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.