x | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | |
For the Quarterly Period Ended: September 30, 2017 | ||
o | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Delaware (State or other jurisdiction of incorporation or organization) | (609) 524-4500 (Registrants' telephone number, including area code) | |
804 Carnegie Center, Princeton, New Jersey (Address of principal executive offices) | 08540 (Zip Code) |
GenOn Energy, Inc. | o | Yes | o | No | |
GenOn Americas Generation, LLC | o | Yes | o | No | |
GenOn Mid-Atlantic, LLC | o | Yes | o | No |
GenOn Energy, Inc. | x | Yes | o | No | |
GenOn Americas Generation, LLC | x | Yes | o | No | |
GenOn Mid-Atlantic, LLC | x | Yes | o | No |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company | |
GenOn Energy, Inc. | o | o | x | o | o |
GenOn Americas Generation, LLC | o | o | x | o | o |
GenOn Mid-Atlantic, LLC | o | o | x | o | o |
(Do not check if a smaller reporting company) |
GenOn Energy, Inc. | o | ||||
GenOn Americas Generation, LLC | o | ||||
GenOn Mid-Atlantic, LLC | o |
GenOn Energy, Inc. | o | Yes | x | No | |
GenOn Americas Generation, LLC | o | Yes | x | No | |
GenOn Mid-Atlantic, LLC | o | Yes | x | No |
Registrant | Parent | ||
GenOn Energy, Inc. | NRG Energy, Inc. | ||
GenOn Americas Generation, LLC | NRG Americas, Inc. | ||
GenOn Mid-Atlantic, LLC | NRG North America LLC |
Item 2 — MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS | ||
• | The ability of GenOn, GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries to consummate one or more plans of reorganization with respect to their Chapter 11 Cases, and to consummate the transactions contemplated by the Restructuring Support Agreement, including the ability of GenOn to successfully operate following any reorganization; |
• | The existence and duration of the Chapter 11 Cases, and the impact of orders and decisions of the Bankruptcy Court; |
• | The willingness of counterparties to transact with the Registrants during the Chapter 11 cases; |
• | GenOn's and certain of its subsidiaries' ability to continue as a going concern; |
• | The Registrants' ability to attract and retain skilled people, with the necessary applicable experience, particularly during the pendency of the Chapter 11 Cases; |
• | General economic conditions, changes in the wholesale power markets and fluctuations in the cost of fuel; |
• | Volatile power supply costs and demand for power; |
• | Hazards customary to the power production industry and power generation operations such as fuel and electricity price volatility, unusual weather conditions, catastrophic weather-related or other damage to facilities, unscheduled generation outages, maintenance or repairs, unanticipated changes to fuel supply costs or availability due to higher demand, shortages, transportation problems or other developments, environmental incidents, or electric transmission or gas pipeline system constraints and the possibility that the Registrants may not have adequate insurance to cover losses as a result of such hazards; |
• | The effectiveness of the Registrants’ risk management policies and procedures, and the ability of the Registrants’ counterparties to satisfy their financial commitments; |
• | Counterparties' collateral demands and other factors affecting the Registrants' liquidity position and financial condition; |
• | The Registrants’ ability to borrow additional funds and access capital markets, as well as GenOn’s substantial indebtedness and the possibility that the Registrants may incur additional indebtedness going forward; |
• | The Registrants' ability to find market participants that are willing to act as hedging counterparties; |
• | The Registrants’ ability to operate their businesses efficiently, manage capital expenditures and costs tightly, and generate earnings and cash flows from their asset-based businesses in relation to their debt and other obligations; |
• | The Registrants’ ability to enter into contracts to sell power and procure fuel on acceptable terms and prices; |
• | The liquidity and competitiveness of wholesale markets for energy commodities; |
• | Government regulation, including compliance with regulatory requirements and changes in market rules, rates, tariffs and environmental laws; |
• | Changes in law, including judicial decisions; |
• | Price mitigation strategies and other market structures employed by ISOs or RTOs that result in a failure to adequately compensate the Registrants' generation units for all of their costs; |
• | The Registrants' ability to mitigate forced outage risk for units subject to capacity performance requirements in PJM and performance incentives in ISO-NE; |
• | Operating and financial restrictions placed on the Registrants and their subsidiaries that are contained in the indentures governing GenOn’s outstanding notes, and in debt and other agreements of certain of the Registrants’ subsidiaries and project affiliates generally; |
• | The Registrants’ ability to implement their strategy of finding ways to meet the challenges of climate change, clean air and protecting natural resources while taking advantage of business opportunities; |
• | The Registrants’ ability to implement their strategy of increasing the return on invested capital through operational performance improvements and a range of initiatives at plants and corporate offices to reduce costs or generate revenues; and |
• | The Registrants’ ability to develop and maintain successful partnering relationships. |
2016 Form 10-K | The Registrants' Annual Report on Form 10-K for the year ended December 31, 2016 | |
Amended Plan | Amended Joint Chapter 11 Plan of Reorganization filed by the GenOn Entities on September 18, 2017 | |
ASC | The FASB Accounting Standards Codification, which the FASB established as the source of authoritative GAAP | |
ASU | Accounting Standards Updates, which reflect updates to the ASC | |
Average realized prices | Volume-weighted average power prices, net of average fuel costs and reflecting the impact of settled hedges | |
Bankruptcy Code | Chapter 11 of Title 11 of the United States Bankruptcy Code | |
Bankruptcy Court | United States Bankruptcy Court for the Southern District of Texas, Houston Division | |
CAIR | Clean Air Interstate Rule | |
CAISO | California Independent System Operator | |
CenterPoint | CenterPoint Energy, Inc. and its subsidiaries, on and after August 31, 2002, and Reliant Energy, Incorporated and its subsidiaries prior to August 31, 2002 | |
CFTC | U.S. Commodity Futures Trading Commission | |
Chapter 11 Cases | Voluntary cases commenced by the GenOn Entities under the Bankruptcy Code in the Bankruptcy Court | |
CO2 | Carbon Dioxide | |
CPP | Clean Power Plan | |
CSAPR | Cross-State Air Pollution Rule | |
CWA | Clean Water Act | |
D.C. Circuit | U.S. Court of Appeals for the District of Columbia Circuit | |
Debt Documents | GenOn's Intercompany Revolver with NRG; the indenture governing the GenOn 7.875% Senior Notes due 2017 (as amended or supplemented from time to time); the indenture governing the GenOn 9.500% Notes due 2018 (as amended or supplemented from time to time); the indenture governing the GenOn 9.875% Notes due 2020 (as amended or supplemented from time to time); the indenture governing the GenOn Americas Generation 8.50% Senior Notes due 2021 (as amended or supplemented from time to time); and the indenture governing the GenOn Americas Generation 9.125% Senior Notes due 2031 (as amended or supplemented from time to time) | |
Economic gross margin | Sum of energy revenue, capacity revenue and other revenue, less cost of fuels and other cost of sales | |
EGU | Electric Generating Unit | |
ELG | Effluent Limitations Guidelines | |
EPA | United States Environmental Protection Agency | |
Exchange Act | The Securities Exchange Act of 1934, as amended | |
FASB | Financial Accounting Standards Board | |
FERC | Federal Energy Regulatory Commission | |
FGD | Flue gas desulfurization | |
FTRs | Financial Transmission Rights | |
FPA | Federal Power Act | |
GAAP | Accounting principles generally accepted in the U.S. | |
GenOn | GenOn Energy, Inc. and, except where the context indicates otherwise, its subsidiaries | |
GenOn Americas Generation | GenOn Americas Generation, LLC and, except where the context indicates otherwise, its subsidiaries | |
GenOn Americas Generation Senior Notes | GenOn Americas Generation's $695 million outstanding unsecured senior notes consisting of $366 million of 8.5% senior notes due 2021 and $329 million of 9.125% senior notes due 2031 |
GenOn Energy Holdings | GenOn Energy Holdings, Inc. and, except where the context indicates otherwise, its subsidiaries | |
GenOn Energy Management | GenOn Energy Management, LLC, a wholly owned subsidiary of GenOn Americas Generation, LLC | |
GenOn Entities | GenOn and certain of its wholly owned subsidiaries, including GenOn Americas Generation. that filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court on June 14, 2017 | |
GenOn Mid-Atlantic | GenOn Mid-Atlantic, LLC and, except where the context indicates otherwise, its subsidiaries, which include the coal generation units at two generating stations under operating leases | |
GenOn Senior Notes | GenOn's $1.8 billion outstanding unsecured senior notes consisting of $691 million of 7.875% senior notes due 2017, $649 million of 9.5% senior notes due 2018, and $490 million of 9.875% senior notes due 2020 | |
GHG | Greenhouse Gases | |
GW | Gigawatts | |
HAPs | Hazardous Air Pollutants | |
ICE | Intercontinental Exchange | |
ISO | Independent System Operator, also referred to as RTO | |
ISO-NE | ISO New England Inc. | |
LIBOR | London Interbank Offered Rate | |
MATS | Mercury and Air Toxics Standards promulgated by the EPA | |
MC Asset Recovery | MC Asset Recovery, LLC | |
MDE | Maryland Department of the Environment | |
Mirant | GenOn Energy Holdings, Inc. (formerly known as Mirant Corporation) and, except where the context indicates otherwise, its subsidiaries | |
Mirant/RRI Merger | The merger completed on December 3, 2010 of Mirant Corporation and RRI Energy Inc. to form GenOn Energy, Inc. | |
Mirant Debtors | GenOn Energy Holdings, Inc. (formerly known as Mirant Corporation) and certain of its subsidiaries | |
MISO | Midcontinent Independent System Operator, Inc. | |
MMBtu | Million British Thermal Units | |
MW | Megawatts | |
MWh | Saleable megawatt hours net of internal/parasitic load megawatt-hours | |
NAAQS | National Ambient Air Quality Standards | |
Net Exposure | Counterparty credit exposure to GenOn, GenOn Americas Generation or GenOn Mid-Atlantic, as applicable, net of collateral | |
NERC | North American Electric Reliability Corporation | |
NOx | Nitrogen Oxides | |
NPDES | National Pollution Discharge Elimination System | |
NPNS | Normal Purchase Normal Sale | |
NRG | NRG Energy, Inc. and, except where the context indicates otherwise, its subsidiaries | |
NRG Merger | The merger completed on December 14, 2012, whereby GenOn became a wholly owned subsidiary of NRG | |
NYISO | New York Independent System Operator | |
NYMEX | New York Mercantile Exchange | |
OCI | Other Comprehensive Income/(Loss) | |
PER | Peak Energy Rent | |
Petition Date | June 14, 2017 | |
PJM | PJM Interconnection, LLC | |
Plan | Joint Chapter 11 Plan of Reorganization of the GenOn Entities filed on June 29, 2017 and as amended on September 18, 2017 and October 2, 2017 | |
PUCO | Public Utility Commission of Ohio |
RCRA | Resource Conservation and Recovery Act of 1976 | |
Registrants | GenOn, GenOn Americas Generation and GenOn Mid-Atlantic, collectively | |
REMA | NRG REMA LLC (formerly known as GenOn REMA, LLC) | |
Restructuring Support Agreement | Restructuring Support and Lock-Up Agreement, dated as of June 12, 2017 and as amended by the first amendment thereto on October 2, 2017, by and among GenOn Energy, Inc., GenOn Americas Generation, LLC, the subsidiaries signatory thereto, NRG Energy, Inc. and the noteholders signatory thereto | |
RTO | Regional Transmission Organization | |
Second Amended Plan | Second Amended Joint Chapter 11 Plan of Reorganization of the GenOn Entities filed on October 2, 2017 | |
Securities Act | The Securities Act of 1933, as amended | |
Settlement Agreement | A settlement agreement and any other documents necessary to effectuate the settlement among NRG, GenOn, and certain holders of senior unsecured notes of GenOn Americas Generation and GenOn, and certain of GenOn's direct and indirect subsidiaries | |
Seward | The Seward Generating Station, a 525 MW coal-fired facility in Pennsylvania | |
Shelby | The Shelby County Generating Station, a 352 MW natural gas-fired facility in Illinois | |
SO2 | Sulfur Dioxide | |
U.S. | United States of America |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | |||||||||||||||
Operating revenues | $ | 483 | $ | 544 | $ | 1,161 | $ | 1,515 | |||||||
Operating revenues — affiliate | 1 | (12 | ) | 70 | (6 | ) | |||||||||
Total operating revenues | 484 | 532 | 1,231 | 1,509 | |||||||||||
Operating Costs and Expenses | |||||||||||||||
Cost of operations | 224 | 279 | 650 | 864 | |||||||||||
Cost of operations — affiliate | 90 | 74 | 226 | 180 | |||||||||||
Depreciation and amortization | 43 | 59 | 128 | 153 | |||||||||||
Impairment losses | — | — | — | 59 | |||||||||||
General and administrative | 11 | 10 | 26 | 14 | |||||||||||
General and administrative — affiliate | 14 | 46 | 100 | 139 | |||||||||||
Total operating costs and expenses | 382 | 468 | 1,130 | 1,409 | |||||||||||
Gain on sale of assets | — | 262 | — | 294 | |||||||||||
Operating Income | 102 | 326 | 101 | 394 | |||||||||||
Other Income/(Expense) | |||||||||||||||
Other income, net | 3 | 2 | 9 | 6 | |||||||||||
Interest expense | (2 | ) | (41 | ) | (83 | ) | (123 | ) | |||||||
Interest expense — affiliate | (2 | ) | (3 | ) | (8 | ) | (9 | ) | |||||||
Other expense | — | — | (18 | ) | — | ||||||||||
Total other expense | (1 | ) | (42 | ) | (100 | ) | (126 | ) | |||||||
Income Before Reorganization Items and Income Taxes | 101 | 284 | 1 | 268 | |||||||||||
Reorganization items, net | (29 | ) | — | 48 | — | ||||||||||
Income Before Income Taxes | 72 | 284 | 49 | 268 | |||||||||||
Income tax expense | — | 21 | 7 | 20 | |||||||||||
Net Income | $ | 72 | $ | 263 | $ | 42 | $ | 248 |
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 810 | $ | 1,034 | |||
Restricted cash | 1 | — | |||||
Accounts receivable | 124 | 109 | |||||
Inventory | 375 | 389 | |||||
Derivative instruments | 29 | 54 | |||||
Derivative instruments — affiliate | 10 | 54 | |||||
Cash collateral posted in support of energy risk management activities | 47 | 53 | |||||
Cash collateral posted in support of energy risk management activities — affiliate | 25 | 79 | |||||
Prepaid rent and other current assets | 151 | 128 | |||||
Total current assets | 1,572 | 1,900 | |||||
Property, plant and equipment, net | 2,468 | 2,543 | |||||
Other Assets | |||||||
Intangible assets, net | 26 | 62 | |||||
Derivative instruments | 16 | 16 | |||||
Derivative instruments — affiliate | 1 | — | |||||
Long-term deposits | 130 | — | |||||
Prepaid rent — non-current | 352 | 245 | |||||
Other non-current assets | 136 | 94 | |||||
Total other assets | 661 | 417 | |||||
Total Assets | $ | 4,701 | $ | 4,860 | |||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||
Current Liabilities | |||||||
Current portion of long-term debt and capital leases | $ | 1 | $ | 704 | |||
Accounts payable | 79 | 113 | |||||
Accounts payable — affiliate | 27 | 78 | |||||
Derivative instruments | 26 | 46 | |||||
Derivative instruments — affiliate | 9 | 59 | |||||
Accrued expenses and other current liabilities | 128 | 191 | |||||
Total current liabilities | 270 | 1,191 | |||||
Liabilities Subject to Compromise | 2,862 | — | |||||
Other Liabilities | |||||||
Long-term debt and capital leases | 1 | 2,050 | |||||
Long-term debt — affiliate | 125 | — | |||||
Derivative instruments | 2 | 10 | |||||
Derivative instruments — affiliate | 4 | 7 | |||||
Out-of-market contracts | 753 | 811 | |||||
Other non-current liabilities | 289 | 451 | |||||
Total non-current liabilities | 1,174 | 3,329 | |||||
Total Liabilities | 4,306 | 4,520 | |||||
Commitments and Contingencies | |||||||
Stockholder's Equity | |||||||
Common stock: $0.001 par value, 1 share authorized and issued at September 30, 2017 and December 31, 2016 | — | — | |||||
Additional paid-in capital | 338 | 325 | |||||
Retained earnings | 86 | 44 | |||||
Accumulated other comprehensive loss | (29 | ) | (29 | ) | |||
Total Stockholder's Equity | 395 | 340 | |||||
Total Liabilities and Stockholder's Equity | $ | 4,701 | $ | 4,860 |
Nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(In millions) | |||||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 42 | $ | 248 | |||
Adjustments to reconcile net income to net cash (used)/provided by operating activities: | |||||||
Depreciation and amortization | 128 | 153 | |||||
Amortization of debt premiums | (24 | ) | (39 | ) | |||
Loss on financing arrangement for 2022 Notes | 18 | — | |||||
Non-cash adjustment to write-off unamortized debt premiums | (107 | ) | — | ||||
Amortization of out-of-market contracts and emission allowances | (59 | ) | (58 | ) | |||
Gain on sale of assets | — | (294 | ) | ||||
Impairment losses | — | 59 | |||||
Changes in derivative instruments | (13 | ) | 175 | ||||
Changes in collateral deposits supporting energy risk management activities | 60 | (112 | ) | ||||
Proceeds from sale of emission allowances | — | 36 | |||||
Lower of cost or market inventory adjustments | 2 | — | |||||
Changes in other working capital | (100 | ) | 22 | ||||
Net Cash (Used)/Provided by Operating Activities | (53 | ) | 190 | ||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (69 | ) | (239 | ) | |||
Proceeds from sale of assets, net | — | 563 | |||||
Other | — | 2 | |||||
Net Cash (Used)/Provided by Investing Activities | (69 | ) | 326 | ||||
Cash Flows from Financing Activities | |||||||
Payment for credit support | (130 | ) | — | ||||
Payments for financing costs | (94 | ) | — | ||||
Proceeds from draw on intercompany secured revolving credit facility | 125 | — | |||||
Payments for current and long-term debt | (2 | ) | (4 | ) | |||
Net Cash Used by Financing Activities | (101 | ) | (4 | ) | |||
Net (Decrease)/Increase in Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties | (223 | ) | 512 | ||||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at Beginning of Period | 1,034 | 716 | |||||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at End of Period | $ | 811 | $ | 1,228 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | |||||||||||||||
Operating revenues | $ | 402 | $ | 494 | $ | 1,003 | $ | 1,362 | |||||||
Operating revenues — affiliate | 27 | 56 | 77 | 16 | |||||||||||
Total operating revenues | 429 | 550 | 1,080 | 1,378 | |||||||||||
Operating Costs and Expenses | |||||||||||||||
Cost of operations | 126 | 160 | 349 | 496 | |||||||||||
Cost of operations — affiliate | 238 | 276 | 588 | 647 | |||||||||||
Depreciation and amortization | 18 | 21 | 54 | 59 | |||||||||||
General and administrative | 6 | — | 6 | — | |||||||||||
General and administrative — affiliate | 9 | 21 | 53 | 62 | |||||||||||
Total operating costs and expenses | 397 | 478 | 1,050 | 1,264 | |||||||||||
Gain on sale of assets | — | 74 | — | 77 | |||||||||||
Operating Income | 32 | 146 | 30 | 191 | |||||||||||
Other Income/(Expense) | |||||||||||||||
Other income, net | 1 | 1 | 2 | 2 | |||||||||||
Interest expense | (1 | ) | (14 | ) | (24 | ) | (39 | ) | |||||||
Interest expense — affiliate | — | (1 | ) | (2 | ) | (5 | ) | ||||||||
Total other expense | — | (14 | ) | (24 | ) | (42 | ) | ||||||||
Income Before Reorganization Items and Income Taxes | 32 | 132 | 6 | 149 | |||||||||||
Reorganization items, net | — | — | 42 | — | |||||||||||
Income Before Income Taxes | 32 | 132 | 48 | 149 | |||||||||||
Income tax | — | — | — | — | |||||||||||
Net Income | $ | 32 | $ | 132 | $ | 48 | $ | 149 |
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 174 | $ | 471 | |||
Accounts receivable | 111 | 85 | |||||
Note receivable — affiliate | 318 | 315 | |||||
Inventory | 236 | 245 | |||||
Derivative instruments | 29 | 54 | |||||
Derivative instruments — affiliate | 40 | 126 | |||||
Cash collateral posted in support of energy risk management activities | 45 | 51 | |||||
Cash collateral posted in support of energy risk management activities — affiliates | 25 | 79 | |||||
Prepaid rent and other current assets | 95 | 77 | |||||
Total current assets | 1,073 | 1,503 | |||||
Property, plant and equipment, net | 1,058 | 1,088 | |||||
Other Assets | |||||||
Intangible assets, net | 26 | 62 | |||||
Derivative instruments | 16 | 16 | |||||
Derivative instruments — affiliate | 9 | 18 | |||||
Long-term deposits | 130 | — | |||||
Prepaid rent — non-current | 278 | 204 | |||||
Other non-current assets | 28 | 11 | |||||
Total other assets | 487 | 311 | |||||
Total Assets | $ | 2,618 | $ | 2,902 | |||
LIABILITIES AND MEMBER'S EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 39 | $ | 61 | |||
Accounts payable — affiliate | 20 | 116 | |||||
Derivative instruments | 26 | 46 | |||||
Derivative instruments — affiliate | 45 | 139 | |||||
Accrued expenses and other current liabilities | 54 | 94 | |||||
Total current liabilities | 184 | 456 | |||||
Liabilities Subject to Compromise | 721 | — | |||||
Other Liabilities | |||||||
Long-term debt | — | 745 | |||||
Derivative instruments | 2 | 10 | |||||
Derivative instruments — affiliate | 21 | 22 | |||||
Out-of-market contracts | 471 | 492 | |||||
Other non-current liabilities | 118 | 124 | |||||
Total non-current liabilities | 612 | 1,393 | |||||
Total Liabilities | 1,517 | 1,849 | |||||
Commitments and Contingencies | |||||||
Member’s Equity | |||||||
Member’s interest | 1,101 | 1,053 | |||||
Total Member’s Equity | 1,101 | 1,053 | |||||
Total Liabilities and Member’s Equity | $ | 2,618 | $ | 2,902 |
Nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(In millions) | |||||||
Cash Flows from Operating Activities | |||||||
Net Income | $ | 48 | $ | 149 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 54 | 59 | |||||
Amortization of debt premiums | (3 | ) | (5 | ) | |||
Non-cash adjustment to write-off unamortized debt premiums | (47 | ) | — | ||||
Amortization of out-of-market contracts and emission allowances | (21 | ) | (20 | ) | |||
Gain on sale of assets | — | (77 | ) | ||||
Changes in derivative instruments | (3 | ) | 182 | ||||
Changes in collateral deposits supporting energy risk management activities | 60 | (119 | ) | ||||
Lower of cost or market inventory adjustments | 2 | — | |||||
Changes in other working capital | (80 | ) | (16 | ) | |||
Net Cash Provided by Operating Activities | 10 | 153 | |||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (33 | ) | (44 | ) | |||
Increase in notes receivable — affiliate | (3 | ) | — | ||||
Proceeds from sale of assets | — | 76 | |||||
Net Cash (Used)/Provided by Investing Activities | (36 | ) | 32 | ||||
Cash Flows from Financing Activities | |||||||
Payment for amounts due to GenOn Energy, Inc. | (125 | ) | — | ||||
Payment for credit support | (130 | ) | — | ||||
Payments for financing costs | (16 | ) | — | ||||
Net Cash Used by Financing Activities | (271 | ) | — | ||||
Net (Decrease)/Increase in Cash, Cash Equivalents and Funds Deposited by Counterparties | (297 | ) | 185 | ||||
Cash, Cash Equivalents and Funds Deposited by Counterparties at Beginning of Period | 471 | 297 | |||||
Cash, Cash Equivalents and Funds Deposited by Counterparties at End of Period | $ | 174 | $ | 482 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Operating Revenues | |||||||||||||||
Operating revenues | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||
Operating revenues — affiliate | 129 | 229 | 365 | 584 | |||||||||||
Total operating revenues | 130 | 230 | 366 | 585 | |||||||||||
Operating Costs and Expenses | |||||||||||||||
Cost of operations | 104 | 157 | 273 | 414 | |||||||||||
Cost of operations — affiliate | 6 | (10 | ) | 30 | 21 | ||||||||||
Depreciation and amortization | 16 | 16 | 47 | 45 | |||||||||||
General and administrative | 6 | — | 6 | — | |||||||||||
General and administrative — affiliate | 4 | 15 | 42 | 45 | |||||||||||
Total operating costs and expenses | 136 | 178 | 398 | 525 | |||||||||||
Operating (Loss)/Income | (6 | ) | 52 | (32 | ) | 60 | |||||||||
Other Expense | |||||||||||||||
Other income, net | 1 | 1 | 1 | 1 | |||||||||||
Interest expense | (1 | ) | (1 | ) | (1 | ) | (1 | ) | |||||||
Interest expense — affiliate | — | (1 | ) | (1 | ) | (3 | ) | ||||||||
Total other expense | — | (1 | ) | (1 | ) | (3 | ) | ||||||||
(Loss)/Income Before Income Taxes | (6 | ) | 51 | (33 | ) | 57 | |||||||||
Income tax | — | — | — | — | |||||||||||
Net (Loss)/Income | $ | (6 | ) | $ | 51 | $ | (33 | ) | $ | 57 |
September 30, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
(In millions) | |||||||
ASSETS | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 175 | $ | 471 | |||
Accounts receivable | 1 | 8 | |||||
Accounts receivable — affiliate | 6 | — | |||||
Inventory | 127 | 135 | |||||
Derivative instruments — affiliate | 10 | 44 | |||||
Prepaid rent and other current assets | 83 | 73 | |||||
Total current assets | 402 | 731 | |||||
Property, plant and equipment, net | 902 | 926 | |||||
Other Assets | |||||||
Intangible assets, net | 10 | 10 | |||||
Derivative instruments — affiliate | 2 | 4 | |||||
Long-term deposits | 130 | — | |||||
Prepaid rent — non-current | 280 | 204 | |||||
Total other assets | 422 | 218 | |||||
Total Assets | $ | 1,726 | $ | 1,875 | |||
LIABILITIES AND MEMBER'S EQUITY | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 19 | $ | 30 | |||
Accounts payable — affiliate | — | 29 | |||||
Derivative instruments — affiliate | 14 | 44 | |||||
Accrued expenses and other current liabilities | 42 | 69 | |||||
Total current liabilities | 75 | 172 | |||||
Other Liabilities | |||||||
Derivative instruments — affiliate | — | 2 | |||||
Out-of-market contracts | 471 | 492 | |||||
Other non-current liabilities | 63 | 59 | |||||
Total non-current liabilities | 534 | 553 | |||||
Total Liabilities | 609 | 725 | |||||
Commitments and Contingencies | |||||||
Member’s Equity | |||||||
Member’s interest | 1,117 | 1,150 | |||||
Total Member’s Equity | 1,117 | 1,150 | |||||
Total Liabilities and Member’s Equity | $ | 1,726 | $ | 1,875 |
Nine months ended September 30, | |||||||
2017 | 2016 | ||||||
(In millions) | |||||||
Cash Flows from Operating Activities | |||||||
Net (Loss)/Income | $ | (33 | ) | $ | 57 | ||
Adjustments to reconcile net (loss)/income to net cash (used)/provided by operating activities: | |||||||
Depreciation and amortization | 47 | 45 | |||||
Amortization of out-of-market contracts and emission allowances | (21 | ) | (21 | ) | |||
Changes in derivative instruments | 4 | 160 | |||||
Lower of cost or market inventory adjustment | 2 | — | |||||
Changes in other working capital | (9 | ) | (17 | ) | |||
Net Cash (Used)/Provided by Operating Activities | (10 | ) | 224 | ||||
Cash Flows from Investing Activities | |||||||
Capital expenditures | (30 | ) | (40 | ) | |||
Net Cash Used by Investing Activities | (30 | ) | (40 | ) | |||
Cash Flows from Financing Activities | |||||||
Payment for amounts due to GenOn Energy, Inc. | (125 | ) | — | ||||
Payment for credit support | (130 | ) | — | ||||
Payments for deferred financing costs | (1 | ) | — | ||||
Net Cash Used by Financing Activities | (256 | ) | — | ||||
Net (Decrease)/Increase in Cash and Cash Equivalents | (296 | ) | 184 | ||||
Cash and Cash Equivalents at Beginning of Period | 471 | 299 | |||||
Cash and Cash Equivalents at End of Period | $ | 175 | $ | 483 |
Property, plant and equipment Accumulated depreciation | Intangible assets Accumulated amortization | ||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
GenOn | $ | 730 | $ | 604 | $ | 66 | $ | 87 | |||||||
GenOn Americas Generation | 329 | 275 | 66 | 87 | |||||||||||
GenOn Mid-Atlantic | 284 | 237 | 33 | 29 |
1) | Full releases from GenOn and GenOn Americas Generation in favor of NRG, including either a full release or indemnification in favor of NRG for any claims relating to GenOn Mid-Atlantic or REMA and the dismissal of all litigation against NRG. |
2) | GenOn will receive cash consideration from NRG of $261.3 million pursuant to a settlement executed in connection with the Plan, which will be received in cash less any amounts owed to NRG under the intercompany secured revolving credit facility, or the Intercompany Revolver. As of September 30, 2017, GenOn owed NRG approximately $125 million under the Intercompany Revolver. See Note 10, Related Party Transactions, for further discussion of the Intercompany Revolver. |
3) | NRG will consent to the cancellation of its interests in the equity of GenOn. The equity interests in the reorganized GenOn will be issued to the holders of the GenOn Senior Notes along with a cash payment from NRG equal to approximately $75 million, which is included in the $261.3 million mentioned above, and, subject to certain eligibility restrictions, rights to participate pro rata in a new secured notes offering, as further described below. |
4) | NRG will retain the pension liability, including payment of approximately $13 million of 2017 pension contributions, for GenOn employees for service provided prior to the completion of the reorganization, which was paid in September 2017 and was reflected as a capital contribution to GenOn. GenOn’s pension liability as of September 30, 2017 was approximately $106 million. |
5) | The shared services agreement between GenOn and NRG will be amended such that (i) GenOn will receive shared services from NRG at an annualized rate of $84 million during the pendency of the Chapter 11 Cases, (ii) if the settlement is approved by the bankruptcy court, GenOn will receive shared services from NRG at no charge for two months, and (iii) NRG will then provide an option for up to two, one-month extensions for shared services at an annualized rate of $84 million. See Note 10, Related Party Transactions, for further discussion of the shared services agreement. |
6) | GenOn will receive a credit of approximately $28 million from NRG to apply against amounts owed under the shared services agreement upon emergence from bankruptcy. Any unused amount can be paid in cash at GenOn's request. The credit is specifically equal to the amount of the 4% aggregate principal amount of the new senior secured first lien notes due 2022, or the 2022 Notes, plus accrued interest from the date of entry into the escrow agreement entered into in connection with the 2022 Notes and is intended to reimburse GenOn for its payment of such amount, as described below. |
