Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document and Entity Information [Line Items] | |
Entity Registrant Name | GenOn Energy, Inc. |
Entity Central Index Key | 1,126,294 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Common Stock, Shares Outstanding | 1 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
GenOn Americas Generation | |
Document and Entity Information [Line Items] | |
Entity Registrant Name | GenOn Americas Generation, LCC |
Entity Central Index Key | 1,140,761 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Entity Common Stock, Shares Outstanding | 0 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
GenOn Mid-Atlantic | |
Document and Entity Information [Line Items] | |
Entity Registrant Name | GenOn Mid-Atlantic, LLC |
Entity Central Index Key | 1,138,258 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Entity Common Stock, Shares Outstanding | 0 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | Yes |
Entity Current Reporting Status | Yes |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Operating Revenues | ||||
Total operating revenues | $ 645 | $ 709 | $ 1,956 | $ 2,317 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 52 | 52 | 163 | 172 |
Impairment loss | 0 | 60 | 0 | 60 |
Acquisition-related transaction and integration costs | 0 | 1 | 0 | 3 |
Total operating costs and expenses | 534 | 617 | 1,777 | 2,140 |
Loss on sale of assets | 0 | 0 | 0 | (6) |
Operating Income | 111 | 92 | 179 | 171 |
Other Income/(Expense) | ||||
Other income, net | 0 | 2 | 4 | 4 |
Total other expense | (52) | (46) | (150) | (145) |
Income Before Income Taxes | 59 | 46 | 29 | 26 |
Income tax expense | 1 | 0 | 0 | 2 |
Net Income | 58 | 46 | 29 | 24 |
GenOn Americas Generation | ||||
Operating Revenues | ||||
Total operating revenues | 608 | 642 | 1,848 | 2,233 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 18 | 21 | 55 | 70 |
Total operating costs and expenses | 534 | 576 | 1,752 | 2,073 |
Loss on sale of assets | 0 | 0 | 0 | (6) |
Operating Income | 74 | 66 | 96 | 154 |
Other Income/(Expense) | ||||
Total other expense | (18) | (19) | (53) | (56) |
Income Before Income Taxes | 56 | 47 | 43 | 98 |
Income tax expense | 0 | 0 | 0 | 0 |
Net Income | 56 | 47 | 43 | 98 |
GenOn Mid-Atlantic | ||||
Operating Revenues | ||||
Total operating revenues | 220 | 245 | 692 | 768 |
Operating Costs and Expenses | ||||
Depreciation and amortization | 16 | 18 | 49 | 61 |
Total operating costs and expenses | 172 | 200 | 615 | 673 |
Operating Income | 48 | 45 | 77 | 95 |
Other Income/(Expense) | ||||
Total other expense | (1) | (1) | (3) | (4) |
Income Before Income Taxes | 47 | 44 | 74 | 91 |
Income tax expense | 0 | 0 | 0 | 0 |
Net Income | 47 | 44 | 74 | 91 |
Non-affiliate | ||||
Operating Revenues | ||||
Total operating revenues | 648 | 713 | 1,950 | 2,300 |
Operating Costs and Expenses | ||||
Cost of operations | 361 | 385 | 1,269 | 1,388 |
Selling, general and administrative | 0 | 19 | 0 | 60 |
Other Income/(Expense) | ||||
Interest expense | (49) | (46) | (146) | (140) |
Non-affiliate | GenOn Americas Generation | ||||
Operating Revenues | ||||
Total operating revenues | 587 | 667 | 1,808 | 2,123 |
Operating Costs and Expenses | ||||
Cost of operations | 181 | 198 | 711 | 753 |
Selling, general and administrative | 0 | 2 | 0 | 7 |
Other Income/(Expense) | ||||
Interest expense | (17) | (17) | (49) | (50) |
Non-affiliate | GenOn Mid-Atlantic | ||||
Operating Revenues | ||||
Total operating revenues | 4 | 46 | 8 | (110) |
Operating Costs and Expenses | ||||
Cost of operations | 121 | 141 | 420 | 535 |
Other Income/(Expense) | ||||
Interest expense | 0 | 0 | (1) | (1) |
Affiliate | ||||
Operating Revenues | ||||
Total operating revenues | (3) | (4) | 6 | 17 |
Operating Costs and Expenses | ||||
Cost of operations | 78 | 69 | 210 | 367 |
Selling, general and administrative | 43 | 31 | 135 | 90 |
Other Income/(Expense) | ||||
Interest expense | (3) | (2) | (8) | (9) |
Affiliate | GenOn Americas Generation | ||||
Operating Revenues | ||||
Total operating revenues | 21 | (25) | 40 | 110 |
Operating Costs and Expenses | ||||
Cost of operations | 315 | 336 | 925 | 1,185 |
Selling, general and administrative | 20 | 19 | 61 | 58 |
Other Income/(Expense) | ||||
Interest expense | (1) | (2) | (4) | (6) |
Affiliate | GenOn Mid-Atlantic | ||||
Operating Revenues | ||||
Total operating revenues | 216 | 199 | 684 | 878 |
Operating Costs and Expenses | ||||
Cost of operations | 20 | 26 | 102 | 29 |
Selling, general and administrative | 15 | 15 | 44 | 48 |
Other Income/(Expense) | ||||
Interest expense | $ (1) | $ (1) | $ (2) | $ (3) |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Income | $ 58 | $ 46 | $ 29 | $ 24 |
Other comprehensive income net of reclassifications, net of tax of $0: | ||||
Defined benefit plans | 0 | (5) | (2) | 3 |
Other comprehensive (loss)/income | (5) | (2) | 3 | |
Comprehensive Income | $ 58 | $ 41 | $ 27 | $ 27 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) Parenthetical - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | $ 0 | $ 0 | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 1,093 | $ 920 |
Funds deposited by counterparties | 40 | 54 |
Accounts receivable — trade | 110 | 120 |
Inventory | 426 | 507 |
Cash collateral paid in support of energy risk management activities | 73 | 38 |
Prepayments and other current assets | 156 | 150 |
Total current assets | 2,289 | 2,391 |
Property, Plant and Equipment | ||
Property, plant and equipment, net of accumulated depreciation of $597 and $436 | 3,052 | 3,045 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $50 and $66 | 73 | 72 |
Other non-current assets | 238 | 201 |
Total other assets | 557 | 478 |
Total Assets | 5,898 | 5,914 |
Current Liabilities | ||
Current portion of long-term debt and capital leases | 6 | 10 |
Cash collateral received in support of energy risk management activities | 40 | 54 |
Accrued expenses and other current liabilities | 279 | 238 |
Total current liabilities | 865 | 868 |
Other Liabilities | ||
Long-term debt and capital leases | 3,073 | 3,120 |
Out-of-market contracts | 912 | 969 |
Other non-current liabilities | 469 | 484 |
Total non-current liabilities | 4,605 | 4,645 |
Total Liabilities | 5,470 | 5,513 |
Stockholder's Equity | ||
Common stock: $0.001 par value, 1 share authorized and issued at September 30, 2015 and December 31, 2014 | 0 | 0 |
Additional paid-in capital | 325 | 325 |
Retained earnings | 107 | 78 |
Accumulated other comprehensive loss | (4) | (2) |
Total Stockholder's Equity | 428 | 401 |
Total Liabilities and Stockholder's Equity | 5,898 | 5,914 |
GenOn Mid-Atlantic | ||
Current Assets | ||
Cash and cash equivalents | 291 | 157 |
Inventory | 158 | 166 |
Prepayments and other current assets | 75 | 80 |
Total current assets | 737 | 654 |
Property, Plant and Equipment | ||
Property, plant and equipment, net of accumulated depreciation of $597 and $436 | 928 | 958 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $50 and $66 | 13 | 10 |
Other non-current assets | 116 | 87 |
Total other assets | 257 | 238 |
Total Assets | 1,922 | 1,850 |
Current Liabilities | ||
Current portion of long-term debt and capital leases | 1 | 5 |
Accrued expenses and other current liabilities | 78 | 53 |
Total current liabilities | 229 | 227 |
Other Liabilities | ||
Out-of-market contracts | 527 | 547 |
Other non-current liabilities | 49 | 60 |
Total non-current liabilities | 625 | 629 |
Total Liabilities | 854 | 856 |
Stockholder's Equity | ||
Total Liabilities and Stockholder's Equity | 1,922 | 1,850 |
Member's Equity | ||
Member’s interest | 1,068 | 994 |
GenOn Americas Generation | ||
Current Assets | ||
Cash and cash equivalents | 248 | 103 |
Funds deposited by counterparties | 40 | 54 |
Accounts receivable — trade | 99 | 106 |
Inventory | 253 | 318 |
Cash collateral paid in support of energy risk management activities | 64 | 29 |
Prepayments and other current assets | 96 | 90 |
Total current assets | 1,759 | 1,883 |
Property, Plant and Equipment | ||
Property, plant and equipment, net of accumulated depreciation of $597 and $436 | 1,111 | 1,110 |
Other Assets | ||
Intangible assets, net of accumulated amortization of $50 and $66 | 73 | 72 |
Other non-current assets | 122 | 111 |
Total other assets | 538 | 439 |
Total Assets | 3,408 | 3,432 |
Current Liabilities | ||
Current portion of long-term debt and capital leases | 1 | 5 |
Cash collateral received in support of energy risk management activities | 40 | 54 |
Accrued expenses and other current liabilities | 135 | 93 |
Total current liabilities | 736 | 899 |
Other Liabilities | ||
Long-term debt and capital leases | 922 | 929 |
Out-of-market contracts | 527 | 547 |
Other non-current liabilities | 105 | 106 |
Total non-current liabilities | 1,813 | 1,717 |
Total Liabilities | 2,549 | 2,616 |
Stockholder's Equity | ||
Total Liabilities and Stockholder's Equity | 3,408 | 3,432 |
Member's Equity | ||
Member’s interest | 859 | 816 |
Non-affiliate | ||
Current Assets | ||
Derivative instruments | 371 | 591 |
Other Assets | ||
Derivative instruments | 240 | 195 |
Current Liabilities | ||
Accounts payable | 132 | 135 |
Derivative instruments | 306 | 382 |
Other Liabilities | ||
Derivative instruments | 139 | 69 |
Non-affiliate | GenOn Mid-Atlantic | ||
Current Assets | ||
Accounts receivable — trade | 3 | 10 |
Derivative instruments | 29 | 100 |
Current Liabilities | ||
Accounts payable | 20 | 27 |
Derivative instruments | 0 | 1 |
Non-affiliate | GenOn Americas Generation | ||
Current Assets | ||
Derivative instruments | 371 | 591 |
Other Assets | ||
Derivative instruments | 240 | 196 |
Current Liabilities | ||
Accounts payable | 72 | 50 |
Derivative instruments | 306 | 382 |
Other Liabilities | ||
Derivative instruments | 139 | 69 |
Affiliate | ||
Current Assets | ||
Derivative instruments | 20 | 11 |
Other Assets | ||
Derivative instruments | 6 | 10 |
Current Liabilities | ||
Accounts payable | 82 | 14 |
Derivative instruments | 20 | 35 |
Other Liabilities | ||
Derivative instruments | 12 | 3 |
Affiliate | GenOn Mid-Atlantic | ||
Current Assets | ||
Derivative instruments | 181 | 141 |
Other Assets | ||
Derivative instruments | 128 | 141 |
Current Liabilities | ||
Accounts payable | 2 | 14 |
Derivative instruments | 128 | 127 |
Other Liabilities | ||
Derivative instruments | 49 | 22 |
Affiliate | GenOn Americas Generation | ||
Current Assets | ||
Due from Affiliate, Current | 57 | 0 |
Notes Receivable, Related Parties, Current | 331 | 331 |
Derivative instruments | 200 | 261 |
Other Assets | ||
Derivative instruments | 103 | 60 |
Current Liabilities | ||
Accounts payable | 0 | 23 |
Derivative instruments | 182 | 292 |
Other Liabilities | ||
Derivative instruments | $ 120 | $ 66 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Property, plant and equipment, accumulated depreciation | $ 597 | $ 436 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 1 | 1 |
Common stock, shares issued (in shares) | 1 | 1 |
Intangible assets, accumulated amortization | $ 50 | $ 66 |
GenOn Americas Generation | ||
Property, plant and equipment, accumulated depreciation | 225 | 170 |
Intangible assets, accumulated amortization | 50 | 66 |
GenOn Mid-Atlantic | ||
Property, plant and equipment, accumulated depreciation | 184 | 135 |
Intangible assets, accumulated amortization | $ 0 | $ 0 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net Income | $ 29 | $ 24 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 163 | 172 |
Amortization of financing costs and debt discount/premiums | (43) | (43) |
Amortization of out-of-market contracts and emission allowances | (23) | (17) |
Loss on sale of asset | 0 | 6 |
Impairment loss | 0 | 60 |
Changes in derivative instruments | 158 | 323 |
Changes in collateral deposits supporting energy risk management activities | 35 | 73 |
Changes in other working capital | 103 | (173) |
Net Cash Provided by Operating Activities | 352 | 279 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (175) | (125) |
Proceeds from sale of assets, net of cash disposed of | 0 | 50 |
Payments for (Proceeds from) Other Investing Activities | 0 | 5 |
Net Cash Used by Investing Activities | (175) | (70) |
Cash Flows from Financing Activities | ||
Payments for short and long-term debt | (4) | (1) |
Net Cash Used by Financing Activities | (4) | (1) |
Net Increase in Cash and Cash Equivalents | 173 | 208 |
Cash and Cash Equivalents at Beginning of Period | 920 | 760 |
Cash and Cash Equivalents at Beginning of Period | 1,093 | 968 |
