Exhibit 99.1

Thermal Assets

(Combined Financial Statements of Certain Wholly

Owned Subsidiaries of GDF SUEZ Energy North

America, Inc., See Note 1)

Combined Financial Statements and Independent

Auditors’ Report as of December 31, 2015 and 2014

and for the Years Ended December 31, 2015, 2014,

and 2013

INDEPENDENT AUDITORS’ REPORT

To the Executive Leadership Committee of

GDF SUEZ Energy North America, Inc. and subsidiaries:

We have audited the accompanying combined financial statements of the Thermal Assets, as defined in Note 1, (the “Company”), which comprise the combined balance sheets as of December 31, 2015 and 2014, and the related combined statements of (loss) income and comprehensive (loss) income, parent’s equity, and cash flows for the three years ended December 31, 2015, and the related notes to the combined financial statements.

Management’s Responsibility for the Combined Financial Statements

Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditors consider internal control relevant to the Company’s preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of the Company as of December 31, 2015 and 2014, and the results of its operations and its cash flows for the three years ended December 31, 2015 in accordance with accounting principles generally accepted in the United States of America.

Emphasis of Matter

As described in Note 2, the combined financial statements have been derived from the consolidated financial statements and accounting records of GDF SUEZ Energy North America, Inc. The combined financial statements also include expense allocations for certain corporate functions historically provided by GDF SUEZ Energy North America, Inc. These allocations may not be reflective of the actual expense which would have been incurred had the Thermal Assets operated as a separate entity apart from GDF SUEZ Energy North America, Inc. Our opinion is not modified with respect to this matter.

As discussed in Note 14 to the combined financial statements, on February 24, 2016, International Power S.A. signed a Stock Purchase Agreement with Atlas Power Finance, LLC to sell GDF SUEZ Energy North America, Inc. and certain subsidiaries which includes 100% of the Company and is expected to close in 2016. Our opinion is not modified with respect to this matter.

/s/ Deloitte & Touche LLP

June 11, 2016

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THERMAL ASSETS

COMBINED BALANCE SHEETS

AS OF DECEMBER 31, 2015 AND 2014

(In thousands)

(Continued)

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THERMAL ASSETS

COMBINED BALANCE SHEETS

AS OF DECEMBER 31, 2015 AND 2014

(In thousands)

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THERMAL ASSETS

COMBINED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME

FOR THE YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013

(In thousands)

See notes to combined financial statements.

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THERMAL ASSETS

COMBINED STATEMENTS OF PARENT’S EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013

(In thousands)

See notes to combined financial statements.

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THERMAL ASSETS

COMBINED STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013

(In thousands)

See notes to combined financial statements.

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THERMAL ASSETS

NOTES TO COMBINED FINANCIAL STATEMENTS

AS OF DECEMBER 31, 2015 AND 2014 AND FOR THE YEARS ENDED DECEMBER 31, 2015, 2014, AND 2013

Index to Notes to Combined Financial Statements

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1.                   DESCRIPTION OF BUSINESS

