Accounting for Derivative Instruments and Hedging Activities (Tables)

12 Months Ended

Dec. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Net Notional Volume Buy/(sell) of NRG's Open Derivative Transactions Broken Out By Commodity

The following table summarizes the net notional volume buy/(sell) of NRG's open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception as of December 31, 2021 and 2020. Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date.

(In millions)		Total Volume
Commodity	Units	December 31, 2021	December 31, 2020
Emissions	Short Ton	1	1
Renewables Energy Certificates	Certificates	13	5
Coal	Short Ton	19	2
Natural Gas	MMBtu	813	(286)
Oil	Barrels	1	—
Power	MWh	185	57
Capacity	MW/Day	—	(1)
Foreign Exchange	Dollars	279	—

The increase in positions is primarily the result of Direct Energy acquisition.

Fair Value Within the Derivative Instrument Valuation On the Balance Sheet

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

	Fair Value
	Derivative Assets				Derivative Liabilities
(In millions)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Derivatives Not Designated as Cash Flow or Fair Value Hedges:
Foreign exchange contracts - current	$	—	$	—	$	1	$	—
Foreign exchange contracts - long-term	1		—		—		—
Commodity contracts- current	4,613		560		3,386		499
Commodity contracts- long-term	2,526		261		1,412		385
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges	$	7,140	$	821	$	4,799	$	884

Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received Or Paid

The following table summarizes the offsetting derivatives by counterparty master agreement level and collateral received or paid:

	Gross Amounts Not Offset in the Statement of Financial Position
(In millions)	Gross Amounts of Recognized Assets/Liabilities		Derivative Instruments		Cash Collateral (Held)/Posted		Net Amount
As of December 31, 2021
Foreign exchange contracts:
Derivative assets	$	1	$	(1)	$	—	$	—
Derivative liabilities	(1)		1		—		—
Total foreign exchange contracts	$	—	$	—	$	—	$	—
Commodity contracts:
Derivative assets	$	7,139	$	(4,440)	$	(831)	$	1,868
Derivative liabilities	(4,798)		4,440		17		(341)
Total commodity contracts	$	2,341	$	—	$	(814)	$	1,527
Total derivative instruments	$	2,341	$	—	$	(814)	$	1,527

	Gross Amounts Not Offset in the Statement of Financial Position
(In millions)	Gross Amounts of Recognized Assets/Liabilities		Derivative Instruments		Cash Collateral (Held)/Posted		Net Amount
As of December 31, 2020
Commodity contracts:
Derivative assets	$	821	$	(658)	$	(5)	$	158
Derivative liabilities	(884)		658		—		(226)
Total commodity contracts	$	(63)	$	—	$	(5)	$	(68)

Pre-tax Effects of Economic Hedges That Have Not Been Designated As Cash Flow Hedges, Ineffectiveness On Cash Flow Hedges And Trading Activity on the Company's Statement of Operations

The following table summarizes the pre-tax effects of economic hedges that have not been designated as cash flow hedges or fair value hedges and trading activity on the Company's statement of operations. The effect of foreign exchange and commodity hedges is included within operating revenues and cost of operations and the effect of interest rate hedges is included in interest expense.

	Year Ended December 31,
(In millions)	2021		2020		2019
Unrealized mark-to-market results
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges	$	(41)	$	(55)	$	(68)
Reversal of acquired loss positions related to economic hedges	256		4		6
Net unrealized gains/(losses) on open positions related to economic hedges	2,501		(68)		42
Total unrealized mark-to-market gains/(losses) for economic hedging activities	2,716		(119)		(20)
Reversal of previously recognized unrealized (gains) on settled positions related to trading activity	(18)		(20)		(11)
Reversal of acquired (gain) positions related to trading activity	(1)		—		—
Net unrealized (losses)/gains on open positions related to trading activity	(13)		15		31
Total unrealized mark-to-market (losses)/gains for trading activity	(32)		(5)		20
Total unrealized gains/(losses)	$	2,684	$	(124)	$	—

	Year Ended December 31,
(In millions)	2021		2020		2019
Unrealized (losses)/gains included in operating - commodities	$	(196)	$	90	$	53
Unrealized gains/(losses) included in cost of operations- commodities	2,880		(214)		(53)
Total impact to statement of operations- commodities	$	2,684	$	(124)	$	—
Total impact to statement of operations — interest rate contracts	$	—	$	—	$	(38)