Document and Entity Information
Document and Entity Information (USD $) | |||
3 Months Ended
Mar. 31, 2010 | May. 05, 2010
| Jun. 30, 2009
| |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | NRG ENERGY, INC. | ||
Entity Central Index Key | 0001013871 | ||
Document Type | 10-Q | ||
Document Period End Date | 2010-03-31 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,010 | ||
Document Fiscal Period Focus | Q1 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $6,803,812,501 | ||
Entity Common Stock, Shares Outstanding | 255,312,628 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | ||
In Millions, except Per Share data | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Operating Revenues | ||
Total operating revenues | $2,215 | $1,658 |
Operating Costs and Expenses | ||
Cost of operations | 1,639 | 766 |
Depreciation and amortization | 202 | 169 |
Selling, general and administrative | 130 | 95 |
Development costs | 9 | 13 |
Total operating costs and expenses | 1,980 | 1,043 |
Gain on sale of assets | 23 | 0 |
Operating Income | 258 | 615 |
Other Income/(Expense) | ||
Equity in earnings of unconsolidated affiliates | 14 | 22 |
Other income/(loss), net | 4 | (3) |
Interest expense | (153) | (138) |
Total other expense | (135) | (119) |
Income Before Income Taxes | 123 | 496 |
Income tax expense | 65 | 298 |
Net Income attributable to NRG Energy, Inc. | 58 | 198 |
Dividends for preferred shares | 2 | 14 |
Income Available for NRG Energy, Inc. Common Stockholders | $56 | $184 |
Earnings per share attributable to NRG Energy, Inc. Common Stockholders | ||
Weighted average number of common shares outstanding - basic | 254 | 237 |
Net Income per Weighted Average Common Share - basic | 0.22 | 0.78 |
Weighted average number of common shares outstanding - diluted | 257 | 275 |
Net Income per Weighted Average Common Share - diluted | 0.22 | 0.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 12 Months Ended
Dec. 31, 2009 |
Current Assets | ||
Cash and cash equivalents | $1,813 | $2,304 |
Funds deposited by counterparties | 509 | 177 |
Restricted cash | 7 | 2 |
Accounts receivable - trade, less allowance for doubtful accounts of $21 and $29, respectively | 700 | 876 |
Inventory | 549 | 541 |
Derivative instruments valuation | 2,724 | 1,636 |
Cash collateral paid in support of energy risk management activities | 533 | 361 |
Prepayments and other current assets | 307 | 311 |
Total current assets | 7,142 | 6,208 |
Property, plant and equipment, net of accumulated depreciation of $3,236 and $3,052, respectively | 11,627 | 11,564 |
Other Assets | ||
Equity investments in affiliates | 421 | 409 |
Note receivable - affiliate and capital leases, less current portion | 476 | 504 |
Goodwill | 1,713 | 1,718 |
Intangible assets, net of accumulated amortization of $758 and $648, respectively | 1,686 | 1,777 |
Nuclear decommissioning trust fund | 382 | 367 |
Derivative instruments valuation | 975 | 683 |
Other non-current assets | 156 | 148 |
Total other assets | 5,809 | 5,606 |
Total Assets | 24,578 | 23,378 |
Current Liabilities | ||
Current portion of long-term debt and capital leases | 152 | 571 |
Accounts payable | 595 | 697 |
Derivative instruments valuation | 2,354 | 1,473 |
Deferred income taxes | 174 | 197 |
Cash collateral received in support of energy risk management activities | 509 | 177 |
Accrued expenses and other current liabilities | 588 | 647 |
Total current liabilities | 4,372 | 3,762 |
Other Liabilities | ||
Long-term debt and capital leases | 7,846 | 7,847 |
Nuclear decommissioning reserve | 304 | 300 |
Nuclear decommissioning trust liability | 262 | 255 |
Deferred income taxes | 1,925 | 1,783 |
Derivative instruments valuation | 439 | 387 |
Out-of-market contracts | 277 | 294 |
Other non-current liabilities | 885 | 806 |
Total non-current liabilities | 11,938 | 11,672 |
Total Liabilities | 16,310 | 15,434 |
3.625% convertible perpetual preferred stock (at liquidation value, net of issuance costs) | 247 | 247 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Preferred stock (at liquidation value, net of issuance costs) | 0 | 149 |
Common stock | 3 | 3 |
Additional paid-in capital | 5,274 | 4,948 |
Retained earnings | 3,388 | 3,332 |
Less treasury stock, at cost - 48,411,606 and 41,866,451 shares, respectively | (1,323) | (1,163) |
Accumulated other comprehensive income | 667 | 416 |
Noncontrolling interest | 12 | 12 |
Total Stockholders' Equity | 8,021 | 7,697 |
Total Liabilities and Stockholders' Equity | $24,578 | $23,378 |
1_Condensed Consolidated Balanc
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | ||
In Millions, except Share data | Mar. 31, 2010
| Dec. 31, 2009
|
Current Assets | ||
Allowance for doubtful accounts | $21 | $29 |
Net of accumulated depreciation on property, plant and equipment | 3,236 | 3,052 |
Other Assets | ||
Accumulated amortization on intangible assets | $758 | $648 |
Stockholders' Equity | ||
Treasury stock, shares | 48,411,606 | 41,866,451 |
2_Condensed Consolidated Statem
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
In Millions | 3 Months Ended
Mar. 31, 2010 | 3 Months Ended
Mar. 31, 2009 |
Cash Flows from Operating Activities | ||
Net income | $58 | $198 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Distributions and equity in earnings of unconsolidated affiliates | (5) | (22) |
Depreciation and amortization | 202 | 169 |
Provision for bad debts | 9 | 0 |
Amortization of nuclear fuel | 10 | 10 |
Amortization of financing costs and debt discount/premiums | 8 | 9 |
Amortization of intangibles and out-of-market contracts | 0 | (34) |
Changes in deferred income taxes and liability for unrecognized tax benefits | 74 | 299 |
Changes in nuclear decommissioning trust liability | 11 | 6 |
Changes in derivatives | 24 | (304) |
Changes in collateral deposits supporting energy risk management activities | (172) | 312 |
Gain on sale of assets | (21) | (1) |
Gain on sale of emission allowances | 0 | (7) |
Amortization of unearned equity compensation | 6 | 7 |
Changes in option premiums collected | 92 | (270) |
Cash used by changes in other working capital | (182) | (233) |
Net Cash Provided by Operating Activities | 114 | 139 |
Cash Flows from Investing Activities | ||
Capital expenditures | (185) | (233) |
Increase in restricted cash, net | (5) | (1) |
Decrease in notes receivable | 7 | 3 |
Purchases of emission allowances | (34) | (35) |
Proceeds from sale of emission allowances | 9 | 8 |
Investments in nuclear decommissioning trust fund securities | (78) | (83) |
Proceeds from sales of nuclear decommissioning trust fund securities | 67 | 78 |
Proceeds from sale of assets | 30 | 4 |
Other | (5) | 0 |
Net Cash Used by Investing Activities | (194) | (259) |
Cash Flows from Financing Activities | ||