These combined financial statements include the following legal entities (ANP Bellingham Energy Company, LLC, ANP Blackstone Energy Company, LLC, ANP ERCOT Acquisition, LLC, ANP Fuel Services, Inc., ANP Funding I, LLC, Armstrong Power, LLC, Calumet Energy Team, LLC, Coleto Creek Power, LP, Coleto LP, LLC, Coleto GP, LLC, Ennis Power Company, LLC, Hays Energy, LLC, Hopewell Cogeneration, LLC, Hopewell Cogeneration Limited Partnership, IPA APT Generation, LLC, IPA Central, LLC, IPA Operations, Inc., Midlothian Energy, LLC, Milford Power, LLC, NEPCO Services Company, Northeastern Power Company, Pleasants Energy, LLC, Prince George Energy Company, LLC, T-Fuels, LLC, Tractebel Associates Northeast LP, Inc., Tractebel Northeast Generation GP, Inc., Troy Energy, LLC, Wharton County Generation, LLC, Wise County Power Company, LLC, Wise-Fuels Pipeline, Inc.) (collectively, “Thermal Assets” or the “Company”) who collectively own certain power-generating facilities as shown in the table below. The Company is engaged in owning and operating retail, industrial, and non-utility wholesale power-generating facilities. The Company is owned by GDF SUEZ Energy North America, Inc. (GSENA or the “Parent”). GSENA is a wholly owned subsidiary of International Power, S.A. (IP), a Belgian company. IP is a wholly owned subsidiary of ENGIE S.A., formerly GDF SUEZ S.A., (ENGIE), a French-domiciled company. As ENGIE owns 100% of IP in 2013, 2014, and 2015, it is considered GSENA’s ultimate parent (the “Ultimate Controlling Party”).

Power-generating facilities included in the Thermal Assets are listed below and are 100% owned, with the exception of the Northeast Energy Associates and North Jersey Energy Associates assets, which are 50% owned.

GSENA performs management and administrative activities that support the Thermal Assets and all other GSENA entities. These activities include executive oversight, accounting, treasury, tax, legal, procurement, and information technology. These activities are referred to as “GSENA Corporate”. GSENA will be included in the sale described in Note 14, which is not included in the definition of the business for these combined financial statements.

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GSENA owns GDF SUEZ Energy Generation North America (GSEGNA). GSEGNA performs support activities for the Thermal Assets and other generation asset entities.

GSENA owns GDF SUEZ Energy Marketing North America (GSEMNA). GSEMNA engages in risk management and brokering activities that support the Thermal Assets and all other business units within GSENA. Activities within GSEMNA that support the Thermal Assets are (i) Gas Storage, which is all related to Thermal Assets, (ii) Local Portfolio Management (LPM), which only supports GSEGNA activities, including Thermal Assets, and (iii) all other activities which support the entirety of GSENA, including Thermal Assets.

For the combined financial statements, GSENA, GSEGNA, and GSEMNA are considered related parties of the Thermal Assets.

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2.                   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Index to Accounting Policies

A.            Basis of Presentation and Principles of Combination—The combined financial statements include the accounts of the Thermal Assets, which are entities under common control and management. All intercompany transactions and accounts between the Thermal Assets have been eliminated. All affiliate transactions between the Thermal Assets and GSENA and its subsidiaries, have been included in these combined financial statements as related party transactions.

The combined financial statements include certain assets and liabilities that have historically been held at the GSENA level but are specifically identifiable or otherwise attributable to the Company. The Company prepared its combined financial statements using the accrual basis of accounting and in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). The Company’s combined financial statements have been prepared under the historical cost convention, except for certain derivative financial instruments, share-based compensation, and fixed assets which have been impaired (see Note 4) are measured at fair value. The policies set out below have been consistently applied to all years presented.

Recent Accounting Pronouncements:

Accounting Standards Update (ASU), Revenue from Contracts with Customers (Topic 606). In May 2014, the Financial Accounting Standards Board (FASB) issued revised accounting guidance for revenue recognition from contracts with customers. The core principle of this guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this update also require disclosure of sufficient

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information to allow users to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. For the Company, this guidance is effective for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the requirements. The ultimate impact of the new standard has not yet been determined.

In July 2015, the FASB issued an update which will require an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This update is effective on a prospective basis for interim and annual periods beginning after December 15, 2016, with early adoption permitted. Inventory is already valued at the lower of cost or net realizable value, so there will be no impact of this update on the combined financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740). This update requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in the classified balance sheet and eliminates the requirement to allocate a valuation allowance on a pro rata basis between gross current and noncurrent deferred tax assets. The Company early adopted the provisions of this ASU, applied retrospectively as of January 1, 2013 as this is the first issuance of the Company’s combined financial statements.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This update requires the recognition of lease assets and lease liabilities by lessees for leases classified as operating leases under previous U.S. GAAP. For the Company, this guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the requirements. The ultimate impact of the new standard has not yet been determined.