7) | NRG agreed to provide GenOn with a letter of credit facility during the pendency of the Chapter 11 Cases, which could be utilized for required letters of credit in lieu of the Intercompany Revolver. GenOn can no longer utilize the Intercompany Revolver and, on July 27, 2017, the letter of credit facility was terminated, as GenOn had obtained a separate letter of credit facility with a third party financial institution. See Note 10, Related Party Transactions, for further discussion of the Intercompany Revolver and the letter of credit facility and Note 8, Debt and Capital Leases, for the letter of credit facility obtained in July 2017. |
8) | Certain holders of the Senior Notes, known as the Backstop Parties, have executed a letter of commitment, or the Backstop Commitment Letter, pursuant to which the Backstop Parties committed to backstop the exit financing obtained by GenOn to facilitate the payment of the obligations under the Plan and other working capital needs of the GenOn Entities upon their emergence from Chapter 11. |
9) | GenOn and NRG have agreed to cooperate in good faith to maximize the value of certain development projects. |
1) | The Intercompany Revolver with NRG; |
2) | The indenture governing the GenOn 7.875% Senior Notes due 2017 (as amended or supplemented from time to time); |
3) | The indenture governing the GenOn 9.500% Notes due 2018 (as amended or supplemented from time to time); |
4) | The indenture governing the GenOn 9.875% Notes due 2020 (as amended or supplemented from time to time); |
5) | The indenture governing the GenOn Americas Generation 8.50% Senior Notes due 2021 (as amended or supplemented from time to time); and |
6) | The indenture governing the GenOn Americas Generation 9.125% Senior Notes due 2031 (as amended or supplemented from time to time). |
As of September 30, 2017 | |||||||
GenOn | GenOn Americas Generation | ||||||
(In millions) | |||||||
Accounts payable and accrued expenses | $ | 46 | $ | 9 | |||
Long-term debt, including current portion | 2,616 | 695 | |||||
Accrued interest | 56 | 10 | |||||
Pension and post-retirement liabilities | 131 | — | |||||
Other | 13 | 7 | |||||
$ | 2,862 | $ | 721 |
Three months ended September 30, 2017 | Nine months ended September 30, 2017 | ||||||||||||||
GenOn | GenOn Americas Generation | GenOn | GenOn Americas Generation | ||||||||||||
(In millions) | (In millions) | ||||||||||||||
Legal and other professional advisory fees | $ | (29 | ) | $ | — | $ | (55 | ) | $ | (1 | ) | ||||
Write-off of debt premiums and credit reserves | — | — | 103 | 43 | |||||||||||
$ | (29 | ) | $ | — | $ | 48 | $ | 42 |
As of September 30, 2017 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 56 | $ | — | $ | 56 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 36 | $ | 5 | $ | 41 | |||||||
Other assets (b) | $ | 8 | $ | — | $ | — | $ | 8 |
As of December 31, 2016 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 122 | $ | 2 | $ | 124 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 119 | $ | 3 | $ | 122 | |||||||
Other assets (b) | $ | 10 | $ | — | $ | — | $ | 10 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Derivatives (a) | Derivatives (a) | ||||||||||||||
(In millions) | |||||||||||||||
Beginning balance | $ | (2 | ) | $ | (11 | ) | $ | (1 | ) | $ | (12 | ) | |||
Total (losses)/gains included in earnings — realized/unrealized | (1 | ) | 7 | (2 | ) | 6 | |||||||||
Purchases | (2 | ) | (1 | ) | (2 | ) | 1 | ||||||||
Transfers out of Level 3 (b) | — | 1 | — | 1 | |||||||||||
Ending balance | $ | (5 | ) | $ | (4 | ) | $ | (5 | ) | $ | (4 | ) | |||
(Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | $ | (1 | ) | $ | 5 | $ | (3 | ) | $ | (3 | ) |
As of September 30, 2017 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 89 | $ | 5 | $ | 94 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 88 | $ | 6 | $ | 94 |
As of December 31, 2016 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 209 | $ | 5 | $ | 214 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 212 | $ | 5 | $ | 217 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Derivatives (a) | Derivatives (a) | ||||||||||||||
(In millions) | |||||||||||||||
Beginning balance | $ | — | $ | 1 | $ | — | $ | 1 | |||||||
Total losses included in earnings — realized/unrealized | (1 | ) | — | (1 | ) | (1 | ) | ||||||||
Purchases | — | (1 | ) | — | — | ||||||||||
Transfers out of Level 3 (b) | — | 1 | — | 1 | |||||||||||
Ending balance | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | |||||
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — |
As of September 30, 2017 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 12 | $ | — | $ | 12 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 13 | $ | 1 | $ | 14 |
As of December 31, 2016 | |||||||||||||||
Fair Value | |||||||||||||||
Level 1 (a) | Level 2 (a) | Level 3 | Total | ||||||||||||
(In millions) | |||||||||||||||
Derivative assets: | |||||||||||||||
Commodity contracts | $ | — | $ | 47 | $ | 1 | $ | 48 | |||||||
Derivative liabilities: | |||||||||||||||
Commodity contracts | $ | — | $ | 45 | $ | 1 | $ | 46 |
Fair Value Measurement Using Significant Unobservable Inputs (Level 3) | |||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
Derivatives (a) | Derivatives (a) | ||||||||||||||
(In millions) | |||||||||||||||
Beginning balance | $ | — | $ | 1 | $ | — | $ | 2 | |||||||
Total losses included in earnings — realized/unrealized | (1 | ) | — | (1 | ) | (1 | ) | ||||||||
Ending balance | $ | (1 | ) | $ | 1 | $ | (1 | ) | $ | 1 | |||||
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | $ | (1 | ) | $ | — | $ | (1 | ) | $ | — |
Significant Unobservable Inputs | |||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
FTRs | $ | — | $ | 5 | Discounted Cash Flow | Auction Prices (per MWh) | $ | (3 | ) | $ | 1 | $ | — | ||||||||||
$ | — | $ | 5 |
Significant Unobservable Inputs | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 1 | $ | — | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 29 | $ | 59 | $ | 43 | |||||||||||
Coal Contracts | — | 1 | Discounted Cash Flow | Forward Market Price (per ton) | 42 | 51 | 45 | ||||||||||||||||
FTRs | 1 | 2 | Discounted Cash Flow | Auction Prices (per MWh) | (2 | ) | 3 | — | |||||||||||||||
$ | 2 | $ | 3 |
Significant Unobservable Inputs | |||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
FTRs | $ | 5 | $ | 6 | Discounted Cash Flow | Auction Prices (per MWh) | $ | (3 | ) | $ | 1 | $ | — | ||||||||||
$ | 5 | $ | 6 |
Significant Unobservable Inputs | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 1 | $ | — | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 29 | $ | 59 | $ | 43 | |||||||||||
Coal Contracts | 1 | 1 | Discounted Cash Flow | Forward Market Price (per ton) | 42 | 51 | 45 | ||||||||||||||||
FTRs | 3 | 4 | Discounted Cash Flow | Auction Prices (per MWh) | (2 | ) | 3 | — | |||||||||||||||
$ | 5 | $ | 5 |
Significant Unobservable Inputs | |||||||||||||||||||||||
September 30, 2017 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
FTRs | $ | — | $ | 1 | Discounted Cash Flow | Auction Prices (per MWh) | $ | — | $ | 1 | $ | — | |||||||||||
$ | — | $ | 1 |
Significant Unobservable Inputs | |||||||||||||||||||||||
December 31, 2016 | |||||||||||||||||||||||
Fair Value | Input/Range | ||||||||||||||||||||||
Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average | |||||||||||||||||
(In millions) | |||||||||||||||||||||||
Power Contracts | $ | 1 | $ | — | Discounted Cash Flow | Forward Market Price (per MWh) | $ | 29 | $ | 59 | $ | 43 | |||||||||||
FTRs | — | 1 | Discounted Cash Flow | Auction Prices (per MWh) | — | 1 | — | ||||||||||||||||
$ | 1 | $ | 1 |
Significant Unobservable Input | Position | Change In Input | Impact on Fair Value Measurement | |||
Forward Market Price Power/Coal | Buy | Increase/(Decrease) | Higher/(Lower) | |||
Forward Market Price Power/Coal | Sell | Increase/(Decrease) | Lower/(Higher) | |||
FTR Prices | Buy | Increase/(Decrease) | Higher/(Lower) | |||
FTR Prices | Sell | Increase/(Decrease) | Lower/(Higher) |
As of September 30, 2017 | As of December 31, 2016 | ||||||
(In millions) | |||||||
GenOn | $ | — | $ | 1 | |||
GenOn Americas Generation | — | 1 |
Net Exposure (a) (b) (% of Total) | ||||||||
Category by Industry Sector | GenOn | GenOn Americas Generation | GenOn Mid-Atlantic | |||||
Utilities, energy merchants, marketers and other | 100 | % | 100 | % | — | % | ||
Total as of September 30, 2017 | 100 | % | 100 | % | — | % |
Net Exposure (a) (b) (% of Total) | ||||||||
Category by Counterparty Credit Quality | GenOn | GenOn Americas Generation | GenOn Mid-Atlantic | |||||
Investment grade | 96 | % | 96 | % | — | % | ||
Non-Investment grade/Non-rated | 4 | 4 | — | |||||
Total as of September 30, 2017 | 100 | % | 100 | % | — | % |
(a) | Counterparty credit exposure excludes transportation contracts because of the unavailability of market prices. |
(b) | The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts. |
GenOn | GenOn Americas Generation | GenOn Mid-Atlantic | |||||||||||||
Total Volume | Total Volume | Total Volume | |||||||||||||
As of September 30, 2017 | As of December 31, 2016 | As of September 30, 2017 | As of December 31, 2016 | As of September 30, 2017 | As of December 31, 2016 | ||||||||||
Commodity | Units | (In millions) | |||||||||||||
Coal | Short Ton | 2 | 5 | 1 | 4 | 1 | 4 | ||||||||
Natural Gas | MMBtu | 72 | 138 | 13 | 30 | 13 | 23 | ||||||||
Power | MWh | (12 | ) | (35) | (3 | ) | (12) | (3 | ) | (11) |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives Not Designated as Cash Flow Hedges: | |||||||||||||||
Commodity contracts current | $ | 39 | $ | 108 | $ | 35 | $ | 105 | |||||||
Commodity contracts long-term | 17 | 16 | 6 | 17 | |||||||||||
Total Derivatives Not Designated as Cash Flow Hedges | $ | 56 | $ | 124 | $ | 41 | $ | 122 |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives Not Designated as Cash Flow Hedges: | |||||||||||||||
Commodity contracts current | $ | 69 | $ | 180 | $ | 71 | $ | 185 | |||||||
Commodity contracts long-term | 25 | 34 | 23 | 32 | |||||||||||
Total Derivatives Not Designated as Cash Flow Hedges | $ | 94 | $ | 214 | $ | 94 | $ | 217 |
Fair Value | |||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||
September 30, 2017 | December 31, 2016 | September 30, 2017 | December 31, 2016 | ||||||||||||
(In millions) | |||||||||||||||
Derivatives Not Designated as Cash Flow Hedges: | |||||||||||||||
Commodity contracts current | $ | 10 | $ | 44 | $ | 14 | $ | 44 | |||||||
Commodity contracts long-term | 2 | 4 | — | 2 | |||||||||||
Total Derivatives Not Designated as Cash Flow Hedges | $ | 12 | $ | 48 | $ | 14 | $ | 46 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
September 30, 2017 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 45 | $ | (15 | ) | $ | — | $ | 30 | |||||||
Derivative assets - affiliate | 11 | (11 | ) | — | — | |||||||||||
Derivative liabilities | (28 | ) | 15 | 2 | (11 | ) | ||||||||||
Derivative liabilities - affiliate | (13 | ) | 11 | 2 | — | |||||||||||
Total derivative instruments | $ | 15 | $ | — | $ | 4 | $ | 19 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
December 31, 2016 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 70 | $ | (39 | ) | $ | — | $ | 31 | |||||||
Derivative assets - affiliate | 54 | (54 | ) | — | — | |||||||||||
Derivative liabilities | (56 | ) | 39 | 1 | (16 | ) | ||||||||||
Derivative liabilities - affiliate | (66 | ) | 54 | 12 | — | |||||||||||
Total derivative instruments | $ | 2 | $ | — | $ | 13 | $ | 15 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
September 30, 2017 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 45 | $ | (15 | ) | $ | — | $ | 30 | |||||||
Derivative assets - affiliate | 49 | (49 | ) | — | — | |||||||||||
Derivative liabilities | (28 | ) | 15 | 2 | (11 | ) | ||||||||||
Derivative liabilities - affiliate | (66 | ) | 49 | 2 | (15 | ) | ||||||||||
Total derivative instruments | $ | — | $ | — | $ | 4 | $ | 4 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
December 31, 2016 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets | $ | 70 | $ | (39 | ) | $ | — | $ | 31 | |||||||
Derivative assets - affiliate | 144 | (144 | ) | — | — | |||||||||||
Derivative liabilities | (56 | ) | 39 | 1 | (16 | ) | ||||||||||
Derivative liabilities - affiliate | (161 | ) | 144 | 12 | (5 | ) | ||||||||||
Total derivative instruments | $ | (3 | ) | $ | — | $ | 13 | $ | 10 |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
September 30, 2017 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets - affiliate | $ | 12 | $ | (12 | ) | $ | — | $ | — | |||||||
Derivative liabilities - affiliate | (14 | ) | 12 | — | (2 | ) | ||||||||||
Total derivative instruments | $ | (2 | ) | $ | — | $ | — | $ | (2 | ) |
Gross Amounts Not Offset in the Statement of Financial Position | ||||||||||||||||
Description | Gross Amounts of Recognized Assets / Liabilities | Derivative Instruments | Cash Collateral (Held) / Posted | Net Amount | ||||||||||||
December 31, 2016 | (In millions) | |||||||||||||||
Commodity contracts: | ||||||||||||||||
Derivative assets - affiliate | $ | 48 | $ | (46 | ) | $ | — | $ | 2 | |||||||
Derivative liabilities - affiliate | (46 | ) | 46 | — | — | |||||||||||
Total derivative instruments | $ | 2 | $ | — | $ | — | $ | 2 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Unrealized mark-to-market results | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 9 | $ | (29 | ) | $ | 7 | $ | (145 | ) | |||||
Net unrealized (losses)/gains on open positions related to economic hedges | (28 | ) | (68 | ) | 9 | (43 | ) | ||||||||
Total unrealized (losses)/gains | $ | (19 | ) | $ | (97 | ) | $ | 16 | $ | (188 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue from operations — energy commodities | $ | (23 | ) | $ | (142 | ) | $ | 7 | $ | (233 | ) | ||||
Cost of operations | 4 | 45 | 9 | 45 | |||||||||||
Total impact to statements of operations | $ | (19 | ) | $ | (97 | ) | $ | 16 | $ | (188 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Unrealized mark-to-market results | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 11 | $ | (46 | ) | $ | 2 | $ | (165 | ) | |||||
Net unrealized (losses)/gains on open positions related to economic hedges | (13 | ) | 6 | 6 | (23 | ) | |||||||||
Total unrealized (losses)/gains | $ | (2 | ) | $ | (40 | ) | $ | 8 | $ | (188 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue from operations — energy commodities | $ | (6 | ) | $ | (75 | ) | $ | (1 | ) | $ | (228 | ) | |||
Cost of operations | 4 | 35 | 9 | 40 | |||||||||||
Total impact to statements of operations | $ | (2 | ) | $ | (40 | ) | $ | 8 | $ | (188 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Unrealized mark-to-market results | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 7 | $ | (47 | ) | $ | (3 | ) | $ | (146 | ) | ||||
Net unrealized (losses)/gains on open positions related to economic hedges | (12 | ) | 4 | 1 | (18 | ) | |||||||||
Total unrealized losses | $ | (5 | ) | $ | (43 | ) | $ | (2 | ) | $ | (164 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Revenue from operations — energy commodities | $ | (10 | ) | $ | (83 | ) | $ | (2 | ) | $ | (203 | ) | |||
Cost of operations | 5 | 40 | — | 39 | |||||||||||
Total impact to statements of operations | $ | (5 | ) | $ | (43 | ) | $ | (2 | ) | $ | (164 | ) |
(In millions, except rates) | September 30, 2017 | December 31, 2016 | September 30, 2017 interest rate % | ||||||
GenOn Americas Generation: | |||||||||
GenOn Americas Generation Senior Notes, due 2021 | $ | 366 | $ | 366 | 8.500 | ||||
GenOn Americas Generation Senior Notes, due 2031 | 329 | 329 | 9.125 | ||||||
Premiums (a) | — | 50 | |||||||
Less: Liabilities subject to compromise | (695 | ) | — | ||||||
Subtotal GenOn Americas Generation | — | 745 | |||||||
GenOn Energy: | |||||||||
GenOn Senior Notes, due 2017 | 691 | 691 | 7.875 | ||||||
GenOn Senior Notes, due 2018 | 649 | 649 | 9.500 | ||||||
GenOn Senior Notes, due 2020 | 490 | 490 | 9.875 | ||||||
Other liabilities (b) | 91 | 96 | |||||||
GenOn capital lease | 2 | 2 | |||||||
Premiums (a) | — | 81 | |||||||
Less: Liabilities subject to compromise | (1,921 | ) | — | ||||||
Subtotal GenOn Energy | 2 | 2,009 | |||||||
Subtotal | 2 | 2,754 | |||||||
Less: current maturities | 1 | 704 | |||||||
Total long-term debt and capital leases | $ | 1 | $ | 2,050 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Income before income taxes | $ | 72 | $ | 284 | $ | 49 | $ | 268 | |||||||
Income tax expense | — | 21 | 7 | 20 | |||||||||||
Effective tax rate | — | % | 7.4 | % | 14.3 | % | 7.5 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Allocated costs: | |||||||||||||||
Cost of operations — affiliate | $ | — | $ | — | $ | (1 | ) | $ | 2 | ||||||
General and administrative — affiliate | 9 | 21 | 53 | 62 | |||||||||||
Total | $ | 9 | $ | 21 | $ | 52 | $ | 64 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
2017 | 2016 | 2017 | 2016 | ||||||||||||
(In millions) | |||||||||||||||
Allocated costs: | |||||||||||||||
Cost of operations — affiliate | $ | 1 | $ | 1 | $ | 2 | $ | 2 | |||||||
General and administrative — affiliate | 4 | 15 | 42 | 45 | |||||||||||
Total | $ | 5 | $ | 16 | $ | 44 | $ | 47 |
GenOn Americas Generation, LLC1 | NRG Lovett LLC1 |
GenOn Americas Procurement, Inc. | NRG New York LLC1 |
GenOn Asset Management, LLC | NRG North America LLC1 |
GenOn Capital Inc. | NRG Northeast Generation, Inc. |
GenOn Energy Holdings, Inc. | NRG Northeast Holdings, Inc. |
GenOn Energy Management, LLC1 | NRG Potrero LLC1 |
GenOn Energy Services, LLC | NRG Power Generation Assets LLC |
GenOn Energy, Inc. | NRG Power Generation LLC |
GenOn Fund 2001 LLC | NRG Power Midwest GP LLC |
GenOn Mid-Atlantic Development, LLC | NRG Power Midwest LP |
GenOn Power Operating Services MidWest, Inc. | NRG Sabine (Delaware), Inc. |
GenOn Special Procurement, Inc.1 | NRG Sabine (Texas), Inc. |
Hudson Valley Gas Corporation1 | NRG San Gabriel Power Generation LLC |
Mirant Asia-Pacific Ventures, LLC | NRG Tank Farm LLC |
Mirant Intellectual Asset Management and Marketing, LLC | NRG Wholesale Generation GP LLC |
Mirant International Investments, Inc. | NRG Wholesale Generation LP |
Mirant New York Services, LLC | NRG Willow Pass LLC |
Mirant Power Purchase, LLC | Orion Power New York GP, Inc. |
Mirant Wrightsville Investments, Inc. | Orion Power New York LP, LLC |
Mirant Wrightsville Management, Inc. | Orion Power New York, L.P. |
MNA Finance Corp.1 | RRI Energy Broadband, Inc. |
NRG Americas, Inc. | RRI Energy Channelview (Delaware) LLC |
NRG Bowline LLC1 | RRI Energy Channelview (Texas) LLC |
NRG California North LLC1 | RRI Energy Channelview LP |
NRG California South GP LLC | RRI Energy Communications, Inc. |
NRG California South LP | RRI Energy Services Channelview LLC |
NRG Canal LLC1 | RRI Energy Services Desert Basin, LLC |
NRG Delta LLC1 | RRI Energy Services, LLC |
NRG Florida GP, LLC | RRI Energy Solutions East, LLC |
NRG Florida LP | RRI Energy Trading Exchange, Inc. |
NRG Lovett Development I LLC1 | RRI Energy Ventures, Inc. |
Supplemental Condensed Combined Statement of Operations | |||||||||||||||
(Unaudited) | |||||||||||||||
Three months ended September 30, 2017 | Period from June 14, 2017 through September 30, 2017 | ||||||||||||||
GenOn Energy, Inc. Debtors | GenOn Americas Generation Debtors | GenOn Energy, Inc. Debtors | GenOn Americas Generation Debtors | ||||||||||||
(In millions) | (In millions) | ||||||||||||||
Total operating revenues | $ | 500 | $ | 446 | $ | 594 | $ | 511 | |||||||
Total operating costs and expenses | 396 | 408 | 462 | 471 | |||||||||||
Operating Income | 104 | 38 | 132 | 40 | |||||||||||
Other Expense | |||||||||||||||
Total other expense | (3 | ) | (5 | ) | (4 | ) | (6 | ) | |||||||
Income Before Reorganization Items and Income Taxes | 101 | 33 | 128 | 34 | |||||||||||
Reorganization items, net | (29 | ) | — | 74 | 43 | ||||||||||
Income Before Income Taxes | 72 | 33 | 202 | 77 | |||||||||||
Income tax expense | — | — | — | — | |||||||||||
Net Income | $ | 72 | $ | 33 | $ | 202 | $ | 77 |
Supplemental Condensed Combined Balance Sheet | |||||||
As of September 30, 2017 | |||||||
(Unaudited) | |||||||
GenOn Energy, Inc. Debtors | GenOn Americas Generation Debtors | ||||||
(In millions) | |||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 568 | $ | — | |||
Restricted cash | 1 | — | |||||
Accounts receivable | 117 | 110 | |||||
Accounts receivable — affiliate | 658 | — | |||||
Notes receivable — affiliate | — | 318 | |||||
Prepaid rent and other current assets | 898 | 274 | |||||
Total current assets | 2,242 | 702 | |||||
Property, plant and equipment, net | 1,235 | 155 | |||||
Investment in subsidiaries | (269 | ) | 1,117 | ||||
Notes receivable — affiliate | 544 | — | |||||
Other non-current assets | 144 | 68 | |||||
Total Assets | $ | 3,896 | $ | 2,042 | |||
LIABILITIES AND STOCKHOLDER'S EQUITY | |||||||
Accounts payable | $ | 42 | $ | 20 | |||
Accounts payable — affiliate | — | 26 | |||||
Accrued expenses and other current liabilities | 134 | 93 | |||||
Total current liabilities | 176 | 139 | |||||
Liabilities subject to compromise | 2,862 | 721 | |||||
Long-term debt — affiliate | 125 | — | |||||
Other non-current liabilities | 338 | 81 | |||||
Total Liabilities | 3,501 | 941 | |||||
Stockholder's equity | 395 | 1,101 | |||||
Total Liabilities and Stockholder's Equity | $ | 3,896 | $ | 2,042 |
Supplemental Condensed Combined Statement of Cash Flows | |||||||
Period from June 14, 2017 through September 30, 2017 | |||||||
(Unaudited) | |||||||
GenOn Energy, Inc. Debtors | GenOn Americas Generation Debtors | ||||||
(In millions) | |||||||
Net cash provided by operating activities | $ | 97 | $ | 4 | |||
Net cash used by investing activities | (9 | ) | (4 | ) | |||
Net cash used by financing activities | (3 | ) | — | ||||
Net increase in cash, cash equivalents and restricted cash | 85 | — | |||||
Cash, cash equivalents and restricted cash at beginning of period | 484 | — | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 569 | $ | — |
(In MW)(a) | |||||||||
Generation Type | GenOn | GenOn Americas Generation | GenOn Mid-Atlantic | ||||||
Natural gas (b)(c) | 9,348 | 3,011 | 1,864 | ||||||
Coal | 4,200 | 2,433 | 2,433 | ||||||
Oil | 1,847 | 1,434 | 308 | ||||||
Total generation capacity | 15,395 | 6,878 | 4,605 |
(a) | MW figures provided represent nominal summer net MW capacity of power generated as adjusted for the Registrants' owned or leased interest excluding capacity from inactive/mothballed units. |
(b) | GenOn's natural gas generation portfolio excludes 1,029 MW related to Pittsburg Generating Station, a natural gas-fired facility located in California, which was deactivated by GenOn Americas Generation on January 1, 2017, as a result of notification received during 2016 that its bid for a resource adequacy contract for 2017 with Pacific Gas & Electric was not accepted. |
(c) | GenOn's natural gas generation portfolio includes 275 MW related to Choctaw Unit 1 which is in forced outage and is expected to return to service in December 2017. |
Capacity Performance Product | |||
Zone | Cleared Capacity (MW)(1) | Price ($/MW-day) | |
EMAAC | 496 | $187.87 | |
MAAC | 6,040 | $86.04 | |
RTO | 537 | $76.53 | |
Total | 7,073 |
Capacity Performance Product | |||
Zone | Cleared Capacity (MW) | Price ($/MW-day) | |
MAAC (1) | 3,824 | $86.04 | |
Total | 3,824 |
Average on Peak Power Price ($/MWh) (a) | ||||||||||
Three months ended September 30, | ||||||||||
2017 | 2016 | Change % | ||||||||
MISO - Louisiana Hub (b) | $ | 39.56 | $ | 39.92 | (1 | )% | ||||
NEPOOL | 31.94 | 42.40 | (25 | )% | ||||||
PEPCO (PJM) | 38.81 | 42.60 | (9 | )% | ||||||
PJM West Hub | 35.10 | 38.89 | (10 | )% | ||||||
CAISO - NP15 | 46.69 | 38.23 | 22 | % | ||||||
CAISO - SP15 | 46.54 | 40.43 | 15 | % |
Average on Peak Power Price ($/MWh) (a) | ||||||||||
Nine months ended September 30, | ||||||||||
2017 | 2016 | Change % | ||||||||
MISO - Louisiana Hub (b) | $ | 42.33 | $ | 33.50 | 26 | % | ||||
NEPOOL | 33.11 | 33.82 | (2 | )% | ||||||
PEPCO (PJM) | 35.65 | 38.16 | (7 | )% | ||||||
PJM West Hub | 33.30 | 33.97 | (2 | )% | ||||||
CAISO - NP15 | 33.82 | 29.42 | 15 | % | ||||||
CAISO - SP15 | 33.42 | 30.29 | 10 | % |
Average Realized Power Price ($/MWh) | ||||||||||
Three months ended September 30, | ||||||||||
Region | 2017 | 2016(b) | Change % | |||||||
GenOn | $ | 42.94 | $ | 42.58 | 1 | % | ||||
GenOn Americas Generation(a) | 48.68 | 54.34 | (10 | )% | ||||||
GenOn Mid-Atlantic | 52.63 | 55.86 | (6 | )% |
Average Realized Power Price ($/MWh) | ||||||||||
Nine months ended September 30, | ||||||||||
Region | 2017(b) | 2016(b) | Change % | |||||||
GenOn | $ | 44.75 | $ | 46.49 | (4 | )% | ||||
GenOn Americas Generation(a) | 67.36 | 72.42 | (7 | )% | ||||||
GenOn Mid-Atlantic | 72.93 | 74.33 | (2 | )% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Energy revenue (a) | $ | 306 | $ | 508 | $ | (202 | ) | $ | 739 | $ | 1,144 | $ | (405 | ) | |||||||||
Capacity revenue (a) | 192 | 157 | 35 | 458 | 533 | (75 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (23 | ) | (142 | ) | 119 | 7 | (233 | ) | 240 | ||||||||||||||
Other revenues | 9 | 9 | — | 27 | 65 | (38 | ) | ||||||||||||||||
Total operating revenues | 484 | 532 | (48 | ) | 1,231 | 1,509 | (278 | ) | |||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||
Generation cost of sales (a) | 211 | 265 | (54 | ) | 500 | 625 | (125 | ) | |||||||||||||||
Mark-to-market for economic hedging activities | (4 | ) | (45 | ) | 41 | (9 | ) | (45 | ) | 36 | |||||||||||||
Contract and emissions credit amortization | (9 | ) | (9 | ) | — | (28 | ) | (29 | ) | 1 | |||||||||||||
Operations and maintenance | 101 | 129 | (28 | ) | 358 | 447 | (89 | ) | |||||||||||||||
Other cost of operations | 15 | 13 | 2 | 55 | 46 | 9 | |||||||||||||||||
Total cost of operations | 314 | 353 | (39 | ) | 876 | 1,044 | (168 | ) | |||||||||||||||
Depreciation and amortization | 43 | 59 | (16 | ) | 128 | 153 | (25 | ) | |||||||||||||||
Impairment losses | — | — | — | — | 59 | (59 | ) | ||||||||||||||||
General and administrative | 11 | 10 | 1 | 26 | 14 | 12 | |||||||||||||||||
General and administrative - affiliate | 14 | 46 | (32 | ) | 100 | 139 | (39 | ) | |||||||||||||||
Total operating costs and expenses | 382 | 468 | (86 | ) | 1,130 | 1,409 | (279 | ) | |||||||||||||||
Gain on sale of assets | — | 262 | (262 | ) | — | 294 | (294 | ) | |||||||||||||||
Operating Income | 102 | 326 | (224 | ) | 101 | 394 | (293 | ) | |||||||||||||||
Other Income/(Expense) | |||||||||||||||||||||||
Other income, net | 3 | 2 | 1 | 9 | 6 | 3 | |||||||||||||||||
Interest expense | (4 | ) | (44 | ) | (40 | ) | (91 | ) | (132 | ) | (41 | ) | |||||||||||
Other expense | — | — | — | (18 | ) | — | 18 | ||||||||||||||||
Total other expense | (1 | ) | (42 | ) | (41 | ) | (100 | ) | (126 | ) | (26 | ) | |||||||||||
Income Before Reorganization Items and Income Taxes | 101 | 284 | (183 | ) | 1 | 268 | (267 | ) | |||||||||||||||
Reorganization items, net | (29 | ) | — | (29 | ) | 48 | — | 48 | |||||||||||||||
Income Before Income Taxes | 72 | 284 | (212 | ) | 49 | 268 | (219 | ) | |||||||||||||||
Income tax expense | — | 21 | (21 | ) | 7 | 20 | (13 | ) | |||||||||||||||
Net Income | $ | 72 | $ | 263 | $ | (191 | ) | $ | 42 | $ | 248 | $ | (206 | ) | |||||||||
Business Metrics | |||||||||||||||||||||||
Average natural gas price — Henry Hub ($/MMBtu) | $ | 3.00 | $ | 2.81 | 7 | % | $ | 3.17 | $ | 2.29 | 38 | % | |||||||||||
MWh sold (in thousands) (b) | 7,126 | 9,628 | (26 | )% | 16,395 | 21,683 | (24 | )% | |||||||||||||||
MWh generated (in thousands) | 7,339 | 9,531 | (23 | )% | 16,609 | 21,684 | (23 | )% |
(a) | Includes realized gains and losses from financially settled transactions. |
(b) | MWh sold excludes generation at facilities that generate revenue under tolling agreements. |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Energy revenue | $ | 306 | $ | 508 | $ | 739 | $ | 1,144 | |||||||
Capacity revenue | 192 | 157 | 458 | 533 | |||||||||||
Mark-to-market for economic hedging activities | (23 | ) | (142 | ) | 7 | (233 | ) | ||||||||
Other revenues | 9 | 9 | 27 | 65 | |||||||||||
Operating revenue | 484 | 532 | 1,231 | 1,509 | |||||||||||
Cost of fuel | (193 | ) | (244 | ) | (463 | ) | (549 | ) | |||||||
Other cost of sales | (18 | ) | (21 | ) | (37 | ) | (76 | ) | |||||||
Mark-to-market for economic hedging activities | 4 | 45 | 9 | 45 | |||||||||||
Contract and emission credit amortization | 9 | 9 | 28 | 29 | |||||||||||
Gross margin | $ | 286 | $ | 321 | $ | 768 | $ | 958 | |||||||
Less: Mark-to-market for economic hedging activities, net | (19 | ) | (97 | ) | 16 | (188 | ) | ||||||||
Less: Contract and emission credit amortization, net | 9 | 9 | 28 | 29 | |||||||||||
Economic gross margin | $ | 296 | $ | 409 | $ | 724 | $ | 1,117 |
(In millions) | |||
Lower gross margin due to the early closure and financial settlement of certain open positions with a counterparty in 2016 | $ | (98 | ) |
Lower gross margin due to a 23% decline in economic generation primarily at GenOn Mid-Atlantic as a result of milder weather conditions and unplanned outages | (29 | ) | |
Lower gross margin due to a 3% decrease in average realized energy prices as well as less favorable short-term natural gas contract terms | (18 | ) | |
Lower gross margin due to lower volume of contract capacity as a result of deactivation of the Pittsburg facility | (11 | ) | |
Higher gross margin due to a 15% increase in PJM cleared auction capacity prices as a result of higher prices in the 2017/2018 capacity performance auction year as well as a 12% increase in PJM cleared auction capacity volumes at Shawville, partially offset by higher purchased capacity to cover capacity supply obligations at Portland | 24 | ||
Higher gross margin due to higher capacity prices at Bowline and in Southern California due to short-term resource adequacy contracts, partially offset by lower capacity volumes at Bowline | 18 | ||
Other | 1 | ||
Decrease in economic gross margin | $ | (113 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 78 | ||
Decrease in gross margin | $ | (35 | ) |
(In millions) | |||
Lower gross margin due to the early closure and financial settlement of certain open positions with counterparties in 2016, partially offset by similar early financial settlements in 2017 | $ | (131 | ) |
