EXHIBIT 12.01
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
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| For the Year Ended December 31, |
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| 2016 |
| 2015 |
| 2014 |
| 2013(a) |
| 2012(a) |
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| (in millions except ratio) |
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Earnings: |
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(Loss)/income from continuing operations before income tax |
| $ | (875 | ) | $ | (5,094 | ) | $ | 135 |
| $ | (634 | ) | $ | (12 | ) |
Less: |
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Distributions and equity in earnings of unconsolidated affiliates |
| 54 |
| 37 |
| 49 |
| 84 |
| 2 |
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Impairment charge on equity method investment |
| 268 |
| 56 |
| — |
| 99 |
| 2 |
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Capitalized interest |
| (43 | ) | (30 | ) | (29 | ) | (130 | ) | (140 | ) | |||||
Add: |
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Fixed charges |
| 1,121 |
| 1,173 |
| 1,255 |
| 1,037 |
| 864 |
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Amortization of capitalized interest |
| 21 |
| 21 |
| 20 |
| 14 |
| 11 |
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Total Earnings: |
| $ | 546 |
| $ | (3,837 | ) | $ | 1,430 |
| $ | 470 |
| $ | 727 |
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Fixed Charges: |
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Interest expense |
| $ | 1,057 |
| $ | 1,139 |
| $ | 1,228 |
| $ | 932 |
| $ | 671 |
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Interest capitalized |
| 43 |
| 30 |
| 29 |
| 130 |
| 140 |
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Amortization of debt issuance costs |
| 38 |
| 37 |
| 35 |
| 33 |
| 32 |
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Amortization of debt (premium)/discount |
| (34 | ) | (48 | ) | (50 | ) | (67 | ) | 9 |
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Approximation of interest in rental expense |
| 17 |
| 15 |
| 13 |
| 9 |
| 12 |
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Total Fixed Charges: |
| $ | 1,121 |
| $ | 1,173 |
| $ | 1,255 |
| $ | 1,037 |
| $ | 864 |
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Ratio of Earnings to Combined Fixed Charges |
| 0.49 |
| (3.27 | ) | 1.14 |
| 0.45 |
| 0.84 |
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(a) The ratio coverage for the year ended December 31, 2016, 2015, 2013, and 2012 was less than 1:1. NRG would have needed to generate additional earnings of $575 million, $5,010 million, $567 million, and $137 million, respectively, to achieve a ratio coverage of 1:1 for those years.