YEAR IN REVIEW YEAR 2014

POWER TO BE FREESM A YEAR OF PEOPLE, CHOICE AND A NEW TYPE OF CONSUMER

NRG Energy 211 Carnegie Center 1201 Fannin Street Princeton, NJ Houston, TX 08540-6213 77002-6929

t: 609.524.4500 t: 713.537.3000 f: 609.524.4501 nrg.com

BROTHERS IN ARMS KINDRED SPIRITS BOOTS ON THE ROOF A story of triumph during How shared values Owning the home the coldest days in America lead to valuable revenue from the top down

POWER TO BE FREE | 1 WHERE WE DO BUSINESS SAFETY

APPROXIMATELY ALL50 STATES 10,000 80% FULL-TIME EMPLOYEES +D.C. OF OUR FACILITIES WITHOUT INCIDENT

OUR COMPETITIVE EDGE 11 FACILITIES MORE THAN WITH VPP STAR RATING 50% CUSTOMER SERVICE OF HOME SOLAR CUSTOMERS IN ELIGIBLE NORTHEAST STATES ALSO PURCHASE AN 22% ENERGY SUBSCRIPTION AHEAD OF INDUSTRY AVERAGE EXPANDING CUSTOMER REACH PUBLIC POWER NRG eVgo DC FAST AND L2 20% CHARGERS HAVE POWERED ALMOST OF RESIDENTIAL CUSTOMERS $15.9B IN TEXAS TOTAL REVENUES 9M BUY >1 PRODUCT ELECTRIC MILES

NRG HOME RETAIL SUSTAINABILITY GOALS DIVIDEND GROWTH RD NEARLY 50% CONSECUTIVE 3M CARBON EMISSIONS RECURRING YEAR CUSTOMERS REDUCTION BY 2030 OF DIVIDEND INCREASE 3 .56 ANNUAL 90% DIVIDEND CARBON EMISSIONS PER COMMON SHARE COMPANY REDUCTION BY 2050 GLOBAL GIVING COMMUNITY-MINDED

13,580 ND VOLUNTEER HOURS YEAR IN A ROW 5X BY INCREASE 2 IN WIND CAPACITY HONORED 2,629 BY CIVIC 50 SINCE 2013 EMPLOYEES

IN

OVER 37+D.C. STATES 10% IN COMPETITIVE#1 GENERATION INCREASE CAPACITY IN THE U.S. IN GENERATION CAPACITY #3 SINCE 2013 IN RENEWABLE GENERATION CAPACITY IN THE U.S. ~150 ASSETS IN AS OF DEC 31, 2014 24 STATES

TOTAL GENERATION CAPACITY BY FUEL TYPE - NORTH 8% AMERICA PORTFOLIO* 2% 48% OUR GENERATION 11% CAPACITY CAN SUPPORT NEARLY NRG eVgo *

CUSTOMER ACQUISITION 53,478 Gas UP OVER MEGAWATTS Coal ⅓OF THE Oil U.S. 31% Nuclear 2,000% POPULATION Renewables *Before non-controlling interest

EXPAND ENHANCE GO OUR RETAIL GENERATION GREEN CULTURE 10 16 14 1 Boots on the Roof Brothers in Arms Sustainable Beauty By the Numbers Owning the home from A story of triumph Driving global change An overview of NRG the top down. during the coldest and looking good doing it. in 2014. days in America. 13 26 2 NRG eVgo NRG and Unilever STRIVE

21 System Power 22 On the Margins The importance of 27 24 fossil fuels in a world Deconstructing Raising Our Voices gone renewable. Convention Partnering with The 30 A conversation about Huffington Post to Boundless sustainability. expand the climate Convenient, reliable, change conversation. affordable power 29 for all. 40 Bridging the Gap Commercial Solar Changing liability to profit. 5 Access Granted 36 32 A letter from our CEO. Kindred Spirits Agents of Change How reflecting a partner’s An innovation lab, an 4 philosophy cements the island and the distributed Company Transformation relationship. energy future. SMART 9 CAPITAL 34 Governance ALLOCATION 44 Wind Generation Investing for Change 20 Safety for All Winning the future of an 35 Welcome to Rutland Safety isn’t just a industry in flux. The energy city company value, it’s a of the future. global commitment. 39 NRG Yield 49 46 Co-Lab 2.0 The Stage is Set Putting clean, sustainable energy on the 50-yard line.

This Annual Report was printed on recycled paper. POWER TO BE FREE | 3 No harsh chemicals were used for films or plates during the printing of this book. NRG’s success lies on the corner of our company structure and business strategy. ACCESS GRANTED EMPOWERING THE NEXT GENERATION

ow 30 years into the information age, people have a seemingly N insatiable desire for ever more information, interpersonal communication and relentless connectivity. According to the Economist, the number of cellphones this year surpassed the total number A letter from our CEO of people on the earth and we are told that the average American picks up their smart phone 1,500 times per week. We watch, as bystanders, as the colossi of the communication industry — Verizon and AT&T — encroach on, and are encroached upon, by Google and the other young giants of the high tech industry. While this battle royale takes shape, the electricity industry idles nearby smug in the knowledge that whoever wins, the devices that are the instruments of their competition all run on electricity.

POWER TO BE FREE | 5 But theirs is a wireless competition. This post-consumer next generation The cord is fading into the past, wants access to those same dooming with it the fixed line phones conveniences of modern life. However, and desktop computers that depended those conveniences have become so on it. Fundamental tools of our existence ubiquitous that owning such things does just a few years ago are now destined not define them and is not a symbol of for museums depicting life in the 20th anything as, for instance, being the first century for the benefit of 21st century on your block to own a color television schoolchildren. was in the mid-60s. Indeed, we believe that the next generation wants to own Yet there is still a cord, as well as a less so they can do more. whole lot of wires leading to a plug and an outlet, in our modern age — the Theirs is an experiential generation and traditional electricity delivery system. Still the best experiences, for many, are had essential to us as the critical “last mile” in on the journey. Modern technology the route to market for our 53,000 gross enables them to do what we could not megawatts of high performing power do — be gone physically and be present generation, and essential to keeping cyberwise simultaneously. We want NRG the lights on for our almost three million to provide the energy that makes that retail customers. But now is not forever experience-driven lifestyle happen. In even though our industry would like to other words, we want not only to be their believe that the wireless revolution of energy provider but also to provide the the 21st century will go on, undisrupted, energy that really matters to them. energized by our aging wire and wooden pole electric distribution system. But it can’t be just any kind of energy, it needs to be clean. Because this next At NRG, we don’t believe we best generation is a purposeful one aware of serve tomorrow’s energy customers the limitations of unabated consumption soley through reliance on Thomas in a finite world. We are seeking, as a first Edison’s system. step, to reach out to the next generation, to make them aware of the possibilities In my generation, people wanted to that they have to put purpose into their own things: homes fitted out with energy consumption and to control their the latest gadgets and appliances, own energy destiny. A few months ago, such as refrigerators, color televisions, I wrote an open letter that appeared in microwave ovens, air conditioners college newspapers, excerpts of which and computers. Things that enhanced are reprinted to the right: life, but importantly for electricity purposes, didn’t move very often, very fast or very far. “We do not inherit the earth from our ancestors. We borrow it from our children.” —Native American proverb

6 | POWER TO BE FREE Dear Students:

You don’t know me but, right now, I am deeply affecting your future. There are 120 million Americans I am the CEO of a Fortune 250 company, NRG Energy, which generates under the age of 30. Thanks again to enough electricity to keep the lights on for roughly 40 million American cellphones, children are becoming not homes. That’s a lot and that’s a good thing. Indeed, all of us at NRG are only energy consumers, but personal energy managers, at an increasingly very proud that what we do enables the interconnected lifestyles that define early age. For NRG, being the first energy the human experience in the 21st century. company seeking to serve this next generation of Americans by giving them But we at NRG are concerned that the predominant fuels we and the other what they want — energy which is not companies in our industry are using — and have used since the time of only safe, affordable and reliable but also sustainable and portable — makes good Thomas Edison — to keep you energized are ultimately exhaustible and, business sense. of even greater and more immediate concern, are having a damaging and But as an energy company, this is not potentially irrevocable impact on the world that you are in the process of an easy generation to persuade. They inheriting from us and ultimately will bequeath to your own children. have heard grand “beyond petroleum” type announcements from our kind Whether it be carbon capture, distributed solar, smart thermostats or before. We need to be committed not electric vehicles, the technology exists now to bring about a clean energy only with our thoughts, but in our deeds. In 2014, I think we showed that kind of economy and a sustainable society. But it is always easier in an established commitment. What you read about in society to perpetuate the status quo than it is to effect change. What we these pages — our plethora of solar need is for you to demand control over your own energy choices so that you and wind projects, the clean microgrid on Necker, the build out of our electric can make the choices that are right for you and your generation. vehicle charging network and, perhaps most of all, the ground breaking on the It should be clear to you by now that the political leaders of my generation world’s largest post-combustion carbon will not act to protect your future interest, so you must. You are not capture project at our WA Parish plant in powerless. You are trend setters, thought leaders, and, importantly for the Texas — is not only who we are but who we intend to be. purpose of this matter, end-use energy consumers. Our capitalist system, which will respond to the consumer demands of any significant portion of Thus, it was only after we gained the public, is particularly responsive to the demands of your generation. You momentum on all of these clean energy initiatives that we announced, in will be here, consuming, for a long time. November 2014, our long term carbon reduction goals of 50% by 2030 and 90% What has made America great has been that every generation of American by 2050, on top of the 40% reduction that leadership has risen to the defining challenge of its era. You are the next we already have achieved over the past decade. Our hope in setting these goals is generation of American leadership. Climate change is your defining that if NRG leads, then other companies challenge. In the natural order of things, it would not yet be your time to engaged in other businesses will join lead. But the clock is ticking on climate change and the world just can’t wait any longer. So you must act.

