NRG ENERGY, INC. (NYSE:NRG) Files An 8-K Costs Associated with Exit or Disposal ActivitiesItem 2.05. Costs Associated with Exit or Disposal Activities.
On July12, 2017, NRG Energy, Inc. (the “Company”) announced that the Company had adopted and initiated a three-year, three part improvement plan (the “Transformation Plan”). The Business Review Committee (the “BRC”) of the Board of Directors of the Company (the “Board”) unanimously recommended the Transformation Plan and it received the unanimous support and approval of the Board and management. The Transformation Plan’s components consist of: (i) operations and cost excellence initiatives; (ii) portfolio optimization; and (iii) capital structure and allocation enhancement initiatives.
The Transformation Plan is expected to be fully implemented by the end of 2020 with significant completion by the end of 2018. As a result of the plan, the Company expects to incur one-time costs to achieve of approximately $290 million, of which $115 million is expected to be spent in 2017 and $175 million is expected to be spent in 2018. These one-time costs to achieve are expected to consist primarily of investments in infrastructure (e.g. information technology expenditures supporting process improvements), contract buyouts and renegotiations, and severance and employee benefit costs. The actual timing and costs of the initiatives may differ from the Company’s current expectations and estimates.
Cautionary Note Regarding Forward-Looking Information
Certain of the statements included in this Current Report on Form8-K constitute “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In particular, they include statements relating to future actions and strategies of the Company and its subsidiaries. These forward-looking statements are based on current expectations and projections about future events. Readers are cautioned that forward-looking statements are not guarantees of future operating and financial performance or results and involve substantial risks and uncertainties that cannot be predicted or quantified, and, consequently, the actual performance of the Company and its subsidiaries may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to, factors described from time to time in the Company’s reports filed with the SEC.
About NRG ENERGY, INC. (NYSE:NRG)
NRG Energy, Inc. (NRG) is an integrated power company that produces, sells and delivers energy, and energy products and services in various power markets in the United States. The Company’s segments include NRG Business, which includes power generation, the carbon capture business and energy services; NRG Home, which includes NRG Home Retail, which consists of residential retail services and products, and NRG Home Solar, which includes the installation and leasing of residential solar services; NRG Renew, which includes solar and wind assets, excluding those in the NRG Yield and NRG Home Solar segments; NRG Yield, and corporate activities. NRG Yield includes certain of the Company’s contracted generation assets. Its corporate segment includes Boston Energy Trading and Marketing LLC (BETM), international business and electric vehicle services. It owns and operates approximately 50,000 megawatts of generation, and engages in the trading of wholesale energy, capacity and related products.
