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Fair Value of Financial Assets and Liabilities (Tables) | 9 Months Ended
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Sep. 30, 2024
Fair Value Disclosures [Abstract] |
Fair Value of Financial Liabilities Recorded at Amortized Cost | The following table presents the carrying amounts and fair values of our long-term debt and SNF obligation as of September 30, 2024 and December 31, 2023. We have no financial liabilities classified as Level 1. The carrying amounts of the short-term liabilities as presented in the Consolidated Balance Sheets are representative of their fair value (Level 2) because of the short-term nature of these instruments.
|  | September 30, 2024 |  | December 31, 2023
|  | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
|  |  | Level 2 |  | Level 3 |  | Total |  |  | Level 2 |  | Level 3 |  | Total
Long-Term Debt, including amounts due within one year |  | $ | 8,412 |  |  | $ | 8,205 |  |  | $ | 737 |  |  | $ | 8,942 |  |  | $ | 7,617 |  |  | $ | 7,140 |  |  | $ | 774 |  |  | $ | 7,914 |
SNF Obligation |  | 1,349 |  |  | 1,310 |  |  | — |  |  | 1,310 |  |  | 1,296 |  |  | 1,222 |  |  | — |  |  | 1,222 |
Assets and Liabilities Measured and Recorded at Fair Value on Recurring Basis | The following table present assets and liabilities measured and recorded at fair value in the Consolidated Balance Sheets on a recurring basis and their level within the fair value hierarchy as of September 30, 2024 and December 31, 2023:
| As of September 30, 2024 |  | As of December 31, 2023
| Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents(a) | $ | 130 |  |  | $ | — |  |  | $ | — |  |  | $ | 130 |  |  | $ | 42 |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |
NDT fund investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash equivalents(b) | 267 |  |  | 152 |  |  | — |  |  | 419 |  |  | 356 |  |  | 87 |  |  | — |  |  | 443 |
Equities | 5,567 |  |  | 2,021 |  |  | 1 |  |  | 7,589 |  |  | 4,574 |  |  | 1,990 |  |  | 1 |  |  | 6,565 |
Fixed income | 2,209 |  |  | 1,467 |  |  | 365 |  |  | 4,041 |  |  | 2,043 |  |  | 1,523 |  |  | 277 |  |  | 3,843 |
Private credit | — |  |  | — |  |  | 133 |  |  | 133 |  |  | — |  |  | — |  |  | 151 |  |  | 151 |
Assets measured at NAV | — |  |  | — |  |  | — |  |  | 5,616 |  |  | — |  |  | — |  |  | — |  |  | 5,396 |
NDT fund investments subtotal(c) | 8,043 |  |  | 3,640 |  |  | 499 |  |  | 17,798 |  |  | 6,973 |  |  | 3,600 |  |  | 429 |  |  | 16,398 |
Rabbi trust investments | 55 |  |  | 38 |  |  | 1 |  |  | 94 |  |  | 48 |  |  | 33 |  |  | 1 |  |  | 82 |
Investments in equities | 258 |  |  | — |  |  | — |  |  | 258 |  |  | 372 |  |  | — |  |  | — |  |  | 372 |
Mark-to-market derivative assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Economic hedges | 1,412 |  |  | 4,466 |  |  | 3,558 |  |  | 9,436 |  |  | 2,330 |  |  | 5,821 |  |  | 3,143 |  |  | 11,294 |
Proprietary trading | — |  |  | — |  |  | 1 |  |  | 1 |  |  | — |  |  | — |  |  | 2 |  |  | 2 |