GenOn Americas Generation | ||
Cash Flows from Operating Activities | ||
Net Income | 43 | 98 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 55 | 70 |
Amortization of Debt Discount (Premium) | (7) | (7) |
Amortization of out-of-market contracts and emission allowances | 14 | 10 |
Loss on sale of asset | 0 | 6 |
Changes in derivative instruments | 132 | 258 |
Changes in collateral deposits supporting energy risk management activities | 35 | 131 |
Changes in other working capital | 0 | 49 |
Net Cash Provided by Operating Activities | 202 | 353 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (53) | (25) |
Proceeds from sale of assets, net of cash disposed of | 0 | 50 |
Net Cash Used by Investing Activities | (53) | (7) |
Cash Flows from Financing Activities | ||
Payments for short and long-term debt | (4) | 0 |
Net Cash Used by Financing Activities | (4) | (283) |
Net Increase in Cash and Cash Equivalents | 145 | 63 |
Cash and Cash Equivalents at Beginning of Period | 103 | 63 |
Cash and Cash Equivalents at Beginning of Period | 248 | 126 |
GenOn Mid-Atlantic | ||
Cash Flows from Operating Activities | ||
Net Income | 74 | 91 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 49 | 61 |
Amortization of out-of-market contracts and emission allowances | (20) | (12) |
Changes in derivative instruments | 71 | 259 |
Changes in other working capital | (10) | (3) |
Net Cash Provided by Operating Activities | 164 | 396 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (26) | (11) |
Net Cash Used by Investing Activities | (26) | (11) |
Cash Flows from Financing Activities | ||
Payments for short and long-term debt | (4) | 0 |
Net Cash Used by Financing Activities | (4) | (320) |
Net Increase in Cash and Cash Equivalents | 134 | 65 |
Cash and Cash Equivalents at Beginning of Period | 157 | 64 |
Cash and Cash Equivalents at Beginning of Period | 291 | 129 |
Affiliate | GenOn Americas Generation | ||
Cash Flows from Investing Activities: | ||
Decrease in note receivable — affiliate | 0 | (32) |
Cash Flows from Financing Activities | ||
Proceeds from Contributions from Affiliates | 0 | 37 |
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | 0 | 320 |
Affiliate | GenOn Mid-Atlantic | ||
Cash Flows from Financing Activities | ||
Distribution Made to Limited Liability Company (LLC) Member, Cash Distributions Paid | $ 0 | $ 320 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Basis of Presentation (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) GenOn Energy, Inc., a wholly owned subsidiary of NRG, is a wholesale power generator engaged in the ownership and operation of power generation facilities, with approximately 17,752 MW of net electric generating capacity located in the U.S. In the first nine months of 2015, GenOn mothballed Osceola and Shawville, retired Coolwater, Glen Gardner, Gilbert and Werner, and restored Unit 2 at Bowline to full capacity following the boiler restoration completed in June 2015, resulting in a net decrease in generation capacity of 1,777 MW from December 31, 2014. Shawville is planned to return to service with a natural gas addition during the summer of 2016. GenOn Americas Generation is a wholesale power generator with approximately 7,985 MW of net electric generating capacity located, in many cases, near major metropolitan areas. During June 2015, GenOn Americas Generation restored Unit 2 at Bowline to full capacity, as discussed above, resulting in an increase of 389 MW from December 31, 2014. GenOn Americas Generation's electric generating capacity is part of the 17,752 MW of net electric generating capacity of GenOn. GenOn Mid-Atlantic operates and owns or leases 4,683 MW of net electric generating capacity in Maryland near Washington, D.C. GenOn Mid-Atlantic’s electric generating capacity is part of the 7,985 MW of net electric generating capacity of GenOn Americas Generation. GenOn Mid-Atlantic’s generating facilities serve the Eastern PJM markets. GenOn Americas Generation and GenOn Mid-Atlantic are Delaware limited liability companies and indirect wholly owned subsidiaries of GenOn. GenOn Mid-Atlantic is an indirect wholly owned subsidiary of GenOn Americas Generation. The Registrants sell power from their generation portfolio, offer capacity or similar products to retail electric providers and others, and provide ancillary services to support system reliability. This is a combined quarterly report of the Registrants for the quarter ended September 30, 2015 . The notes to the condensed consolidated financial statements apply to the Registrants as indicated parenthetically next to each corresponding disclosure. 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 U.S. GAAP 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 Registrants' financial statements in the Registrants' 2014 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 Registrants' consolidated financial positions as of September 30, 2015 , and the results of operations, comprehensive income/(loss) and cash flows for the three and nine months ended September 30, 2015 , and 2014 . Use of Estimates The preparation of financial statements in conformity with U.S. 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 year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) | Summary of Significant Accounting Policies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Oil Inventory Adjustment (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) During the nine months ended September 30, 2015 , certain oil inventory was identified as unusable and the related value of $16 million was written off to cost of operations in the statement of operations. Impairment Loss (GenOn) During the three months ended September 30, 2014, GenOn determined that it would mothball the 463 MW natural gas-fired Osceola facility in Saint Cloud, Florida. GenOn considered this to be an indicator of impairment and performed an impairment test for these assets under ASC 360, Property, Plant and Equipment . The carrying amount of the assets was higher than the future net cash flows expected to be generated by the assets and as a result, the assets were considered to be impaired. GenOn measured the impairment loss as the difference between the carrying amount and the fair value of the assets. Due to the location of the facility, it was determined that the best indicator of fair value is the market value of the combustion turbines. GenOn recorded an impairment loss of approximately $60 million during the three months ended September 30, 2014, which represents the excess of the carrying value over the fair market value, and mothballed the facility effective January 1, 2015. Recent Accounting Developments (GenOn, GenOn Americas Generation, and GenOn Mid-Atlantic) ASU 2015-02 — In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis , or ASU No. 2015-02. The amendments of ASU No. 2015-02 were issued in an effort to minimize situations under previously existing guidance in which a reporting entity was required to consolidate another legal entity in which that reporting entity did not have: (1) the ability through contractual rights to act primarily on its own behalf; (2) ownership of the majority of the legal entity's voting rights; or (3) the exposure to a majority of the legal entity's economic benefits. ASU No. 2015-02 affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The guidance in ASU No. 2015-02 is effective for periods beginning after December 15, 2015. Early adoption is permitted. The Registrants adopted the standard effective January 1, 2015 and the adoption of this standard did not impact the Registrants' results of operations, cash flows or financial position. ASU 2014-16 — In November 2014, the FASB issued ASU No. 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity , or ASU No. 2014-16. The amendments of ASU No. 2014-16 clarify how U.S. GAAP should be applied in determining whether the nature of a host contract is more akin to debt or equity and in evaluating whether the economic characteristics and risks of an embedded feature are "clearly and closely related" to its host contract. The guidance in ASU No. 2014-16 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Registrants adopted the standard effective January 1, 2015 and the adoption of this standard did not impact the Registrants' results of operations, cash flows or financial position. ASU 2014-09 — In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) , or ASU No. 2014-09. The amendments of ASU No. 2014-09 complete the joint effort between the FASB and the International Accounting Standards Board, or IASB, to develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards, or IFRS, and to improve financial reporting. The guidance in ASU No. 2014-09 provides that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for the goods or services provided and establishes the following steps to be applied by an entity: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies the performance obligation. In August 2015, the FASB issued ASU 2015-14, which formally deferred the effective date by one year to make the guidance of ASU No. 2014-09 effective for annual reporting periods beginning after December 15, 2017, including interim periods therein. Early adoption is permitted, but not prior to the original effective date, which was for annual reporting periods beginning after December 15, 2016. The Registrants are currently evaluating the impact of the standard on the Registrants' results of operations, cash flows and financial position. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Fair Value of Financial Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 4 , Fair Value of Financial Instruments , to the Registrants' 2014 Form 10-K. For cash and cash equivalents, funds deposited by counterparties, accounts receivable, note receivable — affiliate, accounts payable, accrued liabilities, restricted cash, and cash collateral paid and received in support of energy risk management activities, the carrying amounts approximate fair value because of the short-term maturity of those instruments and are classified as Level 1 within the fair value hierarchy. The estimated carrying amounts and fair values of GenOn and GenOn Americas Generation’s debt are as follows: GenOn As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion $ 3,076 $ 2,566 $ 3,122 $ 2,706 The fair value of long-term debt that is estimated using reported market prices for instruments that are publicly traded is classified as Level 2 within the fair value hierarchy. The fair value of non-publicly traded debt is based on the income approach valuation technique using current interest rates for similar instruments with equivalent credit quality and is classified as Level 3 within the fair value hierarchy. GenOn Americas Generation As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion $ 922 $ 694 $ 929 $ 720 The fair value of long-term debt is estimated using reported market prices for instruments that are publicly traded and is classified as Level 2 within the fair value hierarchy. Recurring Fair Value Measurements Derivative assets and liabilities are carried at fair market value. Realized and unrealized gains and losses included in earnings that are related to energy derivatives are recorded in operating revenues and cost of operations. GenOn The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn’s consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 190 $ 437 $ 10 $ 637 Derivative liabilities: Commodity contracts $ 130 $ 337 $ 10 $ 477 Other assets (b) $ 14 $ — $ — $ 14 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 179 $ 582 $ 46 $ 807 Derivative liabilities: Commodity contracts $ 105 $ 371 $ 13 $ 489 Other assets (b) $ 21 $ — $ — $ 21 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. The following table reconciles, for the three and nine months ended September 30, 2015 , and 2014 , the beginning and ending balances for derivatives that are recognized at fair value in GenOn's consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 14 $ (44 ) $ 33 $ (4 ) Total (losses)/gains included in earnings — realized/unrealized (18 ) 1 (44 ) 3 Purchases (2 ) 22 5 (19 ) Transfers into Level 3 (b) — 1 — — Transfers out of Level 3 (b) 6 — 6 — Ending balance $ — $ (20 ) $ — $ (20 ) Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (14 ) $ — $ (20 ) $ (1 ) (a) Consists of derivative assets and liabilities, net. (b) Transfers in/out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. GenOn