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SEC Filing Details

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

Generation gross margin and economic gross margin
Generation gross margin decreased $670 million and economic gross margin decreased $366 million, both of which include intercompany sales, during the year ended December 31, 2016, compared to the same period in 2015.

The tables below describe the decrease in Generation gross margin and economic gross margin:

Gulf Coast Region
 
(In millions)
Lower gross margin resulting from lower average realized energy prices due to a decline in natural gas prices and increased wind generation in Texas
$
(148
)
Lower gross margin primarily due to 11% lower coal generation and 21% lower gas generation in Texas, which was driven by lower gas prices, increased wind generation in Texas, an increase in unplanned outages and timing of planned outages
(82
)
Higher gross margin resulting from a 12% increase in nuclear generation driven by reduced unplanned outages and the timing of planned outages
55

Other
5

Decrease in economic gross margin
$
(170
)
Decrease in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges
(364
)
Decrease in contract and emission credit amortization
(1
)
Decrease in gross margin
$
(535
)

East/West Region
 
(In millions)
Lower gross margin due to a 24% decrease in generation primarily driven by the environmental control work at Powerton and fuel conversion projects at Joliet
$
(141
)
Lower gross margin due to decreased realized capacity prices in New York due to a change in the mix of capacity resources and a 15% decrease in PJM cleared auction prices
(79
)
Lower gross margin due to the deactivation of the Huntley and Dunkirk facilities as well as the sale of the Rockford
(66
)
Lower gross margin due to lower contracted volumes
(12
)
Lower gross margin due to a decrease in realized energy prices due to the decline in natural gas prices
(12
)
Lower gross margin due to a 7% decrease in resource adequacy capacity volumes sold in California due to unit retirements and a 4% decrease in price
(10
)
Higher gross margin by BETM due to higher gains in 2016 on over the counter strategies
88

Changes in commercial optimization activities
50

Other
(14
)
Decrease in economic gross margin
$
(196
)
Increase in mark-to-market for economic hedging primarily due to net unrealized gains/losses on open positions related to economic hedges
59

Increase in contract and emission credit amortization
2

Decrease in gross margin
$
(135
)


83