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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2022

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,
			2022												2021
(In millions)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Convertible Senior Notes			$	575					$	576					$	518					$	677
Other long-term debt, including current portion			7,523						6,432						7,522						7,650
Total long-term debt, including current portion (a)			$	8,098					$	7,008					$	8,040					$	8,327

(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 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, 2022
			Fair Value
(In millions)			Total						Level 1						Level 2						Level 3
Investments in securities (classified within other current and non-current assets)			$	19					$	—					$	19					$	—
Nuclear trust fund investments:
Cash and cash equivalents			15						15						—						—
U.S. government and federal agency obligations			86						84						2						—
Federal agency mortgage-backed securities			101						—						101						—
Commercial mortgage-backed securities			35						—						35						—
Corporate debt securities			114						—						114						—
Equity securities			403						403						—						—
Foreign government fixed income securities			1						—						1						—
Other trust fund investments (classified within other non-current assets):
U.S. government and federal agency obligations			1						1						—						—
Derivative assets:
Foreign exchange contracts			18						—						18						—
Commodity contracts			11,976						1,929						8,796						1,251
Measured using net asset value practical expedient:
Equity securities - nuclear trust fund investments			83
Equity securities (classified within other non-current assets)			6
Total assets			$	12,858					$	2,432					$	9,086					$	1,251
Derivative liabilities:
Foreign exchange contracts			$	2					$	—					$	2					$	—
Commodity contracts			8,439						1,244						6,449						746
Total liabilities			$	8,441					$	1,244					$	6,451					$	746

			As of December 31, 2021
			Fair Value
(In millions)			Total						Level 1						Level 2						Level 3
Investments in securities (classified within other current or 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

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

The following table reconciles, for the years ended December 31, 2022 and 2021, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs:

						Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
						Derivatives (a)
						For the Year Ended December 31,
(In millions)						2022						2021
Beginning balance						$	293					$	(16)
Contracts added from Direct Energy acquisition						—						(15)
Total gains realized/unrealized included in earnings						53						145
Purchases						(110)						93
Transfers into Level 3 (b)						264						71
Transfers out of Level 3 (b)						5						15
Ending balance						$	505					$	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 year-end						$	204					$	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

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, 2022 and 2021:

			Significant Unobservable Inputs
			December 31, 2022
			Fair Value																								Input/Range
(In millions)			Assets						Liabilities						Valuation Technique						Significant Unobservable Input						Low						High						Weighted Average
Natural Gas Contracts			$	340					$	448					Discounted Cash Flow						Forward Market Price (per MMBtu)						$	2					$	48					$	6
Power Contracts			843						216						Discounted Cash Flow						Forward Market Price (per MWh)						3						431						48
FTRs			68						82						Discounted Cash Flow						Auction Prices (per MWh)						(32)						610						0
			$	1,251					$	746

			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

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, 2022 and 2021:

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			62		%
Financial institutions			38
Total			100		%

Category			Net Exposure (a) (b) (% of Total)
Investment grade			65		%
Non-Investment grade/Non-Rated			35
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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