> l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1Courier New1Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)**_($* #,##0_);_($* (#,##0);_($* ""_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* ""_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* ""??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* ""??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)60%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0) + ) , * Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~<#܈ ~~4#܈ ~~3#܈ ~~7#܈ ~~#؈ ~~83ffff̙̙3f3fff3f3f33333f33FORM 10Q)NRG Energy Inc<IndexS 4GLOSSARY OF TERMS{ 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)&CONDENSED CONSOLIDATED STATEMEN"Q
CONDENSED CONSOLIDATED (1)&.CONDENSED CONSOLIDATED BALANCE "aCONDENSED CONSOLIDATED (2)&QOther Balance Sheet Informationۯ 15Restricted CashPNoncontrolling Interest&8Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)&)Note 4 Fair Value of Financial >Note 4 Fair Value of (1)&R 23Recurring Fair Value Measure#Qw 23Recurring Fair Value (1)#ߛ 23Recurring Fair Value (2)# 23Recurring Fair Value (3)& 25Derivative Fair Value Measur$} 25Derivative Fair Value (1)$R 25Derivative Fair Value (2)"* 27Counterparty Credit Risk"= 27Counterparty Credit (1)&$PNote 5 Nuclear Decommissioning MqNote 5 Nuclear (1)&Volumetric Underlying Derivativ&Fair Value of Derivative Instru$Fair Value of Derivative (1)$oFair Value of Derivative (2)&Accumulated Other Comprehensive& Impact of Derivative Instrument &Impact of Derivative (1)&= 33Note 8 Debt and Capital Leas%oEntities that are Consolidated& 36Note 10 Changes in Capital S& 37Note 11 EarningsLoss Per Sha# 37Note 11 EarningsLoss (1)$) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2)?< 38Note 12 Segment (3)aEffective Tax Rate&w 50Note 18 Condensed Consolidat&For the three months ended Sept&;For the nine months ended Septe For the three months (1)%B#For the nine months ended (1)lBSeptember 30 2017 &! For the nine months ended Sept For the three months (2)%For the nine months ended (2) JFor the three months (3)%hFor the nine months ended (3)bDecember 31 2016 %For the nine months ended (4) 07Introduction and Overview
WPJM&i 72Consolidated Results of OperElectricity Prices?Electricity Pri (1)Economic Gross Margin Economic Gross (1)H Economic Gross (2)a Gulf Coast Regionx EastWest& 77Retail gross margin and econ"A 77Retail gross margin (1)& 78Marktomarket for Economic He 78Marktomarket for (1)G
78Marktomarket for (2)&
80Operations and Maintenance E9
&L
Selling General and Administratb
81Interest Expensex
Electricity Pri (2)"
Electricity Pri (3)
Economic Gross (3)b
Economic Gross (4)Economic Gross (5)+Gulf Coast Regi (1)DEastWest (1)&U^ 86 Retail gross margin and eco#{ 86 Retail gross margin (1)&Marktomarket for Economic Hedgi%,Marktomarket for Economic (1)%BMarktomarket for Economic (2)& 89Operations and Maintenance E (1)Selling General and (1)=2Interest ExpenseILiquidity Positionu_Credit Ratingsu 93First Lien Structure̊ 95Capital Expenditures[ 96Fuel Repowerings 97Cash Flow Discussion&CNet Cash Used By Operating Acti&tNet Cash Used By Investing Acti&
Net Cash Provided By Financing &
99Fair Value of Derivative Ins,
99Fair Value of (1)E
Commodity Price RiskZ
105ITEM 6 EXHIBITS
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dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??jNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }$}$ }1
NRG ENERGY, INC.10Q
11/02/2017 FORM 10Q
x
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'Quarterly report pursuant to Section 13/'or 15(d) of the Securities Exchange Actof 1934
1)For the Quarterly Period Ended: September30, 2017 o0(Transition report pursuant to Section 13/'or 15(d) of the Securities Exchange Actof 1934$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6ymIcy.=PF0*8X>
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FORM 10QIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }2}$ }
NRG ENERGY, INC.10Q
11/02/2017NRG Energy, Inc.
Delaware
411724239$(State or other jurisdiction(I.R.S. Employer)!of incorporation or organization)Identification No.)
2*804 Carnegie Center, Princeton, New Jersey~
r0((Address of principal executive offices)
(Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.~rfBd@Z=PF0*8X>
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FORM 10QNRG Energy Inc 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}
$
NRG ENERGY, INC.10Q
11/02/2017
Index .
&CAUTIONARY STATEMENT REGARDING FORWARD~
LOOKING INFORMATIONGLOSSARY OF TERMS~
&
PART I ? FINANCIAL INFORMATION~
*1)ITEM 1 ? CONDENSED CONSOLIDATED FINANCIAL~
*STATEMENTS AND NOTES5ITEM 2 ? MANAGEMENT?S DISCUSSION AND ANALYSIS~
80OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS91ITEM 3 ? QUANTITATIVE AND QUALITATIVE DISCLOSURES~
ABOUT MARKET RISK( ITEM 4 ? CONTROLS AND PROCEDURES~
#PART II ? OTHER INFORMATION~
"ITEM 1 ? LEGAL PROCEEDINGS~
ITEM 1A ? RISK FACTORS~
80ITEM 2 ? UNREGISTERED SALES OF EQUITY SECURITIES~
AND USE OF PROCEEDS0(ITEM 3 ? DEFAULTS UPON SENIOR SECURITIES~
( ITEM 4 ? MINE SAFETY DISCLOSURES~
"ITEM 5 ? OTHER INFORMATION~
ITEM 6 ? EXHIBITS~
SIGNATURES~
D~l}qYT4fIv,
]2 !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$ }7
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NRG ENERGY, INC.10Q
11/02/2017 4GLOSSARY OF TERMS
2016 Form 10K
0
(NRG?s Annual Report on Form 10K for the$year ended December 31, 20162023 Term Loan Facility5The Company's $1.9 billion term loan facility
2
*due 2023, a component of the Senior CreditFacilityAdjusted EBITDA1)Adjusted earnings before interest, taxes,%depreciation and amortizationASC3+The FASB Accounting Standards Codification,0(which the FASB established as the sourceof authoritative GAAPASU3+Accounting Standards Updates, which reflectupdates to the ASCAverage realized prices%Volumeweighted average power prices,0(net of average fuel costs and reflecting$the impact of settled hedgesBACT)!Best Available Control TechnologyBankruptcy Code5Chapter 11 of Title 11 of the U.S. BankruptcyCodeBankruptcy Court.&United States Bankruptcy Court for the4,Southern District of Texas, Houston DivisionBETM/'Boston Energy Trading and Marketing LLCBTUBritish Thermal UnitD l{oc?=g&Og2
` !"#$%&'()*+,./0123456789:;<=>? CAA
Clean Air Act!CAIR!!!Clean Air Interstate Rule
"CAISO"."&California Independent System Operator#CDD##Cooling Degree Day$CDWR$0$(California Department of Water Resources%CEC%$%California Energy Commission&CenterPoint&6&.CenterPoint Energy, Inc. and its subsidiaries,''1')on and after August 31, 2002, and Reliant((1()Energy, Incorporated and its subsidiaries)) )prior to August 31, 2002*CFTC*1*)U.S. Commodity Futures Trading Commission+Chapter 11 Cases+.+&Voluntary cases commenced by the GenOn,,1,)Entities under the Bankruptcy Code in theBankruptcy Court.COD.!.Commercial Operation Date
/ComEd//Commonwealth Edison0Company00NRG Energy, Inc.1CPP11Clean Power Plan2CPUC2.2&California Public Utilities Commission
3CSAPR3&3CrossState Air Pollution Rule4CVSR4%4California Valley Solar Ranch5D.C. Circuit515)U.S. Court of Appeals for the District of666Columbia Circuit7
DGPV Holdco 177NRG DGPV Holdco 1 LLC8
DGPV Holdco 288NRG DGPV Holdco 2 LLC9Distributed Solar909(Solar power projects that primarily sell::0:(power to customers for usage on site, or;;/;'are interconnected to sell power into a<<<local distribution grid=DSI==Dry Sorbent Injection>Economic gross margin>0>(Sum of energy revenue, capacity revenue,??.?&retail revenue and other revenue, lessDfl<py=EZ#Iv0<@ABCDEFGHIJKL@@@%cost of fuels and other cost of salesAELGA'AEffluent Limitations Guidelines BEl Segundo Energy CenterB0B(NRG West Holdings LLC, the subsidiary ofCC.C&Natural Gas Repowering LLC, which ownsDD,D$the El Segundo Energy Center projectEEMEEEEdison Mission EnergyFEnergy Plus HoldingsF FEnergy Plus Holdings LLCGEPAG,G$U.S. Environmental Protection AgencyHI$J____________________________1K)Created by Morningstar Document Research.0L(http://documentresearch.morningstar.com/ q
