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Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) (Tables)
 9 Months Ended
Sep. 30, 2017
Accounting for Derivative Instruments and Hedging Activities  
Net notional volume buy/(sell) of open derivative transactions broken out by commodity
The following table summarizes the net notional volume buy/(sell) of the Registrants’ open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception, as of September 30, 2017 and December 31, 2016. 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.


GenOn

GenOn Americas Generation

GenOn Mid-Atlantic


Total Volume

Total Volume

Total Volume


As of September 30, 2017

As of December 31, 2016

As of September 30, 2017

As of December 31, 2016

As of September 30, 2017

As of December 31, 2016
Commodity
Units
(In millions)
Coal
Short Ton
2


5

1


4

1


4
Natural Gas
MMBtu
72


138

13


30

13


23
Power
MWh
(12
)

(35)

(3
)

(12)

(3
)

(11)
Fair value within the derivative instrument valuation on the balance sheets
The following tables summarize the fair value within the derivative instrument valuation on the balance sheet:
GenOn

Fair Value

Derivative Assets

Derivative Liabilities

September 30, 2017

December 31, 2016

September 30, 2017

December 31, 2016

(In millions)
Derivatives Not Designated as Cash Flow Hedges:







Commodity contracts current
$
39


$
108


$
35


$
105

Commodity contracts long-term
17


16


6


17

Total Derivatives Not Designated as Cash Flow Hedges
$
56


$
124


$
41


$
122
Offsetting of derivatives by counterparty master agreement level and collateral received or paid
The following tables summarize the offsetting of derivatives by counterparty master agreement level and collateral received or paid:
GenOn


Gross Amounts Not Offset in the Statement of Financial Position
Description

Gross Amounts of Recognized Assets / Liabilities

Derivative Instruments

Cash Collateral (Held) / Posted

Net Amount
September 30, 2017

(In millions)
Commodity contracts:








Derivative assets

$
45


$
(15
)

$
—


$
30

Derivative assets - affiliate

11


(11
)

—


—

Derivative liabilities

(28
)

15


2


(11
)
Derivative liabilities - affiliate

(13
)

11


2


—

Total derivative instruments

$
15


$
—


$
4


$
19


 
 
Gross Amounts Not Offset in the Statement of Financial Position
Description
 
Gross Amounts of Recognized Assets / Liabilities
 
Derivative Instruments
 
Cash Collateral (Held) / Posted
 
Net Amount
December 31, 2016
 
(In millions)
Commodity contracts:
 
 
 
 
 
 
 
 
Derivative assets
 
$
70

 
$
(39
)
 
$
—

 
$
31

Derivative assets - affiliate
 
54

 
(54
)
 
—

 
—

Derivative liabilities
 
(56
)
 
39

 
1

 
(16
)
Derivative liabilities - affiliate
 
(66
)
 
54

 
12

 
—

Total derivative instruments
 
$
2

 
$
—

 
$
13

 
$
15
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations
The following tables summarize the pre-tax effects of economic hedges. These amounts are included within operating revenues and cost of operations.
GenOn
 
Three months ended September 30,

Nine months ended September 30,
(In millions)
2017

2016

2017

2016
Unrealized mark-to-market results
 
 
 
 
 
 
 
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges
$
9

 
$
(29
)
 
$
7

 
$
(145
)
Net unrealized (losses)/gains on open positions related to economic hedges
(28
)
 
(68
)
 
9

 
(43
)
Total unrealized (losses)/gains
$
(19
)
 
$
(97
)
 
$
16

 
$
(188
)

Three months ended September 30,

Nine months ended September 30,
(In millions)
2017

2016

2017

2016
Revenue from operations — energy commodities
$
(23
)

$
(142
)

$
7


$
(233
)
Cost of operations
4


45


9


45

Total impact to statements of operations
$
(19
)

$
(97
)

$
16


$
(188
)
GenOn Americas Generation  
Accounting for Derivative Instruments and Hedging Activities  
Fair value within the derivative instrument valuation on the balance sheets
GenOn Americas Generation
 
Fair Value
 
Derivative Assets
 
Derivative Liabilities
 
September 30, 2017
 
December 31, 2016
 
September 30, 2017
 
December 31, 2016
 
(In millions)
Derivatives Not Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Commodity contracts current
$
69

 
$
180

 
$
71

 
$
185

Commodity contracts long-term
25

 
34

 
23

 
32

Total Derivatives Not Designated as Cash Flow Hedges
$
94

 
$
214

 
$
94

 
$
217
Offsetting of derivatives by counterparty master agreement level and collateral received or paid
GenOn Americas Generation
 
 
Gross Amounts Not Offset in the Statement of Financial Position
Description
 
Gross Amounts of Recognized Assets / Liabilities
 
Derivative Instruments
 
Cash Collateral (Held) / Posted
 
Net Amount
September 30, 2017
 
(In millions)
Commodity contracts:
 
 
 
 
 
 
 
 
Derivative assets
 
$
45

 
$
(15
)
 
$
—

 
$
30

Derivative assets - affiliate
 
49

 
(49
)
 
