Segment Information

We assess our wholesale business on a regional basis due to the effect on our financial performance of the differing characteristics of these regions, particularly with respect to competition, regulation and other factors affecting supply and demand. During the first quarter of 2018, we altered the composition of our segments to report the results associated with our retail business as a separate segment. This change reflects the manner in which our segment information is presented internally to our chief operating decision maker associated with the strategic utilization of our retail business subsequent to the consummation of the Merger. Thus, beginning in the first quarter of 2018, our geographic reportable segments for our wholesale business are West (including geothermal), Texas and East (including Canada) and we have a separate reportable segment for our retail business. The tables below have been updated to present our segments on this revised basis for all periods. We continue to evaluate the optimal manner in which we assess our performance including our segments and future changes may result in changes to the composition of our segments. Commodity Margin is a key operational measure of profit reviewed by our chief operating decision maker to assess the performance of our segments. The tables below show financial data for our segments (including a reconciliation of our Commodity Margin to income (loss) from operations by segment) for the periods indicated (in millions):



	Three Months Ended March 31, 2018
	Wholesale										Consolidation
	West		Texas			East			Retail		Elimination			Total
Total operating revenues⁽¹⁾	$	480	$	140		$	614		$	938	$	(163	)	$	2,009

Commodity Margin	$	185	$	166		$	184		$	77	$	—		$	612
Add: Mark-to-market commodity activity, net and other⁽²⁾	13		(547		)	40			128		(7		)	(373		)
Less:
Operating and maintenance expense	90		80			71			40		(6		)	275
Depreciation and amortization expense	67		76			45			13		—			201
General and other administrative expense	16		25			15			4		—			60
Other operating expenses	14		16			7			—		—			37
(Income) from unconsolidated subsidiaries	—		—			(6		)	—		—			(6		)
Income (loss) from operations	11		(578		)	92			148		(1		)	(328		)
Interest expense														151
Other (income) expense, net														7
Loss before income taxes														$	(486	)



	Three Months Ended March 31, 2017
	Wholesale										Consolidation
	West		Texas		East			Retail			Elimination			Total
Total operating revenues⁽¹⁾	$	519	$	608	$	416		$	960		$	(222	)	$	2,281

Commodity Margin	$	203	$	125	$	142		$	88		$	—		$	558
Add: Mark-to-market commodity activity, net and other⁽²⁾	80		43		14			(98		)	(8		)	31
Less:
Operating and maintenance expense	91		81		81			36			(7		)	282
Depreciation and amortization expense	87		54		48			17			—			206
General and other administrative expense	12		16		7			5			—			40
Other operating expenses	9		3		9			—			(1		)	20
(Gain) on sale of assets, net	—		—		(27		)	—			—			(27		)
(Income) from unconsolidated subsidiaries	—		—		(4		)	—			—			(4		)
Income (loss) from operations	84		14		42			(68		)	—			72
Interest expense														159
Debt extinguishment costs and other (income) expense, net														26
Loss before income taxes														$	(113	)

_________

(1)

Includes intersegment revenues of $114 million and $61 million in the West, $(67) million and $72 million in Texas, $115 million and $88 million in the East and $1 million and $1 million in Retail for the three months ended March 31, 2018 and 2017, respectively. Intersegment revenues for sales between wholesale and retail operations are executed to manage supply needs for our retail operations from our wholesale fleet or to facilitate margin collateral netting at Calpine Corporation.


(2)	Includes $(16) million and $(22) million of lease levelization and $28 million and $60 million of amortization expense for the three months ended March 31, 2018 and 2017, respectively.