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Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables)
 9 Months Ended
Sep. 30, 2017
Fair Value of Financial Instruments  
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis
GenOn
The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn’s consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
 
As of September 30, 2017
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
56

 
$
—

 
$
56

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
36

 
$
5

 
$
41

Other assets (b)
$
8

 
$
—

 
$
—

 
$
8

(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
(b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees.
 
As of December 31, 2016
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
122

 
$
2

 
$
124

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
119

 
$
3

 
$
122

Other assets (b)
$
10

 
$
—

 
$
—

 
$
10

(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016.
(b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees.
Reconciliation of 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
The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for derivatives that are recognized at fair value in GenOn's consolidated financial statements at least annually using significant unobservable inputs:

Fair Value Measurement Using Significant Unobservable Inputs (Level 3)

Three months ended September 30,

Nine months ended September 30,

2017

2016

2017

2016

Derivatives (a)

Derivatives (a)

(In millions)
Beginning balance
$
(2
)

$
(11
)

$
(1
)

$
(12
)
Total (losses)/gains included in earnings — realized/unrealized
(1
)

7


(2
)

6

Purchases
(2
)

(1
)

(2
)

1

Transfers out of Level 3 (b)
—


1


—


1

Ending balance
$
(5
)

$
(4
)

$
(5
)

$
(4
)
(Losses)/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 September 30
$
(1
)

$
5


$
(3
)

$
(3
)
(a) Consists of derivative assets and liabilities, net.
(b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period.
Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions
The following tables quantify the significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions as of September 30, 2017 and December 31, 2016:
GenOn

Significant Unobservable Inputs

September 30, 2017

Fair Value



Input/Range

Assets

Liabilities

Valuation Technique

Significant Unobservable Input

Low

High

Weighted Average

(In millions)










FTRs
$
—


$
5


Discounted Cash Flow

Auction Prices (per MWh)

$
(3
)

$
1


$
—


$
—


$
5












Significant Unobservable Inputs

December 31, 2016

Fair Value



Input/Range

Assets

Liabilities

Valuation Technique

Significant Unobservable Input

Low

High

Weighted Average

(In millions)










Power Contracts
$
1


$
—


Discounted Cash Flow

Forward Market Price (per MWh)

$
29


$
59


$
43

Coal Contracts
—


1


Discounted Cash Flow

Forward Market Price (per ton)

42


51


45

FTRs
1


2


Discounted Cash Flow

Auction Prices (per MWh)

(2
)

3


—


$
2


$
3
Schedule of sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs
The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2017 and December 31, 2016:
Significant Unobservable Input
 
Position
 
Change In Input
 
Impact on Fair Value Measurement
Forward Market Price Power/Coal
 
Buy
 
Increase/(Decrease)
 
Higher/(Lower)
Forward Market Price Power/Coal
 
Sell
 
Increase/(Decrease)
 
Lower/(Higher)
FTR Prices
 
Buy
 
Increase/(Decrease)
 
Higher/(Lower)
FTR Prices
 
Sell
 
Increase/(Decrease)
 
Lower/(Higher)
Schedule of credit reserves for derivative contract assets
The Registrants' credit reserves were as follows:

As of September 30, 2017

As of December 31, 2016

(In millions)
GenOn
$
—


$
1

GenOn Americas Generation
—


1
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 the Registrants with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market, NPNS and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables.

Net Exposure (a) (b)
(% of Total)
Category by Industry Sector
GenOn

GenOn Americas Generation

GenOn Mid-Atlantic
Utilities, energy merchants, marketers and other
100
%

100
%

—
%
Total as of September 30, 2017
100
%

100
%

—
%

Net Exposure (a) (b)
(% of Total)
Category by Counterparty Credit Quality
GenOn

GenOn Americas Generation

GenOn Mid-Atlantic
Investment grade
96
%

96
%

—
%
Non-Investment grade/Non-rated
4


4


—

Total as of September 30, 2017
100
%

100
%

—
%

(a)
Counterparty credit exposure excludes 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.
GenOn Americas Generation  
Fair Value of Financial Instruments  
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis
GenOn Americas Generation
The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Americas Generation's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
 
As of September 30, 2017
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
89