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }0.}$ }=
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NRG ENERGY, INC.10Q
11/02/2017 4GLOSSARY OF TERMS
EPC
1
)Engineering, Procurement and Construction
ERCOT.&Electric Reliability Council of Texas,/'the Independent System Operator and the
/
'regional reliability coordinator of the0(various electricity systems within TexasESCOEnergy Service CompanyESP"Electrostatic PrecipitatorESPP6.NRG Energy, Inc. Amended and Restated EmployeeStock Purchase PlanESPS%Existing Source Performance StandardsExchange Act/'The Securities Exchange Act of 1934, asamendedFASB,$Financial Accounting Standards BoardFERC,$Federal Energy Regulatory CommissionFGD Flue gas desulfurizationFTRs%Financial Transmission RightsGAAP0(Accounting principles generally acceptedin the U.S.GenConnGenConn Energy LLC
GenOnGenOn Energy, Inc.!GenOn Americas Generation&GenOn Americas Generation, LLC.&GenOn Americas Generation Senior Notes0(GenOn Americas Generation's $695 millionD} l{oc?U
?eKwH !"#$%&'()*+,./0123456789:;<=>? 5 outstanding unsecured senior notes consisting!!0!(of $366 million of 8.5% senior notes due""4",2021 and $329 million of 9.125% senior notes###due 2031$GenOn Entities$;$3GenOn and certain of its wholly owned subsidiaries,%%,%$including GenOn Americas Generation.&&1&)that filed voluntary petitions for relief''/''under Chapter 11 of the Bankruptcy Code((0((in the Bankruptcy Court on June 14, 2017)GenOn Senior Notes)2)*GenOn's $1.8 billion outstanding unsecured**/*'senior notes consisting of $691 million++5+of 7.875% senior notes due 2017, $649 million,,7,/of 9.5% senior notes due 2018, and $489 million'of 9.875% senior notes due 2020.GHG..Greenhouse Gas
/GW//Gigawatt0GWh00
Gigawatt Hour1HAP11Hazardous Air Pollutant2HDD22Heating Degree Day3 Heat Rate303(A measure of thermal efficiency computed4404(by dividing the total BTU content of the5545,fuel burned by the resulting kWhs generated.6636+Heat rates can be expressed as either gross7707(or net heat rates, depending whether the88/8'electricity output measured is gross or9919)net generation and is generally expressed:::as BTU per net kWh;HLBV;.;&Hypothetical Liquidation at Book Value<IASB<.<&Independent Accounting Standards Board=IFRS=3=+International Financial Reporting Standards>ILU>(> Illinois Union Insurance Company?ISO?#?Independent System OperatorDlc:VZaav*\m@ABCDEFGHIJKLMNOPQRST@ISONE@@ISO New England Inc.AITCAAInvestment Tax Credit
BLaGenB$BLouisiana Generating, L.L.C.
CLIBORC&CLondon InterBank Offered Rate
DLTIPsD1D)Collectively, the NRG LongTerm IncentiveEE5EPlan, as amended, and the NRG GenOn LongTermFFFIncentive PlanG
Marsh LandingG.G&NRG Marsh Landing, LLC (formerly knownHH$Has GenOn Marsh Landing, LLC)IMass MarketI2I*Residential and small commercial customersJMATSJ4J,Mercury and Air Toxics Standards promulgatedKKK
by the EPALMDthLLThousand DekathermsMMidwest GenerationMMMidwest Generation, LLCNMISON1N)Midcontinent Independent System Operator,OOOInc.PQ$R____________________________1S)Created by Morningstar Document Research.0T(http://documentresearch.morningstar.com/.AW%5x+r=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }m)}$ }:
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NRG ENERGY, INC.10Q
11/02/2017 4GLOSSARY OF TERMS
MMBtu
%
Million British Thermal Units
MW MegawattsMWh80Saleable megawatt hour net of internal/parasitic
load megawatthourMWt$Megawatts Thermal Equivalent
NAAQS.&National Ambient Air Quality StandardsNEPOOLNew England Power PoolNERC7/North American Electric Reliability CorporationNet Exposure0(Counterparty credit exposure to NRG, net
of collateralNet Generation/'The net amount of electricity produced,4,expressed in kWhs or MWhs, that is the total/'amount of electricity generated (gross)3+minus the amount of electricity used during
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,stockNSRNew Source Review*."Nuclear Decommissioning Trust Fund.0.(NRG's nuclear decommissioning trust fund//3/+assets, which are for the Company's portion0000(of the decommissioning of the STP, units11
11 & 22NYAG242,State of New York Office of Attorney General
3NYISO3,3$New York Independent System Operator4NYSPSC404(New York State Public Service Commission5OCI/OCL5)5!Other Comprehensive Income/(Loss)6Peaking656Units expected to satisfy demand requirements7737+during the periods of greatest or peak load888
on the system9PER99Peak Energy Rent:
Petition Date::
June 14, 2017;PG&E;(; Pacific Gas and Electric Company<PJM< <PJM Interconnection, LLC
=PM==Particulate Matter>PPA> >Power Purchase Agreement?PSD?/?'Prevention of Significant DeteriorationDloy+@q"Yn_!b@ABCDEFGHIJKLMNOPQRSTUVWXYZ@PTC@@Production Tax CreditAPUCTA*A"Public Utility Commission of TexasBRAPAB,B$Resource Adequacy Purchase AgreementCRCRAC.C&Resource Conservation and Recovery ActDDDof 1976EREMAE2E*NRG REMA LLC, which leases a 100% interestFF0F(in the Shawville generating facility andGG1G)16.7% and 16.5% interests in the KeystoneHH,H$and Conemaugh generating facilities,IIIrespectivelyJ
RepoweringJ2J*Technologies utilized to replace, rebuild,KK2K*or redevelop major portions of an existingLL1L)electrical generating facility to achieveMM3M+a substantial emissions reduction, increaseNN7N/facility capacity and improve system efficiency'ORestructuring Support AgreementO4O,Restructuring Support and LockUp Agreement,PP3P+dated as of June 12, 2017 and as amended onQQ3Q+October 2, 2017, by and among GenOn Energy,RRR%Inc., GenOn Americas Generation, LLC,SS/S'the subsidiaries signatory thereto, NRGTT2T*Energy, Inc. and the noteholders signatoryUUUtheretoVW$X____________________________1Y)Created by Morningstar Document Research.0Z(http://documentresearch.morningstar.com/:" z.cR_Ngc=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)CONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
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NRG ENERGY, INC.10Q
11/02/20177/CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMEN!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}$
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NRG ENERGY, INC.10Q
11/02/2017H@CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
T
NRG ENERGY, INC.10Q
11/02/2017%CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, 2017
December 31, 2016$(In millions, except shares)ASSETS
Current Assets
!Cash and cash equivalents~
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Restricted cash~
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NjNOP$Q____________________________1R)Created by Morningstar Document Research.0S(http://documentresearch.morningstar.com/,:LJxHuY=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE !Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
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NRG ENERGY, INC.10Q
11/02/20177/CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
'
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(In millions)~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2) 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }2}$
NRG ENERGY, INC.10Q
11/02/2017'Other Balance Sheet Information
September 30, 2017
December 31, 2016
(In millions)2*Accounts receivable allowance for doubtful~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet InformationNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }2}$
NRG ENERGY, INC.10Q
11/02/2017 15Restricted Cash
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted Cash!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
NRG ENERGY, INC.10Q