Payment of dividends to preferred stockholders | (2) | (14) |
Net receipts from acquired derivatives that include financing elements | 13 | 40 |
Proceeds from issuance of long-term debt | 10 | 0 |
Proceeds from issuance of common stock | 2 | 0 |
Payment of deferred debt issuance costs | (2) | (1) |
Payments for short and long-term debt | (429) | (209) |
Net Cash Used by Financing Activities | (408) | (184) |
Effect of exchange rate changes on cash and cash equivalents | (3) | (2) |
Net Decrease in Cash and Cash Equivalents | (491) | (306) |
Cash and Cash Equivalents at Beginning of Period | 2,304 | 1,494 |
Cash and Cash Equivalents at End of Period | $1,813 | $1,188 |
Basis of Presentation
Basis of Presentation | |
3 Months Ended
Mar. 31, 2010 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1 Basis of Presentation NRG Energy, Inc., or NRG or the Company, is primarily a wholesale power generation company with a significant presence in major competitive power markets in the United States of America, or U.S., as well as a major retail electricity provider in the ERCOT (Texas) market. NRG is engaged in the ownership, development, construction and operation of power generation facilities, both conventional and renewable, the transacting in and trading of fuel and transportation services, the trading of energy, capacity and related products in the U.S. and select international markets, and supply of electricity and energy services to retail electricity customers in the Texas market. The Company also seeks to invest in and deploy new energy technologies. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the U.S. Securities and Exchange Commissions, or SECs, 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 Companys financial statements in its Annual Report on Form 10-K for the year ended December31, 2009. 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 Companys consolidated financial position as of March31, 2010, and the results of operations and cash flows for the three months ended March31, 2010, and 2009. Use of Estimates The preparation of consolidated financial statements in accordance with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions impact the reported amount of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the consolidated financial statements. They also impact the reported amount of net earnings during the reporting period. Actual results could be different from these estimates. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | |
3 Months Ended
Mar. 31, 2010 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 Summary of Significant Accounting Policies Other Cash Flow Information NRGs investing activities do not include non-cash capital expenditures of $90million which were accrued at March31, 2010. Recent Accounting Developments ASU No.2009-17 On January1, 2010, the Company adopted the provisions of ASU No.2009-17, Consolidations: Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities, or ASU 2009-17. This guidance amends ASC 810 by altering how a company determines when an entity that is insufficiently capitalized or not controlled through its voting interests should be consolidated. The previous ASC 810 guidance required a quantitative analysis of the economic risk/rewards of a Variable Interest Entity, or a VIE, to determine the primary beneficiary. ASU 2009-17 specifies that a qualitative analysis be performed, requiring the primary beneficiary to have both the power to direct the activities of a VIE that most significantly impact the entities economic performance, as well as either the obligation to absorb losses or the right to receive benefits that could potentially be significant to the VIE. The Companys adoption of ASU 2009-17 on January1, 2010, did not have an impact on its results of operations, financial position or cash flows. ASU No.2010-10 In February2010, the FASB issued ASU No.2010-10, Consolidation (Topic 810): Amendments for Certain Investment Funds, or ASU 2010-10. The amendments to ASC 810 clarify that related parties should be considered when evaluating the criteria for determining whether a decision makers or service providers fee represents a variable interest. In addition, the amendments clarify that a quantitative calculation should not be the sole basis for evaluating whether a decision makers or service providers fee represents a variable interest. The Company adopted the provisions of ASU 2010-10 effective January1, 2010, with no impact on its results of operations, financial position or cash flows. Other effects of ASU 2009-17/ASU 2010-10 adoption NRG determined that one of its equity method investments was a VIE as of January1, 2010, upon adoption of this new guidance. NRG owns a 50% interest in Sherbino I Wind Farm LLC, or Sherbino, a 150MW wind farm operated as a joint venture with BP Wind Energy North America Inc., or BP Wind. The Company has determined that Sherbino is a VIE, but the Company is not the primary beneficiary, under the amended guidance in ASU 2009-17 and ASU 2010-10. Therefore, NRG will continue to account for its investment in Sherbino under the equity method. NRGs maximum exposure to loss is limited to its equity investment, which is $101million as of March31, 2010. Borrowings of an equity method investment In December2008 Sherbino entered into a 15-year term loan facility which is non-recourse to NRG. As of March31, 2010 the outstanding principal balance of the term loan facility was $133million, and is secured by substantially all of Sherbinos assets and membership interests. ASU No.2010-09 In February2010, the FASB issued ASU No.2010-09, Subsequent Events (Topic 855): Amendments to Certain Recognition and Disclo |
Comprehensive Income
Comprehensive Income | |
3 Months Ended
Mar. 31, 2010 | |
Comprehensive Income [Abstract] | |
Comprehensive Income | Note 3 Comprehensive Income The following table summarizes the components of the Companys comprehensive income, net of tax: (In millions) Three months ended March 31, 2010 2009 Net Income attributable to NRG Energy, Inc. $ 58 $ 198 Changes in derivative activity 257 173 Foreign currency translation adjustment (6 ) (18 ) Unrealized gain on available-for-sale securities 1 Other comprehensive income $ 251 156 Comprehensive income $ 309 $ 354 The following table summarizes the changes in the Companys accumulated other comprehensive income, net of tax: (In millions) Accumulated other comprehensive income as of December31, 2009 $ 416 Changes in derivative activity 257 Foreign currency translation adjustment (6 ) Accumulated other comprehensive income as of March31, 2010 $ 667 |
Acquisitions and Dispositions
Acquisitions and Dispositions | |
3 Months Ended
