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Fair Value of Financial Instruments (Tables) | 12 Months Ended
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Dec. 31, 2024
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,
| 2024 |  | 2023
(In millions) | Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Convertible Senior Notes | $ | 232 |  |  | $ | 509 |  |  | $ | 575 |  |  | $ | 739 |
Other long-term debt, including current portion | 10,648 |  |  | 10,252 |  |  | 10,219 |  |  | 9,835 |
Total long-term debt, including current portion(a) | $ | 10,880 |  |  | $ | 10,761 |  |  | $ | 10,794 |  |  | $ | 10,574 |
(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, 2024
| Fair Value
(In millions) | Total |  | Level 1 |  | Level 2 |  | Level 3
Investments in securities (classified within other current and non-current assets) | $ | 28 |  |  | $ | — |  |  | $ | 28 |  |  | $ | — |
Derivative assets: |  |  |  |  |  |  |
Interest rate contracts | 9 |  |  | — |  |  | 9 |  |  | — |
Foreign exchange contracts | 22 |  |  | — |  |  | 22 |  |  | — |
Commodity contracts(a) | 3,368 |  |  | 528 |  |  | 2,645 |  |  | 195 |
Equity securities measured using net asset value practical expedient (classified within other non-current assets) | 6 |  |  |  |  |  |  |
Total assets | $ | 3,433 |  |  | $ | 528 |  |  | $ | 2,704 |  |  | $ | 195 |
Derivative liabilities: |  |  |  |  |  |  |
Interest rate contracts | $ | 3 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |
Foreign exchange contracts | 1 |  |  | — |  |  | 1 |  |  | — |
Commodity contracts(a) | 2,970 |  |  | 432 |  |  | 2,382 |  |  | 156 |
Consumer Financing Program | 203 |  |  | — |  |  | — |  |  | 203 |
Total liabilities | $ | 3,177 |  |  | $ | 432 |  |  | $ | 2,386 |  |  | $ | 359 |
(a)Excludes $997 million of derivative assets and $227 million of derivative liabilities that were elected as NPNS on October 1, 2024 and are no longer valued at fair value on a recurring basis. For further discussion, see Item 15 — Note 6, Accounting for Derivative Instruments and Hedging Activities
| 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 |
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, 2024 and 2023, 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) |  | 2024 |  | 2023
Beginning balance |  | $ | 119 |  |  | $ | 505 |
Total (losses) realized/unrealized included in earnings |  | (113) |  |  | (164) |
Purchases |  | 42 |  |  | 42 |
Transfers into Level 3(b) |  | 2 |  |  | 78 |
Transfers out of Level 3(b)(c) |  | (11) |  |  | (342) |
Ending balance |  | $ | 39 |  |  | $ | 119 |
(Losses) 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 |  | $ | (55) |  |  | $ | (46) |
(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. Except for the transfers out of Level 3 noted below, all other 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 years ended December 31, 2024 and 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
| For the Year Ended December 31,
(In millions) | 2024 |  | 2023
Beginning balance | $ | (134) |  |  | $ | — |
Contractual obligations added from the acquisition of Vivint Smart Home | — |  |  | (112) |
New contractual obligations | (147) |  |  | (68) |
Settlements | 92 |  |  | 62 |
Total losses included in earnings | (14) |  |  | (16) |
Ending balance | $ | (203) |  |  | $ | (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, 2024 and 2023:
| Significant Unobservable Inputs
| December 31, 2024
| Fair Value |  |  |  | Input/Range
(in millions, except as noted) | Assets |  | Liabilities |  | Valuation Technique |  | Significant Unobservable Input |  | Low |  | High |  | Weighted Average
Natural Gas Contracts | $ | 56 |  |  | $ | 15 |  |  | Discounted Cash Flow |  | Forward Market Price ($ per MMBtu) |  | $ | 2 |  |  | $ | 27 |  |  | $ | 4 |
Power Contracts | 57 |  |  | 86 |  |  | Discounted Cash Flow |  | Forward Market Price ($ per MWh) |  | 0 |  |  | 109 |  |  | 39 |
Capacity Contracts | 34 |  |  | 13 |  |  | Discounted Cash Flow |  | Forward Market Price ($ per MW/Day) |  | 16 |  |  | 510 |  |  | 220 |
Renewable Energy Certificates | 30 |  |  | 14 |  |  | Discounted Cash Flow |  | Forward Market Price ($ per Certificate) |  | 2 |  |  | 375 |  |  | 15 |
FTRs | 18 |  |  | 28 |  |  | Discounted Cash Flow |  | Auction Prices ($ per MWh) |  | (50) |  |  | 16,180 |  |  | 0 |
Consumer Financing Program | — |  |  | 203 |  |  | Discounted Cash Flow |  | Collateral Default Rates |  | 0.52 | % |  | 76.80 | % |  | 11.71 | %
|  |  |  |  | Discounted Cash Flow |  | Collateral Prepayment Rates |  | 2.00 | % |  | 3.00 | % |  | 2.83 | %
|  |  |  |  | Discounted Cash Flow |  | Credit Loss Rates |  | 6.00 | % |  | 60.00 | % |  | 14.22 | %
| $ | 195 |  |  | $ | 359 |  |  |  |  |  |  |  |  |  |  |
| 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 |  |  |  |  |  |  |  |  |  |  |
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, 2024 and 2023:
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 | 74 | %
Financial institutions | 26 |
Total | 100 | %
Category | Net Exposure (a) (b) (% of Total)
Investment grade | 55 | %
Non-Investment grade/Non-Rated | 45 |
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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