Accounting for Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2024

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 category, excluding those derivatives that qualified for the NPNS exception, as of March 31, 2024 and December 31, 2023. 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.

		Total Volume (In millions)
Category	Units	March 31, 2024	December 31, 2023
Renewable Energy Certificates	Certificates	14	12
Coal	Short Ton	7	9
Natural Gas	MMBtu	819	838
Power	MWh	201	201
Interest	Dollars	1,700	1,000
Foreign Exchange	Dollars	499	548
Consumer Financing Program	Dollars	1,088	1,116

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 balance sheets:

	Fair Value
	Derivative Assets				Derivative Liabilities
(In millions)	March 31, 2024		December 31, 2023		March 31, 2024		December 31, 2023
Derivatives Not Designated as Cash Flow or Fair Value Hedges:
Interest rate contracts - current	$	21	$	12	$	—	$	—
Interest rate contracts - long-term	4		—		10		8
Foreign exchange contracts - current	5		3		1		4
Foreign exchange contracts - long-term	3		2		1		5
Commodity contracts - current	3,781		3,847		3,505		3,922
Commodity contracts - long-term	2,392		2,291		1,389		1,434
Consumer Financing Program - short-term	—		—		85		93
Consumer Financing Program - long-term	—		—		39		41
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges	$	6,206	$	6,155	$	5,030	$	5,507

Offsetting of derivatives by counterparty assets

The following table summarizes the offsetting of 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 March 31, 2024
Interest rate contracts:
Derivative assets	$	25	$	(9)	$	—	$	16
Derivative liabilities	(10)		9		—		(1)
Total interest rate contracts	$	15	$	—	$	—	$	15
Foreign exchange contracts:
Derivative assets	$	8	$	(2)	$	—	$	6
Derivative liabilities	(2)		2		—		—
Total foreign exchange contracts	$	6	$	—	$	—	$	6
Commodity contracts:
Derivative assets	$	6,173	$	(4,609)	$	(237)	$	1,327
Derivative liabilities	(4,894)		4,609		35		(250)
Total commodity contracts	$	1,279	$	—	$	(202)	$	1,077
Consumer Financing Program:
Derivative liabilities	$	(124)	$	—	$	—	$	(124)
Total derivative instruments	$	1,176	$	—	$	(202)	$	974

	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, 2023
Interest rate contracts:
Derivative assets	$	12	$	(8)	$	—	$	4
Derivative liabilities	(8)		8		—		—
Total interest rate contracts	$	4	$	—	$	—	$	4
Foreign exchange contracts:
Derivative assets	$	5	$	(5)	$	—	$	—
Derivative liabilities	(9)		5		—		(4)
Total foreign exchange contracts	$	(4)	$	—	$	—	$	(4)
Commodity contracts:
Derivative assets	$	6,138	$	(4,926)	$	(74)	$	1,138
Derivative liabilities	(5,356)		4,926		145		(285)
Total commodity contracts	$	782	$	—	$	71	$	853
Consumer Financing Program:
Derivative liabilities	$	(134)	$	—	$	—	$	(134)
Total derivative instruments	$	648	$	—	$	71	$	719

Offsetting of derivatives by counterparty, liabilities

The following table summarizes the offsetting of 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 March 31, 2024
Interest rate contracts:
Derivative assets	$	25	$	(9)	$	—	$	16
Derivative liabilities	(10)		9		—		(1)
Total interest rate contracts	$	15	$	—	$	—	$	15
Foreign exchange contracts:
Derivative assets	$	8	$	(2)	$	—	$	6
Derivative liabilities	(2)		2		—		—
Total foreign exchange contracts	$	6	$	—	$	—	$	6
Commodity contracts:
Derivative assets	$	6,173	$	(4,609)	$	(237)	$	1,327
Derivative liabilities	(4,894)		4,609		35		(250)
Total commodity contracts	$	1,279	$	—	$	(202)	$	1,077
Consumer Financing Program:
Derivative liabilities	$	(124)	$	—	$	—	$	(124)
Total derivative instruments	$	1,176	$	—	$	(202)	$	974

	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, 2023
Interest rate contracts:
Derivative assets	$	12	$	(8)	$	—	$	4
Derivative liabilities	(8)		8		—		—
Total interest rate contracts	$	4	$	—	$	—	$	4
Foreign exchange contracts:
Derivative assets	$	5	$	(5)	$	—	$	—
Derivative liabilities	(9)		5		—		(4)
Total foreign exchange contracts	$	(4)	$	—	$	—	$	(4)
Commodity contracts:
Derivative assets	$	6,138	$	(4,926)	$	(74)	$	1,138
Derivative liabilities	(5,356)		4,926		145		(285)
Total commodity contracts	$	782	$	—	$	71	$	853
Consumer Financing Program:
Derivative liabilities	$	(134)	$	—	$	—	$	(134)
Total derivative instruments	$	648	$	—	$	71	$	719

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 consolidated statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations. The effect of the interest rate contracts are included within interest expense. The effect of the Consumer Financing Program is included in other income, net.

(In millions)	Three months ended March 31,
Unrealized mark-to-market results	2024		2023
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges	$	244	$	(846)
Reversal of acquired (gain) positions related to economic hedges	(12)		(25)
Net unrealized gains/(losses) on open positions related to economic hedges	240		(1,073)
Total unrealized mark-to-market gains/(losses) for economic hedging activities	472		(1,944)
Reversal of previously recognized unrealized (gains)/losses on settled positions related to trading activity	(4)		1
Net unrealized gains on open positions related to trading activity	—		11
Total unrealized mark-to-market (losses)/gains for trading activity	(4)		12
Total unrealized gains/(losses) - commodities and foreign exchange	$	468	$	(1,932)

	Three months ended March 31,
(In millions)	2024		2023
Total impact to statement of operations - interest rate contracts	$	12	$	(5)
Unrealized (losses)/gains included in revenues - commodities	$	(64)	$	103
Unrealized gains/(losses) included in cost of operations - commodities	523		(2,037)
Unrealized gains included in cost of operations - foreign exchange	9		2
Total impact to statement of operations - commodities and foreign exchange	$	468	$	(1,932)
Total impact to statement of operations - Consumer Financing Program	$	4	$	—