Mar. 31, 2010 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | Note 4 Acquisitions and Dispositions Acquisition of Reliant Energy On May1, 2009, NRG, through its wholly-owned subsidiary NRG Retail LLC, acquired Reliant Energy from RRI Energy, Inc., or RRI, which consisted of the entire Texas electric retail business operations of RRI, including the exclusive use of the trade name Reliant and related branding rights. The acquisition of Reliant Energy was accounted for under the acquisition method of accounting in accordance with ASC 805. Accordingly, NRG conducted an assessment of net assets acquired and recognized identifiable assets acquired and liabilities assumed at their acquisition date fair values. The accounting for this business combination was complete as of March31, 2010. NRG paid RRI $287.5million in cash at closing, and made payments to RRI of $79million as remittances of acquired net working capital. In addition, the Company expects to remit approximately $3million of acquired net working capital to RRI by the second quarter 2010, bringing the total cash consideration to approximately $370million. NRG also recognized a $31 million non-cash gain at the acquisition date, on the settlement of a pre-existing relationship, representing the in-the-money value to NRG of an agreement that permits Reliant Energy to call on certain NRG gas plants when necessary for Reliant Energy to meet its load obligations. This non-cash gain was considered a component of consideration in accordance with ASC 805, and together with cash consideration, brings total consideration to approximately $401million. The following table summarizes the values assigned to the net assets acquired, including cash acquired of $6million, as of the acquisition date: (In millions) Assets Current and non-current assets $ 635 Property, plant and equipment 72 Intangible assets subject to amortization: In-market customer contracts 790 Customer relationships 405 Trade names 178 In-market energy supply contracts 54 Other 6 Derivative assets 1,942 Deferred tax asset, net 14 Goodwill Total assets acquired $ 4,096 Liabilities Current and non-current liabilities $ 556 Derivative liabilities 2,996 Out-of-market energy supply and customer contracts 143 Total liabilities assumed $ 3,695 Net assets acquired $ 401 Measurement period adjustments The following measurement period adjustments to the provisional amounts, attributable to refinement of the underlying appraisal assumptions, were recognized during 2009 subsequent to the acquisition date and the first quarter of 2010: Increase/(Decrease) (In millions) Assets Intangible assets subject to amortization: In-market customer contracts $ 57 Customer relationships (76 ) In-market energy supply contracts 17 Deferred tax asset, net 3 Total assets acquired 1 Liabilities Current and non-current liabilities 6 Out-of-market energy supply and customer contracts (5 ) Total liabilities assumed |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | |
3 Months Ended
Mar. 31, 2010 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 5 Fair Value of Financial Instruments The estimated carrying values and fair values of NRGs recorded financial instruments are as follows: Carrying Amount Fair Value March 31, December 31, March 31, December 31, 2010 2009 2010 2009 (In millions) Cash and cash equivalents $ 1,813 $ 2,304 $ 1,813 $ 2,304 Funds deposited by counterparties 509 177 509 177 Restricted cash 7 2 7 2 Cash collateral paid in support of energy risk management activities 533 361 533 361 Investment in available-for-sale securities (classified within other non-current assets): Debt securities 9 9 9 9 Marketable equity securities 5 5 5 5 Trust fund investments 384 369 384 369 Notes receivable 229 231 236 238 Derivative assets 3,699 2,319 3,699 2,319 Long-term debt, including current portion 7,883 8,295 7,832 8,211 Cash collateral received in support of energy risk management activities 509 177 509 177 Derivative liabilities $ 2,793 $ 1,860 $ 2,793 $ 1,860 Recurring Fair Value Measurements The following table presents assets and liabilities measured and recorded at fair value on the Companys condensed consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: (In millions) Fair Value As of March 31, 2010 Level 1 Level 2 Level 3 Total Cash and cash equivalents $ 1,813 $ $ $ 1,813 Funds deposited by counterparties 509 509 Restricted cash 7 7 Cash collateral paid in support of energy risk management activities 533 533 Investment in available-for-sale securities (classified within other non-current assets): Debt securities 9 9 Marketable equity securities 5 5 Trust fund investments Cash and cash equivalents 8 8 U.S. government and federal agency obligations 23 23 Federal agency mortgage-backed securities 63 63 Commercial mortgage-backed securities 9 9 Corporate debt securities 48 48 Marketable equity securities 194 37 231 Foreign government fixed income securities 2 2 Derivative assets Commodity contracts 995 2,593 100 3,688 Interest rate contracts 11 11 Total assets $ 4,087 $ 2,715 $ 157 $ 6,959 Cash collateral received in support of energy risk management activities $ 509 $ $ $ 509 Derivative liabilities Commodity contracts 1,119 1,430 136 |
Nuclear Decommissioning Trust F
Nuclear Decommissioning Trust Fund | |
3 Months Ended
Mar. 31, 2010 | |
Nuclear Decommissioning Trust Fund [Abstract] | |
Nuclear Decommissioning Trust Fund | Note 6 Nuclear Decommissioning Trust Fund NRGs nuclear decommissioning trust fund assets, which are for our portion of the decommissioning of the South Texas Project, or 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, or ASC 980. 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 to the ratepayers and are not included in net income or accumulated other comprehensive income, consistent with regulatory treatment. The following table summarizes the aggregate fair values and unrealized gains and losses (including other-than-temporary impairments) for the securities held in the trust funds as of March 31, 2010, and December31, 2009, as well as information about the contractual maturities of those securities. The cost of securities sold is determined on the specific identification method. As of March 31, 2010 As of December 31, 2009 Weighted- Weighted- average average Fair Unrealized Unrealized maturities Fair Unrealized Unrealized maturities (In millions, except otherwise noted) Value gains losses (in years) Value gains losses (in years) Cash and cash equivalents $ 8 $ $ $ 4 $ $ U.S. government and federal agency obligations 21 1 8 23 1 8 Federal agency mortgage-backed securities 63 2 22 60 2 23 Commercial mortgage-backed securities 9 1 29 10 1 29 Corporate debt securities 48 3 1 9 48 3 1 10 Marketable equity securities 231 99 1 220 89 2 Foreign government fixed income securities 2 7 2 6 Total $ 382 $ 105 $ 3 $ 367 $ 95 $ 4 The following tables summarize proceeds from sales of available-for-sale securities and the related realized gains and losses from these sales. Three months ended March 31, (In millions) 2010 2009 Realized gains $ 1 $ 2 Realized losses 1 8 Proceeds from sale of securities 67 78 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | |
3 Months Ended
Mar. 31, 2010 | |
Accounting for Derivative Instruments and Hedging Activities [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Note 7 Accounting for Derivative Instruments and Hedging Activities ASC 815 requires NRG to recognize all derivative instruments on the balance sheet as either assets or liabilities and to measure them at fair value each reporting period unless they qualify for a NPNS exception. If certain conditions are met, NRG may be able to designate certain derivatives as cash flow hedges and defer the effective portion of the change in fair value of the derivatives to accumulated OCI, until the hedged transactions occur and are recognized in earnings. The ineffective portion of a cash flow hedge is immediately recognized in earnings. For derivatives designated as hedges of the fair value of assets or liabilities, the changes in fair value of both the derivative and the hedged transaction are recorded in current earnings. For derivatives that are not designated as cash flow hedges or do not qualify for hedge accounting treatment, the changes in the fair value will be immediately recognized in earnings. Under the guidelines established per ASC 815, certain derivative instruments may qualify for the NPNS exception and are therefore exempt from fair value accounting treatment. ASC 815 applies to NRGs energy related commodity contracts, interest rate swaps, and foreign exchange contracts. As the Company engages principally in the trading and marketing of its generation assets and retail business, some of NRGs commercial activities qualify for hedge accounting under the requirements of ASC 815. In order for the generation assets to qualify, the physical generation and sale of electricity should be highly probable at inception of the trade and throughout the period it is held, as is the case with the Companys baseload plants. For this reason, many trades in support of NRGs baseload units normally qualify for NPNS or cash flow hedge accounting treatment, and trades in support of NRGs peaking units asset optimization will generally not qualify for hedge accounting treatment, with any changes in fair value likely to be reflected on a mark-to-market basis in the statement of operations. Most of the retail load contracts either qualify for the NPNS exception or fail to meet the criteria for a derivative and the majority of the supply contracts are recorded under mark-to-market accounting. All of NRGs hedging and trading activities are subject to limits within the Companys Risk Management Policy. Energy-Related Commodities To manage the commodity price risk associated with the Companys competitive supply activities and the price risk associated with wholesale and retail power sales from the Companys electric generation facilities, NRG may enter into a variety of derivative and non-derivative hedging instruments, utilizing the following: Forward contracts, which commit NRG to sell or purchase energy commodities or purchase fuels in the future. Futures contracts, which are exchange-traded standardized commitments to purchase or sell a commodity or financial instrument. Swap agreements, which require payments to or from counter-parties based upon the differential between two prices for a predetermined contractual, o |
Long-Term Debt
Long-Term Debt | |
3 Months Ended
Mar. 31, 2010 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | Note 8 Long-Term Debt Senior Credit Facility In March2010, NRG made a repayment of approximately $229million to its first lien lenders under the Term Loan Facility. This payment resulted from the mandatory annual offer of a portion of NRGs excess cash flow (as defined in the Senior Credit Facility) for the prior year. Debt Related to Capital Allocation Program On March3, 2010, the Company completed the early unwinding of the CSF I Debt by remitting a cash payment to Credit Suisse, or CS, of $242million to settle the outstanding principal and interest, as compared to $249million that would have been due at maturity in June2010. As part of the unwind, CS returned to NRG 6,600,000 shares of NRG common stock borrowed under the Share Lending Agreement, or SLA, between the parties and released all 12,441,973 shares of NRG common stock held as collateral for the CSF I Debt. The 6,600,000 shares of NRG common stock were returned to treasury stock and will no longer be treated as outstanding for corporate law purposes. The Company has now settled all obligations related to the CSF I and II Debt entered into in 2006, as amended from time to time, as well as the SLA entered into in February2009. Dunkirk Power LLC Tax-Exempt Bonds On February1, 2010, the Company fixed the rate on the Dunkirk bonds originally issued in April2009, at 5.875%. Interest on the bonds will be payable semiannually. In addition, the $59 million letter of credit issued by NRG in support of the bonds was cancelled and replaced with an NRG guarantee. GenConn Energy LLC related financings NRG Connecticut Peaking Development LLC made funding requests under the equity bridge loan, or EBL, during the quarter. The EBL is backed by a letter of credit issued by NRG under its Synthetic Letter of Credit Facility equal to 104% of the amount outstanding. The proceeds of the EBL received through March31, 2010, were $114million and the remaining amounts will be drawn as necessary to fund interest on the EBL as the maximum amount permitted to be drawn for project costs for both projects has been met. Borrowings of an equity method investment In April2009, GenConn secured financing for 50% of the Devon and Middletown project construction costs through a seven-year term loan facility, and also entered into a five-year revolving working capital loan and letter of credit facility, which collectively with the term loan is referred to as the GenConn Facility. The aggregate credit amount secured under the GenConn Facility, which is non-recourse to NRG, is $291million, including $48million for the revolving facility. In August2009, GenConn began to draw under the GenConn Facility to cover costs related to the Devon project. As of March31, 2010, $75million had been drawn. |
Changes in Capital Structure
Changes in Capital Structure | |
3 Months Ended
Mar. 31, 2010 | |
Changes in Capital Structure [Abstract] | |
