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EX-32 - EXHIBIT 32 - NRG ENERGY, INC.ex32q12018.htm
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EX-31.2 - EXHIBIT 31.2 - NRG ENERGY, INC.ex312q12018.htm
EX-31.1 - EXHIBIT 31.1 - NRG ENERGY, INC.ex311q12018.htm

                                            
 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
x
 
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
 
 
 
For the Quarterly Period Ended: March 31, 2018
 
 
 
o
 
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Commission File Number: 001-15891
NRG Energy, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation or organization)
 
41-1724239
(I.R.S. Employer
Identification No.)
 
 
 
804 Carnegie Center, Princeton, New Jersey
(Address of principal executive offices)
 
08540
(Zip Code)
(609) 524-4500
(Registrant’s telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x       No o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes x       No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer x
 
Accelerated filer o
 
Non-accelerated filer o
 
Smaller reporting company o
Emerging growth company o
 
 
 
 
(Do not check if a smaller reporting company)
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o  
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o       No x
As of March 31, 2018, there were 314,886,197 shares of common stock outstanding, par value $0.01 per share.
 



TABLE OF CONTENTS
Index



2


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This Quarterly Report on Form 10-Q of NRG Energy, Inc., or NRG or the Company, includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or Exchange Act. The words "believes," "projects," "anticipates," "plans," "expects," "intends," "estimates" and similar expressions are intended to identify forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause NRG's actual results, performance and achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These factors, risks and uncertainties include the factors described under Item 1A — Risk Factors Related to NRG Energy, Inc., in Part I, Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2017, and the following:
NRG's ability to achieve the expected benefits of its Transformation Plan;
NRG's ability to engage in successful sales and divestitures as well as mergers and acquisitions activity;
The potential adverse effects of the GenOn Entities' filings under Chapter 11 of the Bankruptcy Code and restructuring transactions on NRG's operations, management and employees and the risks associated with operating NRG's business during the restructuring process;
Risks and uncertainties associated with the GenOn Entities' Chapter 11 Cases including the ability to achieve anticipated benefits therefrom;
General economic conditions, changes in the wholesale power markets and fluctuations in the cost of fuel;
Volatile power supply costs and demand for power;
Changes in law, including judicial decisions;
Hazards customary to the power production industry and power generation operations such as fuel and electricity price volatility, unusual weather conditions (including wind and solar conditions), catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to fuel supply costs or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission or gas pipeline system constraints and the possibility that NRG may not have adequate insurance to cover losses as a result of such hazards;
The effectiveness of NRG's risk management policies and procedures, and the ability of NRG's counterparties to satisfy their financial commitments;
Counterparties' collateral demands and other factors affecting NRG's liquidity position and financial condition;
NRG's ability to operate its businesses efficiently and generate earnings and cash flows from its asset-based businesses in relation to its debt and other obligations;
NRG's ability to enter into contracts to sell power and procure fuel on acceptable terms and prices;
The liquidity and competitiveness of wholesale markets for energy commodities;
Government regulation, including changes in market rules, rates, tariffs and environmental laws;
Price mitigation strategies and other market structures employed by ISOs or RTOs that result in a failure to adequately and fairly compensate NRG's generation units;
NRG's ability to mitigate forced outage risk for units subject to capacity performance requirements in PJM, performance incentives in ISO-NE, and scarcity pricing in ERCOT;
NRG's ability to borrow funds and access capital markets, as well as NRG's substantial indebtedness and the possibility that NRG may incur additional indebtedness going forward;
Operating and financial restrictions placed on NRG and its subsidiaries that are contained in the indentures governing NRG's outstanding notes, in NRG's Senior Credit Facility, and in debt and other agreements of certain of NRG subsidiaries and project affiliates generally;
Cyber terrorism and inadequate cybersecurity, or the occurrence of a catastrophic loss and the possibility that NRG may not have adequate insurance to cover losses resulting from such hazards or the inability of NRG's insurers to provide coverage;
NRG's ability to develop and build new power generation facilities;
NRG's ability to develop and innovate new products as retail and wholesale markets continue to change and evolve;
NRG's ability to implement its strategy of finding ways to meet the challenges of climate change, clean air and protecting natural resources while taking advantage of business opportunities;
NRG's ability to increase cash from operations through operational and commercial initiatives, corporate efficiencies, asset strategy, and a range of other programs throughout NRG to reduce costs or generate revenues;
NRG's ability to sell assets to NRG Yield, Inc. and to close drop-down transactions;

3


NRG's ability to achieve its strategy of regularly returning capital to stockholders;
NRG's ability to obtain and maintain retail market share;
NRG's ability to successfully evaluate investments and achieve intended financial results in new business and growth initiatives;
NRG's ability to successfully integrate, realize cost savings and manage any acquired businesses; and
NRG's ability to develop and maintain successful partnering relationships.
Forward-looking statements speak only as of the date they were made, and NRG Energy, Inc. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing review of factors that could cause NRG's actual results to differ materially from those contemplated in any forward-looking statements included in this Quarterly Report on Form 10-Q should not be construed as exhaustive.

4


GLOSSARY OF TERMS
When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:
2017 Form 10-K
 
NRG’s Annual Report on Form 10-K for the year ended December 31, 2017
2023 Term Loan Facility
 
The Company's $1.9 billion term loan facility due 2023, a component of the Senior Credit Facility
Adjusted EBITDA
 
Adjusted earnings before interest, taxes, depreciation and amortization
ARO
 
Asset Retirement Obligation
ASC
 
The FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP
ASU
 
Accounting Standards Updates - updates to the ASC
Average realized prices
 
Volume-weighted average power prices, net of average fuel costs and reflecting the impact of settled hedges
BACT
 
Best Available Control Technology
Bankruptcy Code
 
Chapter 11 of Title 11 the U.S. Bankruptcy Code
Bankruptcy Court
 
United States Bankruptcy Court for the Southern District of Texas, Houston Division
BETM
 
Boston Energy Trading and Marketing LLC
BTU
 
British Thermal Unit
Business Solutions
 
NRG's business solutions group, which includes demand response, commodity sales, energy efficiency and energy management services
CAA
 
Clean Air Act
CAIR
 
Clean Air Interstate Rule
CAISO
 
California Independent System Operator
CASPR
 
Competitive Auctions with Sponsored Resources
CDD
 
Cooling Degree Day
CDWR
 
California Department of Water Resources
CEC
 
California Energy Commission
CenterPoint
 
CenterPoint Energy Houston Electric, LLC
CFTC
 
U.S. Commodity Futures Trading Commission
Chapter 11 Cases
 
Voluntary cases commenced by the GenOn Entities under the Bankruptcy Code in the Bankruptcy Court
C&I
 
Commercial industrial and governmental/institutional
Cleco
 
Cleco Energy LLC
COD
 
Commercial Operation Date
ComEd
 
Commonwealth Edison
Company
 
NRG Energy, Inc.
CPUC
 
California Public Utilities Commission
CSAPR
 
Cross-State Air Pollution Rule
CVSR
 
California Valley Solar Ranch
CWA
 
Clean Water Act
D.C. Circuit
 
U.S. Court of Appeals for the District of Columbia Circuit
DGPV Holdco 1
 
NRG DGPV Holdco 1 LLC
DGPV Holdco 2
 
NRG DGPV Holdco 2 LLC
DGPV Holdco 3
 
NRG DGPV Holdco 3 LLC
Distributed Solar
 
Solar power projects that primarily sell power to customers for usage on site, or are interconnected to sell power into a local distribution grid

5


DNREC
 
Delaware Department of Natural Resources and Environmental Control
DSI
 
Dry Sorbent Injection
Economic gross margin
 
Sum of energy revenue, capacity revenue, retail revenue and other revenue, less cost of fuels and other cost of sales
El Segundo Energy Center
 
NRG West Holdings LLC, the subsidiary of Natural Gas Repowering LLC, which owns the El Segundo Energy Center project
EME
 
