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SEC Filing Details

10-K
NRG ENERGY, INC. filed this Form 10-K on 03/01/2018
Entire Document
 

 
Year Ended December 31, 2016
 
Generation
 
 
 
 
 
 
 
 
 
 
Gulf Coast
 
East/West
 
Retail
 
Renewables
 
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
$
(389
)
 
$
(89
)
 
$
(2
)
 
$

 
$

 
$
33

 
$
(447
)
Net unrealized (losses)/gains on open positions related to economic hedges
(129
)
 
41

 
2

 
(6
)
 

 
(103
)
 
(195
)
Total mark-to-market losses in operating revenues
$
(518
)
 
$
(48
)
 
$

 
$
(6
)
 
$

 
$
(70
)
 
$
(642
)
Mark-to-market results in operating costs and expenses
 
 
 
 
 
 
 
 
 
 
 
 
 
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges
$
31

 
$
16

 
$
305

 
$

 
$

 
$
(33
)
 
$
319

Reversal of acquired gain positions related to economic hedges

 
(12
)
 

 

 

 

 
(12
)
Net unrealized gains/(losses) on open positions related to economic hedges
40

 
(2
)
 
60

 

 

 
103

 
201

Total mark-to-market gains in operating costs and expenses
$
71

 
$
2

 
$
365

 
$

 
$

 
$
70

 
$
508

(a) Represents the elimination of the intercompany activity between Retail and Generation.
Mark-to-market results consist of unrealized gains and losses on contacts that are yet to be settled. The settlement of these transactions is reflected in the same revenue or cost caption as the items being hedged.
The reversals of acquired gain or loss positions were valued based upon the forward prices on the acquisition date.
For the year ended December 31, 2017, the $239 million gain in operating revenues from economic hedge positions was driven primarily by the reversal of previously recognized unrealized losses on contracts that settled during the period and an increase in value of open positions as a result of decreases in gas prices. The $46 million loss in operating costs and expenses from economic hedge positions was driven primarily by the reversal of previously recognized unrealized gains on contracts that settled during the period partially offset by an increase in the value of open positions as a result of increases in ERCOT heat rate.

In accordance with ASC 815, the following table represents the results of the Company's financial and physical trading of energy commodities for the years ended December 31, 2017 and 2016. The realized and unrealized financial and physical trading results are included in operating revenue. The Company's trading activities are subject to limits within the Company's Risk Management Policy and are primarily transacted through BETM.
 
Year ended December 31,
(In millions)
2017
 
2016
Trading gains/(losses)
 
 
 
Realized
$
43

 
$
71

Unrealized
(11
)
 
28

Total trading gains
$
32

 
$
99



75