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Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Net notional volume buy/(sell) of NRG Yield's open derivative transactions broken out by commodity

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 within the derivative instrument valuation on the balance sheets

The following table summarizes the fair value within the derivative instrument valuation on the consolidated balance sheets:

			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

Offsetting of derivatives by counterparty master agreement level and collateral received or paid

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)

Effects of NRG Yield's accumulated OCI balance attributable to interest rate swaps designated as cash flow hedge derivatives, net of tax

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)

Derivative gains and losses

Mark-to-market gains and losses related to the Company’s derivatives are recorded in the consolidated statements of income as follows:

			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.

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Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements.

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Tabular disclosure of gain (loss) on derivative and nonderivative instruments designated and qualifying as cash flow hedge recorded in accumulated other comprehensive income (AOCI) and reclassified into earnings.

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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