The time to begin is now.

POWER TO BE FREE | 7 “The next generation

wants to us in leading the way to a clean energy Let us let them dream of doing these economy and a sustainable future. It is great things by enabling an unplugged not too late for my generation to get the world built on carbon free energy, own less ball rolling. removing from their futures the shadow of climate change. Because the other thing about this next so they can generation of Americans is that they are The Power to be Free. not just “21st Century end use energy do more.” consumers.” To us, they are also our children. Yours. Mine. Children of the nearly ten thousand men and women who work at NRG. David Crane Chief Executive Officer And we all want what is best for them. March 2015 Let our children enjoy their youth. Let them fall in love and raise their own families. Let them embark upon a career. Let them do great things in that career, whether it be curing cancer, ending poverty or exploring space.

8 | POWER TO BE FREE GOV ERN ANCE

BOARD OF DIRECTORS E. Spencer Abraham • Howard E. Cosgrove Chairman of the Board Kirbyjon H. Caldwell • Lawrence S. Coben Chair, Home and Renew Committee David Crane Chief Executive Officer • Terry G. Dallas William E. Hantke Chair, Audit Committee • Paul W. Hobby Chair, Nuclear Oversight Subcommittee Edward R. Muller Vice Chairman of the Board • Anne C. Schaumburg Evan J. Silverstein Chair, Finance & Risk Management Committee Thomas H. Weidemeyer Chair, Governance & Nominating Committee Walter R. Young Chair, Compensation Committee

NRG MANAGEMENT David Crane Chief Executive Officer • Kirkland Andrews Chief Financial Officer Mauricio Gutierrez Chief Operating Officer • Tanuja Dehne Chief Administrative Officer and Chief of Staff Leah Seligmann Chief Sustainability Officer • Sicily Dickenson Chief Marketing Officer John Chillemi Regional President, West • Lee Davis Regional President, East Thomas P. Doyle President and Chief Executive Officer, NRG Renew • David R. Hill General Counsel Elizabeth Killinger President NRG Retail • Steve McBee President and Chief Executive Officer, NRG Home Kelcy Pegler President NRG Home Solar • John Ragan Regional President, Gulf Coast and Carbon 360 Denise Wilson President, New Business • Thomas D. Gros President, NRG Distributed Generation Robert J. Gaudette Senior Vice President, NRG Business Solutions

Safe Harbor Statement: This Year in Review contains forward looking statements which reflect management’s current views and estimates. The forward looking statements involve certain risks and uncertainties that could cause actual results to differ materially from those contained in the forward looking statements. Potential risks and uncertainties include statements about NRG’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

NRG, “Power to be free”, the plus signs and plus clusters are service marks of POWER TO BE FREE | 9 NRG Energy, Inc. © 2015 NRG Energy, Inc. All rights reserved. 2500 OWNING THE HOME FROM THE TOP DOWN

PHOTOS: MICHAEL FALCO WORDS: BRADLEY BLANTON DESIGN: CHARLIE WATERFALL

Guy Brooks loves his job. Absolutely loves it. For Brooks, selling NRG Home Solar solutions is both a chance to work outside and an opportunity to pursue the environmental advocacy instilled in him as a child.

10 | POWER TO BE FREE Every day I think about what an awesome job this is. —Guy Brooks

“Growing up, my earliest memories are of going to little league games,” said Brooks, “and my mother picking up all Enter Roof Diagnostics Solar and its the garbage laying around.“ Those early pool of solar experts, including Guy experiences left an impression, because Brooks. With boots on the ground he earned a degree in environmental making strides, NRG Home Solar picked science, worked on an organic farm up Pure Energies for its expertise in and then worked at an environmental online sales, consumer education and consulting firm. Later, a master’s degree lead generation. in sustainability management would give him the economics and accounting As the manager of solar sales for background that he relies on today NRG Home Solar in New York, Brooks when showing his customers how solar and his team have been responsible is right for them. The essence of his for more than 8 megawatts of home job: saving people money and supporting solar installations throughout the state. a cleaner environment­ — what’s not “The southern tip of New York is really to love? popping,” Brooks said. “You can’t go more than two blocks without seeing Guy believes NRG Home Solar stands a solar installation or an NRG Home above other home solar companies Solar truck.” because it’s more than just an installer. “From lead generation to permitting While New York surges in residential to financing to installation and beyond, solar, NRG Home Solar is winning big NRG Home Solar handles it all.” While across the nation with passionate solar many of our peer companies are pure experts like Brooks. In 2014, it became play startups, NRG Home Solar is one of the country’s top four residential backed by the corporate sophistication solar providers and announced a goal to of the NRG family, which has the ability install at least 30,000 systems to bring to power millions of American homes total megawatts in operation to 280 MW and today serves nearly 3 million in 2015. recurring residential, commercial and industrial power customers. Numbers like that rely on salesmanship and understanding consumers. When Call it a holistic approach to the home educating people about solar, Brooks solar space. NRG Home Solar already ensures the site and the customer can had a handle on customer financing, support an installation. Then it’s time for so the next logical step was acquiring a chat at the kitchen table. He finds out strength in direct sales and installation. what the customer knows about solar,

POWER TO BE FREE | 11 With home solar, we’re starting relationships that will go on for decades, so the more we can do for a customer the better. —Guy Brooks

and what they’re trying to achieve. starting relationships that will go on for Next, he diagrams the system the decades, so the more we can do for customer needs, based on what drives a customer the better,” Brooks said. them, and starts answering the big “That’s something we try to drive home, questions, often for a pretty big crowd. every time we’re in the home.” “I try to get a group together,” Brooks said. “I invite them to bring neighbors These long-term relationships, with or family. The more the merrier.” customers already adopting energy- conserving technology, open the door Of course, glowing customer for so much more. In fact, a recent testimonials never hurt. Michael Cashin California study shows a correlation (bottom left) has used only 353 kW/h between customers with home solar of grid power in the three months since installations and the likelihood that they’ll going solar. “That tells me it’s working buy an electric vehicle.* This makes them really well,” Cashin said. Working well prime candidates for electric vehicle indeed — he said he’s experienced charging solutions, home automation hundreds of dollars of savings on his and energy auditing — not to mention two recent electricity bills. system power from parent company, NRG. Brooks says it’s just another way Cashin has become quite the evangelist. the NRG family differentiates itself. “I’ve given Guy’s card to about 10 people “When we’re able to attach your electric already,” Cashin said. “I’m gonna show vehicle charger to a solar array, that’s like this one [friend] my last two electric bills going with the Jetsons instead of just and see what he thinks about that.” getting a solar installation.” For many customers, solar is just the beginning. “With home solar, we’re

12 | POWER TO BE FREE * 32% of California EV drivers own solar systems, Center for Sustainable Energy (February 2014 Survey Report) Freedom to drive the open road

The NRG eVgo network is rapidly expanding in areas throughout the U.S. that have the highest concentration of electric vehicle drivers. With plans to expand into and connect more than 25 new major metro areas over the next three years, and partnerships with a growing number of companies like BMW, Coca-Cola, Nissan, Simon Property Group, Sony Entertainment Pictures and Walgreens, we’re enabling EV drivers to choose how and where they charge.