Lower gross margin due to a 22% decline in economic generation primarily at GenOn Mid-Atlantic, Avon Lake, and Cheswick as a result of milder weather conditions | (86 | ) | |
Lower gross margin due to a 5% decrease in realized hedge prices as well as spark spread contraction due to an increase in natural gas prices and less favorable short-term natural gas contract terms | (82 | ) | |
Lower gross margin due to deactivation of the Pittsburg facility and sales of Seward, Shelby and Aurora facilities in 2016 | (56 | ) | |
Lower gross margin due to the sale of emission credits in the first quarter of the prior year | (36 | ) | |
Lower gross margin due to a 14% decrease in PJM cleared auction capacity prices resulting from changes in the mix of capacity prices in the relevant auction years, partially offset by lower purchased capacity to cover supply obligations and a 6% increase in PJM cleared auction capacity volumes due to prior year conversions | (13 | ) | |
Higher gross margin due to higher capacity prices at New York and New England due to short-term resource adequacy contracts, partially offset by lower capacity volumes | 12 | ||
Other | (1 | ) | |
Decrease in economic gross margin | $ | (393 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 204 | ||
Decrease in contract and emission credit amortization | (1 | ) | |
Decrease in gross margin | $ | (190 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Mark-to-market results in operating revenues | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 7 | $ | (45 | ) | $ | (4 | ) | $ | (212 | ) | ||||
Net unrealized (losses)/gains on open positions related to economic hedges | (30 | ) | (97 | ) | 11 | (21 | ) | ||||||||
Total mark-to-market (losses)/gains in operating revenues | $ | (23 | ) | $ | (142 | ) | $ | 7 | $ | (233 | ) | ||||
Mark-to-market results in operating costs and expenses | |||||||||||||||
Reversal of previously recognized unrealized losses on settled positions related to economic hedges | $ | 2 | $ | 16 | $ | 11 | $ | 67 | |||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 2 | 29 | (2 | ) | (22 | ) | |||||||||
Total mark-to-market gains in operating costs and expenses | $ | 4 | $ | 45 | $ | 9 | $ | 45 |
(In millions) | |||
Lower maintenance costs due to prior year environmental control work at Avon Lake and prior year gas additions at Shawville and New Castle | $ | (32 | ) |
Lower operating and maintenance costs due to lower planned and unplanned outages primarily at GenOn Mid-Atlantic and Southern California | (32 | ) | |
Lower environmental expense at GenOn Mid-Atlantic for Maryland Ash sites in 2017 | (15 | ) | |
Lower operating and maintenance costs due to the sales of Seward, Shelby and Aurora during the first and third quarters of 2016 | (10 | ) | |
Lower maintenance costs due to the deactivation of Pittsburg facility in the first quarter of 2017 | (9 | ) | |
Higher maintenance costs due to higher planned outages at Cheswick in 2017 | 10 | ||
Other | (1 | ) | |
$ | (89 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Energy revenue (a) | $ | 236 | $ | 459 | $ | (223 | ) | $ | 605 | $ | 1,041 | $ | (436 | ) | |||||||||
Capacity revenue (a) | 195 | 160 | 35 | 464 | 550 | (86 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (6 | ) | (75 | ) | 69 | (1 | ) | (228 | ) | 227 | |||||||||||||
Other revenues | 4 | 6 | (2 | ) | 12 | 15 | (3 | ) | |||||||||||||||
Total operating revenues | 429 | 550 | (121 | ) | 1,080 | 1,378 | (298 | ) | |||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||
Generation cost of sales (a) | 310 | 403 | (93 | ) | 733 | 937 | (204 | ) | |||||||||||||||
Mark-to-market for economic hedging activities | (4 | ) | (35 | ) | 31 | (9 | ) | (40 | ) | 31 | |||||||||||||
Contract and emissions credit amortization | — | 1 | (1 | ) | — | 1 | (1 | ) | |||||||||||||||
Operations and maintenance | 49 | 65 | (16 | ) | 180 | 227 | (47 | ) | |||||||||||||||
Other cost of operations | 9 | 2 | 7 | 33 | 18 | 15 | |||||||||||||||||
Total cost of operations | 364 | 436 | (72 | ) | 937 | 1,143 | (206 | ) | |||||||||||||||
Depreciation and amortization | 18 | 21 | (3 | ) | 54 | 59 | (5 | ) | |||||||||||||||
General and administrative | 6 | — | 6 | 6 | — | 6 | |||||||||||||||||
General and administrative - affiliate | 9 | 21 | (12 | ) | 53 | 62 | (9 | ) | |||||||||||||||
Total operating costs and expenses | 397 | 478 | (81 | ) | 1,050 | 1,264 | (214 | ) | |||||||||||||||
Gain on sale of assets | — | 74 | (74 | ) | — | 77 | (77 | ) | |||||||||||||||
Operating Income | 32 | 146 | (114 | ) | 30 | 191 | (161 | ) | |||||||||||||||
Other Income/(Expense) | |||||||||||||||||||||||
Other income, net | 1 | 1 | — | 2 | 2 | — | |||||||||||||||||
Interest expense | (1 | ) | (15 | ) | (14 | ) | (26 | ) | (44 | ) | (18 | ) | |||||||||||
Total other expense | — | (14 | ) | (14 | ) | (24 | ) | (42 | ) | (18 | ) | ||||||||||||
Income Before Reorganization Items and Income Taxes | 32 | 132 | (100 | ) | 6 | 149 | (143 | ) | |||||||||||||||
Reorganization items, net | — | — | — | 42 | — | 42 | |||||||||||||||||
Income Before Income Taxes | 32 | 132 | (100 | ) | 48 | 149 | (101 | ) | |||||||||||||||
Income tax | — | — | — | — | — | — | |||||||||||||||||
Net Income | $ | 32 | $ | 132 | $ | (100 | ) | $ | 48 | $ | 149 | $ | (101 | ) | |||||||||
Business Metrics | |||||||||||||||||||||||
Average natural gas price — Henry Hub ($/MMBtu) | $ | 3.00 | $ | 2.81 | 7 | % | $ | 3.17 | $ | 2.29 | 38 | % | |||||||||||
MWh sold (in thousands) | 2,013 | 4,251 | (53 | )% | 3,722 | 8,396 | (56 | )% | |||||||||||||||
MWh generated (in thousands) | 2,005 | 4,166 | (52 | )% | 3,709 | 8,368 | (56 | )% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Energy revenue | $ | 236 | $ | 459 | $ | 605 | $ | 1,041 | |||||||
Capacity revenue | 195 | 160 | 464 | 550 | |||||||||||
Mark-to-market for economic hedging activities | (6 | ) | (75 | ) | (1 | ) | (228 | ) | |||||||
Other revenues | 4 | 6 | 12 | 15 | |||||||||||
Operating revenue | 429 | 550 | 1,080 | 1,378 | |||||||||||
Cost of fuel | (79 | ) | (175 | ) | (208 | ) | (339 | ) | |||||||
Other cost of sales | (231 | ) | (228 | ) | (525 | ) | (598 | ) | |||||||
Mark-to-market for economic hedging activities | 4 | 35 | 9 | 40 | |||||||||||
Contract and emissions credit amortization | — | (1 | ) | — | (1 | ) | |||||||||
Gross margin | $ | 123 | $ | 181 | $ | 356 | $ | 480 | |||||||
Less: Mark-to-market for economic hedging activities, net | (2 | ) | (40 | ) | 8 | (188 | ) | ||||||||
Less: Contract and emission credit amortization, net | — | (1 | ) | — | (1 | ) | |||||||||
Economic gross margin | $ | 125 | $ | 222 | $ | 348 | $ | 669 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Energy revenue | $ | 138 | $ | 178 | $ | 349 | $ | 348 | |||||||
Capacity revenue | 93 | 72 | 209 | 257 | |||||||||||
Other revenues | 1 | 2 | 3 | 4 | |||||||||||
Operating revenue | 232 | 252 | 561 | 609 | |||||||||||
Cost of fuel | (10 | ) | (42 | ) | (55 | ) | (60 | ) | |||||||
Other cost of sales | (222 | ) | (210 | ) | (506 | ) | (549 | ) | |||||||
Gross margin and economic gross margin | $ | — | $ | — | $ | — | $ | — |
(In millions) | |||
Lower gross margin at GenOn Mid-Atlantic due to a 59% decrease in economic generation as a result of milder weather conditions as well as a 8% decrease in average realized hedge prices | $ | (58 | ) |
Lower gross margin at GenOn Mid-Atlantic due to the early closure and financial settlement of certain open positions with a counterparty in 2016 | (50 | ) | |
Lower gross margin due to lower volume of contract capacity as a result of deactivation of the Pittsburg facility | (11 | ) | |
Higher gross margin due to increased capacity prices in New England, partially offset by lower capacity volumes in New York | 15 | ||
Higher gross margin at GenOn Mid-Atlantic due to a 17% increase in PJM cleared auction capacity prices as a result of higher prices in the 2017/2018 capacity performance auction year | 9 | ||
Other | (2 | ) | |
Decrease in economic gross margin | $ | (97 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 38 | ||
Increase in contract and emission credit amortization | 1 | ||
Decrease in gross margin | $ | (58 | ) |
(In millions) | |||
Lower gross margin at GenOn Mid-Atlantic due to a 61% decrease in economic generation as a result of milder weather conditions as well as a decrease in average realized hedge prices | $ | (180 | ) |
Lower gross margin at GenOn Mid-Atlantic due to the early closure and financial settlement of certain open positions with counterparties in 2016, partially offset by similar early financial settlements in 2017 | (80 | ) | |
Lower gross margin due to lower volume of contract capacity as a result of deactivation of the Pittsburg facility | (34 | ) | |
Lower gross margin in New York and New England due to 7% lower realized prices as well as a 28% decrease in generation at Bowline and Canal due to planned outages | (27 | ) | |
Lower gross margin at GenOn Mid-Atlantic due to a 12% decrease in PJM cleared auction capacity prices resulting from changes in the mix of capacity prices in the relevant auction years, partially offset by a 3% increase in PJM cleared auction capacity volumes and lower purchased capacity | (14 | ) | |
Higher gross margin due to an increase in New York and New England capacity prices, partially offset by lower purchased capacity at Canal | 19 | ||
Other | (5 | ) | |
Decrease in economic gross margin | $ | (321 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 196 | ||
Increase in contract and emission credit amortization | 1 | ||
Decrease in gross margin | $ | (124 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Mark-to-market results in operating revenues | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 9 | $ | (61 | ) | $ | (9 | ) | $ | (225 | ) | ||||
Net unrealized (losses)/gains on open positions related to economic hedges | (15 | ) | (14 | ) | 8 | (3 | ) | ||||||||
Total mark-to-market losses in operating revenues | $ | (6 | ) | $ | (75 | ) | $ | (1 | ) | $ | (228 | ) | |||
Mark-to-market results in operating costs and expenses | |||||||||||||||
Reversal of previously recognized unrealized losses on settled positions related to economic hedges | $ | 2 | $ | 15 | $ | 11 | $ | 60 | |||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 2 | 20 | (2 | ) | (20 | ) | |||||||||
Total mark-to-market gains in operating costs and expenses | $ | 4 | $ | 35 | $ | 9 | $ | 40 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
(In millions except otherwise noted) | 2017 | 2016 | Change | 2017 | 2016 | Change | |||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Energy revenue (a) | $ | 80 | $ | 263 | $ | (183 | ) | $ | 209 | $ | 612 | $ | (403 | ) | |||||||||
Capacity revenue (a) | 58 | 48 | 10 | 154 | 171 | (17 | ) | ||||||||||||||||
Mark-to-market for economic hedging activities | (10 | ) | (83 | ) | 73 | (2 | ) | (203 | ) | 201 | |||||||||||||
Other revenues | 2 | 2 | — | 5 | 5 | — | |||||||||||||||||
Total operating revenues | 130 | 230 | (100 | ) | 366 | 585 | (219 | ) | |||||||||||||||
Operating Costs and Expenses | |||||||||||||||||||||||
Generation cost of sales (a) | 64 | 140 | (76 | ) | 137 | 284 | (147 | ) | |||||||||||||||
Mark-to-market for economic hedging activities | (5 | ) | (40 | ) | 35 | — | (39 | ) | 39 | ||||||||||||||
Operations and maintenance | 44 | 48 | (4 | ) | 143 | 181 | (38 | ) | |||||||||||||||
Other cost of operations | 7 | (1 | ) | 8 | 23 | 9 | 14 | ||||||||||||||||
Total cost of operations | 110 | 147 | (37 | ) | 303 | 435 | (132 | ) | |||||||||||||||
Depreciation and amortization | 16 | 16 | — | 47 | 45 | 2 | |||||||||||||||||
General and administrative | 6 | — | 6 | 6 | — | 6 | |||||||||||||||||
General and administrative — affiliate | 4 | 15 | (11 | ) | 42 | 45 | (3 | ) | |||||||||||||||
Total operating costs and expenses | 136 | 178 | (42 | ) | 398 | 525 | (127 | ) | |||||||||||||||
Operating (Loss)/Income | (6 | ) | 52 | (58 | ) | (32 | ) | 60 | (92 | ) | |||||||||||||
Other Income/(Expense) | |||||||||||||||||||||||
Other income | 1 | 1 | — | 1 | 1 | — | |||||||||||||||||
Interest expense | (1 | ) | (2 | ) | (1 | ) | (2 | ) | (4 | ) | (2 | ) | |||||||||||
Total other expense | — | (1 | ) | (1 | ) | (1 | ) | (3 | ) | (2 | ) | ||||||||||||
(Loss)/Income Before Income Taxes | (6 | ) | 51 | (57 | ) | (33 | ) | 57 | (90 | ) | |||||||||||||
Income tax | — | — | — | — | — | — | |||||||||||||||||
Net (Loss)/Income | $ | (6 | ) | $ | 51 | $ | (57 | ) | $ | (33 | ) | $ | 57 | $ | (90 | ) | |||||||
Business Metrics | |||||||||||||||||||||||
Average natural gas price — Henry Hub ($/MMBtu) | $ | 3.00 | $ | 2.81 | 7 | % | $ | 3.17 | $ | 2.29 | 38 | % | |||||||||||
MWh sold (in thousands) | 1,520 | 3,813 | (60 | )% | 2,793 | 7,090 | (61 | )% | |||||||||||||||
MWh generated (in thousands) | 1,519 | 3,734 | (59 | )% | 2,792 | 7,090 | (61 | )% |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Energy revenue | $ | 80 | $ | 263 | $ | 209 | $ | 612 | |||||||
Capacity revenue | 58 | 48 | 154 | 171 | |||||||||||
Mark-to-market for economic hedging activities | (10 | ) | (83 | ) | (2 | ) | (203 | ) | |||||||
Other revenues | 2 | 2 | 5 | 5 | |||||||||||
Operating revenue | 130 | 230 | 366 | 585 | |||||||||||
Cost of fuel | (57 | ) | (124 | ) | (122 | ) | (247 | ) | |||||||
Other cost of sales | (7 | ) | (16 | ) | (15 | ) | (37 | ) | |||||||
Mark-to-market for economic hedging activities | 5 | 40 | — | 39 | |||||||||||
Gross margin | $ | 71 | $ | 130 | $ | 229 | $ | 340 | |||||||
Less: Mark-to-market for economic hedging activities, net | (5 | ) | (43 | ) | (2 | ) | (164 | ) | |||||||
Economic gross margin | $ | 76 | $ | 173 | $ | 231 | $ | 504 |
(In millions) | |||
Lower gross margin due to a 59% decrease in economic generation as a result of milder weather conditions as well as an 8% decrease in average realized hedge prices | $ | (58 | ) |
Lower gross margin due to the early closure and financial settlement of certain open positions with a counterparty in 2016 | (50 | ) | |
Higher gross margin due to a 17% increase in PJM cleared auction capacity prices as a result of higher prices in the 2017/2018 capacity performance auction year | 9 | ||
Other | 2 | ||
Decrease in economic gross margin | $ | (97 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 38 | ||
Decrease in gross margin | $ | (59 | ) |
(In millions) | |||
Lower gross margin due to a 61% decrease in economic generation as a result of milder weather conditions as well as a decrease in average realized hedge prices | $ | (180 | ) |
Lower gross margin due to the early closure and financial settlement of certain open positions with counterparties in 2016, partially offset by similar early financial settlements in 2017 | (80 | ) | |
Lower gross margin due to a 12% decrease in PJM cleared auction capacity prices resulting from changes in the mix of capacity prices in the relevant auction years, partially offset by a 3% increase in PJM cleared auction capacity volumes and lower purchased capacity | (14 | ) | |
Other | 1 | ||
Decrease in economic gross margin | $ | (273 | ) |
Increase in mark-to-market for economic hedging primarily due to reversals of previously recognized unrealized gains/losses on settled positions and unrealized gains/losses on open positions related to economic hedges as further described below | 162 | ||
Decrease in gross margin | $ | (111 | ) |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
(In millions) | 2017 | 2016 | 2017 | 2016 | |||||||||||
Mark-to-market results in operating revenues | |||||||||||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ | 5 | $ | (62 | ) | $ | (8 | ) | $ | (201 | ) | ||||
Net unrealized (losses)/gains on open positions related to economic hedges | (15 | ) | (21 | ) | 6 | (2 | ) | ||||||||
Total mark-to-market losses in operating revenues | $ | (10 | ) | $ | (83 | ) | $ | (2 | ) | $ | (203 | ) | |||
Mark-to-market results in operating costs and expenses | |||||||||||||||
Reversal of previously recognized unrealized losses on settled positions related to economic hedges | $ | 2 | $ | 15 | $ | 5 | $ | 55 | |||||||
Net unrealized gains/(losses) on open positions related to economic hedges | 3 | 25 | (5 | ) | (16 | ) | |||||||||
Total mark-to-market gains in operating costs and expenses | $ | 5 | $ | 40 | $ | — | $ | 39 |
September 30, 2017 | December 31, 2016 | ||||||
(In millions) | |||||||
Cash and cash equivalents: | |||||||
GenOn excluding GenOn Mid-Atlantic and REMA | $ | 576 | $ | 463 | |||
GenOn Mid-Atlantic (a) | 175 | 471 | |||||
REMA (a) | 59 | 100 | |||||
Restricted cash | 1 | — | |||||
Total | 811 | 1,034 | |||||
Credit facility availability (b) | 294 | 228 | |||||
Total liquidity | $ | 1,105 | $ | 1,262 |
Maintenance | Environmental | Fuel conversions/additions | Total | ||||||||||||
(In millions) | |||||||||||||||
Total cash capital expenditures for the nine months ended September 30, 2017 | |||||||||||||||
GenOn | $ | 43 | $ | 15 | $ | 11 | $ | 69 | |||||||
GenOn Americas Generation | 24 | 9 | — | 33 | |||||||||||
GenOn Mid-Atlantic | 21 | 9 | — | 30 | |||||||||||
Estimated capital expenditures for the remainder of 2017 | |||||||||||||||
GenOn | 26 | 1 | — | 27 | |||||||||||
GenOn Americas Generation | 6 | 1 | — | 7 | |||||||||||
GenOn Mid-Atlantic | 7 | 1 | — | 8 |
Nine months ended September 30, 2017 | Remainder of 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | ||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||
REMA | $ | 63 | $ | — | $ | 55 | $ | 65 | $ | 56 | $ | 47 | $ | 231 | $ | 517 | |||||||||||||||
GenOn Mid-Atlantic | 128 | 16 | 105 | 139 | 105 | 42 | 400 | 935 | |||||||||||||||||||||||
Total Minimum Lease Payment | $ | 191 | $ | 16 | $ | 160 | $ | 204 | $ | 161 | $ | 89 | $ | 631 | $ | 1,452 |
Nine months ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
(In millions) | |||||||||||
Net cash (used)/provided by operating activities | $ | (53 | ) | $ | 190 | $ | (243 | ) | |||
Net cash (used)/provided by investing activities | (69 | ) | 326 | (395 | ) | ||||||
Net cash used by financing activities | (101 | ) | (4 | ) | (97 | ) |
(In millions) | |||
Decrease in operating income adjusted for non-cash items | $ | (257 | ) |
Change in cash collateral in support of risk management activities | 172 | ||
Proceeds from sale of emissions allowances in 2016 | (36 | ) | |
Changes in fuel inventory to meet commodity and transportation obligations | (80 | ) | |
Other changes in working capital primarily related to prepaid rent | (42 | ) | |
$ | (243 | ) |
(In millions) | |||
Decrease in capital expenditures primarily due to the completion of gas addition projects at Shawville and New Castle, as well as fewer planned outages across the fleet | $ | 170 | |
Proceeds from sale of assets in 2016 | (563 | ) | |
Other | (2 | ) | |
$ | (395 | ) |
(In millions) | |||
Payment for credit support | $ | (130 | ) |
Proceeds from draw on intercompany secured revolving credit facility | 125 | ||
Payments for financing costs primarily related to the 2022 Notes and the Backstop Fee | (94 | ) | |
Decrease in payments for current and long-term debt | 2 | ||
$ | (97 | ) |
Nine months ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
(In millions) | |||||||||||
Net cash provided by operating activities | $ | 10 | $ | 153 | $ | (143 | ) | ||||
Net cash (used)/provided by investing activities | (36 | ) | 32 | (68 | ) | ||||||
Net cash used by financing activities | (271 | ) | — | (271 | ) |
(In millions) | |||
Decrease in operating income adjusted for non-cash items | $ | (258 | ) |
Change in cash collateral in support of risk management activities | 179 | ||
Changes in fuel inventory to meet commodity and transportation obligations | (62 | ) | |
Other changes in working capital | (2 | ) | |
$ | (143 | ) |
(In millions) | |||
Decrease in capital expenditures for maintenance | $ | 11 | |
Proceeds from sale of assets in 2016 | (76 | ) | |
Increase in notes receivable - affiliate with GenOn Energy Holdings | (3 | ) | |
$ | (68 | ) |
(In millions) | |||
Payment for credit support | $ | (130 | ) |
Payment for amounts due to GenOn Energy, Inc. | (125 | ) | |
Payments for financing costs primarily related to the Backstop Fee | (16 | ) | |
$ | (271 | ) |
Nine months ended September 30, | |||||||||||
2017 | 2016 | Change | |||||||||
(In millions) | |||||||||||
Net cash (used)/provided by operating activities | $ | (10 | ) | $ | 224 | $ | (234 | ) | |||
Net cash used by investing activities | (30 | ) | (40 | ) | 10 | ||||||
Net cash used by financing activities | (256 | ) | — | (256 | ) |
(In millions) | |||
Decrease in operating income adjusted for non-cash items | $ | (242 | ) |
Changes in fuel inventory to meet commodity and transportation obligations | (63 | ) | |
Other changes in working capital primarily related to prepaid rent | 71 | ||
$ | (234 | ) |
By Remaining Maturity at September 30, | |||||||||||||||||||
2017 | |||||||||||||||||||
Guarantees | Under 1 Year | 1-3 Years | 3-5 Years | Over 5 Years | Total | ||||||||||||||
(In millions) | |||||||||||||||||||
Letters of credit and surety bonds | $ | 154 | $ | 24 | $ | — | $ | — | $ | 178 | |||||||||
Other guarantees | — | 365 | — | 158 | 523 | ||||||||||||||
Total guarantees | $ | 154 | $ | 389 | $ | — | $ | 158 | $ | 701 |
By Remaining Maturity at September 30, | |||||||||||||||||||
2017 | |||||||||||||||||||
Guarantees | Under 1 Year | 1-3 Years | 3-5 Years | Over 5 Years | Total | ||||||||||||||
(In millions) | |||||||||||||||||||
Letters of credit and surety bonds | $ | 17 | $ | 6 | $ | — | $ | — | $ | 23 | |||||||||
Total guarantees | $ | 17 | $ | 6 | $ | — | $ | — | $ | 23 |
Derivative Activity Gains | (In millions) | ||
Fair Value of Contracts as of December 31, 2016 | $ | 2 | |
Contracts realized or otherwise settled during the period | 7 | ||
Changes in fair value | 6 | ||
Fair Value of Contracts as of September 30, 2017 | $ | 15 |
Fair Value of Contracts as of September 30, 2017 | |||||||||||||||||||
Maturity | |||||||||||||||||||
Fair value hierarchy Gains/(Losses) | 1 Year or Less | Greater than 1 Year to 3 Years | Greater than 3 Years to 5 Years | Greater than 5 Years | Total Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||||
Level 2 | $ | 9 | $ | 11 | $ | — | $ | — | $ | 20 | |||||||||
Level 3 | (5 | ) | — | — | — | (5 | ) | ||||||||||||
Total | $ | 4 | $ | 11 | $ | — | $ | — | $ | 15 |
Derivative Activity (Losses)/Gains | (In millions) | ||
Fair Value of Contracts as of December 31, 2016 | $ | (3 | ) |
Contracts realized or otherwise settled during the period | 3 | ||
Fair Value of Contracts as of September 30, 2017 | $ | — |
Fair Value of Contracts as of September 30, 2017 | |||||||||||||||||||
Maturity | |||||||||||||||||||
Fair value hierarchy (Losses)/Gains | 1 Year or Less | Greater than 1 Year to 3 Years | Greater than 3 Years to 5 Years | Greater than 5 Years | Total Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||||
Level 2 | $ | (1 | ) | $ | 2 | $ | — | $ | — | $ | 1 | ||||||||
Level 3 | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Total | $ | (2 | ) | $ | 2 | $ | — | $ | — | $ | — |
Derivative Activity Gains/(Losses) | (In millions) | ||
Fair Value of Contracts as of December 31, 2016 | $ | 2 | |
Contracts realized or otherwise settled during the period | (3 | ) | |
Changes in fair value | (1 | ) | |
Fair Value of Contracts as of September 30, 2017 | $ | (2 | ) |
Fair Value of Contracts as of September 30, 2017 | |||||||||||||||||||
Maturity | |||||||||||||||||||
Fair value hierarchy (Losses)/Gains | 1 Year or Less | Greater than 1 Year to 3 Years | Greater than 3 Years to 5 Years | Greater than 5 Years | Total Fair Value | ||||||||||||||
(In millions) | |||||||||||||||||||
Level 2 | $ | (3 | ) | $ | 2 | $ | — | $ | — | $ | (1 | ) | |||||||
Level 3 | (1 | ) | — | — | — | (1 | ) | ||||||||||||
Total | $ | (4 | ) | $ | 2 | $ | — | $ | — | $ | (2 | ) |
Accounting Policy | Judgments/Uncertainties Affecting Application |
Derivative Instruments | Assumptions used in valuation techniques |
Assumptions used in forecasting generation | |
Market maturity and economic conditions | |
Contract interpretation | |
Market conditions in the energy industry, especially the effects of price volatility on contractual commitments | |
Impairment of Long-Lived Assets | Recoverability of investment through future operations |
Regulatory and political environments and requirements | |
Estimated useful lives of assets | |
Environmental obligations and operational limitations | |
Estimates of future cash flows | |
Estimates of fair value | |
Judgment about impairment triggering events | |
Income Taxes and Valuation Allowance for Deferred Tax Assets | Ability to be sustained upon audit examination of taxing authorities |
Interpret existing tax statute and regulations upon application to transactions | |
Ability to utilize tax benefits through carry backs to prior periods and carry forwards to future periods |
Number | Description | Method of Filing | ||
10.1 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on August 15, 2017. | |||
10.2 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 6, 2017. | |||
10.3 | Incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on October 6, 2017. | |||
10.4 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 31, 2017. | |||
31.1A1 | Filed herewith. | |||
31.2A1 | Filed herewith. | |||
31.3A1 | Filed herewith. | |||
32.A1 | Furnished herewith. | |||
101 INS | XBRL Instance Document. | Filed herewith. | ||
101 SCH | XBRL Taxonomy Extension Schema. | Filed herewith. | ||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||
101 DEF | XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||
101 LAB | XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. |
Number | Description | Method of Filing | ||
10.1 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on August 15, 2017. | |||
10.2 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 6, 2017. | |||
10.3 | Incorporated herein by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed on October 6, 2017. | |||
10.4 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 31, 2017. | |||
31.1A2 | Filed herewith. | |||
31.2A2 | Filed herewith. | |||
31.3A2 | Filed herewith. | |||
32.A2 | Furnished herewith. | |||
101 INS | XBRL Instance Document. | Filed herewith. | ||
101 SCH | XBRL Taxonomy Extension Schema. | Filed herewith. | ||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||
101 DEF | XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||
101 LAB | XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. |
Number | Description | Method of Filing | ||
10.1 | Incorporated herein by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed on October 31, 2017. | |||
31.1A3 | Filed herewith. | |||
31.2A3 | Filed herewith. | |||
31.3A3 | Filed herewith. | |||
32.A3 | Furnished herewith. | |||
101 INS | XBRL Instance Document. | Filed herewith. | ||
101 SCH | XBRL Taxonomy Extension Schema. | Filed herewith. | ||
101 CAL | XBRL Taxonomy Extension Calculation Linkbase. | Filed herewith. | ||
101 DEF | XBRL Taxonomy Extension Definition Linkbase. | Filed herewith. | ||
101 LAB | XBRL Taxonomy Extension Label Linkbase. | Filed herewith. | ||
101 PRE | XBRL Taxonomy Extension Presentation Linkbase. | Filed herewith. |
GENON ENERGY, INC. (Registrant) | |||
/s/ MARK ALLEN MCFARLAND | |||
Mark Allen McFarland Chief Executive Officer | |||
(Principal Executive Officer) | |||
/s/ KIRKLAND B. ANDREWS | |||
Kirkland B. Andrews Chief Financial Officer | |||
(Principal Financial Officer) | |||
/s/ DAVID CALLEN | |||
David Callen Chief Accounting Officer | |||
(Principal Accounting Officer) |
GENON AMERICAS GENERATION, LLC (Registrant) | |||
/s/ MARK ALLEN MCFARLAND | |||
Mark Allen McFarland Chief Executive Officer | |||
(Principal Executive Officer) | |||
/s/ KIRKLAND B. ANDREWS | |||
Kirkland B. Andrews Chief Financial Officer | |||
(Principal Financial Officer) | |||
/s/ DAVID CALLEN | |||
David Callen Chief Accounting Officer | |||
(Principal Accounting Officer) |
GENON MID-ATLANTIC, LLC (Registrant) | |||
/s/ MARK ALLEN MCFARLAND | |||
Mark Allen McFarland Chief Executive Officer | |||
(Principal Executive Officer) | |||
/s/ KIRKLAND B. ANDREWS | |||
Kirkland B. Andrews Chief Financial Officer | |||
(Principal Financial Officer) | |||
/s/ DAVID CALLEN | |||
David Callen Chief Accounting Officer | |||
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MARK ALLEN MCFARLAND | |
Mark Allen McFarland | |
Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Americas Generation, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MARK ALLEN MCFARLAND | |
Mark Allen McFarland | |
Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Mid-Atlantic, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ MARK ALLEN MCFARLAND | |
Mark Allen McFarland | |
Chief Executive Officer | |
(Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ KIRKLAND B. ANDREWS | |
Kirkland B. Andrews | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Americas Generation, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ KIRKLAND B. ANDREWS | |
Kirkland B. Andrews | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Mid-Atlantic, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ KIRKLAND B. ANDREWS | |
Kirkland B. Andrews | |
Chief Financial Officer | |
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Energy, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DAVID CALLEN | |
David Callen | |
Chief Accounting Officer | |
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Americas Generation, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DAVID CALLEN | |
David Callen | |
Chief Accounting Officer | |
(Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of GenOn Mid-Atlantic, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ DAVID CALLEN | |
David Callen | |
Chief Accounting Officer | |
(Principal Accounting Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
/s/ MARK ALLEN MCFARLAND | ||
Mark Allen McFarland | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ KIRKLAND B. ANDREWS | ||
Kirkland B. Andrews | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
/s/ DAVID CALLEN | ||
David Callen | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
/s/ MARK ALLEN MCFARLAND | ||
Mark Allen McFarland | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ KIRKLAND B. ANDREWS | ||
Kirkland B. Andrews | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
/s/ DAVID CALLEN | ||
David Callen | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
(1) | The Form 10-Q fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods expressed in the Form 10-Q. |
/s/ MARK ALLEN MCFARLAND | ||
Mark Allen McFarland | ||
