The transaction, completed on September 8, was structured to offset the potential costs to NRG if a hurricane were to affect its business in the Houston, Texas area. Called the Willis Hurricane Load-Protection, the product allows NRG to lower hurricane risk hedging costs by adding two energy variables into the payout formula. It also guarantees any payout would not require a prolonged claims-handling process.
The deal term is through October 2009. Other key terms and conditions of the transactio