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Fair Value Measurements and Credit Concentration (Tables) | 3 Months Ended
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Mar. 31, 2016
Fair Value Disclosures [Abstract] |
Fair Value of Assets and Liabilities Measured on Recurring Basis | The assets and liabilities measured at fair value were:
| March 31, 2016 |  | December 31, 2015
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | $ | 393 |  |  | $ | 393 |  |  | $ | — |  |  | $ | — |  |  | $ | 141 |  |  | $ | 141 |  |  | $ | — |  |  | $ | — |
Restricted cash and cash equivalents (a) | 72 |  |  | 72 |  |  | — |  |  | — |  |  | 106 |  |  | 106 |  |  | — |  |  | — |
Price risk management assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodities | 840 |  |  | — |  |  | 751 |  |  | 89 |  |  | 693 |  |  | — |  |  | 597 |  |  | 96 |
Total price risk management assets | 840 |  |  | — |  |  | 751 |  |  | 89 |  |  | 693 |  |  | — |  |  | 597 |  |  | 96 |
NDT funds: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash and cash equivalents | 7 |  |  | 7 |  |  | — |  |  | — |  |  | 11 |  |  | 11 |  |  | — |  |  | — |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. large-cap | 623 |  |  | 462 |  |  | 161 |  |  | — |  |  | 616 |  |  | 457 |  |  | 159 |  |  | — |
U.S. mid/small-cap | 87 |  |  | 37 |  |  | 50 |  |  | — |  |  | 87 |  |  | 37 |  |  | 50 |  |  | — |
Debt securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury | 106 |  |  | 106 |  |  | — |  |  | — |  |  | 98 |  |  | 98 |  |  | — |  |  | — |
U.S. government sponsored agency | 5 |  |  | — |  |  | 5 |  |  | — |  |  | 6 |  |  | — |  |  | 6 |  |  | — |
Municipality | 87 |  |  | — |  |  | 87 |  |  | — |  |  | 83 |  |  | — |  |  | 83 |  |  | — |
Investment-grade corporate | 44 |  |  | — |  |  | 44 |  |  | — |  |  | 47 |  |  | — |  |  | 47 |  |  | — |
Other | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |  |  | 3 |  |  | — |
Receivables (payables), net | 2 |  |  | (1 | ) |  | 3 |  |  | — |  |  | — |  |  | (2 | ) |  | 2 |  |  | — |
Total NDT funds | 964 |  |  | 611 |  |  | 353 |  |  | — |  |  | 951 |  |  | 601 |  |  | 350 |  |  | — |
Auction rate securities (b) | 6 |  |  | — |  |  | — |  |  | 6 |  |  | 6 |  |  | — |  |  | — |  |  | 6 |
Total assets | $ | 2,275 |  |  | $ | 1,076 |  |  | $ | 1,104 |  |  | $ | 95 |  |  | $ | 1,897 |  |  | $ | 848 |  |  | $ | 947 |  |  | $ | 102 |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Price risk management liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Energy commodities | $ | 619 |  |  | $ | — |  |  | $ | 598 |  |  | $ | 21 |  |  | $ | 539 |  |  | $ | — |  |  | $ | 497 |  |  | $ | 42 |
Total price risk management liabilities | $ | 619 |  |  | $ | — |  |  | $ | 598 |  |  | $ | 21 |  |  | $ | 539 |  |  | $ | — |  |  | $ | 497 |  |  | $ | 42 |
(a) | Current portion is included in "Restricted cash and cash equivalents" and long-term portion is included in "Other noncurrent assets" on the Balance Sheets.
(b) | Included in "Other investments" on the Balance Sheets.
Reconciliation of Net Assets and Liabilities Classified as Level 3 | A reconciliation of net assets and liabilities classified as Level 3 for the period ended March 31, 2016 is as follows:
| Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
| Three Months
| Energy Commodities, net |  | Auction Rate Securities |  | Total
Balance at beginning of period | $ | 54 |  |  | $ | 6 |  |  | $ | 60 |
Total realized/unrealized gains (losses) included in earnings | 60 |  |  | — |  |  | 60 |
Settlements | (45 | ) |  | — |  |  | (45 | )
Transfers into Level 3 | 1 |  |  | — |  |  | 1 |
Transfers out of Level 3 | (2 | ) |  | — |  |  | (2 | )
Balance at end of period | $ | 68 |  |  | $ | 6 |  |  | $ | 74 |
A reconciliation of net assets and liabilities classified as Level 3 for the period ended March 31, 2015 is as follows:
|  | Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|  | Three Months
|  | Energy Commodities, net |  | Auction Rate Securities |  | Total
Balance at beginning of period |  | $ | 111 |  |  | $ | 8 |  |  | $ | 119 |
Total realized/unrealized gains (losses) included in earnings |  | (17 | ) |  | — |  |  | (17 | )
Settlements |  | 30 |  |  | — |  |  | 30 |
Transfers into Level 3 |  | 4 |  |  | — |  |  | 4 |
Transfers out of Level 3 |  | 1 |  |  | — |  |  | 1 |
Balance at end of period |  | $ | 129 |  |  | $ | 8 |  |  | $ | 137 |
Significant Unobservable Inputs Used in Fair Value Measurement of Assets and Liabilities Classified as Level 3 | The significant unobservable inputs used in and quantitative information about the fair value measurement of assets and liabilities classified as Level 3 are as follows:
| March 31, 2016
| Fair Value, net Asset (Liability) |  | Valuation Technique |  | Significant Unobservable Input(s) |  | Range (Weighted Average) (a)
Energy commodities |  |  |  |  |  |  |
Natural gas contracts (b) | $ | 57 |  |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 11% - 100% (57%)
Power sales contracts (c) | 16 |  |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 21% - 100% (69%)
FTR purchase contracts (d) | (2 | ) |  | Discounted cash flow |  | Historical settled prices used to model forward prices |  | 100% (100%)
Heat rate call options (e) | (1 | ) |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 100% (100%)