Americas Generation The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Americas Generation's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 255 $ 640 $ 19 $ 914 Derivative liabilities: Commodity contracts $ 148 $ 581 $ 18 $ 747 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 208 $ 848 $ 52 $ 1,108 Derivative liabilities: Commodity contracts $ 137 $ 640 $ 32 $ 809 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . The following table reconciles, for the three and nine months ended September 30, 2015 , and 2014 , the beginning and ending balances for GenOn Americas Generation's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 12 $ (41 ) $ 20 $ (1 ) Total (losses)/gains included in earnings — realized/unrealized (16 ) 1 (26 ) 1 Purchases (1 ) 22 1 (18 ) Transfers out of Level 3 (b) 6 — 6 — Ending balance $ 1 $ (18 ) $ 1 $ (18 ) (Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (13 ) $ 1 $ (11 ) $ — (a) Consists of derivative assets and liabilities, net. (b) Transfers out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. GenOn Mid-Atlantic The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Mid-Atlantic's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 168 $ 169 $ 1 $ 338 Derivative liabilities: Commodity contracts $ 61 $ 116 $ — $ 177 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 145 $ 211 $ 26 $ 382 Derivative liabilities: Commodity contracts $ 71 $ 73 $ 6 $ 150 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . The following table reconciles, for the three and nine months ended September 30, 2015 , and 2014 , the beginning and ending balances for GenOn Mid-Atlantic's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 13 $ (41 ) $ 20 $ — Total (losses)/gains included in earnings — realized/unrealized (15 ) 1 (25 ) — Purchases (3 ) 22 — (18 ) Transfers out of Level 3 (b) 6 — 6 — Ending balance $ 1 $ (18 ) $ 1 $ (18 ) (Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (13 ) $ 1 $ (11 ) $ — (a) Consists of derivative assets and liabilities, net. (b) Transfers out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. Derivative Fair Value Measurements A portion of the Registrants' contracts are exchange-traded contracts with readily available quoted market prices. A majority of the Registrants' 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 for the whole term or for certain delivery months. These contracts are valued using various valuation techniques including but not limited to internal models that apply fundamental analysis of the market and corroboration with similar markets. As of September 30, 2015 , contracts valued with prices provided by models and other valuation techniques make up 2% of GenOn's derivative assets and 2% of GenOn's derivative liabilities, 2% of GenOn Americas Generation’s derivative assets and 2% of GenOn Americas Generation's derivative liabilities and less than 1% of GenOn Mid-Atlantic’s derivative assets and less than 1% of GenOn Mid-Atlantic's derivative liabilities. The Registrants' significant positions classified as Level 3 include physical and financial power and physical coal executed in illiquid markets as well as financial transmission rights, or FTRs. The significant unobservable inputs used in developing fair value include illiquid power and coal 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, the Registrants use 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 Registrants' Level 3 positions as of September 30, 2015 and December 31, 2014 : GenOn Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 6 $ — Discounted Cash Flow Forward Market Price (per MWh) $ 12 $ 56 $ 30 Coal Contracts — 10 Discounted Cash Flow Forward Market Price (per ton) 46 49 47 FTRs 4 — Discounted Cash Flow Auction Prices (per MWh) (1 ) 4 1 $ 10 $ 10 Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 39 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 18 $ 68 $ 46 Coal Contracts 3 1 Discounted Cash Flow Forward Market Price (per ton) 53 56 54 FTRs 4 7 Discounted Cash Flow Auction Prices (per MWh) (10 ) 3 (1 ) $ 46 $ 13 GenOn Americas Generation Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 5 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 12 $ 56 $ 30 Coal Contracts 10 9 Discounted Cash Flow Forward Market Price (per ton) 46 49 47 FTRs 4 4 Discounted Cash Flow Auction Prices (per MWh) — 1 — $ 19 $ 18 Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 39 $ 18 Discounted Cash Flow Forward Market Price (per MWh) $ 18 $ 68 $ 46 Coal Contracts 3 3 Discounted Cash Flow Forward Market Price (per ton) 53 56 54 FTRs 10 11 Discounted Cash Flow Auction Prices (per MWh) (1 ) 1 — $ 52 $ 32 GenOn Mid-Atlantic Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) FTRs 1 — Discounted Cash Flow Auction Prices (per MWh) — 1 — $ 1 $ — Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 26 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 24 $ 68 $ 47 FTRs — 1 Discounted Cash Flow Auction Prices (per MWh) (1 ) 1 — $ 26 $ 6 The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2015 , and December 31, 2014 : Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power/Coal Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Power/Coal Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) The fair value of each contract is discounted using a risk free interest rate. In addition, the Registrants apply a non-performance/credit reserve to reflect credit risk which is calculated based on published default probabilities. The Registrants' (non-performance)/credit reserves were as follows: As of September 30, 2015 As of December 31, 2014 (In millions) GenOn $ (1 ) $ — GenOn Americas Generation (1 ) — GenOn Mid-Atlantic 3 2 Concentration of Credit Risk In addition to the credit risk discussion as disclosed in Note 2 , Summary of Significant Accounting Policies , to the Registrants' 2014 Form 10-K, the following is a discussion of the concentration of credit risk for the Registrants’ financial instruments. 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. The Registrants are exposed to counterparty credit risk through various activities including wholesale sales and fuel purchases. Counterparty Credit Risk The Registrants' counterparty credit risk policies are disclosed in their 2014 Form 10-K. As of September 30, 2015 , GenOn's counterparty credit exposure was $337 million and GenOn held $30 million of collateral (cash and letters of credit) against those positions, resulting in a net exposure of $307 million . Approximately 71% of GenOn's exposure before collateral is expected to roll off by the end of 2016. As of September 30, 2015 , GenOn Americas Generation’s counterparty credit exposure was $329 million and GenOn Americas Generation held $30 million of collateral (cash and letters of credit) against those positions, resulting in a net exposure of $299 million . Approximately 72% of GenOn Americas Generation’s exposure before collateral is expected to roll off by the end of 2016. As of September 30, 2015 , GenOn Mid-Atlantic’s counterparty credit exposure was $29 million and GenOn Mid-Atlantic held no collateral (cash and letters or credit) against those positions, resulting in a net exposure of $29 million . 100% of GenOn Mid-Atlantic’s exposure before collateral is expected to roll off by the end of 2016. The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for the Registrants with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market, NPNS and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a) (% of Total) Category GenOn GenOn Americas Generation GenOn Mid-Atlantic Financial institutions 74 % 76 % 100 % Utilities, energy merchants, marketers and other 8 5 — ISOs 18 19 — Total as of September 30, 2015 100 % 100 % 100 % Net Exposure (a) (% of Total) Category GenOn GenOn Americas Generation GenOn Mid-Atlantic Investment grade 100 % 100 % 100 % Total as of September 30, 2015 100 % 100 % 100 % (a) Counterparty credit exposure excludes transportation contracts because of the unavailability of market prices. The Registrants have counterparty credit risk exposure to certain counterparties, each of which represent more than 10% of their respective total net exposure discussed above. The aggregate of such counterparties' exposure was $249 million , $249 million and $29 million for GenOn, GenOn Americas Generation and GenOn Mid-Atlantic, respectively. Changes in hedge positions and market prices will affect credit exposure and counterparty concentration. Given the credit quality, diversification and term of the exposure in the portfolio, the Registrants do not anticipate a material impact on their financial position or results of operations from nonperformance by any of their counterparties. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Accounting for Derivative Instruments and Hedging Activities (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 5 , Accounting for Derivative Instruments and Hedging Activities , to the 2014 Form 10-K. Energy-Related Commodities (GenOn) As of September 30, 2015 , GenOn had energy-related derivative financial instruments extending through 2019. Volumetric Underlying Derivative Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) The following table summarizes the net notional volume buy/(sell) of the Registrants’ open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception as of September 30, 2015 , and December 31, 2014 . Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. GenOn GenOn Americas Generation GenOn Mid-Atlantic Total Volume Total Volume Total Volume As of September 30, 2015 As of December 31, 2014 As of September 30, 2015 As of December 31, 2014 As of September 30, 2015 As of December 31, 2014 Commodity Units (In millions) Coal Short Ton 7 8 4 5 4 5 Natural Gas MMBtu 122 (21) (12 ) (74) (22 ) (79) Power MWh (48 ) (36) (22 ) (16) (20 ) (15) The decrease in the natural gas position was the result of buying natural gas to convert fixed price natural gas hedges into fixed price power hedges, as well as the settlement of positions during the period. Fair Value of Derivative Instruments (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) The following tables summarize the fair value within the derivative instrument valuation on the balance sheet: GenOn Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges: Commodity contracts current $ 391 $ 602 $ 326 $ 417 Commodity contracts long-term 246 205 151 72 Total Derivatives Not Designated as Cash Flow Hedges $ 637 $ 807 $ 477 $ 489 GenOn Americas Generation Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges : Commodity contracts current $ 571 $ 852 $ 488 $ 674 Commodity contracts long-term 343 256 259 135 Total Derivatives Not Designated as Cash Flow Hedges $ 914 $ 1,108 $ 747 $ 809 GenOn Mid-Atlantic Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges : Commodity contracts current $ 210 $ 241 $ 128 $ 128 Commodity contracts long-term 128 141 49 22 Total Derivatives Not Designated as Cash Flow Hedges $ 338 $ 382 $ 177 $ 150 The Registrants have elected to present derivative assets and liabilities on the balance sheet on a trade-by-trade basis and do not offset amounts at the counterparty master agreement level. In addition, collateral received or paid on the Registrants' derivative assets or liabilities are recorded on a separate line item on the balance sheet. The following tables summarize the offsetting of derivatives by counterparty master agreement level and collateral received or paid: GenOn Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 611 $ (366 ) $ (40 ) $ 205 Derivative assets - affiliate 26 (26 ) — — Derivative liabilities (445 ) 366 — (79 ) Derivative liabilities - affiliate (32 ) 26 6 — Total derivative instruments $ 160 $ — $ (34 ) $ 126 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 786 $ (425 ) $ (54 ) $ 307 Derivative assets - affiliate 21 (21 ) — — Derivative liabilities (451 ) 425 — (26 ) Derivative liabilities - affiliate (38 ) 21 17 — Total derivative instruments $ 318 $ — $ (37 ) $ 281 GenOn Americas Generation Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 611 $ (366 ) $ (40 ) $ 205 Derivative assets - affiliate 303 (302 ) — 1 Derivative liabilities (445 ) 366 — (79 ) Derivative liabilities - affiliate (302 ) 302 — — Total derivative instruments $ 167 $ — $ (40 ) $ 127 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 787 $ (425 ) $ (54 ) $ 308 Derivative assets - affiliate 321 (321 ) — — Derivative liabilities (451 ) 425 — (26 ) Derivative