SEC Filings

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

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:
 
Year Ended December 31, 2014
 
 
 
NRG Business
 
 
 
 
 
 
 
 
 
NRG Home
 
Gulf Coast
 
East
 
West
 
B2B
 
NRG Renew
 
NRG Yield
 
Elimination(a)
 
Total
 
(In millions)
Mark-to-market results in operating revenues
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges
$

 
$
(6
)
 
$
10

 
$
(5
)
 
$

 
$
1

 
$

 
$
(1
)
 
$
(1
)
Reversal of acquired (gain)/loss positions related to economic hedges

 

 
(325
)
 
1

 

 

 

 

 
$
(324
)
Net unrealized gains/(losses) on open positions related to economic hedges

 
510

 
357

 
(7
)
 

 
3

 
2

 
(39
)
 
826

Total mark-to-market gains/(losses) in operating revenues
$

 
$
504

 
$
42

 
$
(11
)
 
$

 
$
4

 
$
2

 
$
(40
)
 
$
501

Mark-to-market results in operating costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges
$
(25
)
 
$
2

 
$
10

 
$

 
$
(2
)
 
$

 

 
$
1

 
$
(14
)
Reversal of acquired (gain)/loss positions related to economic hedges
(17
)
 

 
11

 

 
(3
)
 

 

 

 
(9
)
Net unrealized (losses)/gains on open positions related to economic hedges
(295
)
 
(25
)
 
(20
)
 
1

 
(166
)
 

 

 
40

 
(465
)
Total mark-to-market (losses)/gains in operating costs and expenses
$
(337
)
 
$
(23
)
 
$
1

 
$
1

 
$
(171
)
 
$

 
$

 
$
41

 
$
(488
)
(a)
Represents the elimination of the intercompany activity between NRG Home and NRG Business.
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.

82