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March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | ||||||||||||||||||
Debt service | $ | 29 | $ | 7 | $ | 36 | $ | 28 | $ | 8 | $ | 36 | |||||||||||
Construction/major maintenance | 45 | 7 | 52 | 50 | 2 | 52 | |||||||||||||||||
Security/project/insurance | 91 | 1 | 92 | 136 | — | 136 | |||||||||||||||||
Other | 2 | 2 | 4 | 2 | 2 | 4 | |||||||||||||||||
Total | $ | 167 | $ | 17 | $ | 184 | $ | 216 | $ | 12 | $ | 228 |
March 31, 2016 | December 31, 2015 | Depreciable Lives | |||||||
Buildings, machinery and equipment | $ | 16,685 | $ | 16,294 | 3 – 46 Years | ||||
Geothermal properties | 1,327 | 1,319 | 13 – 58 Years | ||||||
Other | 219 | 208 | 3 – 46 Years | ||||||
18,231 | 17,821 | ||||||||
Less: Accumulated depreciation | 5,491 | 5,377 | |||||||
12,740 | 12,444 | ||||||||
Land | 121 | 120 | |||||||
Construction in progress | 546 | 448 | |||||||
Property, plant and equipment, net | $ | 13,407 | $ | 13,012 |
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Ownership Interest as of March 31, 2016 | March 31, 2016 | December 31, 2015 | |||||||
Greenfield LP | 50% | $ | 71 | $ | 65 | ||||
Whitby | 50% | 18 | 14 | ||||||
Total investments in power plants | $ | 89 | $ | 79 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Greenfield LP | $ | (4 | ) | $ | (2 | ) | ||
Whitby | (3 | ) | (3 | ) | ||||
Total | $ | (7 | ) | $ | (5 | ) |
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March 31, 2016 | December 31, 2015 | ||||||
Senior Unsecured Notes | $ | 3,408 | $ | 3,406 | |||
First Lien Term Loans | 3,271 | 3,277 | |||||
First Lien Notes | 1,790 | 1,789 | |||||
Project financing, notes payable and other | 1,665 | 1,715 | |||||
CCFC Term Loans | 1,562 | 1,565 | |||||
Capital lease obligations | 181 | 185 | |||||
Subtotal | 11,877 | 11,937 | |||||
Less: Current maturities | 205 | 221 | |||||
Total long-term debt | $ | 11,672 | $ | 11,716 |
March 31, 2016 | December 31, 2015 | ||||||
2023 Senior Unsecured Notes | $ | 1,235 | $ | 1,235 | |||
2024 Senior Unsecured Notes | 642 | 641 | |||||
2025 Senior Unsecured Notes | 1,531 | 1,530 | |||||
Total Senior Unsecured Notes | $ | 3,408 | $ | 3,406 |
March 31, 2016 | December 31, 2015 | ||||||
2019 First Lien Term Loan | $ | 794 | $ | 795 | |||
2020 First Lien Term Loan | 377 | 378 | |||||
2022 First Lien Term Loan | 1,568 | 1,571 | |||||
2023 First Lien Term Loan | 532 | 533 | |||||
Total First Lien Term Loans | $ | 3,271 | $ | 3,277 |
March 31, 2016 | December 31, 2015 | ||||||
2022 First Lien Notes | $ | 738 | $ | 737 | |||
2023 First Lien Notes | 568 | 568 | |||||
2024 First Lien Notes | 484 | 484 | |||||
Total First Lien Notes | $ | 1,790 | $ | 1,789 |
March 31, 2016 | December 31, 2015 | ||||||
Corporate Revolving Facility(1) | $ | 314 | $ | 316 | |||
CDHI | 262 | 241 | |||||
Various project financing facilities | 178 | 198 | |||||
Total | $ | 754 | $ | 755 |
(1) | The Corporate Revolving Facility represents our primary revolving facility. |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Senior Unsecured Notes | $ | 3,315 | $ | 3,408 | $ | 3,063 | $ | 3,406 | |||||||
First Lien Term Loans | 3,290 | 3,271 | 3,197 | 3,277 | |||||||||||
First Lien Notes | 1,906 | 1,790 | 1,885 | 1,789 | |||||||||||
Project financing, notes payable and other(1) | 1,619 | 1,574 | 1,653 | 1,608 | |||||||||||
CCFC Term Loans | 1,544 | 1,562 | 1,494 | 1,565 | |||||||||||
Total | $ | 11,674 | $ | 11,605 | $ | 11,292 | $ | 11,645 |
(1) | Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP. |
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Assets and Liabilities with Recurring Fair Value Measures as of March 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents(1) | $ | 376 | $ | — | $ | — | $ | 376 | |||||||
Margin deposits | 94 | — | — | 94 | |||||||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,967 | — | — | 1,967 | |||||||||||
Commodity forward contracts(2) | — | 250 | 55 | 305 | |||||||||||
Interest rate swaps | — | 1 | — | 1 | |||||||||||
Total assets | $ | 2,437 | $ | 251 | $ | 55 | $ | 2,743 | |||||||
Liabilities: | |||||||||||||||
Margin deposits posted with us by our counterparties | $ | 22 | $ | — | $ | — | $ | 22 | |||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,874 | — | — | 1,874 | |||||||||||
Commodity forward contracts(2) | — | 468 | 120 | 588 | |||||||||||
Interest rate swaps | — | 98 | — | 98 | |||||||||||
Total liabilities | $ | 1,896 | $ | 566 | $ | 120 | $ | 2,582 |
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents(1) | $ | 1,083 | $ | — | $ | — | $ | 1,083 | |||||||
Margin deposits | 89 | — | — | 89 | |||||||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,736 | — | — | 1,736 | |||||||||||
Commodity forward contracts(2) | — | 220 | 54 | 274 | |||||||||||
Interest rate swaps | — | 1 | — | 1 | |||||||||||
Total assets | $ | 2,908 | $ | 221 | $ | 54 | $ | 3,183 | |||||||
Liabilities: | |||||||||||||||
Margin deposits posted with us by our counterparties | $ | 35 | $ | — | $ | — | $ | 35 | |||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,604 | — | — | 1,604 | |||||||||||
Commodity forward contracts(2) | — | 413 | 100 | 513 | |||||||||||
