SEC Filings

10-K
NRG ENERGY, INC. filed this Form 10-K on 02/29/2016
Entire Document
 
                

Seasonality and Price Volatility
Annual and quarterly operating results of the Company's wholesale power generation segments can be significantly affected by weather and energy commodity price volatility. Significant other events, such as the demand for natural gas, interruptions in fuel supply infrastructure and relative levels of hydroelectric capacity can increase seasonal fuel and power price volatility. The preceding factors related to seasonality and price volatility are fairly uniform across the Company's wholesale generation business segments.
The sale of electric power to retail customers is also a seasonal business with the demand for power generally peaking during the summer months. As a result, net working capital requirements for the Company's retail operations generally increase during summer months along with the higher revenues, and then decline during off-peak months. Weather may impact operating results and extreme weather conditions could materially affect results of operations. The rates charged to retail customers may be impacted by fluctuations in total power prices and market dynamics like the price of natural gas, transmission constraints, competitor actions, and changes in market heat rates.
Operational Statistics
The following are industry statistics for the Company's fossil and nuclear plants, as defined by the NERC, and are more fully described below:
Annual Equivalent Availability Factor, or EAF — Measures the percentage of maximum generation available over time as the fraction of net maximum generation that could be provided over a defined period of time after all types of outages and deratings, including seasonal deratings, are taken into account.
Net Heat Rate — The net heat rate represents the total amount of fuel in BTU required to generate one net kWh provided.
Net Capacity Factor — The net amount of electricity that a generating unit produces over a period of time divided by the net amount of electricity it could have produced if it had run at full power over that time period. The net amount of electricity produced is the total amount of electricity generated minus the amount of electricity used during generation.
The tables below present these performance metrics for the Company's U.S. power generation portfolio, including leased facilities and those accounted for through equity method investments, for the years ended December 31, 2015, and 2014:
 
Year Ended December 31, 2015
 
 
 
 
 
Fossil and Nuclear Plants
 
Net Owned
Capacity (MW)
 
Net Generation (MWh)
 
Annual Equivalent Availability Factor
 
Average Net Heat Rate BTU/kWh
 
Net Capacity
Factor
 
(In thousands of MWh)
NRG Business
 
 
 
 
 
 
 
 
 
Gulf Coast
14,941

 
57,679

 
85.7
%
 
9,651

 
44.4
%
East
23,579

 
46,289

 
84.0

 
10,477

 
21.6

West
6,085

 
4,542

 
86.4

 
9,189

 
8.1

NRG Renew
1,966

 
4,461

 
95.0

 

 
39.4

NRG Yield (a)
4,565

 
10,471

 
95.7

 
8,651

 
22.9

 
Year Ended December 31, 2014
 
 
 
 
 
Fossil and Nuclear Plants
 
Net Owned
Capacity (MW)
 
Net Generation (MWh)
 
Annual Equivalent Availability Factor
 
Average Net Heat Rate BTU/kWh
 
Net Capacity
Factor
 
(In thousands of MWh)
NRG Business
 
 
 
 
 
 
 
 
 
Gulf Coast
15,412

 
59,871

 
86.6
%
 
9,694

 
44.6
%
East
24,607

 
51,192

 
81.6

 
10,367

 
24.0

West
7,132

 
4,241

 
91.2

 
9,132

 
7.1

NRG Renew
1,911

 
4,026

 

 

 

NRG Yield (a)
4,367

 
8,373

 
95.5

 
8,794

 
23.6

(a)
NRG Yield includes thermal generation.

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