Edison Mission Energy
Energy Plus Holdings
 
Energy Plus Holdings LLC
EPA
 
U.S. Environmental Protection Agency
EPC
 
Engineering, Procurement and Construction
EPSA
 
The Electric Power Supply Association
ERCOT
 
Electric Reliability Council of Texas, the Independent System Operator and the regional reliability coordinator of the various electricity systems within Texas
ESP
 
Electrostatic Precipitator
ESPP
 
NRG Energy, Inc. Amended and Restated Employee Stock Purchase Plan
ESPS
 
Existing Source Performance Standards
Exchange Act
 
The Securities Exchange Act of 1934, as amended
FASB
 
Financial Accounting Standards Board
FERC
 
Federal Energy Regulatory Commission
FGD
 
Flue gas desulfurization
Fresh Start
 
Reporting requirements as defined by ASC-852, Reorganizations
FTRs
 
Financial Transmission Rights
GAAP
 
Accounting principles generally accepted in the U.S.
GenConn
 
GenConn Energy LLC
GenOn
 
GenOn Energy, Inc.
GenOn Americas Generation
 
GenOn Americas Generation, LLC
GenOn Americas Generation Senior Notes
 
GenOn Americas Generation's $395 million outstanding unsecured senior notes consisting of $208 million of 8.5% senior notes due 2021 and $187 million of 9.125% senior notes due 2031
GenOn Entities
 
GenOn and certain of its wholly owned subsidiaries, including GenOn Americas Generation. that filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court on June 14, 2017
GenOn Mid-Atlantic
 
GenOn Mid-Atlantic, LLC and, except where the context indicates otherwise, its subsidiaries, which include the coal generation units at two generating facilities under operating leases
GenOn Senior Notes
 
GenOn's $1.8 billion outstanding unsecured senior notes consisting of $691 million of 7.875% senior notes due 2017, $649 million of 9.5% senior notes due 2018, and $489 million of 9.875% senior notes due 2020
GHG
 
Greenhouse Gas
GIP
 
Global Infrastructure Partners
GW
 
Gigawatt
GWh
 
Gigawatt Hour
HAP
 
Hazardous Air Pollutant
HDD
 
Heating Degree Day
Heat Rate
 
A measure of thermal efficiency computed by dividing the total BTU content of the fuel burned by the resulting kWhs generated. Heat rates can be expressed as either gross or net heat rates, depending whether the electricity output measured is gross or net generation and is generally expressed as BTU per net kWh
HLBV
 
Hypothetical Liquidation at Book Value
IASB
 
International Accounting Standards Board
IFRS
 
International Financial Reporting Standards

6


IPA
 
Illinois Power Agency
IPPNY
 
Independent Power Producers of New York
ISO
 
Independent System Operator, also referred to as RTOs
ISO-NE
 
ISO New England Inc.
ITC
 
Investment Tax Credit
kWh
 
Kilowatt-hour
LaGen
 
Louisiana Generating, LLC
LIBOR
 
London Inter-Bank Offered Rate
LTIPs
 
Collectively, the NRG LTIP and the NRG GenOn LTIP
Marsh Landing
 
NRG Marsh Landing, LLC (formerly known as GenOn Marsh Landing, LLC)
Mass Market
 
Residential and small commercial customers
MATS
 
Mercury and Air Toxics Standards promulgated by the EPA
MDth
 
Thousand Dekatherms
Midwest Generation
 
Midwest Generation, LLC
MISO
 
Midcontinent Independent System Operator, Inc.
MMBtu
 
Million British Thermal Units
MOPR
 
Minimum Offer Price Rule
MW
 
Megawatts
MWh
 
Saleable megawatt hour net of internal/parasitic load megawatt-hour
MWt
 
Megawatts Thermal Equivalent
NAAQS
 
National Ambient Air Quality Standards
NEPGA
 
New England Power Generators Association
NEPOOL
 
New England Power Pool
NERC
 
North American Electric Reliability Corporation
Net Exposure
 
Counterparty credit exposure to NRG, net of collateral
Net Generation
 
The net amount of electricity produced, expressed in kWhs or MWhs, that is the total amount of electricity generated (gross) minus the amount of electricity used during generation
NOL
 
Net Operating Loss
NOV
 
Notice of Violation
NOx
 
Nitrogen Oxides
NPDES
 
National Pollutant Discharge Elimination System
NPNS
 
Normal Purchase Normal Sale
NRC
 
U.S. Nuclear Regulatory Commission
NRG
 
NRG Energy, Inc.
NRG Yield
 
Reporting segment including the projects owned by NRG Yield, Inc.
NRG Yield 2019 Convertible Notes
 
$345 million aggregate principal amount of 3.50% Convertible Senior Notes due 2019 issued by NRG Yield, Inc.
NRG Yield 2020 Convertible Notes
 
$287.5 million aggregate principal amount of 3.25% Convertible Notes due 2020 issued by NRG Yield, Inc.
NRG Yield, Inc.
 
NRG Yield, Inc., the owner of 53.7% of the economic interests of NRG Yield LLC with a controlling interest, and issuer of publicly held shares of Class A and Class C common stock
NSR
 
New Source Review
Nuclear Decommissioning Trust Fund
 
NRG's nuclear decommissioning trust fund assets, which are for the Company's portion of the decommissioning of the STP, units 1 & 2
NYAG
 
State of New York Office of Attorney General
NYISO
 
New York Independent System Operator
NYMEX
 
New York Mercantile Exchange
NYSPSC
 
New York State Public Service Commission
OCI/OCL
 
Other Comprehensive Income/(Loss)

7


Peaking
 
Units expected to satisfy demand requirements during the periods of greatest or peak load on the system
PER
 
Peak Energy Rent
Petition Date
 
June 14, 2017
Pipeline
 
Projects that range from identified lead to shortlisted with an offtake, and represents a lower level of execution certainty.
PJM
 
PJM Interconnection, LLC
PPA
 
Power Purchase Agreement
PSD
 
Prevention of Significant Deterioration
PTC
 
Production Tax Credit
PUCT
 
Public Utility Commission of Texas
PUHCA
 
Public Utility Holding Company Act of 2005
RCRA
 
Resource Conservation and Recovery Act of 1976
REMA
 
NRG REMA LLC, which leases a 100% interest in the Shawville generating facility and 16.7% and 16.5% interests in the Keystone and Conemaugh generating facilities, respectively
Restructuring Support Agreement
 
Restructuring Support and Lock-Up Agreement, dated as of June 12, 2017 and as amended on October 2, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, and subsidiaries signatory thereto, NRG Energy, Inc. and the noteholders signatory thereto
Retail
 
Reporting segment that includes NRG's residential and small commercial businesses which go to market as Reliant, NRG and other brands owned by NRG, as well as Business Solutions
Revolving Credit Facility
 
The Company’s $2.5 billion revolving credit facility, a component of the Senior Credit Facility. The revolving credit facility consists of $289 million of Tranche A Revolving Credit Facility, due 2018, and $2.2 billion of Tranche B Revolving Credit Facility, due 2021
RFO
 
Request for Offer
RGGI
 
Regional Greenhouse Gas Initiative
RMR
 
Reliability Must-Run
ROFO
 
Right of First Offer
ROFO Agreement
 
Second Amended and Restated Right of First Offer Agreement by and between NRG Energy, Inc. and NRG Yield, Inc.
RPM
 
Reliability Pricing Model
RPV Holdco
 
NRG RPV Holdco 1 LLC
RTO
 
Regional Transmission Organization
RTR
 
Renewable Technology Resource
SCE
 
Southern California Edison
SDG&E
 
San Diego Gas & Electric
SEC
 
U.S. Securities and Exchange Commission
Securities Act
 
The Securities Act of 1933, as amended
Senior Credit Facility
 
NRG's senior secured credit facility, comprised of the Revolving Credit Facility and the 2023 Term Loan Facility
Senior Notes
 
As of December 31, 2017, NRG’s $4.8 billion outstanding unsecured senior notes consisting of $992 million of 6.25% senior notes due 2022, $733 million of 6.25% senior notes due 2024, $1.0 billion of 7.25% senior notes due 2026, $1.25 billion of 6.625% senior notes due 2027, and $870 million of 5.75% senior notes due 2028.
Settlement Agreement
 
A settlement agreement and any other documents necessary to effectuate the settlement among NRG, GenOn, and certain holders of senior unsecured notes of GenOn Americas Generation and GenOn, and certain of GenOn's direct and indirect subsidiaries
Services Agreement
 
NRG provided GenOn with various management, personnel and other services, which include human resources, regulatory and public affairs, accounting, tax, legal, information systems, treasury, risk management, commercial operations, and asset management, as set forth in the services agreement with GenOn

SIFMA
 
Securities Industry and Financial Markets Association

8


SO2
 
Sulfur Dioxide
South Central
 
NRG's South Central business, which owns and operates a 3,555-MW portfolio of generation assets consisting of 225-MW Bayou Cove, 430-MW Big Cajun-I, 1,461-MW Big Cajun-II, 1,263-MW Cottonwood and 176-MW Sterlington, and serves a customer base of cooperatives, municipalities and regional utilities under load contracts.
S&P
 
Standard & Poor's
TCPA
 
Telephone Consumer Protection Act
TSA
 
Transportation Services Agreement
TWCC
 
Texas Westmoreland Coal Co.
U.S.
 
