GLOSSARY OF TERMS
When the following terms and abbreviations appear in the text of this report, they have the meanings indicated below:
ARRA
American Recovery and Reinvestment Act of 2009
ASC
The FASB Accounting Standards Codification, which the FASB established as the source of
authoritative U.S. GAAP
ASU
Accounting Standards Updates – updates to the ASC
CfD
Contract for Differences
COD
Commercial operations date
CFTC
U.S. Commodity Future Trading Commission
DGCL
Delaware General Corporation Law
Distributed Solar
Solar power projects, typically less than 20 MW in size, that primarily sell power produced to customers for usage on site, or are interconnected to sell power into the local distribution grid
EPC
Engineering, Procurement and Construction
ERCOT
Electric Reliability Council of Texas, the Independent System Operator and the regional reliability coordinator of the various electricity systems within Texas
EWG
Exempt Wholesale Generator
Exchange Act
The Securities Exchange Act of 1934, as amended
FASB
Financial Accounting Standards Board
FCM
Forward Capacity Market
FERC
Federal Energy Regulatory Commission
FFB
Federal Financing Bank
FPA
Federal Power Act
ISO
Independent System Operator, also referred to as Regional Transmission Organization, or RTO
ISO-NE
ISO New England Inc.
ITC
Investment Tax Credit
JOBS Act
Jumpstart Our Business Startups Act
LIBOR
London Inter-Bank Offered Rate
Marsh Landing
NRG Marsh Landing LLC, formerly GenOn Marsh Landing LLC
MMBtu
Million British Thermal Units
MW
Megawatt
MWh
Saleable megawatt hours, net of internal/parasitic load megawatt-hours
MWt
Megawatts Thermal Equivalent
NEPOOL
New England Power Pool
NERC
North American Electric Reliability Corporation
Net Exposure
Counterparty credit exposure to NRG Yield, Inc. net of collateral
NOLs
Net operating losses
NPNS
Normal Purchase Normal Sale
NRG
NRG Energy, Inc.
NRG Yield
Accounting predecessor, representing the combination of the projects that were acquired by NRG Yield LLC
NRG Yield, Inc.
NRG Yield, Inc., or the Company
NRG Yield LLC
The holding company through which the projects are owned by NRG, the holder of Class B common units, and NRG Yield, Inc., the holder of the Class A common units
NRG Yield Operating LLC
The holder of the project assets that belong to NRG Yield LLC
OCI
Other comprehensive income
OMB
Office of Management and Budget
PPA
Power Purchase Agreement
PUCT
Public Utility Commission of Texas
PURPA
Public Utility Regulatory Policies Act of 1978
QF
Qualifying Facility under PURPA
RPM
Reliability Pricing Model
RPS
Renewable Portfolio Standard
RTO
Renewable Transmission Originator
U.S.
United States of America
U.S. DOE
U.S. Department of Energy
U.S. GAAP
Accounting principles generally accepted in the United States
Utility Scale Solar
Solar power projects, typically 20 MW or greater in size (on an alternating current, or AC, basis), that are interconnected into the transmission or distribution grid to sell power at a wholesale level
VaR
Value at Risk
VIE
Variable Interest Entity
Item 1 — Business
NRG Yield, Inc., or the Company, is a dividend growth-oriented company formed to serve as the primary vehicle through which NRG will own, operate and acquire contracted renewable and conventional generation and thermal infrastructure assets. The Company owns a diversified portfolio of contracted renewable and conventional generation and thermal infrastructure assets in the United States. The contracted generation portfolio includes three natural gas or dual-fired facilities, eight utility-scale solar and wind generation facilities and two portfolios of distributed solar facilities that collectively represent 1,324 net MW. Each of these assets sells substantially all of its output pursuant to long-term, fixed price offtake agreements to credit-worthy counterparties. The average remaining contract life, weighted by MWs, of these offtake agreements was approximately 16 years as of December 31, 2013. The Company also owns thermal infrastructure assets with an aggregate steam and chilled water capacity of 1,346 net MWt and electric generation capacity of 123 net MW. These thermal infrastructure assets provide steam, hot water and/or chilled water, and in some instances electricity, to commercial businesses, universities, hospitals and governmental units in multiple locations, principally through long-term contracts or pursuant to rates regulated by state utility commissions.
History
The Company was formed by NRG as a Delaware corporation on December 20, 2012. On July 22, 2013, the Company closed the initial public offering of 22,511,250 shares of its Class A common stock at an offering price of $22.00 per share. In connection with the offering, the Company’s shares of Class A common stock began trading on the New York Stock Exchange under the symbol “NYLD”. The proceeds to the Company from the offering, before deducting underwriting discounts, were approximately $468 million of which the Company used approximately $395 million to purchase 19,011,250 NRG Yield LLC Class A common units from NRG.
The Company is the sole managing member of NRG Yield LLC and operates and controls all of the business and affairs and consolidates the financial results of NRG Yield LLC and its subsidiaries. NRG Yield LLC is a holding company for the companies that directly and indirectly own and operate NRG Yield, Inc.'s business.