SEC Filings

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


 
 
Year Ended December 31,
Weather Metrics
Gulf Coast (b)
 
East
 
West
2014
 
 
 
 
 
CDDs (a)
2,737

 
1,068

 
1,158

HDDs (a)
2,157

 
5,123

 
1,712

2013
 
 
 
 
 
CDDs
2,787

 
1,173

 
819

HDDs
2,148

 
4,852

 
2,272

10 year average
 
 
 
 
 
CDDs
2,885

 
1,183

 
786

HDDs
1,866

 
4,691

 
2,464

(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 $400 million, including intercompany sales, during the year ended December 31, 2014, compared to the same period in 2013, due to:
 
(In millions)
Decrease in Gulf Coast region
$
(101
)
Increase in East region
499

Increase in West region
22

Decrease in B2B
(20
)
 
$
400

The decrease in economic gross margin in the Gulf Coast region was driven by:
 
(In millions)
Lower gross margin which reflects an increase in ERCOT merchant power prices, offset by the negative impact of hedges, partially offset by higher realized prices in MISO
$
(140
)
Lower gross margin from bilateral contracts with load serving entities, including affiliates
(35
)
Higher gross margin from a 16% increase in nuclear generation driven by reduced unplanned outages
35

Higher gross margin from lower coal transportation costs and lower transmission expenses driven by the move to MISO
30

Change in commercial optimization activities and other
9

 
$
(101
)
The increase in economic gross margin in the East region was driven by:
 
(In millions)
Higher gross margin due to the EME acquisition in April 2014
$
297

Higher gross margin primarily from a 5% increase in generation and a 6% increase in realized energy prices
127

Higher gross margin from a 33% increase in New York and New England hedged capacity prices. In New York, the higher prices were driven by the new Lower Hudson Valley Capacity Zone
77

Lower gross margin from a 7% decrease in PJM hedged capacity prices
(35
)
Change in commercial optimization activities and other
33

 
$
499


79