Effect of netting and allocation of collateral(d) | (1,300) |  |  | (4,003) |  |  | (2,770) |  |  | (8,073) |  |  | (1,996) |  |  | (5,195) |  |  | (1,931) |  |  | (9,122) |
Mark-to-market derivative assets subtotal | 112 |  |  | 463 |  |  | 789 |  |  | 1,364 |  |  | 334 |  |  | 626 |  |  | 1,214 |  |  | 2,174 |
DPP consideration | — |  |  | 1,766 |  |  | — |  |  | 1,766 |  |  | — |  |  | 1,216 |  |  | — |  |  | 1,216 |
Total assets measured at fair value | 8,598 |  |  | 5,907 |  |  | 1,289 |  |  | 21,410 |  |  | 7,769 |  |  | 5,475 |  |  | 1,644 |  |  | 20,284 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mark-to-market derivative liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Economic hedges | (1,509) |  |  | (4,657) |  |  | (3,640) |  |  | (9,806) |  |  | (2,681) |  |  | (7,154) |  |  | (2,736) |  |  | (12,571) |
Proprietary trading | — |  |  | — |  |  | (1) |  |  | (1) |  |  | — |  |  | — |  |  | (2) |  |  | (2) |
Effect of netting and allocation of collateral(d) | 1,443 |  |  | 4,463 |  |  | 3,058 |  |  | 8,964 |  |  | 2,587 |  |  | 6,542 |  |  | 2,393 |  |  | 11,522 |
Mark-to-market derivative liabilities subtotal | (66) |  |  | (194) |  |  | (583) |  |  | (843) |  |  | (94) |  |  | (612) |  |  | (345) |  |  | (1,051) |
Deferred compensation obligation | — |  |  | (98) |  |  | — |  |  | (98) |  |  | — |  |  | (69) |  |  | — |  |  | (69) |
Total liabilities measured at fair value | (66) |  |  | (292) |  |  | (583) |  |  | (941) |  |  | (94) |  |  | (681) |  |  | (345) |  |  | (1,120) |
Total net assets | $ | 8,532 |  |  | $ | 5,615 |  |  | $ | 706 |  |  | $ | 20,469 |  |  | $ | 7,675 |  |  | $ | 4,794 |  |  | $ | 1,299 |  |  | $ | 19,164 |
__________ (a)CEG Parent has $142 million and $54 million of Level 1 cash equivalents as of September 30, 2024 and December 31, 2023, respectively. We exclude cash of $1,676 million and $349 million as of September 30, 2024 and December 31, 2023, respectively, and restricted cash of $64 million and $49 million as of September 30, 2024 and December 31, 2023, respectively. CEG Parent has excluded an additional $1 million and $2 million of cash as of September 30, 2024 and December 31, 2023, respectively. (b)Includes net liabilities of $131 million and $115 million as of September 30, 2024 and December 31, 2023, respectively, which consist of receivables related to pending securities sales, interest and dividend receivables, repurchase agreement obligations, and payables related to pending securities purchases. The repurchase agreements are generally short-term in nature with durations generally of 30 days or less. (c)Includes total NDT derivative assets and liabilities that are not material, which have notional amounts of $1,068 million and $948 million as of September 30, 2024 and December 31, 2023, respectively. The notional principal amounts provide one measure of the transaction volume outstanding as of the periods ended and do not represent the amount of our exposure to credit or market loss. (d)Includes $606 million and $1,712 million of variation margin posted on the exchanges as of September 30, 2024 and December 31, 2023, respectively.
