Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 31, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-15891 | |
Entity Registrant Name | NRG Energy, Inc | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-1724239 | |
Entity Address, Address Line One | 910 Louisiana Street | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77002 | |
City Area Code | 713 | |
Local Phone Number | 537-3000 | |
Title of 12(b) Security | Common Stock, par value $0.01 | |
Trading Symbol | NRG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 230,384,205 | |
Entity Central Index Key | 0001013871 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Revenue | ||||
Revenue | $ 8,510 | $ 6,609 | $ 23,688 | $ 19,943 |
Operating Costs and Expenses | ||||
Cost of operations (excluding depreciation and amortization shown below) | 7,802 | 3,692 | 18,619 | 13,496 |
Depreciation and amortization | 145 | 199 | 485 | 569 |
Impairment losses | 43 | 0 | 198 | 306 |
Selling, general and administrative costs | 326 | 318 | 973 | 973 |
Provision for credit losses | 52 | 64 | 103 | 715 |
Acquisition-related transaction and integration costs | 8 | 17 | 26 | 81 |
Total operating costs and expenses | 8,376 | 4,290 | 20,404 | 16,140 |
Gain on sale of assets | 22 | 0 | 51 | 17 |
Operating Income | 156 | 2,319 | 3,335 | 3,820 |
Other Income/(Expense) | ||||
Equity in earnings of unconsolidated affiliates | 11 | 15 | 0 | 23 |
Other income, net | 21 | 8 | 33 | 42 |
Loss on debt extinguishment | 0 | (57) | 0 | (57) |
Interest expense | (105) | (122) | (313) | (374) |
Total other expense | (73) | (156) | (280) | (366) |
Income Before Income Taxes | 83 | 2,163 | 3,055 | 3,454 |
Income tax expense | 16 | 545 | 739 | 840 |
Net Income | $ 67 | $ 1,618 | $ 2,316 | $ 2,614 |
Income per Share | ||||
Weighted average number of common shares outstanding — basic (in shares) | 235,000 | 245,000 | 238,000 | 245,000 |
Weighted average number of common shares outstanding — diluted (in shares) | 235,000 | 245,000 | 238,000 | 245,000 |
Income/(loss) per Weighted Average Common Share — Basic (in usd per share) | $ 0.29 | $ 6.60 | $ 9.73 | $ 10.67 |
Income/(loss) per Weighted Average Common Share — Diluted (in usd per share) | $ 0.29 | $ 6.60 | $ 9.73 | $ 10.67 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 67 | $ 1,618 | $ 2,316 | $ 2,614 |
Other Comprehensive (Loss)/Income | ||||
Foreign currency translation adjustments | (32) | (11) | (45) | (6) |
Defined benefit plans | (2) | 1 | 17 | 20 |
Other comprehensive (loss)/income | (34) | (10) | (28) | 14 |
Comprehensive Income | $ 33 | $ 1,608 | $ 2,288 | $ 2,628 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 333 | $ 250 |
Funds deposited by counterparties | 3,134 | 845 |
Restricted cash | 46 | 15 |
Accounts receivable, net | 4,061 | 3,245 |
Uplift securitization proceeds receivable from ERCOT | 0 | 689 |
Inventory | 772 | 498 |
Derivative instruments | 9,938 | 4,613 |
Cash collateral paid in support of energy risk management activities | 262 | 291 |
Prepayments and other current assets | 417 | 395 |
Total current assets | 18,963 | 10,841 |
Property, plant and equipment, net | 1,598 | 1,688 |
Other Assets | ||
Equity investments in affiliates | 126 | 157 |
Operating lease right-of-use assets, net | 236 | 271 |
Goodwill | 1,650 | 1,795 |
Intangible assets, net | 2,227 | 2,511 |
Nuclear decommissioning trust fund | 789 | 1,008 |
Derivative instruments | 4,914 | 2,527 |
Deferred income taxes | 1,516 | 2,155 |
Other non-current assets | 224 | 229 |
Total other assets | 11,682 | 10,653 |
Total Assets | 32,243 | 23,182 |
Current Liabilities | ||
Current portion of long-term debt and finance leases | 62 | 4 |
Current portion of operating lease liabilities | 82 | 81 |
Accounts payable | 2,871 | 2,274 |
Derivative instruments | 6,841 | 3,387 |
Cash collateral received in support of energy risk management activities | 3,134 | 845 |
Accrued expenses and other current liabilities | 1,376 | 1,324 |
Total current liabilities | 14,366 | 7,915 |
Other Liabilities | ||
Long-term debt and finance leases | 7,974 | 7,966 |
Non-current operating lease liabilities | 197 | 236 |
Nuclear decommissioning reserve | 335 | 321 |
Nuclear decommissioning trust liability | 433 | 666 |
Derivative instruments | 2,802 | 1,412 |
Deferred income taxes | 84 | 73 |
Other non-current liabilities | 922 | 993 |
Total other liabilities | 12,747 | 11,667 |
Total Liabilities | 27,113 | 19,582 |
Commitments and Contingencies | ||
Stockholders' Equity | ||
Common stock; $0.01 par value; 500,000,000 shares authorized; 423,894,539 and 423,547,174 shares issued and 232,125,137 and 243,753,899 shares outstanding at September 30, 2022 and December 31, 2021, respectively | 4 | 4 |
Additional paid-in-capital | 8,450 | 8,531 |
Retained earnings | 2,584 | 464 |
Treasury stock, at cost 191,769,402 and 179,793,275 shares at September 30, 2022 and December 31, 2021, respectively | (5,754) | (5,273) |
Accumulated other comprehensive loss | (154) | (126) |
Total Stockholders' Equity | 5,130 | 3,600 |
Total Liabilities and Stockholders' Equity | $ 32,243 | $ 23,182 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par or value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 423,894,539 | 423,547,174 |
Common stock, shares outstanding (in shares) | 232,125,137 | 243,753,899 |
Treasury stock, shares (in shares) | 191,769,402 | 179,793,275 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash Flows from Operating Activities | ||
Net Income | $ 2,316 | $ 2,614 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Distributions from and equity in earnings of unconsolidated affiliates | 7 | 8 |
Depreciation and amortization | 485 | 569 |
Accretion of asset retirement obligations | 20 | 21 |
Provision for credit losses | 103 | 715 |
Amortization of nuclear fuel | 42 | 39 |
Amortization of financing costs and debt discounts | 17 | 30 |
Loss on debt extinguishment | 0 | 57 |
Amortization of in-the-money contracts and emissions allowances | 122 | 111 |
Amortization of unearned equity compensation | 21 | 16 |
Net gain on sale and disposal of assets | (82) | (29) |
Impairment losses | 198 | 306 |
Changes in derivative instruments | (4,480) | (4,419) |
Changes in deferred income taxes and liability for uncertain tax benefits | 688 | 782 |
Changes in collateral deposits in support of energy risk management activities | 2,321 | 1,970 |
Changes in nuclear decommissioning trust liability | 2 | 38 |
Uplift securitization proceeds received from ERCOT | 689 | 0 |
Changes in other working capital | (711) | (973) |
Cash provided by operating activities | 1,758 | 1,855 |
Cash Flows from Investing Activities | ||
Payments for acquisitions of businesses and assets, net of cash acquired | (60) | (3,534) |
Capital expenditures | (250) | (219) |
Net (purchases)/sales of emission allowances | (4) | 6 |
Investments in nuclear decommissioning trust fund securities | (361) | (460) |
Proceeds from the sale of nuclear decommissioning trust fund securities | 363 | 424 |
Proceeds from sales of assets, net of cash disposed | 107 | 198 |
Cash used by investing activities | (205) | (3,585) |
Cash Flows from Financing Activities | ||
Payments of dividends to common stockholders | (252) | (239) |
Payments for share repurchase activity | (484) | (9) |
Net receipts from settlement of acquired derivatives that include financing elements | 1,596 | 396 |
Repayments of long-term debt and finance leases | (4) | (1,360) |
Proceeds from issuance of long-term debt | 0 | 1,100 |
Payments for debt extinguishment costs | 0 | (48) |
Payments of debt issuance costs | (1) | (18) |
Proceeds from issuance of common stock | 0 | 1 |
Net Cash Provided/(Used) by Financing Activities | 855 | (177) |
Effect of exchange rate changes on cash and cash equivalents | (5) | (2) |
Net Increase/(Decrease) in Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash | 2,403 | (1,909) |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at Beginning of Period | 1,110 | 3,930 |
Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash at End of Period | $ 3,513 | $ 2,021 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In Capital Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings/Accumulated Deficit | Retained Earnings/Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Other Comprehensive Loss | |
Beginning balance at Dec. 31, 2020 | $ 1,680 | $ 4 | $ 8,517 | $ (1,403) | $ (5,232) | $ (206) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | (82) | (82) | ||||||||
Other comprehensive income (loss) | 3 | 3 | ||||||||
Equity-based awards activity, net | [1] | (5) | (5) | |||||||
Issuance of common stock | 1 | 1 | ||||||||
Common stock dividends and dividend equivalents declared | [2] | (80) | (80) | |||||||
Ending balance at Mar. 31, 2021 | 1,517 | 4 | 8,513 | (1,565) | (5,232) | (203) | ||||
Beginning balance at Dec. 31, 2020 | 1,680 | 4 | 8,517 | (1,403) | (5,232) | (206) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 2,614 | |||||||||
Other comprehensive income (loss) | 14 | |||||||||
Ending balance at Sep. 30, 2021 | 4,078 | 4 | 8,525 | 971 | (5,230) | (192) | ||||
Beginning balance at Mar. 31, 2021 | 1,517 | 4 | 8,513 | (1,565) | (5,232) | (203) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,078 | 1,078 | ||||||||
Other comprehensive income (loss) | 21 | 21 | ||||||||
Shares reissuance for ESPP | 2 | 2 | ||||||||
Equity-based awards activity, net | 6 | 6 | ||||||||
Common stock dividends and dividend equivalents declared | (80) | (80) | ||||||||
Ending balance at Jun. 30, 2021 | 2,544 | 4 | 8,519 | (567) | (5,230) | (182) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,618 | 1,618 | ||||||||
Other comprehensive income (loss) | (10) | (10) | ||||||||
Equity-based awards activity, net | 6 | 6 | ||||||||
Common stock dividends and dividend equivalents declared | (80) | (80) | ||||||||
Ending balance at Sep. 30, 2021 | 4,078 | 4 | 8,525 | 971 | (5,230) | (192) | ||||
Beginning balance at Dec. 31, 2021 | 3,600 | $ (43) | 4 | 8,531 | $ (100) | 464 | $ 57 | (5,273) | (126) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 1,736 | 1,736 | ||||||||
Other comprehensive income (loss) | 8 | 8 | ||||||||
Share repurchases | (187) | (187) | ||||||||
Equity-based awards activity, net | [1] | 2 | 2 | |||||||
Common stock dividends and dividend equivalents declared | [2] | (86) | (86) | |||||||
Ending balance at Mar. 31, 2022 | 5,030 | 4 | 8,433 | 2,171 | (5,460) | (118) | ||||
Beginning balance at Dec. 31, 2021 | 3,600 | $ (43) | 4 | 8,531 | $ (100) | 464 | $ 57 | (5,273) | (126) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 2,316 | |||||||||
Other comprehensive income (loss) | (28) | |||||||||
Ending balance at Sep. 30, 2022 | 5,130 | 4 | 8,450 | 2,584 | (5,754) | (154) | ||||
Beginning balance at Mar. 31, 2022 | 5,030 | 4 | 8,433 | 2,171 | (5,460) | (118) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 513 | 513 | ||||||||
Other comprehensive income (loss) | $ (2) | (2) | ||||||||
Shares reissuance for ESPP (in shares) | 1 | |||||||||
Shares reissuance for ESPP | $ 3 | 2 | ||||||||
Share repurchases | (168) | (168) | ||||||||
Equity-based awards activity, net | 8 | 8 | ||||||||
Common stock dividends and dividend equivalents declared | (84) | (84) | ||||||||
Ending balance at Jun. 30, 2022 | 5,300 | 4 | 8,442 | 2,600 | (5,626) | (120) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net (loss) income | 67 | 67 | ||||||||
Other comprehensive income (loss) | (34) | (34) | ||||||||
Share repurchases | (128) | (128) | ||||||||
Equity-based awards activity, net | 8 | 8 | ||||||||
Common stock dividends and dividend equivalents declared | (83) | (83) | ||||||||
Ending balance at Sep. 30, 2022 | $ 5,130 | $ 4 | $ 8,450 | $ 2,584 | $ (5,754) | $ (154) | ||||
[1]Includes $(6) million and $(9) million of equivalent shares purchased in lieu of tax withholding on equity compensation issuances for the quarters ended March 31, 2022 and 2021, respectively[2]Dividends per common share were $0.35 for the quarters ended September 30, June 30 and March 31, 2022 and $0.325 for the quarters ended September 30, June 30 and March 31, 2021 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares shares in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Shares purchased for tax withholding obligation (in shares) | (6) | (9) |
Dividends per common share (in usd per share) | $ 0.35 | $ 0.325 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business and Basis of Presentation | Nature of Business and Basis of Presentation General NRG Energy, Inc., or NRG or the Company, is a consumer services company built on dynamic retail brands. NRG brings the power of energy to customers by producing and selling energy and related products and services, nation-wide in the U.S. and Canada in a manner that delivers value to all of NRG's stakeholders. NRG sells power, natural gas, home and power services, and develops innovative, sustainable solutions, predominately under the brand names NRG, Reliant, Direct Energy, Green Mountain Energy, Stream, and XOOM Energy. The Company has a customer base that includes approximately 5.5 million Home customers as well as commercial, industrial, and wholesale customers, supported by approximately 16 GW of generation. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus. The Company's business is segmented as follows: • Texas, which includes all activity related to customer, plant and market operations in Texas, other than Cottonwood; • East, which includes all activity related to customer, plant and market operations in the East; • West/Services/Other, which includes the following assets and activities: (i) all activity related to customer, plant and market operations in the West and Canada, (ii) the Services businesses (iii) activity related to the Cottonwood facility, (iv) the remaining renewables activity, including the Company’s equity method investment in Ivanpah Master Holdings, LLC, and (v) activity related to the Company’s equity method investment for the Gladstone power plant in Australia; and • Corporate activities. The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with the SEC's regulations for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information and notes required by generally accepted accounting principles for complete financial statements. The following notes should be read in conjunction with the accounting policies and other disclosures as set forth in the notes to the consolidated financial statements in the Company's 2021 Form 10-K. Interim results are not necessarily indicative of results for a full year. In the opinion of management, the accompanying unaudited interim condensed consolidated financial statements contain all material adjustments consisting of normal and recurring accruals necessary to present fairly the Company's consolidated financial position as of September 30, 2022, and the results of operations, comprehensive income, cash flows and statements of stockholders' equity for the three and nine months ended September 30, 2022 and 2021. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. Reclassifications Certain prior period amounts have been reclassified for comparative purposes. The reclassifications did not affect consolidated results from operations, net assets or consolidated cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Other Balance Sheet Information The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in intangible assets, net: (In millions) September 30, 2022 December 31, 2021 Property, plant and equipment accumulated depreciation $ 1,456 $ 1,308 Intangible assets accumulated amortization 1,989 1,636 Credit Losses Retail trade receivables are reported on the balance sheet net of the allowance for credit losses. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. The following table represents the activity in the allowance for credit losses for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Beginning balance $ 627 $ 761 $ 683 $ 67 Acquired balance from Direct Energy — — — 112 Provision for credit losses 52 64 103 715 Write-offs (50) (41) (171) (124) Recoveries collected 9 8 23 22 Ending balance $ 638 $ 792 $ 638 $ 792 The decrease in the provision for credit losses during the nine months ended September 30, 2022, compared to the same period in 2021 was primarily due to the impacts of Winter Storm Uri during the prior year on bilateral finance hedging risk of $403 million, counterparty credit risk of $152 million and ERCOT default shortfall payments of $83 million. Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 333 $ 250 Funds deposited by counterparties 3,134 845 Restricted cash 46 15 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 3,513 $ 1,110 Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties related to NRG's hedging program. The increase in funds deposited by counterparties is driven by the significant increase in forward positions as a result of increases in natural gas and power prices compared to December 31, 2021. Though some amounts are segregated into separate accounts, not all funds are contractually restricted. Based on the Company's intention, these funds are not available for the payment of general corporate obligations; however, they are available for liquidity management. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company's projects that are restricted in their uses. Winter Storm Uri Uplift Securitization Proceeds The Texas Legislature passed House Bill ("HB") 4492 in May of 2021 for ERCOT to mitigate exceptionally high price adders and ancillary service costs incurred by LSEs during Winter Storm Uri. HB 4492 authorized ERCOT to obtain $2.1 billion of financing to distribute to LSEs that were charged and paid to ERCOT those highly priced ancillary service and ORDPA during Winter Storm Uri. In December 2021, ERCOT filed with the PUCT a calculation of each LSE’s share of proceeds based on the settlement methodology. The Company accounted for the proceeds by analogy to the contribution model within ASC 958-605, Not-for-Profit Entities- Revenue Recognition and the grant model within IAS 20, Accounting for Government Grants and Disclosure of Government Assistance , as a reduction to cost of operations within its consolidated statements of operations in the 2021 annual period for which the proceeds were intended to compensate. The Company received proceeds of $689 million from ERCOT in June 2022. Goodwill The following table represents the changes in goodwill during the nine months ended September 30, 2022: (In millions) Texas East West/Services/Other Total Balance as of December 31, 2021 $ 751 $ 853 $ 191 $ 1,795 Impairment — (130) — (130) Asset sales (6) — — (6) Foreign Currency Translation — — (9) (9) Balance as of September 30, 2022 $ 745 $ 723 $ 182 $ 1,650 Recent Accounting Developments - Guidance Adopted in 2022 ASU 2020-06 — In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) , or ASU 2020-06. The guidance in ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. In addition, ASU 2020-06 improves and amends the related earnings per share guidance. The Company adopted this standard on January 1, 2022 using the modified retrospective approach. As a result of the provisions of the amended guidance, the Company recorded a $100 million decrease to additional paid-in capital, a $57 million decrease to debt discount, a $57 million increase to retained earnings and a $14 million decrease to long-term deferred tax liabilities. The adoption of ASU 2020-06 did not have a material impact on the Company's statement of operations, statement of cash flow or earnings per share amounts. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Performance Obligations As of September 30, 2022, estimated future fixed fee performance obligations are $31 million for the remaining three months of fiscal year 2022, and $77 million, $23 million and $2 million for the fiscal years 2023, 2024 and 2025, respectively. These performance obligations are for cleared auction MWs in the PJM, ISO-NE, NYISO and MISO capacity auctions and are subject to penalties for non-performance. Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 2,074 $ 546 $ 429 $ — $ 3,049 Business 931 3,317 561 — 4,809 Total retail revenue (b) 3,005 3,863 990 — 7,858 Energy revenue (b) 48 212 180 10 450 Capacity revenue (b) — 38 — — 38 Mark-to-market for economic hedging activities (c) 4 32 (7) 4 33 Contract amortization — (10) 4 — (6) Other revenue (b) 92 45 2 (2) 137 Total revenue 3,149 4,180 1,169 12 8,510 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 3 14 (1) 16 Less: Realized and unrealized ASC 815 revenue 15 93 13 14 135 Total revenue from contracts with customers $ 3,134 $ 4,084 $ 1,142 $ (1) $ 8,359 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue $ — $ 90 $ — $ — $ 90 Energy revenue — (39) 27 11 (1) Capacity revenue — 7 — — 7 Other revenue 11 3 (7) (1) 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 1,776 $ 470 $ 399 $ 1 $ 2,646 Business 727 2,228 350 — 3,305 Total retail revenue 2,503 2,698 749 1 5,951 Energy revenue (b) 18 201 113 4 336 Capacity revenue (b) — 172 17 — 189 Mark-to-market for economic hedging activities (c) (1) (3) (6) 13 3 Contract amortization — (7) 4 — (3) Other revenue (b) 115 16 6 (4) 133 Total revenue 2,635 3,077 883 14 6,609 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (7) 6 — (1) Less: Realized and unrealized ASC 815 revenue 38 76 (8) 14 120 Total revenue from contracts with customers $ 2,597 $ 3,008 $ 885 $ — $ 6,490 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Energy revenue $ — $ 38 $ 2 $ 1 $ 41 Capacity revenue — 42 — — 42 Other revenue 39 (1) (4) — 34 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 5,024 $ 1,674 $ 1,663 $ (1) $ 8,360 Business 2,504 10,110 1,405 — 14,019 Total retail revenue (b) 7,528 11,784 3,068 (1) 22,379 Energy revenue (b) 101 544 365 24 1,034 Capacity revenue (b) — 242 2 — 244 Mark-to-market for economic hedging activities (c) 1 (204) (63) 18 (248) Contract amortization — (30) 2 — (28) Other revenue (b) 238 78 3 (12) 307 Total revenue 7,868 12,414 3,377 29 23,688 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (10) 33 (1) 22 Less: Realized and unrealized ASC 815 revenue (5) (96) (99) 41 (159) Total revenue from contracts with customers $ 7,873 $ 12,520 $ 3,443 $ (11) $ 23,825 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue $ — $ 90 $ — $ — $ 90 Energy revenue — (13) (13) 24 (2) Capacity revenue — 29 — — 29 Other revenue (6) 2 (23) (1) (28) (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 4,484 $ 1,469 $ 1,439 $ (1) $ 7,391 Business 2,091 6,560 887 — 9,538 Total retail revenue 6,575 8,029 2,326 (1) 16,929 Energy revenue (c) 317 428 238 6 989 Capacity revenue (c) — 568 47 — 615 Mark-to-market for economic hedging activities (d) (5) (53) (60) 19 (99) Contract amortization — (15) (4) — (19) Other revenue (b)(c) 1,475 45 17 (9) 1,528 Total revenue 8,362 9,002 2,564 15 19,943 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (14) 1 — (13) Less: Realized and unrealized ASC 815 revenue 129 193 (73) 20 269 Total revenue from contracts with customers $ 8,233 $ 8,823 $ 2,636 $ (5) $ 19,687 (a) Home includes Services (b) Other Revenue in Texas includes ancillary revenues of $1.2 billion driven by high pricing during Winter Storm Uri (c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Energy revenue $ — $ 122 $ (4) $ 2 $ 120 Capacity revenue — 119 — — 119 Other revenue 134 5 (9) (1) 129 (d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Contract Balances The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of September 30, 2022 and December 31, 2021: (In millions) September 30, 2022 December 31, 2021 Deferred customer acquisition costs $ 117 $ 133 Accounts receivable, net - Contracts with customers 3,768 3,057 Accounts receivable, net - Accounted for under topics other than ASC 606 290 182 Accounts receivable, net - Affiliate 3 6 Total accounts receivable, net $ 4,061 $ 3,245 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 1,464 $ 1,574 Deferred revenues (a) 213 227 (a) Deferred revenues from contracts with customers for the nine months ended September 30, 2022 and the year ended December 31, 2021 were approximately $207 million and $224 million, respectively The revenue recognized from contracts with customers during the nine months ended September 30, 2022 and 2021 relating to the deferred revenue balance at the beginning of each period was $173 million and $23 million, respectively. The revenue recognized from contracts with customers during the three months ended September 30, 2022 and 2021 relating to the deferred revenue balance at the beginning of each period was $159 million and $162 million, respectively. The change in deferred revenue balances during the three and nine months ended September 30, 2022 and 2021 was primarily due to the usage of customer bill credits by certain C&I customers, which were as a result of power pricing during Winter Storm Uri. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Sep. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions 2021 Acquisition of Direct Energy On January 5, 2021, the Company acquired all of the issued and outstanding common shares of Direct Energy, which had been a North American subsidiary of Centrica. Direct Energy is a leading retail provider of electricity, natural gas, and home and business energy related products and services in North America, with operations in all 50 U.S. states and 8 Canadian provinces. The acquisition increased NRG's retail portfolio by over 3 million customers and strengthens its integrated model. It also broadens the Company's presence in the Northeast and into states and locales where it did not previously operate, supporting NRG's objective to diversify its business. The Company paid an aggregate purchase price of $3.625 billion in cash and total purchase price adjustment of $99 million, resulting in an adjusted purchase price of $3.724 billion. For additional information refer to Note 4, Acquisitions, Discontinued Operations and Dispositions , to the Company's 2021 Form 10-K. Dispositions On September 9, 2022, the Company entered into a definitive purchase agreement to sell land and related assets from the Astoria site, within the East region of operations, for initial proceeds of $212 million subject to purchase price adjustments and certain other indemnifications. As part of the transaction, NRG will enter into an agreement to lease the land back for the purpose of operating the Astoria facility through the planned April 30, 2023 retirement date. The operating lease agreement is expected to end six months after the facility's actual retirement date. The transaction is expected to close in the fourth quarter of 2022 and is subject to various closing conditions. On June 1, 2022, the Company closed on the sale of its 49% ownership in the Watson natural gas generating facility for $59 million. The Company recorded a gain on the sale of $46 million. On February 3, 2021, the Company closed on the sale of its 35% ownership in the Agua Caliente solar project to Clearway Energy, Inc. for $202 million. NRG recognized a gain on the sale of $17 million, including cash disposed of $7 million. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments For cash and cash equivalents, funds deposited by counterparties, restricted cash, accounts and other receivables, accounts payable, and cash collateral paid and received in support of energy risk management activities, the carrying amounts approximate fair values because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying value and fair value of the Company's financial instruments not carried at fair market value are as follows: September 30, 2022 December 31, 2021 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes $ 575 $ 611 $ 518 $ 677 Other long-term debt, including current portion 7,523 6,473 7,522 7,650 Total long-term debt, including current portion (a) $ 8,098 $ 7,084 $ 8,040 $ 8,327 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets The fair value of the Company's publicly-traded long-term debt is based on quoted market prices and is classified as Level 2 within the fair value hierarchy. Recurring Fair Value Measurements Debt securities, equity securities, and trust fund investments, which are comprised of various U.S. debt and equity securities, and derivative assets and liabilities, are carried at fair market value. The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: September 30, 2022 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 19 $ — $ 19 $ — Nuclear trust fund investments: Cash and cash equivalents 17 17 — — U.S. government and federal agency obligations 85 83 2 — Federal agency mortgage-backed securities 101 — 101 — Commercial mortgage-backed securities 37 — 37 — Corporate debt securities 104 — 104 — Equity securities 372 372 — — Foreign government fixed income securities 2 — 2 — Other trust fund investments (classified within other non-current assets): U.S. government and federal agency obligations 1 1 — — Derivative assets: Foreign exchange contracts 30 — 30 — Commodity contracts 14,822 2,873 10,936 1,013 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 71 Equity securities (classified within other non-current assets) 6 Total assets $ 15,667 $ 3,346 $ 11,231 $ 1,013 Derivative liabilities: Commodity contracts 9,643 1,228 8,084 331 Total liabilities $ 9,643 $ 1,228 $ 8,084 $ 331 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 32 $ 15 $ 17 $ — Nuclear trust fund investments: Cash and cash equivalents 33 33 — — U.S. government and federal agency obligations 112 111 1 — Federal agency mortgage-backed securities 100 — 100 — Commercial mortgage-backed securities 44 — 44 — Corporate debt securities 122 — 122 — Equity securities 494 494 — — Foreign government fixed income securities 4 — 4 — Other trust fund investments (classified within other non-current assets): U.S. government and federal agency obligations 1 1 — — Derivative assets: Foreign exchange contracts 1 — 1 — Commodity contracts 7,139 981 5,701 457 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 99 Equity securities (classified within other non-current assets) 7 Total assets $ 8,188 $ 1,635 $ 5,990 $ 457 Derivative liabilities: Foreign exchange contracts $ 1 $ — $ 1 $ — Commodity contracts 4,798 626 4,008 164 Total liabilities $ 4,799 $ 626 $ 4,009 $ 164 The following table reconciles, for the three and nine months ended September 30, 2022 and 2021, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Derivatives (a) (In millions) Three months ended September 30, 2022 Three months ended September 30, 2021 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Beginning balance $ 1,403 $ 574 $ 293 $ (16) Contracts added from Direct Energy acquisition — — — (15) Total (losses)/gains realized/unrealized — included in earnings (314) (175) 145 187 Purchases 60 — 89 78 Transfers into Level 3 (b) (466) (108) 155 64 Transfers out of Level 3 (b) (1) 20 — 13 Ending balance $ 682 $ 311 $ 682 $ 311 (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 period end $ (240) $ (237) $ 294 $ 184 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 Realized and unrealized gains and losses included in earnings that are related to the energy derivatives are recorded in revenues and cost of operations. Derivative Fair Value Measurements A portion of NRG's contracts are exchange-traded contracts with readily available quoted market prices. A majority of NRG's contracts are non-exchange-traded contracts valued using prices provided by external sources, primarily price quotations available through brokers or over-the-counter and on-line exchanges. The remainder of the assets and liabilities represent contracts for which external sources or observable market quotes are not available. These contracts are valued based on various valuation techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of the observable market data with similar characteristics. As of September 30, 2022, contracts valued with prices provided by models and other valuation techniques make up 7% of derivative assets and 3% of derivative liabilities. NRG's significant positions classified as Level 3 include physical and financial natural gas and power contracts executed in illiquid markets, as well as FTRs. The significant unobservable inputs used in developing fair value include illiquid natural gas and power location pricing, which is derived as a basis to liquid locations. The basis spread is based on observable market data when available or derived from historic prices and forward market prices from similar observable markets when not available. For FTRs, NRG uses the most recent auction prices to derive the fair value. The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of September 30, 2022 and December 31, 2021: September 30, 2022 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 90 $ 46 Discounted Cash Flow Forward Market Price (per MMBtu) $ 3 $ 35 $ 11 Power Contracts 842 221 Discounted Cash Flow Forward Market Price (per MWh) 20 263 55 FTRs 81 64 Discounted Cash Flow Auction Prices (per MWh) (67) 46 1 $ 1,013 $ 331 December 31, 2021 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 16 $ 1 Discounted Cash Flow Forward Market Price (per MMBtu) $ 3 $ 40 $ 15 Power Contracts 392 121 Discounted Cash Flow Forward Market Price (per MWh) 3 212 35 FTRs 49 42 Discounted Cash Flow Auction Prices (per MWh) (122) 43 0 $ 457 $ 164 The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2022 and December 31, 2021: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Natural Gas/Power Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Natural Gas/Power Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) The fair value of each contract is discounted using a risk-free interest rate. In addition, the Company applies a credit reserve to reflect credit risk, which is calculated based on published default probabilities. As of September 30, 2022, the credit reserve resulted in a $11 million decrease primarily within cost of operations. As of December 31, 2021, the credit reserve resulted in a $11 million decrease primarily within cost of operations. Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2, Summary of Significant Accounting Policies , to the Company's 2021 Form 10-K, the following is a discussion of the concentration of credit risk for the Company's contractual obligations. Credit risk relates to the risk of loss resulting from non-performance or non-payment by counterparties pursuant to the terms of their contractual obligations. NRG is exposed to counterparty credit risk through various activities including wholesale sales, fuel purchases and retail supply arrangements, as well as retail customer credit risk through its retail load activities. Counterparty Credit Risk The Company's counterparty credit risk policies are disclosed in its 2021 Form 10-K. As of September 30, 2022, counterparty credit exposure, excluding credit exposure from RTOs, ISOs, registered commodity exchanges and certain long-term agreements, was $3.2 billion and NRG held collateral (cash and letters of credit) against those positions of $1.8 billion, resulting in a net exposure of $1.4 billion. NRG periodically receives collateral from counterparties in excess of their exposure. Collateral amounts shown include such excess while net exposure shown excludes excess collateral received. Approximately 75% of the Company's exposure before collateral is expected to roll off by the end of 2023. Counterparty credit exposure is valued through observable market quotes and discounted at a risk free interest rate. 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 NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and 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) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 61 % Financial institutions 39 Total as of September 30, 2022 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 68 % Non-investment grade/non-rated 32 Total as of September 30, 2022 100 % (a) Counterparty credit exposure excludes uranium and coal 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 The Company currently has exposure to one wholesale counterparty in excess of 10% of total net exposure discussed above as of September 30, 2022. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. During the first quarter of 2021, during Winter Storm Uri, the Company experienced a nonperformance by a counterparty in one of its bilateral financial hedging transactions, resulting in exposure of $403 million. The Company is pursuing all means available to enforce its obligations under this transaction but, given the size of the exposure and the counterparty filing for Chapter 11 bankruptcy protection, cannot determine with certainty what the amount of its ultimate recovery will be. The full exposure was provided for in the allowance for credit losses since March 31, 2021. RTOs and ISOs The Company participates in the organized markets of CAISO, ERCOT, AESO, IESO, ISO-NE, MISO, NYISO and PJM, known as RTOs or ISOs. Trading in the majority of these markets is approved by FERC, whereas in the case of ERCOT, it is approved by the PUCT, and whereas in the case of AESO and IESO, both exist provincially with AESO primarily subject to Alberta Utilities Commission and the IESO to the Ontario Energy Board. These ISOs may include credit policies that, under certain circumstances, require that losses arising from the default of one member on spot market transactions be shared by the remaining participants. As a result, the counterparty credit risk to these markets is limited to NRG’s share of the overall market and are excluded from the above exposures. Exchange Traded Transactions The Company enters into commodity transactions on registered exchanges, notably ICE, NYMEX and Nodal. These clearinghouses act as the counterparty and transactions are subject to extensive collateral and margining requirements. As a result, these commodity transactions have limited counterparty credit risk. Long-Term Contracts Counterparty credit exposure described above excludes credit risk exposure under certain long-term contracts, primarily solar PPAs. As external sources or observable market quotes are not always available to estimate such exposure, the Company values these contracts based on various techniques including, but not limited to, internal models based on a fundamental analysis of the market and extrapolation of observable market data with similar characteristics. Based on these valuation techniques, as of September 30, 2022, aggregate credit risk exposure managed by NRG to these counterparties was approximately $1.1 billion for the next five years. Retail Customer Credit Risk The Company is exposed to retail credit risk through the Company's retail electricity and gas providers, which serve Home and Business customers. Retail credit risk results in losses when a customer fails to pay for services rendered. The losses may result from both non-payment of customer accounts receivable and the loss of in-the-money forward value. The Company manages retail credit risk through the use of established credit policies that include monitoring of the portfolio and the use of credit mitigation measures such as deposits or prepayment arrangements. As of September 30, 2022, the Company's retail customer credit exposure to Home and Business customers was diversified across many customers and various industries, as well as government entities. Current economic conditions may affect the Company’s customers’ ability to pay bills in a timely manner, which could increase customer delinquencies and may lead to an increase in credit losses. |
Nuclear Decommissioning Trust F
