Receivables Facility, certain indirect subsidiaries of the Company sell their accounts receivables to NRG Receivables LLC, subject to certain terms and conditions. In turn, NRG Receivables LLC grants a security interest in the purchased receivables to the Lenders as collateral for cash borrowings and issuances of letters of credit. The accounts receivables remain on the Company's consolidated balance sheet and any amounts funded by the Lenders to NRG Receivables LLC will be reflected as short-term borrowings. Cash flows from the Receivables Facility are reflected as financing activities in the Company's consolidated statements of cash flows. The Company will continue to service the accounts receivables sold in exchange for a servicing fee. The Receivables Facility is scheduled to expire on September 21, 2021, unless renewed by the mutual consent of the parties in accordance with its terms. Borrowings by NRG Receivables LLC under the Receivables Facility bear interest as defined under the Receivables Financing Agreement. The weighted average interest rate related to usage under the Securitization Facility as of September 30, 2020 was 0.489%. As of September 30, 2020, there were no outstanding borrowings and there were $179 million in letters of credit issued under the Receivables Facility. Repurchase Facility On September 22, 2020, the Company entered into an uncommitted repurchase facility (“Repurchase Facility”) related to the Receivables Facility. Under the Repurchase Facility, the Company can borrow up to $75 million, collateralized by a subordinated note issued by NRG Receivables LLC to NRG Retail LLC in favor of the originating entities representing a portion of the balance of receivables sold to NRG Receivables LLC under the Receivables Facility. The Repurchase Facility is scheduled to expire on September 22, 2021, unless renewed by the mutual consent of the parties in accordance with its terms. The Repurchase Facility has no commitment fee and borrowings will be drawn at LIBOR + 1.25%. As of September 30, 2020, there were no outstanding borrowings under the Repurchase Facility. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Segment Reporting | Segments As part of perfecting the integrated model, in which the majority of the Company’s generation serves its retail customers, the Company began managing its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus in 2020. As a result, the Company changed its business segments from Retail and Generation to Texas, East and West/Other beginning in the first quarter of 2020. The Company's updated segment structure reflects how management currently makes financial decisions and allocates resources. The Company's businesses are segregated as follows: • Texas, which includes all activity related to customer, plant and market operations in Texas; • East, which includes the remaining activity related to customer operations and all activity related to plant and market operations in the East; • West/Other, which includes the following assets and activities: (i) all activity related to plant and market operations in the West, (ii) activity related to the Cottonwood power plant that was sold to Cleco on February 4, 2019 and is being leased back until 2025, (iii) the remaining renewables activity, including the Company’s equity method investments in Ivanpah Master Holdings, LLC and Agua Caliente, the remaining Home Solar assets and the NFL stadium solar generating assets, and (iv) activity related to the Company’s equity method investment for the Gladstone power plant in Australia; and • Corporate activities. All affected disclosures have been recast to reflect these changes for all periods presented. For further discussion of segment reporting, refer to Note 14, Segment Reporting . As part of perfecting the integrated model, in which the majority of the Company’s generation serves its retail customers, the Company began managing its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus in 2020. As a result, the Company changed its business segments from Retail and Generation to Texas, East and West/Other beginning in the first quarter of 2020, as further described in Note 1, Nature of Business . The Company's updated segment structure reflects how management currently makes financial decisions and allocates resources The financial information for the three and nine months ended September 30, 2019 was recast to reflect the current segment structure. In February 2019, as described in Note 4, Acquisitions, Discontinued Operations and Dispositions , the Company completed the sales of the South Central Portfolio and Carlsbad. The financial information for the three and nine months ended September 30, 2019 presented below reflects the presentation of these entities as discontinued operations within the corporate segment. |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for comparative purposes. |
Credit Losses | Credit Losses On January 1, 2020, the Company adopted ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , or ASU No. 2016-13, using the modified retrospective approach. Following the adoption of the new standard, the Company’s process of estimating expected credit losses remains materially consistent with its historical practice. Information prior to January 1, 2020, which was previously referred to as the allowance and provision for bad debt, has not been restated and continues to be reported under the accounting standards in effect for that period. Retail trade receivables are reported on the balance sheet net of the allowance for credit losses. The Company accrues an allowance for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. |
Restricted Cash | Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties. Some amounts are segregated into separate accounts that are not contractually restricted but, based on the Company's intention, are not available for the payment of general corporate obligations. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the hedge counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held within the Company's projects that are restricted for specific uses. |
Pension Plan Contributions | Pension Plan Contributions In the Company's 2019 Form 10-K, NRG had anticipated making contributions of $56 million to its pension plans in 2020. Cash contributions of $12 million were made during the nine months ended September 30, 2020 and the remaining planned contributions for 2020 were satisfied by available pre-funded pension balances (previous contributions in excess of required pension contributions). No additional contributions are planned in the fourth quarter of 2020. |
Recent Accounting Developments | Recent Accounting Developments - Guidance Adopted in 2020 ASU 2018-17 — In October 2018, the FASB issued ASU No. 2018-17, Consolidations (Topic 810): Targeted Improvements to Related Party Guidance for Variable Interest Entities , or ASU No. 2018-17, in response to stakeholders’ observations that Topic 810, Consolidations , could be improved thereby improving general purpose financial reporting. Specifically, ASU No. 2018-17 requires application of the variable interest entity (VIE) guidance to private companies under common control and consideration of indirect interest held through related parties under common control for determining whether fees paid to decision makers and service providers are variable interests. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. All entities are required to apply the amendments retrospectively. The adoption did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2018-15 — In August 2018, the FASB issued ASU No. 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in Cloud Computing Arrangement That Is a Service Contract , or ASU No. 2018-15. The amendments in ASU No. 2018-15 align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing costs incurred to develop or obtain internal-use software (and hosting arrangement that include an internal-use software license). The amendment also requires the customer to amortize the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The Company adopted the amendments effective January 1, 2020 using the prospective approach. The adoption did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2018-13 — In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirement for Fair value Measurement) , or ASU No. 2018-13. The amendments in ASU No. 2018-13 eliminate such disclosures as the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy and add new disclosure requirements for Level 3 measurements. ASU No. 2018-13 is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain disclosures in ASU No. 2018-13 are required to be applied on a retrospective basis and others on a prospective basis. The Company adopted the amendments effective January 1, 2020. As the amendments contemplates changes in disclosures only, it did not have an impact on the Company's results of operations, cash flows, or statement of financial position. ASU 2016-13 — In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Statements, or ASU No. 2016-13, which was further amended through various updates issued by the FASB thereafter. The guidance in ASU No. 2016-13 provides a new model for recognizing credit losses on financial assets carried at amortized cost using an estimate of expected credit losses, instead of the "incurred loss" methodology previously required for recognizing credit losses that delayed recognition until it was probable that a loss was incurred. The estimate of expected credit losses is to be based on consideration of past events, current conditions and reasonable and supportable forecasts of future conditions. The Company adopted the standard and its subsequent corresponding updates effective January 1, 2020 using the modified retrospective approach. Results for the reporting periods after January 1, 2020 are presented under Topic 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company's adoption of Topic 326 did not have a material impact on the Company's results of operations, cash flows, or statement of financial position. Recent Accounting Developments - Guidance Not Yet Adopted ASU 2020-06 — In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) , or ASU No. 2020-06. The guidance in ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. In addition, ASU 2020-06 improves and amends the related earnings per share guidance. This standard is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is permitted in fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently in the process of assessing the impact of this guidance on the consolidated financial statements and disclosures related to earnings per share. ASU 2019-12 — In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, |
Nuclear Decommissioning | NRG's Nuclear Decommissioning Trust Fund assets, which are for the decommissioning of its 44% interest in STP, are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Other Balance Sheet Information | The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in intangible assets, net: (In millions) September 30, 2020 December 31, 2019 Property, plant and equipment accumulated depreciation $ 1,901 $ 1,752 Intangible assets accumulated amortization 1,314 1,262 |
Activity in Allowance for Credit Losses | The following table represents the activity in the allowance for credit losses for the three and nine months ended September 30, 2020: (In millions) Three months ended September 30, 2020 Nine months ended September 30, 2020 Beginning balance $ 47 $ 43 Provision for credit losses 26 74 Write-offs (19) (71) Recoveries collected 3 11 Ending balance $ 57 $ 57 |
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties | The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) September 30, 2020 December 31, 2019 Cash and cash equivalents $ 697 $ 345 Funds deposited by counterparties 15 32 Restricted cash 6 8 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 718 $ 385 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customer | Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, 2020 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 1,633 $ 354 $ — $ — $ 1,987 Business Solutions 288 27 — — 315 Total retail revenue 1,921 381 — — 2,302 Energy revenue (a) 11 93 117 1 222 Capacity revenue (a) — 158 16 — 174 Mark-to-market for economic hedging activities (b) 1 43 (10) 5 39 Other revenue (a) 59 18 (1) (4) 72 Total operating revenue 1,992 693 122 2 2,809 Less: Lease revenue — — 5 — 5 Less: Realized and unrealized ASC 815 revenue 10 115 (10) 5 120 Total revenue from contracts with customers $ 1,982 $ 578 $ 127 $ (3) $ 2,684 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ — $ 23 $ 13 $ (1) $ 35 Capacity revenue — 49 — — 49 Other revenue 9 — (13) 1 (3) (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended September 30, 2019 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 1,735 $ 337 $ — $ — $ 2,072 Business Solutions 397 19 — — 416 Total retail revenue 2,132 356 — — 2,488 Energy revenue (a) 211 109 107 (1) 426 Capacity revenue (a) — 185 9 — 194 Mark-to-market for economic hedging activities (b) (213) 12 (9) — (210) Other revenue (a) 78 17 4 (1) 98 Total operating revenue 2,208 679 111 (2) 2,996 Less: Lease revenue — — 5 — 5 Less: Realized and unrealized ASC 815 revenue 420 69 — (2) 487 Total revenue from contracts with customers $ 1,788 $ 610 $ 106 $ — $ 2,504 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ 613 $ 20 $ 21 $ (2) $ 652 Capacity revenue — 34 — — 34 Other revenue 20 3 (12) — 11 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2020 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 3,938 $ 992 $ — $ (1) $ 4,929 Business Solutions 796 70 — — 866 Total retail revenue 4,734 1,062 — (1) 5,795 Energy revenue (a) 21 157 252 (1) 429 Capacity revenue (a) — 471 47 — 518 Mark-to-market for economic hedging activities (b) 1 63 6 8 78 Other revenue (a) 172 45 36 (7) 246 Total operating revenue 4,928 1,798 341 (1) 7,066 Less: Lease revenue — 1 14 — 15 Less: Realized and unrealized ASC 815 revenue 24 239 50 5 318 Total revenue from contracts with customers $ 4,904 $ 1,558 $ 277 $ (6) $ 6,733 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ — $ 60 $ 42 $ (3) $ 99 Capacity revenue — 114 — — 114 Other revenue 23 2 2 — 27 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2019 (In millions) Texas East West/Other Corporate/Eliminations Total Retail revenue: Mass Market $ 3,891 $ 892 $ — $ (3) $ 4,780 Business Solutions 927 55 — — 982 Total retail revenue 4,818 947 — (3) 5,762 Energy revenue (a) 452 283 217 — 952 Capacity revenue (a) — 524 27 — 551 Mark-to-market for economic hedging activities (b) 28 13 11 (1) 51 Other revenue (a) 213 45 55 (3) 310 Total operating revenue 5,511 1,812 310 (7) 7,626 Less: Lease revenue — 1 14 — 15 Less: Realized and unrealized ASC 815 revenue 1,314 187 46 (2) 1,545 Total revenue from contracts with customers $ 4,197 $ 1,624 $ 250 $ (5) $ 6,066 (a) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Other Corporate/Eliminations Total Energy revenue $ 1,239 $ 87 $ 28 $ (2) $ 1,352 Capacity revenue — 81 — 1 82 Other revenue 47 6 7 — 60 (b) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 |
Contract Asset and Liabilities | The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of September 30, 2020 and December 31, 2019: (In millions) September 30, 2020 December 31, 2019 Deferred customer acquisition costs $ 122 $ 133 Accounts receivable, net - Contracts with customers 1,084 1,002 Accounts receivable, net - Derivative instruments 37 18 Accounts receivable, net - Affiliate 5 5 Total accounts receivable, net $ 1,126 $ 1,025 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 411 $ 402 Deferred revenues (a) 60 82 (a) Deferred revenues from contracts with customers for the three months ended September 30, 2020 and the year ended December 31, 2019 were approximately $31 million and $24 million, respectively |
Acquisitions, Discontinued Op_2
Acquisitions, Discontinued Operations and Dispositions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The purchase price was allocated as follows: (In millions) Account receivable $ 98 Accounts payable (73) Other net current and non-current working capital 5 Marketing partnership 154 Customer relationships 85 Trade name 28 Other intangible assets 26 Goodwill (a) 6 Stream Purchase Price $ 329 (a) Goodwill arising from the acquisition is attributed to the value of the platform acquired and the synergies expected from combining the operations of Stream Energy with NRG's existing businesses. Goodwill of $5 million and $1 million was assigned to the Texas and East segments, respectively, and is not deductible for tax purposes |
Summary of Results of Discontinued Operations | Summarized results of the South Central Portfolio discontinued operations were as follows: Three months ended Nine months ended (In millions) September 30, 2019 September 30, 2019 Operating revenues $ — $ 31 Operating costs and expenses — (23) Gain from operations of discontinued components — 8 (Loss)/Gain on disposal of discontinued operations, net of tax (1) 27 (Loss)/Gain from discontinued operations, including disposal, net of tax $ (1) $ 35 Summarized results of Carlsbad discontinued operations were as follows: Three months ended Nine months ended (In millions) September 30, 2019 September 30, 2019 Operating revenues $ — $ 19 Operating costs and expenses — (9) Other expenses — (5) Gain from discontinued operations, net of tax — 5 (Loss)/gain on disposal of discontinued operations, net of tax (1) 330 Other Commitments, Indemnification and Fees — 27 (Loss)/gain on disposal of discontinued operations, net of tax (1) 357 (Loss)/gain from discontinued operations, including disposal, net of tax $ (1) $ 362 Summarized results of GenOn discontinued operations were as follows: Nine months ended (In millions) September 30, 2019 Gain from discontinued operations, net of tax $ 2 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value | The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows: September 30, 2020 December 31, 2019 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Assets: Notes receivable $ 10 $ 7 $ 11 $ 8 Liabilities: Long-term debt, including current portion (a) 5,854 6,309 5,956 6,504 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets |
Fair value hierarchy for long-term debt | The following table presents the level within the fair value hierarchy for long-term debt, including current portion, as of September 30, 2020 and December 31, 2019: September 30, 2020 December 31, 2019 (In millions) Level 2 Level 3 Level 2 Level 3 Long-term debt, including current portion $ 6,305 $ 4 $ 6,388 $ 116 |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: September 30, 2020 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 15 $ — $ 15 $ — Nuclear trust fund investments: Cash and cash equivalents 25 25 — — U.S. government and federal agency obligations 49 48 1 — Federal agency mortgage-backed securities 92 — 92 — Commercial mortgage-backed securities 38 — 38 — Corporate debt securities 144 — 144 — Equity securities 402 402 — — Foreign government fixed income securities 6 — 6 — Other trust fund investments: U.S. government and federal agency obligations 1 1 — — Derivative assets: Commodity contracts 893 74 592 227 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 72 Equity securities 7 Total assets $ 1,744 $ 550 $ 888 $ 227 Derivative liabilities: Commodity contracts $ 813 $ 70 $ 568 $ 175 Total liabilities $ 813 $ 70 $ 568 $ 175 December 31, 2019 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 20 $ — $ 20 $ — Nuclear trust fund investments: Cash and cash equivalents 17 17 — — U.S. government and federal agency obligations 68 68 — — Federal agency mortgage-backed securities 100 — 100 — Commercial mortgage-backed securities 29 — 29 — Corporate debt securities 109 — 109 — Equity securities 388 388 — — Foreign government fixed income securities 5 — 5 — Other trust fund investments: U.S. government and federal agency obligations 1 1 — — Derivative assets: Commodity contracts 1,170 84 893 193 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 78 Equity securities 8 Total assets $ 1,993 $ 558 $ 1,156 $ 193 Derivative liabilities: Commodity contracts $ 1,103 $ 143 $ 805 $ 155 Total liabilities $ 1,103 $ 143 $ 805 $ 155 |
Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following tables reconcile, for the three and nine months ended September 30, 2020 and 2019, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2020 Nine months ended September 30, 2020 (In millions) Derivatives (a) Derivatives (a) Beginning balance $ 152 $ 38 Total (losses) realized/unrealized— included in earnings (92) (18) Purchases (10) 6 Transfers into Level 3 (b) (11) 22 Transfers out of Level 3 (b) 13 4 Ending balance $ 52 $ 52 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 period end $ 23 $ 50 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, 2019 Nine months ended September 30, 2019 (In millions) Debt Securities Derivatives (a) Total Debt Securities Derivatives (a) Total Beginning balance $ 19 $ 97 $ 116 $ 19 $ 20 $ 39 Contracts added from acquisitions — (2) (2) — (3) (3) Total (losses)/gains realized/unrealized: Included in earnings — (18) (18) 1 (45) (44) Included in OCI (14) — (14) (14) — (14) Cash received — — — (1) — (1) Purchases — 38 38 — 26 26 Transfers into Level 3 (b) — (126) (126) — 4 4 Transfers out of Level 3 (b) — 24 24 — 11 11 Ending balance $ 5 $ 13 $ 18 $ 5 $ 13 $ 18 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 period end — 44 44 1 13 14 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 |
Significant unobservable inputs used developing fair values, Quantitative Information | The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of September 30, 2020 and December 31, 2019: September 30, 2020 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Power Contracts $ 196 $ 167 Discounted Cash Flow Forward Market Price (per MWh) $ 10 $ 116 $ 24 FTRs 31 8 Discounted Cash Flow Auction Prices (per MWh) (50) 43 0 $ 227 $ 175 December 31, 2019 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Power Contracts $ 151 $ 139 Discounted Cash Flow Forward Market Price (per MWh) $ 8 $ 218 $ 24 FTRs 42 16 Discounted Cash Flow Auction Prices (per MWh) (105) 213 0 $ 193 $ 155 |
Fair value inputs, sensitivity analysis | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2020 and December 31, 2019: 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 counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a)(b) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 88 % Financial institutions 12 Total as of September 30, 2020 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 59 % Non-investment grade/non-rated 41 Total as of September 30, 2020 100 % (a) Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices (b) The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long-term contracts |
Nuclear Decommissioning Trust_2
Nuclear Decommissioning Trust Fund (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Regulated Operations [Abstract] | |
Summary of aggregate fair values and unrealized gains and losses for the securities held in the trust fund | The following table summarizes the aggregate fair values and unrealized gains and losses for the securities held in the trust funds, as well as information about the contractual maturities of those securities. As of September 30, 2020 As of December 31, 2019 (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 $ — $ — — $ 17 $ — $ — — U.S. government and federal agency obligations 49 7 — 12 68 4 — 11 Federal agency mortgage-backed securities 92 4 — 24 100 3 — 24 Commercial mortgage-backed securities 38 2 — 28 29 1 1 24 Corporate debt securities 144 12 — 12 109 6 — 11 Equity securities 474 321 1 — 466 324 — — Foreign government fixed income securities 6 1 — 10 5 — — 10 Total $ 828 $ 347 $ 1 $ 794 $ 338 $ 1 |
Summary of proceeds from sales of available-for-sale securities and the related realized gains and losses | The following table summarizes proceeds from sales of available-for-sale securities held in the trust funds and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method. Nine months ended September 30, (In millions) 2020 2019 Realized gains $ 22 $ 8 Realized losses (11) (7) Proceeds from sale of securities 318 271 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Net notional volume buy/(sell) of NRG's open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of September 30, 2020 and December 31, 2019. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. Total Volume (In millions) Category Units September 30, 2020 December 31, 2019 Emissions Short Ton 1 3 Renewable Energy Certificates Certificates 3 1 Coal Short Ton 4 10 Natural Gas MMBtu (264) (181) Power MWh 51 38 Capacity MW/Day (1) (1) |
Fair value within the derivative instrument valuation on the balance sheets | The following table summarizes the fair value within the derivative instrument valuation on the balance sheets: Fair Value Derivative Assets Derivative Liabilities (In millions) September 30, 2020 December 31, 2019 September 30, 2020 December 31, 2019 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Commodity contracts current $ 578 $ 860 $ 495 $ 781 Commodity contracts long-term 315 310 318 322 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 893 $ 1,170 $ 813 $ 1,103 |
Offsetting of derivatives by counterparty assets | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of September 30, 2020 Commodity contracts: Derivative assets $ 893 $ (738) $ (1) $ 154 Derivative liabilities (813) 738 — (75) Total commodity contracts $ 80 $ — $ (1) $ 79 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of December 31, 2019 Commodity contracts: Derivative assets $ 1,170 $ (909) $ (7) $ 254 Derivative liabilities (1,103) 909 73 (121) Total commodity contracts $ 67 $ — $ 66 $ 133 |
Offsetting of derivatives by counterparty, liabilities | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid: Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of September 30, 2020 Commodity contracts: Derivative assets $ 893 $ (738) $ (1) $ 154 Derivative liabilities (813) 738 — (75) Total commodity contracts $ 80 $ — $ (1) $ 79 Gross Amounts Not Offset in the Statement of Financial Position (In millions) Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount As of December 31, 2019 Commodity contracts: Derivative assets $ 1,170 $ (909) $ (7) $ 254 Derivative liabilities (1,103) 909 73 (121) Total commodity contracts $ 67 $ — $ 66 $ 133 |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations | The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's statement of operations. The effect of commodity hedges is included within operating revenues and cost of operations and the effect of interest rate hedges is included in interest expense. (In millions) Three months ended September 30, Nine months ended September 30, Unrealized mark-to-market results 2020 2019 2020 2019 Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges $ (101) $ (118) $ (62) $ (88) Reversal of acquired (gain)/loss positions related to economic hedges (2) (3) 2 (4) Net unrealized (losses)/gains on open positions related to economic hedges (15) 57 73 69 Total unrealized mark-to-market (losses)/gains for economic hedging activities (118) (64) 13 (23) Reversal of previously recognized unrealized (gains) on settled positions related to trading activity (7) (1) (14) (8) Net unrealized gains/(losses) on open positions related to trading activity 2 (3) 19 23 Total unrealized mark-to-market (losses)/gains for trading activity (5) (4) 5 15 Total unrealized (losses)/gains $ (123) $ (68) $ 18 $ (8) Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Unrealized gains/(losses) included in operating revenues $ 34 $ (214) $ 83 $ 66 Unrealized (losses)/gains included in cost of operations (157) 146 (65) (74) Total impact to statement of operations — energy commodities $ (123) $ (68) $ 18 $ (8) Total impact to statement of operations — interest rate contracts $ — $ — $ — $ (38) |
Long-term Debt (Tables)
Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consisted of the following: (In millions, except rates) September 30, 2020 December 31, 2019 Interest rate % Recourse debt: 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 733 733 5.250 Convertible Senior Notes, due 2048 (a) 575 575 2.750 Senior Secured First Lien Notes, due 2024 600 600 3.750 Senior Secured First Lien Notes, due 2029 500 500 4.450 Revolving Credit Facility — 83 L + 1.750 Tax-exempt bonds 466 466 1.30 - 6.00 Subtotal recourse debt 5,925 6,008 Non-recourse debt: Other 4 34 various Subtotal all non-recourse debt 4 34 Subtotal long-term debt (including current maturities) 5,929 6,042 Less current maturities (3) (88) Less debt issuance costs (59) (65) Discounts (75) (86) Total long-term debt $ 5,792 $ 5,803 (a) As of the ex-dividend date of October 30, 2020, the Convertible Notes were convertible at a price of $46.24, which is equivalent to a conversion rate of approximately 21.62 shares of common stock per $1,000 principal amount |
Investments Accounted for Usi_2
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Variable Interest Entities Disclosure [Abstract] | |
Financial Information for Consolidated VIEs | The summarized financial information for the Company's consolidated VIEs consisted of the following: (In millions) September 30, 2020 December 31, 2019 Accounts receivable $ 887 $ — Other current assets 4 3 Net property, plant and equipment — 71 Other long-term assets 25 27 Total assets 916 101 Current liabilities 5 4 Long-term debt — 24 Other long-term liabilities 27 8 Total liabilities 32 36 Redeemable noncontrolling interest — 20 Net assets less noncontrolling interest $ 884 $ 45 |
Changes in Capital Structure (T
Changes in Capital Structure (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Changes in NRG's common shares issued and outstanding | As of September 30, 2020 and December 31, 2019, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2019 421,890,790 (172,894,601) 248,996,189 Shares issued under LTIPs 1,150,559 — 1,150,559 Shares issued under ESPP — 63,455 63,455 Shares repurchased — (6,062,783) (6,062,783) Balance as of September 30, 2020 423,041,349 (178,893,929) 244,147,420 Shares issued under LTIPs 5,400 — 5,400 Shares issued under ESPP — 68,014 68,014 Balance as of November 5, 2020 423,046,749 (178,825,915) 244,220,834 |
Shares Repurchased | The following repurchases have been made during the nine months ended September 30, 2020: Total number of shares purchased Average price paid per share Amounts paid for shares purchased (in millions) 2020 repurchases: Repurchases 6,062,783 $ 197 Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances (a) 711,248 27 Total Share Repurchases during the nine months ended September 30, 2020 6,774,031 $33.05 $ 224 (a) NRG elected to pay cash for tax withholding on equity awards instead of issuing actual shares to management. The average price per equivalent shares withheld was $38.23 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of NRG's basic and diluted earnings per share | The reconciliation of NRG's basic and diluted income per share is shown in the following table: Three months ended September 30, Nine months ended September 30, (In millions, except per share data) 2020 2019 2020 2019 Basic income per share: Net income available to common shareholders $ 249 $ 372 $ 683 $ 1,055 Weighted average number of common shares outstanding - basic 244 254 246 266 Income per weighted average common share — basic $ 1.02 $ 1.46 $ 2.78 $ 3.97 Diluted income per share: Net income available to common shareholders $ 249 $ 372 $ 683 $ 1,055 Weighted average number of common shares outstanding - basic 244 254 246 266 Incremental shares attributable to the issuance of equity compensation (treasury stock method) 1 2 1 2 Weighted average number of common shares outstanding - dilutive 245 256 247 268 Income per weighted average common share — diluted $ 1.02 $ 1.45 $ 2.77 $ 3.94 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information, by segment | Three months ended September 30, 2020 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 1,992 $ 693 $ 122 $ — $ 2 $ 2,809 Depreciation and amortization 49 34 9 7 — 99 Impairment losses — — 29 — — 29 Equity in earnings of unconsolidated affiliates — — 36 — — 36 Income/(loss) from continuing operations before income taxes 288 149 17 (113) — 341 Income/(loss) from continuing operations 288 149 17 (205) — 249 Net income/(loss) attributable to NRG Energy, Inc $ 288 $ 149 $ 17 $ (205) $ — $ 249 Three months ended September 30, 2019 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 2,208 $ 679 $ 111 $ — $ (2) $ 2,996 Depreciation and amortization 45 31 8 7 — 91 Equity in earnings of unconsolidated affiliates 1 — 28 — — 29 Income/(loss) from continuing operations before income taxes 348 121 16 (106) 1 380 Income/(loss) from continuing operations 348 121 15 (111) 1 374 Loss from discontinued operations, net of tax — — — (2) — (2) Net income/(loss) 348 121 15 (113) 1 372 Net income/(loss) attributable to NRG Energy, Inc. $ 348 $ 121 $ 15 $ (113) $ 1 $ 372 Nine months ended September 30, 2020 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 4,928 $ 1,798 $ 341 $ — $ (1) $ 7,066 Depreciation and amortization 167 100 25 26 — 318 Impairment losses — — 29 — — 29 Gain on sale of assets — — 1 5 — 6 Equity in (losses)/earnings of unconsolidated affiliates (3) — 40 — — 37 Income/(loss) from continuing operations before income taxes 800 319 84 (304) — 899 Income/(loss) from continuing operations 800 319 83 (519) — 683 Net income/(loss) attributable to NRG Energy, Inc $ 800 $ 319 $ 83 $ (519) $ — $ 683 Nine months ended September 30, 2019 (In millions) Texas East West/Other Corporate Eliminations Total Operating revenues $ 5,511 $ 1,812 $ 310 $ — $ (7) $ 7,626 Depreciation and amortization 125 87 26 23 — 261 Reorganization costs 5 — — 11 — 16 Gain on sale of assets — 1 — 1 — 2 Equity in (losses)/earnings of unconsolidated affiliates (5) — 13 — — 8 Loss on debt extinguishment, net — — — (47) — (47) Income/(loss) from continuing operations before income taxes 757 280 11 (382) — 666 Income/(loss) from continuing operations 757 280 10 (390) — 657 Income from discontinued operations, net of tax — — — 399 — 399 Net income 757 280 10 9 — 1,056 Net income attributable to NRG Energy, Inc. $ 757 $ 280 $ 9 $ 9 $ — $ 1,055 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions, except rates) 2020 2019 2020 2019 Income from continuing operations before income taxes $ 341 $ 380 $ 899 $ 666 Income tax expense from continuing operations 92 6 216 9 Effective income tax rate 27.0 % 1.6 % 24.0 % 1.4 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Summary of NRG's Material Related Party Transactions | The following table summarizes NRG's material related party transactions with third party affiliates: Three months ended September 30, Nine months ended September 30, (In millions) 2020 2019 2020 2019 Revenues from Related Parties Included in Operating Revenues Gladstone $ 1 $ 2 $ 2 $ 3 Ivanpah (a) 11 7 34 25 Midway-Sunset 1 2 4 4 Total $ 13 $ 11 $ 40 $ 32 (a) Also includes fees under project management agreements with each project company |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Condensed Consolidating Financial Information Disclosure [Abstract] | |
