Texas New Builds and Market Outlook
Q: How will new builds and demand impact Texas power markets?
A: NRG is seeing significant demand growth in Texas, particularly from data centers, and is investing in new generation capacity to meet this need. " " They acknowledge short-term power curve fluctuations due to a warm but not very pricey summer, but believe the long-term market remains strong, with summers in '27 and '28 looking undervalued. " They are confident in their projects under current market conditions, emphasizing their ability to contract and use their generation assets to meet customer needs. " " "

Economics of New Builds Given Forward Curves
Q: Do new builds in Texas make sense given current forward curves?
A: NRG states that if forward curves were depressed, it would impact their decision to proceed with new builds, but they do not believe they are at that point today. " They emphasize that the value of flexible gas generation depends on both power prices and volatility, which remains high. " Therefore, they believe the projects are still economically viable.

PJM Capacity Prices and New Build Opportunities
Q: Are higher PJM capacity prices prompting new build considerations?
A: The recent PJM capacity auction results are constructive but unlikely to spur immediate new generation due to interconnection queue delays and supply chain challenges. " " " NRG has sites in PJM and views the capacity prices as supportive of development, but does not expect a rush of new builds based on one auction print. " Realistically, new gas plants would not come online before 2030 due to these challenges. "

Data Center Opportunities and Brownfield Sites
Q: What's the status of data center opportunities on your brownfield sites?
A: NRG is receiving significant interest in their brownfield sites for data center development. " " They are conducting a strategic review to determine the best approach to maximize value, indicating that there may be more value than initial bids suggest. " They plan to share more details, potentially before the end of the year. " "

Transition to EPS Reporting
Q: Are you changing your disclosures to EPS reporting?
A: NRG is working towards transitioning to EPS reporting, targeting the third quarter earnings as the optimal time to make this change. " Their thoughts have evolved, and they are planning accordingly. "

Impact of Economic Outlook on Retail Business
Q: Is a softening consumer impacting your retail and smart home business?
A: NRG reports strong performance in their retail and smart home businesses, with 5% year-over-year subscriber growth and 7% revenue growth in the Smart Home segment. " They attribute this to a high-quality customer base with average FICO scores over 700, and see opportunities for continued growth despite broader economic conditions. "

Regulatory Changes in New England Retail Market
Q: How might New England regulatory reviews affect your retail business?
A: NRG is closely monitoring regulatory changes in the Northeast but expects minimal impact on their earnings. " For example, changes in Maryland affect a very small part of their earnings stream. " Overall, their retail business delivered strong results, with 8% subscriber growth, double-digit volume growth, and strong margins. "

Potential Divestitures of Non-Core Assets
Q: Are you considering selling more non-core assets?
A: NRG is always looking to optimize their portfolio but does not currently have any assets identified for divestiture. " They remain open to opportunities if attractive offers arise, given their range of investment opportunities and undervalued stock. "

Allocation of Proceeds from HVAC Divestiture
Q: How will you allocate the $400 million from the HVAC sale?
A: NRG will provide more visibility on the allocation once the sale closes and they receive the proceeds. " They indicate that the allocation will remain consistent with their capital allocation principles. "

Timing of TEF Project Announcements
Q: When will we know which TEF projects proceed to due diligence?
A: The Public Utility Commission of Texas (PUCT) is expected to issue an order or draft order listing the projects moving forward towards due diligence at their August 29 meeting. "

Strategic Direction Under New CEO
Q: How is your strategic trajectory changing under new leadership?
A: NRG's strategy remains consistent, focusing on being supply optimal rather than asset-light. " They are increasing their generation assets to meet growing customer demand but continue to utilize a mix of generation and other instruments to optimize their supply portfolio. "

Managing Downside Risk in Mild Texas Summer
Q: How are you managing risks if Texas has a mild summer?
A: NRG manages downside risk by adjusting operations, including turning down assets in unconstructive markets. " They consider both up and down scenarios in their planning and remain confident in their guidance. "