11/02/2017Noncontrolling Interest
(In millions)'Balance as of December 31, 2016~
%2*Contributions from noncontrolling interest~
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&Noncash adjustments to noncontrolling~
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.'$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:\wk_/
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling InterestDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
NRG ENERGY, INC.10Q
11/02/2017*"Redeemable Noncontrolling Interest
(In millions)'Balance as of December 31, 2016~
4,Contributions from redeemable noncontrolling~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
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NRG ENERGY, INC.10Q
11/02/2017Discontinued Operations
1
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued Operations!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
NRG ENERGY, INC.10Q
11/02/2017Discontinued Operations
(In millions)
December 31, 2016!Cash and cash equivalents~
*Other current assets~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
NRG ENERGY, INC.10Q
11/02/20172*Note 4 Fair Value of Financial Instruments
As of September 30, 2017
As of December 31, 2016Carrying Amount
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial ! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }1}$
NRG ENERGY, INC.10Q
11/02/20172*Note 4 Fair Value of Financial Instruments
As of September 30, 2017
As of December 31, 2016Level 2Level 3 Level 2
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(In millions)1
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1) 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
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NRG ENERGY, INC.10Q
11/02/2017,$ 23Recurring Fair Value Measurements
As of September 30, 2017
Fair Value
(In millions)Level 1Level 2 Level 3
Total3
+Investment in availableforsale securities
(classified within other noncurrent assets):Debt securities
$?
$?~
N~
N%Availableforsale securities~
? ?~
'Nuclear trust fund investments:
!Cash and cash equivalents~
~ ? ?~
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~
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.!Corporate debt securities ?~
?~
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6 ?~
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~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
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NRG ENERGY, INC.10Q
11/02/2017,$ 23Recurring Fair Value Measurements
As of December 31, 2016
Fair Value
(In millions)Level 1Level 2 Level 3
Total3
+Investment in availableforsale securities
(classified within othernoncurrent assets):Debt securities
$?
$?~
F~
F%Availableforsale securities~
* ? ?~
*'Nuclear trust fund investments:
!Cash and cash equivalents~
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f6.U.S. government and federal agency obligations~
"~
?~
&1)Federal agency mortgagebacked securities ?~
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%Commercial mortgagebacked securities ?~
F ?~
F!Corporate debt securities ?~
R ?~
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?~
~
j2*Foreign government fixed income securities ?~
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%Other trust fund investments:
6.U.S. government and federal agency obligations~
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Derivative assets:
Commodity contracts~
~
~
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Interest rate contracts ?~
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Total assets~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
NRG ENERGY, INC.10Q
11/02/2017,$ 23Recurring Fair Value Measurements
0
(Fair Value Measurement Using Significant%Unobservable Inputs (Level 3)%Three months ended September 30, 2017,$Nine months ended September 30, 2017
(In millions)
Debt Securities
Trust Fund Investments
Derivatives (a)
Total
Debt Securities
Trust Fund Investments
Derivatives (a)
TotalBeginning balance~
J~
~
~
~
F~
~
~
3+Total gains/(losses) ? realized/unrealized:
Included in earnings~
?~
~
~
?~
J~
R6.Included in nuclear decommissioning obligation ?~
?~
?~
* ?~
* Purchases ?~
~
~
?~
?~
"Transfers into Level 3 (b) ? ?~
~
? ?~
~
$Transfers out of Level 3 (b) ? ?~
~
? ?~
6~
6/'Ending balance as of September 30, 2017~
N~
~
B~
~
N~
~
B~
2*Losses for the period included in earnings
$?
$?~
~
$?
$?~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
NRG ENERGY, INC.10Q
11/02/2017,$ 23Recurring Fair Value Measurements
0
(Fair Value Measurement Using Significant%Unobservable Inputs (Level 3)%Three months ended September 30, 2016,$Nine months ended September 30, 2016
(In millions)
Debt Securities
Trust Fund Investments
Derivatives (a)
Total
Debt Securities
Trust Fund Investments
Derivatives (a)
TotalBeginning balance~
B~
~
J~
V~
F~
~
~
3+Total (losses)/gains ? realized/unrealized:
Included in earnings ? ?~
~
? ?~
~
Included in OCI~
? ?~
? ? ? ?7/Included in nuclear decommissioning obligations ?~
?~
?~
?~
Purchases ? ?~
~
?~
~
~
"Transfers into Level 3 (b) ? ?~
~
? ?~
~
$Transfers out of Level 3 (b) ? ?~
~
? ? ? ?/'Ending balance as of September 30, 2016~
F~
~
~
~
F~
~
~
2*Losses for the period included in earnings
$?
$?~
~
$?
$?~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3) 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$ } }
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NRG ENERGY, INC.10Q
11/02/2017% 25Derivative Fair Value Measurements
'
Significant Unobservable InputsSeptember 30, 2017
Fair Value
Input/Range
Assets
Liabilities
Valuation Technique
&
Significant Unobservable Input
Low
High
Weighted Average
(In millions)
Power Contracts~
~
Discounted Cash Flow
&Forward Market Price (per MWh)~
*~
b~
bFTRs~
~
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Auction Prices (per MWh)~
~
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~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$ } }
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NRG ENERGY, INC.10Q
11/02/2017% 25Derivative Fair Value Measurements
'
Significant Unobservable InputsDecember 31, 2016
Fair Value
Input/Range
Assets
Liabilities
Valuation Technique
&
Significant Unobservable Input
Low
High
Weighted Average
(In millions)
Power Contracts~
~
Discounted Cash Flow
&Forward Market Price (per MWh)~
.~
~
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~
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Auction Prices (per MWh)~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }$}$ }y
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NRG ENERGY, INC.10Q
11/02/2017% 25Derivative Fair Value Measurements &
Significant Unobservable Input
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(
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Buy
Increase/(Decrease)
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }0.}$}$
NRG ENERGY, INC.10Q
11/02/2017# 27Counterparty Credit Risk
Net Exposure (a) (b)#Category by Industry Sector(% of Total).&Utilities, energy merchants, marketers~
n %
and otherFinancial institutions~
&&Total as of September 30, 2017~
%$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.dsg[7j.=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }a/}$}$
NRG ENERGY, INC.10Q
11/02/2017# 27Counterparty Credit Risk
Net Exposure (a) (b)/'Category by Counterparty Credit Quality(% of Total)Investment grade~
> %&
NonInvestment grade/NonRated~
V
&Total as of September 30, 2017~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$ }
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NRG ENERGY, INC.10Q
11/02/20171)Note 5 Nuclear Decommissioning Trust Fund
As of September 30, 2017
As of December 31, 2016%(In millions, except otherwise noted)
Fair ValueUnrealized Gains Unrealized Losses.