Schedule of Guarantor Subsidiaries | Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes, Convertible Senior Notes and Senior Secured Notes as of September 30, 2020: Ace Energy, Inc. NRG Distributed Energy Resources Holdings LLC Reliant Energy Retail Services, LLC Allied Home Warranty GP LLC NRG Distributed Generation PR LLC RERH Holdings, LLC Allied Warranty LLC NRG Dunkirk Operations Inc. Saguaro Power LLC Arthur Kill Power LLC NRG ECOKAP Holdings LLC SGE Energy Sourcing, LLC Astoria Gas Turbine Power LLC NRG El Segundo Operations Inc. SGE Texas Holdco, LLC BidURenergy, Inc. NRG Energy Labor Services LLC Somerset Operations Inc. Cabrillo Power I LLC NRG Energy Services Group LLC Somerset Power LLC Cabrillo Power II LLC NRG Energy Services LLC Stream Energy Columbia, LLC Carbon Management Solutions LLC NRG Generation Holdings Inc. Stream Energy Delaware, LLC Cirro Energy Services, Inc. NRG Greenco LLC Stream Energy Illinois, LLC Cirro Group, Inc. NRG Home & Business Solutions LLC Stream Energy Maryland, LLC Connecticut Jet Power LLC NRG Home Services LLC Stream Energy New Jersey, LLC Devon Power LLC NRG Home Solutions LLC Stream Energy New York, LLC Dunkirk Power LLC NRG Home Solutions Product LLC Stream Energy Pennsylvania, LLC Eastern Sierra Energy Company LLC NRG Homer City Services LLC Stream Georgia Gas SPE, LLC El Segundo Power II LLC NRG HQ DG LLC Stream Ohio Gas & Electric, LLC El Segundo Power, LLC NRG Huntley Operations Inc. Stream SPE GP, LLC Energy Alternatives Wholesale, LLC NRG Identity Protect LLC Stream SPE, Ltd. Energy Choice Solutions LLC NRG Ilion Limited Partnership Texas Genco GP, LLC Energy Plus Holdings LLC NRG Ilion LP LLC Texas Genco Holdings, Inc. Energy Plus Natural Gas LLC NRG International LLC Texas Genco LP, LLC Energy Protection Insurance Company NRG Maintenance Services LLC Texas Genco Services, LP Everything Energy LLC NRG Mextrans Inc. US Retailers LLC Forward Home Security, LLC NRG Middletown Operations Inc. Vienna Operations Inc. GCP Funding Company, LLC NRG Montville Operations Inc. Vienna Power LLC Green Mountain Energy Company NRG North Central Operations Inc. WCP (Generation) Holdings LLC Gregory Partners, LLC NRG Norwalk Harbor Operations Inc. West Coast Power LLC Gregory Power Partners LLC NRG Operating Services, Inc. XOOM Alberta Holdings, LLC Huntley Power LLC NRG Oswego Harbor Power Operations Inc. XOOM British Columbia Holdings, LLC Independence Energy Alliance LLC NRG Portable Power LLC XOOM Energy California, LLC Independence Energy Group LLC NRG Power Marketing LLC XOOM Energy Connecticut, LLC Independence Energy Natural Gas LLC NRG Reliability Solutions LLC XOOM Energy Delaware, LLC Indian River Operations Inc. NRG Renter's Protection LLC XOOM Energy Georgia, LLC Indian River Power LLC NRG Retail LLC XOOM Energy Global Holdings, LLC Meriden Gas Turbines LLC NRG Retail Northeast LLC XOOM Energy Illinois LLC Middletown Power LLC NRG Rockford Acquisition LLC XOOM Energy Indiana, LLC Montville Power LLC NRG Saguaro Operations Inc. XOOM Energy Kentucky, LLC NEO Corporation NRG Security LLC XOOM Energy Maine, LLC New Genco GP, LLC NRG Services Corporation XOOM Energy Maryland, LLC Norwalk Power LLC NRG SimplySmart Solutions LLC XOOM Energy Massachusetts, LLC NRG Advisory Services LLC NRG South Central Operations Inc. XOOM Energy Michigan, LLC NRG Affiliate Services Inc. NRG South Texas LP XOOM Energy New Hampshire, LLC NRG Arthur Kill Operations Inc. NRG Texas Gregory LLC XOOM Energy New Jersey, LLC NRG Astoria Gas Turbine Operations Inc. NRG Texas Holding Inc. XOOM Energy New York, LLC NRG Business Services LLC NRG Texas LLC XOOM Energy Ohio, LLC NRG Cabrillo Power Operations Inc. NRG Texas Power LLC XOOM Energy Pennsylvania, LLC NRG California Peaker Operations LLC NRG Warranty Services LLC XOOM Energy Rhode Island, LLC NRG Cedar Bayou Development Company, LLC NRG West Coast LLC XOOM Energy Texas, LLC NRG Connected Home LLC NRG Western Affiliate Services Inc. XOOM Energy Virginia, LLC NRG Construction LLC Oswego Harbor Power LLC XOOM Energy Washington D.C., LLC NRG Curtailment Solutions, Inc. Reliant Energy Northeast LLC XOOM Energy, LLC NRG Development Company Inc. Reliant Energy Power Supply, LLC XOOM Ontario Holdings, LLC NRG Devon Operations Inc. Reliant Energy Retail Holdings, LLC XOOM Solar, LLC NRG Dispatch Services LLC |
CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 2,513 $ 297 $ — $ (1) $ 2,809 Operating Costs and Expenses Cost of operations 1,796 230 9 (1) 2,034 Depreciation and amortization 72 21 6 — 99 Impairment losses — 29 — — 29 Selling, general and administrative costs 154 7 92 — 253 Development costs — (1) 2 — 1 Total operating costs and expenses 2,022 286 109 (1) 2,416 Operating Income/(Loss) 491 11 (109) — 393 Other Income/(Expense) Equity in earnings of consolidated subsidiaries — — 540 (540) — Equity in earnings of unconsolidated affiliates — 36 — — 36 Other income, net 4 2 5 — 11 Interest expense (3) — (96) — (99) Total other income/(expense) 1 38 449 (540) (52) Income from Continuing Operations Before Income Taxes 492 49 340 (540) 341 Income tax expense — 1 91 — 92 Net Income $ 492 $ 48 $ 249 $ (540) $ 249 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 6,346 $ 730 $ — $ (10) $ 7,066 Operating Costs and Expenses Cost of operations 4,357 586 (8) (10) 4,925 Depreciation and amortization 232 60 26 — 318 Impairment losses — 29 — — 29 Selling, general and administrative costs 431 19 220 — 670 Reorganization costs — — 3 — 3 Development costs — — 6 — 6 Total operating costs and expenses 5,020 694 247 (10) 5,951 Gain on sale of assets — 1 5 — 6 Operating Income/(Loss) 1,326 37 (242) — 1,121 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 6 — 1,385 (1,391) — Equity in earnings of unconsolidated affiliates — 37 — — 37 Impairment losses on investments — (18) — — (18) Other income, net 14 6 32 — 52 Loss on debt extinguishment, net — — (1) — (1) Interest expense (12) (3) (277) — (292) Total other income/(expense) 8 22 1,139 (1,391) (222) Income from Continuing Operations Before Income Taxes 1,334 59 897 (1,391) 899 Income tax expense — 2 214 — 216 Net Income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the three months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 2,473 $ 525 $ — $ (2) $ 2,996 Operating Costs and Expenses Cost of operations 1,728 421 6 (2) 2,153 Depreciation and amortization 52 32 7 — 91 Selling, general and administrative costs 132 28 50 — 210 Reorganization costs — — 1 — 1 Development costs — — 1 — 1 Total operating costs and expenses 1,912 481 65 (2) 2,456 Operating Income/(Loss) 561 44 (65) — 540 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 20 — 537 (557) — Equity in earnings of unconsolidated affiliates — 29 — — 29 Impairment losses on investments — (101) (6) — (107) Other income, net 11 1 5 — 17 Interest expense (4) (3) (92) — (99) Total other income/(expense) 27 (74) 444 (557) (160) Income/(Loss) from Continuing Operations Before Income Taxes 588 (30) 379 (557) 380 Income tax expense — 1 5 — 6 Income/(Loss) from Continuing Operations 588 (31) 374 (557) 374 Loss from discontinued operations, net of income tax — — (2) — (2) Net Income Attributable to NRG Energy, Inc. $ 588 $ (31) $ 372 $ (557) $ 372 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF OPERATIONS For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Operating Revenues Total operating revenues $ 6,382 $ 1,252 $ — $ (8) $ 7,626 Operating Costs and Expenses Cost of operations 4,676 956 25 (8) 5,649 Depreciation and amortization 157 81 23 — 261 Impairment losses 1 — — — 1 Selling, general and administrative costs 366 56 193 — 615 Reorganization costs — — 16 — 16 Development costs — 1 4 — 5 Total operating costs and expenses 5,200 1,094 261 (8) 6,547 Gain on sale of assets 1 1 — — 2 Operating Income/(Loss) 1,183 159 (261) — 1,081 Other Income/(Expense) Equity in earnings of consolidated subsidiaries 32 — 1,266 (1,298) — Equity in earnings of unconsolidated affiliates — 8 — — 8 Impairment losses on investments — (101) (6) — (107) Other income, net 19 10 20 — 49 Loss on debt extinguishment, net — — (47) — (47) Interest expense (11) (12) (295) — (318) Total other income/(expense) 40 (95) 938 (1,298) (415) Income from Continuing Operations Before Income Taxes 1,223 64 677 (1,298) 666 Income tax expense — 2 7 — 9 Income from Continuing Operations 1,223 62 670 (1,298) 657 Income from discontinued operations, net of income tax 9 5 385 — 399 Net Income 1,232 67 1,055 (1,298) 1,056 Less: Net income attributable to noncontrolling interest and redeemable noncontrolling interest — 1 — — 1 Net Income Attributable to NRG Energy, Inc. $ 1,232 $ 66 $ 1,055 $ (1,298) $ 1,055 (a) All significant intercompany transactions have been eliminated in consolidation |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME /(LOSS) | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) For the three months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 492 $ 48 $ 249 $ (540) $ 249 Other Comprehensive Income Foreign currency translation adjustments, net 5 3 4 (8) 4 Defined benefit plans, net 2 — — (2) — Other comprehensive income 7 3 4 (10) 4 Comprehensive Income $ 499 $ 51 $ 253 $ (550) $ 253 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 Other Comprehensive Income Foreign currency translation adjustments, net 2 1 2 (3) 2 Defined benefit plans, net 5 — — (5) — Other comprehensive income 7 1 2 (8) 2 Comprehensive Income $ 1,341 $ 58 $ 685 $ (1,399) $ 685 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the three months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income/(Loss) $ 588 $ (31) $ 372 $ (557) $ 372 Other Comprehensive Loss Foreign currency translation adjustments, net (5) (4) (4) 9 (4) Available-for-sale securities, net — — (14) — (14) Defined benefit plans, net (40) — (41) 40 (41) Other comprehensive loss (45) (4) (59) 49 (59) Comprehensive Income/(Loss) $ 543 $ (35) $ 313 $ (508) $ 313 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Net Income $ 1,232 $ 67 $ 1,055 $ (1,298) $ 1,056 Other Comprehensive Loss Foreign currency translation adjustments, net (5) (4) (4) 9 (4) Available-for-sale securities, net — — (13) — (13) Defined benefit plans, net (40) — (47) 40 (47) Other comprehensive loss (45) (4) (64) 49 (64) Comprehensive Income 1,187 63 991 (1,249) 992 Less: Comprehensive income attributable to redeemable noncontrolling interest — 1 — — 1 Comprehensive Income Attributable to NRG Energy, Inc. $ 1,187 $ 62 $ 991 $ (1,249) $ 991 (a) All significant intercompany transactions have been eliminated in consolidation |
CONDENSED CONSOLIDATING BALANCE SHEETS | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING BALANCE SHEETS September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 23 $ 674 $ — $ 697 Funds deposited by counterparties 15 — — — 15 Restricted cash 5 — 1 — 6 Accounts receivable, net 650 1,034 805 (1,363) 1,126 Inventory 253 77 — — 330 Derivative instruments 582 14 — (18) 578 Cash collateral paid in support of energy risk management activities 74 3 — — 77 Prepayments and other current assets 238 16 4 — 258 Total current assets 1,817 1,167 1,484 (1,381) 3,087 Property, plant and equipment, net 1,270 1,159 144 — 2,573 Other Assets Investment in subsidiaries 28 — 4,981 (5,009) — Equity investments in affiliates — 376 — — 376 Operating lease right-of-use assets, net 68 167 110 — 345 Goodwill 400 179 — — 579 Intangible assets, net 684 37 — — 721 Nuclear decommissioning trust fund 828 — — — 828 Derivative instruments 315 10 — (10) 315 Deferred income taxes 435 (32) 2,684 — 3,087 Other non-current assets 168 110 36 — 314 Total other assets 2,926 847 7,811 (5,019) 6,565 Total Assets $ 6,013 $ 3,173 $ 9,439 $ (6,400) $ 12,225 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ 3 $ — $ — $ — $ 3 Current portion of operating lease liabilities 18 33 18 — 69 Accounts payable 933 144 1,039 (1,363) 753 Derivative instruments 505 8 — (18) 495 Cash collateral received in support of energy risk management activities 15 — — — 15 Accrued expenses and other current liabilities 275 71 305 — 651 Total current liabilities 1,749 256 1,362 (1,381) 1,986 Other Liabilities Long-term debt 245 — 5,547 — 5,792 Non-current operating lease liabilities 56 134 107 — 297 Nuclear decommissioning reserve 311 — — — 311 Nuclear decommissioning trust liability 508 — — — 508 Derivative instruments 326 2 — (10) 318 Deferred income taxes — 17 — — 17 Other non-current liabilities 307 266 489 — 1,062 Total other liabilities 1,753 419 6,143 (10) 8,305 Total Liabilities 3,502 675 7,505 (1,391) 10,291 Stockholders’ Equity 2,511 2,498 1,934 (5,009) 1,934 Total Liabilities and Stockholders’ Equity $ 6,013 $ 3,173 $ 9,439 $ (6,400) $ 12,225 (a) All significant intercompany transactions have been eliminated in consolidation CONDENSED CONSOLIDATING BALANCE SHEETS December 31, 2019 (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated ASSETS Current Assets Cash and cash equivalents $ — $ 20 $ 325 $ — $ 345 Funds deposited by counterparties 32 — — — 32 Restricted cash 5 1 2 — 8 Accounts receivable, net 1,293 239 233 (740) 1,025 Inventory 272 111 — — 383 Derivative instruments 856 45 — (41) 860 Cash collateral paid in support of energy risk management activities 182 8 — — 190 Prepayments and other current assets 170 8 67 — 245 Total current assets 2,810 432 627 (781) 3,088 Property, plant and equipment, net 1,483 952 158 — 2,593 Other Assets Investment in subsidiaries 710 — 4,785 (5,495) — Equity investments in affiliates — 388 — — 388 Operating lease right-of-use assets, net 81 261 122 — 464 Goodwill 359 220 — — 579 Intangible assets, net 375 414 — — 789 Nuclear decommissioning trust fund 794 — — — 794 Derivative instruments 308 15 — (13) 310 Deferred income taxes 421 (19) 2,884 — 3,286 Other non-current assets 145 30 65 — 240 Total other assets 3,193 1,309 7,856 (5,508) 6,850 Total Assets $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities Current portion of long-term debt $ — $ 5 $ 83 $ — $ 88 Current portion of operating lease liabilities 20 32 21 — 73 Accounts payable 918 141 403 (740) 722 Derivative instruments 797 25 — (41) 781 Cash collateral received in support of energy risk management activities 32 — — — 32 Accrued expenses and other current liabilities 280 44 339 — 663 Total current liabilities 2,047 247 846 (781) 2,359 Other Liabilities Long-term debt 302 28 5,473 — 5,803 Non-current operating lease liabilities 64 301 118 — 483 Nuclear decommissioning reserve 298 — — — 298 Nuclear decommissioning trust liability 487 — — — 487 Derivative instruments 334 1 — (13) 322 Deferred income taxes — 17 — — 17 Other non-current liabilities 399 153 532 — 1,084 Total other liabilities 1,884 500 6,123 (13) 8,494 Total Liabilities 3,931 747 6,969 (794) 10,853 Redeemable noncontrolling interest in subsidiaries — 20 — — 20 Stockholders’ Equity 3,555 1,926 1,672 (5,495) 1,658 Total Liabilities and Stockholders’ Equity $ 7,486 $ 2,693 $ 8,641 $ (6,289) $ 12,531 (a) All significant intercompany transactions have been eliminated in consolidation |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2020 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Cash Flows from Operating Activities Net income $ 1,334 $ 57 $ 683 $ (1,391) $ 683 Adjustments to reconcile net income/(loss) to cash provided by operating activities: Distributions from and equity in earnings/(losses) of unconsolidated affiliates and consolidated subsidiaries (6) 6 (1,385) 1,391 6 Depreciation and amortization 232 60 26 — 318 Accretion of asset retirement obligations 19 27 — — 46 Provision for credit losses 66 8 — — 74 Amortization of nuclear fuel 40 — — — 40 Amortization of financing costs and debt discount/premiums — — 23 — 23 Loss on debt extinguishment, net — — 1 — 1 Amortization of emission allowances and energy credits 46 14 — — 60 Amortization of unearned equity compensation — — 17 — 17 Net gain on sale of assets and disposal of assets (16) (1) (5) — (22) Impairment losses — 47 — — 47 Changes in derivative instruments (27) 20 — — (7) Changes in deferred income taxes and liability for uncertain tax benefits (52) 11 243 — 202 Changes in collateral deposits in support of energy risk management activities 91 5 — — 96 Changes in nuclear decommissioning trust liability 39 — — — 39 Changes in other working capital 355 (923) 331 — (237) Net Cash Provided/(Used) by Operating Activities 2,121 (669) (66) — 1,386 Cash Flows from Investing Activities Intercompany dividends — — 2,591 (2,591) — Payments for acquisitions of businesses (15) (262) — — (277) Capital expenditures (115) (28) (24) — (167) Net purchases of emission allowances (15) — — — (15) Investments in nuclear decommissioning trust fund securities (360) — — — (360) Proceeds from the sale of nuclear decommissioning trust fund securities 318 — — — 318 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 8 2 5 — 15 Net contributions to investments in unconsolidated affiliates — 2 — — 2 Net Cash (Used)/Provided by Investing Activities (179) (286) 2,572 (2,591) (484) Cash Flows from Financing Activities Intercompany dividends and transfers (1,894) 964 (1,661) 2,591 — Payments of dividends to common stockholders — — (221) — (221) Payments for share repurchase activity — — (229) — (229) Purchase of and distributions to noncontrolling interests from subsidiaries — (2) — — (2) Proceeds from issuance of common stock — — 1 — 1 Proceeds from issuance of long-term debt — — 59 — 59 Payment of debt issuance costs — — (24) — (24) Repayments of long-term debt (59) (3) — — (62) Net repayment of Revolving Credit Facility — — (83) — (83) Other (6) — — — (6) Net Cash (Used)/Provided by Financing Activities (1,959) 959 (2,158) 2,591 (567) Effect of exchange rate changes on cash and cash equivalents — (2) — — (2) Net (Decrease)/Increase in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (17) 2 348 — 333 Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period 37 21 327 — 385 Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period $ 20 $ 23 $ 675 $ — $ 718 (a) All significant intercompany transactions have been eliminated in consolidation NRG ENERGY, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS For the nine months ended September 30, 2019 (Unaudited) (In millions) Guarantor Subsidiaries Non-Guarantor Subsidiaries NRG Energy, Inc. Eliminations (a) Consolidated Cash Flows from Operating Activities Net income $ 1,232 $ 67 $ 1,055 $ (1,298) $ 1,056 Income from discontinued operations 9 5 385 — 399 Income from continuing operations 1,223 62 670 (1,298) 657 Adjustments to reconcile net income to cash provided by operating activities: Distributions from and equity in losses of unconsolidated affiliates and consolidated subsidiaries (32) (5) (1,266) 1,298 (5) Depreciation and amortization 156 82 23 — 261 Accretion of asset retirement obligations 25 6 — — 31 Provision for credit losses 72 11 4 — 87 Amortization of nuclear fuel 40 — — — 40 Amortization of financing costs and debt discount/premiums — — 20 — 20 Loss on debt extinguishment, net — — 47 — 47 Amortization of emission allowances and energy credits 21 7 — — 28 Amortization of unearned equity compensation — — 15 — 15 Net loss on sale of assets and disposal of assets (25) 2 3 — (20) Impairment losses 1 101 6 — 108 Changes in derivative instruments 10 (12) 38 — 36 Changes in deferred income taxes and liability for uncertain tax benefits — (1) (2) — (3) Changes in collateral deposits in support of energy risk management activities 136 (7) — — 129 Changes in nuclear decommissioning trust liability 27 — — — 27 Changes in other working capital (401) (123) (45) — (569) Cash provided/(used) by continuing operations 1,253 123 (487) — 889 Cash provided/(used) by discontinued operations 17 (9) — — 8 Net Cash Provided/(Used) by Operating Activities 1,270 114 (487) — 897 Cash Flows from Investing Activities Intercompany dividends — — 3,866 (3,866) — Payments for acquisitions of businesses (348) — — — (348) Capital expenditures (135) (23) (25) — (183) Decrease in notes receivable — — 2 — 2 Net purchases of emission allowances 14 — — — 14 Investments in nuclear decommissioning trust fund securities (295) — — — (295) Proceeds from the sale of nuclear decommissioning trust fund securities 271 — — — 271 Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees 1 400 892 — 1,293 Net distributions from investments in unconsolidated affiliates — (94) — (94) Contributions to discontinued operations — (44) — — (44) Cash (used)/provided by continuing operations (492) 239 4,735 (3,866) 616 Cash used by discontinued operations — (2) — — (2) Net Cash (Used)/Provided by Investing Activities (492) 237 4,735 (3,866) 614 Cash Flows from Financing Activities Intercompany dividends and transfers (824) (317) (2,725) 3,866 — Payment of dividends to common stockholders — — (24) — (24) Payments for share repurchase activity — — (1,322) — (1,322) Payments for debt extinguishment — — (24) — (24) Net distributions to noncontrolling interests from subsidiaries — (1) — — (1) Proceeds from issuance of common stock — — 3 — 3 Proceeds from issuance of long-term debt — — 1,833 — 1,833 Payment of debt issuance costs — — (34) — (34) Payments for long-term debt — (55) (2,432) — (2,487) Net proceeds of Revolving Credit Facility — — 215 — 215 Cash used by continuing operations (824) (373) (4,510) 3,866 (1,841) Cash provided by discontinued operations — 43 — — 43 Net Cash Used by Financing Activities (824) (330) (4,510) 3,866 (1,798) Change in cash from discontinued operations 17 32 — — 49 Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (63) (11) (262) — (336) 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 $ 32 $ 27 $ 218 $ — $ 277 (a) All significant intercompany transactions have been eliminated in consolidation |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - General (Details) MW in Thousands | Sep. 30, 2020MW |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Generation capacity (in MW) | 23 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Other Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Accounting Policies [Abstract] | ||
