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Fair Value of Financial Instruments (Tables)
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Estimated Carrying Amounts and Fair Values of Financial Instruments Not Carried at Fair Value
The estimated carrying value and fair value of the Company's long-term debt, including current portion, is as follows:
 As of December 31,
20212020
(In millions)Carrying AmountFair ValueCarrying AmountFair Value
Long-term debt, including current portion (a)
$8,040 $8,327 $8,781 $9,446 
(a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt on the Company's consolidated balance sheets
Assets and Liabilities Measured and Recorded at Fair Value Measured on a Recurring Basis
The fair values of derivatives assets and liabilities as of the Acquisition Closing Date were as follows:
Fair Value
(In millions)TotalLevel 1Level 2Level 3
Derivatives assets
$1,545 $155 $1,272 $118 
Derivatives liabilities1,828 207 1,489 132 
The following tables present 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 December 31, 2021
 Fair Value
(In millions)TotalLevel 1Level 2Level 3
Investments in securities (classified within other current and non-current assets)
$32 $15 $17 $— 
Nuclear trust fund investments: 
Cash and cash equivalents33 33 — — 
U.S. government and federal agency obligations112 111 1 — 
Federal agency mortgage-backed securities100 — 100 — 
Commercial mortgage-backed securities44 — 44 — 
Corporate debt securities122 — 122 — 
Equity securities494 494 — — 
Foreign government fixed income securities4 — 4 — 
Other trust fund investments (classified within other non-current assets):
U.S. government and federal agency obligations1 1 — — 
Derivative assets: 
Foreign exchange contracts1 — 1 — 
Commodity contracts7,139 981 5,701 457 
Measured using net asset value practical expedient:
Equity securities-nuclear trust fund investments99 
Equity securities (classified within other non-current assets)7 
Total assets
$8,188 $1,635 $5,990 $457 
Derivative liabilities: 
Foreign exchange contracts$1 $— $1 $— 
Commodity contracts
$4,798 $626 $4,008 $164 
Total liabilities$4,799 $626 $4,009 $164 
 As of December 31, 2020
 Fair Value
(In millions)TotalLevel 1Level 2Level 3
Investments in securities (classified within other current or non-current assets)$25 $10 $15 $— 
Nuclear trust fund investments:
Cash and cash equivalents23 23 — — 
U.S. government and federal agency obligations70 69 1 — 
Federal agency mortgage-backed securities89 — 89 — 
Commercial mortgage-backed securities36 — 36 — 
Corporate debt securities144 — 144 — 
Equity securities434 434 — — 
Foreign government fixed income securities7 1 6 — 
Other trust fund investments (classified within other non-current assets):
U.S. government and federal agency obligations1 1 — — 
Derivative assets:
Commodity contracts821 59 623 139 
Measured using net asset value practical expedient:
Equity securities-nuclear trust fund investments87 
Equity securities (classified within other non-current assets)8 
Total assets$1,745 $597 $914 $139 
Derivative liabilities:
Commodity contracts$884 $86 $643 $155 
Total liabilities$884 $86 $643 $155 
Reconciliation of Beginning and Ending Balances for Financial Instruments that are Recognized at Fair Value using Significant Unobservable Inputs
The following tables reconcile, for the years ended December 31, 2021 and 2020, the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
 For the Year Ended December 31, 2021
 Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
(In millions)
Derivatives (a)
Beginning balance as of January 1, 2021$(16)
Contracts added from Direct Energy acquisition
(15)
Total gains realized/unrealized included in earnings
145 
Purchases93 
Transfers into Level 3 (b)
71 
Transfers out of Level 3 (b)
15 
Ending balance as of December 31, 2021$293 
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2021
$120 
(a)Consists of derivatives assets and liabilities, net
(b)Transfers into/out of Level 3 are related to the availability of external broker quotes, and are valued as of the end of the reporting period. All transfers into/out of Level 3 are from/to Level 2
 For the Year Ended December 31, 2020
 Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
(In millions)
Derivatives (a)
Beginning balance as of January 1, 2020$38 
Total (losses) realized/unrealized included in earnings
(44)
Purchases(13)
Transfers into Level 3 (b)
1 
Transfers out of Level 3 (b)
2 
Ending balance as of December 31, 2020$(16)
Gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of December 31, 2020
$9 
(a)Consists of derivatives assets and liabilities, net
(b)Transfers into/out of Level 3 are related to the availability of external broker quotes, and are valued as of the end of the reporting period. All transfers into/out of Level 3 are from/to Level 2
Schedule of Significant Unobservable Inputs used in Developing Fair Value of Level 3 Positions
The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of December 31, 2021 and 2020:
Significant Unobservable Inputs
December 31, 2021
Fair ValueInput/Range
(In millions)AssetsLiabilitiesValuation TechniqueSignificant Unobservable InputLowHighWeighted Average
Natural Gas Contracts$16 $1 Discounted Cash FlowForward Market Price (per MMBtu)$3 $40 $15 
Power Contracts392 121 Discounted Cash FlowForward Market Price (per MWh)3 212 35 
FTRs49 42 Discounted Cash FlowAuction Prices (per MWh)(122)43 0 
$457 $164 
Significant Unobservable Inputs
December 31, 2020
Fair ValueInput/Range
(In millions)AssetsLiabilitiesValuation TechniqueSignificant Unobservable InputLowHighWeighted Average
Power Contracts$111 $143 Discounted Cash FlowForward Market Price (per MWh)$10 $105 $21 
FTRs28 12 Discounted Cash FlowAuction Prices (per MWh)(28)43 0 
$139 $155 
Fair Value Inputs, Sensitivity Analysis The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of December 31, 2021 and 2020:
Significant Unobservable InputPositionChange In InputImpact on Fair Value Measurement
Forward Market Price Natural Gas/ PowerBuyIncrease/(Decrease)Higher/(Lower)
Forward Market Price Natural Gas/PowerSellIncrease/(Decrease)Lower/(Higher)
FTR PricesBuyIncrease/(Decrease)Higher/(Lower)
FTR PricesSellIncrease/(Decrease)Lower/(Higher)
Net Counterparty Credit Exposure by Industry Sector and by Counterparty Credit Quality The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and NPNS, and non-derivative transactions. The exposure is shown net of collateral held, and includes amounts net of receivables or payables.
Category
Net Exposure (a) (b)
(% of Total)
Utilities, energy merchants, marketers and other67 %
Financial institutions33 
Total
100 %
Category
Net Exposure (a) (b)
(% of Total)
Investment grade55 %
Non-Investment grade/Non-Rated45 
Total
100 %
(a)Counterparty credit exposure excludes uranium and coal transportation contracts because of the unavailability of market prices
(b)The figures in the tables above exclude potential counterparty credit exposure related to RTOs, ISOs, registered commodity exchanges and certain long term contracts