This footnote should be read in conjunction with the complete description under Item 15 — Note 7, Accounting for Derivative Instruments and Hedging Activities, to the consolidated financial statements included in the Company’s 2021 Form 10-K.

The Company enters into interest rate swap agreements in order to hedge the variability of expected future cash interest payments. As of June 30, 2022, the Company had interest rate derivative instruments on non-recourse debt extending through 2031, a portion of which were designated as cash flow hedges. Under the interest rate swap agreements, the Company pays a fixed rate and the counterparties to the agreements pay a variable interest rate.

As of June 30, 2022, the Company had energy-related derivative instruments extending through 2033. At June 30, 2022, these contracts were not designated as cash flow or fair value hedges.

The following table summarizes the net notional volume buy/(sell) of the Company’s open derivative transactions broken out by commodity as of June 30, 2022 and December 31, 2021:


		Total Volume
		June 30, 2022		December 31, 2021
Commodity	Units	(In millions)
Natural Gas	MMBtu	—		2
Power	MWh	(19)		(17)
Interest	Dollars	$	1,200	$	1,326


	Fair Value
	Derivative Assets				Derivative Liabilities
	June 30, 2022		December 31, 2021		June 30, 2022		December 31, 2021
	(In millions)
Derivatives Designated as Cash Flow Hedges:
Interest rate contracts current	$	2	$	—	$	—	$	5
Interest rate contracts long-term	8		2		—		3
Total Derivatives Designated as Cash Flow Hedges	$	10	$	2	$	—	$	8
Derivatives Not Designated as Cash Flow Hedges:
Interest rate contracts current	$	7	$	—	$	1	$	17
Interest rate contracts long-term	27		4		1		38
Commodity contracts current	—		—		74		24
Commodity contracts long-term	—		—		279		155
Total Derivatives Not Designated as Cash Flow Hedges	$	34	$	4	$	355	$	234
Total Derivatives	$	44	$	6	$	355	$	242

The Company has elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty level. As of June 30, 2022 and December 31, 2021, there was no outstanding collateral paid or received. The following tables summarize the offsetting of derivatives by counterparty:


	Gross Amounts Not Offset in the Statement of Financial Position
As of June 30, 2022	Gross Amounts of Recognized Assets/Liabilities		Derivative Instruments		Net Amount
Commodity contracts	(In millions)

Derivative liabilities	$	(353)	$	—	$	(353)
Total commodity contracts	$	(353)	$	—	$	(353)
Interest rate contracts
Derivative assets	$	44	$	(2)	$	42
Derivative liabilities	(2)		2		—
Total interest rate contracts	$	42	$	—	$	42
Total derivative instruments	$	(311)	$	—	$	(311)


	Gross Amounts Not Offset in the Statement of Financial Position
As of December 31, 2021	Gross Amounts of Recognized Assets/Liabilities		Derivative Instruments		Net Amount
Commodity contracts	(In millions)

Derivative liabilities	$	(179)	$	—	$	(179)
Total commodity contracts	$	(179)	$	—	$	(179)
Interest rate contracts:
Derivative assets	$	6	$	(5)	$	1
Derivative liabilities	(63)		5		(58)
Total interest rate contracts	$	(57)	$	—	$	(57)
Total derivative instruments	$	(236)	$	—	$	(236)

The following table summarizes the effects on the Company’s accumulated OCI (OCL) balance attributable to interest rate swaps designated as cash flow hedge derivatives, net of tax:


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
	(In millions)
Accumulated OCI (OCL) beginning balance	$	3	$	(19)	$	(11)	$	(30)
Reclassified from accumulated OCI (OCL) to income due to realization of previously deferred amounts	1		2		3		4
Mark-to-market of cash flow hedge accounting contracts	5		(2)		17		7
Accumulated OCI (OCL) ending balance, net of income tax (benefit) expense of $—, $(4) ,$1 and $(4), respectively	9		(19)		9		(19)
Accumulated OCI (OCL) attributable to noncontrolling interests	7		(10)		7		(10)
Accumulated OCI (OCL) attributable to Clearway Energy, Inc.	$	2	$	(9)	$	2	$	(9)
Losses expected to be realized from OCI during the next 12 months, net of income tax benefit of $—	$	(1)			$	(1)


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
	(In millions)
Interest Rate Contracts (Interest expense)	$	36	$	(11)	$	77	$	36
Commodity Contracts (Mark-to-market for economic hedging activities) (a)	(49)		(28)		(174)		(50)

(a) Relates to long-term commodity contracts at Elbow Creek Wind Project LLC, or Elbow Creek, Mesquite Star, Mt. Storm, Langford and Mesquite Sky and gains or losses are recognized in operating revenues. During the six months ended June 30, 2022, the commodity contract for Langford, which previously met the NPNS exception, no longer qualified for NPNS treatment and, accordingly, is accounted for as a derivative and marked to market value through operating revenues.

Prior to the Thermal Disposition, which is further described in Note 3, Acquisitions and Dispositions, a portion of the Company’s derivative commodity contracts were related to its Thermal Business for the purchase of fuel/electricity commodities based on the forecasted usage of the thermal district energy centers. Realized gains and losses on these contracts were reflected in the fuel costs that were permitted to be billed to customers through the related customer contracts or tariffs and, accordingly, no gains or losses were reflected in the consolidated statements of income for these contracts through the period that the Company owned the Thermal Business.