Changes in Capital Structure | Note 9 Changes in Capital Structure The following table reflects the changes in NRGs common stock issued and outstanding during the three months ended March31, 2010: Authorized Issued Treasury Outstanding Balance as of December31, 2009 500,000,000 295,861,759 (41,866,451 ) 253,995,308 Shares issued under LTIP 150,853 150,853 Shares issued under NRG Employee Stock Purchase Plan, or ESPP 54,845 54,845 Shares returned by affiliate of CS (6,600,000 ) (6,600,000 ) 4% Preferred Stock conversion 7,701,450 7,701,450 Balance as of March31, 2010 500,000,000 303,714,062 (48,411,606 ) 255,302,456 Employee Stock Purchase Plan As of March31, 2010, there were 363,623 shares of treasury stock reserved for issuance under the ESPP. 4% Preferred Stock As of January21, 2010, the Company completed the redemption of all remaining outstanding shares of 4% Preferred Stock, with holders converting 154,029 Preferred Stock shares into 7,701,450 shares of common stock and the Company redeeming 28 Preferred Stock shares for $28 thousand in cash. Share Lending Agreements As part of the CSF I Debt unwind, CS returned to NRG 6,600,000 shares of NRG common stock borrowed under the SLA between the parties. The 6,600,000 shares of NRG common stock were returned to treasury stock and will no longer be treated as outstanding for corporate law purposes. See Note 8, Long-Term Debt, to this Form 10-Q for more information. |
Equity Compensation
Equity Compensation | |
3 Months Ended
Mar. 31, 2010 | |
Equity Compensation [Abstract] | |
Equity Compensation | Note 10 Equity Compensation Non-Qualified Stock Options, or NQSOs The following table summarizes the Companys NQSO activity as of March31, 2010, and changes during the three months then ended: Weighted Aggregate Intrinsic Average Value Shares Exercise Price (In millions) Outstanding as of December31, 2009 4,793,585 $ 25.07 Granted 754,200 23.79 Exercised (109,165 ) 22.15 Forfeited (214,241 ) 30.82 Outstanding at March31, 2010 5,224,379 24.71 $ 10 Exercisable at March31, 2010 3,302,851 $ 23.68 $ 10 The weighted average grant date fair value of NQSOs granted for the three months ended March 31, 2010, was $10.67. Restricted Stock Units, or RSUs The following table summarizes the Companys non-vested RSU awards as of March31, 2010, and changes during the three months then ended: Weighted Average Grant-Date Units Fair Value Per Unit Non-vested as of December31, 2009 1,614,769 $ 30.78 Granted 352,600 23.66 Vested (65,000 ) 27.92 Forfeited (65,570 ) 30.12 Non-vested as of March31, 2010 1,836,799 $ 29.53 Performance Units, or PUs The following table summarizes the Companys non-vested PU awards as of March31, 2010, and changes during the three months then ended: Weighted Average Grant- Date Units Fair Value Per Unit Non-vested as of December31, 2009 617,300 $ 24.27 Granted 348,500 23.81 Forfeited (172,200 ) 22.20 Non-vested as of March31, 2010 793,600 $ 24.52 In the three months ended March31, 2010, there were no performance unit payouts in accordance with the terms of the performance units. Deferral Stock Units, or DSUs The following table summarizes the Companys outstanding DSU awards as of March31, 2010, and changes during the three months then ended: Weighted Average Grant- Date Units Fair Value Per Unit Outstanding as of December31, 2009 304,049 $ 19.34 Granted Conversions (1,012 ) 21.72 Outstanding as of March31, 2010 303,037 $ 19.33 |
Earnings Per Share
Earnings Per Share | |
3 Months Ended
Mar. 31, 2010 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 11 Earnings Per Share Basic earnings per share attributable to NRG common stockholders is computed by dividing net income attributable to NRG Energy Inc. adjusted for accumulated preferred stock dividends by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted earnings per share attributable to NRG common stockholders is computed in a manner consistent with that of basic earnings per share while giving effect to all potentially dilutive common shares that were outstanding during the period. On March3, 2010, as part of the CSF I Debt unwind, CS returned 6,600,000 shares of NRG common stock borrowed under the SLA between the parties. These shares had not been treated as outstanding for earnings per share purposes because CS was required to return all borrowed shares (or identical shares) upon termination of the SLA. See Note 8, Long-Term Debt, to this Form 10-Q, for more information on the SLA. The reconciliation of NRGs basic earnings per common share to diluted earnings per share for the three months ended March31, 2010, and 2009 is shown in the following table: Three months ended March 31, (In millions, except per share data) 2010 2009 Basic earnings per share attributable to NRG common stockholders Numerator: Net income attributable to NRG Energy, Inc. $ 58 $ 198 Preferred stock dividends (2 ) (14 ) Net income attributable to NRG Energy, Inc. available to common stockholders $ 56 $ 184 Denominator: Weighted average number of common shares outstanding 253.8 237.1 Basic earnings per share: Net income attributable to NRG Energy, Inc. $ 0.22 $ 0.78 Diluted earnings per share attributable to NRG common stockholders Numerator: Net income available to common stockholders $ 56 $ 184 Add preferred stock dividends for dilutive preferred stock 10 Net income attributable to NRG Energy, Inc. available to common stockholders $ 56 $ 194 Denominator: Weighted average number of common shares outstanding 253.8 237.1 Incremental shares attributable to the issuance of equity compensation (treasury stock method) 1.2 1.0 Incremental shares attributable to assumed conversion features of outstanding preferred stock (if-converted method) 1.5 37.3 Total dilutive shares 256.5 275.4 Diluted earnings per share: Net income attributable to NRG Energy, Inc. $ 0.22 $ 0.70 The following table summarizes NRGs outstanding equity instruments that are anti-dilutive and were not included in the computation of the Companys diluted earnings per share: Three months ended March 31, (In millions of shares) 2010 2009 Equity compensation NQSOs and PUs 6.1 5.4 Embedded derivative of 3.625% redeemable perpetual preferred stock 16.0 16.0 Embedd |
Segment Reporting
Segment Reporting | |
3 Months Ended