United States of America
U.S. DOE
 
U.S. Department of Energy
Utility Scale Solar
 
Solar power projects, typically 20 MW or greater in size (on an alternating current basis), that are interconnected into the transmission or distribution grid to sell power at a wholesale level
VaR
 
Value at Risk
VCP
 
Voluntary Clean-Up Program
VIE
 
Variable Interest Entity
WECC
 
Western Electricity Coordinating Council
WST
 
Washington-St. Tammany Electric Cooperative, Inc.
Yield Operating
 
NRG Yield Operating LLC

9


PART I — FINANCIAL INFORMATION
ITEM 1 — CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND NOTES
NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
 
Three months ended March 31,
(In millions, except for per share amounts)
2018
 
2017
Operating Revenues

 

Total operating revenues
$
2,421


$
2,382

Operating Costs and Expenses

 

Cost of operations
1,558


1,862

Depreciation and amortization
235


257

Selling, general and administrative
191


260

Reorganization costs
20



Development costs
13


17

Total operating costs and expenses
2,017

 
2,396

   Other income - affiliate


48

   Gain on sale of assets
2


2

Operating Income
406


36

Other Income/(Expense)

 

Equity in (losses)/earnings of unconsolidated affiliates
(2
)

5

Other (expense)/income, net
(3
)

13

Loss on debt extinguishment, net
(2
)

(2
)
Interest expense
(167
)

(225
)
Total other expense
(174
)
 
(209
)
Income/(Loss) from Continuing Operations Before Income Taxes
232


(173
)
Income tax benefit
(1
)

(4
)
Income/(Loss) from Continuing Operations
233


(169
)
Loss from discontinued operations, net of income tax


(34
)
Net Income/(Loss)
233


(203
)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interests
(46
)

(40
)
Net Income/(Loss) Attributable to NRG Energy, Inc.
$
279


$
(163
)
Earnings/(Loss) per Share Attributable to NRG Energy, Inc. Common Stockholders



Weighted average number of common shares outstanding — basic
318


316

Income/(loss) from continuing operations per weighted average common share — basic
$
0.88


$
(0.41
)
Loss from discontinued operations per weighted average common share — basic
$


$
(0.11
)
Earnings/(Loss) per Weighted Average Common Share — Basic
$
0.88


$
(0.52
)
Weighted average number of common shares outstanding — diluted
322


316

Income/(loss) from continuing operations per weighted average common share — diluted
$
0.87


$
(0.41
)
Loss from discontinued operations per weighted average common share — diluted
$


$
(0.11
)
Earnings/(Loss) per Weighted Average Common Share — Diluted
$
0.87


$
(0.52
)
Dividends Per Common Share
$
0.03


$
0.03

See accompanying notes to condensed consolidated financial statements.

10



NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
(Unaudited)
 
Three months ended March 31,
 
2018

2017
 
(In millions)
Net income/(loss)
$
233

 
$
(203
)
Other comprehensive income/(loss), net of tax

 

Unrealized gain on derivatives, net of income tax expense of $0 and $1
14


4

Foreign currency translation adjustments, net of income tax expense of $0 and $0
(2
)

7

Defined benefit plans, net of income tax expense of $0 and $0
(1
)


Other comprehensive income
11

 
11

Comprehensive income/(loss)
244

 
(192
)
Less: Comprehensive loss attributable to noncontrolling interest and redeemable noncontrolling interest
(38
)

(39
)
Comprehensive income/(loss) attributable to NRG Energy, Inc.
282

 
(153
)
Comprehensive income/(loss) available for common stockholders
$
282

 
$
(153
)
See accompanying notes to condensed consolidated financial statements.

11


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except shares)
March 31, 2018

December 31, 2017
ASSETS
 
 
 
Current Assets
 


Cash and cash equivalents
$
764


$
991

Funds deposited by counterparties
241


37

Restricted cash
407


508

Accounts receivable, net
903


1,079

Inventory
528


532

Derivative instruments
1,015


626

Cash collateral paid in support of energy risk management activities
211


171

Accounts receivable - affiliate
73


95

Current assets - held for sale
89


115

Prepayments and other current assets
326


261

Total current assets
4,557


4,415

Property, plant and equipment, net
13,911


13,908

Other Assets
 

 
Equity investments in affiliates
1,011


1,038

Goodwill
539


539

 Intangible assets, net
1,726


1,746

Nuclear decommissioning trust fund
680


692

Derivative instruments
354


172

Deferred income taxes
136


134

Non-current assets held-for-sale
157


43

Other non-current assets
681


631

Total other assets
5,284


4,995

Total Assets
$
23,752


$
23,318

LIABILITIES AND STOCKHOLDERS’ EQUITY
 

 
Current Liabilities
 

 
Current portion of long-term debt and capital leases
$
956


$
688

Accounts payable
787


881

Accounts payable - affiliate
32


33

Derivative instruments
790


555

Cash collateral received in support of energy risk management activities
240


37

Current liabilities held-for-sale
80


72

Accrued expenses and other current liabilities
662


890

Accrued expenses and other current liabilities - affiliate
161


161

Total current liabilities
3,708


3,317

Other Liabilities
 

 
Long-term debt and capital leases
15,406


15,716

Nuclear decommissioning reserve
272


269

Nuclear decommissioning trust liability
400


415

Deferred income taxes
20


21

Derivative instruments
264


197

Out-of-market contracts, net
201


207

Non-current liabilities held-for-sale
7


8

Other non-current liabilities
1,136


1,122

Total non-current liabilities
17,706


17,955

Total Liabilities
21,414


21,272

Redeemable noncontrolling interest in subsidiaries
80


78

Commitments and Contingencies





Stockholders’ Equity



Common stock
4


4

Additional paid-in capital
8,379


8,376

Accumulated deficit
(5,982
)

(6,268
)
Less treasury stock, at cost — 104,518,931 and 101,580,045 shares, at March 31, 2018 and December 31, 2017, respectively
(2,474
)

(2,386
)
Accumulated other comprehensive loss
(61
)

(72
)
Noncontrolling interest
2,392


2,314

Total Stockholders’ Equity
2,258


1,968

Total Liabilities and Stockholders’ Equity
$
23,752


$
23,318

See accompanying notes to condensed consolidated financial statements.

