SEC Filings

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

Economic gross margin
The Company evaluates its operating performance using the measure of economic gross margin, which is not a GAAP measure and may not be comparable to other companies’ presentations or deemed more useful than the GAAP information provided elsewhere in this report. The Company believes that economic gross margin is useful to investors as it is a key operational measure reviewed by the Company's chief operating decision maker. Economic gross margin is defined as the sum of energy revenue, capacity revenue, retail revenue and other revenue, less cost of sales.
Economic gross margin excludes the following elements from gross margin: mark-to-market gains or losses on economic hedging activities, contract amortization and emission credit amortization.
The following tables present the composition of economic gross margin, business metrics and weather metrics for the years ended December 31, 2015, and 2014:
 
Year ended December 31, 2015
 
NRG Business
 
NRG Home
 
 
 
 
 
 
 
 
(In millions except otherwise noted)
Gulf Coast
 
East
 
West
 
B2B
 
Elim-inations
 
Subtotal
 
Retail
 
Solar
 
NRG Renew
 
NRG Yield
 
Elim-inations/Corporate
 
Total
Energy revenue
$
2,548

 
$
2,926

 
$
269

 
$

 
$

 
$
5,743

 
$

 
$

 
$
444

 
$
405

 
$
(1,098
)
 
$
5,494

Capacity revenue
291

 
1,345

 
195

 
6

 

 
1,837

 

 

 

 
341

 
(14
)
 
2,164

Retail revenue

 

 

 
1,499

 

 
1,499

 
5,389

 
32

 

 

 
(7
)
 
6,913

Other revenue
70

 
68

 
11

 
208

 
(59
)
 
298

 

 

 
34

 
179

 
(124
)
 
387

Operating revenue
2,909

 
4,339

 
475

 
1,713

 
(59
)
 
9,377

 
5,389

 
32

 
478

 
925

 
(1,243
)
 
14,958

Cost of fuel
(1,214
)
 
(1,446
)
 
(159
)
 

 

 
(2,819
)
 
(8
)
 

 
(4
)
 
(43
)
 
62

 
(2,812
)
Other costs of sales
(237
)
 
(493
)
 
(33
)
 
(1,468
)
 

 
(2,231
)
 
(3,883
)
 
(17
)
 
(3
)
 
(28
)
 
1,136

 
(5,026
)
Economic gross margin
$
1,458

 
$
2,400

 
$
283

 
$
245

 
$
(59
)
 
$
4,327

 
$
1,498

 
$
15

 
$
471

 
$
854

 
$
(45
)
 
$
7,120

Business Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MWh sold (thousands)(a)(b)
61,599

 
46,917

 
6,317

 
 
 
 
 
 
 
 
 
 
 
4,408

 
5,740

 
 
 
 
MWh generated (thousands)(c)
57,679

 
46,289

 
4,542

 
 
 
 
 
 
 
 
 
 
 
4,461

 
8,227

 
 
 
 
Electricity sales volume (GWh)
 
 
 
 
 
 
19,342

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average customer count (thousands, metered locations)
 
 
 
 
 
 
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) MWh sold excludes generation at facilities that generate revenue under capacity agreements.
(b) Does not include MWh of 297 thousand or MWt of 1,946 thousand for thermal sold by NRG Yield.
(c) Does not include MWh of 205 thousand or MWt of 1,946 thousand for thermal generation by NRG Yield.

 
Year ended December 31, 2014
 
NRG Business
 
NRG Home
 
 
 
 
 
 
 
 
(In millions except otherwise noted)
Gulf Coast
 
East
 
West
 
B2B
 
Elim-inations
 
Subtotal
 
Retail
 
Solar
 
NRG Renew
 
NRG Yield
 
Elim-inations/Corporate
 
Total
Energy revenue
$
2,711

 
$
3,439

 
$
326

 
$

 
$

 
$
6,476

 
$

 
$

 
$
384

 
$
270

 
$
(1,708
)
 
$
5,422

Capacity revenue
260

 
1,269

 
257

 
1

 

 
1,787

 

 

 
1

 
321

 
(22
)
 
2,087

Retail revenue

 

 

 
1,870

 

 
1,870

 
5,502

 
42

 

 

 
(38
)
 
7,376

Other revenue
86

 
107

 
8

 
189

 
(50
)
 
340

 

 

 
39

 
182

 
(66
)
 
495

Operating revenue
3,057

 
4,815

 
591

 
2,060

 
(50
)
 
10,473

 
5,502

 
42

 
424

 
773

 
(1,834
)
 
15,380

Cost of fuel
(1,494
)
 
(1,841
)
 
(235
)
 

 

 
(3,570
)
 
(16
)
 

 
(4
)
 
(62
)
 
75

 
(3,577
)
Other costs of sales
(293
)
 
(413
)
 
(31
)
 
(1,832
)
 

 
(2,569
)
 
(4,207
)
 
(33
)
 
(7
)
 
(27
)
 
1,797

 
(5,046
)
Economic gross margin
$
1,270

 
$
2,561

 
$
325

 
$
228

 
$
(50
)
 
$
4,334

 
$
1,279

 
$
9

 
$
413

 
$
684

 
$
38

 
$
6,757

Business Metrics
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MWh sold (thousands)(a)(b)
63,860

 
49,619

 
4,769

 
 
 
 
 
 
 
 
 
 
 
4,026

 
3,977

 
 
 
 
MWh generated (thousands)(c)
59,872

 
51,191

 
4,241

 
 
 
 
 
 
 
 
 
 
 
4,026

 
6,108

 
 
 
 
Electricity sales volume (GWh)
 
 
 
 
 
 
21,816

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average customer count (thousands, metered locations)
 
 
 
 
 
 
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(a) MWh sold excludes generation at facilities that generate revenue under capacity agreements.
(b) Does not include MWh of 205 thousand or MWt of 2,060 thousand for thermal sold by NRG Yield.
(c) Does not include MWh of 224 thousand or MWt of 2,060 thousand for thermal generation by NRG Yield.

68