Nuclear Decommissioning Trust Fund | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Nuclear Decommissioning Trust Fund | Nuclear Decommissioning Trust Fund NRG's Nuclear Decommissioning Trust Fund assets, which are for the decommissioning of its 44% interest in STP, are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations , because the Company's nuclear decommissioning activities are subject to approval by the PUCT with regulated rates that are designed to recover all decommissioning costs and that can be charged to and collected from the ratepayers per PUCT mandate. Since the Company is in compliance with PUCT rules and regulations regarding decommissioning trusts and the cost of decommissioning is the responsibility of the Texas ratepayers, not NRG, all realized and unrealized gains or losses (including other-than-temporary impairments) related to the Nuclear Decommissioning Trust Fund are recorded to the Nuclear Decommissioning Trust liability and are not included in net income or accumulated OCI, consistent with regulatory treatment. The following table summarizes the aggregate fair values and unrealized gains and losses for the securities held in the trust funds, as well as information about the contractual maturities of those securities. As of September 30, 2022 As of December 31, 2021 (In millions, except maturities) Fair Value Unrealized Gains Unrealized Losses Weighted-average Maturities (In years) Fair Value Unrealized Gains Unrealized Losses Weighted-average Maturities (In years) Cash and cash equivalents $ 17 $ — $ — — $ 33 $ — $ — — U.S. government and federal agency obligations 85 — 10 11 112 5 1 10 Federal agency mortgage-backed securities 101 — 12 25 100 2 — 25 Commercial mortgage-backed securities 37 — 4 28 44 1 — 27 Corporate debt securities 104 — 15 13 122 7 1 14 Equity securities 443 301 — — 593 456 — — Foreign government fixed income securities 2 — — 18 4 — — 13 Total $ 789 $ 301 $ 41 $ 1,008 $ 471 $ 2 The following table summarizes proceeds from sales of available-for-sale securities held in the trust funds and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method. Nine months ended September 30, (In millions) 2022 2021 Realized gains $ 12 $ 10 Realized losses (19) (6) Proceeds from sale of securities 363 424 |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities Energy-Related Commodities As of September 30, 2022, NRG had energy-related derivative instruments extending through 2036. The Company marks these derivatives to market through the statement of operations. NRG has executed energy-related contracts extending through 2038 that qualified for the NPNS exception and were therefore exempt from fair value accounting treatment. Foreign Exchange Contracts NRG is exposed to changes in foreign currency primarily associated with the purchase of USD denominated natural gas for its Canadian business. In order to manage the Company's foreign exchange risk, NRG entered into foreign exchange contracts. As of September 30, 2022, NRG had foreign exchange contracts extending through 2026. The Company marks these derivatives to market through the statement of operations. Volumetric Underlying Derivative Transactions 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, 2022 and December 31, 2021. 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, 2022 December 31, 2021 Emissions Short Ton 1 1 Renewable Energy Certificates Certificates 11 13 Coal Short Ton 13 19 Natural Gas MMBtu 748 813 Oil Barrels — 1 Power MWh 176 185 Foreign Exchange Dollars $ 502 $ 279 Fair Value of Derivative Instruments 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, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Foreign exchange contracts - current $ 16 $ — $ — $ 1 Foreign exchange contracts - long-term 14 1 — — Commodity contracts - current 9,922 4,613 6,841 3,386 Commodity contracts - long-term 4,900 2,526 2,802 1,412 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 14,852 $ 7,140 $ 9,643 $ 4,799 The Company has elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and does not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Company's derivative assets or liabilities are recorded on a separate line item on the balance sheet. 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, 2022 Foreign exchange contracts: Derivative assets $ 30 $ — $ — $ 30 Commodity contracts: Derivative assets $ 14,822 $ (8,987) $ (3,081) $ 2,754 Derivative liabilities (9,643) 8,987 29 (627) Total commodity contracts $ 5,179 $ — $ (3,052) $ 2,127 Total derivative instruments $ 5,209 $ — $ (3,052) $ 2,157 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, 2021 Foreign exchange contracts: Derivative assets $ 1 $ (1) $ — $ — Derivative liabilities (1) 1 — — Total foreign exchange contracts $ — $ — $ — $ — Commodity contracts: Derivative assets $ 7,139 $ (4,440) $ (831) $ 1,868 Derivative liabilities (4,798) 4,440 17 (341) Total commodity contracts $ 2,341 $ — $ (814) $ 1,527 Total derivative instruments $ 2,341 $ — $ (814) $ 1,527 Impact of Derivative Instruments on the Statements of Operations Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow and fair value hedges are reflected in current period results 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 statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations. (In millions) Three months ended September 30, Nine months ended September 30, Unrealized mark-to-market results 2022 2021 2022 2021 Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges $ (387) $ (97) $ (992) $ (58) Reversal of acquired (gain)/loss positions related to economic hedges (15) (42) (27) 206 Net unrealized gains on open positions related to economic hedges 313 1,924 3,926 3,875 Total unrealized mark-to-market (losses)/gains for economic hedging activities (89) 1,785 2,907 4,023 Reversal of previously recognized unrealized losses/(gains) on settled positions related to trading activity 2 (6) 11 (16) Net unrealized gains/(losses) on open positions related to trading activity 7 14 (18) 18 Total unrealized mark-to-market gains/(losses) for trading activity 9 8 (7) 2 Total unrealized (losses)/gains $ (80) $ 1,793 $ 2,900 $ 4,025 Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Unrealized gains/(losses) included in revenues - commodities $ 42 $ 11 $ (255) $ (97) Unrealized (losses)/gains included in cost of operations - commodities (148) 1,777 3,124 4,121 Unrealized gains included in cost of operations - foreign exchange 26 5 31 1 Total impact to statement of operations - commodities $ (80) $ 1,793 $ 2,900 $ 4,025 The reversals of acquired loss positions were valued based upon the forward prices on the acquisition date. The roll-off amounts were offset by realized gains or losses at the settled prices and are reflected in revenue or cost of operations during the same period. For the nine months ended September 30, 2022 and 2021, the unrealized gains from open economic hedge positions of $3.9 billion and $3.9 billion, respectively, were primarily due to increases in the value of forward positions as a result of increases in natural gas and power prices. Credit Risk Related Contingent Features Certain of the Company's trading agreements contain provisions that entitle the counterparty to demand that the Company post additional collateral if the counterparty determines that there has been deterioration in the Company's credit quality, generally termed “adequate assurance” under the agreements, or require the Company to post additional collateral if there were a downgrade in the Company's credit rating. The collateral potentially required for all contracts with adequate assurance clauses that are in a net liability position as of September 30, 2022 was $1.3 billion. The Company is also party to certain marginable agreements under which it has net liability position, but the counterparty has not called for the collateral due, which was approximately $131 million as of September 30, 2022. In the event of a downgrade in the Company's credit rating and if called for by the counterparty, $30 million of additional collateral would be required for all contracts with credit rating contingent features as of September 30, 2022. See Note 5, Fair Value of Financial Instruments , for discussion regarding concentration of credit risk. |
Impairments
Impairments | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Impairments | Impairments 2022 Impairment Losses Astoria Redevelopment Impairment — During the third quarter of 2022, the Company entered into a purchase and sale agreement for the sale of the land and related assets at the Astoria generating site and the planned withdrawal and cancellation of its proposed Astoria redevelopment project. As a result, the Company impaired $43 million of Astoria project spend in the East segment. PJM Asset Impairments — During the second quarter of 2022, the results of the PJM Base Residual Auction for the 2023/2024 delivery year were released leading the Company to revise its long-term view of certain facilities and announce the planned retirement of the Joliet generating facility in May 2023. The Company considered the near-term retirement date of Joliet and the decline in PJM capacity prices to be a trigger for impairment and performed impairment tests on the PJM generating assets and the goodwill associated with Midwest Generation. The Company measured the impairment losses on the PJM generating assets and Midwest Generation goodwill as the difference between the carrying amount and the fair value of the PJM generating assets and Midwest Generation reporting unit, respectively. Fair values were determined using an income approach in which the Company applied a discounted cash flow methodology to the long-term budgets for the plants and reporting unit. Significant inputs impacting the income approach include the Company's long-term view of capacity and fuel prices, projected generation, the physical and economic characteristics of each plant and the reporting unit as a whole, and the discount rate applied to the after-tax cash flow projections. Impairment losses of $20 million and $130 million were recorded in the East segment on the PJM generating assets and Midwest Generation goodwill, respectively. 2021 Impairment Losses PJM Asset Impairments — During the second quarter of 2021, the results of the PJM Base Residual Auction for the 2022/2023 delivery year were released leading the Company to announce the near-term retirement of a significant portion of its PJM coal generating assets in June 2022. The Company considered the decline in PJM capacity prices and the near-term retirement dates of certain assets to be a trigger for impairment and performed impairment tests on the PJM generating assets and the goodwill associated with Midwest Generation. The Company measured the impairment losses on the PJM generating assets and Midwest Generation goodwill as the difference between the carrying amount and the fair value of the PJM generating assets and Midwest Generation reporting unit, respectively. Fair values were determined using an income approach in which the Company applied a discounted cash flow methodology to the long-term budgets for the plants and reporting unit. Significant inputs impacting the income approach include the Company's long-term view of capacity and fuel prices, projected generation, the physical and economic characteristics of each plant, and the discount rate applied to the after-tax cash flow projections. Impairment losses of $271 million and $35 million were recorded in the East segment on the PJM generating assets and Midwest Generation goodwill, respectively. |
Long-term Debt and Finance Leas
Long-term Debt and Finance Leases | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Finance Leases | Long-term Debt and Finance Leases Long-term debt and finance leases consisted of the following: (In millions, except rates) September 30, 2022 December 31, 2021 Interest rate % Recourse debt: Senior Notes, due 2027 $ 375 $ 375 6.625 Senior Notes, due 2028 821 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 1,100 1,100 3.875 Convertible Senior Notes, due 2048 (a) 575 575 2.750 Senior Secured First Lien Notes, due 2024 600 600 3.750 Senior Secured First Lien Notes, due 2025 500 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Tax-exempt bonds 466 466 1.250 - 4.750 Subtotal recourse debt 8,100 8,100 Finance leases 12 13 various Subtotal long-term debt and finance leases (including current maturities) 8,112 8,113 Less current maturities (62) (4) Less debt issuance costs (74) (83) Discounts (2) (60) Total long-term debt and finance leases $ 7,974 $ 7,966 (a) As of the ex-dividend date of October 31, 2022, the Convertible Senior Notes were convertible at a price of $43.46, which is equivalent to a conversion rate of approximately 23.0116 shares of common stock per $1,000 principal amount. 2048 Convertible Senior Notes Accounting for Convertible Senior Notes — Upon issuance in 2018, the Convertible Senior Notes were separated into liability and equity components for accounting purposes. The carrying amounts of the liability component was initially calculated by measuring the fair value of similar liabilities that do not have an associated convertible feature. The carrying amount of the equity component representing the conversion option was determined by deducting the fair value of the liability component from the par value of the Convertible Senior Notes. This difference represented the debt discount that was amortized to interest expense over seven years, which was determined to be the expected life of the Convertible Senior Notes, using the effective interest rate method. The equity component was recorded in additional paid-in capital and was not remeasured as it continued to meet the conditions for equity classification. Following the adoption of ASU 2020-06 as of January 1, 2022, the Company no longer records the conversion feature of its convertible senior notes in equity. Instead, the Company combined the previously separated equity component with the liability component, which together is now classified as debt, thereby eliminating the subsequent amortization of the debt discount as interest expense. As a result of the provisions of the amended guidance, the Company recorded a $100 million decrease to additional paid-in capital, a $57 million decrease to debt discount, a $57 million increase to retained earnings and a $14 million decrease to long-term deferred tax liabilities. For more information on the adoption of ASU 2020-06, refer to Note 2, Summary of Significant Accounting Policies . Modification to Convertible Senior Notes — On February 22, 2022, the Company irrevocably elected to eliminate the right to settle conversions only in shares of the Company's common stock, such that any conversion after such date, the Company will pay cash per $1,000 principal amount and will settle in cash or a combination of cash and the Company's common stock for the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount. Convertible Senior Notes Features — As of September 30, 2022, the Convertible Senior Notes were convertible, under certain circumstances, into cash or a combination of cash and the Company’s common stock at a price of $43.77 per common share, which is equivalent to a conversion rate of approximately 22.8467 shares of common stock per $1,000 principal amount of Convertible Senior Notes. The Convertible Senior Notes mature on June 1, 2048, unless earlier repurchased, redeemed or converted in accordance with their terms. The Convertible Senior notes are convertible at the option of the holders under certain circumstances. Prior to the close of business on the business day immediately preceding December 1, 2024, the Convertible Senior Notes will be convertible only upon the occurrence of certain events and during certain periods, and thereafter during specified periods as follows: • from December 1, 2024 until the close of business on the second scheduled trading day immediately before June 1, 2025; and • from December 1, 2047 until the close of business on the second scheduled trading day immediately before the maturity date The following table details the interest expense recorded in connection with the Convertible Senior Notes, due 2048: Three months ended September 30, Nine months ended September 30, ($ In millions) 2022 2021 2022 2021 Contractual interest expense $ 4 $ 4 $ 12 $ 12 Amortization of discount and deferred finance costs — 4 1 12 Total $ 4 $ 8 $ 13 $ 24 Effective Interest Rate 0.76 % 1.34 % 2.28 % 3.99 % Receivables Securitization Facilities On February 9, 2022, the Company entered into amendments to its existing Repurchase Facility to, among other things, (i) increase the size of the facility from $75 million to $150 million and (ii) replace LIBOR with term SOFR as the benchmark for the pricing rate. The Repurchase Facility has no commitment fee and borrowings will be drawn at SOFR + 1.30%. On July 26, 2022, the Company renewed its existing Repurchase Facility to, among other things, extend the maturity date to July 26, 2023. As of September 30, 2022, there were no outstanding borrowings. On July 26, 2022, NRG Receivables LLC, a wholly-owned indirect subsidiary of the Company, entered into an amendment to its Receivables Facility dated September 22, 2020 with a group of conduit lenders and banks and Royal Bank of Canada, as Administrative Agent to, among other things, (i) extend the scheduled termination date by one year, (ii) increase the aggregate commitments from $800 million to $1.0 billion, (iii) increase the letter of credit sublimit to equal the aggregate commitments, (iv) replace LIBOR with Term SOFR as the benchmark for borrowings and (v) add new originators. The weighted average interest rate related to usage under the Receivables Facility as of September 30, 2022 was 0.836%. As of September 30, 2022, there were no outstanding borrowings and there were $884 million in letters of credit issued under the Receivables Facility. Bilateral Letter of Credit Facilities On April 29, 2022, May 27, 2022 and October 13, 2022, the Company increased the size of the facilities by $100 million, $50 million and $50 million respectively, to provide additional liquidity, allowing for the issuance of up to $675 million of letters of credit. As of September 30, 2022, $592 million was issued under these facilities. |
Investments Accounted for Using
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities Disclosure [Abstract] | |
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs | Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs Entities that are not Consolidated NRG accounts for the Company's significant investments using the equity method of accounting. NRG's carrying value of equity investments can be impacted by a number of elements including impairments, unrealized gains and losses on derivatives and movements in foreign currency exchange rates. On June 1, 2022, the Company sold its 49% ownership in the Watson natural gas generating facility for $59 million as further described in Note 4, Acquisitions and Dispositions . Variable Interest Entities that are Consolidated The Company has a controlling financial interest that has been identified as a VIE under ASC 810 in NRG Receivables LLC, which has entered into financing transactions related to the Receivables Facility as further described in Note 13, Long-term Debt and Finance Leases, to the Company’s 2021 Form 10-K. The summarized financial information for the Company's consolidated VIE consisted of the following: (In millions) September 30, 2022 December 31, 2021 Accounts receivable and Other current assets $ 1,269 $ 939 Current liabilities 153 78 Net assets $ 1,116 $ 861 |
Changes in Capital Structure
Changes in Capital Structure | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Changes in Capital Structure | Changes in Capital Structure As of September 30, 2022 and December 31, 2021, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2021 423,547,174 (179,793,275) 243,753,899 Shares issued under LTIPs 347,365 — 347,365 Shares issued under ESPP — 68,941 68,941 Shares repurchased — (12,045,068) (12,045,068) Balance as of September 30, 2022 423,894,539 (191,769,402) 232,125,137 Shares issued under LTIPs 2,462 — 2,462 Shares issued under ESPP — 73,884 73,884 Shares repurchased — (1,817,278) (1,817,278) Balance as of October 31, 2022 423,897,001 (193,512,796) 230,384,205 Share Repurchases On December 6, 2021 the Company announced that the Board of Directors has authorized $1 billion for share repurchases, as part of NRG’s capital allocation program. During 2021, $44 million of share repurchases were completed under this authorization. During the nine months ended September 30, 2022, the Company completed additional $483 million of share repurchases at an average price of $40.04. Through October 31, 2022, an additional $76 million of share repurchases were executed at an average price of $41.71 per share. In October 2022, the Board of Directors approved an additional $600 million in share repurchases. The following repurchases have been made during the nine months ended September 30, 2022, and through October 31, 2022: Total number of shares and share equivalents purchased Average price paid per share and share equivalent Amounts paid for shares and share equivalents purchased (in millions) 2022 repurchases Repurchases (a) 12,045,068 $ 483 Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances (b) 150,448 6 Total Share Repurchases during the nine months ended September 30, 2022 12,195,516 $40.07 489 Repurchases made during October (a) 1,817,278 $ 76 Equivalent shares purchased in October in lieu of tax withholdings on equity compensation issuances (b) 793 — Total Share Repurchases January 1, 2022 through October 31, 2022 14,013,587 $40.28 $ 565 (a) Includes $10 million and $6 million accrued as of September 30, 2022 and October 31, 2022, respectively (b) NRG elected to pay cash for tax withholding on equity awards instead of issuing actual shares to management. The average price per equivalent shares withheld was $42.75 and $41.04 for the nine months ended September 30, 2022 and for October 2022, respectively Employee Stock Purchase Plan The Company offers participation in the ESPP which allows eligible employees to elect to withhold between 1% and 10% of their eligible compensation to purchase shares of NRG common stock at the lesser of 95% of its market value on the offering date or 95% of the fair market value on the exercise date. An offering date occurs each April 1 and October 1. An exercise date occurs each September 30 and March 31. NRG Common Stock Dividends During the first quarter of 2022, NRG increased the annual dividend to $1.40 from $1.30 per share and expects to target an annual dividend growth rate of 7%-9% per share in subsequent years. A quarterly dividend of $0.35 per share was paid on the Company's common stock during the three months ended September 30, 2022. On October 21, 2022, NRG declared a quarterly dividend on the Company's common stock of $0.35 per share, payable on November 15, 2022 to stockholders of record as of November 1, 2022. Beginning in the first quarter of 2023, NRG will increase the annual dividend by 8% to $1.51 per share. |
Income Per Share