12


NRG ENERGY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
Three months ended March 31,
(In millions)
2018

2017
Cash Flows from Operating Activities
 
 
 
Net income/(loss)
$
233


$
(203
)
Loss from discontinued operations, net of income tax


(34
)
Income/(loss) from continuing operations
233


(169
)
Adjustments to reconcile net income to net cash provided/(used) by operating activities:



Distributions and equity in earnings of unconsolidated affiliates
12


8

Depreciation and amortization
235


257

Provision for bad debts
15


9

Amortization of nuclear fuel
13


12

Amortization of financing costs and debt discount/premiums
14


15

Adjustment for debt extinguishment
2



Amortization of intangibles and out-of-market contracts
22


30

Amortization of unearned equity compensation
13


8

Changes in deferred income taxes and liability for uncertain tax benefits
(3
)

1

Changes in nuclear decommissioning trust liability
34


36

Changes in derivative instruments
(247
)

38

Changes in collateral deposits in support of energy risk management activities
163


(127
)
Gain on sale of emission allowances
(8
)


Gain on sale of assets
(2
)

(2
)
Changes in other working capital
(139
)

(198
)
Cash provided/(used) by continuing operations
357


(82
)
Cash provided by discontinued operations


15

Net Cash Provided/(Used) by Operating Activities
357


(67
)
Cash Flows from Investing Activities
 

 
Acquisitions of businesses, net of cash acquired
(62
)

(3
)
Capital expenditures
(358
)

(236
)
Decrease in notes receivable
3


4

Purchases of emission allowances
(17
)

(9
)
Proceeds from sale of emission allowances
23


11

Investments in nuclear decommissioning trust fund securities
(216
)

(153
)
Proceeds from the sale of nuclear decommissioning trust fund securities
182


117

Proceeds from sale of assets, net of cash disposed of
11


14

Changes in investments in unconsolidated affiliates
2


(12
)
Other


18

Cash used by continuing operations
(432
)

(249
)
Cash used by discontinued operations


(32
)
Net Cash Used by Investing Activities
(432
)

(281
)
Cash Flows from Financing Activities
 

 
Payment of dividends to common and preferred stockholders
(10
)

(9
)
Payment for treasury stock
(93
)


Net receipts from settlement of acquired derivatives that include financing elements


1

Proceeds from issuance of long-term debt
179


193

Payments for short and long-term debt
(228
)

(177
)
Net contributions from/(distributions to) noncontrolling interests in subsidiaries
110


(5
)
Payment of debt issuance costs
(7
)

(14
)
Other - contingent consideration


(10
)
Cash used by continuing operations
(49
)

(21
)
Cash used by discontinued operations


(132
)
 Net Cash Used by Financing Activities
(49
)

(153
)
Effect of exchange rate changes on cash and cash equivalents


(7
)
Change in Cash from discontinued operations


(149
)
Net Decrease in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash
(124
)

(359
)
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period
1,536


1,386

Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period
$
1,412


$
1,027

See accompanying notes to condensed consolidated financial statements.

13


NRG ENERGY, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
Note 1Basis of Presentation
General
NRG Energy, Inc., or NRG or the Company, is a customer-driven integrated power company built on a portfolio of leading retail electricity brands and diverse generation assets. NRG is continuously focused on serving the energy needs of end-use residential, commercial and industrial customers in competitive markets through multiple brands and channels. The Company:
directly sells energy and innovative, sustainable products and services to retail customers under the names “NRG”, “Reliant” and other retail brand names owned by NRG;
owns and operates approximately 30,000 MW of generation;
engages in the trading of wholesale energy, capacity and related products; and
transacts in and trades fuel and transportation services.
The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements in the Company's 2017 Form 10-K. Interim results are not necessarily indicative of results for a full year.
In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company's consolidated financial position as of March 31, 2018, and the results of operations, comprehensive income/(loss) and cash flows for the three months ended March 31, 2018 and 2017.
GenOn Chapter 11 Cases
On June 14, 2017, GenOn, along with GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries, or collectively the GenOn Entities, filed voluntary petitions for relief under Chapter 11, or the Chapter 11 Cases, of the U.S. Bankruptcy Code, in the U.S. Bankruptcy Court for the Southern District of Texas, Houston Division, or the Bankruptcy Court. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA and certain other subsidiaries, did not file for relief under Chapter 11.
As a result of the bankruptcy filings and beginning on June 14, 2017, GenOn and its subsidiaries were deconsolidated from NRG’s consolidated financial statements. NRG determined that this disposal of GenOn and its subsidiaries is a discontinued operation and, accordingly, the financial information for all historical periods has been recast to reflect GenOn as a discontinued operation.
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates.
Reclassifications
Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows.

14


Note 2Summary of Significant Accounting Policies
Other Balance Sheet Information
The following table presents the allowance for doubtful accounts included in accounts receivable, net; accumulated depreciation included in property, plant and equipment, net; accumulated amortization included in intangible assets, net and accumulated amortization included in out-of-market contracts, net:
 
March 31, 2018
 
December 31, 2017
 
(In millions)
Accounts receivable allowance for doubtful accounts
$
27

 
$
28

Property, plant and equipment accumulated depreciation
4,679

 
4,465

Intangible assets accumulated amortization
1,393

 
1,818

Out-of-market contracts accumulated amortization
364

 
358

Restricted Cash
The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheet that sum to the total of the same such amounts shown in the statement of cash flows.
 
March 31, 2018
 
December 31, 2017
 
March 31, 2017
 
December 31, 2016
 
(In millions)
Cash and cash equivalents
$
764

 
$
991

 
$
627

 
$
938

Funds deposited by counterparties
241

 
37

 
3

 
2

Restricted cash
407

 
508

 
397

 
446

Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows
$
1,412

 
$
1,536

 
$
1,027

 
$
1,386

Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties. Some amounts are segregated into separate accounts that are not contractually restricted but, based on the Company's intention, are not available for the payment of general corporate obligations. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the hedge counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities.
Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company's projects that are restricted in their use.
Noncontrolling Interest
The following table reflects the changes in NRG's noncontrolling interest balance:
 
(In millions)
Balance as of December 31, 2017
$
2,314

Dividends paid to NRG Yield, Inc. public shareholders
(30
)
Distributions to noncontrolling interest
(19
)
Comprehensive loss attributable to noncontrolling interest
(22
)
Non-cash adjustments to noncontrolling interest
6

Contributions from noncontrolling interest
147

Sale of assets to NRG Yield, Inc.
(4
)
Balance as of March 31, 2018
$
2,392



15


Redeemable Noncontrolling Interest
The following table reflects the changes in the Company's redeemable noncontrolling interest balance:
 
(In millions)
Balance as of December 31, 2017
$
78

Distributions to redeemable noncontrolling interest
(1
)
Contributions from redeemable noncontrolling interest
12

Non-cash adjustments to redeemable noncontrolling interest
7

Comprehensive loss attributable to redeemable noncontrolling interest
(16
)
Balance as of March 31, 2018
$
80

Revenue Recognition
Revenue from Contracts with Customers
On January 1, 2018, the Company adopted the guidance in ASC 606 using the modified retrospective method applied to contracts which were not completed as of the adoption date. The Company recognized the cumulative effect of initially applying the new standard as a credit to the opening balance of accumulated deficit, resulting in a decrease of approximately $16 million. The adjustment primarily related to costs incurred to obtain a contract with customers and customer incentives. Following the adoption of the new standard, the Company’s revenue recognition of its contracts with customers remains materially consistent with its historical practice. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. The Company's policies with respect to its various revenue streams are detailed below. In general, the Company applies the invoicing practical expedient to recognize revenue for the revenue streams detailed below, except in circumstances where the invoiced amount does not represent the value transferred to the customer.

Retail Revenues
Gross revenues for energy sales and services to retail customers are recognized as the Company transfers the promised goods and services to the customer. For the majority of its electricity contracts, the Company’s performance obligation with the customer is satisfied over time and performance obligations for its electricity products are recognized as the customer takes possession of the product. The Company also allocates the contract consideration to distinct performance obligation in a contract for which the timing of the revenue recognized is different. Additionally, customer discounts and incentives reduce the contract consideration and are recognized over the term of the contract.
Energy sales and services that have been delivered but not billed by period end are estimated. Accrued unbilled revenues are based on estimates of customer usage since the date of the last meter reading provided by the independent system operators or electric distribution companies. Volume estimates are based on daily forecasted volumes and estimated customer usage by class. Unbilled revenues are calculated by multiplying these volume estimates by the applicable rate by customer class. Estimated amounts are adjusted when actual usage is known and billed.
As contracts for retail electricity can be for multi-year periods, the Company has performance obligations under these contracts that have not yet been satisfied. These performance obligations have transaction prices that are both fixed and variable, and that vary based on the contract duration, customer type, inception date and other contract-specific factors. For the fixed price contracts, the amount of any unsatisfied performance obligations will vary based on customer usage, which will depend on factors such as weather and customer activity and therefore it is not practicable to estimate such amounts.
Energy Revenue
Both physical and financial transactions are entered into to optimize the financial performance of the Company's generating facilities. Electric energy revenue is recognized upon transmission to the customer over time, using the output method for measuring progress of satisfaction of performance obligations. Physical transactions, or the sale of generated electricity to meet supply and demand, are recorded on a gross basis in the Company's consolidated statements of operations. The Company applies the invoicing practical expedient, where applicable, in recognizing energy revenue. Under the practical expedient, revenue is recognized based on the invoiced amount which is equal to the value to the customer of NRG’s performance obligation completed to date. Financial transactions, or the buying and selling of energy for trading purposes, are recorded net within operating revenues in the consolidated statements of operations in accordance with ASC 815.

