CONFIDENTIAL TREATMENT REQUESTED BY THE REGISTRANTS FOR
CERTAIN PORTIONS OF THIS LETTER
PURSUANT TO 17 C.F.R. § 200.83 (“RULE 83”)
| July 10, 2013 |
Securities and Exchange Commission
Division of Corporation Finance
100 F Street N.E.
Washington, D.C. 20549
Attn: Jennifer Thompson
Accounting Branch Chief
Re: GenOn Energy, Inc.
Form 10-K for the Fiscal Year Ended December 31, 2012
Filed February 27, 2013
Response dated May 8, 2013
File No. 001-16455
GenOn Americas Generation, LLC
Form 10-K for the Fiscal Year Ended December 31, 2012
Filed February 27, 2013
File No. 333-63240
GenOn Mid-Atlantic, LLC
Form 10-K for the Fiscal Year Ended December 31, 2012
Filed February 27, 2013
File No. 333-61668
Dear Ms. Thompson:
We refer to the letter of GenOn Energy, Inc., GenOn Americas Generation, LLC and GenOn Mid-Atlantic, LLC (collectively, the “Registrants”), dated June 28, 2013, and to the telephonic communication held among members of the Staff (the “Staff”) of the Securities and Exchange Commission (the “Commission”) and representatives of the Registrants on July 2, 2013, each related to the above mentioned filings.
On July 2, 2013, the Staff requested that the Registrants add additional information to Appendix A to the Registrants’ letter dated June 28, 2013. This letter provides a version of Appendix A revised accordingly.
Since the Registrants and management are in possession of all the facts relating to the Registrants’ disclosure, we hereby acknowledge that (i) the Registrants are responsible for the adequacy and accuracy of the disclosure in the filing; (ii) Staff comments or changes to disclosure in response to Staff comments do not foreclose the Commission from taking any action with respect to the filing; and (iii) the Registrants may not assert Staff comments as a defense in any proceeding initiated by the Commission or any person under the federal securities laws of the United States. We look forward to working with the Staff and improving the disclosures in our filings.
We hope that the foregoing has been responsive to your comments and await the Staff’s response. Please contact Kirk Andrews, Executive Vice President and Chief Financial Officer, at (609) 524-5475, Brian Curci, Deputy General Counsel, at (609) 524-5171, or me at (609) 524-5122 if you have questions regarding our responses or related matters.
| Sincerely, |
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| /s/ Ron Stark |
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| Ron Stark |
| Vice President and |
| Chief Accounting Officer |
cc: Young Kim, Staff Accountant, Securities and Exchange Commission
Brian Curci, Esq., Deputy General Counsel, NRG Energy, Inc.
Kirk Andrews, Chief Financial Officer, NRG Energy, Inc.
Gerald T. Nowak, Kirkland & Ellis LLP
APPENDIX A TO LETTER DATED JULY 10, 2013
CONFIDENTIAL TREATMENT REQUESTED BY THE REGISTRANTS FOR CERTAIN PORTIONS OF THIS APPENDIX
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| (A) |
| (B) |
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Plant |
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| Location |
| Technology |
| MW Capacity |
| Fuel Type |
| Years in service |
| Remaining |
| Discount rate |
| Valuation |
| Carrying |
| Carrying |
| Acquisition |
| Discounted |
| Variance |
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Aurora |
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| IL |
| CT |
| 880 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (a) | |||||
Avon Lake |
| (1) |
| OH |
| ST |
| 730 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Avon Lake (value included above) |
| (1) |
| OH |
| CT |
| 20 |
| Oil |
| *** |
| *** |
| *** | % | *** |
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Blossburg |
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| PA |
| CT |
| 20 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Bowline Point |
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| NY |
| ST |
| 755 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Brunot Island |
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| PA |
| CT/CC |
| 260 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Canal |
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| MA |
| ST |
| 1,110 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (b) | |||||
Chalk Point |
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| MD |
| ST |
| 665 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Chalk Point (value included above) |
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| MD |
| ST/CT |
| 1,690 |
| Gas |
| *** |
| *** |
| *** | % | *** |
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Cheswick |
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| PA |
| ST |
| 565 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Choctaw County |
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| MS |
| CC |
| 850 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (c) | |||||
Conemaugh |
| (2) |
| PA |
| ST/IC |
| 280 |
| Coal/Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Contra Costa |
| (1) |
| CA |
| ST |
| 675 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
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Coolwater Generating Station |
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| CA |
| ST/CC |
| 635 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (d) | |||||
Corporate Assets |
| (4) |
| Various |
| n/a |
| N/A |
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| *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Dickerson |
| (3) |
| MD |
| CT |
| 310 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
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Dickerson |
| (2) |
| MD |
| ST/CT |
| 535 |
| Coal |
| *** |
| *** |
| *** | % | *** |
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| *** |
| *** |
| *** |
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Ellwood Generating Station |
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| CA |
| CT |
| 55 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Etiwanda Generating Station |
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| CA |
| ST |
| 640 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Gilbert |
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| NJ |
| CT/CC |
| 535 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (e) | |||||
Glen Gardner |
| (1) |
| NJ |
| CT |
| 160 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Hamilton |
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| PA |