Property, plant and equipment accumulated depreciation | $ 1,901 | $ 1,752 |
Intangible assets accumulated amortization | $ 1,314 | $ 1,262 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 47 | $ 43 | |
Provision for credit losses | 26 | 74 | $ 87 |
Write-offs | (19) | (71) | |
Recoveries collected | 3 | 11 | |
Ending balance | $ 57 | $ 57 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 697 | $ 345 | ||
Funds deposited by counterparties | 15 | 32 | ||
Restricted cash | 6 | 8 | ||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ 718 | $ 385 | $ 277 | $ 613 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Pension Plan Contributions (Details) - Pension Plan - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Anticipated employer contribution | $ 56 | |
Cash contributions | $ 12 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations Expected Timing of Satisfaction (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 188 |
Revenue remaining performance obligation period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 648 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 281 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 43 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 8 |
Revenue remaining performance obligation period | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 2,684 | $ 2,504 | $ 6,733 | $ 6,066 |
Mark-to-market for economic hedging activities | (118) | (64) | 13 | (23) |
Operating revenues | 2,809 | 2,996 | 7,066 | 7,626 |
Lease revenue | 5 | 5 | 15 | 15 |
Derivative revenue | (123) | (68) | 18 | (8) |
Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (3) | 0 | (6) | (5) |
Operating revenues | 2 | (2) | (1) | (7) |
Lease revenue | 0 | 0 | 0 | 0 |
Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,302 | 2,488 | 5,795 | 5,762 |
Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | (1) | (3) |
Energy revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 222 | 426 | 429 | 952 |
Derivative revenue | 35 | 652 | 99 | 1,352 |
Energy revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1 | (1) | (1) | 0 |
Derivative revenue | (1) | (2) | (3) | (2) |
Capacity revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 174 | 194 | 518 | 551 |
Derivative revenue | 49 | 34 | 114 | 82 |
Capacity revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 1 |
Derivative revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 39 | (210) | 78 | 51 |
Derivative revenue | 120 | 487 | 318 | 1,545 |
Derivative revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 5 | 0 | 8 | (1) |
Derivative revenue | 5 | (2) | 5 | (2) |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 72 | 98 | 246 | 310 |
Other revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (4) | (1) | (7) | (3) |
Total operating revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 2,809 | 2,996 | 7,066 | 7,626 |
Total operating revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 2 | (2) | (1) | (7) |
Other revenue, derivative | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | (3) | 11 | 27 | 60 |
Other revenue, derivative | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 1 | 0 | 0 | 0 |
Mass customers | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,987 | 2,072 | 4,929 | 4,780 |
Mass customers | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | (1) | (3) |
Business Solutions customers | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 315 | 416 | 866 | 982 |
Business Solutions customers | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Texas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,982 | 1,788 | 4,904 | 4,197 |
Operating revenues | 1,992 | 2,208 | 4,928 | 5,511 |
Lease revenue | 0 | 0 | 0 | 0 |
Texas | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,921 | 2,132 | 4,734 | 4,818 |
Texas | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 11 | 211 | 21 | 452 |
Derivative revenue | 0 | 613 | 0 | 1,239 |
Texas | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 1 | (213) | 1 | 28 |
Derivative revenue | 10 | 420 | 24 | 1,314 |
Texas | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 59 | 78 | 172 | 213 |
Texas | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 1,992 | 2,208 | 4,928 | 5,511 |
Texas | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 9 | 20 | 23 | 47 |
Texas | Mass customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,633 | 1,735 | 3,938 | 3,891 |
Texas | Business Solutions customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 288 | 397 | 796 | 927 |
East | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 578 | 610 | 1,558 | 1,624 |
Operating revenues | 693 | 679 | 1,798 | 1,812 |
Lease revenue | 0 | 0 | 1 | 1 |
East | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 381 | 356 | 1,062 | 947 |
East | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 93 | 109 | 157 | 283 |
Derivative revenue | 23 | 20 | 60 | 87 |
East | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 158 | 185 | 471 | 524 |
Derivative revenue | 49 | 34 | 114 | 81 |
East | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 43 | 12 | 63 | 13 |
Derivative revenue | 115 | 69 | 239 | 187 |
East | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 18 | 17 | 45 | 45 |
East | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 693 | 679 | 1,798 | 1,812 |
East | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 0 | 3 | 2 | 6 |
East | Mass customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 354 | 337 | 992 | 892 |
East | Business Solutions customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 27 | 19 | 70 | 55 |
West/Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 127 | 106 | 277 | 250 |
Operating revenues | 122 | 111 | 341 | 310 |
Lease revenue | 5 | 5 | 14 | 14 |
West/Other | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
West/Other | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 117 | 107 | 252 | 217 |
Derivative revenue | 13 | 21 | 42 | 28 |
West/Other | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 16 | 9 | 47 | 27 |
Derivative revenue | 0 | 0 | 0 | 0 |
West/Other | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | (10) | (9) | 6 | 11 |
Derivative revenue | (10) | 0 | 50 | 46 |
West/Other | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1) | 4 | 36 | 55 |
West/Other | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Operating revenues | 122 | 111 | 341 | 310 |
West/Other | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | (13) | (12) | 2 | 7 |
West/Other | Mass customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
West/Other | Business Solutions customers | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Deferred customer acquisition costs | $ 122 | $ 122 | $ 133 | ||
Total accounts receivable, net | 1,126 | 1,126 | 1,025 | ||
Unbilled revenues (included within Accounts receivable, net - Contracts with customers) | 411 | 411 | 402 | ||
Deferred revenues | 60 | 60 | 82 | ||
Deferred revenue from contract with customers | 31 | 24 | |||
Revenue recognized | 31 | $ 21 | 13 | $ 13 | |
Accounts receivable, net - Contracts with customers | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | 1,084 | 1,084 | 1,002 | ||
Accounts receivable, net - Derivative instruments | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | 37 | 37 | 18 | ||
Accounts receivable, net - Affiliate | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | $ 5 | $ 5 | $ 5 |
Acquisitions, Discontinued Op_3
Acquisitions, Discontinued Operations and Dispositions - Acquisitions (Details) customer in Thousands | Sep. 29, 2020USD ($) | Jul. 24, 2020USD ($)statecustomer | Aug. 01, 2019USD ($)customerstate | Nov. 05, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 22, 2020USD ($) |
Leased Assets, Powerton facility and Units 7 and 8 of the Joliet facility | ||||||
Business Acquisition [Line Items] | ||||||
Operating lease liability | $ 148,000,000 | |||||
Powerton Facility And Units 7 And 8 Of The Joliet Facility | ||||||
Business Acquisition [Line Items] | ||||||
Payment for asset acquisition | $ 260,000,000 | |||||
Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Increase revolving commitments | $ 802,000,000 | |||||
Revolving credit commitments | $ 273,000,000 | |||||
Receivables Facility | Secured Debt | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit commitments | $ 750,000,000 | |||||
Repurchase Facility | Secured Debt | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit commitments | $ 75,000,000 | |||||
Subsequent Event | Interest Rate Swap | ||||||
Business Acquisition [Line Items] | ||||||
Derivative, notional amount | $ 1,600,000,000 | |||||
Subsequent Event | Letter of Credit | ||||||
Business Acquisition [Line Items] | ||||||
Increase revolving commitments | 87,000,000 | |||||
Subsequent Event | Credit Facility | Line of Credit | Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Increase revolving commitments | 802,000,000 | |||||
Revolving credit commitments | 273,000,000 | |||||
Subsequent Event | Receivables Facility | Secured Debt | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit commitments | 750,000,000 | |||||
Subsequent Event | Repurchase Facility | Secured Debt | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit commitments | $ 75,000,000 | |||||
Direct Energy | ||||||
Business Acquisition [Line Items] | ||||||
Customers added (over) | customer | 3,000 | |||||
Cash paid to acquire business | $ 3,625,000,000 | |||||
Proceeds from issuance of long-term debt | 3,000,000,000 | |||||
Increase in collective collateral facilities | $ 3,500,000,000 | |||||
Direct Energy | U.S. | ||||||
Business Acquisition [Line Items] | ||||||
States in which entity operates | state | 50 | |||||
Direct Energy | Canada | ||||||
Business Acquisition [Line Items] | ||||||
Provinces in which entity operates | state | 6 | |||||
Stream Energy Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
States in which entity operates | state | 9 | |||||
Cash paid to acquire business | $ 329,000,000 | |||||
Working capital and other adjustment | $ 29,000,000 | |||||
Increase in retail portfolio by RCE's acquired | customer | 600 | |||||
Customers acquired | customer | 450 |
Acquisitions, Discontinued Op_4
Acquisitions, Discontinued Operations and Dispositions - Purchase Price Allocation (Details) - USD ($) $ in Millions | Aug. 01, 2019 | Sep. 30, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 579 | $ 579 | |
Stream Energy Acquisition | |||
Business Acquisition [Line Items] | |||
Account receivable | $ 98 | ||
Accounts payable | (73) | ||
Other net current and non-current working capital | 5 | ||
Goodwill | 6 | ||
Stream Purchase Price | 329 | ||
Stream Energy Acquisition | Texas | |||
Business Acquisition [Line Items] | |||
Goodwill | 5 | ||
Stream Energy Acquisition | East | |||
Business Acquisition [Line Items] | |||
Goodwill | 1 | ||
Stream Energy Acquisition | Marketing Partnerships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 154 | ||
Stream Energy Acquisition | Customer Relationships | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 85 | ||
Stream Energy Acquisition | Trade Names | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | 28 | ||
Stream Energy Acquisition | Other Intangible Assets | |||
Business Acquisition [Line Items] | |||
Finite-lived intangibles | $ 26 |
Acquisitions, Discontinued Op_5
Acquisitions, Discontinued Operations and Dispositions - Discontinued Operations Narrative (Details) $ in Millions | Feb. 06, 2018USD ($)extension | Sep. 30, 2020USD ($)MW | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | Feb. 04, 2019USD ($)MW |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Generation capacity (in MW) | MW | 23,000 | ||||
South Central Portfolio | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | $ 1,000 | ||||
Generation capacity (in MW) | MW | 1,153 | ||||
Carlsbad Energy Holdings LLC | Discontinued Operations, Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash consideration | $ 385 | ||||
Percentage of ownership sold | 100.00% | ||||
Lease and easement agreement, number of extensions | extension | 2 | ||||
Lease renewal term | 10 years | ||||
Additional commitments related to project | $ 23 | $ 23 | |||
Other | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from other asset sales | $ 15 | $ 22 |
Acquisitions, Discontinued Op_6
Acquisitions, Discontinued Operations and Dispositions - Summarized Results of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss)/Gain from discontinued operations, including disposal, net of tax | $ 0 | $ (2) | $ 0 | $ 399 |
Discontinued Operations, Disposed of by Sale | South Central Portfolio | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating revenues | 0 | 31 | ||
Operating costs and expenses | 0 | (23) | ||
Gain from operations of discontinued components/discontinued operations, net of tax | 0 | 8 | ||
(Loss)/Gain on disposal of discontinued operation, net of tax | (1) | 27 | ||
(Loss)/Gain from discontinued operations, including disposal, net of tax | (1) | 35 | ||
Discontinued Operations, Disposed of by Sale | Carlsbad Energy Holdings LLC | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Operating revenues | 0 | 19 | ||
Operating costs and expenses | 0 | (9) | ||
Other expense | 0 | (5) | ||
Gain from operations of discontinued components/discontinued operations, net of tax | 0 | 5 | ||
(Loss)/gain on disposal of discontinued operations, net of tax | (1) | 330 | ||
Other Commitments, Indemnification and Fees | 0 | 27 | ||
(Loss)/Gain on disposal of discontinued operation, net of tax | (1) | 357 | ||
(Loss)/Gain from discontinued operations, including disposal, net of tax | $ (1) | 362 | ||
Discontinued Operations | GenOn | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss)/Gain on disposal of discontinued operation, net of tax | $ 2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Carrying Amounts and Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | $ 5,929 | $ 6,042 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes receivable | 10 | 11 |
Long-term debt, including current portion | 5,854 | 5,956 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Notes receivable | 7 | 8 |
Long-term debt, including current portion | 6,309 | 6,504 |
Fair Value | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | 6,305 | 6,388 |
Fair Value | Level 3 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Long-term debt, including current portion | $ 4 | $ 116 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured and Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | $ 15 | $ 20 |
Other trust fund investments: | ||
U.S. government and federal agency obligations | 1 | 1 |
Measured using net asset value practical expedient: | ||
Total assets | 1,744 | 1,993 |
Derivative liabilities: | ||
Derivative liabilities | 813 | 1,103 |
Commodity contracts | ||
Derivative assets: | ||
Derivative assets | 893 | 1,170 |
Derivative liabilities: | ||
Derivative liabilities | 813 | 1,103 |
Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 25 | 17 |
U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 49 | 68 |
Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 92 | 100 |
Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 38 | 29 |
Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 144 | 109 |
Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 402 | 388 |
Measured using net asset value practical expedient: | ||
Equity contracts | 7 | 8 |
Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 6 | 5 |
Equity securities — nuclear trust fund investments | ||
Measured using net asset value practical expedient: | ||
Equity contracts | 72 | 78 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 0 |
Other trust fund investments: | ||
U.S. government and federal agency obligations | 1 | 1 |
Measured using net asset value practical expedient: | ||
Total assets | 550 | 558 |
Derivative liabilities: | ||
Derivative liabilities | 70 | 143 |
Level 1 | Commodity contracts | ||
Derivative assets: | ||
Derivative assets | 74 | 84 |
