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Accounting for Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2024

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, 2024 and December 31, 2023. 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, 2024						December 31, 2023
RECs			Certificates			14						12
Coal			Short Ton			13						9
Natural Gas			MMBtu			747						838
Power			MWh			208						201
Interest			Dollars			1,700						1,000
Foreign Exchange			Dollars			429						548
Consumer Financing Program			Dollars			1,185						1,116

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, 2024						December 31, 2023						June 30, 2024						December 31, 2023
Derivatives Not Designated as Cash Flow or Fair Value Hedges:
Interest rate contracts - current			$	20					$	12					$	—					$	—
Interest rate contracts - long-term			6						—						4						8
Foreign exchange contracts - current			6						3						—						4
Foreign exchange contracts - long-term			3						2						—						5
Commodity contracts - current			3,494						3,847						2,570						3,922
Commodity contracts - long-term			2,616						2,291						1,374						1,434
Consumer Financing Program - short-term			—						—						94						93
Consumer Financing Program - long-term			—						—						57						41
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges			$	6,145					$	6,155					$	4,099					$	5,507

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, 2024
Interest rate contracts:
Derivative assets						$	26					$	(4)					$	—					$	22
Derivative liabilities						(4)						4						—						—
Total interest rate contracts						$	22					$	—					$	—					$	22
Foreign exchange contracts:
Derivative assets						$	9					$	—					$	—					$	9
Commodity contracts:
Derivative assets						$	6,110					$	(3,726)					$	(693)					$	1,691
Derivative liabilities						(3,944)						3,726						47						(171)
Total commodity contracts						$	2,166					$	—					$	(646)					$	1,520
Consumer Financing Program:
Derivative liabilities						$	(151)					$	—					$	—					$	(151)
Total derivative instruments						$	2,046					$	—					$	(646)					$	1,400

						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, 2023
Interest rate contracts:
Derivative assets						$	12					$	(8)					$	—					$	4
Derivative liabilities						(8)						8						—						—
Total interest rate contracts						$	4					$	—					$	—					$	4
Foreign exchange contracts:
Derivative assets						$	5					$	(5)					$	—					$	—
Derivative liabilities						(9)						5						—						(4)
Total foreign exchange contracts						$	(4)					$	—					$	—					$	(4)
Commodity contracts:
Derivative assets						$	6,138					$	(4,926)					$	(74)					$	1,138
Derivative liabilities						(5,356)						4,926						145						(285)
Total commodity contracts						$	782					$	—					$	71					$	853
Consumer Financing Program:
Derivative liabilities						$	(134)					$	—					$	—					$	(134)
Total derivative instruments						$	648					$	—					$	71					$	719

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, 2024
Interest rate contracts:
Derivative assets						$	26					$	(4)					$	—					$	22
Derivative liabilities						(4)						4						—						—
Total interest rate contracts						$	22					$	—					$	—					$	22
Foreign exchange contracts:
Derivative assets						$	9					$	—					$	—					$	9
Commodity contracts:
Derivative assets						$	6,110					$	(3,726)					$	(693)					$	1,691
Derivative liabilities						(3,944)						3,726						47						(171)
Total commodity contracts						$	2,166					$	—					$	(646)					$	1,520
Consumer Financing Program:
Derivative liabilities						$	(151)					$	—					$	—					$	(151)
Total derivative instruments						$	2,046					$	—					$	(646)					$	1,400

						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, 2023
Interest rate contracts:
Derivative assets						$	12					$	(8)					$	—					$	4
Derivative liabilities						(8)						8						—						—
Total interest rate contracts						$	4					$	—					$	—					$	4
Foreign exchange contracts:
Derivative assets						$	5					$	(5)					$	—					$	—
Derivative liabilities						(9)						5						—						(4)
Total foreign exchange contracts						$	(4)					$	—					$	—					$	(4)
Commodity contracts:
Derivative assets						$	6,138					$	(4,926)					$	(74)					$	1,138
Derivative liabilities						(5,356)						4,926						145						(285)
Total commodity contracts						$	782					$	—					$	71					$	853
Consumer Financing Program:
Derivative liabilities						$	(134)					$	—					$	—					$	(134)
Total derivative instruments						$	648					$	—					$	71					$	719

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 consolidated statement of operations. The effect of foreign exchange

and commodity hedges are included within revenues and cost of operations. The effect of the interest rate contracts are included within interest expense. The effect of the Consumer Financing Program is included in other income, net.

(In millions)			Three months ended June 30,												Six months ended June 30,
Unrealized mark-to-market results			2024						2023						2024						2023
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges			$	209					$	(151)					$	453					$	(997)
Reversal of acquired loss positions related to economic hedges			17						35						5						10
Net unrealized gains/(losses) on open positions related to economic hedges			649						180						889						(893)
Total unrealized mark-to-market gains/(losses) for economic hedging activities			875						64						1,347						(1,880)
Reversal of previously recognized unrealized losses on settled positions related to trading activity			4						10						—						11
Net unrealized gains on open positions related to trading activity			5						3						5						14
Total unrealized mark-to-market gains for trading activity			9						13						5						25
Total unrealized gains/(losses) - commodities and foreign exchange			$	884					$	77					$	1,352					$	(1,855)

			Three months ended June 30,												Six months ended June 30,
(In millions)			2024						2023						2024						2023
Total impact to statement of operations - interest rate contracts			$	6					$	29					$	18					$	24
Unrealized gains included in revenues - commodities			$	93					$	88					$	29					$	191
Unrealized gains/(losses) included in cost of operations - commodities			789						5						1,312						(2,032)
Unrealized gains/(losses) included in cost of operations - foreign exchange			2						(16)						11						(14)
Total impact to statement of operations - commodities and foreign exchange			$	884					$	77					$	1,352					$	(1,855)
Total impact to statement of operations - Consumer Financing Program			$	(6)					$	(3)					$	(2)					$	(3)

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