Income Per Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Income Per Share | Income Per Share Basic income per common share is computed by dividing net income by the weighted average number of common shares outstanding. Shares issued and treasury shares repurchased during the year are weighted for the portion of the year that they were outstanding. Diluted income per share is computed in a manner consistent with that of basic income per share while giving effect to all potentially dilutive common shares that were outstanding during the period. The outstanding relative performance stock units, non-vested restricted stock units, market stock units, and non-qualified stock options are not considered outstanding for purposes of computing basic income per share. However, these instruments are included in the denominator for purposes of computing diluted income per share under the treasury stock method for periods when we have net income. The Convertible Senior Notes are convertible, under certain circumstances, into cash or combination of cash and Company’s common stock. Prior to adoption of ASU 2020-06, there was no dilutive effect for the Convertible Senior Notes due to the Company’s expectation to settle the liability in cash. Upon adoption of ASU 2020-06, on January 1, 2022, the Company is including the potential share settlements, if any, in the denominator for purposes of computing diluted income per share under the if converted method for periods when we have net income. The potential shares settlements are calculated as the excess of the Company's conversion obligation over the aggregate principal amount (which will be settled in cash), divided by the average share price for the period. For the periods ended September 30, 2022, there was no dilutive effect for the Convertible Senior Notes since there were no potential share settlements for these periods. NRG's basic and diluted income per share is shown in the following table: Three months ended September 30, Nine months ended September 30, (In millions, except per share data) 2022 2021 2022 2021 Basic and diluted income per share: Net income $ 67 $ 1,618 $ 2,316 $ 2,614 Weighted average number of common shares outstanding - basic and diluted 235 245 238 245 Income per weighted average common share — basic and diluted $ 0.29 $ 6.60 $ 9.73 $ 10.67 |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company’s segment structure reflects how management currently makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and allocation of capital, as well as net income/(loss). Three months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 3,149 $ 4,180 $ 1,169 $ — $ 12 $ 8,510 Depreciation and amortization 77 39 22 7 — 145 Impairment losses — 43 — — — 43 Gain on sale of assets 22 — — — — 22 Equity in (losses)/earnings of unconsolidated affiliates (1) — 12 — — 11 (Loss)/Income before income taxes (475) 555 106 (103) — 83 Net (loss)/income $ (475) $ 555 $ 88 $ (101) $ — $ 67 Three months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 2,635 $ 3,077 $ 883 $ — $ 14 $ 6,609 Depreciation and amortization 84 87 21 7 — 199 Equity in (losses)/earnings of unconsolidated affiliates (2) — 17 — — 15 Income/(loss) before income taxes 251 1,980 140 (208) — 2,163 Net income/(loss) $ 251 $ 1,980 $ 126 $ (739) $ — $ 1,618 Nine months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 7,868 $ 12,414 $ 3,377 $ — $ 29 $ 23,688 Depreciation and amortization 230 167 65 23 — 485 Impairment losses — 198 — — — 198 Gain/(loss) on sale of assets 10 — 43 (2) — 51 Equity in (losses)/earnings of unconsolidated affiliates (2) — 2 — — — Income/(loss) before income taxes 1,064 2,085 259 (353) — 3,055 Net income/(loss) $ 1,064 $ 2,086 $ 231 $ (1,065) $ — $ 2,316 Nine months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 8,362 $ 9,002 $ 2,564 $ — $ 15 $ 19,943 Depreciation and amortization 245 237 66 21 — 569 Impairment losses — 306 — — — 306 Gain on sale of assets — — 17 — — 17 Equity in (losses)/earnings of unconsolidated affiliates (3) — 26 — — 23 Income/(loss) before income taxes 600 3,119 271 (536) — 3,454 Net income/(loss) $ 600 $ 3,119 $ 239 $ (1,344) $ — $ 2,614 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Income Tax Rate The income tax provision consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions, except rates) 2022 2021 2022 2021 Income before income taxes $ 83 $ 2,163 $ 3,055 $ 3,454 Income tax expense 16 545 739 840 Effective income tax rate 19.3 % 25.2 % 24.2 % 24.3 % For the three months ended September 30, 2022, the effective tax rate was lower than the statutory rate of 21% primarily due to the benefit resulting from carbon capture tax credits and the reduction in statutory state tax rates. For the nine months ended September 30, 2022, the effective tax rate was higher than the statutory rate of 21% primarily due to state tax expense partially offset by tax benefit resulting from the release of valuation allowance on state net operating losses and carbon capture tax credits. For the three months ended September 30, 2021, the effective tax rate was higher than the statutory rate of 21% primarily due to state tax expense. For the nine months ended September 30, 2021 the effective tax rate was higher than the statutory rate of 21% primarily due to state tax expense partially offset by one-time tax benefits, as a result of the acquisition of Direct Energy, on the revaluation of state deferred tax assets, NOLs and valuation allowance. The Inflation Reduction Act ("IRA") enacted on August 16, 2022, introduced new provisions including a 15% corporate book minimum tax and a 1% excise tax on net share repurchases with both taxes effective beginning in fiscal year 2023 for NRG. Additionally, the IRA establishes a tax credit associated with existing nuclear facilities which begins in 2024 and terminates at the end of 2031. The tax credit will fully apply when gross revenues are at or below $25 per MWh and phases out completely at $43.75 per MWh. The U.S. Treasury is now taking comments on what should be included in the definition of gross revenues. Uncertain Tax Benefits As of September 30, 2022, NRG had a non-current tax liability of $23 million for uncertain tax benefits from positions taken on various federal and state income tax returns inclusive of accrued interest. For the nine months ended September 30, 2022, NRG accrued an immaterial amount of interest relating to the uncertain tax benefits. As of September 30, 2022, NRG had cumulative interest and penalties related to these uncertain tax benefits of $1 million. The Company recognizes interest and penalties related to uncertain tax benefits in income tax expense. NRG is subject to examination by taxing authorities for income tax returns filed in the U.S. federal jurisdiction and various state and foreign jurisdictions including operations located in Australia and Canada. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2019. With few exceptions, state and local income tax examinations are no longer open for years prior to 2013. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions NRG provides services to some of its related parties, who are accounted for as equity method investments, under operations and maintenance agreements. Fees for the services under these agreements include recovery of NRG's costs of operating the plants. Certain agreements also include fees for administrative service, a base monthly fee, profit margin and/or annual incentive bonus. The following table summarizes NRG's material related party transactions with third party affiliates: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Revenues from Related Parties Included in Revenue Gladstone $ 1 $ 1 $ 2 $ 2 Ivanpah (a) 10 9 32 30 Midway-Sunset 2 1 5 4 Total $ 13 $ 11 $ 39 $ 36 (a) Also includes fees under project management agreements with each project company |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments First Lien Structure NRG has granted first liens to certain counterparties on a substantial portion of property and assets owned by NRG and the guarantors of its senior debt. NRG uses the first lien structure to reduce the amount of cash collateral and letters of credit that it would otherwise be required to post from time to time to support its obligations under out-of-the-money hedges. To the extent that the underlying hedge positions for a counterparty are out-of-the-money to NRG, the counterparty would have a claim under the first lien program. As of September 30, 2022, hedges under the first lien program were out-of-the-money for NRG on a counterparty aggregate basis. Contingencies The Company's material legal proceedings are described below. The Company believes that it has valid defenses to these legal proceedings and intends to defend them vigorously. NRG records accruals for estimated losses from contingencies when information available indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. As applicable, the Company has established an adequate accrual for the applicable legal matters, including regulatory and environmental matters as further discussed in Note 17, Regulatory Matters , and Note 18, Environmental Matters . In addition, legal costs are expensed as incurred. Management has assessed each of the following matters based on current information and made a judgment concerning its potential outcome, considering the nature of the claim, the amount and nature of damages sought, and the probability of success. Unless specified below, the Company is unable to predict the outcome of these legal proceedings or reasonably estimate the scope or amount of any associated costs and potential liabilities. As additional information becomes available, management adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties and unfavorable rulings or developments, it is possible that the ultimate resolution of the Company's liabilities and contingencies could be at amounts that are different from its currently recorded accruals and that such differences could be material. In addition to the legal proceedings noted below, NRG and its subsidiaries are party to other litigation or legal proceedings arising in the ordinary course of business. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. Environmental Lawsuits Sierra club et al. v. Midwest Generation LLC — In 2012, several environmental groups filed a complaint against Midwest Generation with the Illinois Pollution Control Board ("IPCB") alleging violations of environmental law resulting in groundwater contamination. In June 2019, the IPCB found in an interim order that Midwest Generation violated the law because it had improperly handled coal ash at four facilities in Illinois and caused or allowed coal ash constituents to impact groundwater. On September 9, 2019, Midwest Generation filed a Motion to Reconsider numerous issues, which the court granted in part and denied in part on February 6, 2020. The IPCB will hold hearings to determine the appropriate relief. Midwest Generation has been working with the Illinois EPA to address the groundwater issues since 2010. Consumer Lawsuits Similar to other energy service companies (“ESCOs”) operating in the industry, from time-to-time, the Company and/or its subsidiaries may be subject to consumer lawsuits in various jurisdictions where they sell natural gas and electricity. Variable Price Cases — In the cases set forth below, referred to as the Variable Price Cases, such actions involve consumers alleging that one of the Company’s ESCOs promised that consumers would pay the same or less than they would have paid if they stayed with their default utility or previous energy supplier. The underlying claims of each case are similar and the Company continues to deny the allegations and is vigorously defending these matters. These matters were known and accrued for at the time of each acquisition. XOOM Energy XOOM Energy is a defendant in a putative class action lawsuit pending in New York. This case is in the discovery phase. Direct Energy There are four putative class actions pending against Direct Energy: (1) Linda Stanley v. Direct Energy (S.D.N.Y Apr. 2019) - The parties mediated in June 2021 and agreed on a settlement. In April 2022, the Court granted final approval of the settlement, which was primarily paid during the second quarter of 2022; (2) Martin Forte v. Direct Energy (N.D.N.Y. Mar. 2017) - In December 2021, the Court granted Direct Energy's Motion for summary judgment effectively ending the matter at the district court level. In January 2022, Forte appealed. The briefing is complete. Oral arguments are anticipated for late 2022 or early 2023; (3) Richard Schafer v. Direct Energy (W.D.N.Y. Dec. 2019; on appeal 2nd Cir. N.Y.) - The 2 nd Circuit sent the matter back to the trial court in December 2021. After discovery, Direct Energy filed summary judgment; and (4) Andrew Gant v. Direct Energy and NRG (D.N.J. Aug. 2022) - Direct Energy and NRG filed a Motion to Dismiss on October 18, 2022. Telephone Consumer Protection Act ("TCPA") Cases — In the cases set forth below, referred to as the TCPA Cases, such actions involve consumers alleging violations of the Telephone Consumer Protection Act of 1991, as amended, by receiving calls, texts or voicemails without consent in violation of the federal Telemarketing Sales Rule, and/or state counterpart legislation. The underlying claims of each case are similar. The Company denies the allegations asserted by plaintiffs and intends to vigorously defend these matters. These matters were known and accrued for at the time of the acquisition. There are two putative class actions pending against Direct Energy: (1) Holly Newman v. Direct Energy, LP (D. Md Sept 2021) - Direct Energy filed its Motion to Dismiss asserting the ruling in the Brittany Burk v. Direct Energy (S.D. Tex. Feb 2019) preempts the Plaintiff's ability to file suit based on the same facts. The Court denied Direct Energy's motion stating the Court does not have the benefit of all of the facts that were in front of the Burk court to issue a similar ruling. On October 19, 2022, Direct Energy filed a Motion to Transfer Venue asking the Court to transfer the case to the Southern District where the Buck case was filed. Direct Energy will await the court's ruling before moving forward with written discovery; and (2) Matthew Dickson v. Direct Energy (N.D. Ohio Jan. 2018) - The case was stayed pending the outcome of an appeal to the Sixth Circuit based on the unconstitutionality of the TCPA during the period from 2015-2020. The Sixth Circuit found the TCPA was in effect during that period and remanded the case back to the trial court. Direct Energy refiled its motions along with supplements. On March 25, 2022, the Court granted summary judgment in favor of Direct Energy and dismissed the case. Dickson appealed, and the parties are in the briefing process. Winter Storm Uri Lawsuits The Company has been named in certain property damage and wrongful death claims that have been filed in connection with Winter Storm Uri in its capacity as a generator and a retail electric provider. As a power generator, the Company is named in 161 cases with claims ranging from: wrongful death; personal injury only; property damage and personal injury; property damage only; and subrogation. As a retail electric provider, the Company is named in 27 lawsuits with similar claims: wrongful death; property damage only; personal injury only; and both personal injury and property damage. The power generators and retail electric providers filed five motions to dismiss that represent the breadth of the claims filed against them. Briefing is complete and oral arguments occurred on October 11-12, 2022. All of the lawsuits related to Winter Storm Uri are consolidated into a single multi-district litigation matter in Harris County District Court. The Company intends to vigorously defend these matters. Indemnifications and Other Contractual Arrangements Washington-St. Tammany and Claiborne Electric Cooperative v. LaGen — On June 28, 2017, plaintiffs Washington-St. Tammany Electric Cooperative, Inc. and Claiborne Electric Cooperative, Inc. filed a lawsuit against LaGen in the United States District Court for the Middle District of Louisiana. The plaintiffs claimed breach of contract against LaGen for allegedly improperly charging the plaintiffs for costs related to the installation and maintenance of certain pollution control technology. Plaintiffs sought damages for the alleged improper charges and a declaration as to which charges were proper under the contract. In February 2020, the court dismissed this lawsuit without prejudice for lack of subject matter jurisdiction. On March 17, 2020, plaintiffs filed a lawsuit in the Nineteenth Judicial District Court for the Parish of East Baton Rouge in Louisiana alleging substantially the same matters. On February 4, 2019, NRG sold the South Central Portfolio, including the entities subject to this litigation. However, NRG has agreed to indemnify the purchaser for certain losses suffered in connection therewith. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2022 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters Environmental regulatory matters are discussed within Note 18, Environmental Matters. NRG operates in a highly regulated industry and is subject to regulation by various federal, state and provincial agencies. As such, NRG is affected by regulatory developments at the federal, state and provincial levels and in the regions in which NRG operates. In addition, NRG is subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which NRG participates. These power markets are subject to ongoing legislative and regulatory changes that may impact NRG's wholesale and retail operations. In addition to the regulatory proceeding noted below, NRG and its subsidiaries are parties to other regulatory proceedings arising in the ordinary course of business or have other regulatory exposure. In management's opinion, the disposition of these ordinary course matters will not materially adversely affect NRG's consolidated financial position, results of operations, or cash flows. California Station Power — As the result of unfavorable final and non-appealable litigation, the Company accrued a liability associated with consumption of station power at the Company's Encina power plant facility in California after August 30, 2010. The Company has established an appropriate accrual pending potential regulatory action by San Diego Gas & Electric regarding the Company's Encina facility. |
Environmental Matters
Environmental Matters | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Environmental Matters | Environmental Matters NRG is subject to a wide range of environmental laws in the development, construction, ownership and operation of power plants. These laws generally require that governmental permits and approvals be obtained before construction and maintained during operation of power plants. The electric generation industry has been facing increasingly stringent requirements regarding air quality, GHG emissions, combustion byproducts, water discharge and use, and threatened and endangered species. In general, future laws are expected to require the addition of emissions controls or other environmental controls or to impose additional restrictions on the operations of the Company's facilities, which could have a material effect on the Company's consolidated financial position, results of operations, or cash flows. The Company has elected to use a $1 million disclosure threshold, as permitted, for environmental proceedings to which the government is a party. Air CPP/ACE Rules — On July 8, 2019, the EPA promulgated the ACE rule, which rescinded the CPP, which had sought to broadly regulate CO 2 emissions from the power sector. The ACE rule required states that have coal-fired EGUs to develop plans to seek heat rate improvements from coal-fired EGUs. On January 19, 2021, the D.C. Circuit vacated the ACE rule (but on February 22, 2021, at the EPA's request, stayed the issuance of the portion of the mandate that would have vacated the repeal of the CPP). On June 30, 2022, the U.S. Supreme Court held that the "generation shifting" approach in the CPP exceeded the powers granted to the EPA by Congress. The Court did not address the related issues of whether the EPA may adopt only measures applied at each source. The Company anticipates that there will be additional proceedings at the D.C. Circuit and additional rulemaking by the EPA over the next several years. Cross-State Air Pollution Rule ("CSAPR") — In April 2022, the EPA proposed revising the CSAPR to address the good-neighbor provisions of the 2015 ozone NAAQS. If the rule were finalized as proposed, it would apply to 25 states (including Texas) beginning in 2023. In 2023, the revised Group 3 trading program (previously established in the Revised CSAPR Update Rule) would have emission budgets based on NOx emission rates that the EPA says are achievable by existing controls at power plants. Starting in 2026, the NOx budgets would be reduced significantly based on levels achievable if selective catalytic reduction ("SCR") controls were installed at coal-fueled power plants that do not currently have such controls. Starting in 2025, the budgets would be updated annually to account for retirements, changes to operations and new units. The proposal also contemplates heightened surrender requirements for units that exceed certain NOx emission rate thresholds. Comments on the proposed rule were due in June 2022 and numerous detailed comments were submitted. The Company cannot predict the outcome of this proposed revision and anticipates that this rulemaking will be subject to legal challenges after it is finalized. Water Effluent Limitations Guidelines — In November 2015, the EPA revised the Effluent Limitations Guidelines ("ELG") for Steam Electric Generating Facilities, which imposed more stringent requirements (as individual permits were renewed) for wastewater streams from FGD, fly ash, bottom ash and flue gas mercury control. On September 18, 2017, the EPA promulgated a final rule that, among other things, postponed the compliance dates to preserve the status quo for FGD wastewater and bottom ash transport water by two years to November 2020 until the EPA amended the rule. On October 13, 2020, the EPA amended the 2015 ELG rule by: (i) altering the stringency of certain limits for FGD wastewater; (ii) relaxing the zero-discharge requirement for bottom ash transport water; and (iii) changing several deadlines. On July 26, 2021, the EPA announced that it is initiating a new rulemaking to evaluate revising the ELG rule. While the EPA is developing the new rule, the existing rule (as amended in 2020) will stay in place, and the EPA expects permitting authorities to continue to implement the current regulation. The Company anticipates that the EPA will release a proposed rule in the first quarter of 2023. In October 2021, NRG informed its regulators that the Company intends to comply with the ELG by ceasing combustion of coal by the end of 2028 at its domestic coal units outside of Texas, and installing appropriate controls by the end of 2025 at its two plants that have coal-fired units in Texas. Byproducts, Wastes, Hazardous Materials and Contamination In April 2015, the EPA finalized the rule regulating byproducts of coal combustion (e.g., ash and gypsum) as solid wastes under the RCRA. In September 2017, the EPA agreed to reconsider the rule. On July 30, 2018, the EPA promulgated a rule that amended the existing ash rule by extending some of the deadlines and providing more flexibility for compliance. On August 21, 2018, the D.C. Circuit found, among other things, that the EPA had not adequately regulated unlined ponds and legacy ponds. In 2019 and 2020, the EPA proposed several changes to this rule. On August 28, 2020, the EPA finalized "A Holistic Approach to Close Part A: Deadline to Initiate Closure," which amended the April 2015 Rule to address the August 2018 D.C. Circuit decision and extend some of the deadlines. On November 12, 2020, the EPA finalized "A Holistic Approach to Closure Part B," which further amended the April 2015 Rule to, among other things, provide procedures for requesting approval to operate existing impoundments with an alternative liner. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of EstimatesThe preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates. |