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the fair value reconciliation of Level 3 assets and liabilities measured at fair value on a recurring basis during the three and nine months ended September 30, 2024 and 2023:
| For the Three Months Ended September 30, 2024
| NDT Fund Investments |  | Mark-to-Market Derivatives |  | Life Insurance Contracts |  | Total
Balance as of July 1, 2024 | $ | 492 |  |  | $ | 312 |  |  | $ | 1 |  |  | $ | 805 |
Total realized / unrealized gains (losses) |  |  |  |  |  |  |
Included in net income (loss) | 4 |  |  | 58 |  | (a) | — |  |  | 62 |
Included in Payable related to Regulatory Agreement Units | 9 |  |  | — |  |  | — |  |  | 9 |
Change in collateral | — |  |  | (166) |  |  |  |  | (166) |
Purchases, sales, issuances and settlements |  |  |  |  |  |  |
Purchases | — |  |  | 14 |  |  | — |  |  | 14 |
Sales | — |  |  | — |  |  | — |  |  | — |
Settlements | (7) |  |  | — |  |  | — |  |  | (7) |
Transfers into Level 3 | 1 |  |  | (12) |  | (b) | — |  |  | (11) |
Transfers out of Level 3 | — |  |  | — |  | (b) | — |  |  | — |
Balance as of September 30, 2024 | $ | 499 |  |  | $ | 206 |  |  | $ | 1 |  |  | $ | 706 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2024 | $ | 4 |  |  | $ | 191 |  |  | $ | — |  |  | $ | 195 |
| For the Three Months Ended September 30, 2023
| NDT Fund Investments |  | Mark-to-Market Derivatives |  | Life Insurance Contracts |  | Total
Balance as of July 1, 2023 | $ | 421 |  |  | $ | 651 |  |  | $ | 1 |  |  | $ | 1,073 |
Total realized / unrealized gains (losses) |  |  |  |  |  |  |
Included in net income (loss) | — |  |  | (236) |  | (a) | — |  |  | (236) |
Included in Payable related to Regulatory Agreement Units | — |  |  | — |  |  | — |  |  | — |
Change in collateral | — |  |  | (7) |  |  | — |  |  | (7) |
Purchases, sales, issuances and settlements |  |  |  |  |  |  |
Purchases | — |  |  | 35 |  |  | — |  |  | 35 |
Sales | — |  |  | (3) |  |  | — |  |  | (3) |
Settlements | — |  |  | 32 |  |  | — |  |  | 32 |
Transfers into Level 3 | — |  |  | — |  | (b) | — |  |  | — |
Transfers out of Level 3 | — |  |  | (91) |  | (b) | — |  |  | (91) |
Balance as of September 30, 2023 | $ | 421 |  |  | $ | 381 |  |  | $ | 1 |  |  | $ | 803 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2023 | $ | — |  |  | $ | 54 |  |  | $ | — |  |  | $ | 54 |
| For the Nine Months Ended September 30, 2024
| NDT Fund Investments |  | Mark-to-Market Derivatives |  | Life Insurance Contracts |  | Total
Balance as of January 1, 2024 | $ | 429 |  |  | $ | 869 |  |  | $ | 1 |  |  | $ | 1,299 |
Total realized / unrealized gains (losses) |  |  |  |  |  |  |
Included in net income (loss) | 4 |  |  | (433) |  | (a) | — |  |  | (429) |
Included in Payable related to Regulatory Agreement Units | 13 |  |  | — |  |  | — |  |  | 13 |
Change in collateral | — |  |  | (173) |  |  | — |  |  | (173) |
Purchases, sales, issuances and settlements |  |  |  |  |  |  |
Purchases | 66 |  |  | 32 |  |  | — |  |  | 98 |
Sales | — |  |  | (83) |  |  | — |  |  | (83) |
Settlements | (14) |  |  | (2) |  |  | — |  |  | (16) |
Transfers into Level 3 | 1 |  |  | 27 |  | (b) | — |  |  | 28 |
Transfers out of Level 3 | — |  |  | (31) |  | (b) | — |  |  | (31) |
Balance as of September 30, 2024 | $ | 499 |  |  | $ | 206 |  |  | $ | 1 |  |  | $ | 706 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2024 | $ | 4 |  |  | $ | 216 |  |  | $ | — |  |  | $ | 220 |
| For the Nine Months Ended September 30, 2023
| NDT Fund Investments |  | Mark-to-Market Derivatives |  | Life Insurance Contracts |  | Total
Balance as of January 1, 2023 | $ | 423 |  |  | $ | 219 |  |  | $ | 1 |  |  | $ | 643 |
Total realized / unrealized gains (losses) |  |  |  |  |  |  |
Included in net income (loss) | 1 |  |  | 24 |  | (a) | — |  |  | 25 |
Included in Payable related to Regulatory Agreement Units | 4 |  |  | — |  |  | — |  |  | 4 |
Change in collateral | — |  |  | 99 |  |  | — |  |  | 99 |
Purchases, sales, issuances and settlements |  |  |  |  |  |  |
Purchases | — |  |  | 120 |  |  | — |  |  | 120 |
Sales | — |  |  | (9) |  |  | — |  |  | (9) |
Settlements | (7) |  |  | 32 |  |  | — |  |  | 25 |