And giving them the freedom to drive the open road. tarwood Hotels & Resorts’ “At Starwood, sustainability is second Spartnership with NRG reflects a climate nature, and our work with NRG at The of industry leaders relying on one Phoenician exemplifies our commitment another to foster positive changes for to that idea while also going the the benefit of generations to come. extra step to create a better world to Recognizing both the responsibility experience,” said Ken Siegel, Chief and opportunity to influence the global Administrative Officer for Starwood. community, Starwood turned to NRG, through its wholly-owned subsidiary This sustainable partnership will include NRG Renew, for its expertise in designing at least two more similar projects. customized sustainable solutions that Through NRG Renew, NRG will build assimilate clean energy directly into aesthetically-driven clean power people’s lives. solutions at The Westin St. John in the U.S. Virgin Islands and The Westin Maui A 568 kW solar installation at The Resort & Spa, Kaanapali in Hawaii. These Phoenician in Scottsdale, AZ, is only projects — constructed, owned and the first of three ways NRG is helping operated by NRG Energy — will provide Starwood meet key environmental goals up to 2 megawatts, of clean, renewable and make clean energy available to world power for the resort’s facilities. travelers without sacrificing luxury. Like any quality sustainability effort Capable of powering 90 homes, the NRG should, this one will have broader installation helps reduce the reliance benefits than one might realize at first on traditional power consumption. But glance. Less reliance on diesel means technological brawn is only part of the less shipping of fuel which serves to ease story. The system is also simply beautiful. the strain of large-scale transportation on wildlife and flora in the surrounding From panel placement that works ecosystems. The hospitality industry is with the terrain for better airflow, to fertile ground for an energy makeover. accent colors that blend into the natural These installations prove that developing surroundings, aesthetics drove this cleaner solutions for an industry with custom design. tremendous energy needs today can help them enhance the lives of a global Starwood’s bold commitment to lower customer base in the future. electricity consumption by 30% across their holdings by 2020 resonates with PHOTO: THE PHOENICIAN NRG and its own goal to break reliance WORDS: BRADLEY BLANTON on traditional power sources. DESIGN: DARCI BECHEN SUSTAINABLE BEAUTY

14 | POWER TO BE FREE POWER TO BE FREE | 15 “They were out there in the dark in that freeze over the Hudson River. And I’ll tell you what – I was out there the next day and it was cold. I wasn’t even on the barge, but my hands were numb. It was that cold.” NRG’s Senior VP of Plant Operations Fran Sullivan doesn’t strike me as a man prone to hyperbole. At almost 40 years in the industry, he’s seen a lot, done a lot and has little left to prove. So when I hear the awe in his voice, my instincts tell me there’s something there. “Go talk to the crew at Bowline,” he tells me. So, I do.

Over the course of this year, NRG took part in some pretty phenomenal things. Mergers and acquisitions. Our Global Giving efforts. An aggressive set of sustainability goals. But one thing that sticks out ­— something I’ve found to be quite heroic — is our response to last winter’s Polar Vortex.

Employees from every corner of our generation fleet acted heroically, providing millions of families and businesses essential power to keep warm and safe amidst this extreme weather, particularly in the northeast. Together, we faced bone- chilling temperatures — the likes of which haven’t been felt in 17 years — that encased our cities in tombs of ice and snow. People needed relief.

As I investigated further into our response to this weather phenomenon, I heard tales of heroism, dedication and teamwork; of employees from our West and Gulf Coast regions receiving the call for help on a Saturday and being in the air, heading east by Sunday afternoon. Some employees mobilized so quickly, in fact, that when

16 | POWER TO BE FREE PHOTOS: MICHAEL FALCO WORDS: CRAIG WALKER DESIGN: MARK HAYES A story of triumph during the coldest days in America

they arrived to help, they were forced to visit the nearest shop because they’d left without a coat. I hear these stories and I’m reminded that we’re a company dedicated not only to its customers, but to its people. My search ultimately led me to the Bowline Generating Station in Haverstraw, NY, where Mother Nature prevented natural gas — its primary fuel source — from ever reaching the 49-person staff.

Like the valiant 300 at the Battle of Thermopylae, the small crew at Bowline was cut off from valuable resources in the midst of seemingly insurmountable odds. Because of extreme temperatures, natural gas for the plant was curtailed in order to supply heat for surrounding areas. However, unlike the felled Spartans, our heroes persevered and triumphed. They had no choice if they were to defend against this raging tempest. But to do that, they needed to revert to burning fuel oil.

“We happened to be watching the weather, so we knew it was going to be brutal,” says Pete Jones, Operations Maintenance Manager at Bowline. A 28-year veteran in the industry, he sports a rich, baritone voice and a full-bodied personality to go along with the laundry list of job titles he jokingly exaggerates. “We knew what was coming,” he continues. “You psych yourself up, though. Were we happy? Probably not. But what it does is make you focus. Those are the things that we thrive on [at Bowline]. You need a job done? We’ll get it done.” This sentiment is shared by everyone at the facility.

POWER TO BE FREE | 17 Bowline at a glance

PETE JONES NICK PEREZ Fuel type: Natural gas; Operations & Maintenance Manager Reliability & Procedures Analyst ultra-low sulfur oil

The Bowline Generating Station is a Sub-zero temperatures made this 758 MW (generation capacity) natural process more difficult than expected. gas and oil-fired facility located an 758 MW Running the Bowline facility solely (generation capacity) hour north of New York City along the western banks of the Hudson River. on fuel oil hadn’t been attempted in It sits on a plateaued curvature of the nearly a decade. As a result of the river that sees faster wind speeds and natural gas conversion, tanks and 570 MW various systems associated with oil (capacity during polar vortex) water currents, exempting it from the transportation obstacles experienced had been taken offline indefinitely. In by neighboring facilities. This saving fact, only one member was familiar with grace of natural ingredients made receiving the fuel oil. Perez, a 30-year Bowline the only oil-burning station in veteran and Reliability & Procedures the area capable of actually receiving oil. Analyst, was that lone member. He became instrumental in establishing Pete Jones, Nick Perez, Dave Mattfeld best practices — finding and plugging Powered approximately and Mike DeNisco were part of a steam leaks, maintaining temperatures, 10-person fuel reception crew faced protecting copper lines, etc. — for 456,000 with helping generate 570 MW of getting the job done. electricity despite the curtailment of homes natural gas. To keep the area powered, “The main concern was keeping the oil during the winter event they relied on ingenuity, reverting to #6 where it belonged, making sure it didn’t fuel oil to power the plant. get out and affect the environment,” says Perez. “We didn’t want to get so “We’re not talking about oil you put in much as a drop of oil into the river.” ° a car,” DeNisco, a 25-year veteran Fuel And except for a minor two-gallon spill -10 F Tech 3, reminds me. “This stuff is one on the dock, approximately 3.5 million Temperatures reached bone-chilling lows step above sludge.” The problem was gallons of fuel oil were received without that you had to get the oil hot enough environmental incident. to flow from the barges to the plant — a 0 quarter mile — through a 24” pipeline. Recordable safety incidents

“Rise up warriors! Take your stand at one another’s sides with your feet set wide and rooted like oaks in the ground.” - Spartan poet Tyrtaeus before the Battle of Thermopylae

PHOTO COURTESY PETER JONES 18 | POWER TO BE FREE POWERED BY PEOPLE Bowline is powered by a 49-person staff of dedicated employees, including the crew featured in this story.

MIKE DENISCO DAVE MATTFELD Fuel Chief/Fuel Tech 3 Fuel Chief/Fuel Tech 3 THE RIGHT STUFF: Pete, Mike, Nick and Dave walk across the bridge leading from the pier to solid ground after a hard day’s work. But with any situation of this sort, to regroup and start fresh the next day, dangers were inherent. The crew was producing successful results. out there through the night, day after day receiving oil, battling the icy spray “When you step back and look at it, it of the river and dealing with fatigue. was pretty miserable,” Perez laughs. Snow obstructed pathways, making it “But going through this, we were all in it difficult at times to monitor the pipeline. together and everybody’s spirits were They were freezing and wet and tired. as high as possible. Everybody just did But despite these conditions, they what they had to do to be successful.” performed without a single recordable The importance of what these brothers safety incident.

in arms at Bowline — faces marred by PHOTO COURTESY PHOTO PETER JONES “It was relentless,” says Mattfeld, a dust and ice-capped sweat — have 27-year veteran Fuel Tech 3. “When we accomplished was felt by everyone. ON THE HUDSON: A member of the crew did get a break, it was for a blizzard,” Because of the crew’s efforts, the couples a pipeline intake during the sub-zero temperatures of the Polar Vortex. he laughs. “It was common you’d find entire station stood proudly while someone blow drying their socks in NRG remained strong and reliable. some corner trying to prevent frostbite. And there’s trust between us and the Any relief from the ice helped.” community because they now know we’ll do what it takes to keep them powered. Communication, teamwork and trust were paramount to the crew’s success. “People,” muses Jones. “They see the Every member was empowered to steam vapor coming from the stacks You need make the right decision to ensure safety and recognize that because we’re and success; like when DeNisco and always on, they will be, too.” a job done? Mattfeld, fatigued and frustrated during 8 hours of unsuccessfully trying to We’ll get reach proper pipe temperature, decided it done.