Reclassifications | ReclassificationsCertain prior period amounts have been reclassified for comparative purposes. The reclassifications did not affect consolidated results from operations, net assets or consolidated cash flows |
Credit Losses | Credit Losses Retail trade receivables are reported on the balance sheet net of the allowance for credit losses. The Company accrues a provision for current expected credit losses based on (i) estimates of uncollectible revenues by analyzing accounts receivable aging and current and reasonable forecasts of expected economic factors including, but not limited to, unemployment rates and weather-related events, (ii) historical collections and delinquencies, and (iii) counterparty credit ratings for commercial and industrial customers. |
Funds Deposited by Counterparties and Restricted Cash | Funds deposited by counterparties consist of cash held by the Company as a result of collateral posting obligations from its counterparties related to NRG's hedging program. The increase in funds deposited by counterparties is driven by the significant increase in forward positions as a result of increases in natural gas and power prices compared to December 31, 2021. Though some amounts are segregated into separate accounts, not all funds are contractually restricted. Based on the Company's intention, these funds are not available for the payment of general corporate obligations; however, they are available for liquidity management. Depending on market fluctuations and the settlement of the underlying contracts, the Company will refund this collateral to the counterparties pursuant to the terms and conditions of the underlying trades. Since collateral requirements fluctuate daily and the Company cannot predict if any collateral will be held for more than twelve months, the funds deposited by counterparties are classified as a current asset on the Company's balance sheet, with an offsetting liability for this cash collateral received within current liabilities. Restricted cash consists primarily of funds held to satisfy the requirements of certain debt agreements and funds held within the Company's projects that are restricted in their uses. |
Winter Storm Uri Uplift Securitization Proceeds | Winter Storm Uri Uplift Securitization Proceeds The Texas Legislature passed House Bill ("HB") 4492 in May of 2021 for ERCOT to mitigate exceptionally high price adders and ancillary service costs incurred by LSEs during Winter Storm Uri. HB 4492 authorized ERCOT to obtain $2.1 billion of financing to distribute to LSEs that were charged and paid to ERCOT those highly priced ancillary service and ORDPA during Winter Storm Uri. In December 2021, ERCOT filed with the PUCT a calculation of each LSE’s share of proceeds based on the settlement methodology. The Company accounted for the proceeds by analogy to the contribution model within ASC 958-605, Not-for-Profit Entities- Revenue Recognition and the grant model within IAS 20, Accounting for Government Grants and Disclosure of Government Assistance |
Recent Accounting Developments | Recent Accounting Developments - Guidance Adopted in 2022 ASU 2020-06 — In August 2020, the FASB issued ASU No. 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) , or ASU 2020-06. The guidance in ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. In addition, ASU 2020-06 improves and amends the related earnings per share guidance. The Company adopted this standard on January 1, 2022 using the modified retrospective approach. As a result of the provisions of the amended guidance, the Company recorded a $100 million decrease to additional paid-in capital, a $57 million decrease to debt discount, a $57 million increase to retained earnings and a $14 million decrease to long-term deferred tax liabilities. The adoption of ASU 2020-06 did not have a material impact on the Company's statement of operations, statement of cash flow or earnings per share amounts. |
Nuclear Decommissioning | NRG's Nuclear Decommissioning Trust Fund assets, which are for the decommissioning of its 44% interest in STP, are comprised of securities classified as available-for-sale and recorded at fair value based on actively quoted market prices. NRG accounts for the Nuclear Decommissioning Trust Fund in accordance with ASC 980, Regulated Operations |
Segment Reporting | The Company’s segment structure reflects how management currently makes financial decisions and allocates resources. The Company manages its operations based on the combined results of the retail and wholesale generation businesses with a geographical focus. NRG’s chief operating decision maker, its chief executive officer, evaluates the performance of its segments based on operational measures including adjusted earnings before interest, taxes, depreciation and amortization, or Adjusted EBITDA, free cash flow and allocation of capital, as well as net income/(loss). |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Other Balance Sheet Information | The following table presents the accumulated depreciation included in property, plant and equipment, net and accumulated amortization included in intangible assets, net: (In millions) September 30, 2022 December 31, 2021 Property, plant and equipment accumulated depreciation $ 1,456 $ 1,308 Intangible assets accumulated amortization 1,989 1,636 |
Activity in Allowance for Credit Losses | The following table represents the activity in the allowance for credit losses for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Beginning balance $ 627 $ 761 $ 683 $ 67 Acquired balance from Direct Energy — — — 112 Provision for credit losses 52 64 103 715 Write-offs (50) (41) (171) (124) Recoveries collected 9 8 23 22 Ending balance $ 638 $ 792 $ 638 $ 792 |
Reconciliation of Cash and Cash Equivalents, Restricted Cash and Funds Deposited by Counterparties | The following table provides a reconciliation of cash and cash equivalents, restricted cash and funds deposited by counterparties reported within the consolidated balance sheets that sum to the total of the same such amounts shown in the statements of cash flows: (In millions) September 30, 2022 December 31, 2021 Cash and cash equivalents $ 333 $ 250 Funds deposited by counterparties 3,134 845 Restricted cash 46 15 Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows $ 3,513 $ 1,110 |
Schedule of Goodwill | The following table represents the changes in goodwill during the nine months ended September 30, 2022: (In millions) Texas East West/Services/Other Total Balance as of December 31, 2021 $ 751 $ 853 $ 191 $ 1,795 Impairment — (130) — (130) Asset sales (6) — — (6) Foreign Currency Translation — — (9) (9) Balance as of September 30, 2022 $ 745 $ 723 $ 182 $ 1,650 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue from Contracts with Customer | Disaggregated Revenues The following tables represent the Company’s disaggregation of revenue from contracts with customers for the three and nine months ended September 30, 2022 and 2021: Three months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 2,074 $ 546 $ 429 $ — $ 3,049 Business 931 3,317 561 — 4,809 Total retail revenue (b) 3,005 3,863 990 — 7,858 Energy revenue (b) 48 212 180 10 450 Capacity revenue (b) — 38 — — 38 Mark-to-market for economic hedging activities (c) 4 32 (7) 4 33 Contract amortization — (10) 4 — (6) Other revenue (b) 92 45 2 (2) 137 Total revenue 3,149 4,180 1,169 12 8,510 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — 3 14 (1) 16 Less: Realized and unrealized ASC 815 revenue 15 93 13 14 135 Total revenue from contracts with customers $ 3,134 $ 4,084 $ 1,142 $ (1) $ 8,359 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue $ — $ 90 $ — $ — $ 90 Energy revenue — (39) 27 11 (1) Capacity revenue — 7 — — 7 Other revenue 11 3 (7) (1) 6 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Three months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 1,776 $ 470 $ 399 $ 1 $ 2,646 Business 727 2,228 350 — 3,305 Total retail revenue 2,503 2,698 749 1 5,951 Energy revenue (b) 18 201 113 4 336 Capacity revenue (b) — 172 17 — 189 Mark-to-market for economic hedging activities (c) (1) (3) (6) 13 3 Contract amortization — (7) 4 — (3) Other revenue (b) 115 16 6 (4) 133 Total revenue 2,635 3,077 883 14 6,609 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (7) 6 — (1) Less: Realized and unrealized ASC 815 revenue 38 76 (8) 14 120 Total revenue from contracts with customers $ 2,597 $ 3,008 $ 885 $ — $ 6,490 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Energy revenue $ — $ 38 $ 2 $ 1 $ 41 Capacity revenue — 42 — — 42 Other revenue 39 (1) (4) — 34 (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 5,024 $ 1,674 $ 1,663 $ (1) $ 8,360 Business 2,504 10,110 1,405 — 14,019 Total retail revenue (b) 7,528 11,784 3,068 (1) 22,379 Energy revenue (b) 101 544 365 24 1,034 Capacity revenue (b) — 242 2 — 244 Mark-to-market for economic hedging activities (c) 1 (204) (63) 18 (248) Contract amortization — (30) 2 — (28) Other revenue (b) 238 78 3 (12) 307 Total revenue 7,868 12,414 3,377 29 23,688 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (10) 33 (1) 22 Less: Realized and unrealized ASC 815 revenue (5) (96) (99) 41 (159) Total revenue from contracts with customers $ 7,873 $ 12,520 $ 3,443 $ (11) $ 23,825 (a) Home includes Services (b) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue $ — $ 90 $ — $ — $ 90 Energy revenue — (13) (13) 24 (2) Capacity revenue — 29 — — 29 Other revenue (6) 2 (23) (1) (28) (c) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 Nine months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate/Eliminations Total Retail revenue: Home (a) $ 4,484 $ 1,469 $ 1,439 $ (1) $ 7,391 Business 2,091 6,560 887 — 9,538 Total retail revenue 6,575 8,029 2,326 (1) 16,929 Energy revenue (c) 317 428 238 6 989 Capacity revenue (c) — 568 47 — 615 Mark-to-market for economic hedging activities (d) (5) (53) (60) 19 (99) Contract amortization — (15) (4) — (19) Other revenue (b)(c) 1,475 45 17 (9) 1,528 Total revenue 8,362 9,002 2,564 15 19,943 Less: Revenues accounted for under topics other than ASC 606 and ASC 815 — (14) 1 — (13) Less: Realized and unrealized ASC 815 revenue 129 193 (73) 20 269 Total revenue from contracts with customers $ 8,233 $ 8,823 $ 2,636 $ (5) $ 19,687 (a) Home includes Services (b) Other Revenue in Texas includes ancillary revenues of $1.2 billion driven by high pricing during Winter Storm Uri (c) The following table represents the realized revenues related to derivative instruments that are accounted for under ASC 815 and included in the amounts above: (In millions) Texas East West/Services/Other Corporate/Eliminations Total Energy revenue $ — $ 122 $ (4) $ 2 $ 120 Capacity revenue — 119 — — 119 Other revenue 134 5 (9) (1) 129 (d) Revenue relates entirely to unrealized gains and losses on derivative instruments accounted for under ASC 815 |
Contract Asset and Liabilities | The following table reflects the contract assets and liabilities included in the Company’s balance sheet as of September 30, 2022 and December 31, 2021: (In millions) September 30, 2022 December 31, 2021 Deferred customer acquisition costs $ 117 $ 133 Accounts receivable, net - Contracts with customers 3,768 3,057 Accounts receivable, net - Accounted for under topics other than ASC 606 290 182 Accounts receivable, net - Affiliate 3 6 Total accounts receivable, net $ 4,061 $ 3,245 Unbilled revenues (included within Accounts receivable, net - Contracts with customers) $ 1,464 $ 1,574 Deferred revenues (a) 213 227 (a) Deferred revenues from contracts with customers for the nine months ended September 30, 2022 and the year ended December 31, 2021 were approximately $207 million and $224 million, respectively |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Estimated carrying amounts and fair values of NRG's recorded financial instruments not carried at fair market value | The estimated carrying value and fair value of the Company's financial instruments not carried at fair market value are as follows: September 30, 2022 December 31, 2021 (In millions) Carrying Amount Fair Value Carrying Amount Fair Value Convertible Senior Notes $ 575 $ 611 $ 518 $ 677 Other long-term debt, including current portion 7,523 6,473 7,522 7,650 Total long-term debt, including current portion (a) $ 8,098 $ 7,084 $ 8,040 $ 8,327 (a) Excludes deferred financing costs, which are recorded as a reduction to long-term debt in the Company's consolidated balance sheets |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | The following tables present assets and liabilities measured and recorded at fair value on the Company's condensed consolidated balance sheets on a recurring basis and their level within the fair value hierarchy: September 30, 2022 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 19 $ — $ 19 $ — Nuclear trust fund investments: Cash and cash equivalents 17 17 — — U.S. government and federal agency obligations 85 83 2 — Federal agency mortgage-backed securities 101 — 101 — Commercial mortgage-backed securities 37 — 37 — Corporate debt securities 104 — 104 — Equity securities 372 372 — — Foreign government fixed income securities 2 — 2 — Other trust fund investments (classified within other non-current assets): U.S. government and federal agency obligations 1 1 — — Derivative assets: Foreign exchange contracts 30 — 30 — Commodity contracts 14,822 2,873 10,936 1,013 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 71 Equity securities (classified within other non-current assets) 6 Total assets $ 15,667 $ 3,346 $ 11,231 $ 1,013 Derivative liabilities: Commodity contracts 9,643 1,228 8,084 331 Total liabilities $ 9,643 $ 1,228 $ 8,084 $ 331 December 31, 2021 (In millions) Total Level 1 Level 2 Level 3 Investments in securities (classified within other current and non-current assets) $ 32 $ 15 $ 17 $ — Nuclear trust fund investments: Cash and cash equivalents 33 33 — — U.S. government and federal agency obligations 112 111 1 — Federal agency mortgage-backed securities 100 — 100 — Commercial mortgage-backed securities 44 — 44 — Corporate debt securities 122 — 122 — Equity securities 494 494 — — Foreign government fixed income securities 4 — 4 — Other trust fund investments (classified within other non-current assets): U.S. government and federal agency obligations 1 1 — — Derivative assets: Foreign exchange contracts 1 — 1 — Commodity contracts 7,139 981 5,701 457 Measured using net asset value practical expedient: Equity securities — nuclear trust fund investments 99 Equity securities (classified within other non-current assets) 7 Total assets $ 8,188 $ 1,635 $ 5,990 $ 457 Derivative liabilities: Foreign exchange contracts $ 1 $ — $ 1 $ — Commodity contracts 4,798 626 4,008 164 Total liabilities $ 4,799 $ 626 $ 4,009 $ 164 |
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, 2022 and 2021, the beginning and ending balances for financial instruments that are recognized at fair value in the condensed consolidated financial statements, using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Derivatives (a) (In millions) Three months ended September 30, 2022 Three months ended September 30, 2021 Nine months ended September 30, 2022 Nine months ended September 30, 2021 Beginning balance $ 1,403 $ 574 $ 293 $ (16) Contracts added from Direct Energy acquisition — — — (15) Total (losses)/gains realized/unrealized — included in earnings (314) (175) 145 187 Purchases 60 — 89 78 Transfers into Level 3 (b) (466) (108) 155 64 Transfers out of Level 3 (b) (1) 20 — 13 Ending balance $ 682 $ 311 $ 682 $ 311 (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 period end $ (240) $ (237) $ 294 $ 184 (a) Consists of derivative assets and liabilities, net (b) Transfers into/out of Level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. All transfers in/out are with Level 2 |
Significant unobservable inputs used developing fair values, Quantitative Information | The following tables quantify the significant unobservable inputs used in developing the fair value of the Company's Level 3 positions as of September 30, 2022 and December 31, 2021: September 30, 2022 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 90 $ 46 Discounted Cash Flow Forward Market Price (per MMBtu) $ 3 $ 35 $ 11 Power Contracts 842 221 Discounted Cash Flow Forward Market Price (per MWh) 20 263 55 FTRs 81 64 Discounted Cash Flow Auction Prices (per MWh) (67) 46 1 $ 1,013 $ 331 December 31, 2021 Fair Value Input/Range (In millions) Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average Natural Gas Contracts $ 16 $ 1 Discounted Cash Flow Forward Market Price (per MMBtu) $ 3 $ 40 $ 15 Power Contracts 392 121 Discounted Cash Flow Forward Market Price (per MWh) 3 212 35 FTRs 49 42 Discounted Cash Flow Auction Prices (per MWh) (122) 43 0 $ 457 $ 164 |
Fair value inputs, sensitivity analysis | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2022 and December 31, 2021: Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Natural Gas/Power Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Natural Gas/Power Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) |
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 NRG with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market and 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) Category by Industry Sector (% of Total) Utilities, energy merchants, marketers and other 61 % Financial institutions 39 Total as of September 30, 2022 100 % Net Exposure (a)(b) Category by Counterparty Credit Quality (% of Total) Investment grade 68 % Non-investment grade/non-rated 32 Total as of September 30, 2022 100 % (a) Counterparty credit exposure excludes uranium and coal 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 |
Nuclear Decommissioning Trust_2
Nuclear Decommissioning Trust Fund (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Regulated Operations [Abstract] | |
Summary of aggregate fair values and unrealized gains and losses for the securities held in the trust fund | The following table summarizes the aggregate fair values and unrealized gains and losses for the securities held in the trust funds, as well as information about the contractual maturities of those securities. As of September 30, 2022 As of December 31, 2021 (In millions, except maturities) Fair Value Unrealized Gains Unrealized Losses Weighted-average Maturities (In years) Fair Value Unrealized Gains Unrealized Losses Weighted-average Maturities (In years) Cash and cash equivalents $ 17 $ — $ — — $ 33 $ — $ — — U.S. government and federal agency obligations 85 — 10 11 112 5 1 10 Federal agency mortgage-backed securities 101 — 12 25 100 2 — 25 Commercial mortgage-backed securities 37 — 4 28 44 1 — 27 Corporate debt securities 104 — 15 13 122 7 1 14 Equity securities 443 301 — — 593 456 — — Foreign government fixed income securities 2 — — 18 4 — — 13 Total $ 789 $ 301 $ 41 $ 1,008 $ 471 $ 2 |
Summary of proceeds from sales of available-for-sale securities and the related realized gains and losses | The following table summarizes proceeds from sales of available-for-sale securities held in the trust funds and the related realized gains and losses from these sales. The cost of securities sold is determined on the specific identification method. Nine months ended September 30, (In millions) 2022 2021 Realized gains $ 12 $ 10 Realized losses (19) (6) Proceeds from sale of securities 363 424 |