B.            Use of Estimates—The preparation of combined financial statements in conformity with U.S. GAAP requires management to make estimates and judgments that affect the reported amount of assets, liabilities, revenues, and expenses, as well as disclosures of contingent assets and liabilities. Significant estimates and judgments affecting the combined financial statements are reviewed on a recurring basis, and we record the effect of any necessary adjustments. Uncertainties with respect to such estimates and judgments are inherent in the preparation of combined financial statements. Estimates and judgments are used in, among other things, (i) developing fair value assumptions to determine the fair value of financial instruments, including derivatives, that are not actively listed on a market, (ii) estimating the useful lives of our assets and asset retirement obligations (AROs), (iii) assessing future tax exposure and the realization of deferred tax assets, (iv) determining amounts to accrue for contingencies, which include expenditure timing, the discount rate applied to future cash flows, and the actual level of expenditure, and (v) valuing the pension assets and liabilities using models with actuarial assumptions. Delineated within the notes to the combined financial statements are areas involving at a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the combined financial statements. Actual results could differ from the estimates. Management believes the estimates and assumptions used are reasonable.

B.1 Allocation of Corporate Expenses—The combined statements of (loss) income and comprehensive (loss) income also includes expense allocations for certain corporate functions performed by GSENA and its subsidiaries which have not been historically allocated to the Thermal Assets, including allocations of general corporate expenses related to executive oversight, accounting, treasury, tax, legal, procurement, and information technology. These expenses were systematically allocated to the Thermal Assets based on the percentage of revenues of the Thermal Assets entities to total GSENA revenues and in certain cases based on headcount. Expenses allocated to the Thermal Assets were $49.7 million, $49.8 million, and $54.6 million for the years ended December 31, 2015, 2014, and 2013, respectively, and are included in other operating

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expenses—net in the combined statements of (loss) income and comprehensive (loss) income. These amounts are included in net contribution from parent in the combined statements of parent’s equity. Also included in this line are other non-cash adjustments primarily for interest expense, income taxes, and the legal contingency. Intercompany transactions between Thermal and GSENA have been included in these combined financial statements and are considered to be effectively settled for cash in the combined financial statements at the time the transaction is recorded. The total net effect of the settlement of these intercompany transactions is reflected in the combined statements of cash flows as a financing activity and in the combined balance sheets as parent equity. Management believes the assumptions underlying the combined financial statements, including the assumptions regarding allocating balances are reasonable. Nevertheless, the combined financial statements may not include all of the actual expenses that would have been incurred had the Thermal Assets been a stand-alone company during the periods presented. Actual costs that would have been incurred if the Thermal Assets had been a stand-alone company would depend on multiple factors, including organizational structure and strategic decisions made in various areas.

C.            Cash and Cash Equivalents—Cash and cash equivalents comprise cash on hand, deposits held on call with banks, and other short-term and highly liquid investments with original maturities of three months or less. Bank overdrafts are included in trade and other payables in the combined balance sheets.

D.            Cash Pool Arrangement—GSENA addresses cash flow needs of its subsidiaries by participating in a cash pool arrangement. The terms of the cash pool arrangement are determined by ENGIE. The cash pool provides for the subsidiaries of GSENA with excess funds to temporarily loan funds into the cash pool so that subsidiaries in need of funds can temporarily borrow from the pool. The Thermal Assets utilized this arrangement. In 2013, 2014, and 2015, interest was earned at the London Interbank Offered Rate (LIBOR) plus or minus a spread of basis points (bps) ranging from plus 5 bps to minus 9 bps if the subsidiary is a net lender to cash pool. Interest was paid at LIBOR plus a spread of bps ranging from 37 bps to 75 bps if the subsidiary is a net borrower from the pool. On a combined basis, the Thermal Assets borrowed $265.4 million and $306.7 million at December 31, 2015 and 2014, respectively, which is included in the current portion of long-term debt. Interest expense related to the cash pool arrangement was $3.1 million, $3.7 million, and $1.1 million for the years ended December 31, 2015, 2014, and 2013, respectively. The outstanding cash pool balance will be repaid using funding from a capital injection from GSENA before the close of the sale described in Note 14.