 
$
5

 
$
94

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
88

 
$
6

 
$
94

(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
 
As of December 31, 2016
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
209

 
$
5

 
$
214

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
212

 
$
5

 
$
217


(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016.
Reconciliation of 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
The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Americas Generation's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
 
Derivatives (a)
 
Derivatives (a)
 
(In millions)
Beginning balance
$
—

 
$
1

 
$
—

 
$
1

Total losses included in earnings — realized/unrealized
(1
)
 
—

 
(1
)
 
(1
)
Purchases
—

 
(1
)
 
—

 
—

Transfers out of Level 3 (b)
—

 
1

 
—

 
1

Ending balance
$
(1
)
 
$
1

 
$
(1
)
 
$
1

Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30
$
(1
)
 
$
—

 
$
(1
)
 
$
—


(a) Consists of derivative assets and liabilities, net.
(b) Transfers out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period.

Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions
GenOn Americas Generation
 
Significant Unobservable Inputs
 
September 30, 2017
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
FTRs
$
5

 
$
6

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
$
(3
)
 
$
1

 
$
—

 
$
5

 
$
6

 
 
 
 
 
 
 
 
 
 
 
Significant Unobservable Inputs
 
December 31, 2016
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Power Contracts
$
1

 
$
—

 
Discounted Cash Flow
 
Forward Market Price (per MWh)
 
$
29

 
$
59

 
$
43

Coal Contracts
1

 
1

 
Discounted Cash Flow
 
Forward Market Price (per ton)
 
42

 
51

 
45

FTRs
3

 
4

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
(2
)
 
3

 
—

 
$
5

 
$
5

 
 
 
 
 
 
 
 
 
 
GenOn Mid-Atlantic  
Fair Value of Financial Instruments  
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis
GenOn Mid-Atlantic
The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Mid-Atlantic's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy:
 
As of September 30, 2017
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
12

 
$
—

 
$
12

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
13

 
$
1

 
$
14

(a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2017.
 
As of December 31, 2016
 
Fair Value
 
Level 1 (a)
 
Level 2 (a)
 
Level 3
 
Total
 
(In millions)
Derivative assets:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
47

 
$
1

 
$
48

Derivative liabilities:
 
 
 
 
 
 
 
Commodity contracts
$
—

 
$
45

 
$
1

 
$
46


(a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2016.
Reconciliation of 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
The following table reconciles, for the three and nine months ended September 30, 2017 and 2016, the beginning and ending balances for GenOn Mid-Atlantic's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs:
 
Fair Value Measurement Using Significant Unobservable Inputs (Level 3)
 
Three months ended September 30,
 
Nine months ended September 30,
 
2017
 
2016
 
2017
 
2016
 
Derivatives (a)
 
Derivatives (a)
 
(In millions)
Beginning balance
$
—

 
$
1

 
$
—

 
$
2

Total losses included in earnings — realized/unrealized
(1
)
 
—

 
(1
)
 
(1
)
Ending balance
$
(1
)
 
$
1

 
$
(1
)
 
$
1

Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30
$
(1
)
 
$
—

 
$
(1
)
 
$
—


(a) Consists of derivative assets and liabilities, net.
Schedule of significant unobservable inputs used in developing the fair value of the Registrants' Level 3 positions
GenOn Mid-Atlantic
 
Significant Unobservable Inputs
 
September 30, 2017
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
FTRs
$
—

 
$
1

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
$
—

 
$
1

 
$
—

 
$
—

 
$
1

 
 
 
 
 
 
 
 
 
 
 
Significant Unobservable Inputs
 
December 31, 2016
 
Fair Value
 
 
 
Input/Range
 
Assets
 
Liabilities
 
Valuation Technique
 
Significant Unobservable Input
 
Low
 
High
 
Weighted Average
 
(In millions)
 
 
 
 
 
 
 
 
 
 
Power Contracts
$
1

 
$
—

 
Discounted Cash Flow
 
Forward Market Price (per MWh)
 
$
29

 
$
59

 
$
43

FTRs
—

 
1

 
Discounted Cash Flow
 
Auction Prices (per MWh)
 
—

 
1

 
—

 
$
1

 
$
1