Mar. 31, 2010 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 12 Segment Reporting NRGs segment structure reflects core areas of operation which are primarily segregated based on the Companys wholesale power generation, retail, thermal and chilled water business, and corporate activities. In May2009, NRGs segment structure changed to reflect the Companys acquisition of Reliant Energy, which has been incorporated as a separate reporting segment per ASC-280, Segment Reporting. Within NRGs wholesale power generation operations, there are distinct components with separate operating results and management structures for the following geographical regions: Texas, Northeast, South Central, West and International. The Companys corporate activities include wind, solar and nuclear development. In the second quarter 2009, management changed its method for allocating corporate general and administrative expenses to the segments. Corporate general and administrative expenses had been allocated based on budgeted segment revenues. Beginning in the second quarter 2009, corporate general and administrative expenses have been allocated based on forecasted earnings/(losses) before interest expense, income taxes, depreciation and amortization expense. (In millions) Wholesale Power Generation Three months ended Reliant South March 31, 2010 Energy Texas (a) Northeast Central West International Thermal Corporate Elimination Total Operating revenues $ 1,176 $ 870 $ 279 $ 143 $ 35 $ 35 $ 36 $ 2 $ (361 ) $ 2,215 Depreciation and amortization 30 117 32 16 3 2 2 202 Equity in earnings of unconsolidated affiliates 10 4 14 Income/(loss) before income taxes (188 ) 375 52 (4 ) 6 10 4 (132 ) 123 Net income/(loss) attributable to NRG Energy, Inc. $ (188 ) $ 375 $ 52 $ (4 ) $ 6 $ 8 $ 4 $ (195 ) $ $ 58 Total assets $ 1,910 $ 13,936 $ 1,871 $ 891 $ 357 $ 769 $ 206 $ 23,932 $ (19,294 ) $ 24,578 (a) Includes inter-segment sales of $360million, comprised of $216 million of inter-segment physical sales, $135million inter-segment unrealized gains on derivatives and $9million of financial revenue on derivatives with Reliant Energy. If the Company continued using the previous allocation method for corporate general and administrative expenses, the effect to net income/(loss) of each segment for the three months ended March31, 2010, would have been as follows: Net income/(loss) attributable to NRG Energy, Inc. as reported $ (188 ) $ 375 $ 52 $ (4 ) $ 6 $ 8 $ 4 $ (195 ) $ $ 58 Increase/(decrease) in net income/(loss) attributable to NRG Energy, Inc. (11 ) 10 2 (1 ) Adjusted net incom |
Income Taxes
Income Taxes | |
3 Months Ended
Mar. 31, 2010 | |
Income Taxes [Abstract] | |
Income Taxes | Note 13 Income Taxes Effective Tax Rate The income tax provision consisted of the following: Three months ended March 31, (In millions, except otherwise noted) 2010 2009 Income tax expense $ 65 $ 298 Effective tax rate 52.7 % 60.0 % For the three months ended March31, 2010, NRGs overall effective tax rate was different than the statutory rate of 35% primarily due to state and local income taxes as well as recording federal and state tax expense and interest for unrecognized tax benefits. For the three months ended March31, 2009, NRGs effective tax rate was increased primarily due to the impact of state and local income taxes in addition to an increase in valuation allowance as a result of capital losses generated in the quarter for which there were no projected capital gains or available tax planning strategies. Unrecognized tax benefits As of March31, 2010, NRG has recorded a $423million non-current tax liability for unrecognized tax benefits, primarily resulting from taxable earnings for the period for which there are no net operating losses available to offset for financial statement purposes. NRG has accrued interest related to these unrecognized tax benefits of approximately $14million for the three months ended March31, 2010, and has accrued approximately $31million since adoption. The Company recognizes interest and penalties related to unrecognized tax benefits in income tax expense. The Company continues to be under examination by the Internal Revenue Service for the years 2004 through 2006. Tax Receivable and Payable As of March31, 2010, NRG recorded a current tax payable of approximately $40million that represents a tax liability due for domestic state taxes of approximately $28million, as well as foreign taxes payable of approximately $12million. In addition, NRG has a domestic tax receivable of $153million, of which $102million reflects federal cash grants receivable for the Blythe solar and Langford wind facilities. |
Benefit Plans and Other Postret
Benefit Plans and Other Postretirement Benefits | |
3 Months Ended
Mar. 31, 2010 | |
Benefit Plans and Other Postretirement Benefits [Abstract] | |
Benefit Plans and Other Postretirement Benefits | Note 14 Benefit Plans and Other Postretirement Benefits NRG Defined Benefit Plans NRG sponsors and operates three defined benefit pension and other postretirement plans. The NRG Plan for Bargained Employees and the NRG Plan for Non-Bargained Employees are maintained solely for eligible legacy NRG participants. A third plan, the Texas Genco Retirement Plan, is maintained for participation solely by eligible employees. The total amount of employer contributions paid for the three months ended March31, 2010, was $5million. NRG expects to make approximately $13 million in further contributions for the remainder of 2010. The net periodic pension cost related to all of the Companys defined benefit pension plans includes the following components: Defined Benefit Pension (In millions) Plans Three months ended March 31, 2010 2009 Service cost benefits earned $ 3 $ 4 Interest cost on benefit obligation 5 5 Expected return on plan assets (4 ) (4 ) Net periodic benefit cost $ 4 $ 5 The net periodic cost related to all of the Companys other post retirement benefits plans include the following components: Other Postretirement (In millions) Benefits Plans Three months ended March 31, 2010 2009 Service cost benefits earned $ 1 $ 1 Interest cost on benefit obligation 1 2 Net periodic benefit cost $ 2 $ 3 STP Defined Benefit Plans NRG has a 44% undivided ownership interest in STP. South Texas Project Nuclear Operating Company, or STPNOC, which operates and maintains STP, provides its employees a defined benefit pension plan as well as postretirement health and welfare benefits. Although NRG does not sponsor the STP plan, it reimburses STPNOC for 44% of the contributions made towards its retirement plan obligations. There were no employer contributions reimbursed to STPNOC for the three months ended March31, 2010. The Company recognized net periodic costs related to its 44% interest in STP defined benefits plans of $2million and $3million for the three months ended March31, 2010, and 2009, respectively. |
Commitments and Contingencies
Commitments and Contingencies | |
3 Months Ended