Transfers into Level 3 | — |  |  | 59 |  | (b) | — |  |  | 59 |
Transfers out of Level 3 | — |  |  | (163) |  | (b) | — |  |  | (163) |
Balance as of September 30, 2023 | $ | 421 |  |  | $ | 381 |  |  | $ | 1 |  |  | $ | 803 |
The amount of total gains (losses) included in income attributed to the change in unrealized gains (losses) related to assets and liabilities as of September 30, 2023 | $ | 1 |  |  | $ | 759 |  |  | $ | — |  |  | $ | 760 |
__________ (a)Includes a reduction of $133 million and $651 million for realized gains due to the settlement of derivative contracts for the three and nine months ended September 30, 2024, respectively. Includes a reduction of $258 million and $703 million for realized gains due to the settlement of derivative contracts for the three and nine months ended September 30, 2023, respectively. (b)Transfers into and out of Level 3 generally occur when the contract tenor becomes less and more observable, respectively, primarily due to changes in market liquidity or assumptions for certain commodity contracts.
Total Realized and Unrealized Gains (Losses) Included in Income for Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the income statement classification of the total realized and unrealized gains (losses) included in income for Level 3 assets and liabilities measured at fair value on a recurring basis during the three and nine months ended September 30, 2024 and 2023:
| For the Three Months Ended September 30,
| Operating Revenues |  | Purchased Power and Fuel |  | Other, net
| 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023
Total gains (losses) included in net income | $ | 177 |  |  | $ | (129) |  |  | $ | (119) |  |  | $ | (75) |  |  | $ | 4 |  |  | $ | — |
Total unrealized gains (losses) | 300 |  |  | 97 |  |  | (109) |  |  | (43) |  |  | — |  |  | — |
| For the Nine Months Ended September 30,
| Operating Revenues |  | Purchased Power and Fuel |  | Other, net
| 2024 |  | 2023 |  | 2024 |  | 2023 |  | 2024 |  | 2023
Total gains (losses) included in net income | $ | (97) |  |  | $ | 388 |  |  | $ | (338) |  |  | $ | (332) |  |  | $ | 4 |  |  | $ | 1 |
Total unrealized gains (losses) | 561 |  |  | 1,144 |  |  | (345) |  |  | (385) |  |  | — |  |  | 1 |
Fair Value Reconciliation of Level 3 Assets and Liabilities Measured at Fair Value on a Recurring Basis, Valuation Technique | The following table presents the significant inputs to the forward curve used to value these positions:
Type of trade |  | Fair Value as of September 30, 2024 |  | Fair Value as of December 31, 2023 |  | Valuation Technique |  | Unobservable Input |  | 2024 Range & Arithmetic Average |  | 2023 Range & Arithmetic Average
Mark-to market derivatives—Economic hedges(a)(b) |  | $ | (82) |  |  | $ | 407 |  |  | Discounted Cash Flow |  | Forward power price |  | $4.28 - $138 | $47 |  | $9.64 - $216 | $48
|  |  |  |  |  |  |  | Forward gas price |  | $1.07 - $13 | $3.41 |  | $1.20 - $14 | $3.09
|  |  |  |  |  | Option Model |  | Volatility percentage |  | 11% - 75% | 45% |  | 23% - 200% | 87%
__________ (a)The valuation techniques, unobservable inputs, ranges, and arithmetic averages are the same for the asset and liability positions. (b)The fair values do not include cash collateral posted on Level 3 positions of $288 million and $462 million as of September 30, 2024 and December 31, 2023, respectively.

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- Definition This element represents, for the fair value measurement of assets and liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (net); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs). + References No definition available. + Details
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- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 102 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-102 + Details
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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique used to measure similar asset in prior period by class of asset or liability on non-recurring basis. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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