NRG · 10-Q · 2026Q2 · Full report

Market Demand Trends

NRG ENERGY, INC. · 2026-08-04 · Importance 10 · Surprise 6

NRG’s significant Level 3 market positions include physical and financial natural gas, power, capacity contracts, renewable energy certificates (RECs), financial transmission rights (FTRs), and power options executed in illiquid markets. Forward capacity prices incorporate forecasted future electricity demand and supply, historical auctions, and internally developed pricing models, while natural gas and power location pricing is derived from liquid-market prices and basis spreads. As of June 30, 2026, NRG had energy-related derivative instruments extending through 2036 and executed contracts qualifying for the normal-purchases-and-normal-sales exception through 2037. For the six months ended June 30, 2026, open economic hedge positions were adversely affected primarily by decreases in natural gas prices and CAISO and Alberta power prices, compared with higher ERCOT power prices driving gains in the prior-year period.

Key facts

• Average Henry Hub natural gas price for the six months ended June 30, 2026 was $3.97/MMBtu and for 2025 was $3.55/MMBtu source
• NRG participates in CAISO, ERCOT, AESO, IESO, ISO-NE, MISO, NYISO and PJM organized markets (RTOs/ISOs). source
• NRG enters into foreign exchange contract agreements primarily to mitigate foreign exchange rate risk associated with the purchase of U.S. dollar denominated natural gas for the Company’s Canadian business. source