Interest rate swaps | — | 90 | — | 90 | |||||||||||
Total liabilities | $ | 1,639 | $ | 503 | $ | 100 | $ | 2,242 |
(1) | As of March 31, 2016 and December 31, 2015, we had cash equivalents of $216 million and $880 million included in cash and cash equivalents and $160 million and $203 million included in restricted cash, respectively. |
(2) | Includes OTC swaps and options. |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||
March 31, 2016 | ||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||
(Liability) | Valuation Technique | Input | Range | |||||||
(in millions) | ||||||||||
Power Contracts | $ | (77 | ) | Discounted cash flow | Market price (per MWh) | $4.95 — $100.54/MWh | ||||
Power Congestion Products | $ | 12 | Discounted cash flow | Market price (per MWh) | $(11.33) — $10.38/MWh | |||||
December 31, 2015 | ||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||
(Liability) | Valuation Technique | Input | Range | |||||||
(in millions) | ||||||||||
Power Contracts | $ | (54 | ) | Discounted cash flow | Market price (per MWh) | $6.72 — $83.25/MWh | ||||
Power Congestion Products | $ | 8 | Discounted cash flow | Market price (per MWh) | $(11.47) — $12.19/MWh |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Balance, beginning of period | $ | (46 | ) | $ | 85 | |||
Realized and mark-to-market gains (losses): | ||||||||
Included in net loss: | ||||||||
Included in operating revenues(1) | (22 | ) | 131 | |||||
Included in fuel and purchased energy expense(2) | (14 | ) | 3 | |||||
Purchases and settlements: | ||||||||
Purchases | 2 | 2 | ||||||
Settlements | (4 | ) | (10 | ) | ||||
Transfers in and/or out of level 3(3): | ||||||||
Transfers into level 3(4) | — | (1 | ) | |||||
Transfers out of level 3(5) | 19 | (7 | ) | |||||
Balance, end of period | $ | (65 | ) | $ | 203 | |||
Change in unrealized gains (losses) relating to instruments still held at end of period | $ | (36 | ) | $ | 134 |
(1) | For power contracts and other power-related products, included on our Consolidated Condensed Statements of Operations. |
(2) | For natural gas contracts, swaps and options, included on our Consolidated Condensed Statements of Operations. |
(3) | We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 for each of the three months ended March 31, 2016 and 2015. |
(4) | There were no transfers out of level 2 into level 3 for the three months ended March 31, 2016. We had $1 million in losses transferred out of level 2 into level 3 for the three months ended March 31, 2015. |
(5) | We had $(19) million in losses and $7 million in gains transferred out of level 3 into level 2 for the three months ended March 31, 2016 and 2015, respectively, due to changes in market liquidity in various power markets. |
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Derivative Instruments | Notional Amounts | |||||||
March 31, 2016 | December 31, 2015 | |||||||
Power (MWh) | (49 | ) | (41 | ) | ||||
Natural gas (MMBtu) | 1,065 | 996 | ||||||
Environmental credits (Tonnes) | 17 | 8 | ||||||
Interest rate swaps | $ | 1,308 | $ | 1,320 |
March 31, 2016 | |||||||||||
Commodity Instruments | Interest Rate Swaps | Total Derivative Instruments | |||||||||
Balance Sheet Presentation | |||||||||||
Current derivative assets | $ | 1,853 | $ | — | $ | 1,853 | |||||
Long-term derivative assets | 419 | 1 | 420 | ||||||||
Total derivative assets | $ | 2,272 | $ | 1 | $ | 2,273 | |||||
Current derivative liabilities | $ | 1,938 | $ | 37 | $ | 1,975 | |||||
Long-term derivative liabilities | 524 | 61 | 585 | ||||||||
Total derivative liabilities | $ | 2,462 | $ | 98 | $ | 2,560 | |||||
Net derivative assets (liabilities) | $ | (190 | ) | $ | (97 | ) | $ | (287 | ) |
December 31, 2015 | |||||||||||
Commodity Instruments | Interest Rate Swaps | Total Derivative Instruments | |||||||||
Balance Sheet Presentation | |||||||||||
Current derivative assets | $ | 1,698 | $ | — | $ | 1,698 | |||||
Long-term derivative assets | 312 | 1 | 313 | ||||||||
Total derivative assets | $ | 2,010 | $ | 1 | $ | 2,011 | |||||
Current derivative liabilities | $ | 1,697 | $ | 37 | $ | 1,734 | |||||
Long-term derivative liabilities | 420 | 53 | 473 | ||||||||
Total derivative liabilities | $ | 2,117 | $ | 90 | $ | 2,207 | |||||
Net derivative assets (liabilities) | $ | (107 | ) | $ | (89 | ) | $ | (196 | ) |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Fair Value of Derivative Assets | Fair Value of Derivative Liabilities | Fair Value of Derivative Assets | Fair Value of Derivative Liabilities | ||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||
Interest rate swaps | $ | 1 | $ | 100 | $ | 1 | $ | 92 | |||||||
Total derivatives designated as cash flow hedging instruments | $ | 1 | $ | 100 | $ | 1 | $ | 92 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity instruments | $ | 2,272 | $ | 2,462 | $ | 2,010 | $ | 2,117 | |||||||
Interest rate swaps | — | (2 | ) | — | (2 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | 2,272 | $ | 2,460 | $ | 2,010 | $ | 2,115 | |||||||
Total derivatives | $ | 2,273 | $ | 2,560 | $ | 2,011 | $ | 2,207 |
March 31, 2016 | ||||||||||||||||