POWER TO BE FREE | 19 SAFETY PROTECTS 16 million for all WOMEN The NRG commitment to safety goes beyond its employees to people in all industries that deserve a safe and humane working environment. One example of this commitment can be seen in the company’s involvement in the shea nut market. Shea is a key ingredient in skin care products and Ghana is one of the largest exporters of the nuts that provide it. This multi- million dollar industry relies entirely on women who face many dangers when harvesting the crop. In fact, it’s estimated that 1 in 10 women will be bitten by snakes or stung by scorpions while working the fields. Under such conditions, only about 40% of viable shea nuts are collected, hindering profits these women depend on, often as their sole source of income to support their families. As an added risk, the shea nut is usually collected at night since most of the women have multiple village and family responsibilities during the day. For the past two years, the Just Shea program has helped to increase income for these women by providing safety equipment and training that increase their harvests. In many parts of the world, the ability to earn more 600,000 income determines whether their families receive an education at all. It is TONS OF SHEA with this in mind that Just Shea offers financial aid in support of continuing exported each year education not only for the children of Ghana, but also educating women with basic entrepreneurial skills that can eventually lead to expanding the shea nut industry. And so NRG has partnered with Just Shea to support these women safely generating the necessary income to catalyze a cascading positive effect throughout their communities. In this program, NRG sees a reflection of its common goal to empower developing economies and has donated safety kits to 250 women that include a two-piece hooded raincoat, gloves, boots and a handheld solar-powered light source. By providing access to protective gear this partnership has increased average daily shea nut collections from 2 bags to 3.4 bags. Equipped with the solar-powered light source, harvesters can safely navigate the fields for nighttime collection and earn an even higher price for their yield. NRG believes a safe work environment is essential to maintain and grow any business, and through its partnership with Just Shea, the company has seeded a socio-economic model that can be shared with other communities within Ghana, augmenting a healthier economy for the shea nut and safer work conditions for collectors.

PHOTOS: JUST SHEA PROGRAM WORDS: ERIK BATISTA DESIGN: CHARLIE WATERFALL BENEFITS

20 | POWER TO BE FREE 2 million EVERY BRAND IS A DOOR TO NEW OPPORTUNITIES

As part of NRG Home, our retail electricity providers have proven themselves to nearly 3 million (and counting) recurring customers across the country, winning hearts and minds along the way with solutions tailored to fit their lifestyles.

Innovative plans and Giving energy consumers account management tools the power of choice. that solve problems.

Money-saving plans and low fixed Working with customers to make Electricity and natural gas service with rates make it a Lone Star staple. renewable energy a mainstream choice. green options and monthly rewards. When many people think about building a brighter future, fossil fuels are rarely considered. But why not? Used responsibly, they can reliably transition our society to the cleaner, renewable generation solutions resting just beyond the horizon.

Building a sustainable future based on renewables can’t happen overnight. For us to continue having the capacity to power nearly 1/3 of America today, we must build upon the current energy infrastructure. The solution for NRG is to clean up our conventional generation fleet and to maintain fuel diversity as a means to achieve grid stability and long term sustainability; something we’ve continued throughout 2014.

In November, we announced an aggressive set of long-term sustainability goals that will dramatically reduce our carbon output. The first goal is to reduce carbon emissions by 50% by 2030; the second is to reduce carbon emissions by 90% by 2050. As one of the largest consumers of coal in the country, cleaning up our generation fleet will be paramount to achieving these goals.

“A major part of our focus is to modernize our fleet,” saysLee Davis, President of NRG’s East Region. “With fuel modifications underway at six of our plants in the East Region alone, no other company is modernizing its fleet at the rate of NRG.”

In our East Region, which constitutes 47% of NRG’s total net generation, we’re investing nearly a billion dollars by 2016 to execute these modernizations in one of three ways. Repowering, which entails a complete technology conversion, like switching from a coal-fueled steam boiler to a combined-cycle plant, is one way. Another is refueling, when a coal-fired plant is enhanced to burn natural gas or THE IMPORTANCE IN A WORLD oil as its primary fuel while retaining its ability to use coal. Both paths can result in OF FOSSIL FUELS GONE RENEWABLE an approximate 50% reduction in carbon

22 | POWER TO BE FREE THE ILLINOIS FLEET EFFORT WILL REDUCE

• CO2 by 60% • SO2 by 90 % • Particulates by 70% • Mercury by 53%

“Our success at Waukegan is not about one person.”

—Mark Nagel

A VIEW TO THE FUTURE Poised along the TRONA tower, Nagel contemplates a clean future aided by the work done at Waukegan.

dioxide (CO2), as well as dramatic reductions in sulfur dioxide (SO2), nitrogen portfolio, eliminating the need to retire

dioxides (NO2), mercury and particulate matter (dust). We’re doing these some facilities due to environmental modifications throughout the East Region at multiple locations, including our regulations. In fact, the new process at

Joliet and Dunkirk facilities. Waukegan helps reduce its SO2 emissions by 90%. Moreover, our modernizations The third way we’re modernizing our fleet is with backend emission controls throughout Illinois will reduce the (BECs), which are post-combustion emission reduction technologies — such state’s carbon emissions by 16 million as scrubbers or desulfurization equipment — that eliminate the majority of tons annually by 2020 — equivalent to several contaminants, including SO2, NOx, mercury and particulate matter. removing 4 million cars off the road. These efforts will single-handedly achieve For example, BECs are how we’re modernizing our 689 MW, ultra-low 56% of the state’s emission reduction sulfur coal-fired Waukegan Generating Station in northeastern Illinois. goals and show the immediate value of This year, the team there successfully beta-tested proprietary trisodium rethinking the way we use conventional hydrogendicarbonate dihydrate, or TRONA, injection technology. TRONA is fuel sources. a naturally-occurring mineral similar to baking soda that is used in a process to

remove the majority of the SO2 produced from coal combustion. “What we’re doing today with cleaner coal generation and conversions to natural gas “Our success at Waukegan is not about one person,” Plant Manager Mark Nagel is vital,” says Nagel. “We’re keeping the told me upon introduction. “We’re a family here and have worked together lights on today and affording ourselves for years. My team deserves all the credit.” Then with a side-long glance for time to develop better, cleaner, more measure, “I want you to make sure that comes across.” sustainable solutions tomorrow.” This level of commitment and respect for everyone on the team, and the work at hand, has translated into great success for Mark and our team at Waukegan as they pioneered the new TRONA injection system. Projects PHOTOS: LISA QUIÑONES WORDS: CRAIG WALKER such as this contribute to the diversification and solidity of our generation DESIGN: MARK HAYES

POWER TO BE FREE | 23 NRG’s partnership with The Huffington Post

provides an ideal platform for broadcasting our PHOTO COURTESY RHEA DAVIS mission to help confront climate change and ensure a clean energy future. NRG President and CEO David Crane, discusses climate change at the People’s Climate March in New York City.

WORDS: JONATHAN CUMBY DESIGN: CHARLIE WATERFALL

24 | POWER TO BE FREE “A business-led social movement won’t happen without the enthusiastic participation of the American public.” —David Crane

eople are talking about climate The launch of Generation Change Consumers trust and buy from thought change. What causes it, how bad coincided nicely with the People’s leaders. They also share what they’ve P it’s become, how much worse it Climate March in New York City. An read on social media. 2014 saw 1.3 million could get, and what we can do about it. estimated 400,000 people gathered social sharing actions of Generation In 2014, NRG joined the conversation to advocate awareness and action, Change content across several platforms. in a big way, amplifying our own strong and NRG also made the trip. President stance on climate change and our and CEO David Crane and Chief On Generation Change, blogs from Crane mission to help solve it. Sustainability OfficerLeah Seligmann stand shoulder-to-shoulder with other joined other NRG employees, family climate change thought leaders such Last September, The Huffington Post members and friends as part of the as Kees Kruythoff, president of Unilever and NRG launched Generation Change, massive rallying cry against global North America. Generation Change an online destination for dialogue, debate warming and climate change. increases the credibility and leadership and education on climate change. The of NRG, as well as visits to nrg.com forum helps us show how businesses The march helped spawn the “Why from readers in key markets such as the can use their products and how everyday I Care” blog series in which thought Northeast, California and Texas. consumers can use their dollars to do leaders and influencers shared why they something about it. The Huffington believe climate change is an important Because of events like the People’s Post curates a focused conversation on issue. Articles and live events were Climate March, the voices that for years Generation Change that’s dedicated to promoted through social media channels have been calling for change in the way sustainable energy options and how the using the hashtag #WhyICare, a top-3 people get and use energy are growing choices we make affect climate change. hashtag in the days around the march. louder. And because NRG has joined In addition, NRG has used the section to the conversation through Generation showcase who we are, what we believe, To date, Generation Change has proven Change, so are the voices replying with and the clean-energy projects we offer to be a groundbreaking platform in the some of the possible solutions. through exclusive advertising. sustainable energy space. It invites consumers — especially early adopters Recognizing shared values, The and Millennials — to join the climate Huffington Post Partner Studio team change conversation and get to know approached NRG to partner on an NRG and our long-term vision. The more editorial journey to bring dialogue on NRG participates in the clean energy climate change and clean energy to the conversation, the more the NRG brand forefront of the green conversation. is seen as a thought leader in the market.

