EX-12.2 10 exhibit1222017.htm EXHIBIT 12.2
EXHIBIT 12.2
NRG ENERGY, INC. AND SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS

| For the Year Ended December 31,
| 2017 |  | 2016 |  | 2015 |  | 2014 |  | 2013(a)
| (in millions except ratio)
Earnings: |  |  |  |  |  |  |  |  |
(Loss)/income from continuing operations before income tax | $ | (1,540 | ) |  | $ | (978 | ) |  | $ | (4,986 | ) |  | $ | (74 | ) |  | $ | (585 | )
Less: |  |  |  |  |  |  |  |  |
Distributions and equity in earnings of unconsolidated affiliates | 55 |  |  | 54 |  |  | 37 |  |  | 49 |  |  | 84 |
Impairment charge on equity method investment | 74 |  |  | 268 |  |  | 56 |  |  | — |  |  | 99 |
Capitalized interest | (34 | ) |  | (30 | ) |  | (25 | ) |  | (18 | ) |  | (116 | )
Preference dividends - tax effected | — |  |  | (8 | ) |  | (32 | ) |  | (90 | ) |  | (14 | )
Add: |  |  |  |  |  |  |  |  |
Fixed charges | 939 |  |  | 950 |  |  | 1,010 |  |  | 1,054 |  |  | 801 |
Amortization of capitalized interest | 22 |  |  | 21 |  |  | 20 |  |  | 19 |  |  | 16 |
Total Earnings: | $ | (484 | ) |  | $ | 277 |  |  | $ | (3,920 | ) |  | $ | 940 |  |  | $ | 285 |
Fixed Charges: |  |  |  |  |  |  |  |  |
Interest expense | $ | 831 |  |  | $ | 839 |  |  | $ | 891 |  |  | $ | 889 |  |  | $ | 622 |
Interest capitalized | 34 |  |  | 30 |  |  | 25 |  |  | 18 |  |  | 116 |
Amortization of debt issuance costs | 41 |  |  | 38 |  |  | 37 |  |  | 35 |  |  | 33 |
Amortization of debt (premium)/discount | 19 |  |  | 19 |  |  | 10 |  |  | 8 |  |  | 4 |
Approximation of interest in rental expense | 14 |  |  | 16 |  |  | 15 |  |  | 14 |  |  | 12 |
Preference dividends - tax effected | — |  |  | 8 |  |  | 32 |  |  | 90 |  |  | 14 |
Total Fixed Charges: | $ | 939 |  |  | $ | 950 |  |  | $ | 1,010 |  |  | $ | 1,054 |  |  | $ | 801 |
Ratio of Earnings to Combined Fixed Charges and Preference Dividends | (0.52 | ) |  | 0.29 |  |  | (3.88 | ) |  | 0.89 |  |  | 0.36 |

(a) | The ratio coverage for the years ended December 31, 2017, 2016, 2015, 2014, and 2013 was less than 1:1. NRG would have needed to generate additional earnings of $1,416 million, $673 million, $4,930 million, $114 million, and $516 million, respectively, to achieve a ratio coverage of 1:1 for those years.