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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2019

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,
			2019																		2018
(In millions)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Assets
Notes receivable			$	11					$	8					$	17					$	14
Liabilities
Long-term debt, including current portion (a)			$	5,956					$	6,504					$	6,591					$	6,697

(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, 2019 and 2018:

			As of December 31, 2019																		As of December 31, 2018
(In millions)			Level 2						Level 3						Level 2						Level 3
Long-term debt, including current portion			$	6,388					$	116					$	6,528					$	169

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, 2019
			Fair Value
(In millions)			Total						Level 1						Level 2						Level 3
Investments in securities (classified within other current and non-current assets)			$	20					$	—					$	20					$	—
Nuclear trust fund investments:
Cash and cash equivalents			17						17						—						—
U.S. government and federal agency obligations			68						68						—						—
Federal agency mortgage-backed securities			100						—						100						—
Commercial mortgage-backed securities			29						—						29						—
Corporate debt securities			109						—						109						—
Equity securities			388						388						—						—
Foreign government fixed income securities			5						—						5						—
Other trust fund investments:
U.S. government and federal agency obligations			1						1						—						—
Derivative assets:
Commodity contracts			1,170						84						893						193
Measured using net asset value practical expedient:
Equity securities-nuclear trust fund investments			78						—						—						—
Equity securities			8						—						—						—
Total assets			$	1,993					$	558					$	1,156					$	193
Derivative liabilities:
Commodity contracts			$	1,103					$	143					$	805					$	155
Total liabilities			$	1,103					$	143					$	805					$	155

			As of December 31, 2018
			Fair Value
(In millions)			Total						Level 1						Level 2						Level 3
Investments in securities (classified within other current or 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

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, 2019 and 2018, 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, 2019
			Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
(In millions)			Debt Securities												Derivatives (a)						Total
Beginning balance as of January 1, 2019			$	19											$	20					$	39
Contracts added from acquisitions			—												(3)						(3)
Total gains/(losses) — realized/unrealized:
Included in earnings			—												(26)						(26)
Included in OCI			—												—						—
Purchases			—												40						40
Sale			(19)												—						(19)
Transfers into Level 3 (b)			—												2						2
Transfers out of Level 3 (b)			—												5						5
Ending balance as of December 31, 2019			$	—											$	38					$	38
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, 2019			$	—											$	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, 2018
			Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
(In millions)			Debt Securities						Derivatives (a)						Total
Beginning balance as of January 1, 2018			$	19					$	(15)					$	4
Contracts acquired in XOOM acquisition			—						12						$	12
Total gains realized/unrealized included in earnings			—						(21)						(21)
Purchases			—						41						41
Transfers into Level 3 (b)			—						5						5
Transfer 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

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, 2019 and 2018:

			Significant Unobservable Inputs
			December 31, 2019
			Fair Value																																				Input/Range
(In millions)			Assets						Liabilities						Valuation Technique						Significant Unobservable Input						Low						High						Weighted Average
Power Contracts			$	151					$	139					Discounted Cash Flow						Forward Market Price (per MWh)						$	8					$	218					$	24
FTRs			42						16						Discounted Cash Flow						Auction Prices (per MWh)						(105)						213						0
			$	193					$	155

			Significant Unobservable Inputs
			December 31, 2018
			Fair Value																																				Input/Range
(In millions)			Assets						Liabilities						Valuation Technique						Significant Unobservable Input						Low						High						Weighted Average
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						0
			$	109					$	89

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, 2019 and 2018:

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			84		%
Financial institutions			16
Total			100		%

Category			Net Exposure (a) (b) (% of Total)
Investment grade			56		%
Non-Investment grade/Non-Rated			44
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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