| CT |
| 20 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Hunterstown |
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| PA |
| CT |
| 60 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Hunterstown CC |
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| PA |
| CC |
| 810 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Kendall |
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| MA |
| CC |
| 260 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Keystone |
| (2) |
| PA |
| ST/IC |
| 285 |
| Coal/Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (f) | |||||
Mandalay Generating Station |
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| CA |
| ST/CT |
| 560 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Marsh Landing |
| (4) |
| CA |
| CT |
| 720 |
| Gas |
| In construction |
| *** |
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| *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Morgantown |
| (3) |
| MD |
| CT |
| 250 |
| Oil |
| *** |
| *** |
| *** | % | *** |
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| *** |
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Morgantown |
| (2) |
| MD |
| ST/CT |
| 1,230 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (f) | |||||
Mountain |
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| PA |
| CT |
| 40 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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New Castle |
| (1) |
| PA |
| ST |
| 325 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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New Castle (value included above) |
| (1) |
| PA |
| IC |
| 5 |
| Oil |
| *** |
| *** |
| *** | % | *** |
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Niles |
| (1) |
| OH |
| ST |
| 25 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
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Ormond Beach Generating Station |
|
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| CA |
| ST |
| 1,515 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (g) | |||||
Orrtanna |
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| PA |
| CT |
| 20 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Osceola |
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| FL |
| CT |
| 460 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Pittsburg Power |
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| CA |
| ST |
| 1,310 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Portland |
| (1) |
| PA |
| ST |
| 400 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Portland (value included above) |
| (1) |
| PA |
| CT |
| 170 |
| Oil |
| *** |
| *** |
| *** | % | *** |
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| *** |
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Sayreville |
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| NJ |
| CT |
| 225 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Seward |
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| PA |
| Fluidized Bed |
| 525 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (h) | |||||
Shawnee |
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| PA |
| CT |
| 20 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Shawville |
| (2) |
| PA |
| ST/IC |
| 605 |
| Coal/Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Shelby County |
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| IL |
| CT |
| 345 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (a) | |||||
Titus |
| (1) |
| PA |
| ST |
| 245 |
| Coal |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Titus (value included above) |
| (1) |
| PA |
| CT |
| 30 |
| Oil |
| *** |
| *** |
| *** | % | *** |
|
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| *** |
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Tolna |
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| PA |
| CT |
| 40 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Warren |
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| PA |
| CT |
| 55 |
| Gas |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
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Werner |
| (1) |
| NJ |
| CT |
| 210 |
| Oil |
| *** |
| *** |
| *** | % | *** |
| *** |
| *** |
| *** |
| *** |
| *** |
| (i) | |||||
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| Subtotal - Fair Value using Income Approach |
| *** |
| *** |
| *** |
| *** |
| *** |
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| Subtotal - Fair Value using Cost Approach |
| *** |
| *** |
| *** |
| *** |
| *** |
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| Subtotal - Fair Value using Market Approach |
| *** |
| *** |
| *** |
| *** |
| *** |
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| Total Fair Value at Acquisition Date |
| $ | *** |
| $ | *** |
| $ | *** |
| $ | *** |
| $ | *** |
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(1) Plants deactivated or to be deactivated
(2) Leased units and related leasehold improvements
(3) Carrying value for the coal and gas units is combined.
(4) For Corporate and Marsh Landing assets, fair value was assumed to be equal at the acquisition date and at 9/30/12. The carrying value of the Corporate assets includes capitalized interest that was written off in purchase accounting.
(5) The discounted cash flow for September 30, 2012 was calculated using the cash flows developed using entity specific assumptions for the purposes of impairment testing by GenOn management. The cash flows were then discounted at the same rate utilized in determining the acquisition date fair value for each plant.
(6) Acquisition date fair values are provisional and are subject to revision until the evaluations are completed.
CT - Combustion Turbine
ST - Steam Turbine
CC - Combined Cycle
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| (a) | *** |
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| (b) | *** |
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| (c) | *** |
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| (d) | *** |
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| (e) | *** |
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| (f) | *** |
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| (g) | *** |
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| (h) | *** |
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| (i) | *** |
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***CONFIDENTIAL TREATMENT REQUESTED BY REGISTRANTS PURSUANT TO RULE 83.