POWER TO BE FREE | 25 E N O U G H R E N E W A B L E E N E R G Y T O P O W E R A L L U S O P E R A T I O N S

Now that’s a 20/20 vision.

In the corporate-led push toward a clean energy future, NRG and Unilever see eye to eye. We’re partnering with Unilever to help them achieve 100% renewable energy in their U.S. operations by 2020 — and showing the world what crafting products with a purpose looks like. tanding in the shadow of an abandoned conventional S generation facility, we caught up with Chief Sustainability Officer Leah Seligmann and Sustainability Senior Manager Laurel Peacock to talk about the importance of forging unconventional partnerships with noteworthy industry PHOTOS: JACK THOMPSON WORDS: CRAIG WALKER leaders and what it means for NRG to take DESIGN: CHRIS NOWAK part in corporate-led social change.

POWER TO BE FREE | 27 When you think about social change, will require unprecedented collaboration corporations don’t come to mind. among a variety of players. Why now? Peacock: [Climate change] is a Seligmann: For us to shift the energy systemic issue that’s going to take the industry, we need to galvanize everyone. This is a entire system — that means power This means we have to reach everyone companies, businesses, governments and corporations do this better than systemic issue and individuals — to fix. anyone else. For the first time in history, big corporations are in a position to Seligmann: These partnerships expose actually lead social change. that’s going to us to a much broader audience. In the case of Unilever, this relationship will Peacock: This is a social issue that’s take the entire enable millions of their consumers to buy actually in a business’ best interest to products made with renewable energy pay attention to. If you’re a retailer, for every day. instance, you want to know that your system to fix. supply chain won’t be disrupted because Is there a reason we’re attracting of drought or other extreme weather these partnerships? caused in part by your energy decisions. Peacock: Companies are looking to us —Laurel Peacock So, it just makes more sense now. for our expertise in sustainable solutions. They want, and should be able, to deliver Peacock: Because of the scale and business value without poisoning local scope of this issue, yes. We need global water supplies or melting the polar ice action if we’re going to have a chance at One example of these transformational caps. These partnerships help us figure curtailing the environmental effects of partnerships is our collaboration with out how together. poor energy choices. Corporations have Unilever. This relationship is about two that multi-national presence, as well as companies working together to combat Seligmann: The old notion that the ability to innovate and drive change, climate change. We have gone beyond sustainability and bottom line are at in a way that governments just can’t at a traditional commercial relationship to odds is wrong. If you’re not thinking this point. truly roll up our sleeves and figure out how about sustainable solutions, you’re not we can move the needle on clean energy thinking about long-term business value. What makes these partnerships so in the U.S. You’re not going to be able to survive as unconventional, anyway? a business if developing value for your And why do these partnerships shareholders isn’t top of mind, but our Seligmann: When we say matter? definition of shareholder value must unconventional partnerships, what expand beyond short-term returns we’re talking about are partners that Seligmann: We can’t tackle climate to include societal and environmental wouldn’t normally be paired with a change alone. This is a global issue that value. NRG doesn’t have all the answers, traditional power company. As our but our commitment is authentic. This business evolves, we need to be in new attracts other like-minded companies. conversations with a different set of stakeholders. Our partners enable us to So we’re not just talking Hallmark do this. moments here.

How are we identifying these Seligmann: Businesses don’t run on partnerships? Hallmark moments. It all boils down to creating value, which is how we’re helping Peacock: Shared values and shared our partners. We’re creating business needs. value with each of these relationships in ways that leave the world a better place. Exactly. We want partners Seligmann: We want to grow NRG while looking out that share our beliefs on sustainability, for the greater needs of society. And our have set goals for themselves and are in a relationships with these corporations will position to actually do something about it. help generate the change we need.

28 | POWER TO BE FREE

BOUND LESS The world is full of spectacular sights around the world with products that The acquisition of Goal Zero makes most of us would never witness if not for give them the freedom to go anywhere, NRG the first energy company to also the determination of an intrepid handful regardless of battery life. become a consumer packaged goods of individuals. company. The strength of each brand “My passion for exploring has driven will benefit the other. NRG has a broad Himalayan rock cliffs. Saharan sand me to all seven continents in search of customer base that spans the U.S. while dunes. Glacial ice caves. first ascents, interactions with different Goal Zero’s presence is felt nationwide. cultures and the chance to embrace Together, we can power the modern Experiencing these geographical the untouched Earth,” said Libecki, who mobile lifestyle with clean, renewable phenomena firsthand is freedom in its is also a Goal Zero brand ambassador. energy and build awareness for NRG with purest form, but doing so is no small “I want to share the magic, power and consumers who thought “going green” feat. You need energy for essentials beauty of the wild planet that few will needed to be cumbersome, expensive like heat and light, and you have zero see and inspire them to get out and live or just plain impractical. electrical outlets. These pioneering their dreams.” souls already have plenty to worry about: We’re ready to usher in the era of altitude sickness, exposure, falling rocks, But you don’t have to be scaling the personal power, and with Goal Zero indigenous wildlife. They shouldn’t have Sawtooth Mountains to live in the we’re taking solar off the roof and to be afraid of losing power, too. ultimate now. You could be filming putting it in people’s hands. Once they your kid’s first soccer game, or stuck see the value of renewable energy, “When you’re living in the ultimate now,” at the airport with a delayed flight and electric vehicles, rooftop solar and said adventurer Mike Libecki, “power a dead cellphone battery, or in need of smart homes become natural next should never be a distraction.” emergency power after a hurricane. steps. Now, with NRG, consumers can NRG and Goal Zero want to put go farther and do more with solar than We couldn’t agree more, which is why convenient, reliable, affordable power they ever thought possible. in September 2014 NRG acquired in the hands of every human walking Goal Zero®, a portable solar powerhouse the globe. dedicated to empowering people

30 | POWER TO BE FREE STAYING FOCUSED Photographer and Goal Zero ambassador Chris Burkard uses Nomad solar panels to power his cameras and take breathtaking photos using energy straight from the sun.

CORPORATE SYNERGY Resourceful NRG employees in San Francisco used Goal Zero products, including Torch 250 flashlights and Lighthouse 250 lanterns, to stay productive during a power outage.

BOYS BEING BOYS Two young boys who have to use battery-powered feeding pumps to get their meals recently took their first-ever camping trip thanks to aGoal Zero Yeti® 400 solar generator.

ANSWERING THE CALL In November 2012, Goal Zero sent nearly $600,000 worth of portable power equipment to those living WORDS: JONATHAN CUMBY with the aftermath of Hurricane Sandy. DESIGN: CHRIS NOWAK

POWER TO BE FREE | 31 PHOTO: WARD + KWESKIN PHOTOGRAPHY WORDS: NATALIE HARRIS DESIGN: DIONE OVERSHOWN

32 | POWER TO BE FREE OSHA recordable injuries for Distributed Generation and Renewables in 2014.

that. They’re architects of innovation helping to design our vision of a clean energy future. And deep within the confines of their labs, they’re tinkering with breakthroughs in micro-grid technology.

Nestled in the British Virgin Islands lies Necker Island, Station A’s proving grounds for the viability of micro-grids. Upon project completion in 2015, the solar-wind-battery micro-grid they’re implementing is expected to slash diesel consumption by at least 75%, answering the island’s energy infrastructure challenges.