Chief Executive Officer | ||
(Principal Executive Officer) | ||
/s/ KIRKLAND B. ANDREWS | ||
Kirkland B. Andrews | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
/s/ DAVID CALLEN | ||
David Callen | ||
Chief Accounting Officer | ||
(Principal Accounting Officer) |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Operating Revenues | ||||
Total operating revenues | $ 484,000,000 | $ 532,000,000 | $ 1,231,000,000 | $ 1,509,000,000 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 43,000,000 | 59,000,000 | 128,000,000 | 153,000,000 |
Impairment losses | 0 | 0 | 0 | 59,000,000 |
Total operating costs and expenses | 382,000,000 | 468,000,000 | 1,130,000,000 | 1,409,000,000 |
Gain on sale of assets | 0 | 262,000,000 | 0 | 294,000,000 |
Operating (Loss)/Income | 102,000,000 | 326,000,000 | 101,000,000 | 394,000,000 |
Other Income/(Expense) | ||||
Other income, net | 3,000,000 | 2,000,000 | 9,000,000 | 6,000,000 |
Other expense | 0 | 0 | (18,000,000) | 0 |
Total other expense | (1,000,000) | (42,000,000) | (100,000,000) | (126,000,000) |
Income Before Reorganization Items and Income Taxes | 101,000,000 | 284,000,000 | 1,000,000 | 268,000,000 |
Reorganization items, net | (29,000,000) | 0 | 48,000,000 | 0 |
(Loss)/Income Before Income Taxes | 72,000,000 | 284,000,000 | 49,000,000 | 268,000,000 |
Income tax expense | 0 | 21,000,000 | 7,000,000 | 20,000,000 |
Net (Loss)/Income | 72,000,000 | 263,000,000 | 42,000,000 | 248,000,000 |
GenOn Americas Generation, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 429,000,000 | 550,000,000 | 1,080,000,000 | 1,378,000,000 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 18,000,000 | 21,000,000 | 54,000,000 | 59,000,000 |
Total operating costs and expenses | 397,000,000 | 478,000,000 | 1,050,000,000 | 1,264,000,000 |
Gain on sale of assets | 0 | 74,000,000 | 0 | 77,000,000 |
Operating (Loss)/Income | 32,000,000 | 146,000,000 | 30,000,000 | 191,000,000 |
Other Income/(Expense) | ||||
Other income, net | 1,000,000 | 1,000,000 | 2,000,000 | 2,000,000 |
Total other expense | (14,000,000) | (24,000,000) | (42,000,000) | |
Income Before Reorganization Items and Income Taxes | 32,000,000 | 132,000,000 | 6,000,000 | 149,000,000 |
Reorganization items, net | 0 | 0 | 42,000,000 | 0 |
(Loss)/Income Before Income Taxes | 32,000,000 | 132,000,000 | 48,000,000 | 149,000,000 |
Income tax expense | 0 | 0 | 0 | 0 |
Net (Loss)/Income | 32,000,000 | 132,000,000 | 48,000,000 | 149,000,000 |
GenOn Mid-Atlantic, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 130,000,000 | 230,000,000 | 366,000,000 | 585,000,000 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 16,000,000 | 16,000,000 | 47,000,000 | 45,000,000 |
Total operating costs and expenses | 136,000,000 | 178,000,000 | 398,000,000 | 525,000,000 |
Operating (Loss)/Income | (6,000,000) | 52,000,000 | (32,000,000) | 60,000,000 |
Other Income/(Expense) | ||||
Other income, net | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
Total other expense | 0 | (1,000,000) | (1,000,000) | (3,000,000) |
(Loss)/Income Before Income Taxes | (6,000,000) | 51,000,000 | (33,000,000) | 57,000,000 |
Income tax expense | 0 | 0 | 0 | 0 |
Net (Loss)/Income | (6,000,000) | 51,000,000 | (33,000,000) | 57,000,000 |
Non-affiliated Entity | ||||
Operating Revenues | ||||
Total operating revenues | 483,000,000 | 544,000,000 | 1,161,000,000 | 1,515,000,000 |
Operating Costs and Expenses | ||||
Cost of operations | 224,000,000 | 279,000,000 | 650,000,000 | 864,000,000 |
General and administrative | 11,000,000 | 10,000,000 | 26,000,000 | 14,000,000 |
Other Income/(Expense) | ||||
Interest expense | (2,000,000) | (41,000,000) | (83,000,000) | (123,000,000) |
Non-affiliated Entity | GenOn Americas Generation, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 402,000,000 | 494,000,000 | 1,003,000,000 | 1,362,000,000 |
Operating Costs and Expenses | ||||
Cost of operations | 126,000,000 | 160,000,000 | 349,000,000 | 496,000,000 |
General and administrative | 6,000,000 | 0 | 6,000,000 | 0 |
Other Income/(Expense) | ||||
Interest expense | (1,000,000) | (14,000,000) | (24,000,000) | (39,000,000) |
Non-affiliated Entity | GenOn Mid-Atlantic, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 |
Operating Costs and Expenses | ||||
Cost of operations | 104,000,000 | 157,000,000 | 273,000,000 | 414,000,000 |
General and administrative | 6,000,000 | 0 | 6,000,000 | 0 |
Other Income/(Expense) | ||||
Interest expense | (1,000,000) | (1,000,000) | (1,000,000) | (1,000,000) |
Affiliated Entity | ||||
Operating Revenues | ||||
Total operating revenues | 1,000,000 | (12,000,000) | 70,000,000 | (6,000,000) |
Operating Costs and Expenses | ||||
Cost of operations | 90,000,000 | 74,000,000 | 226,000,000 | 180,000,000 |
General and administrative | 14,000,000 | 46,000,000 | 100,000,000 | 139,000,000 |
Other Income/(Expense) | ||||
Interest expense | (2,000,000) | (3,000,000) | (8,000,000) | (9,000,000) |
Affiliated Entity | GenOn Americas Generation, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 27,000,000 | 56,000,000 | 77,000,000 | 16,000,000 |
Operating Costs and Expenses | ||||
Cost of operations | 238,000,000 | 276,000,000 | 588,000,000 | 647,000,000 |
General and administrative | 9,000,000 | 21,000,000 | 53,000,000 | 62,000,000 |
Other Income/(Expense) | ||||
Interest expense | 0 | (1,000,000) | (2,000,000) | (5,000,000) |
Affiliated Entity | GenOn Mid-Atlantic, LLC | ||||
Operating Revenues | ||||
Total operating revenues | 129,000,000 | 229,000,000 | 365,000,000 | 584,000,000 |
Operating Costs and Expenses | ||||
Cost of operations | 6,000,000 | (10,000,000) | 30,000,000 | 21,000,000 |
General and administrative | 4,000,000 | 15,000,000 | 42,000,000 | 45,000,000 |
Other Income/(Expense) | ||||
Interest expense | $ 0 | $ (1,000,000) | $ (1,000,000) | $ (3,000,000) |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 72 | $ 263 | $ 42 | $ 248 |
Other Comprehensive Income, net of tax of $0: | ||||
Defined benefit plans | 0 | 0 | 0 | 0 |
Other comprehensive income | 0 | 0 | 0 | 0 |
Comprehensive Income | $ 72 | $ 263 | $ 42 | $ 248 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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Statement of Comprehensive Income [Abstract] | ||||
Other comprehensive income, tax | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1 | 1 |
Common stock, shares issued (in shares) | 1 | 1 |
Basis of Presentation (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
9 Months Ended |
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Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Basis of Presentation (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) GenOn Energy, Inc., a wholly owned subsidiary of NRG, is a wholesale power generator engaged in the ownership and operation of power generation facilities, with 15,395 MW of net electric generating capacity located in the U.S. On January 1, 2017, GenOn Americas Generation deactivated Pittsburg which resulted in the decrease in operating generation capacity of 1,029 MW from December 31, 2016. GenOn Americas Generation is a wholesale power generator with 6,878 MW of net electric generating capacity located, in many cases, near major metropolitan areas. GenOn Americas Generation's electric generating capacity is part of the 15,395 MW of net electric generating capacity of GenOn. GenOn Mid-Atlantic operates and owns or leases 4,605 MW of net electric generating capacity in Maryland near Washington, D.C. GenOn Mid-Atlantic’s electric generating capacity is part of the 6,878 MW of net electric generating capacity of GenOn Americas Generation. GenOn Mid-Atlantic’s generating stations serve the Eastern PJM markets. GenOn Americas Generation and GenOn Mid-Atlantic are Delaware limited liability companies and indirect wholly owned subsidiaries of GenOn. GenOn Mid-Atlantic is an indirect wholly owned subsidiary of GenOn Americas Generation. The Registrants sell power from their generation portfolio, offer capacity or similar products to retail electric providers and others, and provide ancillary services to support system reliability. Chapter 11 Cases As further described in Note 3, Chapter 11 Cases, on June 14, 2017, GenOn, along with GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries, or collectively the GenOn Entities, filed voluntary petitions for relief under Chapter 11, or the Chapter 11 Cases, of the United States Bankruptcy Code, or the Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, or the Bankruptcy Court. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA and certain other subsidiaries, did not file for relief under Chapter 11. The GenOn Entities remain in possession of their property and continue their business operations in the ordinary course uninterrupted as "debtors-in-possession" under jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The consolidated financial statements for GenOn and GenOn Americas Generation were prepared in accordance with Accounting Standards Codification (ASC) 852, Reorganizations, for debtors-in-possession. On June 29, 2017, the GenOn Entities filed a Joint Plan of Reorganization pursuant to Chapter 11 of the Bankruptcy Code (as may be amended, modified or supplemented from time to time), or the Plan, and a related Disclosure Statement, or the Disclosure Statement, with the Bankruptcy Court consistent with the restructuring support and lock-up agreement, or Restructuring Support Agreement, by and among the GenOn Entities, NRG, certain holders representing greater than 93% in aggregate principal amount of GenOn’s Senior Notes and certain holders representing greater than 93% in aggregate principal amount of GenOn Americas Generation’s Senior Notes, as further described in Note 3, Chapter 11 Cases. Liquidity and Ability to Continue as a Going Concern As described above and in Note 3, Chapter 11 Cases, the GenOn Entities have submitted the Plan in connection with the Chapter 11 Cases. There is no assurance that such Plan will be approved by the requisite stakeholders, confirmed by the Bankruptcy Court, or successfully implemented thereafter. GenOn's and GenOn Americas Generation’s ability to continue as a going concern is dependent on many factors, including the successful confirmation of the Plan and emergence from bankruptcy. Given the uncertainty as to the outcome of these factors, there is substantial doubt about GenOn's and GenOn Americas Generation's ability to continue as a going concern. The accompanying unaudited interim condensed consolidated financial statements have been prepared assuming GenOn will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business. As such, the accompanying unaudited interim condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should GenOn be unable to continue as a going concern. Such adjustments could have a material adverse impact on GenOn's results of operations, cash flows and financial position. With respect to GenOn Mid-Atlantic, a consolidated subsidiary of GenOn, management has determined that while it has sufficient cash on hand to fund current obligations including operating lease payments due under the GenOn Mid-Atlantic operating leases as of September 30, 2017, the potential significant adverse impact of financial stresses at GenOn Mid-Atlantic's parent companies and any adverse impact resulting from the notification by GenOn Mid-Atlantic's owner lessors alleging the existence of certain lease events of default as further described in Note 8, Debt and Capital Leases, has caused there to be substantial doubt about GenOn Mid-Atlantic's ability to continue as a going concern. Basis of Presentation This is a combined quarterly report of the Registrants for the quarter ended September 30, 2017. The notes to the condensed consolidated financial statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the financial statements in the Registrants' 2016 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Registrants' consolidated financial positions as of September 30, 2017, and the results of operations, comprehensive income/(loss) and cash flows for the three and nine months ended September 30, 2017 and 2016. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassifications Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Other Balance Sheet Information (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net, respectively, for each of the Registrants as of September 30, 2017 and December 31, 2016:
Recent Accounting Developments — Guidance Adopted in 2017 (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) ASU 2016-18 — In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, or ASU No. 2016-18. The amendments of ASU No. 2016-18 require an entity to include amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. For GenOn and GenOn Americas Generation, this includes amounts classified as funds deposited by counterparties. The amendments of ASU No. 2016-18 are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted and the adoption of ASU No. 2016-18 will be applied retrospectively. GenOn and GenOn Americas Generation adopted the guidance in ASU No. 2016-18 during the second quarter of 2017. In connection with the adoption of the standard, the Registrants have applied the guidance retrospectively which resulted in a decrease of the cash flows provided by operating activities of $41 million for the nine months ended September 30, 2016 for GenOn and GenOn Americas Generation. The adoption of ASU No. 2016-18 did not have an impact to GenOn Mid-Atlantic's statement of cash flows. Recent Accounting Developments — Guidance Not Yet Adopted (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) ASU 2017-12 — In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities, or ASU No. 2017-12. The amendments of ASU No. 2017-12 were issued to simplify the application of hedge accounting guidance and more closely align financial reporting for hedging relationships with economic results of an entity's risk management activities. The issues addressed by ASU No. 2017-12 include but are not limited to alignment of risk management activities and financial reporting, risk component hedging, accounting for the hedged item in fair value hedges of interest rate risk, recognition and presentation of the effects of hedging instruments, amounts excluded from the assessment of hedge effectiveness, and other simplifications of hedge accounting guidance. The amendments of ASU No. 2017-12 are effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted in any interim period and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. The Registrants do not expect the adoption of ASU No. 2017-12 will have a material impact on their consolidated results of operations, cash flows, and statement of financial position. ASU 2017-07 — In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, or ASU No. 2017-07. Current GAAP does not indicate where the amount of net benefit cost should be presented in an entity’s income statement and does not require entities to disclose the amount of net benefit cost that is included in the income statement. The amendments of ASU No. 2017-07 require an entity to report the service cost component of net benefit costs in the same line item as other compensation costs arising from services rendered by the related employees during the applicable service period. The other components of net benefit cost are required to be presented separately from the service cost component and outside the subtotal of income from operations. Further, ASU No. 2017-07 prescribes that only the service cost component of net benefit costs is eligible for capitalization. The amendments of ASU No. 2017-07 are effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted and must be applied on a retrospective basis, except for the amendments regarding the capitalization of the service cost component, which must be applied prospectively. GenOn is currently assessing the impact that the adoption of ASU No. 2017-07 will have on its results of operations, cash flows, and statement of financial position. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or Topic 842, with the objective to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and to improve financial reporting by expanding the related disclosures. The guidance in Topic 842 provides that a lessee that may have previously accounted for a lease as an operating lease under current GAAP should recognize the assets and liabilities that arise from a lease on the balance sheet. In addition, Topic 842 expands the required quantitative and qualitative disclosures with regards to lease arrangements. The Registrants expect to adopt the standard effective January 1, 2019 utilizing the required modified retrospective approach for the earliest period presented. The Registrants expect to elect certain of the practical expedients permitted, including the expedient that permits the Registrants to retain its existing lease assessment and classification. The Registrants are currently working through an adoption plan which includes the evaluation of lease contracts compared to the new standard. While the Registrants are currently evaluating the impact the new guidance will have on their financial position and results of operations, the Registrants expect to recognize lease liabilities and right of use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending the Registrants' review of its existing lease contracts and service contracts which may contain embedded leases. While this review is still in process, the Registrants believe the adoption of Topic 842 will have a material impact on their financial statements. ASU 2014-09 — In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Topic 606, which was further amended through various updates issued by the FASB thereafter. The amendments of Topic 606 completed the joint effort between the FASB and the IASB, to develop a common revenue standard for GAAP and IFRS, and to improve financial reporting. The guidance under Topic 606 provides that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services provided and establishes a five step model to be applied by an entity in evaluating its contracts with customers. The Registrants expect to adopt the standard effective January 1, 2018 and apply the guidance retrospectively to contracts at the date of adoption. The Registrants will recognize the cumulative effect of applying Topic 606 at the date of initial application, as prescribed under the modified retrospective transition method. The Registrants also expect to elect the practical expedient available under Topic 606 for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity. In 2016, the Registrants continued to assess the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating the Registrants' methods of estimating the amount and timing of variable consideration. While the impact remains subject to continued review, the Registrants do not believe the adoption of Topic 606 will have a material impact on their financial statements. |
Chapter 11 Cases (GenOn and GenOn Americas Generation) |
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Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Chapter 11 Cases (GenOn and GenOn Americas Generation) | Chapter 11 Cases (GenOn and GenOn Americas Generation) Chapter 11 Cases On June 14, 2017, or the Petition Date, the GenOn Entities filed the Chapter 11 Cases. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA, and certain other subsidiaries, did not file for relief under Chapter 11. The GenOn Entities remain in possession of their property and continue their business operations in the ordinary course uninterrupted as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 29, 2017, the GenOn Entities filed the Plan and the Disclosure Statement with the Bankruptcy Court consistent with the Restructuring Support Agreement. On September 18, 2017 and October 2, 2017, the GenOn Entities filed the Amended Plan and Amended Disclosure Statement and Second Amended Plan and Second Amended Disclosure Statement, respectively, which primarily provided the GenOn Entities with the flexibility to complete sales of certain assets pursuant to the Amended Plan and removed the GenOn Entities' requirement to conduct a rights offering in connection with the GenOn Entities' exit financing. On October 31, 2017, the GenOn Entities announced that they entered into a Consent Agreement with certain holders of GenOn’s Senior Notes and GenOn Americas Generation's Senior Notes, collectively, the Consenting Holders, whereby the GenOn Entities and the Consenting Holders have agreed to extend the milestones in the Restructuring Support Agreement, by which the Plan must become effective, or the Effective Date. Specifically, the Consent Agreement extends the Effective Date milestone to June 30, 2018 or September 30, 2018, if regulatory approvals are still pending, or the Extended Effective Dates. The Consenting Holders’ consent to the Extended Effective Dates is contingent upon entry of an order as described in the Consent Agreement. In addition, the GenOn Entities announced that, over the course of the past several weeks, both the principals and advisors of NRG and GenOn have been engaged in lengthy in-person negotiations in an effort to settle certain items that remained open and unresolved after the pre-petition Restructuring Support Agreement negotiations. These arms-length discussions included key topics such as: (i) timeline and transition, (ii) cooperation and co-development matters, (iii) post-employment and retiree health and welfare benefits and pension benefits, (iv) tax matters, and (v) intercompany balances. The agreements reached on these topics will be incorporated into definitive documents for GenOn’s emergence from Chapter 11. On October 30, 2017, the GenOn Entities filed the Plan Supplement Documents, consisting of, among other things, new organizational documents, new exit financing documents, a pension indemnity agreement, an employee matters agreement, schedules of assumed and rejected executory contracts and unexpired leases, and the Backstop Commitment Letter. The Plan Supplement Documents are subject to ongoing review, revision, and further negotiation by the parties to the Restructuring Support Agreement including the GenOn Debtors, Consenting Holders and NRG, who have various consent rights over the final form of the Plan Supplement Documents, and may be amended, modified, supplemented, and revised in accordance with those ongoing negotiations. Restructuring Support Agreement Prior to filing the Chapter 11 Cases, the GenOn Entities entered into the Restructuring Support Agreement on June 12, 2017 that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization. Completion of the agreed upon terms is contingent upon certain milestones in the Restructuring Support Agreement. Certain principal terms of the Restructuring Support Agreement are detailed below:
In addition to the Restructuring Support Agreement, additional support and other agreements are being negotiated, including a transition services agreement. The filing of the Chapter 11 Cases automatically stayed most actions against the GenOn Entities pursuant to Section 362(a) of the Bankruptcy Code. Absent an order from the Bankruptcy Court, the GenOn Entities' pre-petition liabilities are subject to settlement under the Plan. The GenOn Entities have filed certain motions with the Bankruptcy Court that have been approved. The GenOn Entities expect to operate in the normal course of business throughout the reorganization process. The GenOn Entities have continued to make payments to certain vendors with respect to pre-petition liabilities as permitted by the Bankruptcy Court order, and vendors have been paid for goods and services provided after the Petition Date in the ordinary course of business. GenOn Debt As of September 30, 2017, the Intercompany Revolver, GenOn Senior Notes, and GenOn Americas Generation Senior Notes totaled approximately $2.6 billion. The filing of the Chapter 11 Cases constitutes an event of default under the following debt instruments, or collectively, the Debt Documents:
The Debt Documents set forth in 1-4 above provide that as a result of the commencement of the Chapter 11 Cases the principal and accrued interest due thereunder was immediately due and payable. The Debt Documents set forth in 5-6 above provide that as a result of the commencement of the Chapter 11 Cases the applicable indenture trustee or certain holders of the notes may declare the principal and accrued interest due thereunder to be immediately due and payable. Any efforts to enforce such payment obligations under the Debt Documents were automatically stayed as a result of the commencement of the Chapter 11 Cases, and the holders’ rights of enforcement in respect of the Debt Documents are subject to the applicable provisions of the Bankruptcy Code. The Chapter 11 Cases could also potentially give rise to counterparty rights and remedies under other documents. For further discussion, see Note 8, Debt and Capital Leases and Note 11, Commitments and Contingencies. 2022 Notes On May 8, 2017, a remote special purpose limited liability company issued $550 million in principal amount of notes that bore interest at a rate of 10.5% with a maturity date of June 1, 2022. The proceeds were deposited into a separate and independently maintained escrow account along with 4% of the principal amount and accrued interest from May 8, 2017 through June 15, 2017 totaling $28 million. If certain conditions were satisfied, GenOn was expected to merge with the remote special purpose limited liability company and assume the obligation for the 2022 Notes, which were to be secured by certain of GenOn’s and its subsidiaries' assets. Based on the terms of the underlying transaction documents governing the 2022 Notes, on June 14, 2017, when GenOn filed the Chapter 11 Cases, the funds held in the escrow account were released to the holders of the 2022 Notes, which were simultaneously redeemed. In connection with the escrow release, GenOn expensed $18 million in fees incurred in connection with the 2022 Notes offering in other expense. These fees, along with the $28 million that will be reimbursed by NRG, as further described in Note 10, Related Party Transactions, for total of $46 million, are reflected as financing costs in the statement of cash flows. Backstop Fee The Restructuring Support Agreement also contemplates $900 million in aggregate principal amount of exit financing sought by GenOn primarily to refinance existing indebtedness and pay distributions under the Plan. Consistent with the terms of the Backstop Commitment Letter, GenOn paid $45 million in total (5% of the principal amount of the exit financing), or the Backstop Fee, to certain holders of notes issued by GenOn and GenOn Americas Generation, or the Backstop Parties, in exchange for the Backstop Parties’ joint commitment to fully subscribe the exit financing in the event that certain other parties do not fund the full commitments of the exit financing. On October 2, 2017, the GenOn Entities amended the backstop commitment letter to, among other things, remove the requirement to conduct a rights offering. The Backstop Fee was considered earned by the Backstop Parties and was paid on June 13, 2017. This payment is effectively a discount (a reduction of the proceeds to be received by GenOn from the noteholders) and is reported in other non-current assets on GenOn’s consolidated balance sheet as of September 30, 2017. When the financing is in effect, it will be reported as a direct reduction from the carrying amount of the debt and amortized over the five-year term as interest expense. The Backstop Fee is reflected as financing costs in the statement of cash flows. Accounting for Reorganization As a result of the Chapter 11 Cases, realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. The consolidated financial statements for GenOn and GenOn Americas Generation were prepared in accordance with Accounting Standards Codification (ASC) 852, Reorganizations, for debtors-in-possession. Based on the events leading up to the Chapter 11 Cases, including the most recent PJM auction results, the Registrants considered whether it was necessary to impair any of their long-lived assets and concluded that no impairment had occurred as of September 30, 2017. Liabilities Subject to Compromise GenOn's and GenOn Americas Generation's condensed consolidated balance sheets as of September 30, 2017 include amounts classified as liabilities subject to compromise which include prepetition liabilities that were allowed or that are estimated would be allowed as claims in its Chapter 11 proceedings. If there is uncertainty about whether a claim will be impaired under the Plan, the entire amount of the claim is included in liabilities subject to compromise. The following table summarizes the components of liabilities subject to compromise included on the condensed consolidated balance sheets of GenOn and GenOn Americas Generation:
Interest Expense GenOn and GenOn Americas Generation will not pay interest expense during bankruptcy and it is not expected to be an allowable claim. Therefore, GenOn and GenOn Americas Generation did not record interest on the GenOn Senior Notes or the GenOn Americas Generation Senior Notes in the amount of $49 million and $18 million, respectively, for the period from June 14, 2017 through September 30, 2017. Reorganization Items Reorganization items represent costs and income directly associated with the Chapter 11 proceedings. The below table represents the significant items in reorganization items for GenOn and GenOn Americas Generation:
During the nine months ended September 30, 2017, $32 million of cash payments were made by GenOn for reorganization items. Debtors' Financial Information (GenOn and GenOn Americas Generation) The financial information below represents the Debtor Entities condensed combined financial statements for the three months ended September 30, 2017 and the period from June 14, 2017 through September 30, 2017. The following represent the entities included in the GenOn Entities, or the GenOn Energy, Inc. Debtors:
1 Represent the GenOn Americas Generation debtor entities, or the GenOn Americas Generation Debtors.
The condensed combined comprehensive income for GenOn Energy, Inc. Debtors and the GenOn Americas Generation Debtors is equal to the condensed combined net income for the three months ended September 30, 2017 and the period from June 14, 2017 through September 30, 2017.
