Allot of talk on the NRG board lately about them vs. us this NRG vs. CPN that....Are they "more diversified"? Does it matter long term? They held up a little better than we did today. So what? Compared to Calpine they're the new kid on the block. We have history and proven results through good times and bad. What do they have?!
From a power generation perspective they have been in the game a long time. They were also one of the companies that more forward thinking utilities spun off to take advantage of PURPA. In this case the parent being Northern States Power now known as Excel. I have seen utility spin offs succeed and fail. NRG seems to have a pretty conservative approach but they do have fuel diversity. That will mean profits near term. If those profits from aging plants are plowed back in to repowering and low emissions coal facilities they certainly could be a big player. I like em both. Bottom line on fuel diversity is the margins that can be achieved when a particular fuel such as gas is high and consequently wholesale electricity is high and plants burning cheaper fuels such as coal enjoy those high prices.