SEC Filings

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


 
Years ended December 31,
 
 
Weather Metrics
Gulf Coast (b)
 
East
 
West
 
 
2015
 
 
 
 
 
 
 
CDDs (a)
2,870

 
1,336

 
1,111

 
 
HDDs (a)
1,887

 
4,697

 
1,948

 
 
2014
 
 
 
 
 
 
 
CDDs
2,737

 
1,068

 
1,158

 
 
HDDs
2,157

 
5,123

 
1,712

 
 
10 year average
 
 
 
 
 
 
 
CDDs
2,901

 
1,188

 
821

 
 
HDDs
1,900

 
4,712

 
2,404

 
 
(a)
National Oceanic and Atmospheric Administration-Climate Prediction Center - A Cooling Degree Day, or CDD, represents the number of degrees that the mean temperature for a particular day is above 65 degrees Fahrenheit in each region. A Heating Degree Day, or HDD, represents the number of degrees that the mean temperature for a particular day is below 65 degrees Fahrenheit in each region. The CDDs/HDDs for a period of time are calculated by adding the CDDs/HDDs for each day during the period.
(b) CDDs/HDDs for the Gulf Coast region represent an average of cumulative population-weighted CDDs/HDDs for Texas and the West South-Central Climate region.

NRG Business economic gross margin
NRG Business economic gross margin increased by $2 million, including intercompany sales, during the year ended December 31, 2015, compared to the same period in 2014, due to:
 
(In millions)
Increase in Gulf Coast region
$
188

Decrease in East region
(161
)
Decrease in West region
(42
)
Increase in B2B
17

 
$
2

The increase in economic gross margin in the Gulf Coast region was driven by:
 
(In millions)
Higher gross margin, which reflects a decrease in ERCOT merchant power prices, offset by the impact of beneficial hedges, as well as a decrease in natural gas prices
$
174

Higher gross margin due to an increase in capacity revenue from higher pricing for certain South Central facilities as well as an increase in average realized prices which reflects the impact of beneficial hedges
139

Higher gross margin from an increase in gas generation in Texas, which reflects lower supply costs from lower natural gas prices
28

Lower gross margin due to lower coal generation in Texas, which was driven by lower natural gas prices
(71
)
Lower capacity revenue due to the expiration of contracts in Texas and South Central
(49
)
Lower coal gross margin due to lower coal generation in South Central, primarily for the conversion of Big Cajun Unit 2 to gas
(32
)
Lower gross margin from decrease in nuclear generation driven by increased planned and unplanned outages
(21
)
Changes in commercial optimization and other
20

 
$
188


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