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Dispositions (GenOn and GenOn Americas Generation) |
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Sep. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Dispositions (GenOn and GenOn Americas Generation) | Dispositions (GenOn and GenOn Americas Generation) 2017 Dispositions Sale of Emission Allowances (GenOn and GenOn Americas Generation) During the first quarter of 2017, GenOn Energy Management, through its existing agreement with NRG Power Marketing, LLC, sold 1.3 million of certain emission credit allowances for proceeds of $18 million resulting in a gain on the sale of approximately $1 million. 2016 Dispositions Potrero Disposition (GenOn and GenOn Americas Generation) On September 26, 2016, NRG Potrero LLC, or Potrero, an indirect wholly owned subsidiary of GenOn Americas Generation, completed the sale of real property at the Potrero generating station located in San Francisco, CA to California Barrel Company, LLC for total consideration of $86 million comprised of $74 million of cash received, which is net of $8 million of closing costs and $4 million to be held in escrow in order to cover post-closing obligations. The sale resulted in a gain of approximately $74 million recognized within GenOn Americas Generation's consolidated results of operations during the third quarter of 2016. Aurora Disposition (GenOn) On May 12, 2016, GenOn entered into an agreement with RA Generation, LLC to sell the Aurora Generating Station, or Aurora, for cash consideration of $365 million, subject to adjustments for working capital and the results of the PJM 2019/2020 Base Residual Auction. Aurora is an 878 MW natural gas facility located in Aurora, Illinois. On July 12, 2016, GenOn completed the sale of Aurora for cash proceeds of $369 million, including $4 million in adjustments primarily for the PJM base residual auction results and estimated working capital, which is subject to further adjustment. The sale resulted in a gain of approximately $188 million recognized within GenOn's consolidated results of operations during the quarter ended September 30, 2016. In connection with the sale, GenOn issued a guaranty to RA Generation, LLC for the payment of certain indemnified costs related to any damages, losses, or other expenses arising out of misrepresentation or breach of warranties or covenants under the purchase agreement subject to a cap of $365 million, which is reduced to $183 million on January 1, 2018 and then to $91 million beginning January 1, 2019 and will terminate upon the third anniversary of the sale. Seward Disposition (GenOn) On November 24, 2015, GenOn entered into an agreement with Seward Generation, LLC and an affiliate of Robindale Energy Services, Inc. to sell the Seward Generating Station, a 525 MW coal-fired facility in Pennsylvania, for cash consideration of $75 million. On February 2, 2016, GenOn completed the sale of Seward and received gross cash proceeds of $75 million excluding $3 million of cash on hand transferred to the buyer. GenOn will also receive $5 million in deferred cash consideration in five $1 million annual installments, of which $1 million has been received as of September 30, 2017, and $2.5 million in payments contingent upon certain environmental requirements being imposed by August 2017, which has been collected in September 2017. In addition, Robindale committed to future inventory purchases from GenOn of $13 million through 2019. Shelby Disposition (GenOn) On November 9, 2015, GenOn entered into an agreement with an affiliate of Rockland Power Partners II, LP and Shelby County Energy Center, LLC to sell the Shelby Generating Station, a 352 MW natural gas-fired facility located in Illinois for cash consideration of $46 million. At December 31, 2015, GenOn had classified on its balance sheet the assets and liabilities of Shelby as held for sale. On March 1, 2016, GenOn completed the sale of Shelby for cash proceeds of $46 million which resulted in a gain of $29 million recognized within GenOn's consolidated results of operations during the first quarter of 2016. In addition, GenOn retained $10 million related to future revenue rights as part of the agreement, which has been collected as of September 30, 2017. |
Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 4, Fair Value of Financial Instruments, to the Registrants' 2016 Form 10-K. For cash and cash equivalents, restricted cash, funds deposited by counterparties, accounts receivable, accounts payable, accrued liabilities, and cash collateral posted and received in support of energy risk management activities, the carrying amounts approximate fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. As a result of the GenOn Entities filing for relief under Chapter 11 as further discussed in Note 3, Chapter 11 Cases, GenOn and GenOn Americas Generation's long-term debt, including current portion, are classified as liabilities subject to compromise as of September 30, 2017. The estimated carrying amount and fair value of GenOn's long-term debt, including current portion, was $2,752 million and $1,946 million as of December 31, 2016, respectively, of which $1,850 million and $96 million was classified as Level 2 and Level 3, respectively, within the fair value hierarchy. The carrying amount and fair value of long-term debt — affiliate is $125 million as of September 30, 2017 and is classified as Level 3 within the fair value hierarchy. The estimated carrying amount and fair value of GenOn Americas Generation's long-term debt was $745 million and $570 million as of December 31, 2016, respectively, and is classified as Level 2 within the fair value hierarchy. The fair value of long-term debt was estimated using reported market prices for instruments that are publicly traded and are classified as Level 2 within the fair value hierarchy. The fair value of non-publicly traded debt and long-term debt — affiliate is based on the income approach valuation technique using current interest rates for similar instruments with equivalent credit quality and is classified as Level 3 within the fair value hierarchy. Recurring Fair Value Measurements Derivative assets and liabilities are carried at fair market value. Realized and unrealized gains and losses included in earnings that are related to energy derivatives are recorded in operating revenues and cost of operations. GenOn The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn’s consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017. (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for derivatives that are recognized at fair value in GenOn's consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. (b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. GenOn Americas Generation The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Americas Generation's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Americas Generation's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. (b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. GenOn Mid-Atlantic The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Mid-Atlantic's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Mid-Atlantic's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. Derivative Fair Value Measurements A portion of the Registrants' contracts are exchange-traded contracts with readily available quoted market prices. A majority of the Registrants' contracts are non-exchange-traded contracts valued using prices provided by external sources, primarily price quotations available through brokers or over-the-counter and on-line exchanges. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available for the whole term or for certain delivery months. These contracts are valued using various valuation techniques including but not limited to internal models that apply fundamental analysis of the market and corroboration with similar markets. As of September 30, 2017, contracts valued with prices provided by models and other valuation techniques make up 0% of GenOn's derivative assets and 12% of GenOn's derivative liabilities, 5% of GenOn Americas Generation’s derivative assets and 6% of GenOn Americas Generation's derivative liabilities and 0% of GenOn Mid-Atlantic’s derivative assets and 7% of GenOn Mid-Atlantic's derivative liabilities. The Registrants' significant positions classified as Level 3 include financial power and physical coal executed in illiquid markets as well as financial transmission rights, or FTRs. The significant unobservable inputs used in developing fair value include illiquid power and coal location pricing, which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. For FTRs, the Registrants use the most recent auction prices to derive the fair value. The following tables quantify the significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions as of September 30, 2017 and December 31, 2016: GenOn
GenOn Americas Generation
GenOn Mid-Atlantic
The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2017 and December 31, 2016:
The fair value of each contract is discounted using a risk free interest rate. In addition, the Registrants apply a non-performance/credit reserve to reflect credit risk which is calculated based on published default probabilities. To the extent that the Registrants' net exposure under a specific master agreement is an asset, the Registrants use the counterparty's default swap rate. The credit reserve is added to the discounted fair value to reflect the exit price that a market participant would be willing to receive to assume the Registrants' liabilities or that a market participant would be willing to pay for the Registrants' assets. The Registrants' credit reserves were as follows:
There were no non-performance/credit reserves for GenOn Mid-Atlantic as of September 30, 2017 and December 31, 2016. Under the guidance of ASC 815, entities may choose to offset cash collateral posted or received against the fair value of derivative positions executed with the same counterparties under the same master netting agreements. The Registrants have chosen not to offset positions as defined in ASC 815. As of September 30, 2017, GenOn recorded $72 million of cash collateral posted on its balance sheet related to fair value of derivative positions, which includes $25 million of collateral posted to NRG. As of September 30, 2017, GenOn Americas Generation recorded $70 million of cash collateral posted on its balance sheet related to fair value of derivative positions, which includes $25 million of collateral posted to NRG. As of September 30, 2017, GenOn Mid-Atlantic had no outstanding cash collateral posted or received on its balance sheet. Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies, to the Registrants' 2016 Form 10-K, the following is a discussion of the concentration of credit risk for the Registrants’ financial instruments. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. The Registrants are exposed to counterparty credit risk through various activities including wholesale sales and fuel purchases. Counterparty Credit Risk The Registrants' counterparty credit risk policies are disclosed in their 2016 Form 10-K. As of September 30, 2017, GenOn's counterparty credit exposure was $47 million and GenOn held $0 collateral (cash and letters of credit) against those positions, resulting in a net exposure of $47 million. Approximately 94% of GenOn's exposure before collateral is expected to roll off by the end of 2018. As of September 30, 2017, GenOn Americas Generation’s counterparty credit exposure was $47 million, and GenOn Americas Generation held $0 collateral (cash and letters of credit) against those positions, resulting in a net exposure of $47 million. Approximately 94% of GenOn Americas Generation’s exposure before collateral is expected to roll off by the end of 2018. As of September 30, 2017, GenOn Mid-Atlantic had no counterparty credit exposure. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for the Registrants with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market, NPNS and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables.
The Registrants have counterparty credit risk exposure to certain counterparties, each of which represent more than 10% of their respective total net exposure discussed above. The aggregate of such counterparties' exposure was $41 million, $41 million and zero for GenOn, GenOn Americas Generation and GenOn Mid-Atlantic, respectively. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, the Registrants do not anticipate a material impact on their financial position or results of operations from nonperformance by any of their counterparties. RTOs and ISOs The Registrants participate in the organized markets of CAISO, ISO-NE, MISO, NYISO and PJM, known as RTO or ISOs. Trading in these markets is approved by FERC and includes credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to the Registrants' applicable share of the overall market and is excluded from the above exposure. Exchange Traded Transactions The Registrants enter into commodity transactions on registered exchanges, notably ICE and NYMEX. These clearinghouses act as the counterparty, and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk. |
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 5, Accounting for Derivative Instruments and Hedging Activities, to the Registrants' 2016 Form 10-K. Energy-Related Commodities (GenOn) As of September 30, 2017, GenOn had energy-related derivative financial instruments extending through 2019. Volumetric Underlying Derivative Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) The following table summarizes the net notional volume buy/(sell) of the Registrants’ open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception, as of September 30, 2017 and December 31, 2016. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
Fair Value of Derivative Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) The following tables summarize the fair value within the derivative instrument valuation on the balance sheet: GenOn
GenOn Americas Generation
GenOn Mid-Atlantic
The Registrants have elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and do not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Registrants' derivative assets or liabilities are recorded on a separate line item on the balance sheet. The following tables summarize the offsetting of derivatives by counterparty master agreement level and collateral received or paid: GenOn
GenOn Americas Generation
GenOn Mid-Atlantic
Impact of Derivative Instruments on the Statements of Operations (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Unrealized gains and losses associated with changes in the fair value of derivative instruments are reflected in current period earnings. During 2016, the Registrants' underwent the process of closing out and financially settling certain open positions with counterparties. The closure and financial settlements with these counterparties were necessary to manage the increases in collateral posting requirements following rating agency downgrades and reduce expected collateral costs associated with exchange cleared hedge transactions. The following tables summarize the pre-tax effects of economic hedges. These amounts are included within operating revenues and cost of operations. GenOn
As discussed above, GenOn realized approximately $38 million due to the closure and financial settlement of all open positions with one of GenOn's counterparties during the second quarter of 2016, for which $18 million, $19 million and $1 million would have otherwise been realized during the remainder of 2016, and in 2017 and 2018, respectively. In addition, GenOn realized $98 million due to the closure and financial settlement of certain open positions with an additional counterparty during the third quarter of 2016, for which $82 million, $13 million and $3 million would have otherwise been realized in 2017, 2018, and 2019, respectively. GenOn had entered into additional transactions with NRG Power Marketing LLC and an external counterparty in order to re-hedge the positions settled with certain counterparties. During the second quarter of 2017, GenOn realized $5 million due to the closure and financial settlement of all open positions with an additional GenOn counterparty for which $4 million and $1 million would have otherwise been realized during the remainder of 2017 and 2018, respectively. In July 2017, GenOn opened an exchange clearing account with a third party financial institution and posted $20 million of initial collateral. GenOn Americas Generation
As discussed above, GenOn Americas Generation realized approximately $35 million due to the closure and financial settlement of all open positions with one of GenOn Americas Generation's counterparties during the second quarter of 2016, for which $16 million and $19 million would have otherwise been realized during the remainder of 2016 and in 2017, respectively. In addition, GenOn Americas Generation realized $50 million due to the closure and financial settlement of certain open positions with an additional counterparty during the third quarter of 2016, for which $46 million, and $4 million would have otherwise been realized in 2017, and 2018, respectively. GenOn had entered into additional transactions with NRG Power Marketing LLC and an external counterparty in order to re-hedge the positions settled with certain counterparties. During the second quarter of 2017, GenOn Americas Generation realized $5 million due to the closure and financial settlement of all open positions with an additional GenOn Americas Generation counterparty for which $4 million and $1 million would have otherwise been realized during the remainder of 2017 and 2018, respectively. In July 2017, GenOn opened an exchange clearing account with a third party financial institution and posted $20 million of initial collateral. GenOn Mid-Atlantic
As discussed above, GenOn Mid-Atlantic realized approximately $35 million due to the closure and financial settlement of all open positions with one of GenOn Mid-Atlantic's counterparties during the second quarter of 2016, for which $16 million and $19 million would have otherwise been realized during the remainder of 2016 and in 2017, respectively. In addition, GenOn Mid-Atlantic realized $50 million due to the closure and financial settlement of certain open positions with an additional counterparty during the third quarter of 2016, for which $46 million, and $4 million would have otherwise been realized in 2017, and 2018, respectively. GenOn had entered into additional transactions with NRG Power Marketing LLC and an external counterparty in order to re-hedge the positions settled with certain counterparties. In addition, during the second quarter of 2017 GenOn Mid-Atlantic realized $5 million due to the closure and financial settlement of all open positions with an additional GenOn Mid-Atlantic counterparty for which $4 million and $1 million would have otherwise been realized during the remainder of 2017 and 2018, respectively. Credit Risk Related Contingent Features (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Certain of GenOn and GenOn Americas Generation’s hedging agreements contain provisions that require the Registrants to post additional collateral if the counterparty determines that there has been deterioration in credit quality, generally termed "adequate assurance" under the agreements, or require the Registrants to post additional collateral if there were a one notch downgrade in the Registrants’ credit rating. The collateral required for contracts that have adequate assurance clauses that are in net liability positions as of September 30, 2017, was $1 million for GenOn and GenOn Americas Generation. As of September 30, 2017, no collateral was required for contracts with credit rating contingent features that are in a net liability position for GenOn and GenOn Americas Generation. GenOn and GenOn Americas Generation are also party to certain marginable agreements under which no collateral was due as of September 30, 2017. As of September 30, 2017, GenOn Mid-Atlantic did not have any financial instruments with credit-risk-related contingent features. See Note 5, Fair Value of Financial Instruments, for discussion regarding concentration of credit risk. |
Impairments (GenOn) |
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Asset Impairment Charges [Abstract] | |
Impairments (GenOn) | Impairments (GenOn) 2016 Long-Lived Asset Impairments (GenOn) Mandalay and Ormond Beach (GenOn) — On May 26, 2016, the CPUC rejected a multi-year resource adequacy contract between Mandalay and Southern California Edison. Also occurring during the second quarter of 2016, the Statewide Advisory Committee on Cooling Water Intake Structures, or SACCWIS, issued a draft April 2016 Report noting that CAISO plans to continue to assume in its transmission studies that Ormond Beach will not operate after December 31, 2020, the deadline for Ormond Beach compliance with California regulations to mitigate once-through cooling (OTC) impacts. GenOn does not anticipate that contracts of sufficient value can be secured to support the significant investment required to design, permit, construct and operate measures required for OTC compliance. As a result, on May 6, 2016, GenOn notified SACCWIS that it does not expect to continue to operate Ormond Beach beyond 2020. Additionally, during the second quarter of 2016, CAISO issued its Local Capacity Requirements report for 2017 indicating unfavorable changes within the local reliability areas in which both Mandalay and Ormond Beach are located. The culmination of these events were considered to be indicators of impairment and as a result, GenOn performed impairment tests for the Mandalay and Ormond Beach assets under ASC 360, Property, Plant and Equipment. Based on the results of the impairment tests, GenOn determined that the carrying amount of these assets was higher than the estimated future net cash flows expected to be generated by the respective assets and that the Mandalay and Ormond Beach assets were impaired. The fair value of the Mandalay and Ormond Beach operating units was determined using the income approach which utilizes estimates of discounted future cash flows, which were Level 3 fair value measurements and include key inputs such as forecasted contract prices, forecasted operating expenses and discount rates. GenOn measured the impairment losses as the difference between the carrying amount of the Mandalay and Ormond Beach operating units and the present value of the estimated future net cash flows for each respective operating unit. GenOn recorded an impairment loss of $16 million and $43 million for Mandalay and Ormond Beach, respectively, during the quarter ended June 30, 2016. |
Debt and Capital Leases (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt and Capital Leases (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) | Debt and Capital Leases (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) Long-term debt and capital leases consisted of the following:
(a) Premiums were written-off at Petition Date in accordance with ASC 852, Reorganizations. (b) Debt financing liabilities associated with the Long Term Service Agreements for the Choctaw and Hunterstown facilities. Letter of Credit Facility As part of the Restructuring Support Agreement, NRG agreed to provide GenOn with a letter of credit facility during the pendency of the Chapter 11 Cases, which could be utilized for required letters of credit in lieu of the Intercompany Revolver. On July 27, 2017, the letter of credit facility was terminated. See Note 10, Related Party Transactions, for further discussion. On July 14, 2017, the GenOn Entities obtained a letter of credit facility with a third party financial institution to finance the working capital needs and for general corporate purposes. The letter of credit facility provides availability of up to $300 million less amounts borrowed, and letters of credit provided are required to be cash collateralized at 101% of the letter of credit amount. As of September 30, 2017, there was $6 million of letters of credit issued under this letter of credit facility. GenOn Mid-Atlantic Long-Term Deposits On January 27, 2017, GenOn Mid-Atlantic entered into an agreement with Natixis Funding Corp., or Natixis, under which Natixis will procure payment and credit support for the payment of certain lease payments owed pursuant to the GenOn Mid-Atlantic operating leases for Morgantown and Dickerson, or the Natixis Agreement. GenOn Mid-Atlantic made a payment of $130 million plus fees of $1 million as consideration for Natixis applying for the issuance of, and obtaining, letters of credit from Natixis, New York Branch, the LC Provider, to support the lease payments. Natixis is solely responsible for (i) obtaining letters of credit from the LC Provider, (ii) causing the letters of credit to be issued to the lessors to support the lease payments on behalf of GenOn Mid-Atlantic, (iii) making lease payments and (iv) satisfying any reimbursement obligations payable to the LC Provider. The payment was accounted for as a long-term deposit on the Registrants' consolidated balance sheets prior to June 30, 2017, reflecting the deferred benefit to GenOn Mid-Atlantic of its contractual rights under the Natixis Agreement, including lease payments Natixis has agreed to make thereunder, and notwithstanding that GenOn Mid-Atlantic had made an irrevocable payment to Natixis. In letters dated February 24, 2017, GenOn Mid-Atlantic received a series of notices from certain of the owner lessors under its operating leases of the Morgantown coal generation units, or Notices, alleging default. The Notices allege the existence of lease events of default as a result of, among other items, the purported failure by GenOn Mid-Atlantic to comply with a covenant requiring the maintenance of qualifying credit support. The Notices instructed the relevant trustees to draw on letters of credit under the secured intercompany revolving credit agreement between NRG and GenOn as further described in Note 10, Related Party Transactions, to support the GenOn Mid-Atlantic operating leases that were set to expire on February 28, 2017. On February 28, 2017, the trustees drew on the letters of credit under NRG's revolving credit facility, which resulted in borrowings of $125 million. Upon notification, GenOn became obligated under the Intercompany Revolver. In addition, a corresponding payable was recorded by GenOn Mid-Atlantic to GenOn, with the offset recorded as a long-term deposit on the Registrants' consolidated balance sheets as of March 31, 2017 under the related operating leases. GenOn requested GenOn Mid-Atlantic repay the related amount borrowed under the Intercompany Revolver. On May 5, 2017, GenOn Mid-Atlantic repaid $125 million to GenOn. GenOn Mid-Atlantic disagrees with the owner lessors as to the existence of any lease events of default and/or any breaches by GenOn Mid-Atlantic of any terms and conditions of the operating leases and believes that the declaration of a lease event of default, the instruction to draw on the letters of credit, and the draws thereon constituted a violation by the owner lessors and the relevant trustees of the terms and conditions of the GenOn Mid-Atlantic operating leases. GenOn Mid‑Atlantic has been vigorously pursuing its rights and remedies in connection with these actions. On March 7, 2017, GenOn Mid-Atlantic filed a complaint in the Supreme Court for the State of New York against the owner lessors of the Morgantown and Dickerson facilities and U.S. Bank, N.A., or U.S. Bank, in its capacity as the indenture trustee, the GenOn Mid-Atlantic Complaint. The GenOn Mid-Atlantic Complaint seeks, inter alia, a declaratory judgment that no lease events of default exist and asserts counts for breach of contract, conversion, tortious interference, breach of the implied covenant of good faith and fair dealing, unjust enrichment, constructive trust, and injunctive relief. On June 8, 2017, the owner lessors filed a complaint in the Supreme Court for the State of New York against GenOn Mid‑Atlantic and certain of its affiliates, including GenOn and NRG, the Owner Lessor Complaint. The Owner Lessor Complaint asserts ten counts for various fraudulent transfer, contract, and other claims and seeks hundreds of millions of dollars in damages. On June 28, 2017, GenOn Mid-Atlantic directed U.S. Bank in its capacity as the indenture trustee, to apply the $125 million that had been drawn on the letters of credit under NRG's revolving credit facility to the June 30 rent obligations related to the operating leases. In addition, GenOn Mid-Atlantic paid $2.7 million to the owner lessors, which, together with the $125 million, would satisfy the June 30 rent obligations. The owner lessors notified U.S. Bank that the $125 million was to be held pending the outcome of the GenOn Mid-Atlantic Complaint, and that GenOn Mid‑Atlantic must instead satisfy its rent obligations solely from available cash. In response, GenOn Mid-Atlantic again directed U.S. Bank to apply the same $125 million to the June 30 rent obligations. On June 30, 2017, U.S. Bank drew on the Natixis Agreement in the amount of $125 million in order to satisfy the remaining June 30 rent obligation. At such time, GenOn Mid-Atlantic transferred $125 million of the amount paid under the Natixis Agreement to prepaid rent - non-current in its consolidated balance sheet. GenOn Mid-Atlantic disputes that the draw on the Natixis Agreement was proper. The owner lessors dispute that the June 30 rent obligations were satisfied, stating that they have only received the $2.7 million. On July 6 and 7, 2017, GenOn Mid-Atlantic received notices from certain owner lessors under its operating leases of the Dickerson coal generation units, or the Dickerson Notices. The Dickerson Notices allege the existence of lease events of default as a result of, among other items, the purported failure by GenOn Mid-Atlantic to comply with a covenant requiring the maintenance of qualifying credit support. GenOn Mid-Atlantic disputes that there is a lease event of default related to the Natixis Agreement. On July 31, 2017, and pursuant to an agreement reached between GenOn Mid-Atlantic, the owner lessors and certain holders of pass-through certificates, the proceeds of the draw on the Natixis Agreement were applied by the trustee to the June 30 rent payment and distributed to the holders of the pass through certificates of the Morgantown facility pursuant to the waterfall applicable in a “no default” scenario. GenOn Mid-Atlantic entered into a limited waiver agreement with U.S. Bank as lease indenture trustee and pass through trustee, the owner lessors, the owner participants and certain consenting certificateholders under the Morgantown operating leases, pursuant to which all such parties agreed to waive the requirement that GenOn Mid-Atlantic reinstate the availability of any drawn qualifying credit support under any lease agreement for the Morgantown coal generation unit. The limited waiver agreement became effective on September 30, 2017 and will remain in effect until the earlier of (i) November 22, 2017 and (ii) 10 business days after a decision or order is issued in the Debtors’ Motion to Estimate the Owner Lessor Plaintiffs’ Claims and Expedited Motion to Establish Related Schedule [Docket No. 128], pending in the Chapter 11 Cases of the GenOn Entities in the United States Bankruptcy Court for the Southern District of Texas, jointly administered under the lead case caption In re GenOn Energy, Inc., Case No. 17-33695 (DRJ). In connection with the letters of credit issued pursuant to the Natixis Agreement, the LC Provider delivered notices of termination, dated October 26, 2017, of its intent to terminate such letters of credit as of December 27, 2017. Pursuant to the operative documents governing the leases of the Morgantown and Dickerson coal generation units and the letters of credit, the issuer of the letters of credit may terminate such letters of credit by providing 60 days prior written notice to the holders thereof, among other parties. Pursuant to the same operative documents, GenOn Mid-Atlantic must provide alternative qualifying credit support no later than 30 days prior to the intended termination date of the letters of credit subject to termination. GenOn Mid-Atlantic intends to vigorously pursue all rights and claims available to it against any person in connection with the termination of the letters of credit by the LC Provider and the resulting replacement of qualifying credit support. |
Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) GenOn GenOn’s income tax expense consisted of the following:
For the three months ended September 30, 2017, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance. For the nine months ended September 30, 2017, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance, partially offset by the impact of state income taxes. For the three and nine months ended September 30, 2016, GenOn's overall effective tax rate was different than the statutory rate of 35% primarily due to a change in the valuation allowance, offset by the impact of state income taxes associated with the disposition of generating stations during the year. GenOn Americas Generation GenOn Americas Generation's allocated income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero. GenOn Americas Generation's pro forma income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero due to the valuation allowance recorded on its stand-alone financial results. GenOn Mid-Atlantic GenOn Mid-Atlantic’s allocated income taxes resulting from its operations for the three and nine months ended September 30, 2017 and 2016 was zero. GenOn Mid-Atlantic’s pro forma income taxes resulting from its operations was zero and a tax expense of $23 million during the three months ended September 30, 2017 and 2016, respectively. The pro forma income tax provision attributable to income before taxes was zero and a tax expense of $25 million during the nine months ended September 30, 2017 and 2016, respectively. |
Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
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Related Party Transactions [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Services Agreement with NRG NRG provides GenOn with various management, personnel and other services, which include human resources, regulatory and public affairs, accounting, tax, legal, information systems, treasury, risk management, commercial operations, and asset management, as set forth in the services agreement with NRG, or the Services Agreement. The initial term of the Services Agreement was through December 31, 2013, with an automatic renewal absent a request for termination. The fee charged was determined based on a fixed amount as described in the Services Agreement and was calculated based on historical GenOn expenses prior to the NRG Merger. The annual fees under the Services Agreement were approximately $193 million. As described in Note 3, Chapter 11 Cases, in connection with the Restructuring Support Agreement, NRG agreed to provide shared services to GenOn under the Services Agreement for an adjusted annualized fee of $84 million through the pendency of the Chapter 11 Cases. Subsequent to the GenOn Entities’ emergence from bankruptcy, NRG will provide shared services for two months at no charge; after which GenOn has an additional two, one-month options to provide services at the annualized fee of $84 million. NRG charges these fees on a monthly basis, less amounts incurred directly by GenOn. For the three and nine months ended September 30, 2017, GenOn recorded costs related to these services of $14 million and $100 million, respectively, as general and administrative — affiliate. For the three and nine months ended September 30, 2016, GenOn recorded costs related to these services of $46 million and $139 million, respectively, as general and administrative — affiliate. In addition, under the Restructuring Support Agreement, NRG has agreed to provide GenOn with a $28 million credit against amounts owed to NRG prior to the Petition Date under the current Services Agreement. As of June 30, 2017, GenOn recorded a receivable from NRG for this $28 million. Such amount was intended to reimburse GenOn for costs incurred in connection with the 2022 Notes that were not assumed. Accordingly, GenOn removed the previously deferred costs in the amount of $28 million and recorded a receivable from NRG for this amount. The receivable is reflected net in accounts payable - affiliate on the consolidated balance sheet as of September 30, 2017. In addition, the Restructuring Support Agreement provides that to the extent GenOn has paid for services during the bankruptcy proceedings and the aforementioned credit has not been applied in full, NRG shall, upon request by GenOn, reimburse such payments in cash up to the amount of any unused portion of the credit. Under the Services Agreement, NRG also provides GenOn Americas Generation and GenOn Mid-Atlantic with various management, personnel and other services consistent with those set forth in the Services Agreement discussed above between NRG and GenOn. GenOn's costs incurred under the Services Agreement with NRG are allocated to its subsidiaries based on each operating subsidiary's planned operating expenses relative to all operating subsidiaries of GenOn. These allocations and charges are not necessarily indicative of what would have been incurred had GenOn Americas Generation and GenOn Mid-Atlantic been unaffiliated entities. Management has concluded that this method of charging overhead costs is reasonable. The following costs were incurred under these arrangements: GenOn Americas Generation
GenOn Mid-Atlantic
