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Fair Value of Financial Instruments (Tables) | 6 Months Ended
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Jun. 30, 2026
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 June 30, 2026 |  | As of December 31, 2025
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value
| (In millions)
Long-term debt, including current portion (a) | $ | 9,141 |  |  | $ | 8,787 |  |  | $ | 8,676 |  |  | $ | 8,382 |
(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 June 30, 2026 |  | As of December 31, 2025
| Level 2 |  | Level 3 |  | Level 2 |  | Level 3
| (In millions)
Long-term debt, including current portion | $ | 2,607 |  |  | $ | 6,180 |  |  | $ | 2,032 |  |  | $ | 6,350 |
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 June 30, 2026 |  | As of December 31, 2025
|  |  | 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) |  |  | $ | — |  |  | $ | 20 |  |  |  |  | $ | 1 |  |  | $ | 13 |  |  |
Interest rate contracts |  |  | 173 |  |  | — |  |  |  |  | 142 |  |  | — |  |  |
Other financial instruments (d) |  |  | — |  |  | 4 |  |  |  |  | — |  |  | 7 |  |  |
Total assets |  |  | $ | 173 |  |  | $ | 24 |  |  |  |  | $ | 143 |  |  | $ | 20 |  |  |
Derivative liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |
Energy-related commodity contracts (e) |  |  | $ | — |  |  | $ | 82 |  |  |  |  | $ | — |  |  | $ | 333 |  |  |
Interest rate contracts |  |  | 11 |  |  | — |  |  |  |  | 27 |  |  | — |  |  |
Total liabilities |  |  | $ | 11 |  |  | $ | 82 |  |  |  |  | $ | 27 |  |  | $ | 333 |  |  |
(a) There were no derivative assets or liabilities classified as Level 1 as of June 30, 2026 and December 31, 2025. (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 short-term backbone transportation service contracts classified as Level 2 and heat rate call option commodity contracts classified as Level 3. (d) Includes SREC contract. (e) Includes long-term power commodity contracts and heat rate call option commodity contracts classified as Level 3. As of June 30, 2026 and December 31, 2025, $80 million and $330 million, respectively, related to long-term power commodity contracts, and $2 million and $3 million, respectively, related to heat rate call option commodity 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 June 30, |  | Six months ended June 30,
|  | 2026 |  | 2025 |  | 2026 |  | 2025
(In millions) |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3) |  | Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
Beginning balance |  | $ | (168) |  |  | $ | (363) |  |  | $ | (313) |  |  | $ | (352) |
Settlements |  | 8 |  |  | 33 |  |  | 11 |  |  | 40 |
Transfers out of Level 3 (a) |  | 96 |  |  | — |  |  | 211 |  |  | — |
Total gains (losses) for the period included in earnings |  | 6 |  |  | (15) |  |  | 33 |  |  | (33) |
Ending balance |  | $ | (58) |  |  | $ | (345) |  |  | $ | (58) |  |  | $ | (345) |
Change in unrealized gains included in earnings for derivatives and other financial instruments held as of June 30, 2026 |  | $ | 6 |  |  |  |  | $ | 33 |  |  |
(a) During 2026, the Company restructured the Mesquite Sky, Langford and Elbow Creek energy-related commodity contracts, resulting in the derecognition of the related derivative liabilities and classification as in-substance financings, as further described in Note 7, Long-term Debt.
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:
| June 30, 2026
| Fair Value |  | Input/Range
| Assets | Liabilities | Valuation Technique | Significant Unobservable Input | Low | High | Weighted Average
| (In millions) |  |  |  |  |
Long-term Power Commodity Contracts | $ | — |  | $ | 80 |  | Discounted Cash Flow | Forward Market Price ($ per MWh) | $ | 31.47 |  | $ | 79.85 |  | $ | 48.47 |
Heat Rate Call Option Commodity Contracts | 20 |  | 2 |  | Option Model | Forward Market Price ($ per MWh) | 2.26 |  | 256.49 |  | 44.08 |
|  | Option Model | Forward Market Price ($ per MMBtu) | 2.15 |  | 9.91 |  | 2.66 |
Other Financial Instruments | 4 |  | — |  | Discounted Cash Flow | Forecast annual generation levels of certain DG solar facilities | 57,935 MWh | 115,869 MWh | 97,214 MWh
The following table provides the impact on the fair value measurements to increases/(decreases) in significant unobservable inputs as of June 30, 2026:
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)

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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/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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