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | ||||||||||||||||
Gross Amounts Presented on our Consolidated Condensed Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||
Derivative assets: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 1,967 | $ | (1,874 | ) | $ | (93 | ) | $ | — | ||||||
Commodity forward contracts | 305 | (230 | ) | (7 | ) | 68 | ||||||||||
Interest rate swaps | 1 | — | — | 1 | ||||||||||||
Total derivative assets | $ | 2,273 | $ | (2,104 | ) | $ | (100 | ) | $ | 69 | ||||||
Derivative (liabilities): | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,874 | ) | $ | 1,874 | $ | — | $ | — | |||||||
Commodity forward contracts | (588 | ) | 230 | 1 | (357 | ) | ||||||||||
Interest rate swaps | (98 | ) | — | — | (98 | ) | ||||||||||
Total derivative (liabilities) | $ | (2,560 | ) | $ | 2,104 | $ | 1 | $ | (455 | ) | ||||||
Net derivative assets (liabilities) | $ | (287 | ) | $ | — | $ | (99 | ) | $ | (386 | ) |
December 31, 2015 | ||||||||||||||||
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | ||||||||||||||||
Gross Amounts Presented on our Consolidated Condensed Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||
Derivative assets: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 1,736 | $ | (1,602 | ) | $ | (134 | ) | $ | — | ||||||
Commodity forward contracts | 274 | (202 | ) | (3 | ) | 69 | ||||||||||
Interest rate swaps | 1 | — | — | 1 | ||||||||||||
Total derivative assets | $ | 2,011 | $ | (1,804 | ) | $ | (137 | ) | $ | 70 | ||||||
Derivative (liabilities): | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,604 | ) | $ | 1,602 | $ | 2 | $ | — | |||||||
Commodity forward contracts | (513 | ) | 202 | 3 | (308 | ) | ||||||||||
Interest rate swaps | (90 | ) | — | — | (90 | ) | ||||||||||
Total derivative (liabilities) | $ | (2,207 | ) | $ | 1,804 | $ | 5 | $ | (398 | ) | ||||||
Net derivative assets (liabilities) | $ | (196 | ) | $ | — | $ | (132 | ) | $ | (328 | ) |
(1) | Negative balances represent margin deposits posted with us by our counterparties related to our derivative activities that are subject to a master netting arrangement. Positive balances reflect margin deposits and natural gas and power prepayments posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 7 for a further discussion of our collateral. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Realized gain (loss)(1)(2) | ||||||||
Commodity derivative instruments | $ | 118 | $ | 59 | ||||
Total realized gain (loss) | $ | 118 | $ | 59 | ||||
Mark-to-market gain (loss)(3) | ||||||||
Commodity derivative instruments | $ | (95 | ) | $ | 70 | |||
Interest rate swaps | 1 | 1 | ||||||
Total mark-to-market gain (loss) | $ | (94 | ) | $ | 71 | |||
Total activity, net | $ | 24 | $ | 130 |
(1) | Does not include the realized value associated with derivative instruments that settle through physical delivery. |
(2) | Includes amortization of acquisition date fair value of derivative activity related to the acquisition of Champion Energy. |
(3) | In addition to changes in market value on derivatives not designated as hedges, changes in mark-to-market gain (loss) also includes hedge ineffectiveness and adjustments to reflect changes in credit default risk exposure. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Realized and mark-to-market gain (loss) | ||||||||
Derivatives contracts included in operating revenues(1) | $ | 204 | $ | 119 | ||||
Derivatives contracts included in fuel and purchased energy expense(1) | (181 | ) | 10 | |||||
Interest rate swaps included in interest expense | 1 | 1 | ||||||
Total activity, net | $ | 24 | $ | 130 |
(1) | Does not include the realized value associated with derivative instruments that settle through physical delivery. |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||
Gain (Loss) Recognized in OCI (Effective Portion) | Gain (Loss) Reclassified from AOCI into Income (Effective Portion)(3) | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | Affected Line Item on the Consolidated Condensed Statements of Operations | |||||||||||||
Interest rate swaps(1)(2) | $ | (12 | ) | $ | (6 | ) | $ | (11 | ) | $ | (12 | ) | Interest expense |
(1) | We did not record any material gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the three months ended March 31, 2016 and 2015. |
(2) | We recorded an income tax expense of nil for each of the three months ended March 31, 2016 and 2015, in AOCI related to our cash flow hedging activities. |
(3) | Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $137 million and $127 million at March 31, 2016 and December 31, 2015, respectively. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $13 million and $11 million at March 31, 2016 and December 31, 2015, respectively. |
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March 31, 2016 | December 31, 2015 | ||||||
Margin deposits(1) | $ | 94 | $ | 89 | |||
Natural gas and power prepayments | 36 | 34 | |||||
Total margin deposits and natural gas and power prepayments with our counterparties(2) | $ | 130 | $ | 123 | |||
Letters of credit issued | $ | 629 | $ | 600 | |||
