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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Schedule of Estimated Carrying Values and Fair Values

The carrying amount and estimated fair value of the Company’s recorded financial instrument not carried at fair market value or that does not approximate fair value is as follows:

			As of September 30, 2025												As of December 31, 2024
			Carrying Amount						Fair Value						Carrying Amount						Fair Value
			(In millions)
Long-term debt, including current portion (a)			$	8,492					$	8,159					$	7,237					$	6,715

(a) Excludes net debt issuance costs, which are recorded as a reduction to long-term debt on the Company’s consolidated balance sheets.

Schedule of Fair Value Option, Disclosures

The following table presents the level within the fair value hierarchy for long-term debt, including current portion:

			As of September 30, 2025												As of December 31, 2024
			Level 2						Level 3						Level 2						Level 3
			(In millions)
Long-term debt, including current portion			$	2,004					$	6,155					$	1,922					$	4,793

Schedule of Fair Value, Assets and Liabilities

The following table presents 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 September 30, 2025												As of December 31, 2024
									Fair Value (a)												Fair Value (a)
(In millions)									Level 2 (b)						Level 3												Level 2 (b)						Level 3
Derivative assets:
Energy-related commodity contracts (c)									$	—					$	12											$	—					$	9
Interest rate contracts									123						—												166						—
Other financial instruments (d)									—						7												—						10
Total assets									$	123					$	19											$	166					$	19
Derivative liabilities:
Energy-related commodity contracts (e)									$	1					$	336											$	—					$	371
Interest rate contracts									37						—												—						—
Total liabilities									$	38					$	336											$	—					$	371

(a) There were no derivative assets or liabilities classified as Level 1 as of September 30, 2025 and December 31, 2024.

(b) The Company’s interest rate swaps are measured at fair value using an income approach, which uses readily observable inputs, such as forward interest rates (e.g., SOFR) and contractual terms to estimate fair value.

(c) Includes heat rate call option contracts.

(d) Includes SREC contract.

(e) Includes short-term backbone transportation service contracts classified as Level 2, and long-term power commodity contracts and heat rate call option contracts classified as Level 3. As of September 30, 2025 and December 31, 2024, respectively, $336 million and $366 million related to long-term power commodity contracts, and zero and $5 million related to heat rate call option contracts.

The following table reconciles the beginning and ending balances for instruments that are recognized at fair value in the consolidated financial statements using significant unobservable inputs:

						Three months ended September 30,												Nine months ended September 30,
						2025						2024						2025						2024
(In millions)						Fair Value Measurement Using Significant Unobservable Inputs (Level 3)												Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Beginning balance						$	(345)					$	(381)					$	(352)					$	(317)
Settlements						44						6						84						—
Total (losses) gains for the period included in earnings						(16)						66						(49)						8
Ending balance						$	(317)					$	(309)					$	(317)					$	(309)
Change in unrealized losses included in earnings for derivatives and other financial instruments held as of September 30, 2025						$	(16)											$	(49)

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following table quantifies the significant unobservable inputs used in developing the fair value of the Company’s Level 3 positions:

			September 30, 2025
			Fair Value												Input/Range
			Assets			Liabilities			Valuation Technique			Significant Unobservable Input			Low			High			Weighted Average
			(In millions)
Long-term Power Commodity Contracts			$	—		$	336		Discounted Cash Flow			Forward Market Price ($ per MWh)			$	29.89		$	90.24		$	47.79
Heat Rate Call Option Commodity Contracts			12			—			Option Model			Forward Market Price ($ per MWh)			(19.74)			777.56			47.27
									Option Model			Forward Market Price ($ per MMBtu)			1.21			24.08			3.92
Other Financial Instruments			7			—			Discounted Cash Flow			Forecast annual generation levels of certain DG solar facilities			60,047 MWh			120,094 MWh			108,791 MWh

The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2025:

Type

Significant Unobservable Input

Position

Change In Input

Impact on Fair Value Measurement

Energy-Related Commodity Contracts

Forward Market Price Power

Sell

Increase/(Decrease)

Lower/(Higher)

Energy-Related Commodity Contracts

Forward Market Price Gas

Sell

Increase/(Decrease)

Higher/(Lower)

Other Financial Instruments

Forecast Generation Levels

Sell

Increase/(Decrease)

Higher/(Lower)

X

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