E.            Inventory—Inventories are measured at the lower of cost or net realizable value. Natural gas and other fuel inventories are determined using the first-in, first-out method or weighted-average cost method.

Since emission rights are consumed in the production process, they are classified as inventory. Emission rights granted free of charge are recorded in the combined balance sheets at a zero value, and emission rights purchased are recognized at acquisition cost.

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Major classes of inventory at December 31, 2015 and 2014 were as follows (in thousands):

F.             Derivatives and Risk Management—The Company’s overall risk management program focuses on the unpredictability of commodity and financial markets and seeks to minimize potential adverse effects on the Company’s financial performance. The Company uses derivative instruments to hedge certain risk exposures, such as interest rates and commodity prices. Derivatives are recognized and measured in accordance with Accounting Standards Codification (ASC) 815, Derivatives and Hedging (ASC 815). (See Note 6)

F.1 Definition and Scope of Derivative Instruments—Derivative instruments include swaps, options, futures and swaptions, as well as forward commitments to purchase or sell listed and unlisted securities, and firm commitments or options to purchase or sell nonfinancial assets that involve physical delivery of the underlying commodity. Electricity and natural gas purchase and sale contracts are analyzed systematically to determine whether they represent purchases and sales arising in the normal course of business, whereby they may not fall within the scope of ASC 815.

There are three different ways to account for these types of contracts: (i) as an accrual contract, if the criteria for the “normal purchase, normal sale” (NPNS) exception are met and documented; (ii) as a cash flow or fair value hedge, if the criteria are met and documented; or (iii) as a mark-to-market contract with changes in fair value recognized in current period earnings. All derivative commodity contracts that do not qualify for the NPNS exception are recorded at fair value in risk management assets and liabilities on the combined financial statements with the associated changes in fair value recorded currently in earnings.

F.2 Contracts Qualifying for the NPNS Exception—Contracts that are held for the purpose of the receipt or delivery of a non-financial item in accordance with the Company’s expected purchase, sale or usage requirements qualify for the NPNS scope exception. The contracts must physically settle, have contract terms in line with the entity’s requirements or business needs and an assessment and conclusion must be documented. Income recognition and realization related to NPNS contracts generally coincide with the physical delivery of the commodity. For contracts qualifying for the NPNS exception, no recognition of the contract’s fair value in the combined financial statements is required as long as it remains probable that the contract will not settle net and will result in physical delivery.

F.3 Cash Flow Hedge Accounting: Recognition and Presentation—Derivative instruments qualifying as a cash flow hedge are recognized in the combined balance sheet and measured at fair value. Cash flow hedges are hedges of the exposure to variability in cash flows that could affect the Company’s income. The hedged cash flows may be attributable to a particular risk associated with a recognized financial or nonfinancial asset or a highly probable forecasted transaction. The portion of the gain or loss on the hedging instrument determined to be an effective hedge is recognized directly in equity, net of tax, while the ineffective portion is recognized in income. Gains or losses accumulated in equity are reclassified to the combined statements of income under the same caption as the loss or gain on the hedged item (i.e. electricity and the Company’s sales and fuel purchases

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and other costs of operations for operating cash flows and other financial expenses, net for other cash flows) within the same periods the hedged cash flows affect income. When the hedging relationship is discontinued due to the hedge no longer being considered effective, the cumulative gain or loss on the hedging instrument remains separately recognized in equity until the forecasted transaction occurs. However, when a forecasted transaction is probable of not occurring, the cumulative gain or loss on the hedging instrument is recognized immediately in the line item on the combined statement of income where the forecasted transaction was expected to be recorded.

