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Derivative Financial Instruments (Tables)
 9 Months Ended
Sep. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of the Derivative Fair Value
The following tables provide a summary of the derivative fair value balances recorded as of September 30, 2024 and December 31, 2023:
September 30, 2024
Economic Hedges
Proprietary Trading
Collateral (a)(b)
Netting(a)
Total
Mark-to-market derivative assets (current)
$5,514 $1 $228 $(5,120)$623 
Mark-to-market derivative assets (noncurrent)
3,911 — 193 (3,373)731 
Total mark-to-market derivative assets9,425 1 421 (8,493)1,354 
Mark-to-market derivative liabilities (current)
(5,866)(1)258 5,120 (489)
Mark-to-market derivative liabilities (noncurrent)
(3,923)— 212 3,373 (338)
Total mark-to-market derivative liabilities(9,789)(1)470 8,493 (827)
Total mark-to-market derivative net assets (liabilities)
$(364)$— $891 $— $527 
December 31, 2023
Mark-to-market derivative assets (current)
$7,927 $2 $703 $(7,472)$1,160 
Mark-to-market derivative assets (noncurrent)
3,345 — 330 (2,682)993 
Total mark-to-market derivative assets11,272 2 1,033 (10,154)2,153 
Mark-to-market derivative liabilities (current)
(9,019)(2)922 7,472 (627)
Mark-to-market derivative liabilities (noncurrent)
(3,545)— 445 2,682 (418)
Total mark-to-market derivative liabilities(12,564)(2)1,367 10,154 (1,045)
Total mark-to-market derivative net assets (liabilities)
$(1,292)$— $2,400 $— $1,108 
_________
(a)We net all available amounts allowed in our Consolidated Balance Sheets in accordance with authoritative guidance for derivatives. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral.
(b)Includes $606 million and $1,712 million of variation margin posted on the exchanges as of September 30, 2024 and December 31, 2023, respectively.
Economic Hedges (Commodity Price Risk)
For the three and nine months ended September 30, 2024 and 2023, we recognized the following net pre-tax commodity mark-to-market gains (losses), which are also located in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows.
Three Months Ended September 30,Nine Months Ended September 30,
Income Statement Location2024202320242023
Operating revenues$519 $173 $774 $1,317 
Purchased power and fuel(119)(36)404 (1,448)
Total$400 $137 $1,178 $(131)
Disclosure of Credit Derivatives
The following tables provide information on the credit exposure for all derivative instruments, NPNS and payables and receivables, net of collateral and instruments that are subject to master netting agreements, as of September 30, 2024. The tables further delineate that exposure by credit rating of the counterparties and provide guidance on the concentration of credit risk to individual counterparties. The amounts in the tables below exclude credit risk exposure from individual retail counterparties and exposure through RTOs, ISOs, NYMEX, ICE, NASDAQ, NGX, and Nodal commodity exchanges.
Rating as of September 30, 2024
Total Exposure Before Credit Collateral
Credit Collateral(a)
Net Exposure
Number of Counterparties Greater than 10% of Net Exposure
Net Exposure of Counterparties Greater than 10% of Net Exposure
Investment grade$722 $17 $705 — $— 
Non-investment grade13 3 10 — — 
No external ratings
Internally rated — investment grade120 — 120 — — 
Internally rated — non-investment grade207 43 164 — — 
Total$1,062 $63 $999 — $— 
__________
(a)As of September 30, 2024, credit collateral held from counterparties where we had credit exposure included $8 million of cash and $55 million of letters of credit.

Net Credit Exposure by Type of CounterpartyAs of September 30, 2024
Investor-owned utilities, marketers, power producers$733 
Energy cooperatives and municipalities130 
Financial Institutions48 
Other88 
Total$999 
Fair Value of Derivatives with Credit- Risk Related Contingent Features
The aggregate fair value of all derivative instruments with credit-risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below:
Credit-Risk-Related Contingent FeaturesSeptember 30, 2024December 31, 2023
Gross fair value of derivative contracts containing this feature
$(1,285)$(1,894)
Offsetting fair value of in-the-money contracts under master netting arrangements
578 925 
Net fair value of derivative contracts containing this feature$(707)$(969)
Cash Collateral and Letters of Credit on Derivative Contracts
As of September 30, 2024 and December 31, 2023, we posted or held the following amounts of cash collateral and letters of credit on derivative contracts with external counterparties, after giving consideration to offsetting derivative and non-derivative positions under master netting agreements.
September 30, 2024December 31, 2023
Cash collateral posted(a)
$917 $2,449 
Letters of credit posted(a)
868 777 
Cash collateral held(a)
26 64 
Letters of credit held(a)
87 61 
Additional collateral required in the event of a credit downgrade below investment grade (at BB+/Ba1)(b)(c)(d)
1,873 1,914 
__________
(a)The cash collateral and letters of credit amounts are inclusive of NPNS contracts.
(b)Certain of our contracts contain provisions that allow a counterparty to request additional collateral when there has been a subjective determination that our credit quality has deteriorated, generally termed “adequate assurance”. Due to the subjective nature of these provisions, we estimate the amount of collateral that we may ultimately be required to post in relation to the maximum exposure with the counterparty.
(c)The downgrade collateral is inclusive of all contracts in a liability position regardless of accounting treatment and excludes any contracts with individual retail counterparties.
(d)A loss of investment grade credit rating would require a three notch downgrade from their current levels of BBB+ and Baa1 at S&P and Moody's, respectively.