Derivative liabilities: | ||
Derivative liabilities | 70 | 143 |
Level 1 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 25 | 17 |
Level 1 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 48 | 68 |
Level 1 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 402 | 388 |
Level 1 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 15 | 20 |
Other trust fund investments: | ||
U.S. government and federal agency obligations | 0 | 0 |
Measured using net asset value practical expedient: | ||
Total assets | 888 | 1,156 |
Derivative liabilities: | ||
Derivative liabilities | 568 | 805 |
Level 2 | Commodity contracts | ||
Derivative assets: | ||
Derivative assets | 592 | 893 |
Derivative liabilities: | ||
Derivative liabilities | 568 | 805 |
Level 2 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 1 | 0 |
Level 2 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 92 | 100 |
Level 2 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 38 | 29 |
Level 2 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 144 | 109 |
Level 2 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 6 | 5 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 0 |
Other trust fund investments: | ||
U.S. government and federal agency obligations | 0 | 0 |
Measured using net asset value practical expedient: | ||
Total assets | 227 | 193 |
Derivative liabilities: | ||
Derivative liabilities | 175 | 155 |
Level 3 | Commodity contracts | ||
Derivative assets: | ||
Derivative assets | 227 | 193 |
Derivative liabilities: | ||
Derivative liabilities | 175 | 155 |
Level 3 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Financial Instruments (Details) - Level 3 - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 116 | $ 39 | ||
Contracts added from acquisitions | (2) | (3) | ||
Total (losses)/gains realized/unrealized: | ||||
Total (losses) — realized/unrealized included in earnings | (18) | (44) | ||
Included in OCI | (14) | (14) | ||
Cash received | 0 | (1) | ||
Purchases | 38 | 26 | ||
Transfers into Level 3 | (126) | 4 | ||
Transfers out of Level 3 | 24 | 11 | ||
Ending balance | 18 | 18 | ||
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 period end | 44 | 14 | ||
Debt Securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | 19 | 19 | ||
Contracts added from acquisitions | 0 | 0 | ||
Total (losses)/gains realized/unrealized: | ||||
Total (losses) — realized/unrealized included in earnings | 0 | 1 | ||
Included in OCI | (14) | (14) | ||
Cash received | 0 | (1) | ||
Purchases | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Ending balance | 5 | 5 | ||
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 period end | 0 | 1 | ||
Derivatives | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 152 | 97 | $ 38 | 20 |
Contracts added from acquisitions | (2) | (3) | ||
Total (losses)/gains realized/unrealized: | ||||
Total (losses) — realized/unrealized included in earnings | (92) | (18) | (18) | (45) |
Included in OCI | 0 | 0 | ||
Cash received | 0 | 0 | ||
Purchases | (10) | 38 | 6 | 26 |
Transfers into Level 3 | (11) | (126) | 22 | 4 |
Transfers out of Level 3 | 13 | 24 | 4 | 11 |
Ending balance | 52 | 13 | 52 | 13 |
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 period end | $ 23 | $ 44 | $ 50 | $ 13 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Derivative Fair Value Measurements, Narrative (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Fair Value Disclosures [Abstract] | |
Total derivative assets valued with prices provided by models and other valuation techniques (as a percent) | 25.00% |
Total derivative liabilities valued with prices provided by models and other valuation techniques (as a percent) | 22.00% |
Increase within operating revenue | $ 1 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Derivative Fair Value Measurements (Details) $ in Millions | Sep. 30, 2020USD ($)$ / MWh | Dec. 31, 2019USD ($)$ / MWh |
Liabilities | ||
Derivative liabilities | $ 813 | $ 1,103 |
Level 3 | ||
Liabilities | ||
Derivative liabilities | 175 | 155 |
Commodity contracts | ||
Assets | ||
Derivative assets | 893 | 1,170 |
Liabilities | ||
Derivative liabilities | 813 | 1,103 |
Commodity contracts | Level 3 | ||
Assets | ||
Derivative assets | 227 | 193 |
Liabilities | ||
Derivative liabilities | 175 | 155 |
Commodity contracts | Level 3 | Power Contracts | ||
Assets | ||
Derivative assets | 196 | 151 |
Liabilities | ||
Derivative liabilities | $ 167 | $ 139 |
Commodity contracts | Level 3 | Power Contracts | Low | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 10 | 8 |
Commodity contracts | Level 3 | Power Contracts | High | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 116 | 218 |
Commodity contracts | Level 3 | Power Contracts | Weighted Average | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 24 | 24 |
Commodity contracts | Level 3 | FTRs | ||
Assets | ||
Derivative assets | $ 31 | $ 42 |
Liabilities | ||
Derivative liabilities | $ 8 | $ 16 |
Commodity contracts | Level 3 | FTRs | Low | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | (50) | (105) |
Commodity contracts | Level 3 | FTRs | High | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | 43 | 213 |
Commodity contracts | Level 3 | FTRs | Weighted Average | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | 0 | 0 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Counterparty Credit Risk (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)counterparty | |
Concentration of Credit Risk | |
Counterparty credit exposure to a portion of the Company's counterparties | $ 232 |
Collateral held (cash and letters of credit) against counterparty credit exposure to a portion of the Company's counterparties | 19 |
Net counterparty credit exposure to a portion of the Company's counterparties | $ 214 |
Company's exposure before collateral is expected to roll off by the end of 2019 (as a percent) | 39.00% |
Net exposure (as a percent) | 100.00% |
Counterparty credit risk exposure | $ 45 |
Wholesale counterparty with net exposure | counterparty | 2 |
Counterparty credit risk exposure to certain counterparties, threshold (as a percent) | 10.00% |
Estimated counterparty credit risk exposure to certain counterparties | $ 621 |
Period of estimated counterparty credit risk exposure, years | 5 years |
Investment grade | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 59.00% |
Non-investment grade/non-rated | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 41.00% |
Utilities, energy merchants, marketers and other | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 88.00% |
Financial institutions | |
Concentration of Credit Risk | |
Net exposure (as a percent) | 12.00% |
Nuclear Decommissioning Trust_3
Nuclear Decommissioning Trust Fund - Narrative (Details) | Sep. 30, 2020 |
STP | |
Nuclear decommissioning trust fund | |
Ownership interest as percentage | 44.00% |
Nuclear Decommissioning Trust_4
Nuclear Decommissioning Trust Fund - Summary of aggregate fair values and realized gains and losses (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Nuclear decommissioning trust fund | ||
Fair Value | $ 828 | $ 794 |
Unrealized Gains | 347 | 338 |
Unrealized Losses | 1 | 1 |
Cash and cash equivalents | ||
Nuclear decommissioning trust fund | ||
Fair Value | 25 | 17 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
U.S. government and federal agency obligations | ||
Nuclear decommissioning trust fund | ||
Fair Value | 49 | 68 |
Unrealized Gains | 7 | 4 |
Unrealized Losses | $ 0 | $ 0 |
Weighted-average Maturities (In years) | 12 years | 11 years |
Federal agency mortgage-backed securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 92 | $ 100 |
Unrealized Gains | 4 | 3 |
Unrealized Losses | $ 0 | $ 0 |
Weighted-average Maturities (In years) | 24 years | 24 years |
Commercial mortgage-backed securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 38 | $ 29 |
Unrealized Gains | 2 | 1 |
Unrealized Losses | $ 0 | $ 1 |
Weighted-average Maturities (In years) | 28 years | 24 years |
Corporate debt securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 144 | $ 109 |
Unrealized Gains | 12 | 6 |
Unrealized Losses | $ 0 | $ 0 |
Weighted-average Maturities (In years) | 12 years | 11 years |
Equity securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 474 | $ 466 |
Unrealized Gains | 321 | 324 |
Unrealized Losses | 1 | 0 |
Foreign government fixed income securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | 6 | 5 |
Unrealized Gains | 1 | 0 |
Unrealized Losses | $ 0 | $ 0 |
Weighted-average Maturities (In years) | 10 years | 10 years |
Nuclear Decommissioning Trust_5
Nuclear Decommissioning Trust Fund - Summary of proceeds from sales of available-for-sale securities and related gains and losses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Regulated Operations [Abstract] | ||
Realized gains | $ 22 | $ 8 |
Realized losses | (11) | (7) |
Proceeds from sale of securities | $ 318 | $ 271 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities - Net notional volume buy/sell of open derivative transactions (Details) certificates in Millions, T in Millions, MWh in Millions, MMBTU in Millions, $ in Billions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020MMBTUMWhcertificatesT | Dec. 31, 2019MMBTUMWhcertificatesT | Nov. 05, 2020USD ($) | |
Interest Rate Swap | Subsequent Event | |||
Derivative [Line Items] | |||
Derivative, notional amount | $ | $ 1.6 | ||
Long | Emissions | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, nonmonetary notional amount, mass (ton) | T | 1 | 3 | |
Long | Renewable Energy Certificates | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, non-monetary notional amount (in shares) | certificates | 3 | 1 | |
Long | Coal | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, nonmonetary notional amount, mass (ton) | T | 4 | 10 | |
Long | Power | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MWh | (51) | (38) | |
Short | Natural Gas | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MMBTU | (264) | (181) | |
Short | Capacity | |||
Volumetric Underlying Derivative Transactions | |||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MMBTU | (1) | (1) |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities - Fair value within the derivative instrument valuation (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Derivative Liabilities | $ 813 | $ 1,103 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 893 | 1,170 |
Derivative Liabilities | 813 | 1,103 |
Not Designated as Hedging Instrument | Commodity contracts current | ||
Derivative [Line Items] | ||
Derivative Assets | 578 | 860 |
Derivative Liabilities | 495 | 781 |
Not Designated as Hedging Instrument | Commodity contracts long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 315 | 310 |
Derivative Liabilities | $ 318 | $ 322 |
Accounting for Derivative Ins_5
Accounting for Derivative Instruments and Hedging Activities - Offsetting of derivatives by counterparty master agreement level and collateral received (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Cash Collateral (Held) / Posted | $ (15) | $ (32) |
Derivative liabilities | (813) | (1,103) |
Cash Collateral Posted | 77 | 190 |
Commodity contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 893 | 1,170 |
Derivative Instruments | (738) | (909) |
Cash Collateral (Held) / Posted | (1) | (7) |
Net Amount | 154 | 254 |
Derivative liabilities | (813) | (1,103) |
Derivative Instruments | 738 | 909 |
Cash Collateral Posted | 0 | 73 |
Net Amount | (75) | (121) |
Gross Amounts of Recognized Assets / Liabilities | 80 | 67 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (1) | 66 |
Net Amount | $ 79 | $ 133 |
Accounting for Derivative Ins_6
Accounting for Derivative Instruments and Hedging Activities - Pre-tax effects of economic hedges not designated a cash flow hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges | $ (101) | $ (118) | $ (62) | $ (88) |
Reversal of acquired (gain)/loss positions related to economic hedges | (2) | (3) | 2 | (4) |
Net unrealized (losses)/gains on open positions related to economic hedges | (15) | 57 | 73 | 69 |
Total unrealized mark-to-market (losses)/gains for economic hedging activities | (118) | (64) | 13 | (23) |
Reversal of previously recognized unrealized (gains) on settled positions related to trading activity | (7) | (1) | (14) | (8) |
Net unrealized gains/(losses) on open positions related to trading activity | 2 | (3) | 19 | 23 |
Total unrealized mark-to-market (losses)/gains for trading activity | (5) | (4) | 5 | 15 |
Total unrealized (losses)/gains | (123) | (68) | 18 | (8) |
Credit Risk Related Contingent Features | ||||
Unrealized gains from open economic hedge positions | 73 | 69 | ||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 8 | 8 | ||
Additional collateral required | 3 | 3 | ||
Adequate Assurance Clauses | ||||
Credit Risk Related Contingent Features | ||||
Derivative net liability position, collateral required for contracts with credit rating contingent feature | 35 | 35 | ||
Commodity contracts | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | (123) | (68) | 18 | (8) |
Commodity contracts | Operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | 34 | (214) | 83 | 66 |
Commodity contracts | Cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | (157) | 146 | (65) | (74) |
Interest rate contracts | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | $ 0 | $ 0 | $ 0 | $ (38) |
Impairments (Details)
Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | ||||
Impairment losses of cost investments and intangible assets | $ 7 | |||
Petra Nova | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Impairment losses | $ 18 | $ 101 | ||
Letters of credit issued | 12 | 12 | ||
Investment in cash | 95 | |||
Guarantor obligations (up to) | $ 124 | $ 124 | ||
West/Other | Disposal Group, Held-for-sale, Not Discontinued Operations | Home Solar | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Adjustment to carrying amount of assets and liabilities | $ 29 | |||
Other noncurrent assets- held for sale | 88 | |||
Non-current liabilities - held-for-sale | $ 44 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Details) $ / shares in Units, $ in Millions | Oct. 30, 2020$ / shares | Sep. 30, 2020USD ($) | Mar. 11, 2020 | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Debt amount | $ 5,929 | $ 6,042 | ||
Less current maturities | (3) | (88) | ||
Less debt issuance costs | (59) | (65) | ||
Discounts | (75) | (86) | ||
Long-term debt | 5,792 | 5,803 | ||
Recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Debt amount | 5,925 | 6,008 | ||
Recourse Debt | Senior Notes, due 2026 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 1,000 | 1,000 | ||
Interest rate, stated percentage | 7.25% | |||
Recourse Debt | Senior Notes, due 2027 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 1,230 | 1,230 | ||
Interest rate, stated percentage | 6.625% | |||
Recourse Debt | Senior Notes, due 2028 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 821 | 821 | ||
Interest rate, stated percentage | 5.75% | |||
Recourse Debt | Senior Notes, due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 733 | 733 | ||
Interest rate, stated percentage | 5.25% | |||
Recourse Debt | Convertible Senior Notes Due 2048 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 575 | 575 | ||
Interest rate, stated percentage | 2.75% | |||
Recourse Debt | Convertible Senior Notes Due 2048 | Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Convertible Notes, conversion price (in usd per share) | $ / shares | $ 46.24 | |||
Conversion rate | 0.02162 | |||
Recourse Debt | Senior Secured First Lien Notes, due 2024 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 600 | 600 | ||
Interest rate, stated percentage | 3.75% | |||
Recourse Debt | Senior Secured First Lien Notes, due 2029 | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 500 | 500 | ||
Interest rate, stated percentage | 4.45% | |||
Recourse Debt | Tax-exempt bonds | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 466 | 466 | ||
Recourse Debt | Tax-exempt bonds | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 1.30% | 1.30% | ||
Recourse Debt | Tax-exempt bonds | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 6.00% | |||
Line of Credit | Revolving Credit Facility | Revolver Facility | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 0 | 83 | ||
Line of Credit | Revolving Credit Facility | Revolver Facility | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.75% | |||
Non Recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 4 | 34 | ||
Non Recourse Debt | Other | ||||
Debt Instrument [Line Items] | ||||
Debt amount | $ 4 | $ 34 |
Long-term Debt - Recourse Debt
Long-term Debt - Recourse Debt (Details) | 3 Months Ended | |||||
Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020CAD ($) | Jun. 30, 2020USD ($) | Mar. 11, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt amount | $ 5,929,000,000 | $ 6,042,000,000 | ||||
Recourse Debt | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | 5,925,000,000 | 6,008,000,000 | ||||
Recourse Debt | Tax-exempt bonds | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 466,000,000 | 466,000,000 | ||||
Debt issuance amount | $ 59,000,000 | |||||
Recourse Debt | Dunkirk Power LLC Tax Exempt Bonds Due 2042 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, stated percentage | 5.875% | 5.875% | ||||
Revolving Credit Facility | Line of Credit | Revolver Facility | ||||||
Debt Instrument [Line Items] | ||||||
Debt amount | $ 0 | $ 83,000,000 | ||||
Increase revolving commitments | 802,000,000 | |||||
Revolving credit commitments | $ 273,000,000 | |||||
Debt term | 30 months | |||||
Debt extension, term | 12 months | |||||
Credit facility, lien basket (greater than) | $ 10,000,000,000 | $ 6,000,000,000 | ||||
Credit facilities, percentage of total assets | 30.00% | 30.00% | 30.00% | |||
Revolving Credit Facility | Line of Credit | Revolver Facility | Forecast | ||||||
Debt Instrument [Line Items] | ||||||
Total revolving commitments available | $ 3,700,000,000 | |||||
Bridge Loan | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit commitments | $ 100,000,000 | $ 10,000,000 | $ 50,000,000 | |||
Debt Basket | Revolver Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit commitments | 600,000,000 | |||||