F.4 Derivative Instruments Not Qualifying for NPNS exception or Hedge Accounting—These items mainly concern derivative instruments used in economic hedges that have not been, or are no longer, documented as hedging relationships for accounting purposes. When a derivative instrument does not qualify, or no longer qualifies, for hedge accounting, changes in fair value are recognized directly in earnings, under mark-to-market on commodity contracts in the combined statements of income for derivative instruments with nonfinancial assets as the underlying, and in other financial expenses, net for interest rate derivatives.

F.5. Balance Sheet Offsetting—The Company offsets recognized derivative assets and liabilities as permitted when the ability and intent to settle such assets and liabilities on a net basis exists. Netting occurs on an entity and counterparty basis.

G.           Fair Value Instruments—Fair Value of Financial Instruments and Derivatives—Accounting standards define fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The Company utilizes the market approach and income approach to measure the fair value of commodity derivative instruments. Inputs include quoted prices and forecasted market prices. For liabilities measured at fair value, the Company considers the existence of inseparable third-party credit enhancements in the fair value measurement of the liability. As of December 31, 2015 and 2014, the Company had no inseparable third-party credit enhancements.

The Company classifies the fair value measurements in its combined financial statements using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The hierarchy splits measurements into three levels. Level 1 includes only those fair value measurements that are taken directly from unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 includes inputs other than quoted prices included in Level 1 that are observable either directly or indirectly. Finally, Level 3 inputs are those that are not based on observable market data. Periodically throughout the year, the Company reviews the availability of third party quotes and other market data for each of the price curves used in forward contract valuation.

Assets and liabilities reflect the total fair value for all maturities of individual financial instruments and derivatives, and are calculated based on the fair value of each contract.

H.           Property, Plant, and Equipment—Property, plant, and equipment is recorded at historical cost and includes all expenditures necessary to prepare an asset for operation, including qualifying interest incurred during the construction period.

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Depreciation is computed using straight-line methods over the following estimated useful lives of the assets:

Gains and losses on sales of individual assets or asset groups are reflected in loss on disposal of assets in the combined statements of income and comprehensive income.

The Company has entered into various long-term service agreements (LTSA) and long-term warranty agreements (LTWA) whereby it pays a periodic fee for routine maintenance, major maintenance, and replacement of specific parts covered under the various agreements. The Company has elected to account for these costs under the deferral method and recognize property, plant, and equipment. The fees paid under these agreements that relate to parts and major maintenance are recorded as a prepaid expense and included in prepaid expenses in the combined balance sheets until the maintenance is performed, at which time they are reclassified to property, plant and equipment or operating and maintenance expense, as appropriate. Prepaid expenses related to major maintenance, respectively, were $103.8 million and $96.9 million as of December 31, 2015 and 2014. If major maintenance services are performed for an amount above the prepaid balance, a liability is recorded for that payable due and is included in trade and other payables in the combined balance sheets. Payables related to major maintenance, respectively, were $8.6 million and $20.9 million as of December 31, 2015 and 2014. The changes in balances of the prepaid expenses and payables related to major maintenance are included in investing activities on the combined statement of cash flows. Costs related to routine maintenance are expensed when incurred.

I.                Goodwill—The Thermal Assets are a single reporting unit for purposes of goodwill impairment testing. Goodwill is measured as the excess of the aggregate of (1) the consideration transferred; (2) the amount of a non-controlling interests in the acquiree; and (3) in a business combination achieved in stages, the acquisition-dated fair value of the previously held equity interest in the acquiree; over the net of the acquisition-date fair values of the identifiable assets acquired and the liabilities assumed. The Thermal Assets were previously part of one larger reporting unit at the Parent. For any acquisitions that resulted in goodwill, it was recorded at the Parent. Goodwill was allocated to the Thermal Assets for the specific entities for which their initial acquisition resulted in goodwill. Goodwill was fully impaired in 2015. See Note 2 K.

