We utilize derivative instruments, such as options, swaps, futures, and forward contracts to manage our exposure to commodity price and interest rate volatility. Counterparties to these transactions include energy companies, financial institutions, electric utilities, independent power producers, fuel oil and natural gas producers, local distribution companies, and energy marketing companies.

We utilize financial natural gas and financial and physical electricity derivatives to reduce exposure to changes in electricity prices primarily to hedge future revenues from electricity sales from our generation assets. Financial transmission rights and congestion revenue rights are derivative instruments we utilize to hedge electricity price differences between settlement points within regions. Gains and losses associated with these derivatives are reported in the consolidated statements of operations in operating revenues.

We utilize physical natural gas, coal, emissions, and renewable energy certificate derivatives primarily to hedge future purchased power costs of our retail operations or fuel costs of our generation assets. Gains and losses associated with these derivatives are reported in the consolidated statements of operations in fuel, purchased power costs, and delivery fees.

Our retail segment procures power from our generation segments to serve future load obligations. In locations and periods where our load service activities do not naturally offset existing generation portfolio risks, remaining commodity price exposure is managed through portfolio hedging activities.

Interest rate swap agreements are used to reduce exposure to interest rate changes by converting floating-rate interest rates to fixed rates, thereby hedging future interest costs and related cash flows. Gains and losses associated with these derivatives are reported in the consolidated statements of operations in interest expense and related charges.


	Notional Amount	Expiration Date	Rate Range (c)
	(in millions, except percentages)
Swapped to fixed (a)	$3,000	July 2026	4.64	%	-	4.72%
Swapped to variable (a)	$700	July 2026	3.19	%	-	3.24%
Swapped to fixed (b)	$2,300	December 2030	4.95	%	-	5.51%

(a)The $700 million of pay variable rate and receive fixed rate swaps match the terms of a portion of the $3.0 billion pay fixed rate and receive variable rate swaps. These matched swaps will settle over time and effectively offset the hedged position. These offsetting swaps expiring in July 2026 hedge our exposure on $2.3 billion of variable rate debt through July 2026.

In November 2024, Vistra entered into $675 million notional amount of interest rate swaps effective July 31, 2026 and expiring on December 31, 2030. These swaps, along with $1.625 billion notional amount of interest rate swaps with similar terms entered into in 2023, will hedge our exposure on $2.3 billion of floating rate debt from August 2026 through December 2030.

We maintain standardized master netting agreements with certain counterparties that allow for the right to offset accounts payable, accounts receivable and cash collateral paid in order to reduce credit exposure. The following tables reconcile our gross derivative assets and liabilities as reported in the consolidated balance sheets to the net value on a contract basis, after taking into consideration netting arrangements with counterparties and cash collateral recorded.


	December 31, 2024
	Derivative Contract Assets				Derivative Contract Liabilities
	Commodity Contracts		Interest Rate Swaps		Commodity Contracts		Interest Rate Swaps		Total
	(in millions)
Current assets	$	2,551	$	34	$	2	$	—	$	2,587
Noncurrent assets	677		62		1		—		740
Current liabilities	—		—		(3,333)		(18)		(3,351)
Noncurrent liabilities	(2)		—		(1,356)		(9)		(1,367)
Net assets (liabilities)	$	3,226	$	96	$	(4,686)	$	(27)	$	(1,391)
Offsetting instruments (a)	$	(2,532)	$	(28)	$	2,532	$	28	—
Financial collateral (received) pledged (b)	$	(50)	$	—	$	233	$	—	183
Net amounts	$	644	$	68	$	(1,921)	$	1	$	(1,208)


	December 31, 2023
	Derivative Contract Assets				Derivative Contract Liabilities
	Commodity Contracts		Interest Rate Swaps		Commodity Contracts		Interest Rate Swaps		Total
	(in millions)
Current assets	$	3,585	$	53	$	7	$	—	$	3,645
Noncurrent assets	565		11		1		—		577
Current liabilities	(1)		—		(5,233)		(24)		(5,258)
Noncurrent liabilities	(5)		—		(1,659)		(24)		(1,688)
Net assets (liabilities)	$	4,144	$	64	$	(6,884)	$	(48)	$	(2,724)
Offsetting instruments (a)	$	(3,519)	$	(28)	$	3,519	$	28	—
Financial collateral (received) pledged (b)	$	(26)	$	—	$	970	$	—	944
Net amounts	$	599	$	36	$	(2,395)	$	(20)	$	(1,780)


