Accounting for Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 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 September 30, 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	September 30, 2024	December 31, 2023
Emissions	Short Ton	1	—
RECs	Certificates	12	12
Coal	Short Ton	11	9
Natural Gas	MMBtu	759	838
Oil	Barrels	1	—
Power	MWh	206	201
Interest	Dollars	1,700	1,000
Foreign Exchange	Dollars	433	548
Consumer Financing Program	Dollars	1,275	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)	September 30, 2024		December 31, 2023		September 30, 2024		December 31, 2023
Derivatives Not Designated as Cash Flow or Fair Value Hedges:
Interest rate contracts - current	$	2	$	12	$	1	$	—
Interest rate contracts - long-term	—		—		29		8
Foreign exchange contracts - current	4		3		1		4
Foreign exchange contracts - long-term	1		2		1		5
Commodity contracts - current	2,450		3,847		2,234		3,922
Commodity contracts - long-term	1,746		2,291		1,354		1,434
Consumer Financing Program - short-term	—		—		115		93
Consumer Financing Program - long-term	—		—		85		41
Total Derivatives Not Designated as Cash Flow or Fair Value Hedges	$	4,203	$	6,155	$	3,820	$	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 September 30, 2024
Interest rate contracts:
Derivative assets	$	2	$	(2)	$	—	$	—
Derivative liabilities	(30)		2		—		(28)
Total interest rate contracts	$	(28)	$	—	$	—	$	(28)
Foreign exchange contracts:
Derivative assets	$	5	$	(1)	$	—	$	4
Derivative liabilities	(2)		1		—		(1)
Total foreign exchange contracts	$	3	$	—	$	—	$	3
Commodity contracts:
Derivative assets	$	4,196	$	(3,224)	$	(6)	$	966
Derivative liabilities	(3,588)		3,224		166		(198)
Total commodity contracts	$	608	$	—	$	160	$	768
Consumer Financing Program:
Derivative liabilities	$	(200)	$	—	$	—	$	(200)
Total derivative instruments	$	383	$	—	$	160	$	543

	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 September 30, 2024
Interest rate contracts:
Derivative assets	$	2	$	(2)	$	—	$	—
Derivative liabilities	(30)		2		—		(28)
Total interest rate contracts	$	(28)	$	—	$	—	$	(28)
Foreign exchange contracts:
Derivative assets	$	5	$	(1)	$	—	$	4
Derivative liabilities	(2)		1		—		(1)
Total foreign exchange contracts	$	3	$	—	$	—	$	3
Commodity contracts:
Derivative assets	$	4,196	$	(3,224)	$	(6)	$	966
Derivative liabilities	(3,588)		3,224		166		(198)
Total commodity contracts	$	608	$	—	$	160	$	768
Consumer Financing Program:
Derivative liabilities	$	(200)	$	—	$	—	$	(200)
Total derivative instruments	$	383	$	—	$	160	$	543

	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 September 30,				Nine months ended September 30,
Unrealized mark-to-market results	2024		2023		2024		2023
Reversal of previously recognized unrealized (gains)/losses on settled positions related to economic hedges	$	(414)	$	(522)	$	39	$	(1,519)
Reversal of acquired (gain)/loss positions related to economic hedges	(8)		(6)		(3)		4
Net unrealized (losses)/gains on open positions related to economic hedges	(1,208)		475		(319)		(418)
Total unrealized mark-to-market (losses) for economic hedging activities	(1,630)		(53)		(283)		(1,933)
Reversal of previously recognized unrealized (gains)/losses on settled positions related to trading activity	(1)		—		(1)		11
Net unrealized (losses)/gains on open positions related to trading activity	(4)		(1)		1		13
Total unrealized mark-to-market (losses)/gains for trading activity	(5)		(1)		—		24
Total unrealized (losses) - commodities and foreign exchange	$	(1,635)	$	(54)	$	(283)	$	(1,909)

	Three months ended September 30,				Nine months ended September 30,
(In millions)	2024		2023		2024		2023
Total impact to statement of operations - interest rate contracts	$	(49)	$	8	$	(31)	$	32
Unrealized gains/(losses) included in revenues - commodities	$	3	$	(71)	$	32	$	120
Unrealized (losses)/gains included in cost of operations - commodities	(1,633)		8		(321)		(2,024)
Unrealized (losses)/gains included in cost of operations - foreign exchange	(5)		9		6		(5)
Total impact to statement of operations - commodities and foreign exchange	$	(1,635)	$	(54)	$	(283)	$	(1,909)
Total impact to statement of operations - Consumer Financing Program	$	(7)	$	(1)	$	(9)	$	(4)