16


Capacity Revenue
Capacity revenues consist of revenues billed to a third party at either the market or a negotiated contract price for making installed generation capacity available in order to satisfy system integrity and reliability requirements. Capacity revenues are recognized over time, using the output method for measuring progress of satisfaction of performance obligations. The Company applies the invoicing practical expedient, where applicable, in recognizing capacity revenue. Under the practical expedient, revenue is recognized based on the invoiced amount which is equal to the value to the customer of NRG’s performance obligation completed to date.
Capacity revenue contracts mainly consist of:
Capacity auctions — The Company's largest sources of capacity revenues are capacity auctions in PJM, ISO-NE, and NYISO. Both ISO-NE and PJM operate a pay-for-performance model where capacity payments are modified based on real-time performance, where NRG's actual revenues will be the combination of revenues based on the cleared auction MWs plus the net of any over- and under-performance of NRG's fleet. In addition, MISO has an annual auction, known as the Planning Resource Auction, or PRA. The Gulf Coast assets situated in the MISO market may participate in this auction. Estimated revenues for cleared auction MWs in the various capacity auctions are $554 million, $508 million, $423 million, $222 million and $57 million for fiscal years 2018, 2019, 2020, 2021 and 2022, respectively.
Resource adequacy and bilateral contracts — In California, there is a resource adequacy requirement that is primarily satisfied through bilateral contracts. Such bilateral contracts are typically short-term resource adequacy contracts. When bilateral contracting does not satisfy the resource adequacy need, such shortfalls can be addressed through procurement tools administered by the CAISO, including the capacity procurement mechanism or reliability must-run contracts. Demand payments from the current long-term contracts are tied to summer peak demand and provide a mechanism for recovering a portion of the costs associated with new or changed environmental laws or regulations. In Texas, capacity and contracted revenues are through bilateral contracts with load serving entities.
Long-term PPAs — Energy, capacity and where applicable, renewable attributes, from the majority of renewable energy assets and certain conventional energy plants is sold through long-term PPAs and tolling agreements to a single counterparty, which is often a utility or commercial customer. Many of these PPAs are accounted for as leases.

Renewable Energy Credits
As stated above, renewable energy credits are usually sold through long-term PPAs. Revenue from the sale of self-generated RECs is recognized when related energy is generated and simultaneously delivered even in cases where there is a certification lag as it has been deemed to be perfunctory.
In a bundled contract to sell energy, capacity and/or self-generated RECs, all performance obligations are deemed to be delivered at the same time and hence, timing of recognition of revenue for all performance obligations is the same and occurs over time. In such cases, it is often unnecessary to allocate transaction price to multiple performance obligations.
Sale of Emission Allowances
The Company records its inventory of emission allowances as part of intangible assets. From time to time, management may authorize the transfer of emission allowances in excess of usage from the Company's emission bank to intangible assets held-for-sale for trading purposes. The Company records the sale of emission allowances on a net basis within operating revenue in the Company's consolidated statements of operations.

17


Disaggregated Revenues     
The following table represents the Company’s disaggregation of revenue from contracts with customers for the three months ended March 31, 2018, along with the reportable segment for each category:
 
Three months ended March 31, 2018
 
 
 
Generation
 
 
 
 
 
 
 
 
(In millions)
Retail
 
Gulf Coast
 
East/West(a)
 
Subtotal
 
Renewables
 
NRG Yield
 
Eliminations
 
Total
Energy revenue(a)(b)
$

 
$
371

 
$
218

 
$
589

 
$
77

 
$
114

 
$
(161
)
 
$
619

Capacity revenue(a)(b)

 
67

 
140

 
207

 

 
82

 
(1
)
 
288

Retail revenue


 


 


 


 


 


 


 

Mass customers
1,171

 

 

 

 

 

 
(1
)
 
1,170

Business solutions customers
316

 

 

 

 

 

 

 
316

Total retail revenue
1,487

 

 

 

 

 

 
(1
)
 
1,486

Mark-to-market for economic hedging activities(c)
(6
)
 
(564
)
 
(10
)
 
(574
)
 
(10
)
 

 
484

 
(106
)
Contract amortization

 
3

 

 
3

 

 
(17
)
 

 
(14
)
Other revenue(a)(b)

 
86

 
16

 
102

 
19

 
46

 
(19
)
 
148

Total operating revenue
1,481

 
(37
)
 
364

 
327

 
86

 
225

 
302

 
2,421

Less: Lease revenue
6

 

 
1

 
1

 
64

 
181

 

 
252

Less: Derivative revenue
(6
)
 
(188
)
 
80

 
(108
)
 
(10
)
 

 
484

 
360

Less: Contract amortization

 
3

 

 
3

 

 
(17
)
 

 
(14
)
Total revenue from contracts with customers
$
1,481

 
$
148

 
$
283

 
$
431

 
$
32

 
$
61

 
$
(182
)
 
$
1,823

(a) The following amounts of energy and capacity revenue relate to leases and are accounted for under ASC 840:
 
Retail
 
Gulf Coast
 
East/West
 
Subtotal
 
Renewables
 
NRG Yield
 
Eliminations
 
Total
Energy revenue

 

 

 

 
61

 
102

 

 
163

Capacity revenue

 

 

 

 

 
79

 

 
79

Other revenue
6

 

 
1

 
1

 
3

 

 

 
10

(b) The following amounts of energy and capacity revenue relate to derivative instruments and are accounted for under ASC 815.
 
Retail
 
Gulf Coast
 
East/West
 
Subtotal
 
Renewables
 
NRG Yield
 
Eliminations
 
Total
Energy revenue

 
371

 
61

 
432

 

 

 

 
432

Capacity revenue

 

 
26

 
26

 

 

 

 
26

Other revenue

 
5

 
3

 
8

 

 

 

 
8

(c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815.
Contract Amortization
Assets and liabilities recognized from power sales agreements assumed at Fresh Start and through acquisitions related to the sale of electric capacity and energy in future periods for which the fair value has been determined to be significantly less (more) than market are amortized to revenue over the term of each underlying contract based on actual generation and/or contracted volumes.
Lease Revenue
Certain of the Company’s revenues are obtained through PPAs or other contractual agreements. Many of these agreements are accounted for as operating leases under ASC 840 Leases. Certain of these leases have no minimum lease payments and all of the rent is recorded as contingent rent on an actual basis when the electricity is delivered. Judgment is required by management in determining the economic life of each generating facility, in evaluating whether certain lease provisions constitute minimum payments or represent contingent rent and other factors in determining whether a contract contains a lease and whether the lease is an operating lease or capital lease.

