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Fair Value Measurements
 12 Months Ended
Dec. 31, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements FAIR VALUE MEASUREMENTS
Fair value measurements are based upon inputs that market participants use in pricing an asset or liability, which are characterized according to a hierarchy that prioritizes those inputs based on the degree to which they are observable. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect our own market assumptions. We categorize our assets and liabilities recorded at fair value based upon the following fair value hierarchy as defined by GAAP:

•Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date.
•Level 2 valuations use over-the-counter broker quotes, quoted prices for similar assets or liabilities that are corroborated by correlations or other mathematical means, and other valuation inputs such as interest rates and yield curves observable at commonly quoted intervals.

•Level 3 valuations use unobservable inputs for the asset or liability, typically reflecting our estimate of assumptions that market participants would use in pricing the asset or liability. The fair value is therefore determined using model-based techniques, including discounted cash flow models.

The fair value input hierarchy level to which an asset or liability measurement in its entirety falls is determined based on the lowest level input that is significant to the measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis consisted of the following at the respective balance sheet dates shown below:
December 31, 2024December 31, 2023
Level
1		Level
2		Level
3 (a)
Reclass (a)
TotalLevel
1		Level
2		Level
3 (a)
Reclass (a)
Total
(in millions)
Assets:
Commodity contracts (b)$1,923 $462 $841 $5 $3,231 $2,886 $628 $630 $14 $4,158 
Interest rate swaps (b)— 96 — — 96 — 64 — — 64 
NDTs – equity securities (c)(d)1,560 — — — 1,560 638 — — — 638 
NDTs – debt securities (c)(e)83 1,976 — — 2,059 — 734 — — 734 
Sub-total$3,566 $2,534 $841 $5 6,946 $3,524 $1,426 $630 $14 5,594 
Assets measured at net asset value (f):
NDTs – equity securities (c)(d)(f)821 579 
Total assets$7,767 $6,173 
Liabilities:
Commodity contracts (b)$2,118 $975 $1,593 $5 $4,691 $3,815 $1,395 $1,674 $14 $6,898 
Interest rate swaps (b)— 27 — — 27 — 48 — — 48 
Total liabilities$2,118 $1,002 $1,593 $5 $4,718 $3,815 $1,443 $1,674 $14 $6,946 
____________
(a)Fair values for each level are determined on a contract basis, but certain contracts are in both an asset and a liability position. This reclassification represents the adjustment needed to reconcile to the gross amounts presented in the consolidated balance sheets.
(b)See Note 11 for additional information.
(c)NDT assets represent securities held for the purpose of funding the future retirement and decommissioning of our nuclear generation facilities. These investments include equity, debt and other fixed-income securities consistent with investment rules established by the NRC and the PUCT. The NDT investments are included in Investments in the consolidated balance sheets. There were no significant concentrations of credit risk from an individual counterparty or groups of counterparties in our NDT portfolio as of December 31, 2024.
(d)The investment objective for NDT equity securities is to invest tax efficiently and to match the performance of the S&P 500 Index for U.S. equity investments and the MSCI EAFE Index for non-U.S. equity investments.
(e)The investment objective for NDT debt securities is to invest in a diversified, high quality, tax efficient portfolio. The debt securities are weighted with government and investment grade corporate bonds. Other investable debt securities include, but are not limited to, municipal bonds, high yield bonds, securitized bonds, non-U.S. developed bonds, emerging market bonds, loans and treasury inflation-protected securities. The debt securities had an average coupon rate of 3.99% and 3.19% as of December 31, 2024 and 2023, respectively, and an average maturity of 7 years and 11 years as of December 31, 2024 and 2023, respectively. NDT debt securities held as of December 31, 2024 mature as follows: $1.045 billion in one to five years, $599 million in five to 10 years and $415 million after 10 years.
(f)Net asset value is a practical expedient used for the classification of assets that do not have readily determinable fair values and therefore are not classified in the fair value hierarchy. This amount is presented to permit reconciliation of this table to the amounts presented in the consolidated balance sheets.