J.              Intangibles—The Company carries intangible assets at cost, less any accumulated amortization and any accumulated impairment losses. Costs incurred to renew or extend the terms of an intangible asset are accounted for as an intangible asset. The majority of the Company’s intangible assets are water rights and have an indefinite life, as there is no foreseeable limit to the period over which the asset is expected to generate net cash inflows. The carrying amount of water rights is $13.6 million for all periods presented and there have been no historical impairments.

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K.           Impairment of Property, Plant, and Equipment, Goodwill, and Intangible Assets—The carrying value of property, plant and equipment, goodwill, and intangible assets is assessed to determine if an impairment is indicated when events or changes in the market environment or on internal sources of information indicate that the carrying value of such assets may not be recoverable. Items of property, plant, and equipment, goodwill and intangibles are tested for impairment at the asset group level.

If any such indication of impairment exists, the Company makes an estimate of its recoverable amount. An asset’s recoverable amount is the higher of its fair value, less costs to sell, or its value-in-use. Value-in-use is primarily determined based on the present value of future operating cash flows and a terminal value. Standard assumptions are used, including:

·                  Discount rates based on the specific characteristics of the operating entities concerned; and

·                  The terminal values in line with the available market data specific to the operating segments concerned and growth rates associated with these terminal values, not to exceed the inflation rate.

Discount rates are determined on a post-tax basis and applied to post-tax cash flows. The recoverable amounts calculated on the basis of these discount rates are the same as the amounts obtained by applying the pre-tax discount rates to cash flows estimated on a pre-tax basis.

Upon recognition of an impairment loss, the depreciable amount, and possibly the useful life of the property, plant, and equipment item, is revised. Impairment losses are recorded in the impairment of property, plant, and equipment, goodwill, and intangible assets line in the combined statements of (loss) income and comprehensive (loss) income (see Note 4).

In testing the goodwill of each reporting unit, the fair value of the reporting unit is compared to the carrying value of its assets, including goodwill. If the fair value of the reporting unit is less than its carrying value, the fair value of the reporting unit is then measured against the fair value of its underlying assets and liabilities, excluding goodwill, to estimate an implied fair value of the reporting unit’s goodwill. An impairment loss is recognized for any excess of the carrying value of the reporting unit’s goodwill over the implied fair value of that goodwill after adjusting for any impairment of indefinite-lived intangible assets or long-lived assets. The Company has determined that it has one reporting unit.

In the annual goodwill impairment testing, fair value is determined using an income approach. The Company’s estimate of the cash flows the operations will generate in future periods forms the basis for most of the significant assumptions inherent in the impairment reviews and was developed using significant unobservable inputs (Level 3). The valuation technique used is a discounted cash flow method based on management’s estimates of forecasted cash flows, with those cash flows discounted to present value using a rate commensurate with the risk of those cash flows. Assumptions (e.g., cost of capital, growth rate into perpetuity, forecasted revenue, operating costs, and forecasted capital expenditures) used by management were similar to those that would be used by market participants performing valuations of the business and were based on analysis of current and expected economic conditions.

At December 31, 2015, the Thermal Assets were included in a disposal group that was classified as held-for-sale by its Ultimate Controlling Party due to the pending sale discussed in Note 14. This qualified as a triggering event to review goodwill for impairment at December 31, 2015. Due to the pending sale, the fair value was determined by using the market approach (Level 3) and the purchase price offered for the Thermal Assets was used. The result of the test was a full impairment of

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goodwill in the amount of $576.3 million which was the excess of the carrying amount of goodwill over its implied fair value as calculated in the annual impairment test.

L.            Other Current Liabilities—Other current liabilities are comprised of accruals for property taxes, personnel costs, and severance that are payable in less than one year.