Credit Agreement with NRG (GenOn) GenOn and NRG Americas, Inc. are party to a secured intercompany revolving credit agreement with NRG, or the Intercompany Revolver. The Intercompany Revolver provided for a $500 million revolving credit facility, all of which was available for revolving loans and letters of credit. At September 30, 2017 and December 31, 2016, $103 million and $272 million, respectively, of letters of credit were issued and outstanding under the NRG credit agreement for GenOn. Of this amount, $21 million and $199 million were issued on behalf of GenOn Americas Generation as of September 30, 2017 and December 31, 2016, respectively, which includes $1 million and $128 million issued on behalf of GenOn Mid-Atlantic as of September 30, 2017 and December 31, 2016, respectively. Additionally, as of September 30, 2017, there were $125 million loans outstanding under the Intercompany Revolver, which is recorded as long-term debt - affiliate on the balance sheet, as further described in Note 8, Debt and Capital Leases. As of December 31, 2016, no loans were outstanding under this Intercompany Revolver. Certain of GenOn's subsidiaries, as guarantors, entered into a guarantee agreement pursuant to which these guarantors guaranteed amounts borrowed and obligations incurred under the credit agreement. The guarantors are restricted from incurring additional liens on certain of their assets. In addition, the Intercompany Revolver contains customary covenants and events of default. As of September 30, 2017, GenOn was in default under the Intercompany Revolver with NRG due to the filing of the Chapter 11 Cases. As a result of the Chapter 11 Cases, no additional revolving loans or letters of credit are available to GenOn under the Intercompany Revolver. In addition, NRG agreed to provide GenOn with a letter of credit facility during the pendency of the Chapter 11 Cases, which could be utilized for required letters of credit in lieu of the Intercompany Revolver. The letter of credit facility provided availability of up to $330 million less amounts borrowed and letters of credit provided were required to be cash collateralized at 103% of the letter of credit amount. On July 27, 2017, this letter of credit facility was terminated as GenOn has obtained a separate letter of credit facility with a third party financial institution, as discussed in Note 8, Debt and Capital Leases. Effective with completion of the reorganization, GenOn must repay NRG for all revolving loans outstanding, with such amount to be netted against the settlement payment owed from NRG to GenOn. Interest continues to accrue during the pendency of the Chapter 11 Cases and borrowings remain secured obligations. Intercompany Cash Management Program (GenOn Americas Generation) GenOn Americas Generation and certain of its subsidiaries participate in separate intercompany cash management programs whereby cash balances at GenOn Americas Generation and the respective participating subsidiaries are transferred to central concentration accounts to fund working capital and other needs of the respective participants. The balances under this program are reflected as notes receivable — affiliate and accounts receivable — affiliate or notes payable — affiliate and accounts payable — affiliate, as appropriate. The balances are due on demand and notes receivable — affiliate and notes payable — affiliate accrue interest on the net position, which is payable quarterly, at a rate determined by GenOn Energy Holdings, a wholly owned subsidiary of GenOn. These arrangements have continued in the normal course of business through the pendency of the Chapter 11 Cases. At September 30, 2017 and December 31, 2016, GenOn Americas Generation had a net current note receivable — affiliate from GenOn Energy Holdings of $318 million and $315 million, respectively, related to its intercompany cash management program. For the nine months ended September 30, 2017 and 2016, GenOn Americas Generation earned an insignificant amount of net interest income related to these notes. Additionally, at September 30, 2017 and December 31, 2016, GenOn Americas Generation had an accounts receivable — affiliate of $50 million and an accounts payable — affiliate of $43 million, respectively, with GenOn Energy Holdings related to the intercompany cash management programs. Intercompany Hedging Agreements with NRG Under intercompany agreements, NRG Power Marketing LLC may from time to time enter into physical and financial intercompany commodity and hedging transactions with GenOn and certain of its subsidiaries. Subject to applicable collateral thresholds, these arrangements may provide for the bilateral exchange of credit support based upon market exposure and potential market movements. The terms and conditions of the agreements are generally consistent with industry practices and other third party arrangements. As of September 30, 2017, GenOn has no net exposure under these arrangements. |
Commitments and Contingencies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
9 Months Ended |
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Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Commitments and Contingencies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 14, Commitment and Contingencies, to the Registrants' 2016 Form 10-K. Contingencies The Registrants’ material legal proceedings are described below. The Registrants believe that they have valid defenses to these legal proceedings and intend to defend them vigorously. The Registrants record reserves for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Registrants believe they have established an adequate reserve for the matters discussed below. In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Registrants are unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Registrants’ liabilities and contingencies could be at amounts that are different from their currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, the Registrants are parties to other litigation or legal proceedings arising in the ordinary course of business. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect the Registrants’ respective consolidated financial position, results of operations, or cash flows. GenOn Chapter 11 Cases (GenOn and GenOn Americas Generation) — On the Petition Date, the GenOn Entities filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court. As a result of such bankruptcy filings, substantially all proceedings pending against the GenOn Entities have been stayed by operation of Section 362(a) of the Bankruptcy Code. Under the Restructuring Support Agreement to which the GenOn Entities, NRG and certain of GenOn's and GenOn Americas Generation's senior unsecured noteholders are parties, each of them has agreed to support Bankruptcy Court approval of the Plan. GenOn has a customary "fiduciary out" under the Restructuring Support Agreement. Moreover, the Bankruptcy Court may not approve the Plan. If the Plan is not approved and consummated, GenOn may not be entitled to the benefits of the Settlement Agreement provided under the Restructuring Support Agreement and it will remain subject to any claims of NRG and the noteholders, including claims relating to or arising out of any shared services and any other relationships or transactions between the companies. See Note 3, Chapter 11 Cases, for additional information. The GenOn Entities are in the process of evaluating claims submitted in connection with the Chapter 11 Cases to determine the validity of such claims but has not yet finished their assessment of valid claims and are currently unable to determine the amount of such claims. Actions Pursued by MC Asset Recovery (GenOn) — With Mirant Corporation's emergence from bankruptcy protection in 2006, certain actions filed by GenOn Energy Holdings and some of its subsidiaries against third parties were transferred to MC Asset Recovery, a wholly owned subsidiary of GenOn Energy Holdings. MC Asset Recovery is governed by a manager who is independent of NRG and GenOn. MC Asset Recovery is a disregarded entity for income tax purposes. Under the remaining action transferred to MC Asset Recovery, MC Asset Recovery seeks to recover damages from Commerzbank AG and various other banks, or the Commerzbank Defendants, for alleged fraudulent transfers that occurred prior to Mirant's bankruptcy proceedings. In December 2010, the U.S. District Court for the Northern District of Texas dismissed MC Asset Recovery's complaint against the Commerzbank Defendants. In January 2011, MC Asset Recovery appealed the District Court's dismissal of its complaint against the Commerzbank Defendants to the U.S. Court of Appeals for the Fifth Circuit, or the Fifth Circuit. In March 2012, the Fifth Circuit reversed the District Court's dismissal and reinstated MC Asset Recovery's amended complaint against the Commerzbank Defendants. On December 10, 2015, the District Court granted summary judgment in favor of the Commerzbank Defendants. On December 29, 2015, MC Asset Recovery filed a notice to appeal this judgment with the Fifth Circuit. On June 1, 2017, the Fifth Circuit affirmed the District Court's judgment. On June 12, 2017, MC Asset Recovery petitioned the Fifth Circuit for rehearing. The petition for rehearing was denied and a court order and judgment affirming the District Court's judgments was entered on July 17, 2017. On January 17, 2018, the bankruptcy court will hear a Motion for a Final Decree in the Mirant bankruptcy. Natural Gas Litigation (GenOn) — GenOn is party to several lawsuits, certain of which are class action lawsuits, in state and federal courts in Kansas, Missouri, Nevada and Wisconsin. These lawsuits were filed in the aftermath of the California energy crisis in 2000 and 2001 and the resulting FERC investigations and relate to alleged conduct to increase natural gas prices in violation of state antitrust law and similar laws. The lawsuits seek treble or punitive damages, restitution and/or expenses. The lawsuits also name as parties a number of energy companies unaffiliated with NRG. In July 2011, the U.S. District Court for the District of Nevada, which was handling four of the five cases, granted the defendants' motion for summary judgment and dismissed all claims against GenOn in those cases. The plaintiffs appealed to the U.S. Court of Appeals for the Ninth Circuit, or the Ninth Circuit, which reversed the decision of the District Court. GenOn along with the other defendants in the lawsuit filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the Ninth Circuit's decision and the U.S. Supreme Court granted the petition. On April 21, 2015, the U.S. Supreme Court affirmed the Ninth Circuit’s holding that plaintiffs’ state antitrust law claims are not field-preempted by the federal Natural Gas Act and the Supremacy Clause of the U.S. Constitution. The U.S. Supreme Court left open whether the claims were preempted on the basis of conflict preemption. The U.S. Supreme Court directed that the case be remanded to the U.S. District Court for the District of Nevada for further proceedings. On March 7, 2016, class plaintiffs filed their motions for class certification. Defendants filed their briefs in opposition to class plaintiffs' motions for class certification on June 24, 2016. On March 30, 2017, the court denied the plaintiffs' motions for class certification. On April 13, 2017, the plaintiffs petitioned the Ninth Circuit for interlocutory review of the court’s order denying class certification. On June 13, 2017, the Ninth Circuit granted plaintiffs' petition for interlocutory review. In May 2016 in one of the Kansas cases, the U.S. District Court for the District of Nevada granted the defendants' motion for summary judgment. Subsequently in December 2016, the plaintiffs filed a notice of appeal with the Ninth Circuit. The appeal has been fully briefed by the parties. GenOn has agreed to indemnify CenterPoint against certain losses relating to these lawsuits. In September 2012, the State of Nevada Supreme Court, which was handling the remaining case, affirmed dismissal by the Eighth Judicial District Court for Clark County, Nevada of all plaintiffs' claims against GenOn. In February 2013, the plaintiffs in the Nevada case filed a petition for a writ of certiorari to the U.S. Supreme Court. In June 2013, the U.S. Supreme Court denied the petition for a writ of certiorari, thereby ending one of the five lawsuits. Mirant Chapter 11 Proceedings (GenOn and GenOn Americas Generation) — In July 2003, and various dates thereafter, the Mirant Debtors filed voluntary petitions in the U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth Division, for relief under Chapter 11 of the Bankruptcy Code. GenOn Energy Holdings and most of the other Mirant Debtors emerged from bankruptcy on January 3, 2006, when the plan of reorganization that was approved in conjunction with Mirant Corporation's emergence from bankruptcy protection, or the Mirant Plan, became effective. The remaining Mirant Debtors emerged from bankruptcy on various dates in 2007. Approximately 461,000 of the shares of GenOn Energy Holdings common stock to be distributed under the Mirant Plan have not yet been distributed and have been reserved for distribution with respect to claims disputed by the Mirant Debtors that have not been resolved. Upon the Mirant/RRI Merger, those reserved shares converted into a reserve for approximately 1.3 million shares of GenOn common stock. Upon the NRG Merger, those reserved shares converted into a reserve for approximately 159,000 shares of NRG common stock. Under the terms of the Mirant Plan, upon the resolution of such a disputed claim, the claimant will receive the same pro rata distributions of common stock, cash, or both as previously allowed claims, regardless of the price at which the common stock is trading at the time the claim is resolved. If the aggregate amount of any such payouts results in the number of reserved shares being insufficient, additional shares of common stock may be issued to address the shortfall. On January 17, 2018, the bankruptcy court will hear a Motion for a Final Decree in the Mirant Bankruptcy. Potomac River Environmental Investigation (GenOn Mid-Atlantic) — In March 2013, NRG Potomac River LLC, a subsidiary of GenOn Mid-Atlantic, received notice that the District of Columbia Department of Environment (now renamed the Department of Energy and Environment, or DOEE) was investigating potential discharges to the Potomac River originating from the Potomac River Generating facility site, a site where the generation facility is no longer in operation. In connection with that investigation, DOEE served a civil subpoena on NRG Potomac River LLC requesting information related to the site and potential discharges occurring from the site. NRG Potomac River LLC provided various responsive materials. In January 2016, DOEE advised NRG Potomac River LLC that DOEE believed various environmental violations had occurred as a result of discharges DOEE believes occurred to the Potomac River from the Potomac River Generating facility site and as a result of associated failures to accurately or sufficiently report such discharges. DOEE has indicated it believes that penalties are appropriate in light of the violations. NRG Potomac River LLC is currently reviewing the information provided by DOEE. GenOn Noteholders' Lawsuit (GenOn and GenOn Americas Generation) — On December 13, 2016, certain indenture trustees for an ad hoc group of holders, or the Noteholders, of the GenOn Energy, Inc. 7.875% Senior Notes due 2017, 9.500% Notes due 2018, and 9.875% Notes due 2020, and the GenOn Americas Generation, LLC 8.50% Senior Notes due 2021 and 9.125% Senior Notes due 2031, along with certain of the Noteholders, filed a complaint in the Superior Court of the State of Delaware against NRG and GenOn alleging certain claims related to a services agreement between NRG and GenOn. Plaintiffs generally seek recovery of all monies paid under the services agreement and any other damages that the court deems appropriate. On February 3, 2017, the court entered an order approving a Standstill Agreement whereby the parties agreed to suspend all deadlines in the case until March 1, 2017. The Standstill Agreement terminated on March 1, 2017. On April 30, 2017, the Noteholders filed an amended complaint that asserts (i) additional fraudulent transfer claims in relation to GenOn’s sale of the Marsh Landing project to NRG Yield LLC, (ii) alleged breaches of fiduciary duty by certain current and former officers and directors of GenOn in relation to the management services agreement and the alleged usurpation of corporate opportunities concerning the Mandalay and Canal projects and (iii) claims against NRG for allegedly aiding and abetting such claimed breaches of fiduciary duties. In addition to NRG and GenOn, the amended complaint names NRG Yield LLC and certain current and former officers and directors of GenOn as defendants. The plaintiffs generally seek recovery of all monies paid under the services agreement and any other damages that the court deems appropriate. On March 31, 2017, NRG and GenOn filed separate motions to dismiss the complaint, but such motions are superseded by the amended complaint. Pursuant to the terms of the Restructuring Support Agreement, this matter should ultimately be resolved if the GenOn Entities' plan of reorganization is approved by the Bankruptcy Court. Rice v. NRG — On April 14, 2017, plaintiffs filed a purported class action lawsuit in the U.S. District Court for the Western District of Pennsylvania against NRG, First Energy Corporation and Matt Canastrale Contracting, Inc. Plaintiffs generally claim personal injury, trespass, nuisance and property damage related to the disposal of coal ash from GenOn's Elrama Power Plant and First Energy’s Mitchell and Hatfield Power Plants. Plaintiffs generally seek monetary damages, medical monitoring and remediation of their property. Plaintiffs filed an amended complaint on August 14, 2017. Morgantown v. GenOn Mid-Atlantic — On June 8, 2017, Morgantown and Dickerson Owner Lessors filed a lawsuit against GenOn Mid-Atlantic, LLC, NRG North America LLC, GenOn Americas Generation, LLC, NRG Americas, Inc., GenOn Energy Holdings, Inc., GenOn Energy, Inc., and NRG Energy, Inc. in New York State Supreme Court. The plaintiffs allege that they were overcharged by defendants for certain services outlined in a Services Agreement and that defendants caused a Qualified Credit Support portion of a Participation Agreement, or QCS Agreement, to be violated by causing the transfer of certain monies outside the allowable confines set forth in the QCS Agreement. In addition, plaintiffs claim that the transfers were unfairly executed and done so in an effort to defraud plaintiffs and hinder their ability to continue to do business. As such, plaintiffs seek, among other things, the return of certain transferred funds and service charges paid and to bar defendants from executing additional transfers on plaintiffs’ behalf. A claims estimation ruling on this matter by the Bankruptcy Court could occur as early as November 7, 2017. |
Regulatory Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
9 Months Ended |
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Sep. 30, 2017 | |
Regulated Operations [Abstract] | |
Regulatory Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Regulatory Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 15, Regulatory Matters, to the Registrants' 2016 Form 10-K. The Registrants operate in a highly regulated industry and are subject to regulation by various federal and state agencies. As such, the Registrants are affected by regulatory developments at both the federal and state levels and in the regions in which they operate. In addition, the Registrants are subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which they participate. These power markets are subject to ongoing legislative and regulatory changes that may impact the Registrants' wholesale business. In addition to the regulatory proceedings noted below, the Registrants are parties to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect the Registrants’ respective consolidated financial position, results of operations, or cash flows. National Zero-Emission Credits for Nuclear Plants in Illinois — In 2016, Illinois enacted a Zero Emission Credit, or ZEC, program for selected nuclear units in Illinois. In total, the program directs over $2.5 billion over ten years to nuclear plants in Illinois that would otherwise retire. Pursuant to the legislation, the Illinois Power Agency, or IPA, conducts a competitive solicitation to procure ZECs, although both the Governor of Illinois and Exelon have already announced that the ZECs will be awarded to two Exelon-owned nuclear power plants in Illinois. These ZECs are out-of-market subsidies that threaten to artificially suppress market prices and interfere with the wholesale power market. On February 14, 2017, NRG, along with other companies, filed a complaint in the U.S. District Court for the Northern District of Illinois alleging that the state program is preempted by federal law and in violation of the dormant commerce clause. Another plaintiff group filed a similar complaint on the same day. Subsequently, on March 31, 2017, NRG, along with other companies, filed a motion for preliminary injunction. On April 10, 2017, Exelon, as an intervenor defendant, and State defendants filed motions to dismiss. On July 14, 2017, Defendants' motions to dismiss were granted. On July 17, 2017, NRG, along with other companies, filed a notice of appeal to the U.S. Court of Appeals for the Seventh Circuit. On July 18, 2017, the Court of Appeals issued an order setting an expedited briefing schedule for the matter. Briefing is underway. Zero-Emission Credits for Nuclear Plants in New York — On August 1, 2016, the NYSPSC issued its Clean Energy Standard, or CES, which provided for ZECs which would provide more than $7.6 billion over 12 years in out-of-market subsidy payments to certain selected nuclear generating units in the state. These ZECs are out-of-market subsidies that threaten to artificially suppress market prices and interfere with the wholesale power market. On October 19, 2016, NRG, along with other companies, filed a complaint in the U.S. District Court for the Southern District of New York, challenging the validity of the NYSPSC action and the ZEC program. On March 29, 2017, the U.S. District Court heard oral arguments on a motion to dismiss filed by defendants. On July 25, 2017, the defendants' motions to dismiss were granted. On August 24, 2017, NRG, along with other companies, filed a notice of appeal to the U.S. Court of Appeals for the Second Circuit. On September 9, 2017, the Court of Appeals issued a briefing schedule. Briefing is underway. |
Environmental Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) |
9 Months Ended |
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Sep. 30, 2017 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Environmental Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 16, Environmental Matters, to the Registrants' 2016 Form 10-K. The Registrants are subject to a wide range of environmental laws in the development, construction, ownership and operation of projects. These laws generally require that governmental permits and approvals be obtained before construction and during operation of power plants. The electric generation industry has been facing requirements regarding GHGs, combustion byproducts, water discharge and use, and threatened and endangered species that have been put in place in recent years. However, under the current U.S. presidential administration some of these rules are being reconsidered and reviewed. In general, future laws are expected to require the addition of emissions controls or other environmental controls or to impose certain restrictions on the operations of the Registrants' facilities, which could have a material effect on the Registrants' respective consolidated financial position, results of operations, or cash flows. Federal and state environmental laws generally have become more stringent over time, although this trend could slow or pause in the near term with respect to federal laws under the current U.S. presidential administration. The EPA finalized CSAPR in 2011, which was intended to replace CAIR in January 2012, to address certain states' obligations to reduce emissions so that downwind states can achieve federal air quality standards. In December 2011, the D.C. Circuit stayed the implementation of CSAPR and then vacated CSAPR in August 2012 but kept CAIR in place until the EPA could replace it. In April 2014, the U.S. Supreme Court reversed and remanded the D.C. Circuit's decision. In October 2014, the D.C. Circuit lifted the stay of CSAPR. In response, the EPA in November 2014 amended the CSAPR compliance dates. Accordingly, CSAPR replaced CAIR on January 1, 2015. On July 28, 2015, the D.C. Circuit held that the EPA had exceeded its authority by requiring certain reductions that were not necessary for downwind states to achieve federal standards. Although the D.C. Circuit kept the rule in place, the court ordered the EPA to revise the Phase 2 (or 2017) (i) SO2 budgets for four states and (ii) ozone-season NOx budgets for 11 states including Maryland, New Jersey, New York, Ohio and Pennsylvania. On October 26, 2016, the EPA finalized the CSAPR Update Rule, which reduces future NOx allocations and discounts the current banked allowances to account for the more stringent 2008 Ozone NAAQS and to address the D.C. Circuit's July 2015 decision. This rule has been challenged in the D.C. Circuit. The Registrants believe their investment in pollution controls and cleaner technologies leave the fleet well-positioned for compliance. In February 2012, the EPA promulgated standards (the MATS rule) to control emissions of HAPs from coal and oil-fired electric generating units. The rule established limits for mercury, non-mercury metals, certain organics and acid gases, which had to be met beginning in April 2015 (with some units getting a 1-year extension). In June 2015, the U.S. Supreme Court issued a decision in the case of Michigan v. EPA, and held that the EPA unreasonably refused to consider costs when it determined that it was "appropriate and necessary" to regulate HAPs emitted by electric generating units. The U.S. Supreme Court did not vacate the MATS rule but rather remanded it to the D.C. Circuit for further proceedings. In December 2015, the D.C. Circuit remanded the MATS rule to the EPA without vacatur. On April 25, 2016, the EPA released a supplemental finding that the benefits of this regulation outweigh the costs to address the U.S. Supreme Court's ruling that the EPA had not properly considered costs. This finding has been challenged in the D.C. Circuit. On April 18, 2017, the EPA asked the D.C. Circuit to postpone oral argument that had been scheduled for May 18, 2017 because the EPA is closely reviewing the supplemental finding to determine whether it should reconsider all or part of the rule. On April 27, 2017, the D.C. Circuit granted EPA’s request to postpone the oral argument and hold the case in abeyance. While the Registrants cannot predict the final outcome of this rulemaking, the Registrants believe that because they have already invested in pollution controls and cleaner technologies, their fleet is well-positioned to comply with the MATS rule. Water In August 2014, the EPA finalized the regulation regarding the use of water for once through cooling at existing facilities to address impingement and entrainment concerns. The Registrants anticipate that more stringent requirements will be incorporated into some of their water discharge permits over the next several years as NPDES permits are renewed. Effluent Limitations Guidelines — In November 2015, the EPA revised the Effluent Limitations Guidelines for Steam Electric Generating Facilities, which would have imposed more stringent requirements (as individual permits were renewed) for wastewater streams from flue gas desulfurization, or FGD, fly ash, bottom ash, and flue gas mercury control. In April 2017, the EPA granted two petitions to reconsider the rule and also administratively stayed some of the deadlines. On September 18, 2017, the EPA promulgated a final rule that (i) postpones the compliance dates to preserve the status quo for FGD wastewater and bottom ash transport water by two years to November 2020 until the EPA completes its next rulemaking and (ii) withdrew the April 2017 administrative stay. The legal challenges have been suspended while the EPA reconsiders and likely modifies the rule. Accordingly, the Registrants have largely eliminated their estimate of the environmental capital expenditures that would have been required to comply with permits incorporating the revised guidelines. The Registrants will revisit these estimates after the rule is revised. Byproducts, Wastes, Hazardous Materials and Contamination In April 2015, the EPA finalized the rule regulating byproducts of coal combustion (e.g., ash and gypsum) as solid wastes under the RCRA. On September 13, 2017, the EPA granted a petition for reconsideration that the Utility Solid Waste Activities Group filed in May 2017. The Registrants have evaluated the impact of the new rule on their results of operations, financial condition and cash flows and have accrued their environmental and asset retirement obligations under the rule based on current estimates as of September 30, 2017. |
Debtors' Financial Information (GenOn and GenOn Americas Generation) |
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Debtors' Financial Information (GenOn and GenOn Americas Generation) | Chapter 11 Cases (GenOn and GenOn Americas Generation) Chapter 11 Cases On June 14, 2017, or the Petition Date, the GenOn Entities filed the Chapter 11 Cases. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA, and certain other subsidiaries, did not file for relief under Chapter 11. The GenOn Entities remain in possession of their property and continue their business operations in the ordinary course uninterrupted as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. On June 29, 2017, the GenOn Entities filed the Plan and the Disclosure Statement with the Bankruptcy Court consistent with the Restructuring Support Agreement. On September 18, 2017 and October 2, 2017, the GenOn Entities filed the Amended Plan and Amended Disclosure Statement and Second Amended Plan and Second Amended Disclosure Statement, respectively, which primarily provided the GenOn Entities with the flexibility to complete sales of certain assets pursuant to the Amended Plan and removed the GenOn Entities' requirement to conduct a rights offering in connection with the GenOn Entities' exit financing. On October 31, 2017, the GenOn Entities announced that they entered into a Consent Agreement with certain holders of GenOn’s Senior Notes and GenOn Americas Generation's Senior Notes, collectively, the Consenting Holders, whereby the GenOn Entities and the Consenting Holders have agreed to extend the milestones in the Restructuring Support Agreement, by which the Plan must become effective, or the Effective Date. Specifically, the Consent Agreement extends the Effective Date milestone to June 30, 2018 or September 30, 2018, if regulatory approvals are still pending, or the Extended Effective Dates. The Consenting Holders’ consent to the Extended Effective Dates is contingent upon entry of an order as described in the Consent Agreement. In addition, the GenOn Entities announced that, over the course of the past several weeks, both the principals and advisors of NRG and GenOn have been engaged in lengthy in-person negotiations in an effort to settle certain items that remained open and unresolved after the pre-petition Restructuring Support Agreement negotiations. These arms-length discussions included key topics such as: (i) timeline and transition, (ii) cooperation and co-development matters, (iii) post-employment and retiree health and welfare benefits and pension benefits, (iv) tax matters, and (v) intercompany balances. The agreements reached on these topics will be incorporated into definitive documents for GenOn’s emergence from Chapter 11. On October 30, 2017, the GenOn Entities filed the Plan Supplement Documents, consisting of, among other things, new organizational documents, new exit financing documents, a pension indemnity agreement, an employee matters agreement, schedules of assumed and rejected executory contracts and unexpired leases, and the Backstop Commitment Letter. The Plan Supplement Documents are subject to ongoing review, revision, and further negotiation by the parties to the Restructuring Support Agreement including the GenOn Debtors, Consenting Holders and NRG, who have various consent rights over the final form of the Plan Supplement Documents, and may be amended, modified, supplemented, and revised in accordance with those ongoing negotiations. Restructuring Support Agreement Prior to filing the Chapter 11 Cases, the GenOn Entities entered into the Restructuring Support Agreement on June 12, 2017 that provides for a restructuring and recapitalization of the GenOn Entities through a prearranged plan of reorganization. Completion of the agreed upon terms is contingent upon certain milestones in the Restructuring Support Agreement. Certain principal terms of the Restructuring Support Agreement are detailed below:
In addition to the Restructuring Support Agreement, additional support and other agreements are being negotiated, including a transition services agreement. The filing of the Chapter 11 Cases automatically stayed most actions against the GenOn Entities pursuant to Section 362(a) of the Bankruptcy Code. Absent an order from the Bankruptcy Court, the GenOn Entities' pre-petition liabilities are subject to settlement under the Plan. The GenOn Entities have filed certain motions with the Bankruptcy Court that have been approved. The GenOn Entities expect to operate in the normal course of business throughout the reorganization process. The GenOn Entities have continued to make payments to certain vendors with respect to pre-petition liabilities as permitted by the Bankruptcy Court order, and vendors have been paid for goods and services provided after the Petition Date in the ordinary course of business. GenOn Debt As of September 30, 2017, the Intercompany Revolver, GenOn Senior Notes, and GenOn Americas Generation Senior Notes totaled approximately $2.6 billion. The filing of the Chapter 11 Cases constitutes an event of default under the following debt instruments, or collectively, the Debt Documents:
The Debt Documents set forth in 1-4 above provide that as a result of the commencement of the Chapter 11 Cases the principal and accrued interest due thereunder was immediately due and payable. The Debt Documents set forth in 5-6 above provide that as a result of the commencement of the Chapter 11 Cases the applicable indenture trustee or certain holders of the notes may declare the principal and accrued interest due thereunder to be immediately due and payable. Any efforts to enforce such payment obligations under the Debt Documents were automatically stayed as a result of the commencement of the Chapter 11 Cases, and the holders’ rights of enforcement in respect of the Debt Documents are subject to the applicable provisions of the Bankruptcy Code. The Chapter 11 Cases could also potentially give rise to counterparty rights and remedies under other documents. For further discussion, see Note 8, Debt and Capital Leases and Note 11, Commitments and Contingencies. 2022 Notes On May 8, 2017, a remote special purpose limited liability company issued $550 million in principal amount of notes that bore interest at a rate of 10.5% with a maturity date of June 1, 2022. The proceeds were deposited into a separate and independently maintained escrow account along with 4% of the principal amount and accrued interest from May 8, 2017 through June 15, 2017 totaling $28 million. If certain conditions were satisfied, GenOn was expected to merge with the remote special purpose limited liability company and assume the obligation for the 2022 Notes, which were to be secured by certain of GenOn’s and its subsidiaries' assets. Based on the terms of the underlying transaction documents governing the 2022 Notes, on June 14, 2017, when GenOn filed the Chapter 11 Cases, the funds held in the escrow account were released to the holders of the 2022 Notes, which were simultaneously redeemed. In connection with the escrow release, GenOn expensed $18 million in fees incurred in connection with the 2022 Notes offering in other expense. These fees, along with the $28 million that will be reimbursed by NRG, as further described in Note 10, Related Party Transactions, for total of $46 million, are reflected as financing costs in the statement of cash flows. Backstop Fee The Restructuring Support Agreement also contemplates $900 million in aggregate principal amount of exit financing sought by GenOn primarily to refinance existing indebtedness and pay distributions under the Plan. Consistent with the terms of the Backstop Commitment Letter, GenOn paid $45 million in total (5% of the principal amount of the exit financing), or the Backstop Fee, to certain holders of notes issued by GenOn and GenOn Americas Generation, or the Backstop Parties, in exchange for the Backstop Parties’ joint commitment to fully subscribe the exit financing in the event that certain other parties do not fund the full commitments of the exit financing. On October 2, 2017, the GenOn Entities amended the backstop commitment letter to, among other things, remove the requirement to conduct a rights offering. The Backstop Fee was considered earned by the Backstop Parties and was paid on June 13, 2017. This payment is effectively a discount (a reduction of the proceeds to be received by GenOn from the noteholders) and is reported in other non-current assets on GenOn’s consolidated balance sheet as of September 30, 2017. When the financing is in effect, it will be reported as a direct reduction from the carrying amount of the debt and amortized over the five-year term as interest expense. The Backstop Fee is reflected as financing costs in the statement of cash flows. Accounting for Reorganization As a result of the Chapter 11 Cases, realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. The consolidated financial statements for GenOn and GenOn Americas Generation were prepared in accordance with Accounting Standards Codification (ASC) 852, Reorganizations, for debtors-in-possession. Based on the events leading up to the Chapter 11 Cases, including the most recent PJM auction results, the Registrants considered whether it was necessary to impair any of their long-lived assets and concluded that no impairment had occurred as of September 30, 2017. Liabilities Subject to Compromise GenOn's and GenOn Americas Generation's condensed consolidated balance sheets as of September 30, 2017 include amounts classified as liabilities subject to compromise which include prepetition liabilities that were allowed or that are estimated would be allowed as claims in its Chapter 11 proceedings. If there is uncertainty about whether a claim will be impaired under the Plan, the entire amount of the claim is included in liabilities subject to compromise. The following table summarizes the components of liabilities subject to compromise included on the condensed consolidated balance sheets of GenOn and GenOn Americas Generation:
Interest Expense GenOn and GenOn Americas Generation will not pay interest expense during bankruptcy and it is not expected to be an allowable claim. Therefore, GenOn and GenOn Americas Generation did not record interest on the GenOn Senior Notes or the GenOn Americas Generation Senior Notes in the amount of $49 million and $18 million, respectively, for the period from June 14, 2017 through September 30, 2017. Reorganization Items Reorganization items represent costs and income directly associated with the Chapter 11 proceedings. The below table represents the significant items in reorganization items for GenOn and GenOn Americas Generation:
During the nine months ended September 30, 2017, $32 million of cash payments were made by GenOn for reorganization items. Debtors' Financial Information (GenOn and GenOn Americas Generation) The financial information below represents the Debtor Entities condensed combined financial statements for the three months ended September 30, 2017 and the period from June 14, 2017 through September 30, 2017. The following represent the entities included in the GenOn Entities, or the GenOn Energy, Inc. Debtors:
