|NRG ENERGY, INC. filed this Form 10-K on 02/29/2016|
Mark-to-market for Economic Hedging Activities
Mark-to-market for economic hedging activities includes asset-backed hedges that have not been designated as cash flow hedges and ineffectiveness on cash flow hedges. Total net mark-to-market results increased by $298 million in the year ended December 31, 2014, compared to the same period in 2013.
The breakdown of gains and losses included in operating revenues and operating costs and expenses by region are as follows:
Mark-to-market results consist of unrealized gains and losses. The settlement of these transactions is reflected in the same caption as the items being hedged.
For the year ended December 31, 2014, the $501 million gain in operating revenues from economic hedge positions was driven primarily by an increase in the value of open positions as a result of decreases in natural gas prices partially offset by the reversal of previously recognized unrealized gains on acquired contracts that settled during the period. The $488 million loss in operating costs and expenses from economic hedge positions was driven primarily from a decrease in the value of open positions as a result of decreases in natural gas and coal prices.