18


Contract Balances
The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of March 31, 2018:
 
 
 
(In millions)
 
March 31, 2018
Deferred customer acquisition costs
 
$
85

 
 
 
Accounts receivable, net - Contracts with customers
 
784

Accounts receivable, net - Leases
 
81

Accounts receivable, net - Derivative instruments
 
38

Total accounts receivable, net
 
903

 
 
 
Unbilled revenues (included within Accounts receivable, net - Contracts with customers)
 
292

 
 
 
Deferred revenues
 
63

The Company’s customer acquisition costs consist of broker fees, commission payments and other costs that represent incremental costs of obtaining the contract with customers for which the Company expects to recover. The Company amortizes these amounts over the estimated life of the customer contract. As a practical expedient, the Company expenses the incremental costs of obtaining a contract if the amortization period of the asset would have been one year or less.
When the Company receives consideration from the customer that is in excess of the amount due, such consideration is reclassified to deferred revenue, which represents a contract liability. Generally, the Company will recognize revenue from contract liabilities in the next period as the Company satisfies its performance obligations.
Recent Accounting Developments - Guidance Adopted in 2018
ASU 2017-07 — In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, or ASU No. 2017-07.   Current GAAP does not indicate where the amount of net benefit cost should be presented in an entity’s income statement and does not require entities to disclose the amount of net benefit cost that is included in the income statement. The amendments of ASU No. 2017-07 require an entity to report the service cost component of net benefit costs in the same line item as other compensation costs arising from services rendered by the related employees during the applicable service period. The other components of net benefit cost are required to be presented separately from the service cost component and outside the subtotal of income from operations. Further, ASU No. 2017-07 prescribes that only the service cost component of net benefit costs is eligible for capitalization. The Company adopted the amendments of ASU No. 2017-07 effective January 1, 2018. In connection with the adoption of the standard, the Company has applied the guidance retrospectively which resulted in an increase in cost of operations of $4 million and a corresponding increase in other income, net on the statement of operations for the three months ended March 31, 2017.
ASU 2016-01 - In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, or ASU No. 2016-01. The amendments of ASU No. 2016-01 eliminate available-for-sale classification of equity investments and require that equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) be generally measured at fair value with changes in fair value recognized in net income. Further, the amendments require that financial assets and financial liabilities be presented separately in the notes to the financial statements, grouped by measurement category and form of financial asset. The guidance in ASU No. 2016-01 is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted the amendments of ASU No. 2016-01 effective January 1, 2018. In connection with the adoption of the standard, the Company has applied the guidance on a modified retrospective basis, which resulted in no material adjustments recorded to the consolidated results of operations, cash flows, and statement of financial position.


19


Recent Accounting Developments - Guidance Not Yet Adopted
ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or Topic 842, with the objective to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and to improve financial reporting by expanding the related disclosures. The guidance in Topic 842 provides that a lessee that may have previously accounted for a lease as an operating lease under current GAAP should recognize the assets and liabilities that arise from a lease on the balance sheet. In addition, Topic 842 expands the required quantitative and qualitative disclosures with regards to lease arrangements. The Company will adopt the standard effective January 1, 2019, and expects to elect certain of the practical expedients permitted, including the expedient that permits the Company to retain its existing lease assessment and classification. The Company is currently working through an adoption plan which includes the evaluation of lease contracts compared to the new standard. While the Company is currently evaluating the impact the new guidance will have on its financial position and results of operations, the Company expects to recognize lease liabilities and right of use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending the Company’s review of its existing lease contracts and service contracts which may contain embedded leases. While this review is still in process, NRG believes the adoption of Topic 842 will have a material impact on its financial statements. The Company is also monitoring recent changes to Topic 842 and the related impact on the implementation process.
Note 3Discontinued Operations and Dispositions
This footnote should be read in conjunction with the complete description under Note 3, Discontinued Operations, Acquisitions and Dispositions, to the Company's 2017 Form 10-K.
Discontinued Operations
On June 14, 2017, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of the bankruptcy filings, NRG has concluded that it no longer controls GenOn as it is subject to the control of the Bankruptcy Court; and, accordingly, NRG no longer consolidates GenOn for financial reporting purposes.
By eliminating a large portion of its operations in the PJM market with the deconsolidation of GenOn, NRG has concluded that GenOn meets the criteria for discontinued operations, as this represents a strategic shift in the markets in which NRG operates. As such, all prior period results for GenOn have been reclassified as discontinued operations.
Summarized results of discontinued operations were as follows:
 
Three months ended March 31, 2017
(In millions)
Operating revenues
$
381

Operating costs and expenses
(373
)
Other expenses
(44
)
Loss from operations of discontinued components, before tax
(36
)
Income tax expense
1

Loss from operations of discontinued components
(37
)
Interest income - affiliate
3

Loss from discontinued operations, net of tax
$
(34
)
Income recorded from discontinued operations was immaterial for the three months ended March 31, 2018.

20


Restructuring Support Agreement
NRG, GenOn and certain holders representing greater than 93% in aggregate principal amount of GenOn’s Senior Notes and certain holders representing greater than 93% in aggregate principal amount of GenOn Americas Generation’s Senior Notes entered into a Restructuring Support Agreement that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization that was approved by the Bankruptcy Court pursuant to an order of confirmation. Completion of the agreed upon terms is contingent upon certain milestones in the Restructuring Support Agreement and the satisfaction or waiver or certain conditions precedent. Certain principal terms of the Restructuring Support Agreement and the plan of reorganization are detailed below:
1)
The dismissal of litigation and full releases from GenOn and GenOn Americas Generation in favor of NRG upon the earlier of the consummation of the GenOn Entities' plan of reorganization or the Settlement Agreement; a condition precedent to the consummation of the Settlement Agreement is a full release or indemnification in favor of NRG from any claims of GenOn Mid-Atlantic and REMA.
2)
NRG will provide settlement cash consideration to GenOn of $261.3 million, which will be paid in cash less any amounts owed to NRG under the intercompany secured revolving credit facility. As of March 31, 2018, GenOn owed NRG approximately $125 million under the intercompany secured revolving credit facility. See Note 13, Related Party Transactions, for further discussion of the intercompany secured revolving credit facility. The net liability for these amounts, along with the services credit described below, is recorded in accrued expenses and other current liabilities - affiliate as of March 31, 2018 and December 31, 2017.
3)
NRG will retain the pension liability, including payment of approximately $13 million of 2017 pension contributions, for GenOn employees for service provided prior to the completion of the reorganization, which was paid in September 2017. GenOn’s pension liability as of March 31, 2018, was approximately $91 million. NRG will also retain the liability for GenOn’s post-employment and retiree health and welfare benefits, in an amount up to $25 million. These liabilities are recorded within other non-current liabilities as of March 31, 2018 and December 31, 2017.
4)
The shared services agreement between NRG and GenOn was terminated and replaced as of the plan confirmation date with a transition services agreement. Under the transition services agreement, NRG will continue to provide the shared services and other separation services at an annualized rate of $84 million, subject to certain credits and adjustments. See Note 13, Related Party Transactions, for further discussion of the Services Agreement.
5)
NRG will provide a credit of $28 million to GenOn to apply against amounts owed under the transition services agreement. Any unused amount can be paid in cash at GenOn’s request. The credit was intended to reimburse GenOn for its payment of financing costs.
6)
NRG and GenOn have agreed to cooperate in good faith to maximize the value of certain development projects. Pursuant to this, GenOn made a one-time payment in the amount of $15 million to NRG in December 2017 as compensation for a purchase option with respect to the Canal 3 project. On March 22, 2018, NRG agreed to sell Canal 3 to Stonepeak Kestrel Holdings II LLC in conjunction with GenOn's sale of Canal Units 1 and 2 to Stonepeak Kestrel Holdings LLC. NRG expects to reimburse GenOn for $13.5 million of the one-time payment upon the close of the sale of Canal 3. This amount is recorded as a current liability as of March 31, 2018, and December 31, 2017.
GenMA Settlement
The Bankruptcy Court order confirming the plan of reorganization also approved the settlement terms agreed to among the GenOn Entities, NRG, the Consenting Holders, GenOn Mid-Atlantic, and certain of GenOn Mid-Atlantic’s stakeholders, or the GenMA Settlement, and directed the settlement parties to cooperate in good faith to negotiate definitive documentation consistent with the GenMA Settlement term sheet in order to pursue consummation of the GenMA Settlement. The definitive documentation effectuating the GenMA Settlement was finalized and effective as of April 27, 2018. Certain terms of the compromise with respect to NRG and GenOn Mid-Atlantic are as follows:
Settlement of all pending litigation and objections to the Plan (including with respect to releases and feasibility);
NRG provided $37.5 million in letters of credit as new qualifying credit support to GenOn Mid-Atlantic; and
NRG paid approximately $6 million as reimbursement of professional fees incurred by certain of GenOn Mid-Atlantic's stakeholders in connection with the GenMA Settlement.
Transfer of Assets Under Common Control
On March 30, 2018, as part of the Transformation Plan, the Company sold to NRG Yield, Inc. 100% of NRG's interests in Buckthorn Renewables, LLC, which owns a 154-MW construction-stage utility-scale solar generation project, located in Texas. NRG Yield, Inc. paid cash consideration of approximately $42 million, excluding working capital adjustments, and assumed non-recourse debt of approximately $183 million. Concurrently, an initial contribution of approximately $19 million was received from the third-party investor in the underlying tax equity partnership, which is included in noncontrolling interest.

