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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Fair Value Disclosures [Abstract]

Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value

The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows:

			June 30, 2025												December 31, 2024
(In millions)			Carrying Amount						Fair Value						Carrying Amount						Fair Value
Convertible Senior Notes(a)			$	232					$	910					$	232					$	509
Other long-term debt, including current portion			10,777						10,649						10,648						10,252
Total long-term debt, including current portion(b)			$	11,009					$	11,559					$	10,880					$	10,761

(a)The Company settled all of the outstanding Convertible Senior Notes as of July 8, 2025. For further discussion, see Note 7, Long-term Debt and Finance Leases

(b)Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets

The following table presents the level within the fair value hierarchy for long-term debt, including current portion, as of June 30, 2025 and December 31, 2024:

			June 30, 2025												December 31, 2024
(In millions)			Level 2						Level 3						Level 2						Level 3
Convertible Senior Notes			$	910					$	—					$	509					$	—
Other long-term debt, including current portion			10,514						135						10,252						—
Total long-term debt, including current portion			$	11,424					$	135					$	10,761					$	—

Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis

The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy:

			June 30, 2025
			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:
Foreign exchange contracts			3						—						3						—
Commodity contracts(a)			3,213						490						2,413						310
Equity securities measured using net asset value practical expedient (classified within other non-current assets)			7
Total assets			$	3,251					$	490					$	2,444					$	310
Derivative liabilities:
Interest rate contracts			$	7					$	—					$	7					$	—
Foreign exchange contracts			3						—						3						—
Commodity contracts(a)			2,815						362						2,224						229
Consumer Financing Program			257						—						—						257
Total liabilities			$	3,082					$	362					$	2,234					$	486

(a)Excludes $861 million of derivative assets and $145 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 Note 6, Accounting for Derivative Instruments and Hedging Activities

			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 Note 6, Accounting for Derivative Instruments and Hedging Activities

Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs

The following table reconciles, for the three and six months ended June 30, 2025 and 2024, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs, for commodity derivatives:

			Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
			Commodity Derivatives(a)
(In millions)			Three months ended June 30, 2025						Three months ended June 30, 2024						Six months ended June 30, 2025						Six months ended June 30, 2024
Beginning balance			$	49					$	91					$	39					$	119
Contracts added from Texas Generation Portfolio acquisition			(91)						—						(91)						—
Total gains/(losses) realized/unrealized included in earnings			22						4						34						(37)
Purchases			37						31						37						31
Transfers into Level 3(b)			63						2						63						17
Transfers out of Level 3(b)			1						(7)						(1)						(9)
Ending balance			$	81					$	121					$	81					$	121
Gains/(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 period end			$	5					$	8					$	47					$	(29)

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

(b)Transfers into/out of Level 3 within the fair value hierarchy are related to the availability of consensus pricing and external broker quotes, including volatilities, and are valued as of the end of the reporting period. All transfers in/out of Level 3 are from/to Level 2

Reconciliation of contractual obligations of Consumer Financing Program recognized at fair value

The following table reconciles, for the three and six months ended June 30, 2025 and 2024, 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)			Three months ended June 30, 2025						Three months ended June 30, 2024						Six months ended June 30, 2025						Six months ended June 30, 2024
Beginning balance			$	(207)					$	(124)					$	(203)					$	(134)
New contractual obligations			(81)						(43)						(113)						(58)
Settlements			31						22						67						43
Total losses included in earnings			—						(6)						(8)						(2)
Ending balance			$	(257)					$	(151)					$	(257)					$	(151)

Significant unobservable inputs used developing fair values, Quantitative Information

The following tables quantify the significant, unobservable inputs used in developing the fair value of the Company's Level 3 positions as of June 30, 2025 and December 31, 2024:

			June 30, 2025
			Fair Value																								Input/Range
(In millions, except as noted)			Assets						Liabilities						Valuation Technique						Significant Unobservable Input						Low						High						Weighted Average
Natural Gas Contracts			$	32					$	9					Discounted Cash Flow						Forward Market Price ($ per MMBtu)						$	1					$	18					$	4
Power Contracts			128						66						Discounted Cash Flow						Forward Market Price ($ per MWh)						2						123						36
Capacity Contracts			27						9						Discounted Cash Flow						Forward Market Price ($ per MW/Day)						16						524						218
RECs			18						38						Discounted Cash Flow						Forward Market Price ($ per Certificate)						2						380						15
FTRs			24						12						Discounted Cash Flow						Auction Prices ($ per MWh)						(36,281)						3,011						0
Power Options			81						95						Option Models						Volatilities						24		%				774		%				126		%
Consumer Financing Program			—						257						Discounted Cash Flow						Collateral Default Rates						0.75		%				49.78		%				8.47		%
															Discounted Cash Flow						Collateral Prepayment Rates						2.00		%				3.00		%				2.62		%
															Discounted Cash Flow						Credit Loss Rates						6.30		%				60.00		%				16.53		%
			$	310					$	486

			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
RECs			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

Fair value inputs, sensitivity analysis

The following table provides sensitivity of fair value measurements to increases/(decreases) in significant, unobservable inputs as of June 30, 2025 and December 31, 2024:

Significant Unobservable Input

Position

Change In Input

Impact on Fair Value Measurement

Forward Market Price Natural Gas/Power/Capacity/RECs

Buy

Increase/(Decrease)

Higher/(Lower)

Forward Market Price Natural Gas/Power/Capacity/RECs

Sell

Increase/(Decrease)

Lower/(Higher)

FTR Prices

Buy

Increase/(Decrease)

Higher/(Lower)

FTR Prices

Sell

Increase/(Decrease)

Lower/(Higher)

Volatilities

Buy

Increase/(Decrease)

Higher/(Lower)

Volatilities

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.

			Net Exposure(a)(b)
Category by Industry Sector			(% of Total)
Utilities, energy merchants, marketers and other			69		%
Financial institutions			31
Total as of June 30, 2025			100		%

			Net Exposure (a)(b)
Category by Counterparty Credit Quality			(% of Total)
Investment grade			64		%
Non-investment grade/Non-Rated			36
Total as of June 30, 2025			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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