1 Represent the GenOn Americas Generation debtor entities, or the GenOn Americas Generation Debtors.
The condensed combined comprehensive income for GenOn Energy, Inc. Debtors and the GenOn Americas Generation Debtors is equal to the condensed combined net income for the three months ended September 30, 2017 and the period from June 14, 2017 through September 30, 2017.
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Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Policies) |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Chapter 11 Cases | Chapter 11 Cases As further described in Note 3, Chapter 11 Cases, on June 14, 2017, GenOn, along with GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries, or collectively the GenOn Entities, filed voluntary petitions for relief under Chapter 11, or the Chapter 11 Cases, of the United States Bankruptcy Code, or the Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division, or the Bankruptcy Court. GenOn Mid-Atlantic, as well as its consolidated subsidiaries, REMA and certain other subsidiaries, did not file for relief under Chapter 11. The GenOn Entities remain in possession of their property and continue their business operations in the ordinary course uninterrupted as "debtors-in-possession" under jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. The consolidated financial statements for GenOn and GenOn Americas Generation were prepared in accordance with Accounting Standards Codification (ASC) 852, Reorganizations, for debtors-in-possession. |
Liquidity and Ability to Continue as a Going Concern | Liquidity and Ability to Continue as a Going Concern As described above and in Note 3, Chapter 11 Cases, the GenOn Entities have submitted the Plan in connection with the Chapter 11 Cases. There is no assurance that such Plan will be approved by the requisite stakeholders, confirmed by the Bankruptcy Court, or successfully implemented thereafter. GenOn's and GenOn Americas Generation’s ability to continue as a going concern is dependent on many factors, including the successful confirmation of the Plan and emergence from bankruptcy. Given the uncertainty as to the outcome of these factors, there is substantial doubt about GenOn's and GenOn Americas Generation's ability to continue as a going concern. The accompanying unaudited interim condensed consolidated financial statements have been prepared assuming GenOn will continue as a going concern, which contemplates continuity of operations, realization of assets and the satisfaction of liabilities in the normal course of business. As such, the accompanying unaudited interim condensed consolidated financial statements do not include any adjustments relating to the recoverability and classification of assets and their carrying amounts, or the amount and classification of liabilities that may result should GenOn be unable to continue as a going concern. Such adjustments could have a material adverse impact on GenOn's results of operations, cash flows and financial position. With respect to GenOn Mid-Atlantic, a consolidated subsidiary of GenOn, management has determined that while it has sufficient cash on hand to fund current obligations including operating lease payments due under the GenOn Mid-Atlantic operating leases as of September 30, 2017, the potential significant adverse impact of financial stresses at GenOn Mid-Atlantic's parent companies and any adverse impact resulting from the notification by GenOn Mid-Atlantic's owner lessors alleging the existence of certain lease events of default as further described in Note 8, Debt and Capital Leases, has caused there to be substantial doubt about GenOn Mid-Atlantic's ability to continue as a going concern. |
Basis of Presentation | Basis of Presentation This is a combined quarterly report of the Registrants for the quarter ended September 30, 2017. The notes to the condensed consolidated financial statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the financial statements in the Registrants' 2016 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Registrants' consolidated financial positions as of September 30, 2017, and the results of operations, comprehensive income/(loss) and cash flows for the three and nine months ended September 30, 2017 and 2016. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Reclassifications | Reclassifications Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Recent Accounting Developments - Guidance Adopted in 2017 and Guidance Not Yet Adopted (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) | Recent Accounting Developments — Guidance Adopted in 2017 (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) ASU 2016-18 — In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230), Restricted Cash, or ASU No. 2016-18. The amendments of ASU No. 2016-18 require an entity to include amounts generally described as restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling the beginning of period and end of period total amounts on the statement of cash flows. For GenOn and GenOn Americas Generation, this includes amounts classified as funds deposited by counterparties. The amendments of ASU No. 2016-18 are effective for annual reporting periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted and the adoption of ASU No. 2016-18 will be applied retrospectively. GenOn and GenOn Americas Generation adopted the guidance in ASU No. 2016-18 during the second quarter of 2017. In connection with the adoption of the standard, the Registrants have applied the guidance retrospectively which resulted in a decrease of the cash flows provided by operating activities of $41 million for the nine months ended September 30, 2016 for GenOn and GenOn Americas Generation. The adoption of ASU No. 2016-18 did not have an impact to GenOn Mid-Atlantic's statement of cash flows. Recent Accounting Developments — Guidance Not Yet Adopted (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) ASU 2017-12 — In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815), Targeted Improvements to Accounting for Hedging Activities, or ASU No. 2017-12. The amendments of ASU No. 2017-12 were issued to simplify the application of hedge accounting guidance and more closely align financial reporting for hedging relationships with economic results of an entity's risk management activities. The issues addressed by ASU No. 2017-12 include but are not limited to alignment of risk management activities and financial reporting, risk component hedging, accounting for the hedged item in fair value hedges of interest rate risk, recognition and presentation of the effects of hedging instruments, amounts excluded from the assessment of hedge effectiveness, and other simplifications of hedge accounting guidance. The amendments of ASU No. 2017-12 are effective for fiscal years beginning after December 15, 2018, and interim periods therein. Early adoption is permitted in any interim period and the effect of the adoption should be reflected as of the beginning of the fiscal year of adoption. The Registrants do not expect the adoption of ASU No. 2017-12 will have a material impact on their consolidated results of operations, cash flows, and statement of financial position. ASU 2017-07 — In March 2017, the FASB issued ASU No. 2017-07, Compensation — Retirement Benefits (Topic 715), Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, or ASU No. 2017-07. Current GAAP does not indicate where the amount of net benefit cost should be presented in an entity’s income statement and does not require entities to disclose the amount of net benefit cost that is included in the income statement. The amendments of ASU No. 2017-07 require an entity to report the service cost component of net benefit costs in the same line item as other compensation costs arising from services rendered by the related employees during the applicable service period. The other components of net benefit cost are required to be presented separately from the service cost component and outside the subtotal of income from operations. Further, ASU No. 2017-07 prescribes that only the service cost component of net benefit costs is eligible for capitalization. The amendments of ASU No. 2017-07 are effective for fiscal years beginning after December 15, 2017, including interim periods therein. Early adoption is permitted and must be applied on a retrospective basis, except for the amendments regarding the capitalization of the service cost component, which must be applied prospectively. GenOn is currently assessing the impact that the adoption of ASU No. 2017-07 will have on its results of operations, cash flows, and statement of financial position. ASU 2016-02 — In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), or Topic 842, with the objective to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and to improve financial reporting by expanding the related disclosures. The guidance in Topic 842 provides that a lessee that may have previously accounted for a lease as an operating lease under current GAAP should recognize the assets and liabilities that arise from a lease on the balance sheet. In addition, Topic 842 expands the required quantitative and qualitative disclosures with regards to lease arrangements. The Registrants expect to adopt the standard effective January 1, 2019 utilizing the required modified retrospective approach for the earliest period presented. The Registrants expect to elect certain of the practical expedients permitted, including the expedient that permits the Registrants to retain its existing lease assessment and classification. The Registrants are currently working through an adoption plan which includes the evaluation of lease contracts compared to the new standard. While the Registrants are currently evaluating the impact the new guidance will have on their financial position and results of operations, the Registrants expect to recognize lease liabilities and right of use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending the Registrants' review of its existing lease contracts and service contracts which may contain embedded leases. While this review is still in process, the Registrants believe the adoption of Topic 842 will have a material impact on their financial statements. ASU 2014-09 — In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), or Topic 606, which was further amended through various updates issued by the FASB thereafter. The amendments of Topic 606 completed the joint effort between the FASB and the IASB, to develop a common revenue standard for GAAP and IFRS, and to improve financial reporting. The guidance under Topic 606 provides that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services provided and establishes a five step model to be applied by an entity in evaluating its contracts with customers. The Registrants expect to adopt the standard effective January 1, 2018 and apply the guidance retrospectively to contracts at the date of adoption. The Registrants will recognize the cumulative effect of applying Topic 606 at the date of initial application, as prescribed under the modified retrospective transition method. The Registrants also expect to elect the practical expedient available under Topic 606 for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity. In 2016, the Registrants continued to assess the new standard with a focus on identifying the performance obligations included within its revenue arrangements with customers and evaluating the Registrants' methods of estimating the amount and timing of variable consideration. While the impact remains subject to continued review, the Registrants do not believe the adoption of Topic 606 will have a material impact on their financial statements. |
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated depreciation and accumulated amortization | The following table presents the accumulated depreciation included in property, plant and equipment, net, and accumulated amortization included in intangible assets, net, respectively, for each of the Registrants as of September 30, 2017 and December 31, 2016:
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Chapter 11 Cases (GenOn and GenOn Americas Generation) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of components of liabilities subject to compromise | The following table summarizes the components of liabilities subject to compromise included on the condensed consolidated balance sheets of GenOn and GenOn Americas Generation:
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Schedule of reorganization items | The below table represents the significant items in reorganization items for GenOn and GenOn Americas Generation:
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Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn’s consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017. (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. |
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Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for derivatives that are recognized at fair value in GenOn's consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. (b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. |
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Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions | The following tables quantify the significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions as of September 30, 2017 and December 31, 2016: GenOn
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Schedule of sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2017 and December 31, 2016:
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Schedule of credit reserves for derivative contract assets | The Registrants' credit reserves were as follows:
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Net counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for the Registrants with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market, NPNS and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables.
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GenOn Americas Generation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn Americas Generation The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Americas Generation's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. |
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Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Americas Generation's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. (b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. |
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Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions | GenOn Americas Generation
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GenOn Mid-Atlantic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn Mid-Atlantic The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Mid-Atlantic's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016. |
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Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Mid-Atlantic's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
(a) Consists of derivative assets and liabilities, net. |
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Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions | GenOn Mid-Atlantic
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Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net notional volume buy/(sell) of open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of the Registrants’ open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception, as of September 30, 2017 and December 31, 2016. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
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Fair value within the derivative instrument valuation on the balance sheets | The following tables summarize the fair value within the derivative instrument valuation on the balance sheet: GenOn
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Offsetting of derivatives by counterparty master agreement level and collateral received or paid | The following tables summarize the offsetting of derivatives by counterparty master agreement level and collateral received or paid: GenOn
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Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | The following tables summarize the pre-tax effects of economic hedges. These amounts are included within operating revenues and cost of operations. GenOn
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GenOn Americas Generation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value within the derivative instrument valuation on the balance sheets | GenOn Americas Generation
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Offsetting of derivatives by counterparty master agreement level and collateral received or paid | GenOn Americas Generation
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Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | GenOn Americas Generation
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GenOn Mid-Atlantic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments and Hedging Activities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value within the derivative instrument valuation on the balance sheets | GenOn Mid-Atlantic
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Offsetting of derivatives by counterparty master agreement level and collateral received or paid | GenOn Mid-Atlantic
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Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | GenOn Mid-Atlantic
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Debt and Capital Leases (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of long-term debt and capital leases | Long-term debt and capital leases consisted of the following:
(a) Premiums were written-off at Petition Date in accordance with ASC 852, Reorganizations. (b) Debt financing liabilities associated with the Long Term Service Agreements for the Choctaw and Hunterstown facilities. |
Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit)/provision | GenOn’s income tax expense consisted of the following:
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Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GenOn Americas Generation | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of material related-party transactions with affiliates | The following costs were incurred under these arrangements: GenOn Americas Generation
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GenOn Mid-Atlantic | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transaction | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of material related-party transactions with affiliates | GenOn Mid-Atlantic
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Debtors' Financial Information (GenOn and GenOn Americas Generation) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of debtor entities | The following represent the entities included in the GenOn Entities, or the GenOn Energy, Inc. Debtors:
1 Represent the GenOn Americas Generation debtor entities, or the GenOn Americas Generation Debtors. |
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Debtor condensed combined statement of operations |
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Debtor condensed combined balance sheet |
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Debtor condensed combined statement of cash flows |
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Basis of Presentation (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) - MW |
1 Months Ended | ||
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Jun. 30, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Basis of Presentation | |||
Generation capacity (in MW) | 15,395 | ||
Senior Notes | |||
Basis of Presentation | |||
Percentage aggregate principal amount of borrowings outstanding threshold (greater than) (as percent) | 93.00% | ||
Pittsburg | |||
Basis of Presentation | |||
Generation capacity (in MW) | 1,029 | ||
GenOn Americas Generation, LLC | |||
Basis of Presentation | |||
Generation capacity (in MW) | 6,878 | ||
GenOn Americas Generation, LLC | Senior Notes | |||
Basis of Presentation | |||
Percentage aggregate principal amount of borrowings outstanding threshold (greater than) (as percent) | 93.00% | ||
GenOn Mid-Atlantic, LLC | |||
Basis of Presentation | |||
Generation capacity (in MW) | 4,605 |
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
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Condensed Balance Sheet Statements, Captions [Line Items] | ||
Property, plant and equipment Accumulated depreciation | $ 730 | $ 604 |
Intangible assets Accumulated amortization | 66 | 87 |
GenOn Americas Generation | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Property, plant and equipment Accumulated depreciation | 329 | 275 |
Intangible assets Accumulated amortization | 66 | 87 |
GenOn Mid-Atlantic | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Property, plant and equipment Accumulated depreciation | 284 | 237 |
Intangible assets Accumulated amortization | $ 33 | $ 29 |
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Narrative (Details) (Details) - USD ($) $ in Millions |
9 Months Ended | |
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Sep. 30, 2017 |
Sep. 30, 2016 |
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New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in cash flows provided by operating activities | $ 53 | $ (190) |
GenOn Americas Generation, LLC | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in cash flows provided by operating activities | $ (10) | (153) |
ASU 2016-18 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in cash flows provided by operating activities | 41 | |
ASU 2016-18 | GenOn Americas Generation, LLC | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Decrease in cash flows provided by operating activities | $ 41 |
Chapter 11 Cases (GenOn and GenOn Americas Generation) - Liabilities Subject to Compromise (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Reorganization [Line Items] | ||
Accounts payable and accrued expenses | $ 46 | |
Long-term debt, including current portion | 2,616 | |
Accrued interest | 56 | |
Pension and post-retirement liabilities | 131 | |
Other | 13 | |
Liabilities subject to compromise | 2,862 | $ 0 |
GenOn Americas Generation | ||
Reorganization [Line Items] | ||
Accounts payable and accrued expenses | 9 | |
Long-term debt, including current portion | 695 | 0 |
Accrued interest | 10 | |
Pension and post-retirement liabilities | 0 | |
Other | 7 | |
Liabilities subject to compromise | $ 721 | $ 0 |
Chapter 11 Cases (GenOn and GenOn Americas Generation) - Reorganization Items (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Reorganization [Line Items] | ||||
Legal and other professional advisory fees | $ (29) | $ (55) | ||
Write-off of debt premiums and credit reserves | 0 | 103 | ||
Reorganization items, net | (29) | $ 0 | 48 | $ 0 |
GenOn Americas Generation | ||||
Reorganization [Line Items] | ||||
Legal and other professional advisory fees | 0 | (1) | ||
Write-off of debt premiums and credit reserves | 0 | 43 | ||
Reorganization items, net | $ 0 | $ 0 | $ 42 | $ 0 |
Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Derivative FV (Details) |
Sep. 30, 2017
USD ($)
$ / MWh
|
Dec. 31, 2016
USD ($)
$ / T
$ / MWh
|
---|---|---|
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Contracts valued with prices provided by models and other valuation techniques, percent of derivative assets | 0.00% | |
Contracts valued with prices provided by models and other valuation techniques, percent of derivative liability | 12.00% | |
Credit reserve balance | $ 0 | $ 1,000,000 |
Cash collateral paid | 72,000,000 | |
NRG | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash collateral paid | 25,000,000 | |
Commodity contracts | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 56,000,000 | 124,000,000 |
Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 0 | 2,000,000 |
Derivative liabilities | 5,000,000 | 3,000,000 |
Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 1,000,000 | |
Derivative liabilities | $ 0 | |
Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 29 | |
Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 59 | |
Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 43 | |
Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | $ 0 | |
Derivative liabilities | $ 1,000,000 | |
Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 42 | |
Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 51 | |
Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 45 | |
FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 0 | $ 1,000,000 |
Derivative liabilities | $ 5,000,000 | $ 2,000,000 |
FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | (3) | (2) |
FTRs | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 1 | 3 |
FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 0 | 0 |
GenOn Americas Generation | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Contracts valued with prices provided by models and other valuation techniques, percent of derivative assets | 5.00% | |
Contracts valued with prices provided by models and other valuation techniques, percent of derivative liability | 6.00% | |
Credit reserve balance | $ 0 | $ 1,000,000 |
Cash collateral paid | 70,000,000 | |
GenOn Americas Generation | NRG | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Cash collateral paid | 25,000,000 | |
GenOn Americas Generation | Commodity contracts | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 94,000,000 | 214,000,000 |
GenOn Americas Generation | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 5,000,000 | 5,000,000 |
Derivative liabilities | 6,000,000 | 5,000,000 |
GenOn Americas Generation | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 1,000,000 | |
Derivative liabilities | $ 0 | |
GenOn Americas Generation | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 29 | |
GenOn Americas Generation | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 59 | |
GenOn Americas Generation | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 43 | |
GenOn Americas Generation | Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | $ 1,000,000 | |
Derivative liabilities | $ 1,000,000 | |
GenOn Americas Generation | Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 42 | |
GenOn Americas Generation | Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 51 | |
GenOn Americas Generation | Coal Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / T | 45 | |
GenOn Americas Generation | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 5,000,000 | $ 3,000,000 |
Derivative liabilities | $ 6,000,000 | $ 4,000,000 |
GenOn Americas Generation | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | (3) | (2) |
GenOn Americas Generation | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 1 | 3 |
GenOn Americas Generation | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 0 | 0 |
GenOn Mid-Atlantic | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Contracts valued with prices provided by models and other valuation techniques, percent of derivative assets | 0.00% | |
Contracts valued with prices provided by models and other valuation techniques, percent of derivative liability | 7.00% | |
Cash collateral paid | $ 0 | |
Cash collateral received in support of energy risk management activities | 0 | |
GenOn Mid-Atlantic | Commodity contracts | Fair Value, Measurements, Recurring | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 12,000,000 | $ 48,000,000 |
GenOn Mid-Atlantic | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Derivative liabilities | 1,000,000 | 1,000,000 |
GenOn Mid-Atlantic | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 0 | 1,000,000 |
Derivative liabilities | 0 | $ 0 |
GenOn Mid-Atlantic | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 29 | |
GenOn Mid-Atlantic | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 59 | |
GenOn Mid-Atlantic | Power Contracts | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Forward market price | $ / MWh | 43 | |
GenOn Mid-Atlantic | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative assets | 0 | $ 0 |
Derivative liabilities | $ 1,000,000 | $ 1,000,000 |
GenOn Mid-Atlantic | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Low | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 0 | 0 |
GenOn Mid-Atlantic | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | High | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 1 | 1 |
GenOn Mid-Atlantic | FTRs | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average | Level 3 | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Auction prices | $ / MWh | 0 | 0 |
Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Credit Risk (Details) |
9 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
| ||||||
Concentration of credit risk | ||||||
Counterparty credit exposure | $ 47,000,000 | |||||
Collateral held (cash and letters of credit) against counterparty credit exposure | 0 | |||||
Counterparty credit exposure, net | $ 47,000,000 | |||||
Counterparty credit exposure before collateral expected to roll off by the end of 2014 (as a percent) | 94.00% | |||||
Net exposure (as a percent) | 100.00% | [1],[2] | ||||
Counterparty credit risk exposure percentage (more than) | 10.00% | |||||
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 41,000,000 | |||||
Investment grade | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 96.00% | [1],[2] | ||||
Non-Investment grade/Non-rated | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 4.00% | [1],[2] | ||||
Utilities, energy merchants, marketers and other | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 100.00% | [1],[2] | ||||
GenOn Americas Generation | ||||||
Concentration of credit risk | ||||||
Counterparty credit exposure | $ 47,000,000 | |||||
Collateral held (cash and letters of credit) against counterparty credit exposure | 0 | |||||
Counterparty credit exposure, net | $ 47,000,000 | |||||
Counterparty credit exposure before collateral expected to roll off by the end of 2014 (as a percent) | 94.00% | |||||
Net exposure (as a percent) | 100.00% | [1],[2] | ||||
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 41,000,000 | |||||
GenOn Americas Generation | Investment grade | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 96.00% | [1],[2] | ||||
GenOn Americas Generation | Non-Investment grade/Non-rated | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 4.00% | [1],[2] | ||||
GenOn Americas Generation | Utilities, energy merchants, marketers and other | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 100.00% | [1],[2] | ||||
GenOn Mid-Atlantic | ||||||
Concentration of credit risk | ||||||
Counterparty credit exposure | $ 0 | |||||
Net exposure (as a percent) | 0.00% | [1],[2] | ||||
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 0 | |||||
GenOn Mid-Atlantic | Investment grade | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 0.00% | [1],[2] | ||||
GenOn Mid-Atlantic | Non-Investment grade/Non-rated | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 0.00% | [1],[2] | ||||
GenOn Mid-Atlantic | Utilities, energy merchants, marketers and other | ||||||
Concentration of credit risk | ||||||
Net exposure (as a percent) | 0.00% | [1],[2] | ||||
|
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Underlying Derivative (Details) T in Millions, MWh in Millions, MMBTU in Millions |
9 Months Ended | 12 Months Ended |
---|---|---|
Sep. 30, 2017
MWh
MMBTU
T
|
Dec. 31, 2016
MWh
MMBTU
T
|
|
Long | Coal | Short Ton | ||
Derivative | ||
Total Volume, mass | T | 2 | 5 |
Long | Coal | Short Ton | GenOn Americas Generation | ||
Derivative | ||
Total Volume, mass | T | 1 | 4 |
Long | Coal | Short Ton | GenOn Mid-Atlantic | ||
Derivative | ||
Total Volume, mass | T | 1 | 4 |
Long | Natural Gas | MMBtu | ||
Derivative | ||
Net notional volume, buy (sell) | MMBTU | 72 | 138 |
Long | Natural Gas | MMBtu | GenOn Americas Generation | ||
Derivative | ||
Net notional volume, buy (sell) | MMBTU | 13 | 30 |
Long | Natural Gas | MMBtu | GenOn Mid-Atlantic | ||
Derivative | ||
Net notional volume, buy (sell) | MMBTU | 13 | 23 |
Short | Power | MWh | ||
Derivative | ||
Net notional volume, buy (sell) | MWh | 12 | 35 |
Short | Power | MWh | GenOn Americas Generation | ||
