Letter to Stakeholders

This article was originally published by Mauricio Gutierrez, a former NRG Energy employee, who served as President and CEO of NRG Energy.

Dear NRG Stakeholders: 

Earlier this year, I shared with investors our vision on how NRG is redefining power: placing customers at the center of our business and recognizing that new technologies are enabling consumers to engage with electricity like never before. Our strategic shift toward a greater customer focus will inform everything we do – from the products and services we offer, to the make up of our generation portfolio, to the way we are organized and work internally. This path creates value for all of our stakeholders – employees, customers, partners, and investors – today and well into the future.  

Arriving at this place on our journey has neither been easy nor accidental. We recognized significant changes in the competitive power industry – and adapted quickly and decisively to position the company for long-term success. Low natural gas prices and abundant renewable energy have disrupted the traditional power generation business model. At the same time, new technologies are enabling unprecedented consumer engagement and opening up a world of possibilities for how and when their energy is consumed. As value and control in the power industry moves from centralized generation plants to consumers, our position as the leading retail energy provider represents an extraordinary, actionable opportunity for NRG. 

We know that our own internal transformation is critical to long-term success as we evolve and adapt to the changing dynamics in our industry. When I became CEO, it was clear that we were trying to be too many things to too many people. So, in 2016, we set out to streamline and strengthen our business. A year later, we accelerated that effort with the announcement of a three-year transformation plan aimed at better balancing our retail and generation position, while creating significant long-term shareholder value. Our efforts have already led to $3 billion in announced asset sale proceeds, a path to 60 percent debt reduction, the acquisition of retail provider XOOM, and the opportunity to generate nearly $8 billion in excess cash during the next five years (equivalent to 80 percent of our market capitalization today). I cannot think of many companies that will have this financial flexibility in the near term.

Successful execution of our transformation requires continued focus on our people and our values. NRG has long been made up of passionate, innovative and dedicated employees – they are our greatest strength and I am committed to providing a workplace where they can achieve their full potential. In 2017, we demonstrated that focus by achieving our second best safety record and tracking ahead of our sustainability goals – including our carbon reduction targets – which are among the most aggressive for any company.  

NRG will continue to build on its strong foundation of safely generating electricity and selling it to our customers. By adapting our business to stay ahead of market challenges and placing customers at the forefront of a sustainable energy future, we have the rare opportunity to be a force of change in the industry. Power is a resource, full of potential, with the flexibility to fulfill individualized solutions, and as we bring to life a more integrated and balanced model, we stand ready to lead.

We look forward to having you on this journey with us.

Sincerely,

Mauricio Gutierrez, President and CEO