SEC Filings

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

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)
2014
 
2013
Home Retail revenue (a)
$
5,269

 
$
4,257

Supply management revenue
233

 
134

Operating revenues
$
5,502

 
$
4,391

Cost of sales (b)
(4,223
)
 
(3,219
)
Economic gross margin
$
1,279

 
$
1,172

 
 
 
 
Business Metrics
 
 
 
Electricity sales volume (GWh) - Gulf Coast
33,284

 
29,784

Electricity sales volume (GWh) - All other regions
8,218

 
4,363

Average NRG Home customer count (in thousands) (c)
2,718

 
2,190

NRG Home customer count (in thousands) (c)
2,844

 
2,217

(a)
Includes intercompany sales of $9 million and $9 million, respectively
(b)
Includes intercompany purchases of $1,846 million and $2,097 million, respectively.
(c)
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:
 
(In millions)
Increase in margins due to higher commodity, home and business services revenues offset by higher supply costs
$
92

Increase from the acquisition of Dominion's competitive retail electric business in March 2014
70

Adverse weather impact due to higher supply costs on the incremental weather volumes in 2014 compared to 2013
(55
)
 
$
107


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.

81