Accounting for Derivative Ins_2
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 and December 31, 2021. 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, 2022 December 31, 2021 Emissions Short Ton 1 1 Renewable Energy Certificates Certificates 11 13 Coal Short Ton 13 19 Natural Gas MMBtu 748 813 Oil Barrels — 1 Power MWh 176 185 Foreign Exchange Dollars $ 502 $ 279 |
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, 2022 December 31, 2021 September 30, 2022 December 31, 2021 Derivatives Not Designated as Cash Flow or Fair Value Hedges: Foreign exchange contracts - current $ 16 $ — $ — $ 1 Foreign exchange contracts - long-term 14 1 — — Commodity contracts - current 9,922 4,613 6,841 3,386 Commodity contracts - long-term 4,900 2,526 2,802 1,412 Total Derivatives Not Designated as Cash Flow or Fair Value Hedges $ 14,852 $ 7,140 $ 9,643 $ 4,799 |
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, 2022 Foreign exchange contracts: Derivative assets $ 30 $ — $ — $ 30 Commodity contracts: Derivative assets $ 14,822 $ (8,987) $ (3,081) $ 2,754 Derivative liabilities (9,643) 8,987 29 (627) Total commodity contracts $ 5,179 $ — $ (3,052) $ 2,127 Total derivative instruments $ 5,209 $ — $ (3,052) $ 2,157 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, 2021 Foreign exchange contracts: Derivative assets $ 1 $ (1) $ — $ — Derivative liabilities (1) 1 — — Total foreign exchange contracts $ — $ — $ — $ — Commodity contracts: Derivative assets $ 7,139 $ (4,440) $ (831) $ 1,868 Derivative liabilities (4,798) 4,440 17 (341) Total commodity contracts $ 2,341 $ — $ (814) $ 1,527 Total derivative instruments $ 2,341 $ — $ (814) $ 1,527 |
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, 2022 Foreign exchange contracts: Derivative assets $ 30 $ — $ — $ 30 Commodity contracts: Derivative assets $ 14,822 $ (8,987) $ (3,081) $ 2,754 Derivative liabilities (9,643) 8,987 29 (627) Total commodity contracts $ 5,179 $ — $ (3,052) $ 2,127 Total derivative instruments $ 5,209 $ — $ (3,052) $ 2,157 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, 2021 Foreign exchange contracts: Derivative assets $ 1 $ (1) $ — $ — Derivative liabilities (1) 1 — — Total foreign exchange contracts $ — $ — $ — $ — Commodity contracts: Derivative assets $ 7,139 $ (4,440) $ (831) $ 1,868 Derivative liabilities (4,798) 4,440 17 (341) Total commodity contracts $ 2,341 $ — $ (814) $ 1,527 Total derivative instruments $ 2,341 $ — $ (814) $ 1,527 |
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 statement of operations. The effect of foreign exchange and commodity hedges are included within revenues and cost of operations. (In millions) Three months ended September 30, Nine months ended September 30, Unrealized mark-to-market results 2022 2021 2022 2021 Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges $ (387) $ (97) $ (992) $ (58) Reversal of acquired (gain)/loss positions related to economic hedges (15) (42) (27) 206 Net unrealized gains on open positions related to economic hedges 313 1,924 3,926 3,875 Total unrealized mark-to-market (losses)/gains for economic hedging activities (89) 1,785 2,907 4,023 Reversal of previously recognized unrealized losses/(gains) on settled positions related to trading activity 2 (6) 11 (16) Net unrealized gains/(losses) on open positions related to trading activity 7 14 (18) 18 Total unrealized mark-to-market gains/(losses) for trading activity 9 8 (7) 2 Total unrealized (losses)/gains $ (80) $ 1,793 $ 2,900 $ 4,025 Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Unrealized gains/(losses) included in revenues - commodities $ 42 $ 11 $ (255) $ (97) Unrealized (losses)/gains included in cost of operations - commodities (148) 1,777 3,124 4,121 Unrealized gains included in cost of operations - foreign exchange 26 5 31 1 Total impact to statement of operations - commodities $ (80) $ 1,793 $ 2,900 $ 4,025 |
Long-term Debt and Finance Le_2
Long-term Debt and Finance Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt and Finance Leases | Long-term debt and finance leases consisted of the following: (In millions, except rates) September 30, 2022 December 31, 2021 Interest rate % Recourse debt: Senior Notes, due 2027 $ 375 $ 375 6.625 Senior Notes, due 2028 821 821 5.750 Senior Notes, due 2029 733 733 5.250 Senior Notes, due 2029 500 500 3.375 Senior Notes, due 2031 1,030 1,030 3.625 Senior Notes, due 2032 1,100 1,100 3.875 Convertible Senior Notes, due 2048 (a) 575 575 2.750 Senior Secured First Lien Notes, due 2024 600 600 3.750 Senior Secured First Lien Notes, due 2025 500 500 2.000 Senior Secured First Lien Notes, due 2027 900 900 2.450 Senior Secured First Lien Notes, due 2029 500 500 4.450 Tax-exempt bonds 466 466 1.250 - 4.750 Subtotal recourse debt 8,100 8,100 Finance leases 12 13 various Subtotal long-term debt and finance leases (including current maturities) 8,112 8,113 Less current maturities (62) (4) Less debt issuance costs (74) (83) Discounts (2) (60) Total long-term debt and finance leases $ 7,974 $ 7,966 (a) As of the ex-dividend date of October 31, 2022, the Convertible Senior Notes were convertible at a price of $43.46, which is equivalent to a conversion rate of approximately 23.0116 shares of common stock per $1,000 principal amount. |
Schedule of Debt Instrument, Interest Expense | The following table details the interest expense recorded in connection with the Convertible Senior Notes, due 2048: Three months ended September 30, Nine months ended September 30, ($ In millions) 2022 2021 2022 2021 Contractual interest expense $ 4 $ 4 $ 12 $ 12 Amortization of discount and deferred finance costs — 4 1 12 Total $ 4 $ 8 $ 13 $ 24 Effective Interest Rate 0.76 % 1.34 % 2.28 % 3.99 % |
Investments Accounted for Usi_2
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Variable Interest Entities Disclosure [Abstract] | |
Financial Information for Consolidated VIEs | The summarized financial information for the Company's consolidated VIE consisted of the following: (In millions) September 30, 2022 December 31, 2021 Accounts receivable and Other current assets $ 1,269 $ 939 Current liabilities 153 78 Net assets $ 1,116 $ 861 |
Changes in Capital Structure (T
Changes in Capital Structure (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Changes in NRG's common shares issued and outstanding | As of September 30, 2022 and December 31, 2021, the Company had 500,000,000 shares of common stock authorized. The following table reflects the changes in NRG's common stock issued and outstanding: Issued Treasury Outstanding Balance as of December 31, 2021 423,547,174 (179,793,275) 243,753,899 Shares issued under LTIPs 347,365 — 347,365 Shares issued under ESPP — 68,941 68,941 Shares repurchased — (12,045,068) (12,045,068) Balance as of September 30, 2022 423,894,539 (191,769,402) 232,125,137 Shares issued under LTIPs 2,462 — 2,462 Shares issued under ESPP — 73,884 73,884 Shares repurchased — (1,817,278) (1,817,278) Balance as of October 31, 2022 423,897,001 (193,512,796) 230,384,205 |
Shares Repurchased | The following repurchases have been made during the nine months ended September 30, 2022, and through October 31, 2022: Total number of shares and share equivalents purchased Average price paid per share and share equivalent Amounts paid for shares and share equivalents purchased (in millions) 2022 repurchases Repurchases (a) 12,045,068 $ 483 Equivalent shares purchased in lieu of tax withholdings on equity compensation issuances (b) 150,448 6 Total Share Repurchases during the nine months ended September 30, 2022 12,195,516 $40.07 489 Repurchases made during October (a) 1,817,278 $ 76 Equivalent shares purchased in October in lieu of tax withholdings on equity compensation issuances (b) 793 — Total Share Repurchases January 1, 2022 through October 31, 2022 14,013,587 $40.28 $ 565 (a) Includes $10 million and $6 million accrued as of September 30, 2022 and October 31, 2022, respectively (b) NRG elected to pay cash for tax withholding on equity awards instead of issuing actual shares to management. The average price per equivalent shares withheld was $42.75 and $41.04 for the nine months ended September 30, 2022 and for October 2022, respectively |
Income Per Share (Tables)
Income Per Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
NRG's basic and diluted (loss)/income per share | NRG's basic and diluted income per share is shown in the following table: Three months ended September 30, Nine months ended September 30, (In millions, except per share data) 2022 2021 2022 2021 Basic and diluted income per share: Net income $ 67 $ 1,618 $ 2,316 $ 2,614 Weighted average number of common shares outstanding - basic and diluted 235 245 238 245 Income per weighted average common share — basic and diluted $ 0.29 $ 6.60 $ 9.73 $ 10.67 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Three months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 3,149 $ 4,180 $ 1,169 $ — $ 12 $ 8,510 Depreciation and amortization 77 39 22 7 — 145 Impairment losses — 43 — — — 43 Gain on sale of assets 22 — — — — 22 Equity in (losses)/earnings of unconsolidated affiliates (1) — 12 — — 11 (Loss)/Income before income taxes (475) 555 106 (103) — 83 Net (loss)/income $ (475) $ 555 $ 88 $ (101) $ — $ 67 Three months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 2,635 $ 3,077 $ 883 $ — $ 14 $ 6,609 Depreciation and amortization 84 87 21 7 — 199 Equity in (losses)/earnings of unconsolidated affiliates (2) — 17 — — 15 Income/(loss) before income taxes 251 1,980 140 (208) — 2,163 Net income/(loss) $ 251 $ 1,980 $ 126 $ (739) $ — $ 1,618 Nine months ended September 30, 2022 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 7,868 $ 12,414 $ 3,377 $ — $ 29 $ 23,688 Depreciation and amortization 230 167 65 23 — 485 Impairment losses — 198 — — — 198 Gain/(loss) on sale of assets 10 — 43 (2) — 51 Equity in (losses)/earnings of unconsolidated affiliates (2) — 2 — — — Income/(loss) before income taxes 1,064 2,085 259 (353) — 3,055 Net income/(loss) $ 1,064 $ 2,086 $ 231 $ (1,065) $ — $ 2,316 Nine months ended September 30, 2021 (In millions) Texas East West/Services/Other Corporate Eliminations Total Revenue $ 8,362 $ 9,002 $ 2,564 $ — $ 15 $ 19,943 Depreciation and amortization 245 237 66 21 — 569 Impairment losses — 306 — — — 306 Gain on sale of assets — — 17 — — 17 Equity in (losses)/earnings of unconsolidated affiliates (3) — 26 — — 23 Income/(loss) before income taxes 600 3,119 271 (536) — 3,454 Net income/(loss) $ 600 $ 3,119 $ 239 $ (1,344) $ — $ 2,614 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Provision | The income tax provision consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions, except rates) 2022 2021 2022 2021 Income before income taxes $ 83 $ 2,163 $ 3,055 $ 3,454 Income tax expense 16 545 739 840 Effective income tax rate 19.3 % 25.2 % 24.2 % 24.3 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Summary of NRG's Material Related Party Transactions | The following table summarizes NRG's material related party transactions with third party affiliates: Three months ended September 30, Nine months ended September 30, (In millions) 2022 2021 2022 2021 Revenues from Related Parties Included in Revenue Gladstone $ 1 $ 1 $ 2 $ 2 Ivanpah (a) 10 9 32 30 Midway-Sunset 2 1 5 4 Total $ 13 $ 11 $ 39 $ 36 (a) Also includes fees under project management agreements with each project company |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation - General (Details) counterparty in Millions | 9 Months Ended |
Sep. 30, 2022 counterparty GW | |
Business Acquisition [Line Items] | |
Generation capacity (in GW) | GW | 16 |
Home | |
Business Acquisition [Line Items] | |
Customers | counterparty | 5.5 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Other Balance Sheet Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accounting Policies [Abstract] | ||
Property, plant and equipment accumulated depreciation | $ 1,456 | $ 1,308 |
Intangible assets accumulated amortization | $ 1,989 | $ 1,636 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 627 | $ 761 | $ 683 | $ 67 |
Acquired balance from Direct Energy | 0 | 0 | 0 | 112 |
Provision for credit losses | 52 | 64 | 103 | 715 |
Write-offs | (50) | (41) | (171) | (124) |
Recoveries collected | 9 | 8 | 23 | 22 |
Ending balance | $ 638 | $ 792 | 638 | $ 792 |
Decrease in provision for credit losses due finance hedge risk | 403 | |||
Decrease in provision for credit losses due to counterparty credit risk | 152 | |||
Decrease in provision for credit losses due to shortfall payments | $ 83 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Cash and Cash Equivalents, Funds Deposited by Counterparties and Restricted Cash (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 333 | $ 250 | ||
Funds deposited by counterparties | 3,134 | 845 | ||
Restricted cash | 46 | 15 | ||
Cash and cash equivalents, funds deposited by counterparties and restricted cash shown in the statement of cash flows | $ 3,513 | $ 1,110 | $ 2,021 | $ 3,930 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Securitization Proceeds (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | |||
Uplift securitization proceeds received from ERCOT | $ 689 | $ 689 | $ 0 |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Goodwill (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | |
Goodwill [Roll Forward] | |||
Balance beginning of period | $ 1,795 | ||
Impairment | $ (130) | (130) | |
Asset sales | (6) | ||
Foreign Currency Translation | 9 | ||
Balance end of period | 1,650 | ||
Texas | |||
Goodwill [Roll Forward] | |||
Balance beginning of period | 751 | ||
Impairment | 0 | ||
Asset sales | (6) | ||
Foreign Currency Translation | 0 | ||
Balance end of period | 745 | ||
East | |||
Goodwill [Roll Forward] | |||
Balance beginning of period | 853 | ||
Impairment | $ (35) | (130) | |
Asset sales | 0 | ||
Foreign Currency Translation | 0 | ||
Balance end of period | 723 | ||
West/Services/Other | |||
Goodwill [Roll Forward] | |||
Balance beginning of period | 191 | ||
Impairment | 0 | ||
Asset sales | 0 | ||
Foreign Currency Translation | 9 | ||
Balance end of period | $ 182 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Adoption of New Accounting Policy (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | $ 5,130 | $ 5,300 | $ 5,030 | $ 3,600 | $ 4,078 | $ 2,544 | $ 1,517 | $ 1,680 | |
Additional Paid-In Capital | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | 8,450 | 8,442 | 8,433 | 8,531 | 8,525 | 8,519 | 8,513 | 8,517 | |
Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | $ 2,584 | $ 2,600 | $ 2,171 | 464 | $ 971 | $ (567) | $ (1,565) | $ (1,403) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | (43) | ||||||||
Debt discount | $ 57 | ||||||||
Deferred tax liabilities | 14 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | (100) | (100) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | $ 57 | $ 57 |
Revenue Recognition - Performan
Revenue Recognition - Performance Obligations Expected Timing of Satisfaction (Details) $ in Millions | Sep. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 31 |
Revenue remaining performance obligation period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 77 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 23 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Estimated future fixed fee performance obligations | $ 2 |
Revenue remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue remaining performance obligation period | 1 year |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 8,359 | $ 6,490 | $ 23,825 | $ 19,687 |
Mark-to-market for economic hedging activities | (89) | 1,785 | 2,907 | 4,023 |
Revenue | 8,510 | 6,609 | 23,688 | 19,943 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 16 | (1) | 22 | (13) |
Derivative revenue | (80) | 1,793 | 2,900 | 4,025 |
Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (1) | 0 | (11) | (5) |
Revenue | 12 | 14 | 29 | 15 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | (1) | 0 | (1) | 0 |
Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 7,858 | 5,951 | 22,379 | 16,929 |
Derivative revenue | 90 | |||
Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 1 | (1) | (1) |
Derivative revenue | 0 | |||
Energy revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 450 | 336 | 1,034 | 989 |
Derivative revenue | (1) | 41 | (2) | 120 |
Energy revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 10 | 4 | 24 | 6 |
Derivative revenue | 11 | 1 | 24 | 2 |
Capacity revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38 | 189 | 244 | 615 |
Derivative revenue | 7 | 42 | 29 | 119 |
Capacity revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Derivative revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 33 | 3 | (248) | (99) |
Less: Realized and unrealized ASC 815 revenue | 135 | 120 | (159) | 269 |
Derivative revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 4 | 13 | 18 | 19 |
Less: Realized and unrealized ASC 815 revenue | 14 | 14 | 41 | 20 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 137 | 133 | 307 | 1,528 |
Contract amortization | (6) | (3) | (28) | (19) |
Other revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | (2) | (4) | (12) | (9) |
Contract amortization | 0 | 0 | 0 | 0 |
Total operating revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8,510 | 6,609 | 23,688 | 19,943 |
Total operating revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 12 | 14 | 29 | 15 |
Other revenue, derivative | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 6 | 34 | (28) | 129 |
Other revenue, derivative | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | (1) | 0 | (1) | (1) |
Home | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,049 | 2,646 | 8,360 | 7,391 |
Home | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 1 | (1) | (1) |
Business | Retail revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,809 | 3,305 | 14,019 | 9,538 |
Business | Retail revenue | Corporate/Eliminations | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Texas | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,134 | 2,597 | 7,873 | 8,233 |
Revenue | 3,149 | 2,635 | 7,868 | 8,362 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 0 | 0 | 0 | 0 |
Texas | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,005 | 2,503 | 7,528 | 6,575 |
Derivative revenue | 0 | |||
Texas | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 48 | 18 | 101 | 317 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 0 | 0 | 0 |
Derivative revenue | 0 | 0 | 0 | 0 |
Texas | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 4 | (1) | 1 | (5) |
Less: Realized and unrealized ASC 815 revenue | 15 | 38 | (5) | 129 |
Texas | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 92 | 115 | 238 | 1,475 |
Contract amortization | 0 | 0 | 0 | 0 |
Texas | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,149 | 2,635 | 7,868 | 8,362 |
Texas | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 11 | 39 | (6) | 134 |
Texas | Other revenue, ancillary | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,200 | |||
Texas | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,074 | 1,776 | 5,024 | 4,484 |
Texas | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 931 | 727 | 2,504 | 2,091 |
East | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 4,084 | 3,008 | 12,520 | 8,823 |
Revenue | 4,180 | 3,077 | 12,414 | 9,002 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 3 | (7) | (10) | (14) |
East | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,863 | 2,698 | 11,784 | 8,029 |
Derivative revenue | 90 | |||
East | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 212 | 201 | 544 | 428 |
Derivative revenue | (39) | 38 | (13) | 122 |
East | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 38 | 172 | 242 | 568 |
Derivative revenue | 7 | 42 | 29 | 119 |
East | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | 32 | (3) | (204) | (53) |
Less: Realized and unrealized ASC 815 revenue | 93 | 76 | (96) | 193 |
East | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 45 | 16 | 78 | 45 |
Contract amortization | (10) | (7) | (30) | (15) |
East | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 4,180 | 3,077 | 12,414 | 9,002 |
East | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | 3 | (1) | 2 | 5 |
East | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 546 | 470 | 1,674 | 1,469 |
East | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 3,317 | 2,228 | 10,110 | 6,560 |
West/Services/Other | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,142 | 885 | 3,443 | 2,636 |
Revenue | 1,169 | 883 | 3,377 | 2,564 |
Less: Revenues accounted for under topics other than ASC 606 and ASC 815 | 14 | 6 | 33 | 1 |
West/Services/Other | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 990 | 749 | 3,068 | 2,326 |
Derivative revenue | 0 | |||
West/Services/Other | Energy revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 180 | 113 | 365 | 238 |
Derivative revenue | 27 | 2 | (13) | (4) |
West/Services/Other | Capacity revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 0 | 17 | 2 | 47 |
Derivative revenue | 0 | 0 | 0 | 0 |
West/Services/Other | Derivative revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Mark-to-market for economic hedging activities | (7) | (6) | (63) | (60) |
Less: Realized and unrealized ASC 815 revenue | 13 | (8) | (99) | (73) |