Achieving such a ground-breaking level of renewable energy generation was no small feat. To do this, Station A had to customize a micro-grid system that could withstand the Caribbean’s harsh marine environment, and deliver 24/7 power regardless of the weather. This required them to optimally balance the island’s renewable energy production with its energy consumption by integrating a solar array, a wind turbine, a battery storage system and a diesel generator with a central control system. The intelligent system maximizes the production and use of renewable energy and even ensures the water Agents desalination system works overtime when there is an abundant supply of solar and wind.

“Distributed energy presents a massive opportunity for the end user, NRG and the global community,” stressed Ed McCullough, Director of Engineering for Station A of change and Necker Island project lead. Aside from generating clean, safe and reliable power, these dynamic micro-grid systems are incredibly versatile. Imagine living in a region without an electric grid. Instead, They can serve as the grid in regions where one doesn’t you rely on weekly shipments of diesel to provide power exist, as well as enhance or offer an alternative to the that cost 25-30% of your household income, and hamper conventional grid. your economic opportunities and quality of life. “Today’s energy challenges aren’t limited to the This is the dim reality for many Caribbean nations. But Caribbean basin. They’re more widespread — and closer our innovation lab, Station A, is primed to change that to home — than that. We’ve spent a lot of effort creating through cutting-edge micro-grid technology. a micro-grid that’s not just applicable to Necker Island, but that can be easily replicated anywhere. And we’ve On San Francisco’s southeastern waterfront, done that,” said McCullough. headquartered in a warehouse in the shadow of a decommissioned power plant, sits Station A. It’s a name In fact, the lessons learned on Necker Island are already that evokes mystique and curiosity, yet is well-suited for informing our commercial projects and strategy in the team considering even a glimpse of their laboratory a variety of domestic markets. This year, we’ll begin of wonder is not easily acquired. On paper, Station A leveraging their work stateside, proving Station A’s identifies themselves as engineers, but they’re more than solutions applicable beyond the Caribbean.

POWER TO BE FREE | 33 Achieving a clean energy future is no small feat.

Some things stand the test of time. A sole reliance on operating wind farm in North America. It powers tens of conventional fuels shouldn’t be one of them. thousands of homes across Southern California with a minimal carbon footprint — and will for decades to come. That means diversifying our portfolio to include cleaner, more abundant sources of electricity. Like wind energy. That’s a big step forward. And one we can all be proud of. NRG’s acquisition of Alta Wind through NRG Yield does just that. At 947 MW of generation capacity, it’s the largest Wind turbines Community make it easy to solar helps breathe easy, reduce demand providing clean, on the electric sustainable energy grid, and offsets Excess solar and with every breeze. residential wind energy is and business stored in a battery electric bills. system, which provides local backup and ensures reliable power.

Personal energy management tools put the power in customers’ hands, by allowing them to remotely manage their home’s energy usage.

Keep your eVgo DC fast and phone fully Level 2 charging charged on the stations provide go with an NRG the freedom to Power Pack. drive EV.

WORDS: NATALIE HARRIS DESIGN: CHARLIE WATERFALL

scalability of the micro-grid systems being developed on Necker Island by NRG’s innovation lab, Station A.

As we begin to leverage our work in the Caribbean for Rutland, we’ll explore integrating various energy THE ENERGY CITY OF THE FUTURE management and renewable technologies, such as solar arrays, wind turbines and battery storage systems, with Rutland, Vermont, is a model for building a brighter tomorrow. Vermont’s electrical grid that will provide benefits to the It’s a gateway for micro-grid communities where residents’ distribution system, the wholesale power market and most homes, businesses, electric vehicles and life on the go importantly the customer. will be powered by an array of sustainable energy sources. But we’re doing more than enhancing Rutland’s energy This is the vision of two like-minded leaders — Green independence and savings. We’re pushing the tipping point Mountain Power President and CEO Mary Powell, and NRG for distributed energy in the U.S. President and CEO David Crane — to establish Rutland as the Energy City of the Future. It will also prove the viability and And giving Vermonters the power to be free.

POWER TO BE FREE | 35 kindred spirits

36 | POWER TO BE FREE Medical facilities don’t have the luxury of turning off the lights.

They depend on power to save lives. Full-time readiness makes them one of the largest electricity consumers in the nation. And the increased need to be accountable for patient cost and quality means relying on an energy advisor that can help conserve energy, provide it consistently and affordably, and do so while promoting a healthy environment.

NRG is well-positioned to serve as a trusted advisor to these organizations whose core business is people and health rather than energy. The company’s commitment to making and delivering power safely, reliably and cleanly makes it a kindred spirit to healthcare.

Medical providers are centered on people — their wellbeing and their future. So to partner with them, NRG needed one face to reflect their values and grow the relationship. NRG needed Ken Cowan.

Cowan, a senior account executive for NRG Business, believes in individual responsibility and giving customers exactly what they need.

“They want to do business with someone they can hold accountable. If it’s strictly price, we will not win these deals. We have to build on how we deliver, execute and respond. And how we can integrate what the NRG family is into their organization,” Cowan said. Cowan grew up in Omaha where he studied at the University of Nebraska. “I never imagined working in the energy industry at all,” he said. But, he took an internship at a company that merged with Enron and was quickly relocated to Houston.

PHOTO: ROBYN AROUTY The plan was to head south, earn a little WORDS: BRADLEY BLANTON money and head back home to Omaha. DESIGN: DIONE OVERSHOWN So he drove to Texas in a Ford Escort

POWER TO BE FREE | 37 “People want to do business with someone they can hold accountable.” —Ken Cowan

with no AC. “That was 25 years ago, and emissions by 30% a full three years community,” Cowan said. “We’re more I never looked back,” Cowan said. Finding earlier than originally scheduled. than just a national commodity provider. out a customer’s goals and giving them Additionally, NRG eVgo is working with We’re a local partner.” the energy to achieve them is what the company on agreements to equip drives him, and that’s a passion he’s their California facilities with electric Both Kelsey-Seybold and NRG Business’ been able to explore at NRG. vehicle charging stations. parent company, NRG, invest in the future. “[They believe] paying a little He also found a lot to love in Houston. Where one partnership focuses on up front to get something done over “There’s so much to do here — sporting sustainability, the other focuses on time is going to end up saving the events, educational opportunities for efficiency. patient’s life,” Cowan said. “Our energy my kids and just the diversity of the city. strategy is similar in that there may be This is really home now.” He’s also very Kelsey-Seybold Clinic, headquartered some investment up front, but over involved in local theater, serving on the in Houston, TX, believes that eliminating time energy costs may decrease.” And board of the Ensemble Theater and on waste and coordinating care leads to investing in sustainable generation and the board of The Kinkaid School, where better outcomes and lower overall cost research today can lead to healthier lives his daughter is a student. for patients. and a longer lifespan for the planet. His sense of community and the ability According to Nicholas Ro, vice “My boss called us kindred spirits at to find personal connections has president of strategic and legal affairs one time,” Ro said. And if you ask him cemented our standing with two major for Kelsey-Seybold, providers must what sealed the deal, Ro will tell you medical partners: Kaiser Permanente commit to providing quality patient care unequivocally, “we wouldn’t have done and Kelsey-Seybold. and be accountable for its cost. “If you’re [this] without Ken.” going to do that, you need to have good Kaiser Permanente, a neighborhood systems in place… and also eliminate any Offering our partners the support healthcare provider, boasting more than sort of waste within your organization.” they need generates revenue for NRG 400 locations in California, was looking Business, but it also supports the to shrink its greenhouse gas (GHG) NRG Business answers this need with company’s commitment to improve emissions by 30% by 2020. “[Kaiser competitive commodity pricing, energy the health of our world and its populace. has] aggressive goals in reducing their management services that ensure According to Cowan, there’s a line greenhouse gas emissions,” Cowan power isn’t going to waste and demand from energy efficiency and sustainable said. “They’re the perfect partner. Our response protocols that put energy solutions to patient health. “If they’re goals and our mission, our values tie assets to work providing additional able to save money on energy, they can very clearly with theirs.” revenue. It’s all about providing a put those extra dollars into better care customer exactly and only what they and pass savings on to patients.” NRG NRG Renew will implement as much as need, something Kelsey-Seybold firmly is in talks with several other leaders in 70 MW of distributed solar across as believes in. the healthcare industry, owing in part many as 170 Kaiser Permanente medical to some vocal evangelists. offices, hospitals, clinics, data centers This partnership is steeped in more and other facilities in California. Our than just energy. “They felt connected work will help the provider shrink GHG to us because of who we are in the

38 | POWER TO BE FREE NRG Yield is a publicly traded dividend growth company formed by NRG to serve as the primary vehicle through which NRG owns and acquires contracted renewable and conventional generation and thermal infrastructure assets. Through NRG Yield, NRG benefits from stable cash flows through long-term contracts providing investors both current income and growth. Importantly, NRG Yield provides NRG with a key source of low cost capital for future growth.