21


On March 27, 2017, the Company sold to NRG Yield, Inc.: (i) a 16% interest in the Agua Caliente solar project, representing ownership of approximately 46 net MW of capacity and (ii) NRG's interests in seven utility-scale solar projects located in Utah representing 265 net MW of capacity, which have reached commercial operations. NRG Yield, Inc. paid cash consideration of $130 million, plus $1 million in working capital adjustments, and assumed non-recourse debt of approximately $328 million.
Note 4Fair Value of Financial Instruments
This footnote should be read in conjunction with the complete description under Note 4, Fair Value of Financial Instruments, to the Company's 2017 Form 10-K.
For cash and cash equivalents, funds deposited by counterparties, accounts and other receivables, accounts payable, restricted cash, and cash collateral paid and received in support of energy risk management activities, the carrying amount approximates fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy.
The estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value are as follows:
 
As of March 31, 2018
 
As of December 31, 2017
 
Carrying Amount
 
Fair Value
 
Carrying Amount
 
Fair Value
 
(In millions)
Assets:
 
 
 
 
 
 
 
Notes receivable (a)
$
15

 
$
14

 
$
16

 
$
15

Liabilities:
 
 
 
 
 
 
 
Long-term debt, including current portion (b)
16,559

 
16,687

 
16,603

 
16,894

(a) Includes the current portion of notes receivable which is recorded in prepayments and other current assets on the Company's consolidated balance sheets.
(b) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets.
The fair value of the Company's publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. The fair value of debt securities, non-publicly traded long-term debt and certain notes receivable of the Company are based on expected future cash flows discounted at market interest rates, or current interest rates for similar instruments with equivalent credit quality and are classified as Level 3 within the fair value hierarchy. The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of March 31, 2018 and December 31, 2017:
 
As of March 31, 2018
 
As of December 31, 2017
 
Level 2
 
Level 3
 
Level 2
 
Level 3
 
(In millions)
Long-term debt, including current portion
$
8,772

 
$
7,915

 
$
8,934

 
$
7,960



22


Recurring Fair Value Measurements
Debt securities, equity securities, and trust fund investments, which are comprised of various U.S. debt and equity securities, and derivative assets and liabilities, are carried at fair market value.
The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:
 
As of March 31, 2018
 
Fair Value
(In millions)
Total
 
Level 1
 
Level 2
 
Level 3
Investments in securities (classified within other non-current assets)
$
22

 
$
3

 
$

 
$
19

Nuclear trust fund investments:
 
 
 
 
 
 
 
Cash and cash equivalents
16

 
16

 

 

U.S. government and federal agency obligations
56

 
55

 
1

 

Federal agency mortgage-backed securities
92

 

 
92

 

Commercial mortgage-backed securities
16

 

 
16

 

Corporate debt securities
100

 

 
100

 

Equity securities
333

 
333

 

 

Foreign government fixed income securities
5

 

 
5

 

Other trust fund investments:
 
 
 
 
 
 
 
U.S. government and federal agency obligations
1

 
1

 

 

Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
1,277

 
168

 
1,060

 
49

Interest rate contracts
92

 

 
92

 

Measured using net asset value practical expedient:
 
 
 
 
 
 
 
Equity securities — nuclear trust fund investments
62

 


 


 


Total assets
$
2,072

 
$
576

 
$
1,366

 
$
68

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
1,024

 
224

 
729

 
71

Interest rate contracts
30

 

 
30

 

Total liabilities
$
1,054

 
$
224

 
$
759

 
$
71


 
As of December 31, 2017
 
Fair Value
(In millions)
Total
 
Level 1
 
Level 2
 
Level 3
Investments in securities (classified within other non-current assets)
$
22

 
$
3

 
$

 
$
19

Nuclear trust fund investments:
 
 
 
 
 
 
 
Cash and cash equivalents
47

 
45

 
2

 

U.S. government and federal agency obligations
43

 
42

 
1

 

Federal agency mortgage-backed securities
82

 

 
82

 

Commercial mortgage-backed securities
14

 

 
14

 

Corporate debt securities
99

 

 
99

 

Equity securities
334

 
334

 

 

Foreign government fixed income securities
5

 

 
5

 

Other trust fund investments:
 
 
 
 
 
 
 
U.S. government and federal agency obligations
1

 
1

 

 

Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
745

 
191

 
509

 
45

Interest rate contracts
53

 

 
53

 

Measured using net asset value practical expedient:
 
 
 
 
 
 
 
Equity securities — nuclear trust fund investments
68

 
 
 
 
 
 
Total assets
$
1,513

 
$
616

 
$
765

 
$
64

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
693

 
257

 
359

 
77

Interest rate contracts
59

 

 
59

 

Total liabilities
$
752

 
$
257

 
$
418

 
$
77



23


There were no transfers during the three months ended March 31, 2018 and 2017 between Levels 1 and 2. The following tables reconcile, for the three months ended March 31, 2018 and 2017, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, at least annually, using significant unobservable inputs:
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
 
Three months ended March 31, 2018
(In millions)
Debt Securities
 
Derivatives(a)
 
Total
Beginning balance
$
19

 
$
(32
)
 
$
(13
)
Total gains — realized/unrealized:
 
 
 
 


Included in earnings

 
2

 
2

Purchases

 
1

 
1

Transfers into Level 3 (b)

 
4

 
4

Transfers out of Level 3 (b)

 
3

 
3

Ending balance as of March 31, 2018
$
19

 
$
(22
)
 
$
(3
)
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of March 31, 2018
$

 
$
3

 
$
3

(a)
Consists of derivative assets and liabilities, net.
(b)
Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2.
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
 
Three months ended March 31, 2017
(In millions)
Debt Securities
 
Trust Fund Investments
 
Derivatives(a)
 
Total
Beginning balance
$
17

 
$
54

 
$
(68
)
 
$
3

Total gains — realized/unrealized:
 
 
 
 
 
 
 
Included in earnings
1

 

 
6

 
7

Included in nuclear decommissioning obligation

 
4

 

 
4

Purchases

 

 
4

 
4

Transfers into Level 3 (b)

 

 
(8
)
 
(8
)
Transfers out of Level 3 (b)

 

 
10

 
10

Ending balance as of March 31, 2017
$
18

 
$
58

 
$
(56
)
 
$
20

Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of March 31, 2017
$

 
$

 
$
(15
)
 
$
(15
)
(a)
Consists of derivative assets and liabilities, net.
(b)
Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2.

Derivative Fair Value Measurements
A portion of NRG's contracts are exchange-traded contracts with readily available quoted market prices. A majority of NRG's contracts are non-exchange-traded contracts valued using prices provided by external sources, primarily price quotations available through brokers or over-the-counter and on-line exchanges. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available for the whole term or for certain delivery months or the contracts are retail and load following power contracts. These contracts are valued using various valuation techniques including but not limited to internal models that apply fundamental analysis of the market and corroboration with similar markets. As of March 31, 2018, contracts valued with prices provided by models and other valuation techniques make up 4% of the total derivative assets and 7% of the total derivative liabilities.

