38 unchanged sentences
Risks surrounding counterparty performance and credit could ultimately impact the amount and timing of expected cash flows.
−Removed: The Company seeks to mitigate counterparty risk by having a diversified
−Removed: portfolio of counterparties.
+Added: The Company seeks to mitigate counterparty risk by having a diversified portfolio of counterparties.
The Company also has credit protection within various agreements to call on additional collateral support if and when necessary.
34 unchanged sentences
The losses may result from both nonpayment of customer accounts receivable and the loss of in-the-money forward value.
−Removed: The Company manages retail
−Removed: credit risk through the use of established credit policies, which include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements.
+Added: The Company manages retail credit risk through the use of established credit policies, which include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements.
As of December 31, 2025, the Company's retail customer credit exposure to Home and Business customers was diversified across many customers and various industries, as well as government entities.
1 unchanged sentence
The Company's provision for credit losses resulting from credit risk was $272 million, $314 million and $251 million for the years ended December 31, 2025, 2024 and 2023, respectively.
−Removed: During the year ended December 31, 2022, the provision for credit losses included the Company's loss mitigation efforts recognized as income of $126 million related to Winter Storm Uri.
Liquidity Risk
4 unchanged sentences
Interest Rate Risk
−Removed: NRG is exposed to fluctuations in interest rates through its issuance of variable rate debt.
−Removed: Exposures to interest rate fluctuations may be mitigated by entering into derivative instruments known as interest rate swaps, caps, collars and put or call options.
−Removed: These contracts reduce exposure to interest rate volatility and result in primarily fixed rate debt obligations when taking into account the combinations of the variable rate debt and the interest rate derivative instrument.
−Removed: NRG's risk management policies allow the Company to reduce interest rate exposure from variable rate debt obligations.
−Removed: In November 2024, the Company entered into $700 million of interest rate swaps through 2029 to hedge the floating rate on the Term Loans.
+Added: NRG is exposed to fluctuations in interest rates through its issuance of debt.
+Added: Exposures to interest rate fluctuations may be mitigated by entering into derivative instruments known as interest rate swaps, treasury locks, caps, collars and put or call options.
+Added: These contracts reduce exposure to interest rate volatility when taking into account the combinations of the debt and the interest rate derivative instrument.
+Added: NRG's risk management policies allow the Company to reduce interest rate exposure.
+Added: As of December 31, 2025, the Company had $700 million of interest rate swaps extending through 2029 to mitigate the risk of the floating rate of the Term Loan B.
+Added: NRG has both short and long-term debt instruments that subject the Company to the risk of loss associated with movements in market interest rates.
+Added: As of December 31, 2025, a 1% change in variable interest rates would result in a $16 million change in interest expense on a rolling twelve-month basis.
As of December 31, 2025, the Company's debt fair value was $16.4 billion and carrying value was $16.6 billion.
18 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.