West/Services/Other | Other revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2 | 6 | 3 | 17 |
Contract amortization | 4 | 4 | 2 | (4) |
West/Services/Other | Total operating revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,169 | 883 | 3,377 | 2,564 |
West/Services/Other | Other revenue, derivative | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Derivative revenue | (7) | (4) | (23) | (9) |
West/Services/Other | Home | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 429 | 399 | 1,663 | 1,439 |
West/Services/Other | Business | Retail revenue | Operating Segments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | $ 561 | $ 350 | $ 1,405 | $ 887 |
Revenue Recognition - Contract
Revenue Recognition - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Deferred customer acquisition costs | $ 117 | $ 117 | $ 133 | ||
Total accounts receivable, net | 4,061 | 4,061 | 3,245 | ||
Unbilled revenues (included within Accounts receivable, net - Contracts with customers) | 1,464 | 1,464 | 1,574 | ||
Deferred revenues | 213 | 213 | 227 | ||
Deferred revenue from contract with customers | 207 | 224 | |||
Revenue recognized | 159 | $ 162 | 173 | $ 23 | |
Accounts receivable, net - Contracts with customers | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | 3,768 | 3,768 | 3,057 | ||
Accounts receivable, net - Accounted for under topics other than ASC 606 | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | 290 | 290 | 182 | ||
Accounts receivable, net - Affiliate | |||||
Schedule Of Contract Assets And Liabilities [Line Items] | |||||
Total accounts receivable, net | $ 3 | $ 3 | $ 6 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions Narrative (Details) $ in Millions | Jan. 05, 2021 USD ($) state customer province |
Canada | |
Business Acquisition [Line Items] | |
Provinces in which entity operates | province | 8 |
Direct Energy | |
Business Acquisition [Line Items] | |
Customers added (over) | customer | 3,000,000 |
Purchase price | $ 3,625 |
Purchase price adjustment | 99 |
Adjusted purchase price | $ 3,724 |
Direct Energy | U.S. | |
Business Acquisition [Line Items] | |
States in which entity operates | state | 50 |
Acquisitions and Dispositions_2
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 01, 2022 | Feb. 03, 2021 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale | $ 22 | $ 51 | $ 17 | |||
Watson Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Ownership interest | 49% | |||||
Proceeds from sale of investment | $ 59 | |||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Agua Caliente Solar Project | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Percentage of ownership sold | 35% | |||||
Cash consideration | $ 202 | |||||
Gain on sale | 17 | |||||
Cash disposed | $ 7 | |||||
East | Subsequent Event | Forecast | Disposal Group, Disposed of by Sale, Not Discontinued Operations | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from sale of land and related assets | $ 212 | |||||
West/Services/Other | Watson Facility | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain on sale | $ 46 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Estimated Carrying Amounts and Fair Value of Financial Instruments Not Carried at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | $ 8,098 | $ 8,040 |
Carrying Amount | Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 575 | 518 |
Carrying Amount | Other long-term debt, including current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 7,523 | 7,522 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 7,084 | 8,327 |
Fair Value | Convertible Senior Notes | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | 611 | 677 |
Fair Value | Other long-term debt, including current portion | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions | ||
Total long-term debt, including current portion | $ 6,473 | $ 7,650 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets and Liabilities Measured and Recorded at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | $ 19 | $ 32 |
Other trust fund investments (classified within other non-current assets): | ||
U.S. government and federal agency obligations | 1 | 1 |
Measured using net asset value practical expedient: | ||
Total assets | 15,667 | 8,188 |
Derivative liabilities: | ||
Commodity contracts | 9,643 | 4,799 |
Foreign exchange contract | ||
Derivative assets: | ||
Derivative contracts | 30 | 1 |
Derivative liabilities: | ||
Commodity contracts | 1 | |
Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 14,822 | 7,139 |
Derivative liabilities: | ||
Commodity contracts | 9,643 | 4,798 |
Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 17 | 33 |
U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 85 | 112 |
Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 101 | 100 |
Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 37 | 44 |
Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 104 | 122 |
Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 372 | 494 |
Measured using net asset value practical expedient: | ||
Equity securities | 6 | 7 |
Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 2 | 4 |
Equity securities — nuclear trust fund investments | ||
Measured using net asset value practical expedient: | ||
Equity securities | 71 | 99 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 15 |
Other trust fund investments (classified within other non-current assets): | ||
U.S. government and federal agency obligations | 1 | 1 |
Measured using net asset value practical expedient: | ||
Total assets | 3,346 | 1,635 |
Derivative liabilities: | ||
Commodity contracts | 1,228 | 626 |
Level 1 | Foreign exchange contract | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Commodity contracts | 0 | |
Level 1 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 2,873 | 981 |
Derivative liabilities: | ||
Commodity contracts | 1,228 | 626 |
Level 1 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 17 | 33 |
Level 1 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 83 | 111 |
Level 1 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 1 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 372 | 494 |
Level 1 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 19 | 17 |
Other trust fund investments (classified within other non-current assets): | ||
U.S. government and federal agency obligations | 0 | 0 |
Measured using net asset value practical expedient: | ||
Total assets | 11,231 | 5,990 |
Derivative liabilities: | ||
Commodity contracts | 8,084 | 4,009 |
Level 2 | Foreign exchange contract | ||
Derivative assets: | ||
Derivative contracts | 30 | 1 |
Derivative liabilities: | ||
Commodity contracts | 1 | |
Level 2 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 10,936 | 5,701 |
Derivative liabilities: | ||
Commodity contracts | 8,084 | 4,008 |
Level 2 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 2 | 1 |
Level 2 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 101 | 100 |
Level 2 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 37 | 44 |
Level 2 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 104 | 122 |
Level 2 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 2 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 2 | 4 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments in securities (classified within other current and non-current assets) | 0 | 0 |
Other trust fund investments (classified within other non-current assets): | ||
U.S. government and federal agency obligations | 0 | 0 |
Measured using net asset value practical expedient: | ||
Total assets | 1,013 | 457 |
Derivative liabilities: | ||
Commodity contracts | 331 | 164 |
Level 3 | Foreign exchange contract | ||
Derivative assets: | ||
Derivative contracts | 0 | 0 |
Derivative liabilities: | ||
Commodity contracts | 0 | |
Level 3 | Commodity contracts | ||
Derivative assets: | ||
Derivative contracts | 1,013 | 457 |
Derivative liabilities: | ||
Commodity contracts | 331 | 164 |
Level 3 | Cash and cash equivalents | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | U.S. government and federal agency obligations | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Federal agency mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Commercial mortgage-backed securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Corporate debt securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Equity securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | 0 | 0 |
Level 3 | Foreign government fixed income securities | ||
Nuclear trust fund investments: | ||
Nuclear trust fund investments | $ 0 | $ 0 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Reconciliation of Level 3 Financial Instruments (Details) - Level 3 - Derivatives - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | $ 1,403 | $ 574 | $ 293 | $ (16) |
Contracts added from Direct Energy acquisition | 0 | 0 | 0 | (15) |
Total (losses)/gains realized/unrealized — included in earnings | (314) | (175) | 145 | 187 |
Purchases | 60 | 0 | 89 | 78 |
Transfers into Level 3 | (466) | (108) | 155 | 64 |
Transfers out of Level 3 | (1) | 20 | 0 | 13 |
Ending balance | 682 | 311 | 682 | 311 |
(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 period end | $ (240) | $ (237) | $ 294 | $ 184 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Derivative Fair Value Measurements, Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | ||
Total derivative assets valued with prices provided by models and other valuation techniques (as a percent) | 7% | |
Total derivative liabilities valued with prices provided by models and other valuation techniques (as a percent) | 3% | |
Change in credit reserve | $ 11 | $ 11 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Derivative Fair Value Measurements (Details) $ in Millions | Sep. 30, 2022 USD ($) $ / MWh | Dec. 31, 2021 USD ($) $ / MWh |
Liabilities | ||
Commodity contracts | $ 9,643 | $ 4,799 |
Level 3 | ||
Liabilities | ||
Commodity contracts | 331 | 164 |
Commodity contracts | ||
Assets | ||
Derivative assets | 14,822 | 7,139 |
Liabilities | ||
Commodity contracts | 9,643 | 4,798 |
Commodity contracts | Level 3 | ||
Assets | ||
Derivative assets | 1,013 | 457 |
Liabilities | ||
Commodity contracts | 331 | 164 |
Commodity contracts | Level 3 | Natural Gas Contracts | ||
Assets | ||
Derivative assets | 90 | 16 |
Liabilities | ||
Commodity contracts | $ 46 | $ 1 |
Commodity contracts | Level 3 | Natural Gas Contracts | Low | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 3 | 3 |
Commodity contracts | Level 3 | Natural Gas Contracts | High | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 35 | 40 |
Commodity contracts | Level 3 | Natural Gas Contracts | Weighted Average | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 11 | 15 |
Commodity contracts | Level 3 | Power Contracts | ||
Assets | ||
Derivative assets | $ 842 | $ 392 |
Liabilities | ||
Commodity contracts | $ 221 | $ 121 |
Commodity contracts | Level 3 | Power Contracts | Low | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 20 | 3 |
Commodity contracts | Level 3 | Power Contracts | High | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 263 | 212 |
Commodity contracts | Level 3 | Power Contracts | Weighted Average | ||
Fair Value Inputs / Range | ||
Forward Market Price (per MWh) | $ / MWh | 55 | 35 |
Commodity contracts | Level 3 | FTRs | ||
Assets | ||
Derivative assets | $ 81 | $ 49 |
Liabilities | ||
Commodity contracts | $ 64 | $ 42 |
Commodity contracts | Level 3 | FTRs | Low | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | (67) | (122) |
Commodity contracts | Level 3 | FTRs | High | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | 46 | 43 |
Commodity contracts | Level 3 | FTRs | Weighted Average | ||
Fair Value Inputs / Range | ||
Auction Prices (per MWh) | $ / MWh | 1 | 0 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments - Counterparty Credit Risk (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Sep. 30, 2022 | |
Concentration of Credit Risk | ||
Counterparty credit exposure to a portion of the Company's counterparties | $ 3,200 | |
Collateral held (cash and letters of credit) against counterparty credit exposure to a portion of the Company's counterparties | 1,800 | |
Net counterparty credit exposure to a portion of the Company's counterparties | $ 1,400 | |
Company's exposure before collateral expected to roll off (as a percent) | 75% | |
Net exposure (as a percent) | 100% | |
Counterparty credit risk exposure to certain counterparties, threshold (as a percent) | 10% | |
Estimated counterparty credit risk exposure under certain long term agreements for the next 5 years | $ 1,100 | |
Period of estimated counterparty credit risk exposure under certain long term agreements, including California tolling agreements, South Central load obligations and solar power purchase agreements (in years) | 5 years | |
Designated as Hedging Instrument | ||
Concentration of Credit Risk | ||
Counterparty credit exposure to a portion of the Company's counterparties | $ 403 | |
Investment grade | ||
Concentration of Credit Risk | ||
Net exposure (as a percent) | 68% | |
Non-Investment grade/Non-Rated | ||
Concentration of Credit Risk | ||
Net exposure (as a percent) | 32% | |
Utilities, energy merchants, marketers and other | ||
Concentration of Credit Risk | ||
Net exposure (as a percent) | 61% | |
Financial Institutions | ||
Concentration of Credit Risk | ||
Net exposure (as a percent) | 39% |
Nuclear Decommissioning Trust_3
Nuclear Decommissioning Trust Fund - Narrative (Details) | Sep. 30, 2022 |
STP | |
Nuclear decommissioning trust fund | |
Ownership interest as percentage | 44% |
Nuclear Decommissioning Trust_4
Nuclear Decommissioning Trust Fund - Summary of Aggregate Fair Values and Realized Gains and Losses (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Nuclear decommissioning trust fund | ||
Fair Value | $ 789 | $ 1,008 |
Unrealized Gains | 301 | 471 |
Unrealized Losses | 41 | 2 |
Cash and cash equivalents | ||
Nuclear decommissioning trust fund | ||
Fair Value | 17 | 33 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | 0 | 0 |
U.S. government and federal agency obligations | ||
Nuclear decommissioning trust fund | ||
Fair Value | 85 | 112 |
Unrealized Gains | 0 | 5 |
Unrealized Losses | $ 10 | $ 1 |
Weighted-average Maturities (In years) | 11 years | 10 years |
Federal agency mortgage-backed securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 101 | $ 100 |
Unrealized Gains | 0 | 2 |
Unrealized Losses | $ 12 | $ 0 |
Weighted-average Maturities (In years) | 25 years | 25 years |
Commercial mortgage-backed securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 37 | $ 44 |
Unrealized Gains | 0 | 1 |
Unrealized Losses | $ 4 | $ 0 |
Weighted-average Maturities (In years) | 28 years | 27 years |
Corporate debt securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 104 | $ 122 |
Unrealized Gains | 0 | 7 |
Unrealized Losses | $ 15 | $ 1 |
Weighted-average Maturities (In years) | 13 years | 14 years |
Equity securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | $ 443 | $ 593 |
Unrealized Gains | 301 | 456 |
Unrealized Losses | 0 | 0 |
Foreign government fixed income securities | ||
Nuclear decommissioning trust fund | ||
Fair Value | 2 | 4 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | $ 0 | $ 0 |
Weighted-average Maturities (In years) | 18 years | 13 years |
Nuclear Decommissioning Trust_5
Nuclear Decommissioning Trust Fund - Summary of Proceeds from Sales of Available-for-sale Securities and Related Gains and Losses (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Regulated Operations [Abstract] | ||
Realized gains | $ 12 | $ 10 |
Realized losses | (19) | (6) |
Proceeds from sale of securities | $ 363 | $ 424 |
Accounting for Derivative Ins_3
Accounting for Derivative Instruments and Hedging Activities - Net Notional Volume Buy/Sell of Open Derivative Transactions (Details) - Long certificate in Millions, bbl in Millions, T in Millions, MWh in Millions, MMBTU in Millions, $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 USD ($) MMBTU MWh certificate T bbl | Dec. 31, 2021 USD ($) MMBTU MWh certificate T bbl | |
Emissions | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, mass (ton) | 1 | 1 |
Renewable Energy Certificates | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, non-monetary notional amount (in shares) | certificate | 11 | 13 |
Coal | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, mass (ton) | 13 | 19 |
Natural Gas | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MMBTU | 748 | 813 |
Oil | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount (in barrels) | bbl | 0 | 1 |
Power | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, nonmonetary notional amount, energy measure (MMBtu/MW/Day) | MWh | 176 | 185 |
Foreign Exchange | ||
Volumetric Underlying Derivative Transactions | ||
Derivative, notional amount | $ | $ 502 | $ 279 |
Accounting for Derivative Ins_4
Accounting for Derivative Instruments and Hedging Activities - Fair Value within the Derivative Instrument Valuation (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Derivative [Line Items] | ||
Derivative Liabilities | $ 9,643 | $ 4,799 |
Not Designated as Hedging Instrument | ||
Derivative [Line Items] | ||
Derivative Assets | 14,852 | 7,140 |
Derivative Liabilities | 9,643 | 4,799 |
Not Designated as Hedging Instrument | Foreign exchange contracts - current | ||
Derivative [Line Items] | ||
Derivative Assets | 16 | 0 |
Derivative Liabilities | 0 | 1 |
Not Designated as Hedging Instrument | Foreign exchange contracts - long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 14 | 1 |
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Commodity contracts - current | ||
Derivative [Line Items] | ||
Derivative Assets | 9,922 | 4,613 |
Derivative Liabilities | 6,841 | 3,386 |
Not Designated as Hedging Instrument | Commodity contracts - long-term | ||
Derivative [Line Items] | ||
Derivative Assets | 4,900 | 2,526 |
Derivative Liabilities | $ 2,802 | $ 1,412 |
Accounting for Derivative Ins_5
Accounting for Derivative Instruments and Hedging Activities - Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Cash collateral received in support of energy risk management activities | $ (3,134) | $ (845) |
Derivative liabilities | (9,643) | (4,799) |
Cash Collateral Posted | 262 | 291 |
Total Derivative Contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amounts of Recognized Assets / Liabilities | 5,209 | 2,341 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (3,052) | (814) |
Net Amount | 2,157 | 1,527 |
Foreign exchange contract | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 30 | 1 |
Derivative Instruments | 0 | (1) |
Cash collateral received in support of energy risk management activities | 0 | 0 |
Net Amount | 30 | 0 |
Derivative liabilities | (1) | |
Derivative Instruments | 1 | |
Cash Collateral Posted | 0 | |
Net Amount | 0 | |
Gross Amounts of Recognized Assets / Liabilities | 0 | |
Derivative Instruments | 0 | |
Cash Collateral (Held) / Posted | 0 | |
Net Amount | 0 | |
Commodity contracts | ||
Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Derivative assets | 14,822 | 7,139 |
Derivative Instruments | (8,987) | (4,440) |
Cash collateral received in support of energy risk management activities | (3,081) | (831) |
Net Amount | 2,754 | 1,868 |
Derivative liabilities | (9,643) | (4,798) |
Derivative Instruments | 8,987 | 4,440 |
Cash Collateral Posted | 29 | 17 |
Net Amount | (627) | (341) |
Gross Amounts of Recognized Assets / Liabilities | 5,179 | 2,341 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (3,052) | (814) |
Net Amount | $ 2,127 | $ 1,527 |
Accounting for Derivative Ins_6
Accounting for Derivative Instruments and Hedging Activities - Pre-tax Effects of Economic Hedges Not Designated as Cash Flow Hedges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized (gains) on settled positions related to economic hedges | $ (387) | $ (97) | $ (992) | $ (58) |
Reversal of acquired (gain)/loss positions related to economic hedges | (15) | (42) | (27) | 206 |
Net unrealized gains on open positions related to economic hedges | 313 | 1,924 | 3,926 | 3,875 |
Total unrealized mark-to-market (losses)/gains for economic hedging activities | (89) | 1,785 | 2,907 | 4,023 |
Reversal of previously recognized unrealized losses/(gains) on settled positions related to trading activity | 2 | (6) | 11 | (16) |
Net unrealized gains/(losses) on open positions related to trading activity | 7 | 14 | (18) | 18 |
Total unrealized mark-to-market gains/(losses) for trading activity | 9 | 8 | (7) | 2 |
Total unrealized (losses)/gains | (80) | 1,793 | 2,900 | 4,025 |
Credit Risk Related Contingent Features | ||||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 131 | 131 | ||
Additional collateral required | 30 | 30 | ||
Not Designated as Hedging Instrument, Economic Hedge | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | 3,900 | 3,900 | ||
Adequate Assurance Clauses | ||||
Credit Risk Related Contingent Features | ||||
Derivative net liability position, collateral required for contracts with credit rating contingent feature | 1,300 | 1,300 | ||
Commodity contracts | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | (80) | 1,793 | 2,900 | 4,025 |
Commodity contracts | Operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | 42 | 11 | (255) | (97) |
