Segment and Significant Customer Information

12 Months Ended

Dec. 31, 2014

Segment and Significant Customer Information [Abstract]

Segment and Significant Customer Information

Segment and Significant Customer Information

We assess our business on a regional basis due to the impact on our financial performance of the differing characteristics of these regions, particularly with respect to competition, regulation and other factors impacting supply and demand. During the third quarter of 2014, we altered the composition of our geographic segments to combine our former North and Southeast segments into one segment which was renamed the East segment. This change reflects the manner in which our geographic information is presented internally to our chief operating decision maker following the sale of six power plants in July 2014 from what was formerly our Southeast segment. Thus, at December 31, 2014, our reportable segments were West (including geothermal), Texas and East (including Canada). We continue to evaluate the optimal manner in which we assess our performance including our segments and future changes may result.

Commodity Margin is a key operational measure reviewed by our chief operating decision maker to assess the performance of our segments. The tables below show our financial data for our segments for the periods indicated (in millions).

	Year Ended December 31, 2014
	West		Texas		East			Consolidation and Elimination			Total
Revenues from external customers	$	2,352	$	3,229	$	2,449		$	—		$	8,030
Intersegment revenues	6		23		47			(76		)	—
Total operating revenues	$	2,358	$	3,252	$	2,496		$	(76	)	$	8,030
Commodity Margin(1)	$	1,050	$	760	$	949		$	—		$	2,759
Add: Mark-to-market commodity activity, net and other(2)	220		142		48			(31		)	379
Less:
Plant operating expense	385		313		302			(31		)	969
Depreciation and amortization expense	245		191		168			(1		)	603
Sales, general and other administrative expense	41		64		39			—			144
Other operating expenses	50		5		32			1			88
Impairment loss	—		—		123			—			123
(Gain) on sale of assets, net	—		—		(753		)	—			(753		)
(Income) from unconsolidated investments in power plants	—		—		(25		)	—			(25		)
Income from operations	549		329		1,111			—			1,989
Interest expense, net of interest income											639
Debt extinguishment costs and other (income) expense, net											367
Income before income taxes											$	983

	Year Ended December 31, 2013
	West			Texas			East			Consolidation and Elimination			Total
Revenues from external customers	$	1,937		$	2,347		$	2,017		$	—		$	6,301
Intersegment revenues	5			(4		)	117			(118		)	—
Total operating revenues	$	1,942		$	2,343		$	2,134		$	(118	)	$	6,301
Commodity Margin(1)	$	1,020		$	632		$	916		$	—		$	2,568
Add: Mark-to-market commodity activity, net and other(2)	(50		)	51			27			(31		)	(3		)
Less:
Plant operating expense	365			269			292			(31		)	895
Depreciation and amortization expense	227			165			203			(2		)	593
Sales, general and other administrative expense	37			56			42			1			136
Other operating expenses	45			3			33			—			81
Impairment loss	16			—			—			—			16
(Income) from unconsolidated investments in power plants	—			—			(30		)	—			(30		)
Income from operations	280			190			403			1			874
Interest expense, net of interest income													690
Debt extinguishment costs and other (income) expense, net													164
Income before income taxes													$	20

	Year Ended December 31, 2012
	West			Texas		East			Consolidation and Elimination			Total
Revenues from external customers	$	1,668		$	1,857	$	1,953		$	—		$	5,478
Intersegment revenues	10			61		38			(109		)	—
Total operating revenues	$	1,678		$	1,918	$	1,991		$	(109	)	$	5,478
Commodity Margin(1)(3)(4)	$	994		$	570	$	974		$	—		$	2,538
Add: Mark-to-market commodity activity, net and other(2)	(93		)	87		(47		)	(31		)	(84		)
Less:
Plant operating expense	368			247		337			(30		)	922
Depreciation and amortization expense	203			142		219			(2		)	562
Sales, general and other administrative expense	36			47		57			—			140
Other operating expenses	42			5		34			(3		)	78
(Gain) on sale of assets, net	—			—		(222		)	—			(222		)
(Income) from unconsolidated investments in power plants	—			—		(28		)	—			(28		)
Income from operations	252			216		530			4			1,002
Interest expense, net of interest income												725
Loss on interest rate derivatives												14
Debt extinguishment costs and other (income) expense, net												45
Loss before income taxes												$	218

__________

(1) Our East segment includes Commodity Margin of $81 million, $152 million and $131 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to the six power plants in our East segment that were sold in July 2014.

(2) Includes $(5) million, $6 million and $1 million of lease levelization and $14 million, $14 million and $14 million of amortization expense for the years ended December 31, 2014, 2013 and 2012, respectively.

(3) Our East segment includes Commodity Margin of $52 million for the year ended December 31, 2012, related to Broad River, which was sold in December 2012.

(4) Our East segment includes Commodity Margin of $73 million for the year ended December 31, 2012, related to Riverside Energy Center, LLC, which was sold in December 2012.

Significant Customers

For the years ended December 31, 2014 and 2012, we had only one significant customer, PJM Settlement, Inc. that individually accounted for more than 10% of our annual consolidated revenues. For the year ended December 31, 2013, we had two significant customers, PJM Settlement, Inc. and PG&E, that individually accounted for more than 10% of our annual consolidated revenues. Our revenues from PJM Settlement, Inc. for the years ended December 31, 2014, 2013 and 2012 were approximately $1.0 billion, $820 million and $713 million respectively, and were attributed to our East segment. Our revenues from PG&E was approximately $694 million for the year ended December 31, 2013, which was attributed to our West segment.