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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Estimated Carrying Amounts and Fair Values of Financial Instruments Not Carried at Fair Value

The estimated carrying values and fair values of the Company's recorded financial instruments not carried at fair market value are as follows:

	As of December 31,
	2018								2017
	Carrying Amount				Fair Value				Carrying Amount				Fair Value
	(In millions)
Assets
Notes receivable	$	17			$	14			$	2			$	2
Liabilities
Long-term debt, including current portion (a)	$	6,591			$	6,697			$	9,482			$	9,739

(a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets

The fair value of the Company's publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. The fair value of debt securities, non-publicly traded long-term debt, and certain notes receivable of the Company are based on expected future cash flows discounted at market interest rates or current interest rates for similar instruments with equivalent credit quality and are classified as Level 3 within the fair value hierarchy. The following table presents the level within the fair value hierarchy for long-term debt, including current portion as of December 31, 2018 and 2017:

	As of December 31, 2018								As of December 31, 2017
	Level 2				Level 3				Level 2				Level 3
	(In millions)
Long-term debt, including current portion	$	6,528			$	169			$	7,432			$	2,307

Assets and Liabilities Measured and Recorded at Fair Value Measured on a Recurring Basis

The following tables present assets and liabilities measured and recorded at fair value on the Company's consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:

	As of December 31, 2018
	Fair Value
	Total				Level 1				Level 2				Level 3
	(In millions)
Investments in securities (classified within other current and non-current assets)	$	39			$	2			$	18			$	19
Nuclear trust fund investments:
Cash and cash equivalents	19				19				—				—
U.S. government and federal agency obligations	46				46				—				—
Federal agency mortgage-backed securities	100				—				100				—
Commercial mortgage-backed securities	22				—				22				—
Corporate debt securities	96				—				96				—
Equity securities	312				312				—				—
Foreign government fixed income securities	4				—				4				—
Other trust fund investments:
U.S. government and federal agency obligations	1				1				—				—
Derivative assets:
Commodity contracts	1,042				137				796				109
Interest rate contracts	39				—				39				—
Measured using net asset value practical expedient:
Equity securities-nuclear trust fund investments	64				—				—				—
Equity securities	8				—				—				—
Total assets	$	1,792			$	517			$	1,075			$	128
Derivative liabilities:
Commodity contracts	$	977			$	224			$	664			$	89
Total liabilities	$	977			$	224			$	664			$	89

	As of December 31, 2017
	Fair Value
	Total				Level 1				Level 2				Level 3
Investments in securities (classified within other current or non-current assets)	$	39			$	3			$	17			$	19
Nuclear trust fund investments:
Cash and cash equivalents	47				45				2				—
U.S. government and federal agency obligations	43				42				1				—
Federal agency mortgage-backed securities	82				—				82				—
Commercial mortgage-backed securities	14				—				14				—
Corporate debt securities	99				—				99				—
Equity securities	334				334				—				—
Foreign government fixed income securities	5				—				5				—
Other trust fund investments:
U.S. government and federal agency obligations	1				1				—				—
Derivative assets:
Commodity contracts	744				191				509				44
Interest rate contracts	39				—				39				—
Measured using net asset value practical expedient:
Equity securities-nuclear trust fund investments	68				—				—				—
Equity securities	8				—				—				—
Total assets	$	1,523			$	616			$	768			$	63
Derivative liabilities:
Commodity contracts	$	674			$	257			$	358			$	59
Interest rate contracts	6				—				6				—
Total liabilities	$	680			$	257			$	364			$	59

Reconciliation of Beginning and Ending Balances for Financial Instruments that are Recognized at Fair Value using Significant Unobservable Inputs

The following tables reconcile, for the years ended December 31, 2018 and 2017, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:

	For the Year Ended December 31, 2018
	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Debt Securities				Derivatives (a)				Total
	(In millions)
Beginning balance as of January 1, 2018	$	19			$	(15	)		$	4
Contracts acquired in XOOM acquisition	—				12				12
Total losses realized/unrealized included in earnings	—				(21		)		(21		)
Purchases	—				41				41
Transfers into Level 3 (b)	—				5				5
Transfers out of Level 3 (b)	—				(2		)		(2		)
Ending balance as of December 31, 2018	$	19			$	20			$	39
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2018	$	—			$	(17	)		$	(17	)

(a) Consists of derivatives assets and liabilities, net

(b) Transfers into/out of Level 3 are related to the availability of external broker quotes, and are valued as of the end of the reporting period. All transfers into/out of Level 3 are from/to Level 2

	For the Year Ended December 31, 2017
	Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
	Debt Securities				Derivatives (a)				Total
	(In millions)
Beginning balance as of January 1, 2017	$	17			$	(64	)		$	(47	)
Total gains realized/unrealized included in earnings	2				37				39
Purchases	—				(4		)		(4		)
Contracts reclassified to held-for-sale					4				4
Transfers into Level 3 (b)	—				(1		)		(1		)
Transfer out of Level 3 (b)	—				13				13
Ending balance as of December 31, 2017	$	19			$	(15	)		$	4
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2017	$	—			$	1			$	1

(a) Consists of derivatives assets and liabilities, net

(b) Transfers into/out of Level 3 are related to the availability of external broker quotes, and are valued as of the end of the reporting period. All transfers into/out of Level 3 are from/to Level 2

Schedule of Significant Unobservable Inputs used in Developing Fair Value of Level 3 Positions

The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of December 31, 2018 and 2017:

	Significant Unobservable Inputs
	December 31, 2018
	Fair Value												Input/Range
	Assets				Liabilities				Valuation Technique		Significant Unobservable Input		Low				High				Weighted Average
	(In millions)
Power Contracts	$	89			$	75			Discounted Cash Flow		Forward Market Price (per MWh)		$	1			$	214			$	31
FTRs	20				14				Discounted Cash Flow		Auction Prices (per MWh)		(90		)		34				—
	$	109			$	89

	Significant Unobservable Inputs
	December 31, 2017
	Fair Value												Input/Range
	Assets				Liabilities				Valuation Technique		Significant Unobservable Input		Low				High				Weighted Average
	(In millions)
Power Contracts	$	33			$	47			Discounted Cash Flow		Forward Market Price (per MWh)		$	10			$	142			$	24
FTRs	11				12				Discounted Cash Flow		Auction Prices (per MWh)		(28		)		46				—
	$	44			$	59

Fair Value Inputs, Sensitivity Analysis

The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of December 31, 2018 and 2017:

Significant Unobservable Input		Position		Change In Input		Impact on Fair Value Measurement
Forward Market Price Power		Buy		Increase/(Decrease)		Higher/(Lower)
Forward Market Price Power		Sell		Increase/(Decrease)		Lower/(Higher)
FTR Prices		Buy		Increase/(Decrease)		Higher/(Lower)
FTR Prices		Sell		Increase/(Decrease)		Lower/(Higher)

Net Counterparty Credit Exposure by Industry Sector and by Counterparty Credit Quality

The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.

Category	Net Exposure (a) (b) (% of Total)
Utilities, energy merchants, marketers and other	89	%
Financial institutions	11
Total	100	%

Category	Net Exposure (a) (b) (% of Total)
Non-Investment grade/Non-Rated	51	%
Investment grade	49
Total	100	%

(a) Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices.

(b) The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts.

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