M.         Revenue Recognition—Revenues from the sale of electricity and thermal power are recorded based upon output delivered at rates specified under long-term power supply contracts, rate orders, or market-based prices determined by the relevant power exchange. Capacity payments received under certain long-term energy contracts are fixed, rather than being based on volumes. The fixed amount changes over the term of the contract. Revenues from these contracts are recognized on a straight-line basis because, in substance, the fair value of the services rendered does not vary from one period to the next. Income received for site use fees and licensing of the Coleto Creek plant and proceeds received for property claim and business interruption insurance are recorded in Other Operating Expenses—net.

N.            Income Taxes—The Company is included in the consolidated tax return of GSENA. For the preparation of these combined financial statements, the Company has used the separate-return method. In doing so, the Company uses the asset and liability method to account for its deferred income taxes. Deferred income taxes are provided for temporary differences between the tax basis of assets and liabilities and their basis for financial statement purposes by applying the statutory rates in effect at the consolidated balance sheet date. Income tax penalties and interest assessments are accrued as tax expense in the period that the Company records a liability related to uncertain tax positions.

O.           Asset Retirement Obligations—The Company records an ARO as a liability, in accordance with ASC 410, Asset Retirement and Environmental Obligations, in the period in which it incurs a legal obligation for the retirement of tangible long-lived assets, coupled with a corresponding asset that is depreciated over the life of the asset. After the initial measurement of the ARO, the liability will be adjusted, or accreted, during each reporting period to reflect changes in the estimated future cash flows underlying the obligation (see Note 9).

P.             Postemployment Benefit Obligations and Other Long-Term Employee Benefits—The Thermal Assets do not have postemployment plans. Plans are held at GSENA, and liabilities and expenses relating to the Company employees have been allocated to the Company. The cost of defined contribution plans is expensed based on the amount of contributions payable in the period. Obligations concerning defined benefit plans are assessed on an actuarial basis using the projected unit credit method. Actuarial gains and losses resulting from changes in actuarial assumptions and experience adjustments are recognized directly in equity and are shown in the combined statements of income and comprehensive (loss) income.

Q.           Share-Based Payments—Share-based payments made in consideration for services provided are recognized as personnel costs. These services are measured at the fair value of the instruments awarded. Share-based payment plans include share appreciation rights, bonus share plan, and employee share purchase plans. Share appreciation rights and employee share purchase plans are cash-settled instruments, and the bonus share plan is an equity-settled instrument. The Company does not have its own share-based compensation plan, but participates in the plans of ENGIE. Amounts relating to the Company employees were allocated based on headcount to fairly present the expenses of the Company employees.

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3.                   INCOME TAXES

The income tax provision for the years ended December 31, 2015, 2014, and 2013 consists of the following (in thousands):

A reconciliation between the theoretical income tax (expense) benefit and the Company’s actual income tax (expense) benefit for the years ended December 31, 2015, 2014, and 2013 (in thousands):

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Analysis of the deferred tax position for the years ended December 31, 2015 and 2014 is as follows (in thousands):

The Thermal Assets have significant net operating loss carryforwards in the federal and state jurisdictions. For purposes of these combined financial statements, the carryforwards and related deferred tax assets have been determined using the separate return method. Actual net operating losses remaining, as well as expiration dates, could differ from the amounts reported in these combined financial statements due to the income and losses of the Thermal Assets being offset by income and losses of other entities within the GSENA consolidated filing group.  These carryforwards begin to expire in 2024.

The Thermal Assets are subject to taxation in the United States and various state jurisdictions. As of December 31, 2015, the Thermal Assets tax years of 2012, 2013, 2014, and 2015 are subject to examination by the tax authorities.

4.                   PROPERTY, PLANT, AND EQUIPMENT

Details of property, plant, and equipment at December 31, 2015 and 2014 are as follows (in thousands):