NRG Energy (NRG) 10-K 2015 FY Annual report

EXHIBIT 12.2

NRG ENERGY, INC. AND SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

AND PREFERRED STOCK DIVIDEND REQUIREMENTS

	For the Year Ended December 31,
	2015			2014			2013(a)			2012(a)			2011(a)
	(in millions except ratio)
Earnings:
(Loss)/income from continuing operations before income tax	$	(5,094	)	$	135		$	(634	)	$	(12	)	$	(646	)
Less:
Distributions and equity in earnings of unconsolidated affiliates	37			49			84			2			9
Impairment charge on equity method investment	56			—			99			2			495
Capitalized interest	(30		)	(29		)	(130		)	(140		)	(80		)
Preference dividends - tax effected	(32		)	(90		)	(14		)	(14		)	(14		)
Add:
Fixed charges	1,205			1,345			1,051			878			945
Amortization of capitalized interest	21			20			14			11			7
Total Earnings:	$	(3,837	)	$	1,430		$	470		$	727		$	716
Fixed Charges:
Interest expense	$	1,139		$	1,228		$	932		$	671		$	808
Interest capitalized	30			29			130			140			80
Amortization of debt issuance costs	37			35			33			32			26
Amortization of debt (premium)/discount	(48		)	(50		)	(67		)	9			6
Approximation of interest in rental expense	15			13			9			12			11
Preference dividends - tax effected	32			90			14			14			14
Total Fixed Charges:	$	1,205		$	1,345		$	1,051		$	878		$	945
Ratio of Earnings to Combined Fixed Charges and Preference Dividends	(3.18		)	1.06			0.45			0.83			0.76

(a) The ratio coverage for the year ended December 31, 2015, 2013, 2012, and 2011 was less than 1:1. NRG would have needed to generate additional earnings of $5,042 million, $581 million, $151 million and $229 million, respectively, to achieve a ratio coverage of 1:1.