NRG Home Retail economic gross margin
The following is a discussion of economic gross margin for NRG Home Retail.
Selected Income Statement Data
Years ended December 31,
(In millions except otherwise noted)
Home Retail revenue (a)
Supply management revenue
Cost of sales (b)
Economic gross margin
Electricity sales volume (GWh) - Gulf Coast
Electricity sales volume (GWh) - All other regions
Average NRG Home customer count (in thousands) (c)
NRG Home customer count (in thousands) (c)
Includes intercompany sales of $9 million and $9 million, respectively
Includes intercompany purchases of $1,846 million and $2,097 million, respectively.
Excludes Discrete customers.
NRG Home Retail economic gross margin increased $107 million for the year ended December 31, 2014, compared to the same period in 2013, driven by:
Increase in margins due to higher commodity, home and business services revenues offset by higher supply costs
Increase from the acquisition of Dominion's competitive retail electric business in March 2014
Adverse weather impact due to higher supply costs on the incremental weather volumes in 2014 compared to 2013
NRG Home Solar economic gross margin
NRG Home Solar had economic gross margin of $9 million in the year ended December 31, 2014 compared to $4 million in the prior year. The increase related primarily to lease revenue from additional solar energy systems that began operating in 2014.
NRG Renew economic gross margin
NRG Renew had economic gross margin of $413 million for the year ended December 31, 2014, compared to $207 million for the same period in 2013. The increase in economic gross margin was primarily the result of $102 million related to the CVSR and Ivanpah projects which reached commercial operations in late 2013 and early 2014, respectively, and $70 million related to the projects within the Renew segment that were acquired in the EME acquisition in April 2014.
NRG Yield economic gross margin
NRG Yield had economic gross margin of $684 million for the year ended December 31, 2014, compared to economic gross margin of $320 million for the same period in 2013. The increase was primarily due to $162 million from the acquisition of the January 2015 Drop Down Assets and the November 2015 Drop Down Assets, which were primarily acquired by NRG in April 2014, $109 million from Marsh Landing and El Segundo Energy Center, which both reached commercial operations in 2013, $64 million from the acquisition of the Alta Wind Assets in August 2014 and $15 million from the acquisition of Energy Systems Company in December 2013.