First priority liens under power and natural gas agreements(3) | 389 | 382 | |||||
First priority liens under interest rate swap agreements | 100 | 92 | |||||
Total letters of credit and first priority liens with our counterparties | $ | 1,118 | $ | 1,074 | |||
Margin deposits posted with us by our counterparties(1)(4) | $ | 22 | $ | 35 | |||
Letters of credit posted with us by our counterparties | 39 | 24 | |||||
Total margin deposits and letters of credit posted with us by our counterparties | $ | 61 | $ | 59 |
(1) | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Condensed Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 6 for further discussion of our derivative instruments subject to master netting arrangements. |
(2) | At March 31, 2016 and December 31, 2015, $116 million and $101 million, respectively, were included in margin deposits and other prepaid expense and $14 million and $22 million, respectively, were included in other assets on our Consolidated Condensed Balance Sheets. |
(3) | Includes $364 million and $345 million related to first priority liens under power supply contracts associated with our retail hedging activities at March 31, 2016 and December 31, 2015, respectively. |
(4) | Included in other current liabilities on our Consolidated Condensed Balance Sheets. |
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Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Income tax expense (benefit) | $ | 35 | $ | (1 | ) | ||
Effective tax rate | (21 | )% | 9 | % |
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Number of Restricted Stock Awards | Weighted Average Grant-Date Fair Value | |||||
Nonvested — December 31, 2015 | 3,528,270 | $ | 19.91 | |||
Granted | 2,836,587 | $ | 12.30 | |||
Forfeited | 64,334 | $ | 16.73 | |||
Vested | 1,214,161 | $ | 19.02 | |||
Nonvested — March 31, 2016 | 5,086,362 | $ | 15.92 |
Number of Performance Share Units | Weighted Average Grant-Date Fair Value | |||||
Nonvested — December 31, 2015 | 517,906 | $ | 23.36 | |||
Granted | 627,957 | $ | 14.81 | |||
Vested(1) | 3,249 | $ | 23.91 | |||
Nonvested — March 31, 2016 | 1,142,614 | $ | 18.66 |
(1) | In accordance with the applicable performance share unit agreements, performance share units granted to employees who meet the retirement eligibility requirements stipulated in the Equity Plan are fully vested upon the later of the date on which the employee becomes eligible to retire or one-year anniversary of the grant date. |
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Three Months Ended March 31, 2016 | |||||||||||||||||||
West | Texas | East | Consolidation and Elimination | Total | |||||||||||||||
Revenues from external customers | $ | 424 | $ | 532 | $ | 659 | $ | — | $ | 1,615 | |||||||||
Intersegment revenues | 2 | 3 | 3 | (8 | ) | — | |||||||||||||
Total operating revenues | $ | 426 | $ | 535 | $ | 662 | $ | (8 | ) | $ | 1,615 | ||||||||
Commodity Margin | $ | 197 | $ | 153 | $ | 230 | $ | — | $ | 580 | |||||||||
Add: Mark-to-market commodity activity, net and other(1) | 46 | (110 | ) | (21 | ) | (6 | ) | (91 | ) | ||||||||||
Less: | |||||||||||||||||||
Plant operating expense | 91 | 86 | 84 | (6 | ) | 255 | |||||||||||||
Depreciation and amortization expense | 69 | 53 | 58 | — | 180 | ||||||||||||||
Sales, general and other administrative expense | 10 | 16 | 12 | — | 38 | ||||||||||||||
Other operating expenses | 8 | 2 | 10 | — | 20 | ||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Income (loss) from operations | 65 | (114 | ) | 52 | — | 3 | |||||||||||||
Interest expense, net of interest income | 156 | ||||||||||||||||||
Other (income) expense, net | 6 | ||||||||||||||||||
Loss before income taxes | $ | (159 | ) |
Three Months Ended March 31, 2015 | |||||||||||||||||||
West | Texas | East | Consolidation and Elimination | Total | |||||||||||||||
Revenues from external customers | $ | 515 | $ | 581 | $ | 550 | $ | — | $ | 1,646 | |||||||||
Intersegment revenues | 2 | 3 | 2 | (7 | ) | — | |||||||||||||
Total operating revenues | $ | 517 | $ | 584 | $ | 552 | $ | (7 | ) | $ | 1,646 | ||||||||
Commodity Margin | $ | 218 | $ | 149 | $ | 168 | $ | — | $ | 535 | |||||||||
Add: Mark-to-market commodity activity, net and other(1) | 119 | 41 | (52 | ) | (7 | ) | 101 | ||||||||||||
Less: | |||||||||||||||||||
Plant operating expense | 106 | 89 | 72 | (7 | ) | 260 | |||||||||||||
Depreciation and amortization expense | 67 | 49 | 42 | — | 158 | ||||||||||||||
Sales, general and other administrative expense | 10 | 17 | 10 | — | 37 | ||||||||||||||
Other operating expenses | 10 | 2 | 8 | — | 20 | ||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (5 | ) | — | (5 | ) | ||||||||||||
Income (loss) from operations | 144 | 33 | (11 | ) | — | 166 | |||||||||||||
Interest expense, net of interest income | 153 | ||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 21 | ||||||||||||||||||
Loss before income taxes | $ | (8 | ) |
(1) | Includes $(22) million and $(24) million of lease levelization and $27 million and $4 million of amortization expense for the three months ended March 31, 2016 and 2015, respectively. |
