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NRG to Shift Green Energy to Separate Company

Three years after spinning out a yieldco to operate its green energy assets, NRG Energy Inc. (NRG) said Friday morning that it now plans to create another new company, called “Greenco” for current purposes. NRG’s yieldco, NRG Yield Inc. (NYLD), would presumably acquire assets from Greenco as it currently does from NRG.

NRG is trying to solve its problems of access to and cost of capital. Forming a new company to focus on its green energy business simplifies the parent company’s management and cost structure to help NRG shrink its balance sheet by reducing operating...