17 y rs 10 yrs 15-18% $ 47.14 25%

REMAINING TARGETED EXPECTED STOCK DIVIDEND PPA LIFE TAX DIVIDEND PRICE INCREASE WEIGHTED SHIELD PER SHARE AS OF SINCE IPO BY CAFD GROWTH 12/31/14 RATE THROUGH 2019 Bridging the gap You can’t just flip a switch and rely on an all wind, solar and micro-grid infrastructure overnight.

—Anthony Armpriester

40 | POWER TO BE FREE Because it believes in environmental stewardship, NRG operates one of the most diverse energy generation portfolios in the nation. The company’s investment in sustainable generation is unrivaled, and it is clearly building for a carbon-constrained future. But as Anthony Armpriester, Director of Engineering and Construction for NRG Carbon 360TM, put it, “You can’t just flip a switch and rely on an all wind, solar and micro-grid infrastructure overnight.” Like the rest of the country, NRG depends on coal to serve a massive national customer base. That fleet also provides significant earnings for the company, fueling the expansion of its sustainable portfolio. Coal is an incredibly stable fuel source, and due to its abundance, will remain a very real part of the energy landscape for the foreseeable future. But society is vocal in its demand for more carbon conscious electricity. To make its coal fleet a part of the low carbon future, and remain at the forefront of driving change from within the industry, NRG has formed a team focused on changing carbon dioxide — a key factor in climate change — from one of the energy industry’s greatest liabilities into a source of future earnings growth. NRG Carbon 360 is weaving the raw power of traditional generation into the fabric of the sustainable energy future by improving the environmental performance of existing fossil- fired plants. ”We need to find ways to make the existing plants economically viable and keep our country competitive,” said David Greeson, VP of Development for Carbon 360. “The best way to do that is to make coal work in today’s low carbon environment.”

PHOTOS: JACK THOMPSON WORDS: BRADLEY BLANTON DESIGN: DARCI BECHEN

POWER TO BE FREE | 41 For David Greeson, Anthony Armpriester and Devon Stonitsch, The Petra Nova project broke ground in July of 2014 and becoming the core of the Carbon 360 team was a leap of construction will have surprisingly little impact. “The pipeline faith. Their first project wasPetra Nova and despite it being will be underground, running along existing easements, so it will the proof point for their larger mission, it was little more than have little impact on the environment,” Armpriester said. “The a plan on paper when the team formed in 2011. It was a bold same is true of the carbon capture system itself, as it’s being built strategy: reduce the carbon footprint of the nation’s largest within the plant’s existing footprint. And the oil field has been fossil fueled plant, the W.A. Parish Generating Station in Texas. producing for over 70 years and will see significant environmental Carbon capture technology would be integrated into the plant upgrades as we repair and plug many of the aging wells.” to demonstrate the company’s ability to adapt to anticipated The beauty of the carbon-to-oil recovery model is that no carbon legislation while maintaining maximum performance matter which way oil prices fluctuate, NRG can capitalize. During from its coal fleet and to discover new revenue streams for peak prices, the company can rely on increased production NRG shareholders. to dramatically increase EBITDA. When oil prices drop, it’s The Carbon 360 team discovered that a number of older oil fields an opportunity to expand oil field holdings or develop field along the Gulf Coast could greatly benefit from CO2 injection or infrastructure at a lower capital investment. According to enhanced oil recovery (EOR). It was a concept that’s been around Greeson, downswings in oil prices are the opportune time to since the 1970s, but the volume of naturally occurring carbon acquire fields and services. dioxide needed for enhanced oil recovery simply wasn’t readily With a $1 billion price tag, revenue generation is as much a key available. So Greeson connected the dots. driver as environmental considerations. But NRG isn’t the only “Here’s a way to not only capture the group that believes in this project. “To go with a substantial grant from the Department of Energy, we’ve also got $550 million carbon dioxide, but to turn it into a coming from Japan in the form of an equity partner putting in revenue stream large enough to pay $300 million, and two Japanese government-backed loans for $250 million,” Stonitsch said. Partnerships with JX Nippon Oil for the process of capturing it,” & Gas Exploration Corporation and Hilcorp Energy, a grant Greeson said. from the U.S. Department of Energy, and globally sourced By partnering with Hilcorp Energy Company, NRG acquired technologies and equipment made it all possible. a working interest in West Ranch oil field. Together, the two Between the expected oil production from EOR and electricity companies will inject captured CO2 from W.A. Parish into the oil sales from a cogeneration unit constructed at WA Parish as part field, permanently storing it away from the atmosphere, safely of the project, the endeavor is slated to produce robust peak increasing crude oil production and providing revenue to NRG. earnings by 2020. The Petra Nova project is expected to be the That acquisition alone meant earnings for NRG, even before world’s largest post-combustion carbon capture facility on an the enhanced oil recovery operation begins. ”We’re currently existing coal plant. producing and selling 500 barrels [of oil] per day,” said Devon Stonitsch, Director of Finance for Carbon 360. That revenue That makes it a win-win from any perspective. “You can go to paid for much of the development of the project until the start anyone, regardless of their position on climate change or their political position; it’s a good project,” Armpriester said. “If your of construction. When CO2 from W.A. Parish is injected, oil production will skyrocket. “At the peak of production — around position is, ‘carbon is harming the world and we need to clean up 2020 — we’ll be producing over 30,000 barrels a day.” carbon,’ that’s what this project does. If your position is, ‘we need to enhance national energy security,’ we’re doing that, too.

Excess carbon is recycled back into the field. It travels 82 miles.

CO2 is pulled from flue gases. And is injected into the oil field. Crude is forced up, increasing production by 3000%.

PETRA NOVA TURNS A LIABILITY INTO A COMMODITY.

42 | POWER TO BE FREE We’re producing domestic oil instead of [importing it]. If you’re a coal person, we’re preserving the life of coal and making it part We’re bringing together the of our energy future.” Perseverance and teamwork were the keys to oil and electricity industries making this complicated project work. “There were many times when there was no clear path while increasing energy forward and it looked like maybe it was over,” Greeson said. “But by sticking with it and with the independence in the United backing of NRG senior management, we were able make this thing work. It’s a real testament to States – and we’re doing it a team being fully devoted.” in a way that improves the This is only the first of many possible ways to lower the company’s carbon footprint. “We’ve environment. got Limestone, Big Cajun, three more units on Parish, and too many Northeast plants for me —Devon Stonitsch to count. We’ve got gas-fired plants in California that are 30 miles from some of most productive oil fields in the United States,” Stonitsch said. Carbon 360 is also looking into third party plants and even other industries where carbon capture-to-EOR systems could be deployed. According to Greeson, “the goal here is to be a part of the low-carbon economy. And that doesn’t solely need to be focused on generation.” Being a first mover in the space gives NRG a tremendous advantage in a carbon industry with the potential to net vast earnings by 2024. Of course, no one model is the sole solution. Carbon 360 is exploring a number of options beyond oil recovery. Declining costs in carbon capture and new technologies are opening the

door to converting CO2 into liquid feedstock for a variety of industrial uses or incorporating it in construction materials, both of which are $8 billion-a-year industries. Such models would

free Carbon 360 to utilize CO2 from sites far removed from oil fields where EOR isn’t viable. There’s no question that the founding of the Carbon 360 team is a game changer for the energy industry. “Think about what this project means,” Stonitsch said. “We’re bringing together the oil and electricity industries while increasing energy independence in the United States — and we’re doing it in a way that improves the environment.”

POWER TO BE FREE | 43 Over the course of 2014, NRG continued to strengthen and position our business to win today, tomorrow and the future by investing across the company while maintaining a steadfast commitment to prudent balance sheet management. These investments run across all of our strategic businesses and drive our ability The Portland facility is expected to to remain successful in the midst of the be converted from coal to cleaner, industry’s imminent transformation. ultra-low sulfur diesel by 2016.

The Alta Wind Energy Center, in Kern County, CA, has a combined installed Enhancing Core capacity of 947 MW. Business In an industry facing long term, potentially disruptive trends, NRG continues to differentiate itself by making investments that not only protect our core asset base but allow us to thrive well into the future. By taking the lead with the largest post-combustion carbon capture project in the world, NRG Carbon

360 has now primed us to take CO2 emissions from our coal plants and turn them into a valuable new revenue stream. Further — and in the spirit of maintaining long term reliability — NRG is investing over $500 MM to convert soon-to-be-retired coal plants, largely in our Northeast Region, into more PHOTO: WIKIPEDIA profitable natural gas or fuel oil plants. INVESTING FOR CHANGE A YEAR IN REVIEW FROM KIRKLAND ANDREWS, CHIEF FINANCIAL OFFICER

44 | POWER TO BE FREE A Goal Zero Ambassador uses a Lighthouse 250 Goal Zero product.