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March 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | ||||||||||||||||||
Debt service | $ | 29 | $ | 7 | $ | 36 | $ | 28 | $ | 8 | $ | 36 | |||||||||||
Construction/major maintenance | 45 | 7 | 52 | 50 | 2 | 52 | |||||||||||||||||
Security/project/insurance | 91 | 1 | 92 | 136 | — | 136 | |||||||||||||||||
Other | 2 | 2 | 4 | 2 | 2 | 4 | |||||||||||||||||
Total | $ | 167 | $ | 17 | $ | 184 | $ | 216 | $ | 12 | $ | 228 |
March 31, 2016 | December 31, 2015 | Depreciable Lives | |||||||
Buildings, machinery and equipment | $ | 16,685 | $ | 16,294 | 3 – 46 Years | ||||
Geothermal properties | 1,327 | 1,319 | 13 – 58 Years | ||||||
Other | 219 | 208 | 3 – 46 Years | ||||||
18,231 | 17,821 | ||||||||
Less: Accumulated depreciation | 5,491 | 5,377 | |||||||
12,740 | 12,444 | ||||||||
Land | 121 | 120 | |||||||
Construction in progress | 546 | 448 | |||||||
Property, plant and equipment, net | $ | 13,407 | $ | 13,012 |
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Ownership Interest as of March 31, 2016 | March 31, 2016 | December 31, 2015 | |||||||
Greenfield LP | 50% | $ | 71 | $ | 65 | ||||
Whitby | 50% | 18 | 14 | ||||||
Total investments in power plants | $ | 89 | $ | 79 |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Greenfield LP | $ | (4 | ) | $ | (2 | ) | ||
Whitby | (3 | ) | (3 | ) | ||||
Total | $ | (7 | ) | $ | (5 | ) |
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March 31, 2016 | December 31, 2015 | ||||||
Senior Unsecured Notes | $ | 3,408 | $ | 3,406 | |||
First Lien Term Loans | 3,271 | 3,277 | |||||
First Lien Notes | 1,790 | 1,789 | |||||
Project financing, notes payable and other | 1,665 | 1,715 | |||||
CCFC Term Loans | 1,562 | 1,565 | |||||
Capital lease obligations | 181 | 185 | |||||
Subtotal | 11,877 | 11,937 | |||||
Less: Current maturities | 205 | 221 | |||||
Total long-term debt | $ | 11,672 | $ | 11,716 |
March 31, 2016 | December 31, 2015 | ||||||
2023 Senior Unsecured Notes | $ | 1,235 | $ | 1,235 | |||
2024 Senior Unsecured Notes | 642 | 641 | |||||
2025 Senior Unsecured Notes | 1,531 | 1,530 | |||||
Total Senior Unsecured Notes | $ | 3,408 | $ | 3,406 |
March 31, 2016 | December 31, 2015 | ||||||
2019 First Lien Term Loan | $ | 794 | $ | 795 | |||
2020 First Lien Term Loan | 377 | 378 | |||||
2022 First Lien Term Loan | 1,568 | 1,571 | |||||
2023 First Lien Term Loan | 532 | 533 | |||||
Total First Lien Term Loans | $ | 3,271 | $ | 3,277 |
March 31, 2016 | December 31, 2015 | ||||||
2022 First Lien Notes | $ | 738 | $ | 737 | |||
2023 First Lien Notes | 568 | 568 | |||||
2024 First Lien Notes | 484 | 484 | |||||
Total First Lien Notes | $ | 1,790 | $ | 1,789 |
March 31, 2016 | December 31, 2015 | ||||||
Corporate Revolving Facility(1) | $ | 314 | $ | 316 | |||
CDHI | 262 | 241 | |||||
Various project financing facilities | 178 | 198 | |||||
Total | $ | 754 | $ | 755 |
(1) | The Corporate Revolving Facility represents our primary revolving facility. |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Fair Value | Carrying Value | Fair Value | Carrying Value | ||||||||||||
Senior Unsecured Notes | $ | 3,315 | $ | 3,408 | $ | 3,063 | $ | 3,406 | |||||||
First Lien Term Loans | 3,290 | 3,271 | 3,197 | 3,277 | |||||||||||
First Lien Notes | 1,906 | 1,790 | 1,885 | 1,789 | |||||||||||
Project financing, notes payable and other(1) | 1,619 | 1,574 | 1,653 | 1,608 | |||||||||||
CCFC Term Loans | 1,544 | 1,562 | 1,494 | 1,565 | |||||||||||
Total | $ | 11,674 | $ | 11,605 | $ | 11,292 | $ | 11,645 |
(1) | Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP. |
|
Assets and Liabilities with Recurring Fair Value Measures as of March 31, 2016 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents(1) | $ | 376 | $ | — | $ | — | $ | 376 | |||||||
Margin deposits | 94 | — | — | 94 | |||||||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,967 | — | — | 1,967 | |||||||||||
Commodity forward contracts(2) | — | 250 | 55 | 305 | |||||||||||
Interest rate swaps | — | 1 | — | 1 | |||||||||||
Total assets | $ | 2,437 | $ | 251 | $ | 55 | $ | 2,743 | |||||||
Liabilities: | |||||||||||||||
Margin deposits posted with us by our counterparties | $ | 22 | $ | — | $ | — | $ | 22 | |||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,874 | — | — | 1,874 | |||||||||||
Commodity forward contracts(2) | — | 468 | 120 | 588 | |||||||||||
Interest rate swaps | — | 98 | — | 98 | |||||||||||
Total liabilities | $ | 1,896 | $ | 566 | $ | 120 | $ | 2,582 |
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2015 | |||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||
(in millions) | |||||||||||||||
Assets: | |||||||||||||||
Cash equivalents(1) | $ | 1,083 | $ | — | $ | — | $ | 1,083 | |||||||
Margin deposits | 89 | — | — | 89 | |||||||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,736 | — | — | 1,736 | |||||||||||
Commodity forward contracts(2) | — | 220 | 54 | 274 | |||||||||||
Interest rate swaps | — | 1 | — | 1 | |||||||||||
Total assets | $ | 2,908 | $ | 221 | $ | 54 | $ | 3,183 | |||||||
Liabilities: | |||||||||||||||
Margin deposits posted with us by our counterparties | $ | 35 | $ | — | $ | — | $ | 35 | |||||||