&Weightedaverage Maturities (In years)
Fair ValueUnrealized GainsUnrealized Losses.&Weightedaverage Maturities (In years)!Cash and cash equivalents~
~
$?
$?
?~
f
$?
$? ?6
.U.S. government and federal agency obligations~
~
?
~
*
~
&
~
?
~
.
1)Federal agency mortgagebacked securities~
*~
~
~
b~
~
~
~
f%Commercial mortgagebacked securities~
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^~
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~
j!Corporate debt securities~
~
~
~
.~
R~
~
~
.Equity securities~
:~
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?~
j~
Z ? ?2*Foreign government fixed income securities~
? ?~
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~
&~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning !Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }'}$
NRG ENERGY, INC.10Q
11/02/20171)Note 5 Nuclear Decommissioning Trust Fund
'
Nine months ended September 30,~
~
(In millions)
Realized gains~
"
~
Realized losses~
~
( Proceeds from sale of securities~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}}$
NRG ENERGY, INC.10Q
11/02/20175Volumetric Underlying Derivative Transactions
Total VolumeSeptember 30, 2017December 31, 2016Category
Units
(In millions)
Emissions
Short Ton~
?
Coal Short Ton~
>~
Natural Gas
MMBtu~
~
.OilBarrel ?~
PowerMWh~
N~
CapacityMW/Day~
~
InterestDollars~
z;~
5EquityShares~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying DerivativFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }$4}$
!
NRG ENERGY, INC.10Q
11/02/2017,$Fair Value of Derivative Instruments
Fair ValueDerivative Assets Derivative LiabilitiesSeptember 30, 2017December 31, 2016 September 30, 2017
December 31, 2016
(In millions)3+Derivatives designated as cash flow hedges:
'Interest rate contracts current
$?
$?~
"~
r)!Interest rate contracts longterm~
*~
2~
>~
1)Total derivatives designated as cash flow~
*~
2~
^~
hedges/'Derivatives not designated as cash flow
hedges :'Interest rate contracts current~
?~
N~
)!Interest rate contracts longterm~
n~
~
~
2#Commodity contracts current~
Z~
~
~
%Commodity contracts longterm~
~
~
~
0(Total derivatives not designated as cash~
~
~
R~
~
nflow hedgesTotal derivatives~
~
~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }y#}$
NRG ENERGY, INC.10Q
11/02/2017,$Fair Value of Derivative Instruments
1
)Gross Amounts Not Offset in the Statementof Financial Position80Gross Amounts of Recognized Assets / LiabilitiesDerivative Instruments '
Cash Collateral (Held) / Posted
Net Amount
As of September 30, 2017
(In millions)Commodity contracts:
Derivative assets~
~
z ~
~
bDerivative liabilities~
F~
~
N
~
!Total commodity contracts~
B ? ~
:
~
z Interest rate contracts:
Derivative assets~
~
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~
Derivative liabilities~
~
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~
%Total interest rate contracts~
r ?
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~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }y#}$
NRG ENERGY, INC.10Q
11/02/2017,$Fair Value of Derivative Instruments
1
)Gross Amounts Not Offset in the Statementof Financial Position80Gross Amounts of Recognized Assets / LiabilitiesDerivative Instruments '
Cash Collateral (Held) / Posted
Net Amount
As of December 31, 2016
(In millions)Commodity contracts:
Derivative assets~
~
~
~
Derivative liabilities~
~
~
6
~
!Total commodity contracts~
?
?
~
Interest rate contracts:
Derivative assets~
~
?
~
Derivative liabilities~
~
?
~
%Total interest rate contracts~
f ?
?
~
f$Total derivative instruments~
$?
$?
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}$
NRG ENERGY, INC.10Q
11/02/2017,$Accumulated Other Comprehensive Loss
Interest Rate Contracts( Three months ended September 30,' Nine months ended September 30,~
~
~
~
(In millions))!Accumulated OCI beginning balance~
~
n~
~
n4,Reclassified from accumulated OCI to income:
1)Due to realization of previously deferred~
~
~
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2amounts4,Marktomarket of cash flow hedge accounting~
~
~
~
Z contracts.&Accumulated OCI ending balance, net of~
~
~
~
$15, and $28 tax/'Losses expected to be realized from OCI~
:~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other ComprehensiveImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
#
NRG ENERGY, INC.10Q
11/02/2017H@Impact of Derivative Instruments on the Statements of Operations
(
Three months ended September 30,
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Nine months ended September 30,~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative Instrument! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }a/}$
NRG ENERGY, INC.10Q
11/02/2017H@Impact of Derivative Instruments on the Statements of Operations
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1) Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$ } 0.
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NRG ENERGY, INC.10Q
11/02/2017)! 33Note 8 Debt and Capital Leases #
(In millions, except rates)
September 30, 2017
December 31, 2016
.
&September 30, 2017 interest rate % (a) Recourse debt:
Senior notes, due 2018~
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~
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~
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~
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92999 2:*Subtotal longterm debt (including current~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }0}$
NRG ENERGY, INC.10Q
11/02/2017&Entities that are Consolidated
(In millions)
September 30, 2017
December 31, 2016Current assets~
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Other longterm assets~
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Total assets~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }'}}$ }}$ }}$
NRG ENERGY, INC.10Q
11/02/2017/' 36Note 10 Changes in Capital Structure
Issued
Treasury
Outstanding'Balance as of December 31, 2016~
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
'
NRG ENERGY, INC.10Q
11/02/2017,$ 37Note 11 Earnings/(Loss) Per Share
(
Three months ended September 30,
'
Nine months ended September 30,,$(In millions, except per share data)~
~
~
~
1)Basic and diluted income/(loss) per share/
'attributable to NRG Energy, Inc. commonstockholders%Net income/(loss) attributable to NRG~
~
J~
V~
VEnergy, Inc.&Dividends for preferred shares ? ? ?~
/'Gain on redemption of 2.822% redeemable ? ? ?~
!perpetual preferred stock7/Income/(loss) available for common stockholders~
~
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z0(Weighted average number of common shares~
~
~
~
outstanding  basic1)Income/(loss) per weighted average commonHzG?RQ? 333333
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share ? basic4,Diluted income/(loss) per share attributable
/'to NRG Energy, Inc. common stockholders0(Weighted average number of common shares~
~
~
~
outstanding  diluted.&Incremental shares attributable to the~
~
?~
1)issuance of equity compensation (treasury
stock method)Dlvj^R#b/ZB'7 !"#$%& Total dilutive shares~
~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/2017,$ 37Note 11 Earnings/(Loss) Per Share
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/2017$ 38Note 12 Segment Reporting
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/2017$ 38Note 12 Segment Reporting
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/2017$ 38Note 12 Segment Reporting
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/2017$ 38Note 12 Segment Reporting
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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11/02/2017Effective Tax Rate
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NRG ENERGY, INC.10Q
11/02/2017@8 50Note 18 Condensed Consolidating Financial Information
Ace Energy, Inc.
