Nuclear Decommissioning Trust Fund

9 Months Ended

Sep. 30, 2023

NRG's Nuclear Decommissioning Trust Fund assets, which are for the decommissioning of its 44% interest in STP, are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations, because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to the Nuclear Decommissioning Trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment. As of September 30, 2023, the trust liability is classified within non-current liabilities - held-for-sale on the Company's condensed consolidated balance sheet.

The following table summarizes the aggregate fair values and unrealized gains and losses for the securities held in the trust funds, as well as information about the contractual maturities of those securities. As of September 30, 2023, the trust funds are classified within non-current assets - held-for-sale on the Company's condensed consolidated balance sheet.


	As of September 30, 2023							As of December 31, 2022
(In millions, except maturities)	Fair Value		Unrealized Gains		Unrealized Losses		Weighted-average Maturities (In years)	Fair Value		Unrealized Gains		Unrealized Losses		Weighted-average Maturities (In years)
Cash and cash equivalents	$	25	$	—	$	—	—	$	15	$	—	$	—	—
U.S. government and federal agency obligations	76		—		9		12	86		—		5		11
Federal agency mortgage-backed securities	110		—		13		24	101		—		11		26
Commercial mortgage-backed securities	31		—		4		29	35		—		4		30
Corporate debt securities	111		—		11		12	114		—		13		12
Equity securities	539		390		—		—	486		346		3		—
Foreign government fixed income securities	1		—		—		14	1		—		—		17
Total	$	893	$	390	$	37		$	838	$	346	$	36

The following table summarizes proceeds from sales of available-for-sale securities held in the trust funds and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method.


	Nine months ended September 30,
(In millions)	2023		2022
Realized gains	$	7	$	12
Realized losses	(15)		(19)
Proceeds from sale of securities	280		363