CRR purchase contracts (d) | (2 | ) |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 100% (100%)
Auction rate securities (f) | 6 |  |  | Discounted cash flow |  | Modeled from SIFMA Index |  | 45% - 47% (46%)
| December 31, 2015
| Fair Value, net Asset (Liability) |  | Valuation Technique |  | Significant Unobservable Input(s) |  | Range (Weighted Average) (a)
Energy commodities |  |  |  |  |  |  |
Natural gas contracts (b) | $ | 55 |  |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 10% - 100% (50%)
Power sales contracts (c) | 13 |  |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 10% - 100% (100%)
FTR purchase contracts (d) | (2 | ) |  | Discounted cash flow |  | Historical settled prices used to model forward prices |  | 100% (100%)
Heat rate call options (e) | (10 | ) |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 100% (100%)
CRR purchase contracts (d) | (2 | ) |  | Discounted cash flow |  | Proprietary model used to calculate forward prices |  | 100% (100%)
Auction rate securities (f) | 6 |  |  | Discounted cash flow |  | Modeled from SIFMA Index |  | 46% - 47% (46.5%)
(a) | The range and weighted average represent the percentage of fair value derived from the unobservable inputs.
(b) | As the forward price of natural gas increases/(decreases), the fair value of purchase contracts increases/(decreases). As the forward price of natural gas increases/(decreases), the fair value of sales contracts (decreases)/increases.
(c) | As forward market prices increase/(decrease), the fair value of contracts (decreases)/increases. As volumetric assumptions for contracts in a gain position increase/(decrease), the fair value of contracts increases/(decreases). As volumetric assumptions for contracts in a loss position increase/(decrease), the fair value of the contracts (decreases)/increases.
(d) | As the forward implied spread increases/(decreases), the fair value of the contracts increases/(decreases).
(e) | The proprietary model used to calculate fair value incorporates market heat rates, correlations and volatilities. As the market implied heat rate increases/(decreases), the fair value of purchased calls increases/(decreases). As the market implied heat rate increases/(decreases), the fair value of sold calls (decreases)/increases.
(f) | The model used to calculate fair value incorporates an assumption that the auctions will continue to fail. As the modeled forward rates of the SIFMA Index increase/(decrease), the fair value of the securities increases/(decreases).
Fair Value of Assets and Liabilities Classified as Level 3 Measured on Recurring Basis Included in Earnings | Net gains and losses on assets and liabilities classified as Level 3 and included in earnings for the periods ended March 31 are reported in the Statements of Income as follows:
|  | Three Months
|  | Energy Commodities, net
|  | Wholesale Energy |  | Retail Energy |  | Fuel and Energy Purchases
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |  | 2016 |  | 2015
Total gains (losses) included in earnings |  | $ | 41 |  |  | $ | 21 |  |  | $ | 18 |  |  | $ | (40 | ) |  | $ | 1 |  |  | $ | 2 |
Change in unrealized gains (losses) relating to positions still held at the reporting date |  | 13 |  |  | 25 |  |  | 7 |  |  | (9 | ) |  | (1 | ) |  | 1 |
Fair Value of Financial Instruments Not Recorded at Fair Value - Other | The carrying amounts of long-term debt on the Balance Sheets and its estimated fair values are set forth below. The fair value was primarily estimated using an income approach by discounting future cash flows at estimated current cost of funding rates, which incorporates the credit risk of Talen Energy Supply. Long-term debt is classified primarily as Level 2.
| March 31, 2016 |  | December 31, 2015
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
Long-term debt | $ | 4,268 |  |  | $ | 3,808 |  |  | $ | 4,203 |  |  | $ | 3,343 |

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- Definition Tabular disclosure of quantitative information about the inputs used in the fair value measurement. This disclosure may include, but is not limited to, the fair value of the asset or liability, valuation technique used to measure fair value, the inputs used to measure fair value, the ranges of the inputs, and the weighted averages of the inputs. + References No definition available. + Details
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- Definition This element represents, for the fair value measurement of net assets (liabilities) using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (net); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs). + References No definition available. + Details
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- Definition Tabular disclosure of the amount of gains or losses for the period included in earnings or resulted in a change to net assets, have arisen from the use of significant unobservable inputs (level 3) to measure the fair value of assets, liabilities, and financial instruments classified in shareholders' equity. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1),(d) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13476-108611 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=49121117&loc=d3e13433-108611 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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