New Genco GP, LLC*
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
1
NRG ENERGY, INC.10Q
11/02/20175For the three months ended September 30, 2017
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended SeptFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
2
NRG ENERGY, INC.10Q
11/02/20174,For the nine months ended September 30, 2017
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
NRG ENERGY, INC.10Q
11/02/20175For the three months ended September 30, 2017
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
NRG ENERGY, INC.10Q
11/02/20174,For the nine months ended September 30, 2017
Guarantor Subsidiaries
"
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H
NRG ENERGY, INC.10Q
11/02/2017September 30, 2017
Guarantor Subsidiaries
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NonGuarantor Subsidiaries
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended Sept For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
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NRG ENERGY, INC.10Q
11/02/20175For the three months ended September 30, 2016
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
NRG ENERGY, INC.10Q
11/02/20175For the three months ended September 30, 2016
Guarantor Subsidiaries
"
NonGuarantor Subsidiaries
NRG Energy, Inc.
Eliminations (a)
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(Note Issuer)
(In millions)
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"NRG Energy, Inc.$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/B>XymaUIYuc!=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
%
NRG ENERGY, INC.10Q
11/02/20174,For the nine months ended September 30, 2016
Guarantor Subsidiaries
"
NonGuarantor Subsidiaries
NRG Energy, Inc.
Eliminations (a)
Consolidated
(Note Issuer)
(In millions)
Net Income~
~
~
n
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3) For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
L
NRG ENERGY, INC.10Q
11/02/2017December 31, 2016
Guarantor Subsidiaries
"
NonGuarantor Subsidiaries
NRG Energy, Inc.
Eliminations (a)
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
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NRG ENERGY, INC.10Q
11/02/2017@8For the nine months ended September 30, 2016 (Unaudited)
Guarantor Subsidiaries
"
NonGuarantor Subsidiaries
NRG Energy, Inc.
Eliminations (a)
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }a/}$ }
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11/02/2017PJM
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11/02/2017% 72Consolidated Results of Operations
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NRG ENERGY, INC.10Q
11/02/2017Electricity Prices
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11/02/2017Electricity Prices
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NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin

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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }:}$
6
NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin

%Three months ended September 30, 2016
Generation
(In millions)
Gulf Coast
East/West (a) Subtotal
Retail
Renewables NRG YieldCorporate/Eliminations
Total
Energy revenue~
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Capacity revenue~
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~
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Contract amortization~
?~
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Other revenue (b)~
~
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Operating revenue~
~
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v5Cost of fuel~
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1)Contract and emission credit amortization~
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1)Less: Marktomarket for economic hedging~
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netEconomic gross margin~
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Business Metrics
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NRG Yield.8.0(f) Does not include thermal MWh of 125 thousand4/,or MWt of 496 thousand for thermal generated0
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}
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NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin
(
Three months ended September 30,
Weather Metrics
Gulf Coast East/West
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
"
NRG ENERGY, INC.10Q
11/02/2017Gulf Coast Region
(In millions)0(Lower gross margin due to a 12% decrease~
/'in average realized prices primarily in.
&Texas due to lower hedged power prices3+Lower energy margin due to increased supply~
cost on load contracts5Lower capacity margin on contract expirations~
and lower demand7/Higher gross margin due to increased generation~
B0(primarily due to lower unplanned outages
Other~
)!Decrease in economic gross margin~
/'Decrease in marktomarket for economic~
/'hedging primarily due to net unrealized.&gains/losses on open positions relatedto economic hedges0(Increase in contract and emission credit~
amortization Decrease in gross margin~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
*
NRG ENERGY, INC.10Q
11/02/2017 East/West
(In millions)0(Lower gross margin due to a 37% decrease~
.&in generation driven by lower economic3
+generation due to milder weather conditions"and the Will County outage7/Lower gross margin from commercial optimization~
activities1)Higher gross margin due to a 38% increase~
V3+in PJM capacity volumes coupled with a 140%2*increase in NY/NE realized capacity prices1)Higher gross margin due to a 12% increase~
*0(in average realized energy prices due to0(extreme heat in California and increased1)pricing during high demand periods in theEast0(Lower gross margin by BETM due to higher~
5gains in 2016 on over the counter strategies,4,offset in small part by higher gains in 2017 on congestion strategies)!Decrease in economic gross margin~
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*/'hedging primarily due to net unrealizedDlym=a;J](Y5 !"#$%&'(). &gains/losses on open positions related!to economic hedges0"(Decrease in contract and emission credit~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }:}$
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NRG ENERGY, INC.10Q
11/02/201780 77Retail gross margin and economic gross margin
(
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
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NRG ENERGY, INC.10Q
11/02/201780 77Retail gross margin and economic gross margin
(In millions)0(Lower gross margin due to lower rates to~
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term, and mix of $26 million or approximately0($1.25 per MWh and higher supply costs of.&$10 million or approximately $0.50 per4,MWh driven primarily by an increase in power)!prices at the time of procurement0(Lower gross margin of $15 million due to~
4,a reduction in load of 477,000 MWh partially1)offset by $4 million in higher margin due3+to the lower unfavorable impacts of selling0(back excess supply due to milder weather.&conditions in 2017 as compared to 20161)Lower gross margin of $9 million due to a~
1)reduction in load of 200,000 MWh, and the1)unfavorable impact of selling back excess0(supply along with $7 million of customer1)relief related to the impact of HurricaneHarvey in 20171)Higher gross margin due to higher volumes~
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1) 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}$
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NRG ENERGY, INC.10Q
11/02/201791 78Marktomarket for Economic Hedging Activities

%Three months ended September 30, 2017
Generation
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RenewablesEliminations (a)
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}$
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NRG ENERGY, INC.10Q
11/02/201791 78Marktomarket for Economic Hedging Activities

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RenewablesEliminations (a)
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I"}$
NRG ENERGY, INC.10Q
11/02/201791 78Marktomarket for Economic Hedging Activities
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2) !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}!$
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"""""""NRG ENERGY, INC.10Q
11/02/2017% 80Operations and Maintenance Expense
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E!Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
NRG ENERGY, INC.10Q
11/02/2017
(In millions)%Decrease in operation and maintenance~
91expenses due to a reduction in normal maintenance3
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$
NRG ENERGY, INC.10Q
11/02/2017+#Selling, General and Administrative
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and AdministratElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
NRG ENERGY, INC.10Q
11/02/2017 81Interest Expense
(In millions)0(Decrease due to the repurchase of Senior~
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,by Senior Notes issued in 2016 of $7 million4,Decrease due to termination of swaps related~
+#to 2016 Capistrano debt refinancing0(Increase due to the issuance of Carlsbad~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$ } $}
$
NRG ENERGY, INC.10Q
11/02/2017Electricity Prices
+
#Average on Peak Power Price ($/MWh)'Nine months ended September 30,Region~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$ } U}
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NRG ENERGY, INC.10Q
11/02/2017Electricity Prices
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }:}$
6
NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin
,
$Nine months ended September 30, 2017
Generation
(In millions)
Gulf Coast
East/West (a) Subtotal
Retail
Renewables NRG YieldCorporate/Eliminations
Total
Energy revenue~
~
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~
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$?