DESIGN: MARK HAYES PHOTO: CHRIS BURKARD

Grow our Retail Leveraging Commitment to Business NRG Yield our Shareholders With the creation of NRG Home, After launching an industry in 2013 As we continue to invest across NRG is now in a position to change through a successful IPO, NRG Yield the business, NRG also continues the nature of how a power company proved in 2014 how the power of its to demonstrate its long-term approaches its relationship with relationship with NRG can drive value commitment of returning capital to consumers. In 2014, we made great to both companies. In June, NRG and our shareholders. In December, we strides in expanding our platform and NRG Yield closed the first ever drop- announced a $100 MM share repurchase capabilities, through key strategic down transaction, resulting in over program. This was in addition to our transactions, to cement us as one of $350 MM of proceeds to NRG. This dividend in February, which provided the leading retail electricity providers was further augmented in January a 17% increase in our annual common in the country. During the spring, we 2015 through the closing of the second stock dividend from $.48 /share to $.56/ expanded by acquiring Dominion’s drop-down transaction, which resulted share. Our platform provides us with retail electric business, adding over in an additional $480 MM of proceeds a wealth of investment opportunities 500,000 new customers to our ranks. to the company. Additionally, NRG to drive high returns for our investors Furthermore, the acquisition of Goal Yield’s successful acquisition of the amidst a transforming industry. Zero makes portable power a viable 947 MW Alta Wind portfolio allows NRG Throughout the year, we’ve maintained solution for enhancing our customers’ to benefit from an expanded renewable our historically disciplined approach experiences with products and services generation portfolio that provides to allocating capital. This effective that keep them powered whenever, stable cash flow and distributions. approach has allowed us to transform wherever and for however long they our company over the past 5 years, need. Lastly, our acquisitions of Roof and by adhering to these standards of Diagnostics Solar and Pure Energies excellence, we position ourselves to have set NRG Home Solar as one of the keep pace with — and outrun — the leading providers of residential solar rapidly impending changes of our solutions in the country — and poised it to industry today, tomorrow and well grow substantially over the coming years. into the future.

POWER TO BE FREE | 45 The stage NRG is putting clean, sustainable energy on the 50-yard line at Levi’s® Stadium

PHOTOS: ERIC MELZER isWORDS: JONATHAN CUMBYset DESIGN: DARCI BECHEN A CLEAN HIT The 375 kW of solar power generated at Levi’s® Stadium powers all 10 of the

team’s home games and, according to the EPA, offsets the CO2 emissions of:

1.7 45 68 750 13,444 36,308 Railcars of coal American homes Passenger vehicles Barrels of oil Propane cylinders Gallons of gasoline

46 | POWER TO BE FREE Football captivates Americans unlike any other sport. We pack stadium parking lots hours before kickoff. We agonize over every play called and every flag thrown. But football is more than a weekly distraction. The gridiron sizzles and pops as a sounding board for social issues, making it the perfect stage for a company championing the push for a clean energy future.

NRG is using its relationships with various professional teams to spotlight sustainable construction and power generation. NRG now has solar installations at six pro football venues, including FedEx Field in Landover, MD; MetLife Stadium in East Rutherford, NJ; Lincoln Financial Field in Philadelphia, PA; NRG Stadium in Houston, TX; and Patriot Place at Gillette Stadium in Foxborough, MA.

But nowhere does that solar-powered spotlight shine brighter than at Levi’s® Stadium, the new home of the San Francisco 49ers. And when talking about NRG and Levi’s® Stadium, no smile is brighter than that of Catherine Parham. After all, she’s responsible for delivering big hits when NRG partners with pro football teams — and she’s crushed yet another one.

“I joined NRG in 2012, and my job was to manage our iconic solar installations for our pro football partners,” said Parham, director of project management for NRG Business. “These projects require a tremendous amount of teamwork and every day brings different challenges, but with the team of people we had specifically on this project, it was extremely fun and rewarding.”

Levi’s® Stadium was completed in July 2014 and is the first venue of its kind in the U.S. to achieve LEED Gold certification. The $1.2 billion project, conveniently nestled in the country’s most innovative community, was built with sustainability in mind.

It had to be.

“You go big or you go home in Silicon Valley,” grinned Parham, who exudes a modest confidence that transfers easily from boardroom to worksite. “They’ll laugh you out of the state if you try to cut corners. And with the amount of people we can touch on any given Sunday, both at the stadium itself and on TV, it was a phenomenal opportunity for NRG. There’s no better platform to spread our message of a sustainable future than that.”

NRG’s four sprawling solar installations and half-dozen eVgo® charging stations are perfect complements to a building that represents the next generation of stadium design. They also showcase yet another successful collaboration with a pro football team.

“Our partnership with NRG is fantastic,” said 49ers chief operating officerAl Guido. “David Crane and NRG came to us and challenged us to build a stadium that was even more sustainable than we had thought.”

POWER TO BE FREE | 47 Fans enter and exit the stadium grounds stadiums. “It was a catch-22. It was With the amount of via three NRG Energy Bridges, which fantastic that we were able to get in on are topped with 640 photovoltaic (PV) the ground floor and design our system people we can touch panels and peppered with multicolored collaboratively with the team, but we also on any given Sunday, NRG plus signs. At night, dynamic LED had to wait for things to be built.” strip lights illuminate the bridges with both at the stadium infinite color capabilities. TheNRG Solar First up was the NRG Solar Terrace. itself and on TV, it was a Terrace, which coincidentally includes 49 The project started in June 2013, after phenomenal opportunity sets of PV panels, sits atop the stadium’s the stadium structure was completed, suite tower on the 20,000 sq. ft. Green and was finished by year’s end. After a for NRG. There’s no Roof next to a garden of 16 drought- short hiatus during which the bridges better platform to tolerant plant species. themselves were being erected, the team returned to top off those spread our message “The NRG Solar Terrace is structures. of a sustainable future unquestionably the most picturesque place [at the stadium] when you look But Parham isn’t the type to sit around, than that. at sustainability,” said Guido. “People so she used the lull between installations —Catherine Parham go up there and they’re just wowed. It’s to add one more sustainable touch to awesome when you go up there and the Levi’s® Stadium experience. people’s jaws drop seeing what we’ve been able to do together.” About 40 percent of electric vehicles One season into its existence, Levi’s® (EVs) sold in the U.S. are bought by Stadium has set the bar for sustainable ® All told, NRG’s solar arrays generate Californians. At Levi’s Stadium, however, construction not just in Silicon Valley, but 375 kW annually — enough to offset EV charging stations weren’t part of the across the globe. Parham is hopeful that the energy needs of all 10 of the team’s original plan. That didn’t stop Parham it will foster tenacity and competitiveness home games. Parham praises the and her team from stepping up when in new builds, the same characteristics installations as a sleek and sexy way the 49ers asked them to incorporate that have made pro football America’s to showcase renewable energy in a charging stations in one of the stadium’s favorite sport. commercial application while also raising parking lots. awareness with residential consumers. “To set the standard for Levi’s® Stadium And, like a tailback waiting for his “Although it wasn’t part of the original and the 49ers and make that kind of linemen to create a running lane, the solution, we were able to fit it in under statement in the heart of Silicon Valley,” NRG crew constructed the arrays with a our existing permits and our existing said Parham, “there’s no excuse not to do combination of patience and speed. construction schedule and get them it elsewhere.” installed,” Parham said of the six NRG “One of the complexities of this project eVgo charging stations, which are was it being built from the ground up,” capable of charging up to a dozen EVs said Parham, who’s run the show for five at a time. of the six NRG projects at pro football

48 | POWER TO BE FREE FORM A TEAM | DEVELOP AN IDEA | GET THE SHARKS TO BITE | WIN UP TO $10K

CO-LAB 2.0 AN NRG PRODUCTION Nurturing innovation is key for NRG to reach new heights, and Co-Lab does just that. Each year, contestants pitch ideas to top executives for a chance to bring them to life. It gives employees a chance to help NRG achieve its long-term sustainability goals, enhance retail and maintain its position at the forefront of energy.

POWER TO BE FREE | 51 It’s

the

little

things

that

count.

Our new sustainability goals are expected to reduce our CO2 emissions by 50% by 2030 with plans for a 90% reduction by 2050. nrg.com/sustainability