liabilities - affiliate (358 ) 321 17 (20 ) Total derivative instruments $ 299 $ — $ (37 ) $ 262 GenOn Mid-Atlantic Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 29 $ — $ — $ 29 Derivative assets - affiliate 309 (177 ) — 132 Derivative liabilities - affiliate (177 ) 177 — — Total derivative instruments $ 161 $ — $ — $ 161 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 100 $ — $ — $ 100 Derivative assets - affiliate 282 (149 ) — 133 Derivative liabilities (1 ) — — (1 ) Derivative liabilities - affiliate (149 ) 149 — — Total derivative instruments $ 232 $ — $ — $ 232 Impact of Derivative Instruments on the Statements of Operations (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Unrealized gains and losses associated with changes in the fair value of derivative instruments not accounted for as cash flow hedges are reflected in current period earnings. The following tables summarize the pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the Registrants’ statements of operations. These amounts are included within operating revenues and cost of operations. GenOn Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (19 ) $ (59 ) $ (146 ) $ (210 ) Net unrealized (losses)/gains on open positions related to economic hedges (6 ) 57 (12 ) (112 ) Total unrealized mark-to-market losses for economic hedging activities (25 ) (2 ) (158 ) (322 ) Reversal of previously recognized unrealized gains on settled positions related to trading activity — — — (1 ) Total unrealized mark-to-market losses for trading activity — — — (1 ) Total unrealized losses $ (25 ) $ (2 ) $ (158 ) $ (323 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (17 ) $ 3 $ (91 ) $ (341 ) Cost of operations (8 ) (5 ) (67 ) 18 Total impact to statements of operations $ (25 ) $ (2 ) $ (158 ) $ (323 ) GenOn Americas Generation Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (23 ) $ (65 ) $ (153 ) $ (201 ) Net unrealized gains/(losses) on open positions related to economic hedges 10 30 21 (55 ) Total unrealized mark-to-market losses for economic hedging activities (13 ) (35 ) (132 ) (256 ) Reversal of previously recognized unrealized gains on settled positions related to trading activity — — — (1 ) Total unrealized mark-to-market losses for trading activity — — — (1 ) Total unrealized losses $ (13 ) $ (35 ) $ (132 ) $ (257 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (4 ) $ (27 ) $ (84 ) $ (266 ) Cost of operations (9 ) (8 ) (48 ) 9 Total impact to statements of operations $ (13 ) $ (35 ) $ (132 ) $ (257 ) GenOn Mid-Atlantic Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (20 ) $ (63 ) $ (79 ) $ (203 ) Net unrealized gains/(losses) on open positions related to economic hedges 17 31 8 (54 ) Total unrealized losses $ (3 ) $ (32 ) $ (71 ) $ (257 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (1 ) $ (24 ) $ (29 ) $ (267 ) Cost of operations (2 ) (8 ) (42 ) 10 Total impact to statements of operations $ (3 ) $ (32 ) $ (71 ) $ (257 ) Credit Risk Related Contingent Features (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Certain of GenOn and GenOn Americas Generation’s hedging agreements contain provisions that require the Registrants to post additional collateral if the counterparty determines that there has been deterioration in credit quality, generally termed "adequate assurance" under the agreements, or require the Registrants to post additional collateral if there were a one notch downgrade in the Registrants’ credit rating. The collateral required for contracts that have adequate assurance clauses that are in net liability positions as of September 30, 2015 , was $32 million for GenOn and GenOn Americas Generation. The collateral required for contracts with credit rating contingent features that are in a net liability position as of September 30, 2015 , was $1 million for GenOn and GenOn Americas Generation. In addition, GenOn and GenOn Americas Generation are parties to certain marginable agreements under which they have net liability positions, but the counterparties have not called for collateral due, which was zero for GenOn and GenOn Americas Generation as of September 30, 2015 . As of September 30, 2015 , GenOn Mid-Atlantic is not party to certain marginable agreements under which they have net liability positions, but the counterparties have not called for collateral due. See Note 3 , Fair Value of Financial Instruments , for discussion regarding concentration of credit risk. |
Debt and Capital Leases (Notes)
Debt and Capital Leases (Notes) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instrument [Line Items] | |
Debt and Capital Leases Disclosures [Text Block] | Debt and Capital Leases (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Long-term debt and capital leases consisted of the following: (In millions, except rates) September 30, 2015 December 31, 2014 September 30, 2015 interest rate % GenOn Mid-Atlantic: Chalk Point capital lease, due 2015 $ 1 $ 5 8.190 Subtotal GenOn Mid-Atlantic 1 5 GenOn Americas Generation: Senior unsecured notes, due 2021 491 496 8.500 Senior unsecured notes, due 2031 431 433 9.125 Subtotal GenOn Americas Generation (a) 922 929 GenOn Energy: Senior unsecured notes, due 2017 753 766 7.875 Senior unsecured notes, due 2018 741 757 9.500 Senior unsecured notes, due 2020 603 610 9.875 Other liability (b) 57 60 GenOn capital lease 2 3 Subtotal GenOn Energy 2,156 2,196 Subtotal 3,079 3,130 Less current maturities 6 10 Total long-term debt and capital leases $ 3,073 $ 3,120 (a) This amount includes GenOn Mid-Atlantic. (b) The Long Term Service Agreement for the Hunterstown facility is accounted for as a debt financing liability in accordance with U.S. GAAP. Long-term debt includes the following premiums: (In millions) September 30, 2015 December 31, 2014 GenOn Americas Generation: Senior unsecured notes, due 2021 $ 41 $ 46 Senior unsecured notes, due 2031 31 33 GenOn Energy: Senior unsecured notes, due 2017 28 41 Senior unsecured notes, due 2018 67 83 Senior unsecured notes, due 2020 53 60 Total premium $ 220 $ 263 |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Income Taxes (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) GenOn GenOn’s income tax expense consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions except otherwise noted) 2015 2014 2015 2014 Income before income taxes $ 59 $ 46 $ 29 $ 26 Income tax expense 1 — — 2 Effective tax rate 1.7 % — % — % 7.7 % For the three months ended September 30, 2015 , GenOn's overall effective tax rate was lower than the statutory rate of 35% due to a change in the valuation allowance, partially offset by the impact of state income taxes. For the three months ended September 30, 2014 , GenOn's overall effective tax rate was lower than the statutory rate of 35% primarily due to a change in the valuation allowance. For the nine months ended September 30, 2015 , GenOn's overall effective tax rate was lower than the statutory rate of 35% due to a change in the valuation allowance. For the nine months ended September 30, 2014 , GenOn's overall effective tax rate was lower than the statutory rate of 35% due to a change in the valuation allowance, partially offset by the impact of state income taxes. GenOn Americas Generation GenOn Americas Generation's allocated income taxes resulting from its operations for the three and nine months ended September 30, 2015 , and 2014 were $0 . GenOn Americas Generation's pro forma income taxes resulting from its operations for the three and nine months ended September 30, 2015 , and 2014 are $0 due to the valuation allowance recorded on its stand-alone financial results. GenOn Mid-Atlantic GenOn Mid-Atlantic’s allocated income taxes resulting from its operations are $0 for the three and nine months ended September 30, 2015 , and 2014 . The pro forma income tax provision attributable to income before taxes is a tax expense of $17 million and $16 million during the three months ended September 30, 2015 , and 2014 , respectively. The pro forma income tax provision attributable to income before taxes is a tax expense of $27 million and $33 million during the nine months ended September 30, 2015 and 2014 , respectively. The balance of GenOn Mid-Atlantic's pro forma deferred income taxes is a net deferred tax asset of $24 million and $51 million as of September 30, 2015 , and December 31, 2014 , respectively, as no valuation allowance is required on the net deferred tax asset. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions (GenOn, GenOn Americas Generaiton, GenOn Mid-Atlantic) | Related Party Transactions (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) Services Agreement with NRG NRG provides GenOn with various management, personnel and other services, which include human resources, regulatory and public affairs, accounting, tax, legal, information systems, treasury, risk management, commercial operations, and asset management, as set forth in its services agreement with NRG, or the Services Agreement. The initial term of the Services Agreement was through December 31, 2013, with an automatic renewal absent a request for termination. The fee charged is determined based on a fixed amount as described in the Services Agreement and was calculated based on historical GenOn expenses prior to the NRG Merger. The annual fees under the Services Agreement are approximately $193 million . NRG charges these fees on a monthly basis, less amounts incurred directly by GenOn. Management has concluded that this method of charging overhead costs is reasonable. For the three and nine months ended September 30, 2015 , GenOn recorded costs related to these services of $43 million and $135 million , respectively, as general and administrative — affiliate. For the three and nine months ended September 30, 2014 , GenOn recorded costs related to these services of $31 million and $90 million , respectively, as general and administrative — affiliate. Under the Services Agreement, NRG also provides GenOn Americas Generation and GenOn Mid-Atlantic with various management, personnel and other services consistent with those set forth in the Services Agreement discussed above between NRG and GenOn. GenOn's costs incurred under the Services Agreement with NRG are allocated to its subsidiaries based on each operating subsidiary's planned operating expenses relative to all operating subsidiaries of GenOn. These allocations and charges are not necessarily indicative of what would have been incurred had GenOn Americas Generation and GenOn Mid-Atlantic been unaffiliated entities. Management has concluded that this method of charging overhead costs is reasonable. The following costs were incurred under these arrangements: GenOn Americas Generation Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In millions) Allocated costs: Cost of operations — affiliate $ — $ — $ 2 $ 1 General and administrative — affiliate 20 19 61 58 Total $ 20 $ 19 $ 63 $ 59 GenOn Mid-Atlantic Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In millions) Allocated costs: Cost of operations — affiliate $ — $ — $ 1 $ — General and administrative — affiliate 15 15 44 48 Total $ 15 $ 15 $ 45 $ 48 Credit Agreement with NRG (GenOn) In connection with the closing of the NRG Merger, GenOn and GenOn Americas entered into a secured intercompany revolving credit agreement with NRG. This credit agreement provides for a $500 million revolving credit facility, all of which is available for revolving loans and letters of credit. At September 30, 2015 , and December 31, 2014 , $215 million and $237 million , respectively, of letters of credit were issued and outstanding under the NRG credit agreement, of which $166 million and $173 million , respectively, were issued on behalf of GenOn Americas Generation. At September 30, 2015 , and December 31, 2014 , no loans were outstanding under this credit agreement. In connection with the execution of the agreement, certain of GenOn's subsidiaries, as guarantors, entered into a guarantee agreement pursuant to which these guarantors guaranteed amounts borrowed and obligations incurred under the credit agreement. The credit agreement has a three year maturity and is payable at maturity, subject to certain exceptions primarily related to asset sales not in the ordinary course of business and borrowings of debt. NRG has agreed to extend the maturity an additional three years, with the revised maturity occurring in December of 2018. In addition, the guarantors are restricted from incurring additional liens on their assets. At GenOn's election, the interest rate per year applicable to the loans under the credit agreement will be determined by reference to either (i) the base rate plus 2.50% per year or (ii) the LIBOR rate plus 3.50% per year. In addition, the credit agreement contains customary covenants and events of default. Intercompany Cash Management Program (GenOn Americas Generation) GenOn Americas Generation and certain of its subsidiaries participate in separate intercompany cash management programs whereby cash balances at GenOn Americas Generation and the respective participating subsidiaries are transferred to central concentration accounts to fund working capital and other needs of the respective participants. The balances under this program are reflected as notes receivable — affiliate and accounts receivable — affiliate or notes payable — affiliate and accounts payable — affiliate, as appropriate. The balances are due on demand and notes receivable — affiliate and notes payable — affiliate accrue interest on the net position, which is payable quarterly, at a rate determined by GenOn Energy Holdings, a wholly owned subsidiary of GenOn. At September 30, 2015 , and December 31, 2014 , GenOn Americas Generation had a net current note receivable — affiliate from GenOn Energy Holdings of $331 million related to its historical intercompany cash management activity. For the three and nine months ended September 30, 2015 , and 2014 , GenOn Americas Generation earned an insignificant amount of net interest income related to these notes. Additionally, at September 30, 2015 , and December 31, 2014 , GenOn Americas Generation had an accounts receivable — affiliate of $133 million and $118 million , respectively, with GenOn Energy Holdings. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Commitments and Contingencies (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 16 , Commitments and Contingencies , to the Registrants' 2014 Form 10-K. Contingencies The Registrants’ material legal proceedings are described below. The Registrants believe that they have valid defenses to these legal proceedings and intend to defend them vigorously. The Registrants record reserves 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. 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 Registrants are 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 Registrants’ liabilities and contingencies could be at amounts that are different from their currently recorded reserves and that such difference could be material. In addition to the legal proceedings noted below, the Registrants are parties 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 the Registrants’ respective consolidated financial position, results of operations, or cash flows. Actions Pursued by MC Asset Recovery (GenOn) — With Mirant Corporation's emergence from bankruptcy protection in 2006, certain actions filed by GenOn Energy Holdings and some of its subsidiaries against third parties were transferred to MC Asset Recovery, a wholly owned subsidiary of GenOn Energy Holdings. MC Asset Recovery is governed by a manager who is independent of NRG and GenOn. MC Asset Recovery is a disregarded entity for income tax purposes. Under the remaining action transferred to MC Asset Recovery, MC Asset Recovery seeks to recover damages from Commerzbank AG and various other banks, or the Commerzbank Defendants, for alleged fraudulent transfers that occurred prior to Mirant's bankruptcy proceedings. In December 2010, the U.S. District Court for the Northern District of Texas dismissed MC Asset Recovery's complaint against the Commerzbank Defendants. In January 2011, MC Asset Recovery appealed the District Court's dismissal of its complaint against the Commerzbank Defendants to the U.S. Court of Appeals for the Fifth Circuit. In March 2012, the Court of Appeals reversed the District Court's dismissal and reinstated MC Asset Recovery's amended complaint against the Commerzbank Defendants. If MC Asset Recovery succeeds in obtaining any recoveries from the Commerzbank Defendants, the Commerzbank Defendants have asserted that they will seek to file claims in Mirant's bankruptcy proceedings for the amount of those recoveries. GenOn Energy Holdings would vigorously contest the allowance of any such claims. If the Commerzbank Defendants were to receive an allowed claim as a result of a recovery by MC Asset Recovery on its claims against them, GenOn Energy Holdings would retain from the net amount recovered by MC Asset Recovery an amount equal to the dollar amount of the resulting allowed claim. Natural Gas Litigation (GenOn) — GenOn is party to several lawsuits, certain of which are class action lawsuits, in state and federal courts in Kansas, Missouri, Nevada and Wisconsin. These lawsuits were filed in the aftermath of the California energy crisis in 2000 and 2001 and the resulting FERC investigations and relate to alleged conduct to increase natural gas prices in violation of state antitrust law and similar laws. The lawsuits seek treble or punitive damages, restitution and/or expenses. The lawsuits also name as parties a number of energy companies unaffiliated with NRG. In July 2011, the U.S. District Court for the District of Nevada, which was handling four of the five cases, granted the defendants' motion for summary judgment and dismissed all claims against GenOn in those cases. The plaintiffs appealed to the U.S. Court of Appeals for the Ninth Circuit which reversed the decision of the District Court. GenOn along with the other defendants in the lawsuit filed a petition for a writ of certiorari to the U.S. Supreme Court challenging the Court of Appeals' decision, and the U.S. Supreme Court granted the petition. On April 21, 2015, the U.S. Supreme Court affirmed the Ninth Circuit’s holding that plaintiffs’ state antitrust law claims are not field-preempted by the federal Natural Gas Act and the Supremacy Clause of the U.S. Constitution. The U.S. Supreme Court left open whether the claims were preempted on the basis of conflict preemption. The U.S. Supreme Court directed that the case be remanded to the U.S. District Court for the District of Nevada for further proceedings. GenOn has agreed to indemnify CenterPoint against certain losses relating to these lawsuits. In September 2012, the State of Nevada Supreme Court, which was handling the remaining case, affirmed dismissal by the Eighth Judicial District Court for Clark County, Nevada of all plaintiffs' claims against GenOn. In February 2013, the plaintiffs in the Nevada case filed a petition for a writ of certiorari to the U.S. Supreme Court. In June 2013, the U.S. Supreme Court denied the petition for a writ of certiorari, thereby ending one of the five lawsuits. Maryland Department of the Environment v. GenOn Chalk Point and GenOn Mid-Atlantic — On January 25, 2013, Food & Water Watch, the Patuxent Riverkeeper and the Potomac Riverkeeper (together, the Citizens Group) sent GenOn Mid-Atlantic a letter alleging that the Chalk Point, Dickerson and Morgantown generating facilities were violating the terms of the three National Pollution Discharge Elimination System permits by discharging nitrogen and phosphorous in excess of the limits in each permit. On March 21, 2013, the MDE sent GenOn Mid-Atlantic a similar letter with respect to the Chalk Point and Dickerson generating facilities, threatening to sue within 60 days if the generating facilities were not brought into compliance. On June 11, 2013, the Maryland Attorney General on behalf of the MDE filed a complaint in the U.S. District Court for the District of Maryland alleging violations of the CWA and Maryland environmental laws related to water. The lawsuit is ongoing and seeks injunctive relief and civil penalties in excess of $100,000 . The Registrants do not expect the resolution of this matter to have a material impact on the Registrants' consolidated financial position, results of operations, or cash flows. Chapter 11 Proceedings (GenOn and GenOn Americas Generation) — In July 2003, and various dates thereafter, the Mirant Debtors filed voluntary petitions in the Bankruptcy Court for relief under Chapter 11 of the U.S. Bankruptcy Code. GenOn Energy Holdings and most of the other Mirant Debtors emerged from bankruptcy on January 3, 2006, when the Plan became effective. The remaining Mirant Debtors emerged from bankruptcy on various dates in 2007. Approximately 461,000 of the shares of GenOn Energy Holdings common stock to be distributed under the Plan have not yet been distributed and have been reserved for distribution with respect to claims disputed by the Mirant Debtors that have not been resolved. Upon the Mirant/RRI Merger, those reserved shares converted into a reserve for approximately 1.3 million shares of GenOn common stock. Upon the NRG Merger, those reserved shares converted into a reserve for approximately 159,000 shares of NRG common stock. Under the terms of the Plan, upon the resolution of such a disputed claim, the claimant will receive the same pro rata distributions of common stock, cash, or both as previously allowed claims, regardless of the price at which the common stock is trading at the time the claim is resolved. If the aggregate amount of any such payouts results in the number of reserved shares being insufficient, additional shares of common stock may be issued to address the shortfall. |
Regulatory Matters
Regulatory Matters | 9 Months Ended |
Sep. 30, 2015 | |
Regulatory Matters Disclosure [Abstract] | |
Regulatory Matters (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Regulatory Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 17 , Regulatory Matters , to the Registrants' 2014 Form 10-K. The Registrants operate in a highly regulated industry and are subject to regulation by various federal and state agencies. As such, the Registrants are affected by regulatory developments at both the federal and state levels and in the regions in which they operate. In addition, the Registrants are subject to the market rules, procedures, and protocols of the various ISO and RTO markets in which they participate. These power markets are subject to ongoing legislative and regulatory changes that may impact the Registrants' wholesale business. In addition to the regulatory proceedings noted below, the Registrants 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 the Registrants’ respective consolidated financial position, results of operations, or cash flows. National Court Rejects FERC's Jurisdiction Over Demand Response — On May 23, 2014, the D.C. Circuit vacated FERC’s rules (known as Order No. 745) that allowed demand response resources to participate in FERC-jurisdictional energy markets. The Court of Appeals held that the FPA does not authorize FERC to exercise jurisdiction over demand response and that instead demand response is part of the retail market over which the states have jurisdiction. The specific order being challenged related to energy market compensation, but this ruling also calls into question whether demand response will be permitted to participate in the capacity markets in the future. Parties including the U.S. Solicitor General filed petitions for a writ of certiorari with the U.S. Supreme Court. On May 4, 2015, the U.S. Supreme Court granted certiorari on two questions: first, on whether the FPA gives FERC jurisdiction over demand response, and second, whether FERC was arbitrary and capricious when it established in Order No. 745 the level of compensation to be paid to demand response resources participating in the wholesale energy markets. On July 16, 2015, the Registrants filed an amicus brief with the U.S. Supreme Court. The U.S. Supreme Court heard oral argument on October 14, 2015. The eventual outcome of this proceeding could result in refunds of payments made for non-jurisdictional services and resettlement of wholesale markets, but it is not possible to predict the outcome or estimate the impact on the Registrants at this time. East Region Montgomery County Station Power Tax — On December 20, 2013, NRG received a letter from Montgomery County, Maryland requesting payment of an energy tax for the consumption of station power at the Dickerson Facility over the previous three years. Montgomery County seeks payment in the amount of $22 million , which includes tax, interest and penalties. NRG is disputing the applicability of the tax. On December 17, 2014, the Maryland Tax Court heard oral arguments from the parties. Subsequently, post hearing briefs were filed. The decision is pending. |