Mar. 31, 2010 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 15 Commitments and Contingencies First and Second Lien Structure NRG has granted first and second liens to certain counterparties on substantially all of the Companys assets to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedge agreements for forward sales of power or MWh equivalents. The Companys lien counterparties may have a claim on NRGs assets to the extent market prices exceed the hedged price. As of March 31, 2010, and April23, 2010, all hedges under the first and second liens were in-the-money on a counterparty aggregate basis. RepoweringNRG Initiatives NRG has capitalized $33million through March31, 2010, for the repowering of its El Segundo generating facility in California. Air permitting litigation unrelated to the El Segundo project has delayed receipt of certain required permits, including an air permit, which will prevent the El Segundo project from meeting its original completion date of June2011. Legislation enacted on January1, 2010 has allowed the affected air district to issue air permits like El Segundos. A revised draft air permit was issued in April2010, allowing the project permitting to proceed. The Company is working with the counterparty to consider certain PPA modifications including the commercial operations date, currently expected to be the summer of 2013. Contingencies Set forth below is a description of the Companys material legal proceedings. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. 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 Companys liabilities and contingencies could be at amounts that are different from its currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In managements opinion, the disposition of these ordinary course matters will not materially adversely affect NRGs consolidated financial position, results of operations, or cash flows. California Department of Water Resources T |
Regulatory Matters
Regulatory Matters | |
3 Months Ended
Mar. 31, 2010 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 16 Regulatory 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 markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRGs wholesale and retail businesses. In addition to the regulatory proceedings noted below, NRG and its subsidiaries are a party to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In managements opinion, the disposition of these ordinary course matters will not materially adversely affect NRGs consolidated financial position, results of operations, or cash flows. PJM On June18, 2009, FERC denied rehearing of its order dated September19, 2008, dismissing a complaint filed by the Maryland Public Service Commission, or MDPSC, together with other load interests, against PJM challenging the results of the Reliability Pricing Model, or RPM transition Base Residual Auctions for installed capacity, held between April2007 and January2008. The complaint had sought to replace the auction-determined results for installed capacity for the 2008/2009, 2009/2010, and 2010/2011 delivery years with administratively-determined prices. On August14, 2009, the MDPSC and the New Jersey Board of Public Utilities filed an appeal of FERCs orders to the U.S. Court of Appeals for the Fourth Circuit, and a successful appeal could disrupt the auction-determined results and create a refund obligation for market participants. The case has been transferred to the U.S. Court of Appeals for the DC Circuit and is being briefed. Midwest ISO v. PJM On March8, 2010, Midwest ISO filed a complaint against PJM seeking payments from PJM related to inter-market operations and settlements for congestion costs between the systems for the period from April2005 to the present. If the Midwest ISOs allegations are true, PJM may have significant liability. If PJM makes any payments to the Midwest ISO related to these claims, PJM is expected to seek to recover the payments from entities that served load and held transmission congestion rights on PJM during the period in dispute, including NRG, which provided basic generation service and thus effectively served load. At this time, NRGs share of any payment by PJM is not expected to be material. Retail (Replacement Reserve) On November14, 2006, Constellation Energy Commodities Group, or Constellation, filed a complaint with the PUCT alleging that ERCOT misapplied the Replacement Reserve Settlement, or RPRS, Formula contained in the ERCOT protocols from April10, 2006, through September27, 2006. Specifically, Constellation disputed approximately $4million in under-scheduling charges for capacity insufficiency asserting that ERCOT applied the wrong protocol. REPS, other market participants, ERCOT, and PUCT staff opposed Constellations complaint. On January25, 2008, the PUCT ente |
Environmental Matters
Environmental Matters | |
3 Months Ended
Mar. 31, 2010 | |
Environmental Matters [Abstract] | |
Environmental Matters | Note 17 Environmental Matters The construction and operation of power projects are subject to stringent environmental and safety protection and land use laws and regulation in the U.S. If such laws and regulations become more stringent, or new laws, interpretations or compliance policies apply and NRGs facilities are not exempt from coverage, the Company could be required to make modifications to further reduce potential environmental impacts. New legislation and regulations to mitigate the effects of Greenhouse Gases, or GHG including Carbon dioxide, or CO2 from power plants, are under consideration at the federal and state levels. In general, the effect of such future laws or regulations is expected to require the addition of pollution control equipment or the imposition of restrictions or additional costs on the Companys operations. Environmental Capital Expenditures Based on current rules, technology and plans, NRG has estimated that environmental capital expenditures from 2010 through 2014 to meet NRGs environmental commitments will be approximately $0.9billion and are primarily associated with controls on the Companys Big Cajun and Indian River facilities. These capital expenditures, in general, are related to installation of particulate, Sulfur dioxide, or SO2, Nitrogen oxide, or NOx, and mercury controls to comply with federal and state air quality rules and consent orders, as well as installation of Best Technology Available under a section of the Clean Water Act regulating cooling water intake structures, or Phase II 316(b) Rule. NRG continues to explore cost effective alternatives that can achieve desired results. This estimate reflects anticipated schedules and controls related to the Clean Air Interstate Rule, or CAIR, Maximum Achievable Control Technology, or MACT for mercury, and the Phase II 316(b) Rule which are under remand to the U.S. EPA, and, as such, the full impact on the scope and timing of environmental retrofits from any new or revised regulations cannot be determined at this time. NRGs current contracts with the Companys rural