Skip to content
AnalystLens

NRG Energy Annual Report (Amendment), Year Ended Dec 31, 2005

Filing Date
Filed March 27, 2006
Period End
December 31, 2005
Security
NRG
In the record · 2016–202610-K1110-Q328-K163

NRG filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 163 current reports (8-K) between 2016 and 2026.

  1. Bankruptcy8-K · Dec ’17Dec ’17
  2. Leadership change8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Material agreement8-K · Oct ’25Oct ’25

01—Abstract

Summary

Summary of the 10-K/A filed March 27, 2006. Cited figures are marked; the original filing is the authoritative source.

This Form 10-K/A amends NRG Energy, Inc.'s annual report filed March 7, 2006, to add audited financial statements of two equity investments in unconsolidated affiliates that are significant under Rule 3-09 of Regulation S-X: West Coast Power LLC (Exhibit 99.1) and Mitteldeutsche Braunkohlengesellschaft mbH (Exhibit 99.2).

The amendment is signed March 27, 2006 by CEO David W. Crane, CFO Robert C. Flexon and Controller James J.

Ingoldsby. It contains no new NRG-level financial statements. West Coast Power LLC, a holding company for four California generation entities, reported revenues of $300.58 milliona in 2005, down from $725.63 million in 2004 and $695.96 million in 2003.

Net income was $21.36 millionb in 2005, compared with $305.95 million in 2004. The filing states that Dynegy agreed to sell its 50% interest in the holding company to NRG for approximately $205 million, that FERC approved the acquisition on March 1, 2006, and that the sale is expected to close in early 2006. The auditor's report highlights substantial litigation, including California market manipulation suits and gas index pricing cases, whose outcomes could affect liquidity.

Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG), a lignite mining company in which NRG holds a 50%c interest, reported sales revenue of EUR 291.1 million in 2005, compared with EUR 293.6 million in 2004, and German GAAP net income of EUR 33.8 million. Under US GAAP, the filing shows 2005 net income of EUR 35.1 million and shareholders' equity of EUR 368.2 million.

MIBRAG states that adopting EITF Issue No. 04-6 on January 1, 2006 is expected to produce a significant write-down of capitalized overburden costs and an equivalent reduction in shareholders' equity. The filing also reports sales of EUR 33.2 million in 2005 to Saale Energie GmbH, a subsidiary of NRG.

02—Key points

Key Highlights

  1. Purpose: a Form 10-K/A adding Rule 3-09 audited financial statements of two significant unconsolidated affiliates, West Coast Power LLC and Mitteldeutsche Braunkohlengesellschaft mbH (MIBRAG).
  2. West Coast Power LLC revenues fell to $300.58 million in 2005 from $725.63 million in 2004, and net income was $21.36 million versus $305.95 million.
  3. West Coast Power LLC total assets were $689.81 million at December 31, 2005, with members' equity of $641.40 million.
  4. NRG agreed to acquire Dynegy's 50% interest in West Coast Power's holding company for approximately $205 million; FERC approved the deal on March 1, 2006, with closing expected in early 2006.
  5. West Coast Power's auditor flagged substantial litigation, including California energy market and gas index pricing lawsuits, that could adversely affect liquidity and financial position.
  6. MIBRAG reported 2005 sales revenue of EUR 291.1 million and US GAAP net income of EUR 35.1 million, with shareholders' equity of EUR 368.2 million under US GAAP.
  7. MIBRAG expects EITF 04-6 adoption on January 1, 2006 to cause a significant write-down of capitalized overburden costs and an equivalent reduction in shareholders' equity.

03—Questions

Frequently Asked Questions

  1. Why was this 10-K/A filed?

    The filing states that it amends the annual report filed March 7, 2006 in order to file certain financial statements as exhibits under Rule 3-09 of Regulation S-X. These are audited financial statements of two equity investments in unconsolidated affiliates that are considered significant: West Coast Power LLC and Mitteldeutsche Braunkohlengesellschaft mbH.

  2. How did West Coast Power LLC perform in 2005?

    Revenues were $300.58 million in 2005, compared with $725.63 million in 2004 and $695.96 million in 2003. Net income was $21.36 million in 2005, compared with $305.95 million in 2004 and $233.27 million in 2003. The decline is tied to the expiration of the California Department of Water Resources contract at the end of 2004 and the move to Reliability Must Run arrangements, as described in the filing.

  3. What transaction does the West Coast Power disclosure describe?

    On December 27, 2005, Dynegy agreed to sell its 50% ownership interest in WCP (Generation) Holdings LLC to NRG for approximately $205 million, subject to purchase price adjustments. The filing states that FERC approved the acquisition on March 1, 2006, and that the sale is expected to close in early 2006. After closing, West Coast Power would become an indirect wholly owned subsidiary of NRG.

  4. What accounting change could affect MIBRAG's equity?

    MIBRAG states that it plans to adopt EITF Issue No. 04-6 on January 1, 2006. Based on its deferred stripping costs at December 31, 2005, it estimates that adoption will result in a significant write-down of capitalized overburden costs and an equivalent reduction of total stockholders' equity. The adjustment would be recognized as a cumulative effect adjustment to beginning retained earnings or through retrospective adjustment.

04—Continue

← View all 10-K filings