NRG: It’s complicated
NRG Energy (NRG) provides services and products through a plethora of subsidiaries under four key operating segments:
- NRG Business
- NRG Home
- NRG Renew
- NRG Yield
NRG Business is the company’s business-to-business arm, which mainly provides wholesale services such as plant operations management, commercial operations, engineering and construction services, and wholesale power.
NRG’s Business segment had over 45 gigawatts of power generation assets (coal, oil, natural gas, and nuclear) under operations as of June 30, 2015. The segment contributed 58.5% to total revenues (before intersegmental eliminations) during 1H15.
NRG Home provides services and products to households. The segment is further divided into NRG Home Retail and NRG Home Solar. NRG Home Retail provides retail power, home energy, and related services to retail customers. The retail segment has ~2.8 million customers in ten states.
NRG Home Solar provides distributed solar energy services to households. NRG Home segment accounted for 33.3% of NRG’s total revenues in 1H15.
NRG Renew develops and operates renewable energy plants, and provides a host of other services to large energy customers including corporates, schools, utilities (XLU), and municipalities. This segment accounted for just 3.2% of the company’s gross revenues.
As discussed in the previous part, the company plans to package NRG Home Solar, NRG Renew, and NRG EVgo into a separate entity, GreenCo, to focus on conventional operations.
We will talk more about NRG Yield (NYLD) in the next part of this series.