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Fair Value of Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2023

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,
			2023												2022
(In millions)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Convertible Senior Notes			$	575					$	739					$	575					$	576
Other long-term debt, including current portion			10,219						9,835						7,523						6,432
Total long-term debt, including current portion(a)			$	10,794					$	10,574					$	8,098					$	7,008

(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, 2023
			Fair Value
(In millions)			Total						Level 1						Level 2						Level 3
Investments in securities (classified within other current and non-current assets)			$	21					$	—					$	21					$	—
Derivative assets:
Interest rate contracts			12						—						12						—
Foreign exchange contracts			5						—						5						—
Commodity contracts			6,138						1,334						4,470						334
Equity securities measured using net asset value practical expedient (classified within other non-current assets)			6
Total assets			$	6,182					$	1,334					$	4,508					$	334
Derivative liabilities:
Interest rate contracts			$	8					$	—					$	8					$	—
Foreign exchange contracts			9						—						9						—
Commodity contracts			5,356						1,413						3,728						215
Consumer Financing Program			134						—						—						134
Total liabilities			$	5,507					$	1,413					$	3,745					$	349

			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

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, 2023 and 2022, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs, for commodity derivatives:

						Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
						Commodity Derivatives (a)
						For the Year Ended December 31,
(In millions)						2023						2022
Beginning balance						$	505					$	293
Total (losses)/gains realized/unrealized included in earnings						(164)						53
Purchases						42						(110)
Transfers into Level 3(b)						78						264
Transfers out of Level 3(b)(c)						(342)						5
Ending balance						$	119					$	505
(Losses)/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						$	(46)					$	204

(a)Consists of derivatives assets and liabilities, net, excluding derivative liabilities from Consumer Financing Program, which are presented in a separate table below

(b)Transfers into/out of Level 3 are related to the availability of consensus pricing and 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

(c)For the year ended December 31, 2023, due to the change to use consensus pricing, there was a decrease in the number of contracts valued with prices provided by models and other valuation techniques, which resulted in a large transfer out of Level 3

Reconciliation of Contractual Obligations of Consumer Financing Program Recognized at Fair Value

The following table reconciles, for the year ended December 31, 2023, the beginning and ending balances of the contractual obligations from the Consumer Financing Program that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs:

									Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
									Consumer Financing Program
(In millions)									For the Year Ended December 31, 2023
Beginning balance									$	—
Contractual obligations added from the acquisition of Vivint Smart Home									(112)
New contractual obligations									(68)
Settlements									62
Total losses included in earnings									(16)
Ending balance									$	(134)

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, 2023 and 2022:

			Significant Unobservable Inputs
			December 31, 2023
			Fair Value																								Input/Range
(in millions, except as noted)			Assets						Liabilities						Valuation Technique						Significant Unobservable Input						Low						High						Weighted Average
Natural Gas Contracts			$	39					$	65					Discounted Cash Flow						Forward Market Price ($ per MMBtu)						$	1					$	15					$	3
Power Contracts			197						66						Discounted Cash Flow						Forward Market Price ($ per MWh)						1						210						47
Capacity Contracts			21						33						Discounted Cash Flow						Forward Market Price ($ per MW/Day)						49						658						285
Renewable Energy Certificates			58						14						Discounted Cash Flow						Forward Market Price ($ per Certificate)						2						320						15
FTRs			19						37						Discounted Cash Flow						Auction Prices ($ per MWh)						(58)						252						0
Consumer Financing Program			—						134						Discounted Cash Flow						Collateral Default Rates						0.43		%				93.30		%				8.12		%
															Discounted Cash Flow						Collateral Prepayment Rates						2.00		%				3.00		%				2.95		%
															Discounted Cash Flow						Credit Loss Rates						6.00		%				60.00		%				12.57		%
			$	334					$	349

			Significant Unobservable Inputs
			December 31, 2022
			Fair Value																								Input/Range
(in millions, except as noted)			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

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, 2023 and 2022:

Significant Unobservable Input

Position

Change In Input

Impact on Fair Value Measurement

Forward Market Price Natural Gas/Power/Capacity/Renewable Energy Certificates

Buy

Increase/(Decrease)

Higher/(Lower)

Forward Market Price Natural Gas/Power/Capacity/Renewable Energy Certificates

Sell

Increase/(Decrease)

Lower/(Higher)

FTR Prices

Buy

Increase/(Decrease)

Higher/(Lower)

FTR Prices

Sell

Increase/(Decrease)

Lower/(Higher)

Collateral Default Rates

n/a

Increase/(Decrease)

Higher/(Lower)

Collateral Prepayment Rates

n/a

Increase/(Decrease)

Lower/(Higher)

Credit Loss Rates

n/a

Increase/(Decrease)

Higher/(Lower)

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			80		%
Financial institutions			20
Total			100		%

Category			Net Exposure (a) (b) (% of Total)
Investment grade			44		%
Non-Investment grade/Non-Rated			56
Total			100		%

(a)Counterparty credit exposure excludes 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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