NRG Energy Splitting Renewable Businesses to Cut Costs, Pay Debt

NRG Energy Splitting Renewable Businesses to Cut Costs, Pay Debt

NRG Energy Inc. is separating its clean-energy businesses in an effort to cut costs and pay down debt.

In an investor presentation Friday, the nation’s largest independent power producer unveiled the “NRG Reset” initiative in which the company forms “GreenCo,” grouping renewable assets NRG Home and NRG Renew with the electric vehicle charging business NRG eVgo.

GreenCo will operate independently from NRG’s conventional generation and retail business beginning Jan. 1, 2016, and at the same time the company plans to limit its financial commitment to $125 million.

NRG says the move will simplify its structure and help with a new company-wide cost reduction program.

Additionally, NRG is selling 75-percent interest in its wind portfolio to NRG Yield Inc. for $210 million and plans to buy back $250 million in shares through 2016.

According to Bloomberg, NRG Energy is the worst-performing utility of the S&P index this year.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...