Commodity instruments: | |||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,604 | — | — | 1,604 | |||||||||||
Commodity forward contracts(2) | — | 413 | 100 | 513 | |||||||||||
Interest rate swaps | — | 90 | — | 90 | |||||||||||
Total liabilities | $ | 1,639 | $ | 503 | $ | 100 | $ | 2,242 |
(1) | As of March 31, 2016 and December 31, 2015, we had cash equivalents of $216 million and $880 million included in cash and cash equivalents and $160 million and $203 million included in restricted cash, respectively. |
(2) | Includes OTC swaps and options. |
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||
March 31, 2016 | ||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||
(Liability) | Valuation Technique | Input | Range | |||||||
(in millions) | ||||||||||
Power Contracts | $ | (77 | ) | Discounted cash flow | Market price (per MWh) | $4.95 — $100.54/MWh | ||||
Power Congestion Products | $ | 12 | Discounted cash flow | Market price (per MWh) | $(11.33) — $10.38/MWh | |||||
December 31, 2015 | ||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||
(Liability) | Valuation Technique | Input | Range | |||||||
(in millions) | ||||||||||
Power Contracts | $ | (54 | ) | Discounted cash flow | Market price (per MWh) | $6.72 — $83.25/MWh | ||||
Power Congestion Products | $ | 8 | Discounted cash flow | Market price (per MWh) | $(11.47) — $12.19/MWh |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Balance, beginning of period | $ | (46 | ) | $ | 85 | |||
Realized and mark-to-market gains (losses): | ||||||||
Included in net loss: | ||||||||
Included in operating revenues(1) | (22 | ) | 131 | |||||
Included in fuel and purchased energy expense(2) | (14 | ) | 3 | |||||
Purchases and settlements: | ||||||||
Purchases | 2 | 2 | ||||||
Settlements | (4 | ) | (10 | ) | ||||
Transfers in and/or out of level 3(3): | ||||||||
Transfers into level 3(4) | — | (1 | ) | |||||
Transfers out of level 3(5) | 19 | (7 | ) | |||||
Balance, end of period | $ | (65 | ) | $ | 203 | |||
Change in unrealized gains (losses) relating to instruments still held at end of period | $ | (36 | ) | $ | 134 |
(1) | For power contracts and other power-related products, included on our Consolidated Condensed Statements of Operations. |
(2) | For natural gas contracts, swaps and options, included on our Consolidated Condensed Statements of Operations. |
(3) | We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 for each of the three months ended March 31, 2016 and 2015. |
(4) | There were no transfers out of level 2 into level 3 for the three months ended March 31, 2016. We had $1 million in losses transferred out of level 2 into level 3 for the three months ended March 31, 2015. |
(5) | We had $(19) million in losses and $7 million in gains transferred out of level 3 into level 2 for the three months ended March 31, 2016 and 2015, respectively, due to changes in market liquidity in various power markets. |
|
Derivative Instruments | Notional Amounts | |||||||
March 31, 2016 | December 31, 2015 | |||||||
Power (MWh) | (49 | ) | (41 | ) | ||||
Natural gas (MMBtu) | 1,065 | 996 | ||||||
Environmental credits (Tonnes) | 17 | 8 | ||||||
Interest rate swaps | $ | 1,308 | $ | 1,320 |
March 31, 2016 | |||||||||||
Commodity Instruments | Interest Rate Swaps | Total Derivative Instruments | |||||||||
Balance Sheet Presentation | |||||||||||
Current derivative assets | $ | 1,853 | $ | — | $ | 1,853 | |||||
Long-term derivative assets | 419 | 1 | 420 | ||||||||
Total derivative assets | $ | 2,272 | $ | 1 | $ | 2,273 | |||||
Current derivative liabilities | $ | 1,938 | $ | 37 | $ | 1,975 | |||||
Long-term derivative liabilities | 524 | 61 | 585 | ||||||||
Total derivative liabilities | $ | 2,462 | $ | 98 | $ | 2,560 | |||||
Net derivative assets (liabilities) | $ | (190 | ) | $ | (97 | ) | $ | (287 | ) |
December 31, 2015 | |||||||||||
Commodity Instruments | Interest Rate Swaps | Total Derivative Instruments | |||||||||
Balance Sheet Presentation | |||||||||||
Current derivative assets | $ | 1,698 | $ | — | $ | 1,698 | |||||
Long-term derivative assets | 312 | 1 | 313 | ||||||||
Total derivative assets | $ | 2,010 | $ | 1 | $ | 2,011 | |||||
Current derivative liabilities | $ | 1,697 | $ | 37 | $ | 1,734 | |||||
Long-term derivative liabilities | 420 | 53 | 473 | ||||||||
Total derivative liabilities | $ | 2,117 | $ | 90 | $ | 2,207 | |||||
Net derivative assets (liabilities) | $ | (107 | ) | $ | (89 | ) | $ | (196 | ) |
March 31, 2016 | December 31, 2015 | ||||||||||||||
Fair Value of Derivative Assets | Fair Value of Derivative Liabilities | Fair Value of Derivative Assets | Fair Value of Derivative Liabilities | ||||||||||||
Derivatives designated as cash flow hedging instruments: | |||||||||||||||
Interest rate swaps | $ | 1 | $ | 100 | $ | 1 | $ | 92 | |||||||
Total derivatives designated as cash flow hedging instruments | $ | 1 | $ | 100 | $ | 1 | $ | 92 | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity instruments | $ | 2,272 | $ | 2,462 | $ | 2,010 | $ | 2,117 | |||||||
Interest rate swaps | — | (2 | ) | — | (2 | ) | |||||||||
Total derivatives not designated as hedging instruments | $ | 2,272 | $ | 2,460 | $ | 2,010 | $ | 2,115 | |||||||