Environmental Matters
Environmental Matters | 9 Months Ended |
Sep. 30, 2015 | |
Environmental Matters Disclosure [Abstract] | |
Environmental Matters (GenOn, GenOn Americas Generation, GenOn Mid-Atlantic) | Environmental Matters (GenOn, GenOn Americas Generation and GenOn Mid-Atlantic) This footnote should be read in conjunction with the complete description under Note 18 , Environmental Matters , to the Registrants' 2014 Form 10-K. The Registrants are subject to a wide range of environmental laws in the development, construction, ownership and operation of projects. These laws generally require that governmental permits and approvals be obtained before construction and during operation of power plants. The Registrants are also subject to laws and regulations surrounding the protection of wildlife, including migratory birds, eagles and threatened and endangered species. Environmental laws have become increasingly stringent and the Registrants expect this trend to continue. The electric generation industry is facing new requirements to address various emissions, including GHG, as well as 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 certain restrictions on the operations of the Registrants' facilities, which could have a material effect on the Registrants' operations. The EPA finalized CSAPR in 2011, which was intended to replace CAIR in January 2012, to address each state's obligation to reduce emissions so that downwind states can achieve federal air quality standards. In December 2011, the D.C. Circuit stayed the implementation of CSAPR and then vacated CSAPR in August 2012 but kept CAIR in place until the EPA could replace it. In April 2014, the U.S. Supreme Court reversed and remanded the D.C. Circuit's decision. In October 2014, the D.C. Circuit lifted the stay of CSAPR. In response, the EPA in November 2014 amended the CSAPR compliance dates. Accordingly, CSAPR replaced CAIR on January 1, 2015. On July 28, 2015, the D.C. Circuit held that the EPA had exceeded its authority by requiring certain reductions that were not necessary for downwind states to achieve federal standards. Although the D.C. Circuit kept the rule in place, the D.C. Circuit ordered the EPA to revise the Phase 2 (or 2017) (i) SO 2 budgets for four states and (ii) ozone-season NO x budgets for 11 states including Maryland, New Jersey, New York, Ohio and Pennsylvania. While the Registrants cannot predict the final outcome of this rulemaking, the Registrants believe their investment in pollution controls and cleaner technologies coupled with planned plant retirements leave the fleet well positioned for compliance. In February 2012, the EPA promulgated standards (the MATS rule) to control emissions of HAPs from coal and oil-fired electric generating units. The rule established limits for mercury, non-mercury metals, certain organics and acid gases, which limits must be met beginning in April 2015 (with some units getting a 1-year extension). In June 2015, the U.S. Supreme Court issued a decision in the case of Michigan v. EPA , and held that the EPA unreasonably refused to consider costs when it determined that it was "appropriate and necessary" to regulate HAPs emitted by electric generating units. The U.S. Supreme Court did not vacate the MATS rule but rather remanded it to the D.C. Circuit for further proceedings. Water In August 2014, the EPA finalized the regulation regarding the use of water for once through cooling at existing facilities to address impingement and entrainment concerns. The Registrants anticipate that more stringent requirements will be incorporated into some of their water discharge permits over the next several years as NPDES permits are renewed. 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. These byproducts will be regulated as solid wastes. The Registrants are evaluating the impact of the new rule on their results of operations, financial condition and cash flows and have accrued their environmental and asset retirement obligations under the rule based on current estimates as of September 30, 2015. East Region Maryland Environmental Regulations — In December 2014, MDE proposed a regulation regarding NO x emissions from coal-fired electric generating units, which if finalized would have required by 2020 the Registrants (at each of the three Dickerson coal-fired units and the Chalk Point coal-fired unit that does not have an SCR) to either (1) install and operate an SCR; (2) retire the unit; or (3) convert the fuel source from coal to natural gas. In early 2015, a new gubernatorial administration in Maryland decided not to finalize the regulation as proposed. In September 2015, MDE proposed revised regulations to address future NO x reductions, which when finalized may negatively affect certain of the Registrants' coal-fired units in Maryland. Environmental Capital Expenditures GenOn estimates that environmental capital expenditures from 2015 through 2019 required to comply with environmental laws will be approximately $98 million for GenOn, which includes $16 million for GenOn Americas Generation. The amount for GenOn Americas Generation includes $10 million for GenOn Mid-Atlantic. The majority of these costs will be expended by the end of 2016. The increase in environmental capital expenditures for GenOn relates to the Avon Lake Unit 9 MATS compliance project. |
Basis of Presentation Reclassif
Basis of Presentation Reclassification (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain prior year amounts have been reclassified for comparative purposes. The reclassifications did not affect results from operations, net assets or cash flows. |
Basis of Presentation Use of Es
Basis of Presentation Use of Estimates (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. 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. |
Fair Value of Financial Instr20
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Fair Value of Financial Instruments | |
Estimated carrying amounts and fair values of recorded financial instruments not carried at fair market value | The estimated carrying amounts and fair values of GenOn and GenOn Americas Generation’s debt are as follows: GenOn As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion $ 3,076 $ 2,566 $ 3,122 $ 2,706 |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn’s consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 190 $ 437 $ 10 $ 637 Derivative liabilities: Commodity contracts $ 130 $ 337 $ 10 $ 477 Other assets (b) $ 14 $ — $ — $ 14 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 179 $ 582 $ 46 $ 807 Derivative liabilities: Commodity contracts $ 105 $ 371 $ 13 $ 489 Other assets (b) $ 21 $ — $ — $ 21 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . (b) Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. |
Reconciliation of beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs | The following table reconciles, for the three and nine months ended September 30, 2015 , and 2014 , the beginning and ending balances for derivatives that are recognized at fair value in GenOn's consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 14 $ (44 ) $ 33 $ (4 ) Total (losses)/gains included in earnings — realized/unrealized (18 ) 1 (44 ) 3 Purchases (2 ) 22 5 (19 ) Transfers into Level 3 (b) — 1 — — Transfers out of Level 3 (b) 6 — 6 — Ending balance $ — $ (20 ) $ — $ (20 ) Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (14 ) $ — $ (20 ) $ (1 ) (a) Consists of derivative assets and liabilities, net. (b) Transfers in/out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. |
Fair Value Inputs, Sensitivity Analysis [Table Text Block] | The following table provides sensitivity of fair value measurements to increases/(decreases) in significant unobservable inputs as of September 30, 2015 , and December 31, 2014 : Significant Unobservable Input Position Change In Input Impact on Fair Value Measurement Forward Market Price Power/Coal Buy Increase/(Decrease) Higher/(Lower) Forward Market Price Power/Coal Sell Increase/(Decrease) Lower/(Higher) FTR Prices Buy Increase/(Decrease) Higher/(Lower) FTR Prices Sell Increase/(Decrease) Lower/(Higher) |
Schedule of credit reserves for derivative contract assets | The Registrants' (non-performance)/credit reserves were as follows: As of September 30, 2015 As of December 31, 2014 (In millions) GenOn $ (1 ) $ — GenOn Americas Generation (1 ) — GenOn Mid-Atlantic 3 2 |
Net counterparty credit exposure by industry sector and by counterparty credit quality | The following tables highlight net counterparty credit exposure by industry sector and by counterparty credit quality. Net counterparty credit exposure is defined as the aggregate net asset position for the Registrants with counterparties where netting is permitted under the enabling agreement and includes all cash flow, mark-to-market, NPNS and non-derivative transactions. The exposure is shown net of collateral held and includes amounts net of receivables or payables. Net Exposure (a) (% of Total) Category GenOn GenOn Americas Generation GenOn Mid-Atlantic Financial institutions 74 % 76 % 100 % Utilities, energy merchants, marketers and other 8 5 — ISOs 18 19 — Total as of September 30, 2015 100 % 100 % 100 % Net Exposure (a) (% of Total) Category GenOn GenOn Americas Generation GenOn Mid-Atlantic Investment grade 100 % 100 % 100 % Total as of September 30, 2015 100 % 100 % 100 % (a) Counterparty credit exposure excludes transportation contracts because of the unavailability of market prices. |
GenOn Americas Generation | |
Fair Value of Financial Instruments | |
Estimated carrying amounts and fair values of recorded financial instruments not carried at fair market value | GenOn Americas Generation As of September 30, 2015 As of December 31, 2014 Carrying Amount Fair Value Carrying Amount Fair Value (In millions) Long-term debt, including current portion $ 922 $ 694 $ 929 $ 720 |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn Americas Generation The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Americas Generation's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 255 $ 640 $ 19 $ 914 Derivative liabilities: Commodity contracts $ 148 $ 581 $ 18 $ 747 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 208 $ 848 $ 52 $ 1,108 Derivative liabilities: Commodity contracts $ 137 $ 640 $ 32 $ 809 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . |
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, 2015 , and 2014 , the beginning and ending balances for GenOn Americas Generation's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 12 $ (41 ) $ 20 $ (1 ) Total (losses)/gains included in earnings — realized/unrealized (16 ) 1 (26 ) 1 Purchases (1 ) 22 1 (18 ) Transfers out of Level 3 (b) 6 — 6 — Ending balance $ 1 $ (18 ) $ 1 $ (18 ) (Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (13 ) $ 1 $ (11 ) $ — (a) Consists of derivative assets and liabilities, net. (b) Transfers out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. |
GenOn Mid-Atlantic | |
Fair Value of Financial Instruments | |
Assets and liabilities measured and recorded at fair value on the consolidated balance sheets on a recurring basis | GenOn Mid-Atlantic The following tables present assets and liabilities (including affiliate amounts) measured and recorded at fair value on GenOn Mid-Atlantic's consolidated balance sheet on a recurring basis and their level within the fair value hierarchy: As of September 30, 2015 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 168 $ 169 $ 1 $ 338 Derivative liabilities: Commodity contracts $ 61 $ 116 $ — $ 177 (a) There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015 . As of December 31, 2014 Fair Value Level 1 (a) Level 2 (a) Level 3 Total (In millions) Derivative assets: Commodity contracts $ 145 $ 211 $ 26 $ 382 Derivative liabilities: Commodity contracts $ 71 $ 73 $ 6 $ 150 (a) There were no transfers between Levels 1 and 2 during the year ended December 31, 2014 . |
