GenOn Energy

GenOn Energy, Inc.
Company type	Public (formerly)
Industry	Electric utilities
Predecessor	RRI Energy, Mirant
Founded	2010 (merger forming GenOn Energy)
Defunct	2012 (acquired by NRG Energy)
Fate	Acquired by NRG Energy
Successor	NRG Energy
Headquarters	Houston, United States
Area served	United States (Texas, Pennsylvania, New Jersey, Maryland)
Key people	Edward Muller (Chairman and CEO until 2013), Mark Jacobs (CEO after 2013)
Products	Wholesale electricity generation
Owner	NRG Energy (after 2012)
Number of employees	Over 3,500 (as Reliant in 2007) (2007)
Parent	NRG Energy

GenOn Energy, Inc., based in Houston, Texas, was a prominent independent power producer within the United States, boasting more than 7,000 megawatts of generation capacity derived from natural gas, fuel oil, and coal. The company supplied wholesale electricity to major markets such as Texas, Pennsylvania, New Jersey, and Maryland. Previously operating under the name RRI Energy, GenOn broadened its market reach by acquiring Mirant in December 2010, at which point both former corporate identities and logos were retired.

Operating out of Reliant Energy Plaza in downtown Houston, GenOn held a significant position in the electric utilities sector. In December 2012, NRG Energy finalized a $1.7 billion purchase of GenOn, incorporating its assets and ending the independent stock listing of GenOn. This consolidation resulted in one of the nation’s largest competitive power generation companies, substantially increasing NRG’s market presence and scale of operations.

History

Initially established as Houston Industries (), the firm managed Houston Lighting & Power as a subsidiary. In August 1996, Houston Industries merged with NorAm Energy Corp, a natural gas utility company, forming an organization with assets valued at $18 billion and annual revenues near $9 billion. By late 1997, the company was reportedly exploring acquisition opportunities involving Central & South West Corp.

In 1999, Houston Industries changed its corporate identity to Reliant Energy and adopted the NYSE ticker REI. Following Texas’ electricity market deregulation in 2002, Reliant competed against firms such as Direct Energy and TXU Energy. Subsequently, the company split into two publicly traded firms: Reliant Resources, Inc. and CenterPoint Energy, Inc. ().

The deregulation process led to the division of the former HL&P into Reliant Energy, Texas Genco, and CenterPoint Energy by 2003. CenterPoint Energy emerged from a merger involving Reliant Energy and became a major regulated utility serving approximately 4.7 million customers. In late 2002, CenterPoint distributed shares of Reliant Resources to its shareholders; Reliant Resources concentrated on competitive wholesale and retail energy markets within Texas’ deregulated environment and owned or leased 37 power plants across five U.S. regions.

By January 2007, with Texas fully deregulated, Reliant provided a wide range of products with flexible pricing options to an extensive customer base. It ranked as the second-largest mass market electricity supplier in Texas, generating $10.9 billion in annual revenue and employing over 3,500 staff members. Leadership transitions took place in February 2007 when Mark Jacobs was appointed CEO and Brian Landrum COO.

On May 1, 2009, NRG Energy acquired Reliant Energy’s retail electricity division, which continued operating under the Reliant Energy name; meanwhile, the remaining wholesale business was rebranded as RRI Energy, Inc.

Confronted with financial difficulties, GenOn Energy along with GenOn Americas Generation filed for Chapter 11 bankruptcy protection on June 15, 2017.

Merger forming GenOn Energy

On April 11, 2010, RRI Energy announced an all-stock merger valued at $1.6 billion with Atlanta-based Mirant Corp.. This deal created one of the largest independent power plant operators in the United States. The combined company was named GenOn Energy, headquartered in Houston and initially led by Mirant’s Chairman and CEO Edward Muller until his retirement in 2013; thereafter Mark Jacobs—formerly president and COO of RRI Energy—assumed the CEO role. With an estimated market capitalization near $3 billion, GenOn managed 47 facilities across 12 states with a total generating capacity exceeding 24,650 megawatts. The merger was finalized on December 3, 2010.

California energy crisis

In March 2004, Reliant Energy Services along with four of its executives faced indictment for their purported involvement in the California electricity crisis. The charges included conspiracy to engage in wire fraud and manipulation of commodities markets. This legal action culminated in a $445 million settlement reached in August 2005 with the states of California, Oregon, and Washington, which resolved civil claims tied to electricity transactions during the 2000-2001 crisis period. Furthermore, Reliant incurred a $22.2 million fine in 2007 as part of a settlement with the Federal Energy Regulatory Commission.

Environmental record

Reliant Energy was identified as the 36th-largest corporate emitter of air pollutants in the United States, discharging roughly 34 million pounds of hazardous substances annually, including sulfuric acid, hydrochloric acid, and various heavy metal compounds. In December 2007, the state of New Jersey initiated legal action against Reliant concerning emissions from its Pennsylvania-based Portland Generating Station, a coal-fired facility. The lawsuit alleged violations of the federal Clean Air Act due to pollutants contributing to smog and acid rain crossing into New Jersey's airspace. Following rulings by the Environmental Protection Agency, GenOn declared plans to shut down this plant by 2015.

As part of its commitment to environmental responsibility, Reliant has invested in renewable energy projects utilizing solar power, wind energy, landfill gas recovery, and coal refuse technologies.

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