	Year Ended December 31,
Derivative (consolidated statements of operations presentation)	2024		2023		2022
	(in millions)





Reversals of previously recognized unrealized (gain) loss on derivative instruments:
Commodity contracts unrealized (gain) loss in operating revenues (a)	$	1,140	$	1,472	$	1,940
Commodity contracts unrealized (gain) loss in fuel and purchased power expense (a)	73		171		(722)
Interest rate swaps unrealized (gain) loss in interest expense and related charges	(41)		(78)		16
Total reversals of previously recognized unrealized (gain) loss on derivative instruments	$	1,172	$	1,565	$	1,234
Unrealized net gains (losses) from changes in fair value on derivative instruments:
Commodity contracts unrealized gain (loss) in operating revenues	$	(127)	$	(758)	$	(4,103)
Commodity contracts unrealized gain (loss) in fuel and purchased power expense	69		(395)		375
Interest rate swaps unrealized gain (loss) in interest expense and related charges	94		42		234
Total unrealized net gains (losses) from changes in fair value on derivative instruments	$	36	$	(1,111)	$	(3,494)
Net gain (loss) on derivative instruments	$	1,208	$	454	$	(2,260)

(a)Excludes the realized effects of changes in fair value in the month the position settled, amounts related to positions entered into and settled in the same month, and physical retail and wholesale contracts accounted for as derivatives which did not financially settle but realized at the contract's notional and price. The realized effects of these items are included in operating revenues and fuel and purchased power expense.


	December 31, 2024		December 31, 2023
Derivative type	Notional Volume				Unit of Measure
Natural gas	4,568		5,335		Million MMBtu
Electricity	796,982		800,001		GWh
Financial transmission rights / Congestion revenue rights	248,742		250,895		GWh
Coal	27		35		Million U.S. tons
Fuel oil	2		3		Million gallons

Emissions	28		24		Million U.S. tons
Renewable energy certificates	31		29		Million certificates
Interest rate swaps – variable/fixed	$	5,300	$	5,225	Million U.S. dollars
Interest rate swaps - fixed/variable	$	700	$	1,300	Million U.S. dollars

Our derivative contracts may contain certain credit risk-related contingent features that could trigger liquidity requirements in the form of cash collateral, letters of credit or some other form of credit enhancement. Certain of these agreements may require the posting of additional collateral if our credit rating is downgraded by one or more credit rating agencies or include cross-default contractual provisions that could result in the settlement of such contracts if there was a failure under other financing arrangements related to payment terms or other covenants.


	December 31,
	2024		2023
	(in millions)
Fair value of derivative contract liabilities (a)	$	(1,587)	$	(1,890)
Offsetting fair value under netting arrangements (b)	724		692
Cash collateral and letters of credit	471		854
Liquidity exposure	$	(392)	$	(344)

(a)Excludes fair value of contracts that contain contingent features that do not provide specific amounts to be posted if features are triggered, including provisions that generally provide the right to request additional collateral (material adverse change, performance assurance and other clauses).

We have concentrations of credit risk with the counterparties to our derivative contracts. As of December 31, 2024, total credit risk exposure to all counterparties related to derivative contracts totaled $3.772 billion (including associated accounts receivable). The net exposure to those counterparties totaled $776 million as of December 31, 2024 after taking into effect netting arrangements, setoff provisions and collateral, with the largest net exposure from any single counterparty totaling $262 million. As of December 31, 2024, the credit risk exposure to the banking and financial sector represented 75% of the total credit risk exposure and 26% of the net exposure.

This concentration of credit risk increases the risk that a default by any of our counterparties could have a material effect on our financial condition, results of operations and liquidity. We maintain credit risk policies with regard to our counterparties to minimize overall credit risk. These policies authorize specific risk mitigation procedures including, but not limited to, (i) requiring counterparties to have investment grade credit ratings, (ii) use of standardized master agreements with our counterparties that allow for netting of positive and negative exposures, and (iii) that detail credit enhancements (such as parent guarantees, letters of credit, surety bonds, liens on assets and margin deposits) are required in the event of a material downgrade in their credit rating.