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, 2015 , and 2014 , the beginning and ending balances for GenOn Mid-Atlantic's derivatives that are recognized at fair value in the consolidated financial statements at least annually using significant unobservable inputs: Fair Value Measurement Using Significant Unobservable Inputs (Level 3) Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 Derivatives (a) Derivatives (a) (In millions) Beginning balance $ 13 $ (41 ) $ 20 $ — Total (losses)/gains included in earnings — realized/unrealized (15 ) 1 (25 ) — Purchases (3 ) 22 — (18 ) Transfers out of Level 3 (b) 6 — 6 — Ending balance $ 1 $ (18 ) $ 1 $ (18 ) (Losses)/gains for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 $ (13 ) $ 1 $ (11 ) $ — |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | GenOn Mid-Atlantic Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) FTRs 1 — Discounted Cash Flow Auction Prices (per MWh) — 1 — $ 1 $ — Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 26 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 24 $ 68 $ 47 FTRs — 1 Discounted Cash Flow Auction Prices (per MWh) (1 ) 1 — $ 26 $ 6 |
GenOn | |
Fair Value of Financial Instruments | |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | GenOn Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 6 $ — Discounted Cash Flow Forward Market Price (per MWh) $ 12 $ 56 $ 30 Coal Contracts — 10 Discounted Cash Flow Forward Market Price (per ton) 46 49 47 FTRs 4 — Discounted Cash Flow Auction Prices (per MWh) (1 ) 4 1 $ 10 $ 10 Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 39 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 18 $ 68 $ 46 Coal Contracts 3 1 Discounted Cash Flow Forward Market Price (per ton) 53 56 54 FTRs 4 7 Discounted Cash Flow Auction Prices (per MWh) (10 ) 3 (1 ) $ 46 $ 13 |
GenOn Americas Generation [Member] | |
Fair Value of Financial Instruments | |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | GenOn Americas Generation Significant Unobservable Inputs September 30, 2015 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 5 $ 5 Discounted Cash Flow Forward Market Price (per MWh) $ 12 $ 56 $ 30 Coal Contracts 10 9 Discounted Cash Flow Forward Market Price (per ton) 46 49 47 FTRs 4 4 Discounted Cash Flow Auction Prices (per MWh) — 1 — $ 19 $ 18 Significant Unobservable Inputs December 31, 2014 Fair Value Input/Range Assets Liabilities Valuation Technique Significant Unobservable Input Low High Weighted Average (In millions) Power Contracts $ 39 $ 18 Discounted Cash Flow Forward Market Price (per MWh) $ 18 $ 68 $ 46 Coal Contracts 3 3 Discounted Cash Flow Forward Market Price (per ton) 53 56 54 FTRs 10 11 Discounted Cash Flow Auction Prices (per MWh) (1 ) 1 — $ 52 $ 32 |
Accounting for Derivative Ins21
Accounting for Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting for Derivative Instruments and Hedging Activities | |
Net notional volume buy/(sell) of open derivative transactions broken out by commodity | The following table summarizes the net notional volume buy/(sell) of the Registrants’ open derivative transactions broken out by commodity, excluding those derivatives that qualified for the NPNS exception as of September 30, 2015 , and December 31, 2014 . Option contracts are reflected using delta volume. Delta volume equals the notional volume of an option adjusted for the probability that the option will be in-the-money at its expiration date. GenOn GenOn Americas Generation GenOn Mid-Atlantic Total Volume Total Volume Total Volume As of September 30, 2015 As of December 31, 2014 As of September 30, 2015 As of December 31, 2014 As of September 30, 2015 As of December 31, 2014 Commodity Units (In millions) Coal Short Ton 7 8 4 5 4 5 Natural Gas MMBtu 122 (21) (12 ) (74) (22 ) (79) Power MWh (48 ) (36) (22 ) (16) (20 ) (15) |
Fair value within the derivative instrument valuation on the balance sheets | The following tables summarize the fair value within the derivative instrument valuation on the balance sheet: GenOn Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges: Commodity contracts current $ 391 $ 602 $ 326 $ 417 Commodity contracts long-term 246 205 151 72 Total Derivatives Not Designated as Cash Flow Hedges $ 637 $ 807 $ 477 $ 489 |
Offsetting of derivatives by counterparty master agreement level and collateral received or paid | The following tables summarize the offsetting of derivatives by counterparty master agreement level and collateral received or paid: GenOn Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 611 $ (366 ) $ (40 ) $ 205 Derivative assets - affiliate 26 (26 ) — — Derivative liabilities (445 ) 366 — (79 ) Derivative liabilities - affiliate (32 ) 26 6 — Total derivative instruments $ 160 $ — $ (34 ) $ 126 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 786 $ (425 ) $ (54 ) $ 307 Derivative assets - affiliate 21 (21 ) — — Derivative liabilities (451 ) 425 — (26 ) Derivative liabilities - affiliate (38 ) 21 17 — Total derivative instruments $ 318 $ — $ (37 ) $ 281 |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | The following tables summarize the pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the Registrants’ statements of operations. These amounts are included within operating revenues and cost of operations. GenOn Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (19 ) $ (59 ) $ (146 ) $ (210 ) Net unrealized (losses)/gains on open positions related to economic hedges (6 ) 57 (12 ) (112 ) Total unrealized mark-to-market losses for economic hedging activities (25 ) (2 ) (158 ) (322 ) Reversal of previously recognized unrealized gains on settled positions related to trading activity — — — (1 ) Total unrealized mark-to-market losses for trading activity — — — (1 ) Total unrealized losses $ (25 ) $ (2 ) $ (158 ) $ (323 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (17 ) $ 3 $ (91 ) $ (341 ) Cost of operations (8 ) (5 ) (67 ) 18 Total impact to statements of operations $ (25 ) $ (2 ) $ (158 ) $ (323 ) |
GenOn Americas Generation | |
Accounting for Derivative Instruments and Hedging Activities | |
Fair value within the derivative instrument valuation on the balance sheets | GenOn Americas Generation Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges : Commodity contracts current $ 571 $ 852 $ 488 $ 674 Commodity contracts long-term 343 256 259 135 Total Derivatives Not Designated as Cash Flow Hedges $ 914 $ 1,108 $ 747 $ 809 |
Offsetting of derivatives by counterparty master agreement level and collateral received or paid | GenOn Americas Generation Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 611 $ (366 ) $ (40 ) $ 205 Derivative assets - affiliate 303 (302 ) — 1 Derivative liabilities (445 ) 366 — (79 ) Derivative liabilities - affiliate (302 ) 302 — — Total derivative instruments $ 167 $ — $ (40 ) $ 127 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 787 $ (425 ) $ (54 ) $ 308 Derivative assets - affiliate 321 (321 ) — — Derivative liabilities (451 ) 425 — (26 ) Derivative liabilities - affiliate (358 ) 321 17 (20 ) Total derivative instruments $ 299 $ — $ (37 ) $ 262 |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | GenOn Americas Generation Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (23 ) $ (65 ) $ (153 ) $ (201 ) Net unrealized gains/(losses) on open positions related to economic hedges 10 30 21 (55 ) Total unrealized mark-to-market losses for economic hedging activities (13 ) (35 ) (132 ) (256 ) Reversal of previously recognized unrealized gains on settled positions related to trading activity — — — (1 ) Total unrealized mark-to-market losses for trading activity — — — (1 ) Total unrealized losses $ (13 ) $ (35 ) $ (132 ) $ (257 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (4 ) $ (27 ) $ (84 ) $ (266 ) Cost of operations (9 ) (8 ) (48 ) 9 Total impact to statements of operations $ (13 ) $ (35 ) $ (132 ) $ (257 ) |
GenOn Mid-Atlantic | |
Accounting for Derivative Instruments and Hedging Activities | |
Fair value within the derivative instrument valuation on the balance sheets | GenOn Mid-Atlantic Fair Value Derivative Assets Derivative Liabilities September 30, 2015 December 31, 2014 September 30, 2015 December 31, 2014 (In millions) Derivatives Not Designated as Cash Flow Hedges : Commodity contracts current $ 210 $ 241 $ 128 $ 128 Commodity contracts long-term 128 141 49 22 Total Derivatives Not Designated as Cash Flow Hedges $ 338 $ 382 $ 177 $ 150 |
Offsetting of derivatives by counterparty master agreement level and collateral received or paid | GenOn Mid-Atlantic Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount September 30, 2015 (In millions) Commodity contracts: Derivative assets $ 29 $ — $ — $ 29 Derivative assets - affiliate 309 (177 ) — 132 Derivative liabilities - affiliate (177 ) 177 — — Total derivative instruments $ 161 $ — $ — $ 161 Gross Amounts Not Offset in the Statement of Financial Position Description Gross Amounts of Recognized Assets / Liabilities Derivative Instruments Cash Collateral (Held) / Posted Net Amount December 31, 2014 (In millions) Commodity contracts: Derivative assets $ 100 $ — $ — $ 100 Derivative assets - affiliate 282 (149 ) — 133 Derivative liabilities (1 ) — — (1 ) Derivative liabilities - affiliate (149 ) 149 — — Total derivative instruments $ 232 $ — $ — $ 232 |
Pre-tax effects of economic hedges that have not been designated as cash flow hedges and trading activity on the statements of operations | GenOn Mid-Atlantic Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Unrealized mark-to-market results Reversal of previously recognized unrealized gains on settled positions related to economic hedges $ (20 ) $ (63 ) $ (79 ) $ (203 ) Net unrealized gains/(losses) on open positions related to economic hedges 17 31 8 (54 ) Total unrealized losses $ (3 ) $ (32 ) $ (71 ) $ (257 ) Three months ended September 30, Nine months ended September 30, (In millions) 2015 2014 2015 2014 Revenue from operations — energy commodities $ (1 ) $ (24 ) $ (29 ) $ (267 ) Cost of operations (2 ) (8 ) (42 ) 10 Total impact to statements of operations $ (3 ) $ (32 ) $ (71 ) $ (257 ) |
Debt and Capital Leases (Tables
Debt and Capital Leases (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Instrument [Line Items] | |
Schedule Of Long Term Debt And Capital Leases [Table Text Block] | Long-term debt and capital leases consisted of the following: (In millions, except rates) September 30, 2015 December 31, 2014 September 30, 2015 interest rate % GenOn Mid-Atlantic: Chalk Point capital lease, due 2015 $ 1 $ 5 8.190 Subtotal GenOn Mid-Atlantic 1 5 GenOn Americas Generation: Senior unsecured notes, due 2021 491 496 8.500 Senior unsecured notes, due 2031 431 433 9.125 Subtotal GenOn Americas Generation (a) 922 929 GenOn Energy: Senior unsecured notes, due 2017 753 766 7.875 Senior unsecured notes, due 2018 741 757 9.500 Senior unsecured notes, due 2020 603 610 9.875 Other liability (b) 57 60 GenOn capital lease 2 3 Subtotal GenOn Energy 2,156 2,196 Subtotal 3,079 3,130 Less current maturities 6 10 Total long-term debt and capital leases $ 3,073 $ 3,120 (a) This amount includes GenOn Mid-Atlantic. (b) The Long Term Service Agreement for the Hunterstown facility is accounted for as a debt financing liability in accordance with U.S. GAAP. |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt includes the following premiums: (In millions) September 30, 2015 December 31, 2014 GenOn Americas Generation: Senior unsecured notes, due 2021 $ 41 $ 46 Senior unsecured notes, due 2031 31 33 GenOn Energy: Senior unsecured notes, due 2017 28 41 Senior unsecured notes, due 2018 67 83 Senior unsecured notes, due 2020 53 60 Total premium $ 220 $ 263 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income tax (benefit)/provision | GenOn’s income tax expense consisted of the following: Three months ended September 30, Nine months ended September 30, (In millions except otherwise noted) 2015 2014 2015 2014 Income before income taxes $ 59 $ 46 $ 29 $ 26 Income tax expense 1 — — 2 Effective tax rate 1.7 % — % — % 7.7 % |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
GenOn Americas Generation | |
Related Party Transaction | |
Summary of material related-party transactions with affiliates | The following costs were incurred under these arrangements: GenOn Americas Generation Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In millions) Allocated costs: Cost of operations — affiliate $ — $ — $ 2 $ 1 General and administrative — affiliate 20 19 61 58 Total $ 20 $ 19 $ 63 $ 59 |
GenOn Mid-Atlantic | |
Related Party Transaction | |
Summary of material related-party transactions with affiliates | GenOn Mid-Atlantic Three months ended September 30, Nine months ended September 30, 2015 2014 2015 2014 (In millions) Allocated costs: Cost of operations — affiliate $ — $ — $ 1 $ — General and administrative — affiliate 15 15 44 48 Total $ 15 $ 15 $ 45 $ 48 |
Basis of Presentation (Details)