electrical customers in the South Central region allow for recovery of a portion of the regions capital costs once in operation, along with a capital return incurred by complying with new laws, including interest over the asset life of the required expenditures. The actual recoveries will depend, among other things, on the timing of the completion of the capital project and the remaining duration of the contracts. Northeast Region In January2006, NRGs Indian River Operations, Inc. received a letter of informal notification from the DNREC stating that it may be a potentially responsible party with respect to Burton Island Old Ash Landfill, a historic captive landfill located at the Indian River facility. On October1, 2007, NRG signed an agreement with the DNREC to investigate the site through the Voluntary Clean-up Program. On February4, 2008, the DNREC issued findings that no further action is required in relation to surface water and that a previously planned shoreline stabilization project would satisfactorily address shoreline erosion. The landfill itself will r |
Guarantees
Guarantees | |
3 Months Ended
Mar. 31, 2010 | |
Guarantees [Abstract] | |
Guarantees | Note 18 Guarantees NRG and its subsidiaries enter into various contracts that include indemnification and guarantee provisions as a routine part of the Companys business activities. Examples of these contracts include asset purchases and sale agreements, commodity sale and purchase agreements, retail contracts, joint venture agreements, EPC agreements, operation and maintenance agreements, service agreements, settlement agreements, and other types of contractual agreements with vendors and other third parties, as well as affiliates. These contracts generally indemnify the counterparty for tax, environmental liability, litigation and other matters, as well as breaches of representations, warranties and covenants set forth in these agreements. The Company is also obligated with respect to customer deposits associated with Reliant Energy. In some cases, NRGs maximum potential liability cannot be estimated, since the underlying agreements contain no limits on potential liability. This Note 18 should be read in conjunction with the complete description under Note 26, Guarantees, to the Companys financial statements in its Annual Report on Form 10-K for the year ended December31, 2009. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | |
3 Months Ended
Mar. 31, 2010 | |
Condensed Consolidating Financial Information [Abstract] | |
Condensed Consolidating Financial Information | Note 19 Condensed Consolidating Financial Information As of March31, 2010, the Company had outstanding $1.2billion of 7.25% Senior Notes due 2014, $2.4billion of 7.375% Senior Notes due 2016, $1.1billion of 7.375% Senior Notes due 2017, and $700million of 8.50% Senior Notes due 2019. The Senior Notes are guaranteed by certain of NRGs current and future wholly-owned domestic subsidiaries, or guarantor subsidiaries. Unless otherwise noted below, each of the following guarantor subsidiaries fully and unconditionally guaranteed the Senior Notes as of March31, 2010: Arthur Kill Power LLC NRG Generation Holdings, Inc. Astoria Gas Turbine Power LLC NRG Huntley Operations Inc. Berrians I Gas Turbine Power LLC NRG International LLC Big Cajun II Unit 4 LLC NRG Kaufman LLC Cabrillo Power I LLC NRG Mesquite LLC Cabrillo Power II LLC NRG MidAtlantic Affiliate Services Inc. Chickahominy River Energy Corp. NRG Middletown Operations Inc. Commonwealth Atlantic Power LLC NRG Montville Operations Inc. Conemaugh Power LLC NRG New Jersey Energy Sales LLC Connecticut Jet Power LLC NRG New Roads Holdings LLC Devon Power LLC NRG North Central Operations, Inc. Dunkirk Power LLC NRG Northeast Affiliate Services Inc. Eastern Sierra Energy Company NRG Norwalk Harbor Operations Inc. El Segundo Power, LLC NRG Operating Services Inc. El Segundo Power II LLC NRG Oswego Harbor Power Operations Inc. GCP Funding Company LLC NRG Power Marketing LLC Hanover Energy Company NRG Retail LLC Huntley IGCC LLC NRG Rocky Road LLC Huntley Power LLC NRG Saguaro Operations Inc. Indian River IGCC LLC NRG South Central Affiliate Services Inc. Indian River Operations Inc. NRG South Central Generating LLC Indian River Power LLC NRG South Central Operations Inc. James River Power LLC NRG South Texas LP Kaufman Cogen LP NRG Texas LLC Keystone Power LLC NRG Texas C I Supply LLC Lake Erie Properties Inc. NRG Texas Holding Inc. Langford Wind Power, LLC NRG Texas Power LLC Louisiana Generating LLC NRG West Coast LLC Middletown Power LLC NRG Western Affiliate Services Inc. Montville IGCC LLC Oswego Harbor Power LLC Montville Power LLC Reliant Energy Power Supply, LLC NEO Chester-Gen LLC Reliant Energy Retail Holding, LLC NEO Corporation Reliant Energy Retail Services, LLC NEO Freehold-Gen LLC RE Retail Receivables, LLC NEO Power Services Inc. RERH Holdings, LLC New Genco GP LLC Reliant Energy Services Texas LLC Norwalk Power LLC Reliant Energy Texas Retail LLC NRG Affiliate Services Inc. Saguaro Power LLC NRG Arthur Kill Operations Inc. Somerset Operations Inc. NRG Asia-Pacific Ltd. Somerset Power LLC NRG Astoria Gas Turbine Operations Inc. Texas Genco Financing Corp. NRG Bayou Cove LLC Texas Genco GP, LLC NRG Cabrillo Power Operations Inc. Texas Genco Holdings, Inc. NRG Cadillac Operations Inc. Texas Genco LP, LLC NRG California Peaker Operations LLC Texas Genco Operating |
Subsequent Event
Subsequent Event | |
3 Months Ended
Mar. 31, 2010 | |
Subsequent Event [Abstract] | |
Subsequent Event | Note 20 Subsequent Event On May10, 2010, NINA and TEPCO Nuclear Energy America LLC, or TNEA, a wholly-owned subsidiary of The Tokyo Electric Power Company of Japan, Inc., or TEPCO, signed an Investment and Option Agreement whereby TNEA agreed to acquire up to a 20% interest in NINA Investments Holdings LLC, or Holdings. Holdings is a wholly-owned subsidiary of NINA, which indirectly holds NINAs ownership interest in the STP Units 3 and 4 Project. TNEA will initially invest $155 million for a 10% share of Holdings, which includes a $30 million option premium payment to Holdings. This option, which expires approximately one year from the date of signing the Investment and Option Agreement, will enable TNEA to buy an additional 10% of Holdings for another payment of $125 million. The closing is contingent upon NINAs receipt of a U.S. DOE loan guarantee commitment. Upon its initial investment, TNEA will hold a 9.2375% interest in the STP Units 3 and 4 Project, bringing NINAs investment down to 83.1375%. If TNEA exercises its option to increase its ownership of Holdings by an additional 10%, it will own 18.475% of the STP Units 3 and 4 Project, bringing NINAs investment down to 73.90%. |