Debt Basket | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit commitments | 10,000,000,000 | 6,000,000,000 | ||||
Debt Basket | Secured Debt | Revolver Facility | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit commitments | $ 1,700,000,000 | $ 750,000,000 |
Long-term Debt - Non Recourse D
Long-term Debt - Non Recourse Debt (Details) - Letter of Credit - USD ($) | Jan. 04, 2019 | Sep. 30, 2020 | Nov. 05, 2020 |
Subsequent Event | |||
Debt Instrument [Line Items] | |||
Increase credit facility | $ 87,000,000 | ||
Credit Agreement | |||
Debt Instrument [Line Items] | |||
Credit agreement | $ 80,000,000 | ||
Facility fees | 1.33% | ||
Increase credit facility | $ 50,000,000 | ||
Letters of credit issued | $ 80,000,000 | ||
Credit Agreement | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Credit agreement | $ 167,000,000 |
Investments Accounted for Usi_3
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs (Details) - USD ($) $ in Millions | Nov. 05, 2020 | Sep. 30, 2020 | Jul. 31, 2020 | Dec. 31, 2019 |
Investments Accounted for by the Equity Method | ||||
Equity investments in affiliates | $ 376 | $ 388 | ||
Other current assets | 3,087 | 3,088 | ||
Property, plant and equipment, net | 2,573 | 2,593 | ||
Other non-current assets | 314 | 240 | ||
Total Assets | 12,225 | 12,531 | ||
Current liabilities | 1,986 | 2,359 | ||
Long-term debt | 5,929 | 6,042 | ||
Other non-current liabilities | 1,062 | 1,084 | ||
Total Liabilities | 10,291 | 10,853 | ||
Variable Interest Entity, Primary Beneficiary | ||||
Investments Accounted for by the Equity Method | ||||
Accounts receivable | 887 | 0 | ||
Other current assets | 4 | 3 | ||
Property, plant and equipment, net | 0 | 71 | ||
Other non-current assets | 25 | 27 | ||
Total Assets | 916 | 101 | ||
Current liabilities | 5 | 4 | ||
Long-term debt | 0 | 24 | ||
Other non-current liabilities | 27 | 8 | ||
Total Liabilities | 32 | 36 | ||
Redeemable noncontrolling interest | 0 | 20 | ||
Net Assets Less Noncontrolling Interest | 884 | $ 45 | ||
Agua Caliente | ||||
Investments Accounted for by the Equity Method | ||||
Ownership interest | 35.00% | |||
Equity investments in affiliates | 197 | |||
Agua Caliente | Subsequent Event | ||||
Investments Accounted for by the Equity Method | ||||
Distributions received | $ 50 | |||
Ivampah Master Holdings LLC | ||||
Investments Accounted for by the Equity Method | ||||
Equity investments in affiliates | $ 26 |
Changes in Capital Structure -
Changes in Capital Structure - Narrative (Details) - shares | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2019 | Sep. 30, 2020 | |
Equity [Abstract] | |||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |
Long-term capital allocation, target allocation, cash generated allocated to growth investments, percentage | 50.00% | ||
Long-term capital allocation, target allocation, cash generated allocated returned to shareholders, percentage | 50.00% | ||
Employee Stock Purchase Plan, minimum percentage of eligible compensation to purchase shares | 1.00% | ||
Employee Stock Purchase Plan, maximum percentage of eligible compensation | 10.00% | ||
Employee Stock Purchase Plan, exercise price as percentage of fair value | 95.00% |
Changes in Capital Structure _2
Changes in Capital Structure - Changes in NRG's common stock issued and outstanding (Details) - shares | 1 Months Ended | 9 Months Ended |
Nov. 05, 2020 | Sep. 30, 2020 | |
Schedule of Stock by Class, Equity [Roll Forward] | ||
Balance as of beginning of period (in shares) | 423,041,349 | 421,890,790 |
Treasury shares, balance as of beginning of period (in shares) | (178,893,929) | (172,894,601) |
Outstanding, as of beginning of period (in shares) | 244,147,420 | 248,996,189 |
Shares issued under LTIPs (in shares) | 1,150,559 | |
Stock issued under ESPP (in shares) | 63,455 | |
Shares repurchased (in shares) | (6,062,783) | |
Balance as of end of period (in shares) | 423,041,349 | |
Treasury shares, balance as of end of the period (in shares) | (178,893,929) | |
Outstanding, as of end of period (in shares) | 244,147,420 | |
Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 5,400 | |
Stock issued under ESPP (in shares) | 68,014 | |
Outstanding, as of end of period (in shares) | 244,220,834 | |
Common Stock | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Balance as of beginning of period (in shares) | 423,041,349 | 421,890,790 |
Shares issued under LTIPs (in shares) | 1,150,559 | |
Stock issued under ESPP (in shares) | 0 | |
Shares repurchased (in shares) | 0 | |
Balance as of end of period (in shares) | 423,041,349 | |
Common Stock | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 5,400 | |
Stock issued under ESPP (in shares) | 0 | |
Balance as of end of period (in shares) | 423,046,749 | |
Treasury | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Treasury shares, balance as of beginning of period (in shares) | (178,893,929) | (172,894,601) |
Shares issued under LTIPs (in shares) | 0 | |
Stock issued under ESPP (in shares) | 63,455 | |
Shares repurchased (in shares) | (6,062,783) | |
Treasury shares, balance as of end of the period (in shares) | (178,893,929) | |
Treasury | Subsequent Event | ||
Schedule of Stock by Class, Equity [Roll Forward] | ||
Shares issued under LTIPs (in shares) | 0 | |
Stock issued under ESPP (in shares) | 68,014 | |
Treasury shares, balance as of end of the period (in shares) | (178,825,915) |
Changes in Capital Structure _3
Changes in Capital Structure - Schedule of Repurchases Under Share Repurchase Programs (Details) $ / shares in Units, $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Schedule of Capitalization, Equity [Line Items] | |
Total number of shares purchased (in shares) | 6,062,783 |
Capital Allocation Plan, Open Market Repurchases | |
Schedule of Capitalization, Equity [Line Items] | |
Total number of shares purchased (in shares) | 6,062,783 |
Amounts paid for shares purchased | $ | $ 197 |
Equivalent Shares In Lieu Of Tax Withholding on Equity Compensation Issuances | |
Schedule of Capitalization, Equity [Line Items] | |
Total number of shares purchased (in shares) | 711,248 |
Average price paid per share (in usd per share) | $ / shares | $ 38.23 |
Amounts paid for shares purchased | $ | $ 27 |
Capital Allocation Plan | |
Schedule of Capitalization, Equity [Line Items] | |
Total number of shares purchased (in shares) | 6,774,031 |
Average price paid per share (in usd per share) | $ / shares | $ 33.05 |
Amounts paid for shares purchased | $ | $ 224 |
Changes in Capital Structure _4
Changes in Capital Structure - NRG Common Stock Dividends (Details) - $ / shares | Oct. 23, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||||||
Common stock dividends proposed annual amount (in usd per share) | $ 1.20 | $ 0.12 | ||||||
Dividends per common share (in usd per share) | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.03 | $ 0.03 | $ 0.03 | ||
Subsequent Event | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock dividends declared (in usd per share) | $ 0.30 | |||||||
Minimum | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock, annual dividend growth rate, percentage | 700.00% | |||||||
Maximum | ||||||||
Subsequent Event [Line Items] | ||||||||
Common stock, annual dividend growth rate, percentage | 9.00% |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic income per share: | ||||||||
Net income attributable to NRG Energy, Inc. | $ 249 | $ 313 | $ 121 | $ 372 | $ 201 | $ 482 | $ 683 | $ 1,055 |
Weighted average number of common shares outstanding — basic (in shares) | 244 | 254 | 246 | 266 | ||||
Income per weighted average common share — basic (in usd per share) | $ 1.02 | $ 1.46 | $ 2.78 | $ 3.97 | ||||
Diluted income per share: | ||||||||
Net income available to common shareholders | $ 249 | $ 372 | $ 683 | $ 1,055 | ||||
Weighted average number of common shares outstanding — basic (in shares) | 244 | 254 | 246 | 266 | ||||
Incremental shares attributable to the issuance of equity compensation (treasury stock method) (in shares) | 1 | 2 | 1 | 2 | ||||
Weighted average number of common shares outstanding- dilutive (in shares) | 245 | 256 | 247 | 268 | ||||
Income per weighted average common share — diluted (in usd per share) | $ 1.02 | $ 1.45 | $ 2.77 | $ 3.94 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information | ||||||||
Operating revenues | $ 2,809 | $ 2,996 | $ 7,066 | $ 7,626 | ||||
Depreciation and amortization | 99 | 91 | 318 | 261 | ||||
Impairment losses | 29 | 0 | 29 | 1 | ||||
Reorganization costs | 0 | 1 | 3 | 16 | ||||
Gain on sale of assets | 6 | 2 | ||||||
Equity in earnings of unconsolidated affiliates | 36 | 29 | 37 | 8 | ||||
Loss on debt extinguishment, net | 0 | 0 | (1) | (47) | ||||
Income from Continuing Operations Before Income Taxes | 341 | 380 | 899 | 666 | ||||
Income/(loss) from continuing operations | 249 | 374 | 683 | 657 | ||||
Loss from discontinued operations, net of tax | 0 | (2) | 0 | 399 | ||||
Net Income | 249 | 372 | 683 | 1,056 | ||||
Net income attributable to NRG Energy, Inc. | 249 | $ 313 | $ 121 | 372 | $ 201 | $ 482 | 683 | 1,055 |
Eliminations | ||||||||
Segment Reporting Information | ||||||||
Operating revenues | 2 | (2) | (1) | (7) | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Impairment losses | 0 | 0 | ||||||
Reorganization costs | 0 | |||||||
Gain on sale of assets | 0 | 0 | ||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Loss on debt extinguishment, net | 0 | |||||||
Income from Continuing Operations Before Income Taxes | 0 | 1 | 0 | 0 | ||||
Income/(loss) from continuing operations | 0 | 1 | 0 | 0 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | ||||||
Net Income | 1 | 0 | ||||||
Net income attributable to NRG Energy, Inc. | 0 | 1 | 0 | 0 | ||||
Texas | Operating Segments | ||||||||
Segment Reporting Information | ||||||||
Operating revenues | 1,992 | 2,208 | 4,928 | 5,511 | ||||
Depreciation and amortization | 49 | 45 | 167 | 125 | ||||
Impairment losses | 0 | 0 | ||||||
Reorganization costs | 5 | |||||||
Gain on sale of assets | 0 | 0 | ||||||
Equity in earnings of unconsolidated affiliates | 0 | 1 | (3) | (5) | ||||
Loss on debt extinguishment, net | 0 | |||||||
Income from Continuing Operations Before Income Taxes | 288 | 348 | 800 | 757 | ||||
Income/(loss) from continuing operations | 288 | 348 | 800 | 757 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | ||||||
Net Income | 348 | 757 | ||||||
Net income attributable to NRG Energy, Inc. | 288 | 348 | 800 | 757 | ||||
East | Operating Segments | ||||||||
Segment Reporting Information | ||||||||
Operating revenues | 693 | 679 | 1,798 | 1,812 | ||||
Depreciation and amortization | 34 | 31 | 100 | 87 | ||||
Impairment losses | 0 | 0 | ||||||
Reorganization costs | 0 | |||||||
Gain on sale of assets | 0 | 1 | ||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Loss on debt extinguishment, net | 0 | |||||||
Income from Continuing Operations Before Income Taxes | 149 | 121 | 319 | 280 | ||||
Income/(loss) from continuing operations | 149 | 121 | 319 | 280 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | ||||||
Net Income | 121 | 280 | ||||||
Net income attributable to NRG Energy, Inc. | 149 | 121 | 319 | 280 | ||||
West/Other | Operating Segments | ||||||||
Segment Reporting Information | ||||||||
Operating revenues | 122 | 111 | 341 | 310 | ||||
Depreciation and amortization | 9 | 8 | 25 | 26 | ||||
Impairment losses | 29 | 29 | ||||||
Reorganization costs | 0 | |||||||
Gain on sale of assets | 1 | 0 | ||||||
Equity in earnings of unconsolidated affiliates | 36 | 28 | 40 | 13 | ||||
Loss on debt extinguishment, net | 0 | |||||||
Income from Continuing Operations Before Income Taxes | 17 | 16 | 84 | 11 | ||||
Income/(loss) from continuing operations | 17 | 15 | 83 | 10 | ||||
Loss from discontinued operations, net of tax | 0 | 0 | ||||||
Net Income | 15 | 10 | ||||||
Net income attributable to NRG Energy, Inc. | 17 | 15 | 83 | 9 | ||||
Corporate | Operating Segments | ||||||||
Segment Reporting Information | ||||||||
Operating revenues | 0 | 0 | 0 | 0 | ||||
Depreciation and amortization | 7 | 7 | 26 | 23 | ||||
Impairment losses | 0 | 0 | ||||||
Reorganization costs | 11 | |||||||
Gain on sale of assets | 5 | 1 | ||||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Loss on debt extinguishment, net | (47) | |||||||
Income from Continuing Operations Before Income Taxes | (113) | (106) | (304) | (382) | ||||
Income/(loss) from continuing operations | (205) | (111) | (519) | (390) | ||||
Loss from discontinued operations, net of tax | (2) | 399 | ||||||
Net Income | (113) | 9 | ||||||
Net income attributable to NRG Energy, Inc. | $ (205) | $ (113) | $ (519) | $ 9 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Tax Rate | ||||
Income from continuing operations before income taxes | $ 341 | $ 380 | $ 899 | $ 666 |
Income tax expense from continuing operations | $ 92 | $ 6 | $ 216 | $ 9 |
Effective income tax rate | 27.00% | 1.60% | 24.00% | 1.40% |
Uncertain Tax Benefits | ||||
Non-current tax liability for uncertain tax benefits | $ 21 | $ 21 | ||
Uncertain tax benefits, penalties and interest accrued | $ 3 | $ 3 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of NRG's Material Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 13 | $ 11 | $ 40 | $ 32 |
Gladstone | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 1 | 2 | 2 | 3 |
Ivanpah | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 11 | 7 | 34 | 25 |
Midway-Sunset | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 1 | $ 2 | $ 4 | $ 4 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Sep. 30, 2020USD ($)case | Jun. 30, 2019facility |
Sierra Club Et Al V. Midwest Generation LLC | ||
Loss Contingencies | ||
Number of facilities | facility | 4 | |
XOOM Energy Litigation | ||
Loss Contingencies | ||
Pending lawsuits | case | 2 | |
Lignite Contract With Texas Westmoreland Coal Co. | ||
Loss Contingencies | ||
Bond obligation | $ | $ 99 |
Subsequent Events (Details)
Subsequent Events (Details) $ in Billions | Nov. 05, 2020USD ($) |
Interest Rate Hedges | Subsequent Event | |
Subsequent Event [Line Items] | |
Derivative, notional amount | $ 1.6 |
Condensed Consolidating Finan_3
Condensed Consolidating Financial Information - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Debt amount | $ 5,929 | $ 6,042 |
Recourse Debt | ||
Debt Instrument [Line Items] | ||
Debt amount | 5,925 | $ 6,008 |
Senior Notes | Recourse Debt | ||
Debt Instrument [Line Items] | ||
Debt amount | 4,400 | |
Senior Secured First Lien Notes | Recourse Debt | ||
Debt Instrument [Line Items] | ||
Debt amount | $ 1,100 |
Condensed Consolidating Finan_4
Condensed Consolidating Financial Information - CONSOLIDATING STATEMENTS OF OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Revenues | ||||||||
Total operating revenues | $ 2,809 | $ 2,996 | $ 7,066 | $ 7,626 | ||||
Operating Costs and Expenses | ||||||||
Cost of operations | 2,034 | 2,153 | 4,925 | 5,649 | ||||
Depreciation and amortization | 99 | 91 | 318 | 261 | ||||
Impairment losses | 29 | 0 | 29 | 1 | ||||
Selling, general and administrative costs | 253 | 210 | 670 | 615 | ||||
Reorganization costs | 0 | 1 | 3 | 16 | ||||
Development costs | 1 | 1 | 6 | 5 | ||||
Total operating costs and expenses | 2,416 | 2,456 | 5,951 | 6,547 | ||||
Gain on sale of assets | 0 | 0 | 6 | 2 | ||||
Operating Income/(Loss) | 393 | 540 | 1,121 | 1,081 | ||||
Other Income/(Expense) | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Equity in earnings of unconsolidated affiliates | 36 | 29 | 37 | 8 | ||||
Impairment losses on investments | 0 | (107) | (18) | (107) | ||||
Other income, net | 11 | 17 | 52 | 49 | ||||
Loss on debt extinguishment, net | 0 | 0 | (1) | (47) | ||||
Interest expense | (99) | (99) | (292) | (318) | ||||
Total other income/(expense) | (52) | (160) | (222) | (415) | ||||
Income from Continuing Operations Before Income Taxes | 341 | 380 | 899 | 666 | ||||
Income tax expense | 92 | 6 | 216 | 9 | ||||
Income from Continuing Operations | 249 | 374 | 683 | 657 | ||||
(Loss)/income from discontinued operations, net of income tax | 0 | (2) | 0 | 399 | ||||
Net Income | 249 | 372 | 683 | 1,056 | ||||
Less: Net income attributable to redeemable noncontrolling interests | 0 | 0 | 0 | 1 | ||||
Net Income Attributable to NRG Energy, Inc. | 249 | $ 313 | $ 121 | 372 | $ 201 | $ 482 | 683 | 1,055 |
Eliminations | ||||||||
Operating Revenues | ||||||||
Total operating revenues | (1) | (2) | (10) | (8) | ||||
Operating Costs and Expenses | ||||||||
Cost of operations | (1) | (2) | (10) | (8) | ||||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||||
Impairment losses | 0 | 0 | 0 | |||||
Selling, general and administrative costs | 0 | 0 | 0 | 0 | ||||
Reorganization costs | 0 | 0 | 0 | |||||
Development costs | 0 | 0 | 0 | 0 | ||||
Total operating costs and expenses | (1) | (2) | (10) | (8) | ||||
Gain on sale of assets | 0 | 0 | ||||||
Operating Income/(Loss) | 0 | 0 | 0 | 0 | ||||
Other Income/(Expense) | ||||||||
Equity in earnings of consolidated subsidiaries | (540) | (557) | (1,391) | (1,298) | ||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Impairment losses on investments | 0 | 0 | 0 | |||||
Other income, net | 0 | 0 | 0 | 0 | ||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Interest expense | 0 | 0 | 0 | 0 | ||||
Total other income/(expense) | (540) | (557) | (1,391) | (1,298) | ||||
Income from Continuing Operations Before Income Taxes | (540) | (557) | (1,391) | (1,298) | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Income from Continuing Operations | (557) | (1,298) | ||||||
(Loss)/income from discontinued operations, net of income tax | 0 | 0 | ||||||
Net Income | (540) | (557) | (1,391) | (1,298) | ||||
Less: Net income attributable to redeemable noncontrolling interests | 0 | |||||||
Net Income Attributable to NRG Energy, Inc. | (540) | (557) | (1,391) | (1,298) | ||||
Guarantor Subsidiaries | ||||||||
Operating Revenues | ||||||||
Total operating revenues | 2,513 | 2,473 | 6,346 | 6,382 | ||||
Operating Costs and Expenses | ||||||||
Cost of operations | 1,796 | 1,728 | 4,357 | 4,676 | ||||
Depreciation and amortization | 72 | 52 | 232 | 157 | ||||
Impairment losses | 0 | 0 | 1 | |||||
Selling, general and administrative costs | 154 | 132 | 431 | 366 | ||||
Reorganization costs | 0 | 0 | 0 | |||||
Development costs | 0 | 0 | 0 | 0 | ||||
Total operating costs and expenses | 2,022 | 1,912 | 5,020 | 5,200 | ||||
