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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2021
Fair Value Disclosures [Abstract] |
Estimated Carrying Amounts and Fair Values of Financial Instruments Not Carried at Fair Value | The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows:
| As of December 31,
| 2021 |  | 2020
(In millions) | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term debt, including current portion (a) | $ | 8,040 |  |  | $ | 8,327 |  |  | $ | 8,781 |  |  | $ | 9,446 |
(a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets
Assets and Liabilities Measured and Recorded at Fair Value Measured on a Recurring Basis | The fair values of derivatives assets and liabilities as of the Acquisition Closing Date were as follows:
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Derivatives assets | $ | 1,545 |  |  | $ | 155 |  |  | $ | 1,272 |  |  | $ | 118 |
Derivatives liabilities | 1,828 |  |  | 207 |  |  | 1,489 |  |  | 132 |
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, 2021
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other current and non-current assets) | $ | 32 |  |  | $ | 15 |  |  | $ | 17 |  |  | $ | — |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 33 |  |  | 33 |  |  | — |  |  | — |
U.S. government and federal agency obligations | 112 |  |  | 111 |  |  | 1 |  |  | — |
Federal agency mortgage-backed securities | 100 |  |  | — |  |  | 100 |  |  | — |
Commercial mortgage-backed securities | 44 |  |  | — |  |  | 44 |  |  | — |
Corporate debt securities | 122 |  |  | — |  |  | 122 |  |  | — |
Equity securities | 494 |  |  | 494 |  |  | — |  |  | — |
Foreign government fixed income securities | 4 |  |  | — |  |  | 4 |  |  | — |
Other trust fund investments (classified within other non-current assets): |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Foreign exchange contracts | 1 |  |  | — |  |  | 1 |  |  | — |
Commodity contracts | 7,139 |  |  | 981 |  |  | 5,701 |  |  | 457 |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities-nuclear trust fund investments | 99 |  |  |  |  |  |  |
Equity securities (classified within other non-current assets) | 7 |  |  |  |  |  |  |
Total assets | $ | 8,188 |  |  | $ | 1,635 |  |  | $ | 5,990 |  |  | $ | 457 |
Derivative liabilities: |  |  |  |  |  |  |
Foreign exchange contracts | $ | 1 |  |  | $ | — |  |  | $ | 1 |  |  | $ | — |
Commodity contracts | $ | 4,798 |  |  | $ | 626 |  |  | $ | 4,008 |  |  | $ | 164 |
Total liabilities | $ | 4,799 |  |  | $ | 626 |  |  | $ | 4,009 |  |  | $ | 164 |
| As of December 31, 2020
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other current or non-current assets) | $ | 25 |  |  | $ | 10 |  |  | $ | 15 |  |  | $ | — |
Nuclear trust fund investments: |  |  |  |  |  |  |
Cash and cash equivalents | 23 |  |  | 23 |  |  | — |  |  | — |
U.S. government and federal agency obligations | 70 |  |  | 69 |  |  | 1 |  |  | — |
Federal agency mortgage-backed securities | 89 |  |  | — |  |  | 89 |  |  | — |
Commercial mortgage-backed securities | 36 |  |  | — |  |  | 36 |  |  | — |
Corporate debt securities | 144 |  |  | — |  |  | 144 |  |  | — |
Equity securities | 434 |  |  | 434 |  |  | — |  |  | — |
Foreign government fixed income securities | 7 |  |  | 1 |  |  | 6 |  |  | — |
Other trust fund investments (classified within other non-current assets): |  |  |  |  |  |  |
U.S. government and federal agency obligations | 1 |  |  | 1 |  |  | — |  |  | — |
Derivative assets: |  |  |  |  |  |  |
Commodity contracts | 821 |  |  | 59 |  |  | 623 |  |  | 139 |
Measured using net asset value practical expedient: |  |  |  |  |  |  |
Equity securities-nuclear trust fund investments | 87 |  |  |  |  |  |  |