The following tables present the fair value of the Level 3 assets and liabilities by major contract type and the significant unobservable inputs used in the valuations as of December 31, 2024 and 2023:
December 31, 2024
Fair Value
Contract Type (a)AssetsLiabilities
Total, Net
Valuation TechniqueSignificant Unobservable InputRange (b)Average (b)
(in millions)
Electricity purchases and sales$606 $(1,399)$(793)Income ApproachHourly price curve shape (c)$— to$95 $48 
MWh
Illiquid delivery periods for hub power prices (d)
$25 to$140 $83 
MWh
Market Heat Rates (d)
$30 to$150 $90 
MWh
Options6 (139)(133)Option Pricing ModelNatural gas to power correlation (e)10 %to100 %55 %
Power and natural gas volatility (e)5 %to710 %358 %
Financial transmission rights/Congestion revenue rights
190 (25)165 Market Approach (f)Illiquid price differences between settlement points (g)$(35)to$20 $(8)
MWh
Natural gas29 (30)(1)Income ApproachNatural gas basis (h)$— to$10 $5 
MMBtu
Illiquid delivery periods (i)$— to$5 $2 
MMBtu
Other (j)10 — 10 
Total$841 $(1,593)$(752)
December 31, 2023
Fair Value
Contract Type (a)AssetsLiabilities
Total, Net
Valuation TechniqueSignificant Unobservable InputRange (b)Average (b)
(in millions)
Electricity purchases and sales$449 $(1,273)$(824)Income ApproachHourly price curve shape (c)$— to$85 $44 
MWh
Illiquid delivery periods for hub power prices and Heat Rates (d)$30 to$110 $71 
MWh
Options1 (237)(236)Option Pricing ModelNatural gas to power correlation (e)10 %to100 %55 %
Power and natural gas volatility (e)10 %to870 %441 %
Financial transmission rights/Congestion revenue rights
157 (34)123 Market Approach (f)Illiquid price differences between settlement points (g)$(85)to$25 $(30)
MWh
Natural gas9 (112)(103)Income ApproachNatural gas basis (h)$— to$15 $6 
MMBtu
Illiquid delivery periods (i)
$— to$5 $4 
MMBtu
Other (j)14 (18)(4)
Total$630 $(1,674)$(1,044)
____________
(a)Electricity purchase and sales contracts include (i) power and Heat Rate positions in ERCOT, PJM, ISO-NE, NYISO, MISO and CAISO regions, (ii) Options consist of physical electricity options, spread options and natural gas options, (iii) Forward purchase contracts (swaps and options) used to hedge electricity price differences between settlement points are referred to as congestion revenue rights (CRRs) in ERCOT and financial transmission rights (FTRs) in PJM, ISO-NE, NYISO and MISO regions, and (iv) Natural gas contracts include swaps and forward contracts.
(b)The range of the inputs may be influenced by factors such as time of day, delivery period, season and location. The average represents the arithmetic average of the underlying inputs and is not weighted by the related fair value or notional amount.
(c)Primarily based on the historical range of forward average hourly ERCOT North Hub and ERCOT South and West Zone prices.
(d)Primarily based on historical forward ERCOT and PJM power prices and ERCOT Heat Rate variability.
(e)Primarily based on the historical forward correlation and volatility within ERCOT and PJM.
(f)While we use the market approach, there is insufficient market data for the inputs to the valuation to consider the valuation liquid.
(g)Primarily based on the historical price differences between settlement points within ERCOT hubs and load zones.
(h)Primarily based on the historical forward PJM and Northeast natural gas basis prices and fixed prices.
(i)Primarily based on the historical forward natural gas fixed prices.
(j)Other includes contracts for coal and environmental allowances.
The following table presents the changes in fair value of the Level 3 assets and liabilities:
Year Ended December 31,
202420232022
(in millions)
Net liability balance at beginning of period$(1,044)$(1,219)$(360)
Total unrealized valuation gains (losses)(175)(765)(1,382)
Purchases, issuances and settlements (a):
Purchases266 222 185 
Issuances(26)(30)(62)
Settlements137 136 345 
Transfers into Level 3 (b)(15)(48)(30)
Transfers out of Level 3 (b)118 660 85 
Net liabilities assumed in connection with the Energy Harbor Merger(13)— — 
Net change292 175 (859)
Net liability balance at end of period$(752)$(1,044)$(1,219)
Unrealized valuation (losses) relating to instruments held at end of period$(416)$(676)$(977)
____________
(a)Settlements reflect reversals of unrealized mark-to-market valuations previously recognized in net income. Purchases and issuances reflect option premiums paid or received, including CRRs and FTRs.
(b)Includes transfers due to changes in the observability of significant inputs. All Level 3 transfers during the periods presented are in and out of Level 2. For the year ended December 31, 2024, transfers into Level 3 primarily consist of power derivatives where forward pricing inputs have become unobservable and transfers out of Level 3 primarily consist of power and natural gas derivatives where forward pricing inputs have become observable. For the year ended December 31, 2023, transfers into Level 3 primarily consist of power derivatives where forward pricing inputs have become unobservable and transfers out of Level 3 primarily consist of power and coal derivatives where forward pricing inputs have become observable. For the year ended December 31, 2022, transfers into Level 3 primarily consist of power and coal derivatives where forward pricing inputs have become unobservable and transfers out of Level 3 primarily consist of power, natural gas, and coal derivatives where forward pricing inputs have become observable.

Assets and Liabilities Recorded on a Non-Recurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis. These assets and liabilities are not measured at fair value on an ongoing basis, but are subject to fair value adjustments in certain circumstances. These assets and liabilities can include inventories, assets acquired and liabilities assumed in business combinations, goodwill and other long-lived assets that are written down to fair value when they are determined to be impaired or held for sale.

The Energy Harbor Merger was accounted for under the acquisition method which requires all assets acquired and liabilities assumed in the acquisition be recorded at fair value at the acquisition date. See Note 2 for additional information.

Fair Value of Debt
December 31, 2024December 31, 2023
Instrument
Fair Value HierarchyCarrying AmountFair
Value		Carrying AmountFair
Value
(in millions)
Long-term debt under the Vistra Operations Credit FacilitiesLevel 2$2,435 $2,478 $2,456 $2,500 
BCOP Credit Facilities Tax Credit Bridge Loan
Level 3
344 367 — — 
Vistra Zero Term Loan B Facility
Level 2
685 697 — — 
Vistra Operations Senior NotesLevel 212,366 12,428 11,881 11,752 
Energy Harbor Revenue Bonds
Level 2
414 431 — — 
Equipment Financing AgreementsLevel 354 53 65 62 
Forward Repurchase Obligation
Level 3
1,335 1,335 — — 
We determine fair value in accordance with accounting standards. We obtain security pricing from an independent party who uses broker quotes and third-party pricing services to determine fair values. Where relevant, these prices are validated through subscription services, such as Bloomberg.