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Accounting for Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022. 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			March 31, 2023						December 31, 2022
Emissions			Short Ton			—						1
Renewable Energy Certificates			Certificates			13						15
Coal			Short Ton			14						11
Natural Gas			MMBtu			667						422
Oil			Barrels			—						1
Power			MWh			198						192
Consumer Financing Program			Dollars			863						—
Foreign Exchange			Dollars			594						569
Interest			Dollars			1,720						—

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)			March 31, 2023						December 31, 2022						March 31, 2023						December 31, 2022
Derivatives Not Designated as Cash Flow or Fair Value Hedges:
Interest rate contracts - current			$	10					$	—					$	—					$	—
Interest rate contracts - long-term			—						—						15						—
Foreign exchange contracts - current			9						11						—						1
Foreign exchange contracts - long-term			6						7						1						1
Consumer Financing Program - short-term			—						—						80						—
Consumer Financing Program - long-term			—						—						31						—
Commodity contracts - current			4,381						7,875						4,270						6,194
Commodity contracts - long-term			3,344						4,101						1,846						2,245
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges			$	7,750					$	11,994					$	6,243					$	8,441

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 March 31, 2023
Foreign exchange contracts:
Derivative assets						$	15					$	(1)					$	—					$	14
Derivative liabilities						(1)						1						—						—
Total foreign exchange contracts						$	14					$	—					$	—					$	14
Commodity contracts:
Derivative assets						$	7,725					$	(5,750)					$	(307)					$	1,668
Derivative liabilities						(6,116)						5,750						8						(358)
Total commodity contracts						$	1,609					$	—					$	(299)					$	1,310
Consumer Financing Program:
Derivative liabilities						$	(111)					$	—					$	—					$	(111)
Interest rate contracts:
Derivative assets						$	10					$	(8)					$	—					$	2
Derivative liabilities						(15)						8						—						(7)
Total interest rate contracts						(5)						—						—						(5)
Total derivative instruments						$	1,507					$	—					$	(299)					$	1,208

						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, 2022
Foreign exchange contracts:
Derivative assets						$	18					$	(2)					$	—					$	16
Derivative liabilities						(2)						2						—						—
Total foreign exchange contracts						$	16					$	—					$	—					$	16
Commodity contracts:
Derivative assets						$	11,976					$	(7,897)					$	(1,659)					$	2,420
Derivative liabilities						(8,439)						7,897						20						(522)
Total commodity contracts						$	3,537					$	—					$	(1,639)					$	1,898
Total derivative instruments						$	3,553					$	—					$	(1,639)					$	1,914

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 March 31, 2023
Foreign exchange contracts:
Derivative assets						$	15					$	(1)					$	—					$	14
Derivative liabilities						(1)						1						—						—
Total foreign exchange contracts						$	14					$	—					$	—					$	14
Commodity contracts:
Derivative assets						$	7,725					$	(5,750)					$	(307)					$	1,668
Derivative liabilities						(6,116)						5,750						8						(358)
Total commodity contracts						$	1,609					$	—					$	(299)					$	1,310
Consumer Financing Program:
Derivative liabilities						$	(111)					$	—					$	—					$	(111)
Interest rate contracts:
Derivative assets						$	10					$	(8)					$	—					$	2
Derivative liabilities						(15)						8						—						(7)
Total interest rate contracts						(5)						—						—						(5)
Total derivative instruments						$	1,507					$	—					$	(299)					$	1,208

						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, 2022
Foreign exchange contracts:
Derivative assets						$	18					$	(2)					$	—					$	16
Derivative liabilities						(2)						2						—						—
Total foreign exchange contracts						$	16					$	—					$	—					$	16
Commodity contracts:
Derivative assets						$	11,976					$	(7,897)					$	(1,659)					$	2,420
Derivative liabilities						(8,439)						7,897						20						(522)
Total commodity contracts						$	3,537					$	—					$	(1,639)					$	1,898
Total derivative instruments						$	3,553					$	—					$	(1,639)					$	1,914

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.

(In millions)			Three months ended March 31,
Unrealized mark-to-market results			2023						2022
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges			$	(846)					$	(408)
Reversal of acquired (gain) positions related to economic hedges			(25)						(60)
Net unrealized (losses)/gains on open positions related to economic hedges			(1,073)						2,745
Total unrealized mark-to-market (losses)/gains for economic hedging activities			(1,944)						2,277
Reversal of previously recognized unrealized losses on settled positions related to trading activity			1						1
Net unrealized gains/(losses) on open positions related to trading activity			11						(15)
Total unrealized mark-to-market gains/(losses) for trading activity			12						(14)
Total unrealized (losses)/gains - commodities and foreign exchange			$	(1,932)					$	2,263

			Three months ended March 31,
(In millions)			2023						2022
Unrealized gains/(losses) included in revenues - commodities			$	103					$	(147)
Unrealized (losses)/gains included in cost of operations - commodities			(2,037)						2,414
Unrealized gains/(losses) included in cost of operations - foreign exchange			2						(4)
Total impact to statement of operations - commodities and foreign exchange			$	(1,932)					$	2,263
Total impact to statement of operations - interest rate contracts			$	(5)					$	—

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