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Capacity revenue~
>~
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BL6.Marktomarket for economic hedging activities~
~
~
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Contract amortization~
. ?~
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?~
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^Other revenue (b)~
>~
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?~
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Operating revenue~
^~
~
0~
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~
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:~
Cost of fuel~
~
n~
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~
JOther cost of sales (c)~
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~
~
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~
~
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~
6.Marktomarket for economic hedging activities~
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b1)Contract and emission credit amortization~
~
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~
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netEconomic gross margin~
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8Business Metrics
#MWh sold (thousands) (d)(e)~
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eliminations.#%(b) Renewables other revenue includes.$&$21 million of intercompany revenue to%
NRG Yield./&'(c) Includes purchased energy, capacity'and emissions credits.6(.(d) MWh sold excludes generation at facilities5)in the East, West and NRG Yield that generate**"revenue under capacity agreements.7+/(e) Does not include thermal MWh of 27 thousand1,)or MWt of 1,450 thousand for thermal sold
by NRG Yield.7./(f) Does not include thermal MWh of 80 thousand6/.or MWt of 1,450 thousand for thermal generated0
by NRG Yield.12$3____________________________14)Created by Morningstar Document Research.05(http://documentresearch.morningstar.com/0Pf4V(d*=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }:}$
6
NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin
,
$Nine months ended September 30, 2016
Generation
(In millions)
Gulf Coast
East/West (a) Subtotal
Retail
Renewables NRG YieldCorporate/Eliminations
Total
Energy revenue~
~
~
&
$?
~
~
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~
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&
Capacity revenue~
z~
R~
? ?~
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bContract amortization~
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~
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activities, net80Less: Contract and emission credit amortization,~
~
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netEconomic gross margin~
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~
~
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~
b~
~
ABusiness Metrics
#MWh sold (thousands) (d)(e)~
w~
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j 7!/(a) Includes International, BETM and Generation"
eliminations.#%(b) Renewables other revenue includes.$&$13 million of intercompany revenue to%
NRG Yield./&'(c) Includes purchased energy, capacity'and emissions credits6(.(d) MWh sold excludes generation at facilities5)in the East, West and NRG Yield that generate**"revenue under capacity agreements.7+/(e) Does not include thermal MWh of 61 thousand1,)or MWt of 1,497 thousand for thermal sold
by NRG Yield.8.0(f) Does not include thermal MWh of 248 thousand6/.or MWt of 1,497 thousand for thermal generated0
by NRG Yield.12$3____________________________14)Created by Morningstar Document Research.05(http://documentresearch.morningstar.com/0Pf4W)d*=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}
}$ }
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NRG ENERGY, INC.10Q
11/02/2017Economic Gross Margin
'
Nine months ended September 30,
Weather Metrics
Gulf Coast East/West
~
CDDs (a)~
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~
HDDs (a)~
~
~
CDDs~
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HDDs~
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10 year average
CDDs~
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HDDs~
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#
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
)
NRG ENERGY, INC.10Q
11/02/2017Gulf Coast Region
(In millions)0(Lower gross margin due to a 12% decrease~
~/'in average realized prices primarily in.
&Texas due to lower hedged power prices3+Lower energy margin due to increased supply~
fcosts on load contracts5Lower capacity margin on contract expirations~
and lower demand0(Lower gross margin due to a 42% decrease~
1)in ISO capacity prices and a 58% decrease in volume0(Lower gross margin from a 7% decrease in~
/'nuclear generation driven by the timingof planned outages0(Higher gross margin primarily due to 19%~
.&higher coal generation mainly in Texas+#driven by timing of planned outages
Other~
)!Decrease in economic gross margin~
/'Increase in marktomarket for economic~
/'hedging primarily due to net unrealized.&gains/losses on open positions relatedDl}qe5]z,aCi" !"#$%&'( to economic hedges0!(Increase in contract and emission credit~
!!"amortization #Increase in gross margin~
#~#$%$&____________________________1')Created by Morningstar Document Research.0((http://documentresearch.morningstar.com/>2&=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
+
NRG ENERGY, INC.10Q
11/02/2017 East/West
(In millions)0(Lower gross margin due to a 14% decrease~
.&in generation driven by lower economic3
+generation due to milder weather conditions"and the Will County outage0(Lower gross margin by BETM due to higher~
N5gains in 2016 on over the counter strategies,4,offset in small part by higher gains in 2017 on congestion strategies7/Lower gross margin from commercial optimization~
f
activities7/Lower gross margin due to lower load contracted~
2*prices coupled with slightly lower volumes0(Lower gross margin due to a 16% decrease~
6.in capacity pricing in New York of $10 million2*coupled with decreases in capacity pricing2*and volumes due to the Long Beach capacity/'toll expiration and unit retirements in
California
Other~
)!Decrease in economic gross margin~
/'Increase in marktomarket for economic~
2Dlym=a;Xbn;% !"#$%&'()*/ 'hedging primarily due to net unrealized.!&gains/losses on open positions related"to economic hedges0#(Increase in contract and emission credit~
##$amortization %Decrease in gross margin~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1) 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }:}$
*
NRG ENERGY, INC.10Q
11/02/201791 86 Retail gross margin and economic gross margin
'
Nine months ended September 30,,$(In millions except otherwise noted)~
~
Retail revenue~
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Supply management revenue~
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~
Capacity revenue~
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*Operating revenue (a)~
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>6.Marktomarket for economic hedging activities~
~
ZContract amortization ?~
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Zactivities, net80Less: Contract and emission credit amortization, ?~
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~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
.