Gain on sale of assets | 0 | 1 | ||||||
Operating Income/(Loss) | 491 | 561 | 1,326 | 1,183 | ||||
Other Income/(Expense) | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 20 | 6 | 32 | ||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Impairment losses on investments | 0 | 0 | 0 | |||||
Other income, net | 4 | 11 | 14 | 19 | ||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Interest expense | (3) | (4) | (12) | (11) | ||||
Total other income/(expense) | 1 | 27 | 8 | 40 | ||||
Income from Continuing Operations Before Income Taxes | 492 | 588 | 1,334 | 1,223 | ||||
Income tax expense | 0 | 0 | 0 | 0 | ||||
Income from Continuing Operations | 588 | 1,223 | ||||||
(Loss)/income from discontinued operations, net of income tax | 0 | 9 | ||||||
Net Income | 492 | 588 | 1,334 | 1,232 | ||||
Less: Net income attributable to redeemable noncontrolling interests | 0 | |||||||
Net Income Attributable to NRG Energy, Inc. | 492 | 588 | 1,334 | 1,232 | ||||
Non-Guarantor Subsidiaries | ||||||||
Operating Revenues | ||||||||
Total operating revenues | 297 | 525 | 730 | 1,252 | ||||
Operating Costs and Expenses | ||||||||
Cost of operations | 230 | 421 | 586 | 956 | ||||
Depreciation and amortization | 21 | 32 | 60 | 81 | ||||
Impairment losses | 29 | 29 | 0 | |||||
Selling, general and administrative costs | 7 | 28 | 19 | 56 | ||||
Reorganization costs | 0 | 0 | 0 | |||||
Development costs | (1) | 0 | 0 | 1 | ||||
Total operating costs and expenses | 286 | 481 | 694 | 1,094 | ||||
Gain on sale of assets | 1 | 1 | ||||||
Operating Income/(Loss) | 11 | 44 | 37 | 159 | ||||
Other Income/(Expense) | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Equity in earnings of unconsolidated affiliates | 36 | 29 | 37 | 8 | ||||
Impairment losses on investments | (101) | (18) | (101) | |||||
Other income, net | 2 | 1 | 6 | 10 | ||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Interest expense | 0 | (3) | (3) | (12) | ||||
Total other income/(expense) | 38 | (74) | 22 | (95) | ||||
Income from Continuing Operations Before Income Taxes | 49 | (30) | 59 | 64 | ||||
Income tax expense | 1 | 1 | 2 | 2 | ||||
Income from Continuing Operations | (31) | 62 | ||||||
(Loss)/income from discontinued operations, net of income tax | 0 | 5 | ||||||
Net Income | 48 | (31) | 57 | 67 | ||||
Less: Net income attributable to redeemable noncontrolling interests | 1 | |||||||
Net Income Attributable to NRG Energy, Inc. | 48 | (31) | 57 | 66 | ||||
NRG Energy, Inc. (Note Issuer) | ||||||||
Operating Revenues | ||||||||
Total operating revenues | 0 | 0 | 0 | 0 | ||||
Operating Costs and Expenses | ||||||||
Cost of operations | 9 | 6 | (8) | 25 | ||||
Depreciation and amortization | 6 | 7 | 26 | 23 | ||||
Impairment losses | 0 | 0 | 0 | |||||
Selling, general and administrative costs | 92 | 50 | 220 | 193 | ||||
Reorganization costs | 1 | 3 | 16 | |||||
Development costs | 2 | 1 | 6 | 4 | ||||
Total operating costs and expenses | 109 | 65 | 247 | 261 | ||||
Gain on sale of assets | 5 | 0 | ||||||
Operating Income/(Loss) | (109) | (65) | (242) | (261) | ||||
Other Income/(Expense) | ||||||||
Equity in earnings of consolidated subsidiaries | 540 | 537 | 1,385 | 1,266 | ||||
Equity in earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 | ||||
Impairment losses on investments | (6) | 0 | (6) | |||||
Other income, net | 5 | 5 | 32 | 20 | ||||
Loss on debt extinguishment, net | (1) | (47) | ||||||
Interest expense | (96) | (92) | (277) | (295) | ||||
Total other income/(expense) | 449 | 444 | 1,139 | 938 | ||||
Income from Continuing Operations Before Income Taxes | 340 | 379 | 897 | 677 | ||||
Income tax expense | 91 | 5 | 214 | 7 | ||||
Income from Continuing Operations | 374 | 670 | ||||||
(Loss)/income from discontinued operations, net of income tax | (2) | 385 | ||||||
Net Income | 249 | 372 | 683 | 1,055 | ||||
Less: Net income attributable to redeemable noncontrolling interests | 0 | |||||||
Net Income Attributable to NRG Energy, Inc. | $ 249 | $ 372 | $ 683 | $ 1,055 |
Condensed Consolidating Finan_5
Condensed Consolidating Financial Information - CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Income | $ 249 | $ 372 | $ 683 | $ 1,056 | ||||
Other Comprehensive Income | ||||||||
Foreign currency translation adjustments, net | 4 | (4) | 2 | (4) | ||||
Available-for-sale securities | 0 | (14) | 0 | (13) | ||||
Defined benefit plans, net | 0 | (41) | 0 | (47) | ||||
Other comprehensive income/(loss) | 4 | $ 13 | $ (15) | (59) | $ (3) | $ (2) | 2 | (64) |
Comprehensive Income/(Loss) | 253 | 313 | 685 | 992 | ||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | 0 | 0 | 1 | ||||
Comprehensive Income Attributable to NRG Energy, Inc. | 253 | 313 | 685 | 991 | ||||
Eliminations | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Income | (540) | (557) | (1,391) | (1,298) | ||||
Other Comprehensive Income | ||||||||
Foreign currency translation adjustments, net | (8) | 9 | (3) | 9 | ||||
Available-for-sale securities | 0 | 0 | ||||||
Defined benefit plans, net | (2) | 40 | (5) | 40 | ||||
Other comprehensive income/(loss) | (10) | 49 | (8) | 49 | ||||
Comprehensive Income/(Loss) | (508) | (1,249) | ||||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | |||||||
Comprehensive Income Attributable to NRG Energy, Inc. | (550) | (1,399) | (1,249) | |||||
Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Income | 492 | 588 | 1,334 | 1,232 | ||||
Other Comprehensive Income | ||||||||
Foreign currency translation adjustments, net | 5 | (5) | 2 | (5) | ||||
Available-for-sale securities | 0 | 0 | ||||||
Defined benefit plans, net | 2 | (40) | 5 | (40) | ||||
Other comprehensive income/(loss) | 7 | (45) | 7 | (45) | ||||
Comprehensive Income/(Loss) | 543 | 1,187 | ||||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | |||||||
Comprehensive Income Attributable to NRG Energy, Inc. | 499 | 1,341 | 1,187 | |||||
Non-Guarantor Subsidiaries | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Income | 48 | (31) | 57 | 67 | ||||
Other Comprehensive Income | ||||||||
Foreign currency translation adjustments, net | 3 | (4) | 1 | (4) | ||||
Available-for-sale securities | 0 | 0 | ||||||
Defined benefit plans, net | 0 | 0 | 0 | 0 | ||||
Other comprehensive income/(loss) | 3 | (4) | 1 | (4) | ||||
Comprehensive Income/(Loss) | (35) | 63 | ||||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 1 | |||||||
Comprehensive Income Attributable to NRG Energy, Inc. | 51 | 58 | 62 | |||||
NRG Energy, Inc. (Note Issuer) | ||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||
Net Income | 249 | 372 | 683 | 1,055 | ||||
Other Comprehensive Income | ||||||||
Foreign currency translation adjustments, net | 4 | (4) | 2 | (4) | ||||
Available-for-sale securities | (14) | (13) | ||||||
Defined benefit plans, net | 0 | (41) | 0 | (47) | ||||
Other comprehensive income/(loss) | 4 | (59) | 2 | (64) | ||||
Comprehensive Income/(Loss) | $ 313 | 991 | ||||||
Less: Comprehensive income attributable to redeemable noncontrolling interest | 0 | |||||||
Comprehensive Income Attributable to NRG Energy, Inc. | $ 253 | $ 685 | $ 991 |
Condensed Consolidating Finan_6
Condensed Consolidating Financial Information - CONSOLIDATING BALANCE SHEETS (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||||||||
Cash and cash equivalents | $ 697 | $ 345 | ||||||
Funds deposited by counterparties | 15 | 32 | ||||||
Restricted cash | 6 | 8 | ||||||
Accounts receivable, net | 1,126 | 1,025 | ||||||
Inventory | 330 | 383 | ||||||
Derivative instruments | 578 | 860 | ||||||
Cash collateral paid in support of energy risk management activities | 77 | 190 | ||||||
Prepayments and other current assets | 258 | 245 | ||||||
Total current assets | 3,087 | 3,088 | ||||||
Property, plant and equipment, net | 2,573 | 2,593 | ||||||
Other Assets | ||||||||
Investment in subsidiaries | 0 | 0 | ||||||
Equity investments in affiliates | 376 | 388 | ||||||
Operating lease right-of-use assets, net | 345 | 464 | ||||||
Goodwill | 579 | 579 | ||||||
Intangible assets, net | 721 | 789 | ||||||
Nuclear decommissioning trust fund | 828 | 794 | ||||||
Derivative instruments | 315 | 310 | ||||||
Deferred income taxes | 3,087 | 3,286 | ||||||
Other non-current assets | 314 | 240 | ||||||
Total other assets | 6,565 | 6,850 | ||||||
Total Assets | 12,225 | 12,531 | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 3 | 88 | ||||||
Current portion of operating lease liabilities | 69 | 73 | ||||||
Accounts payable | 753 | 722 | ||||||
Derivative instruments | 495 | 781 | ||||||
Cash collateral received in support of energy risk management activities | 15 | 32 | ||||||
Accrued expenses and other current liabilities | 651 | 663 | ||||||
Total current liabilities | 1,986 | 2,359 | ||||||
Other Liabilities | ||||||||
Long-term debt | 5,792 | 5,803 | ||||||
Non-current operating lease liabilities | 297 | 483 | ||||||
Nuclear decommissioning reserve | 311 | 298 | ||||||
Nuclear decommissioning trust liability | 508 | 487 | ||||||
Derivative instruments | 318 | 322 | ||||||
Deferred income taxes | 17 | 17 | ||||||
Other non-current liabilities | 1,062 | 1,084 | ||||||
Total other liabilities | 8,305 | 8,494 | ||||||
Total Liabilities | 10,291 | 10,853 | ||||||
Redeemable noncontrolling interest in subsidiaries | 0 | 20 | ||||||
Total Stockholders' Equity | 1,934 | $ 1,750 | $ 1,536 | 1,658 | $ (1,571) | $ (1,648) | $ (1,538) | $ (1,234) |
Total Liabilities and Stockholders' Equity | 12,225 | 12,531 | ||||||
Eliminations | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Funds deposited by counterparties | 0 | 0 | ||||||
Restricted cash | 0 | 0 | ||||||
Accounts receivable, net | (1,363) | (740) | ||||||
Inventory | 0 | 0 | ||||||
Derivative instruments | (18) | (41) | ||||||
Cash collateral paid in support of energy risk management activities | 0 | 0 | ||||||
Prepayments and other current assets | 0 | 0 | ||||||
Total current assets | (1,381) | (781) | ||||||
Property, plant and equipment, net | 0 | 0 | ||||||
Other Assets | ||||||||
Investment in subsidiaries | (5,009) | (5,495) | ||||||
Equity investments in affiliates | 0 | 0 | ||||||
Operating lease right-of-use assets, net | 0 | 0 | ||||||
Goodwill | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Nuclear decommissioning trust fund | 0 | 0 | ||||||
Derivative instruments | (10) | (13) | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other non-current assets | 0 | 0 | ||||||
Total other assets | (5,019) | (5,508) | ||||||
Total Assets | (6,400) | (6,289) | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 0 | 0 | ||||||
Current portion of operating lease liabilities | 0 | 0 | ||||||
Accounts payable | (1,363) | (740) | ||||||
Derivative instruments | (18) | (41) | ||||||
Cash collateral received in support of energy risk management activities | 0 | 0 | ||||||
Accrued expenses and other current liabilities | 0 | 0 | ||||||
Total current liabilities | (1,381) | (781) | ||||||
Other Liabilities | ||||||||
Long-term debt | 0 | 0 | ||||||
Non-current operating lease liabilities | 0 | 0 | ||||||
Nuclear decommissioning reserve | 0 | 0 | ||||||
Nuclear decommissioning trust liability | 0 | 0 | ||||||
Derivative instruments | (10) | (13) | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other non-current liabilities | 0 | 0 | ||||||
Total other liabilities | (10) | (13) | ||||||
Total Liabilities | (1,391) | (794) | ||||||
Redeemable noncontrolling interest in subsidiaries | 0 | |||||||
Total Stockholders' Equity | (5,009) | (5,495) | ||||||
Total Liabilities and Stockholders' Equity | (6,400) | (6,289) | ||||||
Guarantor Subsidiaries | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 0 | 0 | ||||||
Funds deposited by counterparties | 15 | 32 | ||||||
Restricted cash | 5 | 5 | ||||||
Accounts receivable, net | 650 | 1,293 | ||||||
Inventory | 253 | 272 | ||||||
Derivative instruments | 582 | 856 | ||||||
Cash collateral paid in support of energy risk management activities | 74 | 182 | ||||||
Prepayments and other current assets | 238 | 170 | ||||||
Total current assets | 1,817 | 2,810 | ||||||
Property, plant and equipment, net | 1,270 | 1,483 | ||||||
Other Assets | ||||||||
Investment in subsidiaries | 28 | 710 | ||||||
Equity investments in affiliates | 0 | 0 | ||||||
Operating lease right-of-use assets, net | 68 | 81 | ||||||
Goodwill | 400 | 359 | ||||||
Intangible assets, net | 684 | 375 | ||||||
Nuclear decommissioning trust fund | 828 | 794 | ||||||
Derivative instruments | 315 | 308 | ||||||
Deferred income taxes | 435 | 421 | ||||||
Other non-current assets | 168 | 145 | ||||||
Total other assets | 2,926 | 3,193 | ||||||
Total Assets | 6,013 | 7,486 | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 3 | 0 | ||||||
Current portion of operating lease liabilities | 18 | 20 | ||||||
Accounts payable | 933 | 918 | ||||||
Derivative instruments | 505 | 797 | ||||||
Cash collateral received in support of energy risk management activities | 15 | 32 | ||||||
Accrued expenses and other current liabilities | 275 | 280 | ||||||
Total current liabilities | 1,749 | 2,047 | ||||||
Other Liabilities | ||||||||
Long-term debt | 245 | 302 | ||||||
Non-current operating lease liabilities | 56 | 64 | ||||||
Nuclear decommissioning reserve | 311 | 298 | ||||||
Nuclear decommissioning trust liability | 508 | 487 | ||||||
Derivative instruments | 326 | 334 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other non-current liabilities | 307 | 399 | ||||||
Total other liabilities | 1,753 | 1,884 | ||||||
Total Liabilities | 3,502 | 3,931 | ||||||
Redeemable noncontrolling interest in subsidiaries | 0 | |||||||
Total Stockholders' Equity | 2,511 | 3,555 | ||||||
Total Liabilities and Stockholders' Equity | 6,013 | 7,486 | ||||||
Non-Guarantor Subsidiaries | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 23 | 20 | ||||||
Funds deposited by counterparties | 0 | 0 | ||||||
Restricted cash | 0 | 1 | ||||||
Accounts receivable, net | 1,034 | 239 | ||||||
Inventory | 77 | 111 | ||||||
Derivative instruments | 14 | 45 | ||||||
Cash collateral paid in support of energy risk management activities | 3 | 8 | ||||||
Prepayments and other current assets | 16 | 8 | ||||||
Total current assets | 1,167 | 432 | ||||||
Property, plant and equipment, net | 1,159 | 952 | ||||||
Other Assets | ||||||||
Investment in subsidiaries | 0 | 0 | ||||||
Equity investments in affiliates | 376 | 388 | ||||||
Operating lease right-of-use assets, net | 167 | 261 | ||||||
Goodwill | 179 | 220 | ||||||
Intangible assets, net | 37 | 414 | ||||||
Nuclear decommissioning trust fund | 0 | 0 | ||||||
Derivative instruments | 10 | 15 | ||||||
Deferred income taxes | (32) | (19) | ||||||
Other non-current assets | 110 | 30 | ||||||
Total other assets | 847 | 1,309 | ||||||
Total Assets | 3,173 | 2,693 | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 0 | 5 | ||||||
Current portion of operating lease liabilities | 33 | 32 | ||||||
Accounts payable | 144 | 141 | ||||||
Derivative instruments | 8 | 25 | ||||||
Cash collateral received in support of energy risk management activities | 0 | 0 | ||||||
Accrued expenses and other current liabilities | 71 | 44 | ||||||
Total current liabilities | 256 | 247 | ||||||
Other Liabilities | ||||||||
Long-term debt | 0 | 28 | ||||||
Non-current operating lease liabilities | 134 | 301 | ||||||
Nuclear decommissioning reserve | 0 | 0 | ||||||
Nuclear decommissioning trust liability | 0 | 0 | ||||||
Derivative instruments | 2 | 1 | ||||||
Deferred income taxes | 17 | 17 | ||||||
Other non-current liabilities | 266 | 153 | ||||||
Total other liabilities | 419 | 500 | ||||||
Total Liabilities | 675 | 747 | ||||||
Redeemable noncontrolling interest in subsidiaries | 20 | |||||||
Total Stockholders' Equity | 2,498 | 1,926 | ||||||
Total Liabilities and Stockholders' Equity | 3,173 | 2,693 | ||||||
NRG Energy, Inc. (Note Issuer) | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | 674 | 325 | ||||||
Funds deposited by counterparties | 0 | 0 | ||||||
Restricted cash | 1 | 2 | ||||||
Accounts receivable, net | 805 | 233 | ||||||
Inventory | 0 | 0 | ||||||
Derivative instruments | 0 | 0 | ||||||
Cash collateral paid in support of energy risk management activities | 0 | 0 | ||||||
Prepayments and other current assets | 4 | 67 | ||||||
Total current assets | 1,484 | 627 | ||||||
Property, plant and equipment, net | 144 | 158 | ||||||
Other Assets | ||||||||
Investment in subsidiaries | 4,981 | 4,785 | ||||||
Equity investments in affiliates | 0 | 0 | ||||||
Operating lease right-of-use assets, net | 110 | 122 | ||||||
Goodwill | 0 | 0 | ||||||
Intangible assets, net | 0 | 0 | ||||||
Nuclear decommissioning trust fund | 0 | 0 | ||||||
Derivative instruments | 0 | 0 | ||||||
Deferred income taxes | 2,684 | 2,884 | ||||||
Other non-current assets | 36 | 65 | ||||||
Total other assets | 7,811 | 7,856 | ||||||
Total Assets | 9,439 | 8,641 | ||||||
Current Liabilities | ||||||||
Current portion of long-term debt | 0 | 83 | ||||||
Current portion of operating lease liabilities | 18 | 21 | ||||||
Accounts payable | 1,039 | 403 | ||||||
Derivative instruments | 0 | 0 | ||||||
Cash collateral received in support of energy risk management activities | 0 | 0 | ||||||
Accrued expenses and other current liabilities | 305 | 339 | ||||||
Total current liabilities | 1,362 | 846 | ||||||
Other Liabilities | ||||||||
Long-term debt | 5,547 | 5,473 | ||||||
Non-current operating lease liabilities | 107 | 118 | ||||||
Nuclear decommissioning reserve | 0 | 0 | ||||||
Nuclear decommissioning trust liability | 0 | 0 | ||||||
Derivative instruments | 0 | 0 | ||||||
Deferred income taxes | 0 | 0 | ||||||
Other non-current liabilities | 489 | 532 | ||||||
Total other liabilities | 6,143 | 6,123 | ||||||
Total Liabilities | 7,505 | 6,969 | ||||||
Redeemable noncontrolling interest in subsidiaries | 0 | |||||||
Total Stockholders' Equity | 1,934 | 1,672 | ||||||
Total Liabilities and Stockholders' Equity | $ 9,439 | $ 8,641 |
Condensed Consolidating Finan_7
Condensed Consolidating Financial Information - CONSOLIDATING STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Cash Flows from Operating Activities | ||||||||
Net income attributable to NRG Energy, Inc. | $ 249 | $ 313 | $ 121 | $ 372 | $ 201 | $ 482 | $ 683 | $ 1,055 |
Net Income | 249 | 372 | 683 | 1,056 | ||||
Income from discontinued operations | 0 | (2) | 0 | 399 | ||||