Total derivatives | $ | 2,273 | $ | 2,560 | $ | 2,011 | $ | 2,207 |
March 31, 2016 | ||||||||||||||||
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | ||||||||||||||||
Gross Amounts Presented on our Consolidated Condensed Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||
Derivative assets: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 1,967 | $ | (1,874 | ) | $ | (93 | ) | $ | — | ||||||
Commodity forward contracts | 305 | (230 | ) | (7 | ) | 68 | ||||||||||
Interest rate swaps | 1 | — | — | 1 | ||||||||||||
Total derivative assets | $ | 2,273 | $ | (2,104 | ) | $ | (100 | ) | $ | 69 | ||||||
Derivative (liabilities): | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,874 | ) | $ | 1,874 | $ | — | $ | — | |||||||
Commodity forward contracts | (588 | ) | 230 | 1 | (357 | ) | ||||||||||
Interest rate swaps | (98 | ) | — | — | (98 | ) | ||||||||||
Total derivative (liabilities) | $ | (2,560 | ) | $ | 2,104 | $ | 1 | $ | (455 | ) | ||||||
Net derivative assets (liabilities) | $ | (287 | ) | $ | — | $ | (99 | ) | $ | (386 | ) |
December 31, 2015 | ||||||||||||||||
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | ||||||||||||||||
Gross Amounts Presented on our Consolidated Condensed Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||
Derivative assets: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 1,736 | $ | (1,602 | ) | $ | (134 | ) | $ | — | ||||||
Commodity forward contracts | 274 | (202 | ) | (3 | ) | 69 | ||||||||||
Interest rate swaps | 1 | — | — | 1 | ||||||||||||
Total derivative assets | $ | 2,011 | $ | (1,804 | ) | $ | (137 | ) | $ | 70 | ||||||
Derivative (liabilities): | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,604 | ) | $ | 1,602 | $ | 2 | $ | — | |||||||
Commodity forward contracts | (513 | ) | 202 | 3 | (308 | ) | ||||||||||
Interest rate swaps | (90 | ) | — | — | (90 | ) | ||||||||||
Total derivative (liabilities) | $ | (2,207 | ) | $ | 1,804 | $ | 5 | $ | (398 | ) | ||||||
Net derivative assets (liabilities) | $ | (196 | ) | $ | — | $ | (132 | ) | $ | (328 | ) |
(1) | Negative balances represent margin deposits posted with us by our counterparties related to our derivative activities that are subject to a master netting arrangement. Positive balances reflect margin deposits and natural gas and power prepayments posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 7 for a further discussion of our collateral. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Realized gain (loss)(1)(2) | ||||||||
Commodity derivative instruments | $ | 118 | $ | 59 | ||||
Total realized gain (loss) | $ | 118 | $ | 59 | ||||
Mark-to-market gain (loss)(3) | ||||||||
Commodity derivative instruments | $ | (95 | ) | $ | 70 | |||
Interest rate swaps | 1 | 1 | ||||||
Total mark-to-market gain (loss) | $ | (94 | ) | $ | 71 | |||
Total activity, net | $ | 24 | $ | 130 |
(1) | Does not include the realized value associated with derivative instruments that settle through physical delivery. |
(2) | Includes amortization of acquisition date fair value of derivative activity related to the acquisition of Champion Energy. |
(3) | In addition to changes in market value on derivatives not designated as hedges, changes in mark-to-market gain (loss) also includes hedge ineffectiveness and adjustments to reflect changes in credit default risk exposure. |
Three Months Ended March 31, | ||||||||
2016 | 2015 | |||||||
Realized and mark-to-market gain (loss) | ||||||||
Derivatives contracts included in operating revenues(1) | $ | 204 | $ | 119 | ||||
Derivatives contracts included in fuel and purchased energy expense(1) | (181 | ) | 10 | |||||
Interest rate swaps included in interest expense | 1 | 1 | ||||||
Total activity, net | $ | 24 | $ | 130 |
(1) | Does not include the realized value associated with derivative instruments that settle through physical delivery. |
Three Months Ended March 31, | Three Months Ended March 31, | ||||||||||||||||
Gain (Loss) Recognized in OCI (Effective Portion) | Gain (Loss) Reclassified from AOCI into Income (Effective Portion)(3) | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | Affected Line Item on the Consolidated Condensed Statements of Operations | |||||||||||||
Interest rate swaps(1)(2) | $ | (12 | ) | $ | (6 | ) | $ | (11 | ) | $ | (12 | ) | Interest expense |
(1) | We did not record any material gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the three months ended March 31, 2016 and 2015. |
(2) | We recorded an income tax expense of nil for each of the three months ended March 31, 2016 and 2015, in AOCI related to our cash flow hedging activities. |
(3) | Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $137 million and $127 million at March 31, 2016 and December 31, 2015, respectively. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $13 million and $11 million at March 31, 2016 and December 31, 2015, respectively. |
|
March 31, 2016 | December 31, 2015 | ||||||
Margin deposits(1) | $ | 94 | $ | 89 | |||
Natural gas and power prepayments | 36 | 34 | |||||
Total margin deposits and natural gas and power prepayments with our counterparties(2) | $ | 130 | $ | 123 | |||