NRG ENERGY, INC.10Q
11/02/201791 86 Retail gross margin and economic gross margin
(In millions)0(Lower gross margin due to lower rates to~
%customers driven by customer product,5
term, and mix of $95 million or approximately4,$2 per MWh, partially offset by lower supply2*costs of $5 million or approximately $0.101)per MWh driven primarily by a decrease in/'power prices at the time of procurement1)Lower gross margin of $9 million due to a~
1)reduction in load of 200,000 MWh, and the1)unfavorable impact of selling back excess0(supply along with $7 million of customer1)relief related to the impact of HurricaneHarvey in 20170(Lower gross margin of $13 million due to~
1)a reduction in load of 420,000 MWh and $26.million in lower margin due to the unfavorable1)impacts of selling back excess supply due/'to milder weather conditions in 2017 ascompared to 20161)Higher gross margin due to higher volumes~
/'driven by higher average customer usageDlui]QEq8bu@&i4 !"#$%&'()*+, and mix)!!Decrease in economic gross margin~
!!/"'Decrease in marktomarket for economic~
"B"/#'hedging primarily due to net unrealized.$&gains/losses on open positions related%to economic hedges0&(Increase in contract and emission credit~
&&'amortization (Decrease in gross margin~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1) Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}$
%
NRG ENERGY, INC.10Q
11/02/20176.Marktomarket for Economic Hedging Activities
,
$Nine months ended September 30, 2017
Generation
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RenewablesEliminations (a)
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(In millions)4,Marktomarket results in operating revenues
4,Reversal of previously recognized unrealized~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
%
NRG ENERGY, INC.10Q
11/02/20176.Marktomarket for Economic Hedging Activities
,
$Nine months ended September 30, 2016
Generation
Gulf Coast East/West Retail
RenewablesEliminations (a)
Total
(In millions)4,Marktomarket results in operating revenues
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }$}$
NRG ENERGY, INC.10Q
11/02/20176.Marktomarket for Economic Hedging Activities
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Nine months ended September 30,
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2) (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }+}$
NRG ENERGY, INC.10Q
11/02/2017% 89Operations and Maintenance Expense
Generation
Retail
Renewables
NRG Yield
Corporate
Eliminations
Total
Gulf Coast
East/West (a)
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$Nine months ended September 30, 2017~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance ESelling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }I;}$
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NRG ENERGY, INC.10Q
11/02/2017
(In millions)%Decrease in operation and maintenance~
4,expenses due to major maintenance activities1
)and environmental control work at MidwestGeneration in 2016%Decrease in operation and maintenance~
3+expenses due to lower expenses at Big Cajun
II in 2017%Decrease in operation and maintenance~
/'expenses due to the deactivation of the.&Huntley and Dunkirk facilities in 2016%Decrease in operation and maintenance~
91expenses due to a reduction in normal maintenance3+at various gas and coal facilities in Texas4,Decrease in Retail operation and maintenance~
)!expenses due to reduced headcount.&Decrease in operations and maintenance~
1)expenses related to outage work at ArthurKill in 2016.&Decrease in operations and maintenance~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }+}$
NRG ENERGY, INC.10Q
11/02/2017+#Selling, General and Administrative
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Retail
Renewables
NRG Yield
Corporate
Total
(In millions),$Nine months ended September 30, 2017~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Liquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }8}$
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NRG ENERGY, INC.10Q
11/02/2017Interest Expense
(In millions)0(Decrease due to the repurchase of Senior~
>4,Notes in 2016 of $127 million, partly offset5
by Senior Notes issued in 2016 of $78 million4,Decrease due to termination of swaps related~
+#to 2016 Capistrano debt refinancing6.Increase due to the issuance of Utah Portfolio~
B1)debt, due 2022 and CVSR Holdco Notes, due2037 during 20160(Increase due to the issuance of Carlsbad~
*5Energy Project debt and Agua Caliente HoldCo,due 2038 during 2017/'Increase in derivative interest expense~
&3+from changes in fair value of interest rate
swaps7/Increase due to the issuance of Yield Operating~
"0(Senior Notes, due 2026, partially offset2*by repayment of the Yield Revolving Credit&Facility, due 2019 during 2016
Other~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }}$
NRG ENERGY, INC.10Q
11/02/2017Liquidity Position
(In millions)
September 30, 2017
December 31, 2016"Cash and cash equivalents:NRG excluding NRG Yield~
R~
"
NRG Yield and subsidiaries~
~
#Restricted cash  operating~
~
&Restricted cash  reserves (a)~
v~
Total~
~
*"Total credit facility availability~
~
v%Total liquidity, excluding collateral~
4~
%received$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4pdZ*opH=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity Position 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }U5}}$ }
NRG ENERGY, INC.10Q
11/02/2017Credit Ratings
S&P
Moody'sNRG Energy, Inc.
BB Stable
Ba3 Stable%7.625% Senior Notes, due 2018BB
B1%
7.875% Senior Notes, due 2021
BB
B1$6.25% Senior Notes, due 2022BB
B1%6.625% Senior Notes, due 2023BB
B1$6.25% Senior Notes, due 2024BB
B1$7.25% Senior Notes, due 2026BB
B1%6.625% Senior Notes, due 2027BB
B1$Term Loan Facility, due 2023BB+Baa3NRG Yield, Inc.
BBBa24,5.375% NRG Yield Operating LLC Senior Notes,
BBBa2due 20243+5.00% NRG Yield Operating LLC Senior Notes,
BBBa2due 2026$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/>0th8Xcowc=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}
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NRG ENERGY, INC.10Q
11/02/2017 93First Lien Structure
2
*Equivalent Net Sales Secured by First Lien~
~
~
~
~
Structure (a)
In MW~
~
?
?
?5
As a percentage of total net coal and nuclear~
n
%
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
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NRG ENERGY, INC.10Q
11/02/2017 95Capital Expenditures
Maintenance
Environmental
Growth Investments
Total
(In millions)
Generation
Gulf Coast~
&
~
~
~
6
East/West~
F~
b~
~
fRetail~
Z ?~
~
Renewables~
?~
~
NRG Yield~
V ?~
~
^ Corporate~
. ?~
~
2/'Total cash capital expenditures for the~
N~
f~
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,$nine months ended September 30, 20176. Funding from third party equity partners, ? ?~
F~
F3+cash grants and debt financing, net of fees" Other investments (a) ? ?~
~~
~3+Total capital expenditures and investments,~
N~
f~
~
net of financings
.&Estimated capital expenditures for the~
2~
*~
~
remainder of 20176. Funding from third party equity partners, ? ?~
~
3+cash grants and debt financing, net of fees.&NRG estimated capital expenditures for~
2~
*~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }0}U}$ }<}$ }}$ }<
NRG ENERGY, INC.10Q
11/02/2017 96Fuel Repowerings
Facility(
Net Generation Capacity (MW) (b)
Project Type
Fuel Type
Targeted CODRepowerings0(Carlsbad Peakers (formerly Encina) Units~
>GrowthNatural GasQ4 2018
1, 2, 3, 4, 5 and GT.&Puente (formerly Mandalay) Units 1 and~
GrowthNatural GasQ2 2020
2 (a)Total Fuel Repowerings~
V$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0{ocN5iX=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }1}$
NRG ENERGY, INC.10Q
11/02/2017 97Cash Flow Discussion
'
Nine months ended September 30,
~
~
Change
(In millions)
%Net cash used by operating activities~
~
6
~
f
%Net cash used by investing activities~
~
~
1)Net cash provided by financing activities~
~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
