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Accounting for Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended
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Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Net notional volume buy/(sell) of NRG's open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by category, excluding those derivatives that qualified for the NPNS exception, as of June 30, 2022 and December 31, 2021. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.
|  | Total Volume (In millions)
Category | Units | June 30, 2022 |  | December 31, 2021
Emissions | Short Ton | — |  |  | 1 |
Renewable Energy Certificates | Certificates | 11 |  |  | 13 |
Coal | Short Ton | 12 |  |  | 19 |
Natural Gas | MMBtu | 832 |  |  | 813 |
Oil | Barrels | — |  |  | 1 |
Power | MWh | 179 |  |  | 185 |
Foreign Exchange | Dollars | $ | 405 |  |  | $ | 279 |
Fair value within the derivative instrument valuation on the balance sheets | The following table summarizes the fair value within the derivative instrument valuation on the balance sheets:
| Fair Value
| Derivative Assets |  | Derivative Liabilities
(In millions) | June 30, 2022 |  | December 31, 2021 |  | June 30, 2022 |  | December 31, 2021
Derivatives Not Designated as Cash Flow or Fair Value Hedges: |  |  |  |  |  |  |
Foreign exchange contracts - current | $ | 3 |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |
Foreign exchange contracts - long-term | 3 |  |  | 1 |  |  | — |  |  | — |
Commodity contracts - current | 11,320 |  |  | 4,613 |  |  | 8,000 |  |  | 3,386 |
Commodity contracts - long-term | 4,545 |  |  | 2,526 |  |  | 2,565 |  |  | 1,412 |
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges | $ | 15,871 |  |  | $ | 7,140 |  |  | $ | 10,565 |  |  | $ | 4,799 |
Offsetting of derivatives by counterparty assets | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid:
|  | Gross Amounts Not Offset in the Statement of Financial Position
(In millions) |  | Gross Amounts of Recognized Assets / Liabilities |  | Derivative Instruments |  | Cash Collateral (Held) / Posted |  | Net Amount
As of June 30, 2022 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Derivative assets |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Commodity contracts: |  |  |  |  |  |  |  |
Derivative assets |  | $ | 15,865 |  |  | $ | (9,937) |  |  | $ | (3,719) |  |  | $ | 2,209 |
Derivative liabilities |  | (10,565) |  |  | 9,937 |  |  | 73 |  |  | (555) |
Total commodity contracts |  | $ | 5,300 |  |  | $ | — |  |  | $ | (3,646) |  |  | $ | 1,654 |
Total derivative instruments |  | $ | 5,306 |  |  | $ | — |  |  | $ | (3,646) |  |  | $ | 1,660 |
|  | Gross Amounts Not Offset in the Statement of Financial Position |  |
(In millions) |  | Gross Amounts of Recognized Assets / Liabilities |  | Derivative Instruments |  | Cash Collateral (Held) / Posted |  | Net Amount |  |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 1 |  |  | $ | (1) |  |  | $ | — |  |  | $ | — |  |  |
Derivative liabilities |  | (1) |  |  | 1 |  |  | — |  |  | — |  |  |
Total foreign exchange contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Commodity contracts: |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 7,139 |  |  | $ | (4,440) |  |  | $ | (831) |  |  | $ | 1,868 |  |  |
Derivative liabilities |  | (4,798) |  |  | 4,440 |  |  | 17 |  |  | (341) |  |  |
Total commodity contracts |  | $ | 2,341 |  |  | $ | — |  |  | $ | (814) |  |  | $ | 1,527 |  |  |
Total derivative instruments |  | $ | 2,341 |  |  | $ | — |  |  | $ | (814) |  |  | $ | 1,527 |  |  |
Offsetting of derivatives by counterparty, liabilities | The following table summarizes the offsetting of derivatives by counterparty master agreement level and collateral received or paid:
|  | Gross Amounts Not Offset in the Statement of Financial Position
(In millions) |  | Gross Amounts of Recognized Assets / Liabilities |  | Derivative Instruments |  | Cash Collateral (Held) / Posted |  | Net Amount
As of June 30, 2022 |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |
Derivative assets |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Commodity contracts: |  |  |  |  |  |  |  |
Derivative assets |  | $ | 15,865 |  |  | $ | (9,937) |  |  | $ | (3,719) |  |  | $ | 2,209 |
Derivative liabilities |  | (10,565) |  |  | 9,937 |  |  | 73 |  |  | (555) |
Total commodity contracts |  | $ | 5,300 |  |  | $ | — |  |  | $ | (3,646) |  |  | $ | 1,654 |
Total derivative instruments |  | $ | 5,306 |  |  | $ | — |  |  | $ | (3,646) |  |  | $ | 1,660 |
|  | Gross Amounts Not Offset in the Statement of Financial Position |  |
(In millions) |  | Gross Amounts of Recognized Assets / Liabilities |  | Derivative Instruments |  | Cash Collateral (Held) / Posted |  | Net Amount |  |
As of December 31, 2021 |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 1 |  |  | $ | (1) |  |  | $ | — |  |  | $ | — |  |  |
Derivative liabilities |  | (1) |  |  | 1 |  |  | — |  |  | — |  |  |
Total foreign exchange contracts |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |
Commodity contracts: |  |  |  |  |  |  |  |  |  |
Derivative assets |  | $ | 7,139 |  |  | $ | (4,440) |  |  | $ | (831) |  |  | $ | 1,868 |  |  |
Derivative liabilities |  | (4,798) |  |  | 4,440 |  |  | 17 |  |  | (341) |  |  |
Total commodity contracts |  | $ | 2,341 |  |  | $ | — |  |  | $ | (814) |  |  | $ | 1,527 |  |  |
Total derivative instruments |  | $ | 2,341 |  |  | $ | — |  |  | $ | (814) |  |  | $ | 1,527 |  |  |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges, ineffectiveness on cash flow hedges and trading activity on the Company's statement of operations | The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations.
(In millions) | Three months ended June 30, |  | Six months ended June 30,
Unrealized mark-to-market results | 2022 |  | 2021 |  | 2022 |  | 2021
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges | $ | (197) |  |  | $ | 22 |  |  | $ | (605) |  |  | $ | 39 |
Reversal of acquired loss/(gain) positions related to economic hedges | 48 |  |  | 103 |  |  | (12) |  |  | 248 |
Net unrealized gains on open positions related to economic hedges | 868 |  |  | 1,392 |  |  | 3,613 |  |  | 1,951 |
Total unrealized mark-to-market gains for economic hedging activities | 719 |  |  | 1,517 |  |  | 2,996 |  |  | 2,238 |
Reversal of previously recognized unrealized losses/(gains) on settled positions related to trading activity | 8 |  |  | (3) |  |  | 9 |  |  | (10) |
Net unrealized (losses)/gains on open positions related to trading activity | (10) |  |  | (7) |  |  | (25) |  |  | 4 |
Total unrealized mark-to-market (losses) for trading activity | (2) |  |  | (10) |  |  | (16) |  |  | (6) |
Total unrealized gains | $ | 717 |  |  | $ | 1,507 |  |  | $ | 2,980 |  |  | $ | 2,232 |
| Three months ended June 30, |  | Six months ended June 30,
(In millions) | 2022 |  | 2021 |  | 2022 |  | 2021
Unrealized (losses) included in revenues - commodities | $ | (150) |  |  | $ | (80) |  |  | $ | (297) |  |  | $ | (108) |
Unrealized gains included in cost of operations - commodities | 858 |  |  | 1,589 |  |  | 3,272 |  |  | 2,344 |
Unrealized gains/(losses) included in cost of operations - foreign exchange | 9 |  |  | (2) |  |  | 5 |  |  | (4) |
Total impact to statement of operations - commodities | $ | 717 |  |  | $ | 1,507 |  |  | $ | 2,980 |  |  | $ | 2,232 |

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