24


NRG's significant positions classified as Level 3 include physical and financial power executed in illiquid markets as well as financial transmission rights, or FTRs. The significant unobservable inputs used in developing fair value include illiquid power location pricing which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. For FTRs, NRG uses the most recent auction prices to derive the fair value.
The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of March 31, 2018 and December 31, 2017:
 
Significant Unobservable Inputs
 
March 31, 2018
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Power Contracts
$
38

 
$
63

 
Discounted Cash Flow
 
Forward Market Price (per MWh)
 
$
9

 
$
319

 
$
40

FTRs
11

 
8

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
(28
)
 
46

 

 
$
49

 
$
71

 
 
 
 
 
 
 
 
 
 
 
Significant Unobservable Inputs
 
December 31, 2017
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Power Contracts
$
34

 
$
65

 
Discounted Cash Flow
 
Forward Market Price (per MWh)
 
$
10

 
$
142

 
$
33

FTRs
11

 
12

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
(28
)
 
46

 

 
$
45

 
$
77

 
 
 
 
 
 
 
 
 
 
The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of March 31, 2018 and December 31, 2017:
Significant Unobservable Input
 
Position
 
Change In Input
 
Impact on Fair Value Measurement
Forward Market Price Power
 
Buy
 
Increase/(Decrease)
 
Higher/(Lower)
Forward Market Price Power
 
Sell
 
Increase/(Decrease)
 
Lower/(Higher)
FTR Prices
 
Buy
 
Increase/(Decrease)
 
Higher/(Lower)
FTR Prices
 
Sell
 
Increase/(Decrease)
 
Lower/(Higher)
The fair value of each contract is discounted using a risk-free interest rate. In addition, the Company applies a credit reserve to reflect credit risk, which is calculated based on published default probabilities. As of March 31, 2018, the credit reserve resulted in a $2 million decrease in fair value in operating revenue and cost of operations. As of December 31, 2017, the credit reserve resulted in no change in fair value in operating revenue and cost of operations.
Concentration of Credit Risk
In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies, to the Company's 2017 Form 10-K, the following is a discussion of the concentration of credit risk for the Company's contractual obligations. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. NRG is exposed to counterparty credit risk through various activities including wholesale sales, fuel purchases and retail supply arrangements, and retail customer credit risk through its retail load activities.

25


Counterparty Credit Risk
The Company's counterparty credit risk policies are disclosed in its 2017 Form 10-K. As of March 31, 2018, the Company's counterparty credit exposure, excluding credit risk exposure under certain long term agreements, was $505 million with net exposure of $244 million. NRG held collateral (cash and letters of credit) against those positions of $264 million. Approximately 83% of the Company's exposure before collateral is expected to roll off by the end of 2019. Counterparty credit exposure is valued through observable market quotes and discounted at a risk free interest rate. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.
 
Net Exposure (a) (b)
Category by Industry Sector
(% of Total)
Utilities, energy merchants, marketers and other
78
%
Financial institutions
22

Total as of March 31, 2018
100
%
 
Net Exposure (a) (b)
Category by Counterparty Credit Quality
(% of Total)
Investment grade
78
%
Non-Investment grade/Non-Rated
22

Total as of March 31, 2018
100
%
(a)
Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices.
(b)
The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts.
NRG has counterparty credit risk exposure to certain counterparties, each of which represent more than 10% of total net exposure discussed above. The aggregate of such counterparties' exposure was $65 million as of March 31, 2018. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, NRG does not anticipate a material impact on the Company's financial position or results of operations from nonperformance by any of NRG's counterparties.
RTOs and ISOs
The Company participates in the organized markets of CAISO, ERCOT, ISO-NE, MISO, NYISO and PJM, known as RTOs or ISOs. Trading in these markets is approved by FERC, or in the case of ERCOT, approved by the PUCT and includes credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to NRG’s share of overall market and are excluded from the above exposures.
Exchange Traded Transactions
The Company enters into commodity transactions on registered exchanges, notably ICE and NYMEX. These clearinghouses act as the counterparty and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk.

Long Term Contracts
Counterparty credit exposure described above excludes credit risk exposure under certain long term agreements, including California tolling agreements, Gulf Coast load obligations, and wind and solar PPAs. As external sources or observable market quotes are not available to estimate such exposure, the Company estimates its credit exposure for these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. Based on these valuation techniques, as of March 31, 2018, aggregate credit risk exposure managed by NRG to these counterparties was approximately $4.1 billion, including $2.5 billion related to assets of NRG Yield, Inc., for the next five years. This amount excludes potential credit exposures for projects with long-term PPAs that have not reached commercial operations. The majority of these power contracts are with utilities or public power entities with strong credit quality and public utility commission or other regulatory support. However, such regulated utility counterparties can be impacted by changes in government regulations or treatment by regulatory agencies which NRG is unable to predict.

26


Retail Customer Credit Risk
The Company is exposed to retail credit risk through the Company's retail electricity providers, which serve C&I customers and the Mass market. Retail credit risk results in losses when a customer fails to pay for services rendered. The losses may result from both nonpayment of customer accounts receivable and the loss of in-the-money forward value. The Company manages retail credit risk through the use of established credit policies that include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements.
As of March 31, 2018, the Company's retail customer credit exposure to C&I and Mass customers was diversified across many customers and various industries, as well as government entities.
Note 5Nuclear Decommissioning Trust Fund
This footnote should be read in conjunction with the complete description under Note 6, Nuclear Decommissioning Trust Fund, to the Company's 2017 Form 10-K.
NRG's Nuclear Decommissioning Trust Fund assets are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations, because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to the Nuclear Decommissioning Trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment.
The following table summarizes the aggregate fair values and unrealized gains and losses (including other-than-temporary impairments) for the securities held in the trust funds, as well as information about the contractual maturities of those securities.
 
As of March 31, 2018
 
As of December 31, 2017
(In millions, except otherwise noted)
Fair Value
 
Unrealized Gains
 
Unrealized Losses
 
Weighted-average Maturities (In years)
 
Fair Value
 
Unrealized Gains
 
Unrealized Losses
 
Weighted-average Maturities (In years)
Cash and cash equivalents
$
16

 
$

 
$

 

 
$
47

 
$

 
$

 

U.S. government and federal agency obligations
56

 
1

 
1

 
11

 
43

 
1

 

 
11

Federal agency mortgage-backed securities
92

 

 
2

 
23

 
82

 
1

 
1

 
23

Commercial mortgage-backed securities
16

 

 
1

 
22

 
14

 

 

 
20

Corporate debt securities
100

 
1

 
2

 
11

 
99

 
2

 
1

 
11

Equity securities
395

 
265

 

 

 
402

 
272

 

 

Foreign government fixed income securities
5

 

 

 
8

 
5

 

 

 
9

Total
$
680

 
$
267

 
$
6

 
 
 
$
692

 
$
276

 
$
2

 
 
The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method.
 
Three months ended March 31,
 
2018
 
2017
 
(In millions)
Realized gains
$
3

 
$
2

Realized losses
3

 
2

Proceeds from sale of securities
182


117


27


Note 6Accounting for Derivative Instruments and Hedging Activities
This footnote should be read in conjunction with the complete description under Note 5, Accounting for Derivative Instruments and Hedging Activities, to the Company's 2017 Form 10-K.
Energy-Related Commodities
As of March 31, 2018, NRG had energy-related derivative instruments extending through 2031. The Company marks these derivatives to market through the statement of operations.
Interest Rate Swaps
NRG is exposed to changes in interest rates through the Company's issuance of variable rate debt. In order to manage the Company's interest rate risk, NRG enters into interest rate swap agreements. As of March 31, 2018, NRG had interest rate derivative instruments on recourse debt extending through 2021, which are not designated as cash flow hedges. The Company had interest rate swaps on non-recourse debt extending through 2041, a portion of which are designated as cash flow hedges.
Volumetric Underlying Derivative Transactions
The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of March 31, 2018 and December 31, 2017. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
 
 
Total Volume
 
 
March 31, 2018
 
December 31, 2017
Category
Units
(In millions)
Emissions
Short Ton
2

 
1

Coal
Short Ton
17

 
21

Natural Gas
MMBtu
(208
)
 
(17
)
Power
MWh
16

 
14

Capacity
MW/Day