#
NRG ENERGY, INC.10Q
11/02/2017%Net Cash Used By Operating Activities
(In millions)0(Changes in cash collateral in support of~
R1)risk management activities due to changes
in commodity prices%Decrease in operating income adjusted~
for noncash items0(Decrease in other assets and liabilities~
,$Cash used by discontinued operations~
^1)Decrease in accounts payable due to lower~
3+expenses and the timing of payments in 2017compared to 2016.5Increase in inventory due to lower generation~
0(in 2017, combined with earlier inventory/'purchases in the fourth quarter of 20154,for anticipated 2016 generation requirements
Other~
v.&Decrease in accounts receivable due to~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }6}$
NRG ENERGY, INC.10Q
11/02/2017%Net Cash Used By Investing Activities
(In millions),$Cash used by discontinued operations~
1)Decrease in maintenance and environmental~
n3
+capital expenditures, offset by an increase&in growth capital expenditures5Proceeds from sale of assets in 2016 compared~
Bto 2017.&Increase in cash paid for acquisitions~
in 2017 compared to 2016
Other~
5Net increase in emissions allowances activity~
~
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }7}$
$
NRG ENERGY, INC.10Q
11/02/20171)Net Cash Provided By Financing Activities
(In millions)1)Increase in borrowings, primarily related~
j4,to Agua Caliente Borrower 1 & 2, 2038 Senior0
(Notes and the Carlsbad Project Financing6.as well as reduced payments due to repurchasesof Senior Notes in 20163+Increase due to purchase of preferred stock~
in 2016.&Increase in cash contributions, net of~
3+distributions from noncontrolling interestin 2017,$Decrease in debt extinguishment cost~
3+Decrease in payment of dividends, primarily~
1)related to reduction of NRG dividend rate$in the first quarter of 2016/'Decrease in deferred debt issuance cost~
n%Decrease in financing element related~
to acquired derivatives( Payment for affiliate receivable~
,$Cash used by discontinued operations~
~
Dl}qeYMq=0KV3 !"# $!____________________________1")Created by Morningstar Document Research.0#(http://documentresearch.morningstar.com/<=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing 99Fair Value of (1)Commodity Price Risk 105ITEM 6 EXHIBITSU }2}$
NRG ENERGY, INC.10Q
11/02/2017/' 99Fair Value of Derivative Instruments *
"Derivative Activity (Losses)/Gains
(In millions)2*Fair Value of Contracts as of December 31,~
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'Contracts realized or otherwise settled~
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30, 2017$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0sg[Ozth@=PF0*8X>
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative InsCommodity Price Risk 105ITEM 6 EXHIBITSU }*}$
NRG ENERGY, INC.10Q
11/02/2017/' 99Fair Value of Derivative Instruments
/
'Fair Value of Contracts as of September30, 2017Maturity+
#Fair value hierarchy (Losses)/Gains
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FORM 10QNRG Energy IncIndex 4GLOSSARY OF TERMS 4GLOSSARY OF T (1) 4GLOSSARY OF T (2)!CONDENSED CONSOLIDATED STATEMENCONDENSED CONSOLIDATED (1)!CONDENSED CONSOLIDATED BALANCE CONDENSED CONSOLIDATED (2)!Other Balance Sheet Information 15Restricted CashNoncontrolling Interest!Redeemable Noncontrolling InterDiscontinued OperationsDiscontinued Op (1)!Note 4 Fair Value of Financial Note 4 Fair Value of (1)! 23Recurring Fair Value Measure 23Recurring Fair Value (1) 23Recurring Fair Value (2) 23Recurring Fair Value (3)! 25Derivative Fair Value Measur 25Derivative Fair Value (1) 25Derivative Fair Value (2) 27Counterparty Credit Risk 27Counterparty Credit (1)!Note 5 Nuclear Decommissioning Note 5 Nuclear (1)!Volumetric Underlying Derivativ!Fair Value of Derivative InstruFair Value of Derivative (1)Fair Value of Derivative (2)!Accumulated Other Comprehensive!Impact of Derivative InstrumentImpact of Derivative (1)! 33Note 8 Debt and Capital Leas Entities that are Consolidated! 36Note 10 Changes in Capital S! 37Note 11 EarningsLoss Per Sha 37Note 11 EarningsLoss (1) 38Note 12 Segment Reporting 38Note 12 Segment (1) 38Note 12 Segment (2) 38Note 12 Segment (3)Effective Tax Rate! 50Note 18 Condensed Consolidat!For the three months ended Sept!For the nine months ended SepteFor the three months (1) For the nine months ended (1)September 30 2017 ! For the nine months ended SeptFor the three months (2) For the nine months ended (2)For the three months (3) For the nine months ended (3)December 31 2016 For the nine months ended (4)Introduction and OverviewPJM! 72Consolidated Results of OperElectricity PricesElectricity Pri (1)Economic Gross MarginEconomic Gross (1)Economic Gross (2)Gulf Coast Region
EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1) 105ITEM 6 EXHIBITSU }'}$
NRG ENERGY, INC.10Q
11/02/2017Commodity Price Risk
(In millions)~
~
VaR as of September 30,~
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Average~
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EastWest! 77Retail gross margin and econ 77Retail gross margin (1)! 78Marktomarket for Economic He 78Marktomarket for (1) 78Marktomarket for (2)! 80Operations and Maintenance E !Selling General and Administrat 81Interest ExpenseElectricity Pri (2)Electricity Pri (3)Economic Gross (3)Economic Gross (4)Economic Gross (5)Gulf Coast Regi (1)EastWest (1)! 86 Retail gross margin and eco 86 Retail gross margin (1)!Marktomarket for Economic Hedgi Marktomarket for Economic (1) Marktomarket for Economic (2)! 89Operations and Maintenance E (1)Selling General and (1)Interest ExpenseLiquidity PositionCredit Ratings 93First Lien Structure 95Capital Expenditures 96Fuel Repowerings 97Cash Flow Discussion!Net Cash Used By Operating Acti!Net Cash Used By Investing Acti!Net Cash Provided By Financing ! 99Fair Value of Derivative Ins 99Fair Value of (1)Commodity Price RiskU }I }$ }I;}$ }$4
/
NRG ENERGY, INC.10Q
11/02/2017 105ITEM 6 EXHIBITS
Number
Description
Method of Filing333333$@0(Amended and Restated Backstop Commitment3+Incorporated herein by reference to Exhibit3+Letter, dated as of October 2, 2017, by and/'10.1 to the Registrant's Current Report
0
(among GenOn Energy, Inc., GenOn Americas

%on Form 8K filed on October 6, 2017.%Generation, LLC, the guarantors party%thereto and backstop parties thereto.ffffff$@/'First Amendment, dated as of October 2,3+Incorporated herein by reference to Exhibit.&2017, to the Restructuring Support and/'10.2 to the Registrant's Current Report/'LockUp Agreement, dated as of June 12,%on Form 8K filed on October 6, 2017.4,2017, by and among GenOn Energy, Inc., GenOn%Americas Generation, LLC, NRG Energy,1)Inc. and the consenting noteholders partythereto.$@.&Consent Agreement, dated as of October3+Incorporated herein by reference to Exhibit1)30, 2017, by and among GenOn Energy, Inc,/'10.1 to the Registrant's Current Report2*GenOn Americas Generation LLC, and certain.&on Form 8K filed on November 1, 2017..&of their directly and indirectly owned2*subsidiaries listed on the signature pages91thereto, and the Required Consenting Noteholders.?@.&Rule 13a14(a)/15d14(a) certificationFiled herewith.of Mauricio Gutierrez.333333?@.&Rule 13a14(a)/15d14(a) certificationFiled herewith.Dkl{oc'5oNB*= !"#$%&'()*+,. of Kirkland B. Andrews.!L?@!.!&Rule 13a14(a)/15d14(a) certification!!Filed herewith."""of David Callen.~
####Section 1350 Certification.##Furnished herewith.$101 INS$$XBRL Instance Document.$$Filed herewith.%101 SCH%'%XBRL Taxonomy Extension Schema.%%Filed herewith.&101 CAL&5&XBRL Taxonomy Extension Calculation Linkbase.&&Filed herewith.'101 DEF'4',XBRL Taxonomy Extension Definition Linkbase.''Filed herewith.(101 LAB(/('XBRL Taxonomy Extension Label Linkbase.((Filed herewith.)101 PRE),)$XBRL Taxonomy Extension Presentation))Filed herewith.*** Linkbase.+$,____________________________1)Created by Morningstar Document Research.0.(http://documentresearch.morningstar.com/"NEU^=PF0*8X>
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