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.