Equity securities (classified within other non-current assets) | 8 |  |  |  |  |  |  |
Total assets | $ | 1,745 |  |  | $ | 597 |  |  | $ | 914 |  |  | $ | 139 |
Derivative liabilities: |  |  |  |  |  |  |
Commodity contracts | $ | 884 |  |  | $ | 86 |  |  | $ | 643 |  |  | $ | 155 |
Total liabilities | $ | 884 |  |  | $ | 86 |  |  | $ | 643 |  |  | $ | 155 |
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, 2021 and 2020, 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, 2021 |  |  |  |  |  |
|  |  |  |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) |  |  |  |  |  |
(In millions) |  |  |  |  | Derivatives (a) |  |  |  |  |  |
Beginning balance as of January 1, 2021 |  |  |  |  | $ | (16) |  |  |  |  |  |  |
Contracts added from Direct Energy acquisition |  |  |  |  | (15) |  |  |  |  |  |  |
Total gains realized/unrealized included in earnings |  |  |  |  | 145 |  |  |  |  |  |  |
Purchases |  |  |  |  | 93 |  |  |  |  |  |  |
Transfers into Level 3 (b) |  |  |  |  | 71 |  |  |  |  |  |  |
Transfers out of Level 3 (b) |  |  |  |  | 15 |  |  |  |  |  |  |
Ending balance as of December 31, 2021 |  |  |  |  | $ | 293 |  |  |  |  |  |  |
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, 2021 |  |  |  |  | $ | 120 |  |  |  |  |  |  |
(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, 2020 |  |
|  |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) |  |
(In millions) |  |  | Derivatives (a) |  |
Beginning balance as of January 1, 2020 |  |  | $ | 38 |  |  |
Total (losses) realized/unrealized included in earnings |  |  | (44) |  |  |
Purchases |  |  | (13) |  |  |
Transfers into Level 3 (b) |  |  | 1 |  |  |
Transfers out of Level 3 (b) |  |  | 2 |  |  |
Ending balance as of December 31, 2020 |  |  | $ | (16) |  |  |
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, 2020 |  |  | $ | 9 |  |  |
(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, 2021 and 2020:
| Significant Unobservable Inputs
| December 31, 2021
| Fair Value |  |  |  | Input/Range
(In millions) | Assets |  | Liabilities |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
Natural Gas Contracts | $ | 16 |  |  | $ | 1 |  |  | Discounted Cash Flow |  | Forward Market Price (per MMBtu) |  | $ | 3 |  |  | $ | 40 |  |  | $ | 15 |
Power Contracts | 392 |  |  | 121 |  |  | Discounted Cash Flow |  | Forward Market Price (per MWh) |  | 3 |  |  | 212 |  |  | 35 |
FTRs | 49 |  |  | 42 |  |  | Discounted Cash Flow |  | Auction Prices (per MWh) |  | (122) |  |  | 43 |  |  | 0 |
| $ | 457 |  |  | $ | 164 |  |  |  |  |  |  |  |  |  |  |
| Significant Unobservable Inputs
| December 31, 2020
| Fair Value |  |  |  | Input/Range
(In millions) | Assets |  | Liabilities |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
Power Contracts | $ | 111 |  |  | $ | 143 |  |  | Discounted Cash Flow |  | Forward Market Price (per MWh) |  | $ | 10 |  |  | $ | 105 |  |  | $ | 21 |
FTRs | 28 |  |  | 12 |  |  | Discounted Cash Flow |  | Auction Prices (per MWh) |  | (28) |  |  | 43 |  |  | 0 |
| $ | 139 |  |  | $ | 155 |  |  |  |  |  |  |  |  |  |  |
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, 2021 and 2020:
Significant Unobservable Input |  | Position |  | Change In Input |  | Impact on Fair Value Measurement
Forward Market Price Natural Gas/ Power |  | Buy |  | Increase/(Decrease) |  | Higher/(Lower)
Forward Market Price Natural Gas/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 | 67 | %
Financial institutions | 33 |
Total | 100 | %
Category | Net Exposure (a) (b) (% of Total)
Investment grade | 55 | %
Non-Investment grade/Non-Rated | 45 |
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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