—

 
—

Derivative liabilities
 
(28
)
 
15

 
2

 
(11
)
Derivative liabilities - affiliate
 
(66
)
 
49

 
2

 
(15
)
Total derivative instruments
 
$
—

 
$
—

 
$
4

 
$
4


 
 
Gross Amounts Not Offset in the Statement of Financial Position
Description
 
Gross Amounts of Recognized Assets / Liabilities
 
Derivative Instruments
 
Cash Collateral (Held) / Posted
 
Net Amount
December 31, 2016
 
(In millions)
Commodity contracts:
 
 
 
 
 
 
 
 
Derivative assets
 
$
70

 
$
(39
)
 
$
—

 
$
31

Derivative assets - affiliate
 
144

 
(144
)
 
—

 
—

Derivative liabilities
 
(56
)
 
39

 
1

 
(16
)
Derivative liabilities - affiliate
 
(161
)
 
144

 
12

 
(5
)
Total derivative instruments
 
$
(3
)
 
$
—

 
$
13

 
$
10
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations
GenOn Americas Generation
 
Three months ended September 30,
 
Nine months ended September 30,
(In millions)
2017
 
2016
 
2017
 
2016
Unrealized mark-to-market results
 
 
 
 
 
 
 
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges
$
11

 
$
(46
)
 
$
2

 
$
(165
)
Net unrealized (losses)/gains on open positions related to economic hedges
(13
)
 
6

 
6

 
(23
)
Total unrealized (losses)/gains
$
(2
)
 
$
(40
)
 
$
8

 
$
(188
)
 
Three months ended September 30,
 
Nine months ended September 30,
(In millions)
2017
 
2016
 
2017
 
2016
Revenue from operations — energy commodities
$
(6
)
 
$
(75
)
 
$
(1
)
 
$
(228
)
Cost of operations
4

 
35

 
9

 
40

Total impact to statements of operations
$
(2
)
 
$
(40
)
 
$
8

 
$
(188
)
GenOn Mid-Atlantic  
Accounting for Derivative Instruments and Hedging Activities  
Fair value within the derivative instrument valuation on the balance sheets
GenOn Mid-Atlantic
 
Fair Value
 
Derivative Assets
 
Derivative Liabilities
 
September 30, 2017
 
December 31, 2016
 
September 30, 2017
 
December 31, 2016
 
(In millions)
Derivatives Not Designated as Cash Flow Hedges:
 
 
 
 
 
 
 
Commodity contracts current
$
10

 
$
44

 
$
14

 
$
44

Commodity contracts long-term
2

 
4

 
—

 
2

Total Derivatives Not Designated as Cash Flow Hedges
$
12

 
$
48

 
$
14

 
$
46
Offsetting of derivatives by counterparty master agreement level and collateral received or paid
GenOn Mid-Atlantic
 
 
Gross Amounts Not Offset in the Statement of Financial Position
Description
 
Gross Amounts of Recognized Assets / Liabilities
 
Derivative Instruments
 
Cash Collateral (Held) / Posted
 
Net Amount
September 30, 2017
 
(In millions)
Commodity contracts:
 
 
 
 
 
 
 
 
Derivative assets - affiliate
 
$
12

 
$
(12
)
 
$
—

 
$
—

Derivative liabilities - affiliate
 
(14
)
 
12

 
—

 
(2
)
Total derivative instruments
 
$
(2
)
 
$
—

 
$
—

 
$
(2
)

 
 
Gross Amounts Not Offset in the Statement of Financial Position
Description
 
Gross Amounts of Recognized Assets / Liabilities
 
Derivative Instruments
 
Cash Collateral (Held) / Posted
 
Net Amount
December 31, 2016
 
(In millions)
Commodity contracts:
 
 
 
 
 
 
 
 
Derivative assets - affiliate
 
$
48

 
$
(46
)
 
$
—

 
$
2

Derivative liabilities - affiliate
 
(46
)
 
46

 
—

 
—

Total derivative instruments
 
$
2

 
$
—

 
$
—

 
$
2
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations
GenOn Mid-Atlantic
 
Three months ended September 30,
 
Nine months ended September 30,
(In millions)
2017
 
2016
 
2017
 
2016
Unrealized mark-to-market results
 
 
 
 
 
 
 
Reversal of previously recognized unrealized losses/(gains) on settled positions related to economic hedges
$
7

 
$
(47
)
 
$
(3
)
 
$
(146
)
Net unrealized (losses)/gains on open positions related to economic hedges
(12
)
 
4

 
1

 
(18
)
Total unrealized losses
$
(5
)
 
$
(43
)
 
$
(2
)
 
$
(164
)
 
Three months ended September 30,
 
Nine months ended September 30,
(In millions)
2017
 
2016
 
2017
 
2016
Revenue from operations — energy commodities
$
(10
)
 
$
(83
)
 
$
(2
)
 
$
(203
)
Cost of operations
5

 
40

 
—

 
39

Total impact to statements of operations
$
(5
)
 
$
(43
)
 
$
(2
)
 
$
(164
)