Commodity contracts | Cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | (148) | 1,777 | 3,124 | 4,121 |
Foreign exchange contract | Cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized (losses)/gains | $ 26 | $ 5 | $ 31 | $ 1 |
Impairments (Details)
Impairments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Sep. 30, 2022 | |
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Goodwill impairment loss | $ 130 | $ 130 | ||
East | ||||
Impaired Long-Lived Assets Held and Used [Line Items] | ||||
Property plant and equipment impairment loss | $ 43 | $ 20 | $ 271 | |
Goodwill impairment loss | $ 35 | $ 130 |
Long-term Debt and Finance Le_3
Long-term Debt and Finance Leases - Schedule of Long-term Debt and Finance Leases (Details) $ / shares in Units, $ in Millions | 9 Months Ended | ||
Oct. 31, 2022 $ / shares | Sep. 30, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) | |
Debt Instrument [Line Items] | |||
Finance leases | $ 12 | $ 13 | |
Subtotal long-term debt and finance leases (including current maturities) | 8,112 | 8,113 | |
Less current maturities | (62) | (4) | |
Less debt issuance costs | (74) | (83) | |
Discounts | (2) | (60) | |
Total long-term debt and finance leases | 7,974 | 7,966 | |
Recourse Debt | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | 8,100 | 8,100 | |
Recourse Debt | Senior Notes, due 2027 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 375 | 375 | |
Interest rate, stated percentage | 6.625% | ||
Recourse Debt | Senior Notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 821 | 821 | |
Interest rate, stated percentage | 5.75% | ||
Recourse Debt | Senior Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 733 | 733 | |
Interest rate, stated percentage | 5.25% | ||
Recourse Debt | Senior Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 500 | 500 | |
Interest rate, stated percentage | 3.375% | ||
Recourse Debt | Senior Notes, due 2031 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 1,030 | 1,030 | |
Interest rate, stated percentage | 3.625% | ||
Recourse Debt | Senior Notes, due 2032 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 1,100 | 1,100 | |
Interest rate, stated percentage | 3.875% | ||
Recourse Debt | Convertible Senior Notes due 2048 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 575 | 575 | |
Interest rate, stated percentage | 2.75% | ||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 43.77 | ||
Conversion rate | 0.0228467 | ||
Recourse Debt | Convertible Senior Notes due 2048 | Subsequent Event | |||
Debt Instrument [Line Items] | |||
Convertible notes, conversion price (in usd per share) | $ / shares | $ 43.46 | ||
Conversion rate | 0.0230116 | ||
Recourse Debt | Senior Secured First Lien Notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 600 | 600 | |
Interest rate, stated percentage | 3.75% | ||
Recourse Debt | Senior Secured First Lien Notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 500 | 500 | |
Interest rate, stated percentage | 2% | ||
Recourse Debt | Senior Secured First Lien Notes, due 2027 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 900 | 900 | |
Interest rate, stated percentage | 2.45% | ||
Recourse Debt | Senior Secured First Lien Notes, due 2029 | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 500 | 500 | |
Interest rate, stated percentage | 4.45% | ||
Recourse Debt | Tax-exempt bonds | |||
Debt Instrument [Line Items] | |||
Subtotal long-term debt (including current maturities) | $ 466 | $ 466 | |
Recourse Debt | Tax-exempt bonds | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 1.25% | ||
Recourse Debt | Tax-exempt bonds | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate, stated percentage | 4.75% |
Long-term Debt and Finance Le_4
Long-term Debt and Finance Leases - Senior Notes (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | ||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||||||||
Discount amortization period | 7 years | ||||||||
Adjustment for adoption of new accounting guidance | $ 5,130 | $ 5,300 | $ 5,030 | $ 3,600 | $ 4,078 | $ 2,544 | $ 1,517 | $ 1,680 | |
Additional Paid-In Capital | |||||||||
Debt Instrument [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | 8,450 | 8,442 | 8,433 | 8,531 | 8,525 | 8,519 | 8,513 | 8,517 | |
Retained Earnings | |||||||||
Debt Instrument [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | $ 2,584 | $ 2,600 | $ 2,171 | 464 | $ 971 | $ (567) | $ (1,565) | $ (1,403) | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||||
Debt Instrument [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | (43) | ||||||||
Debt discount | $ 57 | ||||||||
Deferred tax liabilities | 14 | ||||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-In Capital | |||||||||
Debt Instrument [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | (100) | (100) | |||||||
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings | |||||||||
Debt Instrument [Line Items] | |||||||||
Adjustment for adoption of new accounting guidance | $ 57 | $ 57 | |||||||
Recourse Debt | Convertible Senior Notes due 2048 | |||||||||
Debt Instrument [Line Items] | |||||||||
Convertible notes, conversion price (in usd per share) | $ 43.77 |
Long-term Debt and Finance Le_5
Long-term Debt and Finance Leases - Interest Expense in Connection with Convertible Senior Notes, due 2048 (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Amortization of financing costs and debt discounts | $ 17 | $ 30 | ||
Convertible Senior Notes due 2048 | Recourse Debt | ||||
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 4 | $ 4 | 12 | 12 |
Amortization of financing costs and debt discounts | 0 | 4 | 1 | 12 |
Total | $ 4 | $ 8 | $ 13 | $ 24 |
Effective Interest Rate | 0.76% | 1.34% | 2.28% | 3.99% |
Long-term Debt and Finance Le_6
Long-term Debt and Finance Leases - Receivable Securitization and Bilateral Letter of Credit Facilities (Details) - Secured Debt - USD ($) | 9 Months Ended | |||||||
Oct. 13, 2022 | Jul. 26, 2022 | May 27, 2022 | Apr. 29, 2022 | Feb. 09, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Repurchase Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing available | $ 150,000,000 | $ 800,000,000 | $ 75,000,000 | |||||
Commitment fee | $ 0 | |||||||
Outstanding borrowing | 0 | |||||||
Repurchase Facility | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.30% | |||||||
Receivable Facility | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing available | $ 1,000,000,000 | |||||||
Outstanding borrowing | $ 0 | |||||||
Extension of termination, period | 1 year | |||||||
Weighted average interest rate on usage under receivable facility | 0.836% | |||||||
Receivable Facility | Letter of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Letters of credit issued | $ 884,000,000 | |||||||
Bilateral Credit Facilities | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Increase to existing revolving facility | $ 50,000,000 | $ 100,000,000 | ||||||
Bilateral Credit Facilities | Subsequent Event | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Increase to existing revolving facility | $ 50,000,000 | |||||||
Bilateral Credit Facilities | Letter of Credit | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Credit facility borrowing available | $ 675,000,000 | |||||||
Letters of credit issued | $ 592,000,000 |
Investments Accounted for Usi_3
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs - Narrative (Details) - Watson Facility $ in Millions | Jun. 01, 2022 USD ($) |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest | 49% |
Proceeds from sale of investment | $ 59 |
Investments Accounted for Usi_4
Investments Accounted for Using the Equity Method and Variable Interest Entities, or VIEs - Summarized Financial Information (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments Accounted for by the Equity Method | ||
Accounts receivable and Other current assets | $ 18,963 | $ 10,841 |
Current liabilities | 14,366 | 7,915 |
Variable Interest Entity, Primary Beneficiary | ||
Investments Accounted for by the Equity Method | ||
Accounts receivable and Other current assets | 1,269 | 939 |
Current liabilities | 153 | 78 |
Net assets | $ 1,116 | $ 861 |
Changes in Capital Structure -
Changes in Capital Structure - Changes in NRG's Common Stock Issued and Outstanding (Details) - shares | 1 Months Ended | 3 Months Ended | 9 Months Ended | 10 Months Ended | |
Oct. 31, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Oct. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 | |||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Balance as of beginning of period (in shares) | 423,894,539 | 423,547,174 | 423,547,174 | ||
Treasury shares, balance as of beginning of period (in shares) | (191,769,402) | (179,793,275) | (179,793,275) | ||
Outstanding, as of beginning of period (in shares) | 232,125,137 | 243,753,899 | 243,753,899 | ||
Stock issued under ESPP (in shares) | 1,000,000 | ||||
Shares repurchased (in shares) | (12,045,068) | ||||
Balance as of end of period (in shares) | 423,894,539 | ||||
Treasury shares, balance as of end of the period (in shares) | (191,769,402) | ||||
Outstanding, as of end of period (in shares) | 232,125,137 | ||||
Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 347,365 | ||||
Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 68,941 | ||||
Subsequent Event | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares repurchased (in shares) | (1,817,278) | ||||
Outstanding, as of end of period (in shares) | 230,384,205 | 230,384,205 | |||
Subsequent Event | Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 2,462 | ||||
Subsequent Event | Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 73,884 | ||||
Common Stock | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Balance as of beginning of period (in shares) | 423,894,539 | 423,547,174 | 423,547,174 | ||
Shares repurchased (in shares) | 0 | ||||
Balance as of end of period (in shares) | 423,894,539 | ||||
Common Stock | Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 347,365 | ||||
Common Stock | Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 0 | ||||
Common Stock | Subsequent Event | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares repurchased (in shares) | 0 | ||||
Balance as of end of period (in shares) | 423,897,001 | 423,897,001 | |||
Common Stock | Subsequent Event | Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 2,462 | ||||
Common Stock | Subsequent Event | Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 0 | ||||
Treasury | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Treasury shares, balance as of beginning of period (in shares) | (191,769,402) | (179,793,275) | (179,793,275) | ||
Shares repurchased (in shares) | (12,045,068) | ||||
Treasury shares, balance as of end of the period (in shares) | (191,769,402) | ||||
Treasury | Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 0 | ||||
Treasury | Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 68,941 | ||||
Treasury | Subsequent Event | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares repurchased (in shares) | (1,817,278) | ||||
Treasury shares, balance as of end of the period (in shares) | (193,512,796) | (193,512,796) | |||
Treasury | Subsequent Event | Shares issued under LTIPs | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Shares issued under LTIPs (in shares) | 0 | ||||
Treasury | Subsequent Event | Shares issued under ESPP | |||||
Schedule of Stock by Class, Equity [Roll Forward] | |||||
Stock issued under ESPP (in shares) | 73,884 |
Changes in Capital Structure _2
Changes in Capital Structure - Narrative (Details) - USD ($) | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | |
Oct. 31, 2022 | Sep. 30, 2022 | Oct. 31, 2022 | Dec. 31, 2021 | Dec. 06, 2021 | |
Class of Stock [Line Items] | |||||
ESPP, minimum percentage of eligible compensation to purchase shares | 1% | ||||
ESPP, maximum percentage of eligible compensation | 10% | ||||
ESPP, exercise price as percentage of fair value | 95% | ||||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, increase in authorized amount | $ 600,000,000 | ||||
Capital Allocation Plan | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program, authorized amount | $ 1,000,000,000 | ||||
Amounts paid for shares purchased | $ 489,000,000 | $ 44,000,000 | |||
Average price paid per share (in usd per share) | $ 40.07 | ||||
Capital Allocation Plan | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Amounts paid for shares purchased | $ 565,000,000 | ||||
Average price paid per share (in usd per share) | $ 40.28 | ||||
Capital Allocation Plan, Open Market Repurchases | |||||
Class of Stock [Line Items] | |||||
Amounts paid for shares purchased | $ 483,000,000 | ||||
Average price paid per share (in usd per share) | $ 40.04 | ||||
Capital Allocation Plan, Open Market Repurchases | Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Amounts paid for shares purchased | $ 76,000,000 | ||||
Average price paid per share (in usd per share) | $ 41.71 |
Changes in Capital Structure _3
Changes in Capital Structure - Schedule of Repurchases Under Share Repurchase Programs (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended |
Oct. 31, 2022 | Sep. 30, 2022 | Oct. 31, 2022 | Dec. 31, 2021 | |
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 12,045,068 | |||
Accrued stock repurchases | $ 10 | |||
Subsequent Event | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 1,817,278 | |||
Accrued stock repurchases | $ 6 | $ 6 | ||
Capital Allocation Plan, Open Market Repurchases | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 12,045,068 | |||
Average price paid per share (in usd per share) | $ 40.04 | |||
Amounts paid for shares and share equivalents purchased | $ 483 | |||
Capital Allocation Plan, Open Market Repurchases | Subsequent Event | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 1,817,278 | |||
Average price paid per share (in usd per share) | $ 41.71 | |||
Amounts paid for shares and share equivalents purchased | $ 76 | |||
Equivalent Shares in Lieu of Tax Withholding on Equity Compensation Issuances | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 150,448 | |||
Average price paid per share (in usd per share) | $ 42.75 | |||
Amounts paid for shares and share equivalents purchased | $ 6 | |||
Equivalent Shares in Lieu of Tax Withholding on Equity Compensation Issuances | Subsequent Event | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 793 | |||
Average price paid per share (in usd per share) | $ 41.04 | |||
Amounts paid for shares and share equivalents purchased | $ 0 | |||
Capital Allocation Plan | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 12,195,516 | |||
Average price paid per share (in usd per share) | $ 40.07 | |||
Amounts paid for shares and share equivalents purchased | $ 489 | $ 44 | ||
Capital Allocation Plan | Subsequent Event | ||||
Schedule of Capitalization, Equity [Line Items] | ||||
Total number of shares purchased (in shares) | 14,013,587 | |||
Average price paid per share (in usd per share) | $ 40.28 | |||
Amounts paid for shares and share equivalents purchased | $ 565 |
Changes in Capital Structure _4
Changes in Capital Structure - NRG Common Stock Dividends (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||
Oct. 20, 2022 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||||||||
Common stock dividends proposed annual amount (in usd per share) | $ 1.40 | $ 1.30 | |||||||
Dividends per common share (in usd per share) | $ 0.35 | $ 0.35 | $ 0.35 | $ 0.325 | $ 0.325 | $ 0.325 | |||
Subsequent Event | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock dividends declared (in usd per share) | $ 0.35 | ||||||||
Subsequent Event | Forecast | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock dividends proposed annual amount (in usd per share) | $ 1.51 | ||||||||
Annual dividends increase percentage | 8% | ||||||||
Minimum | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, annual dividend growth rate, percentage | 7% | ||||||||
Maximum | |||||||||
Subsequent Event [Line Items] | |||||||||
Common stock, annual dividend growth rate, percentage | 9% |
Income Per Share - Basic and Di
Income Per Share - Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic and diluted income per share: | ||||
Net Income, basic | $ 67 | $ 1,618 | $ 2,316 | $ 2,614 |
Net income, diluted | $ 67 | $ 1,618 | $ 2,316 | $ 2,614 |
Weighted average number of common shares outstanding — basic (in shares) | 235,000 | 245,000 | 238,000 | 245,000 |
Weighted average number of common shares outstanding — diluted (in shares) | 235,000 | 245,000 | 238,000 | 245,000 |
Income per weighted average common share — basic (in usd per share) | $ 0.29 | $ 6.60 | $ 9.73 | $ 10.67 |
Income per weighted average common share — diluted (in usd per share) | $ 0.29 | $ 6.60 | $ 9.73 | $ 10.67 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information | ||||
Revenues | $ 8,510 | $ 6,609 | $ 23,688 | $ 19,943 |
Depreciation and amortization | 145 | 199 | 485 | 569 |
Impairment losses | 43 | 0 | 198 | 306 |
Gain (loss) on sale of assets | 22 | 51 | 17 | |
Equity in (losses)/earnings of unconsolidated affiliates | 11 | 15 | 0 | 23 |
Income/(loss) before income taxes | 83 | 2,163 | 3,055 | 3,454 |
Net income /(loss) | 67 | 1,618 | 2,316 | 2,614 |
Corporate | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Depreciation and amortization | 7 | 7 | 23 | 21 |
Impairment losses | 0 | 0 | 0 | |
Gain (loss) on sale of assets | 0 | (2) | 0 | |
Equity in (losses)/earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Income/(loss) before income taxes | (103) | (208) | (353) | (536) |
Net income /(loss) | (101) | (739) | (1,065) | (1,344) |
Eliminations | ||||
Segment Reporting Information | ||||
Revenues | 12 | 14 | 29 | 15 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Impairment losses | 0 | 0 | 0 | |
Gain (loss) on sale of assets | 0 | 0 | 0 | |
Equity in (losses)/earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Income/(loss) before income taxes | 0 | 0 | 0 | 0 |
Net income /(loss) | 0 | 0 | 0 | 0 |
Texas | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 3,149 | 2,635 | 7,868 | 8,362 |
Depreciation and amortization | 77 | 84 | 230 | 245 |
Impairment losses | 0 | 0 | 0 | |
Gain (loss) on sale of assets | 22 | 10 | 0 | |
Equity in (losses)/earnings of unconsolidated affiliates | (1) | (2) | (2) | (3) |
Income/(loss) before income taxes | (475) | 251 | 1,064 | 600 |
Net income /(loss) | (475) | 251 | 1,064 | 600 |
East | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 4,180 | 3,077 | 12,414 | 9,002 |
Depreciation and amortization | 39 | 87 | 167 | 237 |
Impairment losses | 43 | 198 | 306 | |
Gain (loss) on sale of assets | 0 | 0 | 0 | |
Equity in (losses)/earnings of unconsolidated affiliates | 0 | 0 | 0 | 0 |
Income/(loss) before income taxes | 555 | 1,980 | 2,085 | 3,119 |
Net income /(loss) | 555 | 1,980 | 2,086 | 3,119 |
West/Services/Other | Operating Segments | ||||
Segment Reporting Information | ||||
Revenues | 1,169 | 883 | 3,377 | 2,564 |
Depreciation and amortization | 22 | 21 | 65 | 66 |
Impairment losses | 0 | 0 | 0 | |
Gain (loss) on sale of assets | 0 | 43 | 17 | |
Equity in (losses)/earnings of unconsolidated affiliates | 12 | 17 | 2 | 26 |
Income/(loss) before income taxes | 106 | 140 | 259 | 271 |
Net income /(loss) | $ 88 | $ 126 | $ 231 | $ 239 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Effective Tax Rate | ||||
Income before income taxes | $ 83 | $ 2,163 | $ 3,055 | $ 3,454 |
Income tax expense | $ 16 | $ 545 | $ 739 | $ 840 |
Effective income tax rate | 19.30% | 25.20% | 24.20% | 24.30% |
Uncertain Tax Benefits | ||||
Non-current tax liability for uncertain tax benefits | $ 23 | $ 23 | ||
Uncertain tax benefits, penalties and interest accrued | $ 1 | $ 1 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of NRG's Material Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 13 | $ 11 | $ 39 | $ 36 |
Gladstone | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 1 | 1 | 2 | 2 |
Ivanpah | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | 10 | 9 | 32 | 30 |
Midway-Sunset | ||||
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 2 | $ 1 | $ 5 | $ 4 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 9 Months Ended | ||||
Sep. 30, 2022 counterparty motion | Oct. 31, 2021 facility | Jun. 30, 2019 facility | Apr. 30, 2019 case | Feb. 28, 2019 case | |
Loss Contingencies | |||||
Number of facilities | facility | 2 | ||||
Sierra Club Et Al V. Midwest Generation LLC | |||||
Loss Contingencies | |||||
Number of facilities | facility | 4 | ||||
Direct Energy vs. Stanley, Forte, Schafer and Lane | |||||
Loss Contingencies | |||||
Pending lawsuits | case | 4 | ||||
Direct Energy vs. Burk and Dickson | |||||
Loss Contingencies | |||||
Pending lawsuits | case | 2 | ||||
Winter Storm Uri claims vs. Company as power generator | |||||
Loss Contingencies | |||||
Pending lawsuits | counterparty | 161 | ||||
Winter Storm Uri, claims vs. Company as retail electric provider | |||||
Loss Contingencies | |||||
Pending lawsuits | counterparty | 27 | ||||
Motions filed to dismiss claims | motion | 5 |
Environmental Matters (Details)
Environmental Matters (Details) | Oct. 31, 2021 facility |
Commitments and Contingencies Disclosure [Abstract] | |
Number of plants | 2 |
Uncategorized Items - nrg-20220
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2020-06 [Member] |