Income from continuing operations | 249 | 374 | 683 | 657 | ||||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||||||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | 6 | (5) | ||||||
Depreciation and amortization | 318 | 261 | ||||||
Accretion of asset retirement obligations | 46 | 31 | ||||||
Provision for credit losses | 26 | 74 | 87 | |||||
Amortization of nuclear fuel | 40 | 40 | ||||||
Amortization of financing costs and debt discount/premiums | 23 | 20 | ||||||
Loss on debt extinguishment, net | 1 | 47 | ||||||
Amortization of emissions allowances and energy credits | 60 | 28 | ||||||
Amortization of unearned equity compensation | 17 | 15 | ||||||
Net loss on sale of assets and disposal of assets | (22) | (20) | ||||||
Impairment losses | 47 | 108 | ||||||
Changes in derivative instruments | (7) | 36 | ||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 202 | (3) | ||||||
Changes in collateral deposits in support of energy risk management activities | 96 | 129 | ||||||
Changes in nuclear decommissioning trust liability | 39 | 27 | ||||||
Changes in other working capital | (237) | (569) | ||||||
Cash provided/(used) by continuing operations | 1,386 | 889 | ||||||
Cash provided/(used) by discontinued operations | 0 | 8 | ||||||
Net Cash Provided/(Used) by Operating Activities | 1,386 | 897 | ||||||
Cash Flows from Investing Activities | ||||||||
Intercompany dividends | 0 | 0 | ||||||
Payments for acquisitions of businesses | (277) | (348) | ||||||
Capital expenditures | (167) | (183) | ||||||
Decrease in notes receivable | 0 | 2 | ||||||
Net purchases of /proceeds from emission allowances | (15) | 14 | ||||||
Investments in nuclear decommissioning trust fund securities | (360) | (295) | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 318 | 271 | ||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 15 | 1,293 | ||||||
Net distributions from investments in unconsolidated affiliates | 2 | (94) | ||||||
Contributions to discontinued operations | 0 | (44) | ||||||
Cash (used)/provided by continuing operations | (484) | 616 | ||||||
Cash used by discontinued operations | 0 | (2) | ||||||
Net Cash (Used)/Provided by Investing Activities | (484) | 614 | ||||||
Cash Flows from Financing Activities | ||||||||
Intercompany dividends and transfers | 0 | 0 | ||||||
Payments of dividends to common stockholders | (221) | (24) | ||||||
Payments for share repurchase activity | (229) | (1,322) | ||||||
Payments for debt extinguishment costs | 0 | (24) | ||||||
Purchase of and distributions to noncontrolling interests from subsidiaries | (2) | (1) | ||||||
Proceeds from issuance of common stock | 1 | 3 | ||||||
Proceeds from issuance of long-term debt | 59 | 1,833 | ||||||
Payments of debt issuance costs | (24) | (34) | ||||||
Repayments of long-term debt | (62) | (2,487) | ||||||
Net (repayments)/proceeds of Revolving Credit Facility | (83) | 215 | ||||||
Other | (6) | 0 | ||||||
Cash used by continuing operations | (567) | (1,841) | ||||||
Cash provided by discontinued operations | 0 | 43 | ||||||
Net Cash Used by Financing Activities | (567) | (1,798) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2) | 0 | ||||||
Change in Cash from discontinued operations | 0 | 49 | ||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 333 | (336) | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 385 | 613 | 385 | 613 | ||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | 718 | 277 | 718 | 277 | ||||
Eliminations | ||||||||
Cash Flows from Operating Activities | ||||||||
Net income attributable to NRG Energy, Inc. | (540) | (557) | (1,391) | (1,298) | ||||
Net Income | (540) | (557) | (1,391) | (1,298) | ||||
Income from discontinued operations | 0 | 0 | ||||||
Income from continuing operations | (557) | (1,298) | ||||||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||||||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | 1,391 | 1,298 | ||||||
Depreciation and amortization | 0 | 0 | ||||||
Accretion of asset retirement obligations | 0 | 0 | ||||||
Provision for credit losses | 0 | 0 | ||||||
Amortization of nuclear fuel | 0 | 0 | ||||||
Amortization of financing costs and debt discount/premiums | 0 | 0 | ||||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Amortization of emissions allowances and energy credits | 0 | 0 | ||||||
Amortization of unearned equity compensation | 0 | 0 | ||||||
Net loss on sale of assets and disposal of assets | 0 | 0 | ||||||
Impairment losses | 0 | 0 | ||||||
Changes in derivative instruments | 0 | 0 | ||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 0 | 0 | ||||||
Changes in collateral deposits in support of energy risk management activities | 0 | 0 | ||||||
Changes in nuclear decommissioning trust liability | 0 | 0 | ||||||
Changes in other working capital | 0 | 0 | ||||||
Cash provided/(used) by continuing operations | 0 | |||||||
Cash provided/(used) by discontinued operations | 0 | |||||||
Net Cash Provided/(Used) by Operating Activities | 0 | 0 | ||||||
Cash Flows from Investing Activities | ||||||||
Intercompany dividends | (2,591) | (3,866) | ||||||
Payments for acquisitions of businesses | 0 | 0 | ||||||
Capital expenditures | 0 | 0 | ||||||
Decrease in notes receivable | 0 | |||||||
Net purchases of /proceeds from emission allowances | 0 | 0 | ||||||
Investments in nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 0 | 0 | ||||||
Net distributions from investments in unconsolidated affiliates | 0 | 0 | ||||||
Contributions to discontinued operations | 0 | |||||||
Cash (used)/provided by continuing operations | (3,866) | |||||||
Cash used by discontinued operations | 0 | |||||||
Net Cash (Used)/Provided by Investing Activities | (2,591) | (3,866) | ||||||
Cash Flows from Financing Activities | ||||||||
Intercompany dividends and transfers | 2,591 | 3,866 | ||||||
Payments of dividends to common stockholders | 0 | 0 | ||||||
Payments for share repurchase activity | 0 | 0 | ||||||
Payments for debt extinguishment costs | 0 | |||||||
Purchase of and distributions to noncontrolling interests from subsidiaries | 0 | 0 | ||||||
Proceeds from issuance of common stock | 0 | 0 | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | ||||||
Payments of debt issuance costs | 0 | 0 | ||||||
Repayments of long-term debt | 0 | 0 | ||||||
Net (repayments)/proceeds of Revolving Credit Facility | 0 | 0 | ||||||
Other | 0 | |||||||
Cash used by continuing operations | 3,866 | |||||||
Cash provided by discontinued operations | 0 | |||||||
Net Cash Used by Financing Activities | 2,591 | 3,866 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | |||||||
Change in Cash from discontinued operations | 0 | |||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 0 | 0 | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 0 | 0 | 0 | 0 | ||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | 0 | 0 | 0 | 0 | ||||
Guarantor Subsidiaries | ||||||||
Cash Flows from Operating Activities | ||||||||
Net income attributable to NRG Energy, Inc. | 492 | 588 | 1,334 | 1,232 | ||||
Net Income | 492 | 588 | 1,334 | 1,232 | ||||
Income from discontinued operations | 0 | 9 | ||||||
Income from continuing operations | 588 | 1,223 | ||||||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||||||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | (6) | (32) | ||||||
Depreciation and amortization | 232 | 156 | ||||||
Accretion of asset retirement obligations | 19 | 25 | ||||||
Provision for credit losses | 66 | 72 | ||||||
Amortization of nuclear fuel | 40 | 40 | ||||||
Amortization of financing costs and debt discount/premiums | 0 | 0 | ||||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Amortization of emissions allowances and energy credits | 46 | 21 | ||||||
Amortization of unearned equity compensation | 0 | 0 | ||||||
Net loss on sale of assets and disposal of assets | (16) | (25) | ||||||
Impairment losses | 0 | 1 | ||||||
Changes in derivative instruments | (27) | 10 | ||||||
Changes in deferred income taxes and liability for uncertain tax benefits | (52) | 0 | ||||||
Changes in collateral deposits in support of energy risk management activities | 91 | 136 | ||||||
Changes in nuclear decommissioning trust liability | 39 | 27 | ||||||
Changes in other working capital | 355 | (401) | ||||||
Cash provided/(used) by continuing operations | 1,253 | |||||||
Cash provided/(used) by discontinued operations | 17 | |||||||
Net Cash Provided/(Used) by Operating Activities | 2,121 | 1,270 | ||||||
Cash Flows from Investing Activities | ||||||||
Intercompany dividends | 0 | 0 | ||||||
Payments for acquisitions of businesses | (15) | (348) | ||||||
Capital expenditures | (115) | (135) | ||||||
Decrease in notes receivable | 0 | |||||||
Net purchases of /proceeds from emission allowances | (15) | 14 | ||||||
Investments in nuclear decommissioning trust fund securities | (360) | (295) | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 318 | 271 | ||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 8 | 1 | ||||||
Net distributions from investments in unconsolidated affiliates | 0 | 0 | ||||||
Contributions to discontinued operations | 0 | |||||||
Cash (used)/provided by continuing operations | (492) | |||||||
Cash used by discontinued operations | 0 | |||||||
Net Cash (Used)/Provided by Investing Activities | (179) | (492) | ||||||
Cash Flows from Financing Activities | ||||||||
Intercompany dividends and transfers | (1,894) | (824) | ||||||
Payments of dividends to common stockholders | 0 | 0 | ||||||
Payments for share repurchase activity | 0 | 0 | ||||||
Payments for debt extinguishment costs | 0 | |||||||
Purchase of and distributions to noncontrolling interests from subsidiaries | 0 | 0 | ||||||
Proceeds from issuance of common stock | 0 | 0 | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | ||||||
Payments of debt issuance costs | 0 | 0 | ||||||
Repayments of long-term debt | (59) | 0 | ||||||
Net (repayments)/proceeds of Revolving Credit Facility | 0 | 0 | ||||||
Other | (6) | |||||||
Cash used by continuing operations | (824) | |||||||
Cash provided by discontinued operations | 0 | |||||||
Net Cash Used by Financing Activities | (1,959) | (824) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | |||||||
Change in Cash from discontinued operations | 17 | |||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | (17) | (63) | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 37 | 95 | 37 | 95 | ||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | 20 | 32 | 20 | 32 | ||||
Non-Guarantor Subsidiaries | ||||||||
Cash Flows from Operating Activities | ||||||||
Net income attributable to NRG Energy, Inc. | 48 | (31) | 57 | 66 | ||||
Net Income | 48 | (31) | 57 | 67 | ||||
Income from discontinued operations | 0 | 5 | ||||||
Income from continuing operations | (31) | 62 | ||||||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||||||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | 6 | (5) | ||||||
Depreciation and amortization | 60 | 82 | ||||||
Accretion of asset retirement obligations | 27 | 6 | ||||||
Provision for credit losses | 8 | 11 | ||||||
Amortization of nuclear fuel | 0 | 0 | ||||||
Amortization of financing costs and debt discount/premiums | 0 | 0 | ||||||
Loss on debt extinguishment, net | 0 | 0 | ||||||
Amortization of emissions allowances and energy credits | 14 | 7 | ||||||
Amortization of unearned equity compensation | 0 | 0 | ||||||
Net loss on sale of assets and disposal of assets | (1) | 2 | ||||||
Impairment losses | 47 | 101 | ||||||
Changes in derivative instruments | 20 | (12) | ||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 11 | (1) | ||||||
Changes in collateral deposits in support of energy risk management activities | 5 | (7) | ||||||
Changes in nuclear decommissioning trust liability | 0 | 0 | ||||||
Changes in other working capital | (923) | (123) | ||||||
Cash provided/(used) by continuing operations | 123 | |||||||
Cash provided/(used) by discontinued operations | (9) | |||||||
Net Cash Provided/(Used) by Operating Activities | (669) | 114 | ||||||
Cash Flows from Investing Activities | ||||||||
Intercompany dividends | 0 | 0 | ||||||
Payments for acquisitions of businesses | (262) | 0 | ||||||
Capital expenditures | (28) | (23) | ||||||
Decrease in notes receivable | 0 | |||||||
Net purchases of /proceeds from emission allowances | 0 | 0 | ||||||
Investments in nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 2 | 400 | ||||||
Net distributions from investments in unconsolidated affiliates | 2 | (94) | ||||||
Contributions to discontinued operations | (44) | |||||||
Cash (used)/provided by continuing operations | 239 | |||||||
Cash used by discontinued operations | (2) | |||||||
Net Cash (Used)/Provided by Investing Activities | (286) | 237 | ||||||
Cash Flows from Financing Activities | ||||||||
Intercompany dividends and transfers | 964 | (317) | ||||||
Payments of dividends to common stockholders | 0 | 0 | ||||||
Payments for share repurchase activity | 0 | 0 | ||||||
Payments for debt extinguishment costs | 0 | |||||||
Purchase of and distributions to noncontrolling interests from subsidiaries | (2) | (1) | ||||||
Proceeds from issuance of common stock | 0 | 0 | ||||||
Proceeds from issuance of long-term debt | 0 | 0 | ||||||
Payments of debt issuance costs | 0 | 0 | ||||||
Repayments of long-term debt | (3) | (55) | ||||||
Net (repayments)/proceeds of Revolving Credit Facility | 0 | 0 | ||||||
Other | 0 | |||||||
Cash used by continuing operations | (373) | |||||||
Cash provided by discontinued operations | 43 | |||||||
Net Cash Used by Financing Activities | 959 | (330) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2) | |||||||
Change in Cash from discontinued operations | 32 | |||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 2 | (11) | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 21 | 38 | 21 | 38 | ||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | 23 | 27 | 23 | 27 | ||||
NRG Energy, Inc. (Note Issuer) | ||||||||
Cash Flows from Operating Activities | ||||||||
Net income attributable to NRG Energy, Inc. | 249 | 372 | 683 | 1,055 | ||||
Net Income | 249 | 372 | 683 | 1,055 | ||||
Income from discontinued operations | (2) | 385 | ||||||
Income from continuing operations | 374 | 670 | ||||||
Adjustments to reconcile net income/(loss) to cash provided by operating activities: | ||||||||
Distributions from and equity in losses/(earnings) of unconsolidated affiliates | (1,385) | (1,266) | ||||||
Depreciation and amortization | 26 | 23 | ||||||
Accretion of asset retirement obligations | 0 | 0 | ||||||
Provision for credit losses | 0 | 4 | ||||||
Amortization of nuclear fuel | 0 | 0 | ||||||
Amortization of financing costs and debt discount/premiums | 23 | 20 | ||||||
Loss on debt extinguishment, net | 1 | 47 | ||||||
Amortization of emissions allowances and energy credits | 0 | 0 | ||||||
Amortization of unearned equity compensation | 17 | 15 | ||||||
Net loss on sale of assets and disposal of assets | (5) | 3 | ||||||
Impairment losses | 0 | 6 | ||||||
Changes in derivative instruments | 0 | 38 | ||||||
Changes in deferred income taxes and liability for uncertain tax benefits | 243 | (2) | ||||||
Changes in collateral deposits in support of energy risk management activities | 0 | 0 | ||||||
Changes in nuclear decommissioning trust liability | 0 | 0 | ||||||
Changes in other working capital | 331 | (45) | ||||||
Cash provided/(used) by continuing operations | (487) | |||||||
Cash provided/(used) by discontinued operations | 0 | |||||||
Net Cash Provided/(Used) by Operating Activities | (66) | (487) | ||||||
Cash Flows from Investing Activities | ||||||||
Intercompany dividends | 2,591 | 3,866 | ||||||
Payments for acquisitions of businesses | 0 | 0 | ||||||
Capital expenditures | (24) | (25) | ||||||
Decrease in notes receivable | 2 | |||||||
Net purchases of /proceeds from emission allowances | 0 | 0 | ||||||
Investments in nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from the sale of nuclear decommissioning trust fund securities | 0 | 0 | ||||||
Proceeds from sale of assets, net of cash disposed and sale of discontinued operations, net of fees | 5 | 892 | ||||||
Net distributions from investments in unconsolidated affiliates | 0 | |||||||
Contributions to discontinued operations | 0 | |||||||
Cash (used)/provided by continuing operations | 4,735 | |||||||
Cash used by discontinued operations | 0 | |||||||
Net Cash (Used)/Provided by Investing Activities | 2,572 | 4,735 | ||||||
Cash Flows from Financing Activities | ||||||||
Intercompany dividends and transfers | (1,661) | (2,725) | ||||||
Payments of dividends to common stockholders | (221) | (24) | ||||||
Payments for share repurchase activity | (229) | (1,322) | ||||||
Payments for debt extinguishment costs | (24) | |||||||
Purchase of and distributions to noncontrolling interests from subsidiaries | 0 | 0 | ||||||
Proceeds from issuance of common stock | 1 | 3 | ||||||
Proceeds from issuance of long-term debt | 59 | 1,833 | ||||||
Payments of debt issuance costs | (24) | (34) | ||||||
Repayments of long-term debt | 0 | (2,432) | ||||||
Net (repayments)/proceeds of Revolving Credit Facility | (83) | 215 | ||||||
Other | 0 | |||||||
Cash used by continuing operations | (4,510) | |||||||
Cash provided by discontinued operations | 0 | |||||||
Net Cash Used by Financing Activities | (2,158) | (4,510) | ||||||
Effect of exchange rate changes on cash and cash equivalents | 0 | |||||||
Change in Cash from discontinued operations | 0 | |||||||
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 348 | (262) | ||||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | $ 327 | $ 480 | 327 | 480 | ||||
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ 675 | $ 218 | $ 675 | $ 218 |
Receivables Securitization an_2
Receivables Securitization and Repurchase Facility - (Details) - Secured Debt - USD ($) | Sep. 22, 2020 | Sep. 30, 2020 |
Receivables Facility | ||
Debt Instrument [Line Items] | ||
Borrowing (up to) | $ 750,000,000 | |
Weighted average interest rate | 0.489% | |
Borrowing outstanding | $ 0 | |
Receivables Facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit issued | 179,000,000 | |
Repurchase Facility | ||
Debt Instrument [Line Items] | ||
Borrowing (up to) | 75,000,000 | |
Borrowing outstanding | $ 0 | |
Commitment fee | $ 0 | |
Repurchase Facility | LIBOR | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 1.25% |