Letters of credit issued | $ | 629 | $ | 600 | |||
First priority liens under power and natural gas agreements(3) | 389 | 382 | |||||
First priority liens under interest rate swap agreements | 100 | 92 | |||||
Total letters of credit and first priority liens with our counterparties | $ | 1,118 | $ | 1,074 | |||
Margin deposits posted with us by our counterparties(1)(4) | $ | 22 | $ | 35 | |||
Letters of credit posted with us by our counterparties | 39 | 24 | |||||
Total margin deposits and letters of credit posted with us by our counterparties | $ | 61 | $ | 59 |
(1) | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Condensed Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 6 for further discussion of our derivative instruments subject to master netting arrangements. |
(2) | At March 31, 2016 and December 31, 2015, $116 million and $101 million, respectively, were included in margin deposits and other prepaid expense and $14 million and $22 million, respectively, were included in other assets on our Consolidated Condensed Balance Sheets. |
(3) | Includes $364 million and $345 million related to first priority liens under power supply contracts associated with our retail hedging activities at March 31, 2016 and December 31, 2015, respectively. |
(4) | Included in other current liabilities on our Consolidated Condensed Balance Sheets. |
|
Three Months Ended March 31, | |||||||
2016 | 2015 | ||||||
Income tax expense (benefit) | $ | 35 | $ | (1 | ) | ||
Effective tax rate | (21 | )% | 9 | % |
|
Number of Restricted Stock Awards | Weighted Average Grant-Date Fair Value | |||||
Nonvested — December 31, 2015 | 3,528,270 | $ | 19.91 | |||
Granted | 2,836,587 | $ | 12.30 | |||
Forfeited | 64,334 | $ | 16.73 | |||
Vested | 1,214,161 | $ | 19.02 | |||
Nonvested — March 31, 2016 | 5,086,362 | $ | 15.92 |
Number of Performance Share Units | Weighted Average Grant-Date Fair Value | |||||
Nonvested — December 31, 2015 | 517,906 | $ | 23.36 | |||
Granted | 627,957 | $ | 14.81 | |||
Vested(1) | 3,249 | $ | 23.91 | |||
Nonvested — March 31, 2016 | 1,142,614 | $ | 18.66 |
(1) | In accordance with the applicable performance share unit agreements, performance share units granted to employees who meet the retirement eligibility requirements stipulated in the Equity Plan are fully vested upon the later of the date on which the employee becomes eligible to retire or one-year anniversary of the grant date. |
|
Three Months Ended March 31, 2016 | |||||||||||||||||||
West | Texas | East | Consolidation and Elimination | Total | |||||||||||||||
Revenues from external customers | $ | 424 | $ | 532 | $ | 659 | $ | — | $ | 1,615 | |||||||||
Intersegment revenues | 2 | 3 | 3 | (8 | ) | — | |||||||||||||
Total operating revenues | $ | 426 | $ | 535 | $ | 662 | $ | (8 | ) | $ | 1,615 | ||||||||
Commodity Margin | $ | 197 | $ | 153 | $ | 230 | $ | — | $ | 580 | |||||||||
Add: Mark-to-market commodity activity, net and other(1) | 46 | (110 | ) | (21 | ) | (6 | ) | (91 | ) | ||||||||||
Less: | |||||||||||||||||||
Plant operating expense | 91 | 86 | 84 | (6 | ) | 255 | |||||||||||||
Depreciation and amortization expense | 69 | 53 | 58 | — | 180 | ||||||||||||||
Sales, general and other administrative expense | 10 | 16 | 12 | — | 38 | ||||||||||||||
Other operating expenses | 8 | 2 | 10 | — | 20 | ||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (7 | ) | — | (7 | ) | ||||||||||||
Income (loss) from operations | 65 | (114 | ) | 52 | — | 3 | |||||||||||||
Interest expense, net of interest income | 156 | ||||||||||||||||||
Other (income) expense, net | 6 | ||||||||||||||||||
Loss before income taxes | $ | (159 | ) |
Three Months Ended March 31, 2015 | |||||||||||||||||||
West | Texas | East | Consolidation and Elimination | Total | |||||||||||||||
Revenues from external customers | $ | 515 | $ | 581 | $ | 550 | $ | — | $ | 1,646 | |||||||||
Intersegment revenues | 2 | 3 | 2 | (7 | ) | — | |||||||||||||
Total operating revenues | $ | 517 | $ | 584 | $ | 552 | $ | (7 | ) | $ | 1,646 | ||||||||
Commodity Margin | $ | 218 | $ | 149 | $ | 168 | $ | — | $ | 535 | |||||||||
Add: Mark-to-market commodity activity, net and other(1) | 119 | 41 | (52 | ) | (7 | ) | 101 | ||||||||||||
Less: | |||||||||||||||||||
Plant operating expense | 106 | 89 | 72 | (7 | ) | 260 | |||||||||||||
Depreciation and amortization expense | 67 | 49 | 42 | — | 158 | ||||||||||||||
Sales, general and other administrative expense | 10 | 17 | 10 | — | 37 | ||||||||||||||
Other operating expenses | 10 | 2 | 8 | — | 20 | ||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (5 | ) | — | (5 | ) | ||||||||||||
Income (loss) from operations | 144 | 33 | (11 | ) | — | 166 | |||||||||||||
Interest expense, net of interest income | 153 | ||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 21 | ||||||||||||||||||
Loss before income taxes | $ | (8 | ) |
(1) | Includes $(22) million and $(24) million of lease levelization and $27 million and $4 million of amortization expense for the three months ended March 31, 2016 and 2015, respectively. |
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