Derivative | ||
Net notional volume, buy (sell) | MWh | 3 | 12 |
Short | Power | MWh | GenOn Mid-Atlantic | ||
Derivative | ||
Net notional volume, buy (sell) | MWh | 3 | 11 |
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - FV of Derivatives (Details) - Derivatives Not Designated as Cash Flow Hedges - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative | ||
Derivative assets | $ 56 | $ 124 |
Derivative liabilities | 41 | 122 |
GenOn Americas Generation | ||
Derivative | ||
Derivative assets | 94 | 214 |
Derivative liabilities | 94 | 217 |
GenOn Mid-Atlantic | ||
Derivative | ||
Derivative assets | 12 | 48 |
Derivative liabilities | 14 | 46 |
Commodity contracts current | ||
Derivative | ||
Derivative assets | 39 | 108 |
Derivative liabilities | 35 | 105 |
Commodity contracts current | GenOn Americas Generation | ||
Derivative | ||
Derivative assets | 69 | 180 |
Derivative liabilities | 71 | 185 |
Commodity contracts current | GenOn Mid-Atlantic | ||
Derivative | ||
Derivative assets | 10 | 44 |
Derivative liabilities | 14 | 44 |
Commodity contracts long-term | ||
Derivative | ||
Derivative assets | 17 | 16 |
Derivative liabilities | 6 | 17 |
Commodity contracts long-term | GenOn Americas Generation | ||
Derivative | ||
Derivative assets | 25 | 34 |
Derivative liabilities | 23 | 32 |
Commodity contracts long-term | GenOn Mid-Atlantic | ||
Derivative | ||
Derivative assets | 2 | 4 |
Derivative liabilities | $ 0 | $ 2 |
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Offsetting Derivatives (Details) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Derivative liabilities | ||
Cash Collateral (Held) / Posted | $ 72,000,000 | |
Commodity contracts | ||
Total derivative instruments | ||
Gross Amounts of Recognized Assets / Liabilities | 15,000,000 | $ 2,000,000 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (4,000,000) | (13,000,000) |
Net Amount | 19,000,000 | 15,000,000 |
GenOn Americas Generation | ||
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 70,000,000 | |
GenOn Americas Generation | Commodity contracts | ||
Total derivative instruments | ||
Gross Amounts of Recognized Assets / Liabilities | 0 | (3,000,000) |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (4,000,000) | (13,000,000) |
Net Amount | 4,000,000 | 10,000,000 |
GenOn Mid-Atlantic | ||
Derivative assets | ||
Cash Collateral (Held) / Posted | 0 | |
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 0 | |
GenOn Mid-Atlantic | Commodity contracts | ||
Total derivative instruments | ||
Gross Amounts of Recognized Assets / Liabilities | (2,000,000) | 2,000,000 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | (2,000,000) | 2,000,000 |
Non-affiliated Entity | ||
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 47,000,000 | 53,000,000 |
Non-affiliated Entity | Commodity contracts | ||
Derivative assets | ||
Gross Amounts of Recognized Assets / Liabilities | 45,000,000 | 70,000,000 |
Derivative Instruments | (15,000,000) | (39,000,000) |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 30,000,000 | 31,000,000 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets / Liabilities | (28,000,000) | (56,000,000) |
Derivative Instruments | 15,000,000 | 39,000,000 |
Cash Collateral (Held) / Posted | 2,000,000 | 1,000,000 |
Net Amount | (11,000,000) | (16,000,000) |
Non-affiliated Entity | GenOn Americas Generation | ||
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 45,000,000 | 51,000,000 |
Non-affiliated Entity | GenOn Americas Generation | Commodity contracts | ||
Derivative assets | ||
Gross Amounts of Recognized Assets / Liabilities | 45,000,000 | 70,000,000 |
Derivative Instruments | (15,000,000) | (39,000,000) |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 30,000,000 | 31,000,000 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets / Liabilities | (28,000,000) | (56,000,000) |
Derivative Instruments | 15,000,000 | 39,000,000 |
Cash Collateral (Held) / Posted | 2,000,000 | 1,000,000 |
Net Amount | (11,000,000) | (16,000,000) |
Affiliated Entity | ||
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 25,000,000 | 79,000,000 |
Affiliated Entity | Commodity contracts | ||
Derivative assets | ||
Gross Amounts of Recognized Assets / Liabilities | 11,000,000 | 54,000,000 |
Derivative Instruments | (11,000,000) | (54,000,000) |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 0 | 0 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets / Liabilities | (13,000,000) | (66,000,000) |
Derivative Instruments | 11,000,000 | 54,000,000 |
Cash Collateral (Held) / Posted | 2,000,000 | 12,000,000 |
Net Amount | 0 | 0 |
Affiliated Entity | GenOn Americas Generation | ||
Derivative liabilities | ||
Cash Collateral (Held) / Posted | 25,000,000 | 79,000,000 |
Affiliated Entity | GenOn Americas Generation | Commodity contracts | ||
Derivative assets | ||
Gross Amounts of Recognized Assets / Liabilities | 49,000,000 | 144,000,000 |
Derivative Instruments | (49,000,000) | (144,000,000) |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 0 | 0 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets / Liabilities | (66,000,000) | (161,000,000) |
Derivative Instruments | 49,000,000 | 144,000,000 |
Cash Collateral (Held) / Posted | 2,000,000 | 12,000,000 |
Net Amount | (15,000,000) | (5,000,000) |
Affiliated Entity | GenOn Mid-Atlantic | Commodity contracts | ||
Derivative assets | ||
Gross Amounts of Recognized Assets / Liabilities | 12,000,000 | 48,000,000 |
Derivative Instruments | (12,000,000) | (46,000,000) |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | 0 | 2,000,000 |
Derivative liabilities | ||
Gross Amounts of Recognized Assets / Liabilities | (14,000,000) | (46,000,000) |
Derivative Instruments | 12,000,000 | 46,000,000 |
Cash Collateral (Held) / Posted | 0 | 0 |
Net Amount | $ (2,000,000) | $ 0 |
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Mark to Market (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Jul. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Unrealized mark-to-market results | |||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | $ 9,000,000 | $ (29,000,000) | $ 7,000,000 | $ (145,000,000) | |||
Net unrealized (losses)/gains on open positions related to economic hedges | (28,000,000) | (68,000,000) | 9,000,000 | (43,000,000) | |||
Total impact to statements of operations | (19,000,000) | (97,000,000) | 16,000,000 | (188,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (19,000,000) | (97,000,000) | 16,000,000 | (188,000,000) | |||
Exchange clearing account, initial collateral posted | $ 20,000,000 | ||||||
Credit Risk Related Contingent Features | |||||||
Collateral required for contracts with adequate assurance clauses in net liability positions | 1,000,000 | 1,000,000 | |||||
Collateral required for contracts with credit rating contingent features in net liability position | 0 | 0 | |||||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 0 | 0 | |||||
GenOn Americas Generation | |||||||
Unrealized mark-to-market results | |||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | 11,000,000 | (46,000,000) | 2,000,000 | (165,000,000) | |||
Net unrealized (losses)/gains on open positions related to economic hedges | (13,000,000) | 6,000,000 | 6,000,000 | (23,000,000) | |||
Total impact to statements of operations | (2,000,000) | (40,000,000) | 8,000,000 | (188,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (2,000,000) | (40,000,000) | 8,000,000 | (188,000,000) | |||
Credit Risk Related Contingent Features | |||||||
Collateral required for contracts with adequate assurance clauses in net liability positions | 1,000,000 | 1,000,000 | |||||
Collateral required for contracts with credit rating contingent features in net liability position | 0 | 0 | |||||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 0 | 0 | |||||
GenOn Mid-Atlantic | |||||||
Unrealized mark-to-market results | |||||||
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges | 7,000,000 | (47,000,000) | (3,000,000) | (146,000,000) | |||
Net unrealized (losses)/gains on open positions related to economic hedges | (12,000,000) | 4,000,000 | 1,000,000 | (18,000,000) | |||
Total impact to statements of operations | (5,000,000) | (43,000,000) | (2,000,000) | (164,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (5,000,000) | (43,000,000) | (2,000,000) | (164,000,000) | |||
Revenue from operations — energy commodities | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | (23,000,000) | (142,000,000) | 7,000,000 | (233,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (23,000,000) | (142,000,000) | 7,000,000 | (233,000,000) | |||
Revenue from operations — energy commodities | GenOn Americas Generation | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | (6,000,000) | (75,000,000) | (1,000,000) | (228,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (6,000,000) | (75,000,000) | (1,000,000) | (228,000,000) | |||
Revenue from operations — energy commodities | GenOn Mid-Atlantic | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | (10,000,000) | (83,000,000) | (2,000,000) | (203,000,000) | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | (10,000,000) | (83,000,000) | (2,000,000) | (203,000,000) | |||
Cost of operations | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | 4,000,000 | 45,000,000 | 9,000,000 | 45,000,000 | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | 4,000,000 | 45,000,000 | 9,000,000 | 45,000,000 | |||
Cost of operations | GenOn Americas Generation | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | 4,000,000 | 35,000,000 | 9,000,000 | 40,000,000 | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | 4,000,000 | 35,000,000 | 9,000,000 | 40,000,000 | |||
Cost of operations | GenOn Mid-Atlantic | |||||||
Unrealized mark-to-market results | |||||||
Total impact to statements of operations | 5,000,000 | 40,000,000 | 0 | 39,000,000 | |||
Impact of derivative instruments to statement of operations | |||||||
Total impact to statements of operations | $ 5,000,000 | 40,000,000 | $ 0 | $ 39,000,000 | |||
Realized Gain | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | $ 5,000,000 | 98,000,000 | $ 38,000,000 | ||||
Realized Gain | GenOn Americas Generation | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 5,000,000 | 50,000,000 | 35,000,000 | ||||
Realized Gain | GenOn Mid-Atlantic | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 5,000,000 | 50,000,000 | 35,000,000 | ||||
Realized Gain | 2016 | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 82,000,000 | 18,000,000 | |||||
Realized Gain | 2016 | GenOn Americas Generation | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 16,000,000 | ||||||
Realized Gain | 2016 | GenOn Mid-Atlantic | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 16,000,000 | ||||||
Realized Gain | 2017 | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 4,000,000 | 13,000,000 | 19,000,000 | ||||
Realized Gain | 2017 | GenOn Americas Generation | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 4,000,000 | 46,000,000 | 19,000,000 | ||||
Realized Gain | 2017 | GenOn Mid-Atlantic | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 4,000,000 | 46,000,000 | 19,000,000 | ||||
Realized Gain | 2018 | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 1,000,000 | 3,000,000 | $ 1,000,000 | ||||
Realized Gain | 2018 | GenOn Americas Generation | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | 1,000,000 | 4,000,000 | |||||
Realized Gain | 2018 | GenOn Mid-Atlantic | |||||||
Impact of derivative instruments to statement of operations | |||||||
Amount realized | $ 1,000,000 | $ 4,000,000 |
Impairments (GenOn) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Property, Plant and Equipment [Line Items] | |||||
Impairment losses | $ 0 | $ 0 | $ 0 | $ 59 | |
Mandalay operating unit | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment losses | $ 16 | ||||
Ormond Beach operating unit | |||||
Property, Plant and Equipment [Line Items] | |||||
Impairment losses | $ 43 |
Debt and Capital Leases (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) (Details) - USD ($) |
9 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 27, 2017 |
Jul. 14, 2017 |
Jun. 28, 2017 |
May 05, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Jun. 30, 2017 |
Feb. 28, 2017 |
Jan. 27, 2017 |
Dec. 31, 2016 |
Dec. 13, 2016 |
||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 2,000,000 | $ 2,754,000,000 | ||||||||||||||
Less: Liabilities subject to compromise | (2,616,000,000) | |||||||||||||||
Less: current maturities | 1,000,000 | 704,000,000 | ||||||||||||||
Total long-term debt and capital leases | 1,000,000 | 2,050,000,000 | ||||||||||||||
Line of credit payment | 130,000,000 | $ 0 | ||||||||||||||
Prepaid rent — non-current | 352,000,000 | 245,000,000 | ||||||||||||||
Line of Credit | Letter of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | $ 300,000,000 | |||||||||||||||
Percent of letters of credit provided required to be cash collateralized (as percent) | 101.00% | |||||||||||||||
Letters of credit | 6,000,000 | |||||||||||||||
Intercompany Credit Agreement | NRG Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Maximum borrowing capacity | 500,000,000 | |||||||||||||||
Intercompany Credit Agreement | Letter of Credit | NRG Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit | 103,000,000 | 272,000,000 | ||||||||||||||
GenOn Americas Generation | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | 0 | 745,000,000 | ||||||||||||||
Premiums | [1] | 0 | 50,000,000 | |||||||||||||
Less: Liabilities subject to compromise | (695,000,000) | 0 | ||||||||||||||
Total long-term debt and capital leases | 0 | 745,000,000 | ||||||||||||||
Line of credit payment | 130,000,000 | 0 | ||||||||||||||
Payment for intercompany revolver | 125,000,000 | 0 | ||||||||||||||
Prepaid rent — non-current | 278,000,000 | 204,000,000 | ||||||||||||||
GenOn Americas Generation | Senior Notes | GenOn Americas Generation Senior Notes, due 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 366,000,000 | 366,000,000 | ||||||||||||||
Interest rate (as percent) | 8.50% | 8.50% | ||||||||||||||
GenOn Americas Generation | Senior Notes | GenOn Americas Generation Senior Notes, due 2031 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 329,000,000 | 329,000,000 | ||||||||||||||
Interest rate (as percent) | 9.125% | 9.125% | ||||||||||||||
GenOn Americas Generation | Intercompany Credit Agreement | Letter of Credit | NRG Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit | $ 21,000,000 | 199,000,000 | ||||||||||||||
GenOn Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | 2,000,000 | 2,009,000,000 | ||||||||||||||
Premiums | [1] | 0 | 81,000,000 | |||||||||||||
Less: Liabilities subject to compromise | (1,921,000,000) | 0 | ||||||||||||||
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2017 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 691,000,000 | 691,000,000 | ||||||||||||||
Interest rate (as percent) | 7.875% | 7.875% | ||||||||||||||
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 649,000,000 | 649,000,000 | ||||||||||||||
Interest rate (as percent) | 9.50% | 9.50% | ||||||||||||||
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | $ 490,000,000 | 490,000,000 | ||||||||||||||
Interest rate (as percent) | 9.875% | 9.875% | ||||||||||||||
GenOn Energy | Other liabilities | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | [2] | $ 91,000,000 | 96,000,000 | |||||||||||||
GenOn Energy | GenOn capital lease | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt and capital leases | 2,000,000 | 2,000,000 | ||||||||||||||
GenOn Mid-Atlantic | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Line of credit payment | 130,000,000 | 0 | ||||||||||||||
Fees | $ 1,000,000 | |||||||||||||||
Payment for intercompany revolver | 125,000,000 | $ 0 | ||||||||||||||
Prepaid rent — non-current | 280,000,000 | 204,000,000 | ||||||||||||||
GenOn Mid-Atlantic | Intercompany Credit Agreement | Subsequent event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Written notice period for termination of letters of credit | 60 days | |||||||||||||||
Period prior to termination date of letters of credit to provide alternative qualifying credit support | 30 days | |||||||||||||||
GenOn Mid-Atlantic | Intercompany Credit Agreement | Letter of Credit | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Payment for intercompany revolver | $ 125,000,000 | |||||||||||||||
Payment to owner lessors | $ 2,700,000 | |||||||||||||||
Prepaid rent — non-current | $ 125,000,000 | |||||||||||||||
GenOn Mid-Atlantic | Intercompany Credit Agreement | Letter of Credit | NRG Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Letters of credit | $ 1,000,000 | $ 128,000,000 | ||||||||||||||
Amount of borrowings | $ 125,000,000 | |||||||||||||||
GenOn Mid-Atlantic | Intercompany Credit Agreement | Letter of Credit | GenOn Energy | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Payment for intercompany revolver | $ 125,000,000 | |||||||||||||||
|
Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Income tax provision | ||||
Income before income taxes | $ 72,000,000 | $ 284,000,000 | $ 49,000,000 | $ 268,000,000 |
Income tax expense | $ 0 | $ 21,000,000 | $ 7,000,000 | $ 20,000,000 |
Effective tax rate | 0.00% | 7.40% | 14.30% | 7.50% |
Statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% |
GenOn Americas Generation | ||||
Income tax provision | ||||
Income before income taxes | $ 32,000,000 | $ 132,000,000 | $ 48,000,000 | $ 149,000,000 |
Income tax expense | 0 | 0 | 0 | 0 |
GenOn Americas Generation | Pro Forma | ||||
Income tax provision | ||||
Income tax expense | 0 | 0 | 0 | 0 |
GenOn Mid-Atlantic | ||||
Income tax provision | ||||
Income before income taxes | (6,000,000) | 51,000,000 | (33,000,000) | 57,000,000 |
Income tax expense | 0 | 0 | 0 | 0 |
GenOn Mid-Atlantic | Pro Forma | ||||
Income tax provision | ||||
Income tax expense | $ 0 | $ 23,000,000 | $ 0 | $ 25,000,000 |
Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Narrative (Details) |
3 Months Ended | 4 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|---|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Sep. 30, 2017
USD ($)
extension
|
Sep. 30, 2017
USD ($)
|
Sep. 30, 2016
USD ($)
|
Jun. 30, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
|
Related Party Transaction | |||||||
Net exposure under agreements | $ 47,000,000 | $ 47,000,000 | $ 47,000,000 | ||||
NRG | |||||||
Related Party Transaction | |||||||
Transition services, annualized rate | $ 84,000,000 | ||||||
Transition services, period of services provided at no charge if settlement is approved | 2 months | ||||||
Transition services, number of optional extensions for services if settlement is approved | extension | 2 | ||||||
Transition services, Period of optional extensions for services if settlement is approved | 1 month | ||||||
NRG | Senior Secured First Lien Notes, due 2022 | |||||||
Related Party Transaction | |||||||
Credit against amount owed under shared services agreement upon emergence from bankruptcy | 28,000,000 | $ 28,000,000 | 28,000,000 | ||||
GenOn Americas Generation | |||||||
Related Party Transaction | |||||||
Net exposure under agreements | 47,000,000 | 47,000,000 | 47,000,000 | ||||
NRG | |||||||
Related Party Transaction | |||||||
Annual fees under Services Agreement | 193,000,000 | ||||||
Net exposure under agreements | 0 | 0 | 0 | ||||
NRG | Intercompany Credit Agreement | |||||||
Related Party Transaction | |||||||
Maximum borrowing capacity | 500,000,000 | 500,000,000 | 500,000,000 | ||||
NRG | Letter of Credit | Intercompany Credit Agreement | |||||||
Related Party Transaction | |||||||
Letters of credit | 103,000,000 | 103,000,000 | 103,000,000 | $ 272,000,000 | |||
NRG | Letter of Credit | Restructuring Support Agreement, Letter of Credit Credit Facility | |||||||
Related Party Transaction | |||||||
Maximum borrowing capacity | 330,000,000 | $ 330,000,000 | 330,000,000 | ||||
Percent of letters of credit provided required to be cash collateralized (as percent) | 103.00% | ||||||
NRG | Restructuring Support Agreement, Credit Against Amounts Owed Prior to Petition Date Under Services Agreement | |||||||
Related Party Transaction | |||||||
Receivable from related party | 28,000,000 | $ 28,000,000 | 28,000,000 | $ 28,000,000 | |||
NRG | GenOn Americas Generation | Letter of Credit | Intercompany Credit Agreement | |||||||
Related Party Transaction | |||||||
Letters of credit | 21,000,000 | 21,000,000 | 21,000,000 | 199,000,000 | |||
NRG | GenOn Mid-Atlantic | Letter of Credit | Intercompany Credit Agreement | |||||||
Related Party Transaction | |||||||
Letters of credit | 1,000,000 | 1,000,000 | 1,000,000 | 128,000,000 | |||
Loans outstanding | 125,000,000 | 125,000,000 | 125,000,000 | 0 | |||
Affiliated Entity | |||||||
Related Party Transaction | |||||||
General and administrative | 14,000,000 | $ 46,000,000 | 100,000,000 | $ 139,000,000 | |||
Affiliated Entity | GenOn Americas Generation | |||||||
Related Party Transaction | |||||||
General and administrative | 9,000,000 | 21,000,000 | 53,000,000 | 62,000,000 | |||
Note receivable | 318,000,000 | 318,000,000 | 318,000,000 | 315,000,000 | |||
Affiliated Entity | GenOn Mid-Atlantic | |||||||
Related Party Transaction | |||||||
General and administrative | 4,000,000 | $ 15,000,000 | 42,000,000 | 45,000,000 | |||
GenOn Energy Holdings | GenOn Americas Generation | |||||||
Related Party Transaction | |||||||
Net interest income | 0 | $ 0 | |||||
Accounts receivable - affiliate | 50,000,000 | 50,000,000 | 50,000,000 | 77,000,000 | |||
Accounts payable - affiliate | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 | $ 43,000,000 |
Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) - Schedule of Costs Incurred (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Affiliated Entity | ||||
Related Party Transaction | ||||
General and administrative | $ 14 | $ 46 | $ 100 | $ 139 |
GenOn Americas Generation | Genon | ||||
Related Party Transaction | ||||
Total allocated costs | 9 | 21 | 52 | 64 |
GenOn Americas Generation | Affiliated Entity | ||||
Related Party Transaction | ||||
General and administrative | 9 | 21 | 53 | 62 |
GenOn Americas Generation | Allocated cost of operations | Genon | ||||
Related Party Transaction | ||||
Total allocated costs | 0 | 0 | (1) | 2 |
GenOn Mid-Atlantic | Genon | ||||
Related Party Transaction | ||||
Total allocated costs | 5 | 16 | 44 | 47 |
GenOn Mid-Atlantic | Affiliated Entity | ||||
Related Party Transaction | ||||
General and administrative | 4 | 15 | 42 | 45 |
GenOn Mid-Atlantic | Allocated cost of operations | Genon | ||||
Related Party Transaction | ||||
Total allocated costs | $ 1 | $ 1 | $ 2 | $ 2 |
Commitments and Contingencies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) shares in Thousands |
1 Months Ended | ||||
---|---|---|---|---|---|
Jun. 30, 2013
case
|
Sep. 30, 2017
shares
|
Dec. 13, 2016 |
May 31, 2016
case
|
Jul. 31, 2011
case
|
|
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2017 | |||||
Chapter Eleven Proceedings | |||||
Interest rate (as percent) | 7.875% | 7.875% | |||
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2018 | |||||
Chapter Eleven Proceedings | |||||
Interest rate (as percent) | 9.50% | 9.50% | |||
GenOn Energy | Senior Notes | GenOn Senior Notes, due 2020 | |||||
Chapter Eleven Proceedings | |||||
Interest rate (as percent) | 9.875% | 9.875% | |||
GenOn Americas Generation | Senior Notes | GenOn Americas Generation Senior Notes, due 2021 | |||||
Chapter Eleven Proceedings | |||||
Interest rate (as percent) | 8.50% | 8.50% | |||
GenOn Americas Generation | Senior Notes | GenOn Americas Generation Senior Notes, due 2031 | |||||
Chapter Eleven Proceedings | |||||
Interest rate (as percent) | 9.125% | 9.125% | |||
Natural Gas Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 5 | 5 | |||
Natural Gas Litigation | Nevada | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 4 | ||||
Number of cases ended due to petition for writ of certiorari being denied | 1 | ||||
Natural Gas Litigation | Kansas | |||||
Loss Contingencies [Line Items] | |||||
Number of cases | 1 | ||||
Bankruptcy | Chapter Eleven Proceedings | |||||
Chapter Eleven Proceedings | |||||
GenOn Energy Holdings common stock shares reserved for unresolved claims (in shares) | shares | 461 | ||||
Number of reserved shares for disputed Chapter 11 claims converted into reserved of GenOn common stock (in shares) | shares | 1,300 | ||||
Number of reserved shares for disputed Chapter 11 claims converted into reserved of NRG common stock (in shares) | shares | 159 |
Regulatory Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) $ in Billions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Aug. 01, 2016
USD ($)
|
Sep. 30, 2017
power_plant
|
Dec. 31, 2016
USD ($)
|
|
Regulated Operations [Abstract] | |||
Regulatory payments sought | $ 2.5 | ||
Regulatory payments term | 10 years | ||
Public Utilities, General Disclosures [Line Items] | |||
Out-of-market subsidy payments | $ 7.6 | ||
Out-of-market subsidy payment term | 12 years | ||
Illinois | |||
Public Utilities, General Disclosures [Line Items] | |||
Number of Exelon-owned nuclear power plants awarded ZECs | power_plant | 2 |
Environmental Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Details) |
1 Months Ended | |
---|---|---|
Jul. 28, 2015
state
|
Apr. 30, 2017
petition
|
|
Site Contingency [Line Items] | ||
Number of petitions granted by EPA to reconsider the rule | petition | 2 | |
Sulfur Dioxide Budgets | ||
Site Contingency [Line Items] | ||
Number of states required to revise budgets | 4 | |
Nitrogen Oxides Budget | ||
Site Contingency [Line Items] | ||
Number of states required to revise budgets | 11 |
Debtors' Financial Information (GenOn and GenOn Americas Generation) - Statement of Operations (Details) - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Condensed Financial Statements, Captions [Line Items] | |||||
Total operating revenues | $ 484 | $ 532 | $ 1,231 | $ 1,509 | |
Total operating costs and expenses | 382 | 468 | 1,130 | 1,409 | |
Operating (Loss)/Income | 102 | 326 | 101 | 394 | |
Other Expense | |||||
Total other expense | (1) | (42) | (100) | (126) | |
Income Before Reorganization Items and Income Taxes | 101 | 284 | 1 | 268 | |
Reorganization items, net | (29) | 0 | 48 | 0 | |
(Loss)/Income Before Income Taxes | 72 | 284 | 49 | 268 | |
Income tax expense | 0 | 21 | 7 | 20 | |
Net (Loss)/Income | 72 | $ 263 | $ 42 | $ 248 | |
GenOn Energy, Inc. Debtors | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total operating revenues | 500 | $ 594 | |||
Total operating costs and expenses | 396 | 462 | |||
Operating (Loss)/Income | 104 | 132 | |||
Other Expense | |||||
Total other expense | (3) | (4) | |||
Income Before Reorganization Items and Income Taxes | 101 | 128 | |||
Reorganization items, net | (29) | 74 | |||
(Loss)/Income Before Income Taxes | 72 | 202 | |||
Income tax expense | 0 | 0 | |||
Net (Loss)/Income | 72 | 202 | |||
GenOn Americas Generation Debtors | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Total operating revenues | 446 | 511 | |||
Total operating costs and expenses | 408 | 471 | |||
Operating (Loss)/Income | 38 | 40 | |||
Other Expense | |||||
Total other expense | (5) | (6) | |||
Income Before Reorganization Items and Income Taxes | 33 | 34 | |||
Reorganization items, net | 0 | 43 | |||
(Loss)/Income Before Income Taxes | 33 | 77 | |||
Income tax expense | 0 | 0 | |||
Net (Loss)/Income | $ 33 | $ 77 |
Debtors' Financial Information (GenOn and GenOn Americas Generation) - Balance Sheet (Details) - USD ($) $ in Millions |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
ASSETS | ||
Cash and cash equivalents | $ 810 | $ 1,034 |
Restricted cash | 1 | 0 |
Accounts receivable | 124 | 109 |
Prepaid rent and other current assets | 151 | 128 |
Total current assets | 1,572 | 1,900 |
Property, plant and equipment, net | 2,468 | 2,543 |
Other non-current assets | 136 | 94 |
Total Assets | 4,701 | 4,860 |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accrued expenses and other current liabilities | 128 | 191 |
Total current liabilities | 270 | 1,191 |
Liabilities subject to compromise | 2,862 | 0 |
Long-term debt | 1 | 2,050 |
Other non-current liabilities | 289 | 451 |
Total Liabilities | 4,306 | 4,520 |
Stockholder's equity | 395 | 340 |
Total Liabilities and Stockholder's Equity | 4,701 | 4,860 |
Non-affiliated Entity | ||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 79 | 113 |
Long-term debt | 1 | 2,050 |
Affiliated Entity | ||
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 27 | 78 |
Long-term debt | 125 | $ 0 |
GenOn Energy, Inc. Debtors | ||
ASSETS | ||
Cash and cash equivalents | 568 | |
Restricted cash | 1 | |
Prepaid rent and other current assets | 898 | |
Total current assets | 2,242 | |
Property, plant and equipment, net | 1,235 | |
Investment in subsidiaries | (269) | |
Other non-current assets | 144 | |
Total Assets | 3,896 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accrued expenses and other current liabilities | 134 | |
Total current liabilities | 176 | |
Liabilities subject to compromise | 2,862 | |
Other non-current liabilities | 338 | |
Total Liabilities | 3,501 | |
Stockholder's equity | 395 | |
Total Liabilities and Stockholder's Equity | 3,896 | |
GenOn Energy, Inc. Debtors | Non-affiliated Entity | ||
ASSETS | ||
Accounts receivable | 117 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 42 | |
GenOn Energy, Inc. Debtors | Affiliated Entity | ||
ASSETS | ||
Accounts receivable | 658 | |
Note receivable | 0 | |
Notes receivable | 544 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 0 | |
Long-term debt | 125 | |
GenOn Americas Generation Debtors | ||
ASSETS | ||
Cash and cash equivalents | 0 | |
Restricted cash | 0 | |
Prepaid rent and other current assets | 274 | |
Total current assets | 702 | |
Property, plant and equipment, net | 155 | |
Investment in subsidiaries | 1,117 | |
Other non-current assets | 68 | |
Total Assets | 2,042 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accrued expenses and other current liabilities | 93 | |
Total current liabilities | 139 | |
Liabilities subject to compromise | 721 | |
Other non-current liabilities | 81 | |
Total Liabilities | 941 | |
Stockholder's equity | 1,101 | |
Total Liabilities and Stockholder's Equity | 2,042 | |
GenOn Americas Generation Debtors | Non-affiliated Entity | ||
ASSETS | ||
Accounts receivable | 110 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 20 | |
GenOn Americas Generation Debtors | Affiliated Entity | ||
ASSETS | ||
Accounts receivable | 0 | |
Note receivable | 318 | |
Notes receivable | 0 | |
LIABILITIES AND STOCKHOLDER'S EQUITY | ||
Accounts payable | 26 | |
Long-term debt | $ 0 |
Debtors' Financial Information (GenOn and GenOn Americas Generation) - Statement of Cash Flows (Details) - USD ($) $ in Millions |
4 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2017 |
Sep. 30, 2016 |
|
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | $ (53) | $ 190 | |
Net cash used by investing activities | (69) | 326 | |
Net cash used by financing activities | (101) | (4) | |
Net (Decrease)/Increase in Cash, Cash Equivalents and Funds Deposited by Counterparties | (223) | 512 | |
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at Beginning of Period | 1,034 | 716 | |
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at End of Period | $ 811 | 811 | $ 1,228 |
GenOn Energy, Inc. Debtors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 97 | ||
Net cash used by investing activities | (9) | ||
Net cash used by financing activities | (3) | ||
Net (Decrease)/Increase in Cash, Cash Equivalents and Funds Deposited by Counterparties | 85 | ||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at Beginning of Period | 484 | ||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at End of Period | 569 | 569 | |
GenOn Americas Generation Debtors | |||
Condensed Financial Statements, Captions [Line Items] | |||
Net cash provided by operating activities | 4 | ||
Net cash used by investing activities | (4) | ||
Net cash used by financing activities | 0 | ||
Net (Decrease)/Increase in Cash, Cash Equivalents and Funds Deposited by Counterparties | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at Beginning of Period | 0 | ||
Cash, Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties at End of Period | $ 0 | $ 0 |
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