Basis of Presentation (Details) | 9 Months Ended |
Sep. 30, 2015MW | |
Basis of Presentation | |
Generation capacity (in MW) | 17,752 |
Change in Power Generation Capacity, Megawatts | 1,777 |
GenOn Mid-Atlantic | |
Basis of Presentation | |
Generation capacity (in MW) | 4,683 |
GenOn Americas Generation | |
Basis of Presentation | |
Generation capacity (in MW) | 7,985 |
Bowline [Member] | GenOn Americas Generation | |
Basis of Presentation | |
Generation capacity (in MW) | 389 |
Summary of Significant Accoun26
Summary of Significant Accounting Policies Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($)MW | Sep. 30, 2014USD ($)MW | Sep. 30, 2015USD ($)MW | Sep. 30, 2014USD ($)MW | |
Summary of Significant Accounting Policies [Line Items] | ||||
Inventory Write-down | $ 16 | |||
Power Generation Capacity, Megawatts | MW | 17,752 | 17,752 | ||
Impairment loss | $ 0 | $ 60 | $ 0 | $ 60 |
Osceola facility [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Power Generation Capacity, Megawatts | MW | 463 | 463 | ||
Osceola facility [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Impairment loss | $ 60 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Details 1 - CV and FV of Debt) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Carrying Amount | ||
Fair Value of Financial Instruments | ||
Long-term debt, including current portion | $ 3,076 | $ 3,122 |
Fair Value | ||
Fair Value of Financial Instruments | ||
Long-term debt, including current portion | 2,566 | 2,706 |
GenOn Americas Generation | Carrying Amount | ||
Fair Value of Financial Instruments | ||
Long-term debt, including current portion | 922 | 929 |
GenOn Americas Generation | Fair Value | ||
Fair Value of Financial Instruments | ||
Long-term debt, including current portion | $ 694 | $ 720 |
Fair Value of Financial Instr28
Fair Value of Financial Instruments (Details 2 - Recurring FV) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | ||||
Fair Value, Measurements, Recurring | Level 1 | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other assets (b) | $ 14 | [1],[2] | $ 14 | [1],[2] | $ 21 | [3],[4] |
Fair Value, Measurements, Recurring | Level 1 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 190 | [2] | 190 | [2] | 179 | [4] |
Commodity contracts | 130 | [2] | 130 | [2] | 105 | [4] |
Fair Value, Measurements, Recurring | Level 2 | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other assets (b) | 0 | [1],[2] | 0 | [1],[2] | 0 | [3],[4] |
Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 437 | [2] | 437 | [2] | 582 | [4] |
Commodity contracts | 337 | [2] | 337 | [2] | 371 | [4] |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other assets (b) | 0 | [1] | 0 | [1] | 0 | [3] |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 10 | 10 | 46 | |||
Commodity contracts | 10 | 10 | 13 | |||
Fair Value, Measurements, Recurring | Fair Value | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Other assets (b) | 14 | [1] | 14 | [1] | 21 | [3] |
Fair Value, Measurements, Recurring | Fair Value | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 637 | 637 | 807 | |||
Commodity contracts | 477 | 477 | 489 | |||
GenOn | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets And Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Assets And Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |||
GenOn Americas Generation [Member] | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets And Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Assets And Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |||
GenOn Americas Generation | Fair Value, Measurements, Recurring | Level 1 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 255 | [5] | 255 | [5] | 208 | [6] |
Commodity contracts | 148 | [5] | 148 | [5] | 137 | [6] |
GenOn Americas Generation | Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 640 | [5] | 640 | [5] | 848 | [6] |
Commodity contracts | 581 | [5] | 581 | [5] | 640 | [6] |
GenOn Americas Generation | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 19 | 19 | 52 | |||
Commodity contracts | 18 | 18 | 32 | |||
GenOn Americas Generation | Fair Value, Measurements, Recurring | Fair Value | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 914 | 914 | 1,108 | |||
Commodity contracts | 747 | 747 | 809 | |||
GenOn Mid-Atlantic | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair Value, Assets And Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Assets And Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |||
GenOn Mid-Atlantic | Fair Value, Measurements, Recurring | Level 1 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 168 | [7] | 168 | [7] | 145 | [8] |
Commodity contracts | 61 | [7] | 61 | [7] | 71 | [8] |
GenOn Mid-Atlantic | Fair Value, Measurements, Recurring | Level 2 | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 169 | [7] | 169 | [7] | 211 | [8] |
Commodity contracts | 116 | [7] | 116 | [7] | 73 | [8] |
GenOn Mid-Atlantic | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 1 | 1 | 26 | |||
Commodity contracts | 0 | 0 | 6 | |||
GenOn Mid-Atlantic | Fair Value, Measurements, Recurring | Fair Value | Commodity contracts | ||||||
Fair Value Assets and Liabilities, Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Commodity contracts | 338 | 338 | 382 | |||
Commodity contracts | $ 177 | $ 177 | $ 150 | |||
[1] | Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. | |||||
[2] | There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015. | |||||
[3] | Relates to mutual funds held in a rabbi trust for non-qualified deferred compensation plans for certain key and highly compensated employees. | |||||
[4] | There were no transfers between Levels 1 and 2 during the year ended December 31, 2014. | |||||
[5] | There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015. | |||||
[6] | There were no transfers between Levels 1 and 2 during the year ended December 31, 2014. | |||||
[7] | There were no transfers between Levels 1 and 2 during the three and nine months ended September 30, 2015. | |||||
[8] | There were no transfers between Levels 1 and 2 during the year ended December 31, 2014. |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Details 3 - Level 3 FV) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | ||
GenOn Americas Generation | |||||||||
Reconciliation of the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements | |||||||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset and Liability, Transfers out of Level 3 | $ 6 | $ 0 | $ 6 | $ 0 | |||||
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | |||||||||
Fair Value Asset and Liabilities, Measured on Recurring Basis, Unobservable Input Changes | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [1] | 0 | (20) | 0 | (20) | $ 14 | $ 33 | $ (44) | $ (4) |
Reconciliation of the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements | |||||||||
Total (losses)/gains included in earnings — realized/unrealized | [1] | (18) | 1 | (44) | 3 | ||||
Purchases | [1] | (2) | 22 | 5 | (19) | ||||
Transfers into Level 3 (b) | [1],[2] | 0 | 1 | 0 | 0 | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset and Liability, Transfers out of Level 3 | [1],[2] | 6 | 0 | 6 | 0 | ||||
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | [1] | (14) | 0 | (20) | (1) | ||||
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | GenOn Americas Generation | |||||||||
Fair Value Asset and Liabilities, Measured on Recurring Basis, Unobservable Input Changes | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [3] | 1 | (18) | 1 | (18) | 12 | 20 | (41) | (1) |
Reconciliation of the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements | |||||||||
Total (losses)/gains included in earnings — realized/unrealized | [3] | (16) | 1 | (26) | 1 | ||||
Purchases | [3] | (1) | 22 | 1 | (18) | ||||
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | [3] | (13) | 1 | (11) | 0 | ||||
Fair Value, Inputs, Level 3 [Member] | Derivative [Member] | GenOn Mid-Atlantic | |||||||||
Fair Value Asset and Liabilities, Measured on Recurring Basis, Unobservable Input Changes | |||||||||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis with Unobservable Inputs | [4] | 1 | (18) | 1 | (18) | $ 13 | $ 20 | $ (41) | $ 0 |
Reconciliation of the beginning and ending balances for financial instruments that are recognized at fair value in the consolidated financial statements | |||||||||
Total (losses)/gains included in earnings — realized/unrealized | [4] | (15) | 1 | (25) | 0 | ||||
Purchases | [4] | (3) | 22 | 0 | (18) | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset and Liability, Transfers out of Level 3 | [4],[5] | 6 | 0 | 6 | 0 | ||||
Losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets or liabilities still held as of September 30 | [4] | $ (13) | $ 1 | $ (11) | $ 0 | ||||
[1] | Consists of derivative assets and liabilities, net. | ||||||||
[2] | Transfers in/out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. | ||||||||
[3] | Consists of derivative assets and liabilities, net. | ||||||||
[4] | a) Consists of derivative assets and liabilities, net. | ||||||||
[5] | (b) Transfers out of level 3 are related to the availability of external broker quotes and are valued as of the end of the reporting period. |
Fair Value of Financial Instr30
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details 4 - Derivative FV) $ / T in Millions, $ / MWh in Millions, $ in Millions | Sep. 30, 2015USD ($)$ / T$ / MWh | Dec. 31, 2014USD ($)$ / T$ / MWh |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset, Fair Value Determined Using Valuation Techniques, Percentage | 2.00% | |
Derivative Liability, Fair Value Determined Using Valuation Techniques, Percentage | 2.00% | |
GenOn Americas Generation | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset, Fair Value Determined Using Valuation Techniques, Percentage | 2.00% | |
Derivative Liability, Fair Value Determined Using Valuation Techniques, Percentage | 2.00% | |
GenOn Mid-Atlantic | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative Asset, Fair Value Determined Using Valuation Techniques, Percentage | 1.00% | |
Derivative Liability, Fair Value Determined Using Valuation Techniques, Percentage | 1.00% | |
Commodity contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 10 | $ 46 |
Derivative Liability, Fair Value, Gross Liability | 10 | 13 |
Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | 19 | 52 |
Derivative Liability, Fair Value, Gross Liability | 18 | 32 |
Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | 1 | 26 |
Derivative Liability, Fair Value, Gross Liability | 0 | 6 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | 6 | 39 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 5 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 12 | 18 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 56 | 68 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 30 | 46 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 5 | $ 39 |
Derivative Liability, Fair Value, Gross Liability | $ 5 | $ 18 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 12 | 18 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 56 | 68 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 30 | 46 |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 26 | |
Derivative Liability, Fair Value, Gross Liability | $ 5 | |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 24 | |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 68 | |
Power Contracts [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / MWh | 47 | |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 0 | $ 3 |
Derivative Liability, Fair Value, Gross Liability | $ 10 | $ 1 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 46 | 53 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 49 | 56 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 47 | 54 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 10 | $ 3 |
Derivative Liability, Fair Value, Gross Liability | $ 9 | $ 3 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 46 | 53 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 49 | 56 |
Coal Contract [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Forward Price | $ / T | 47 | 54 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 4 | $ 4 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 7 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | (1) | (10) |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 4 | 3 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 1 | (1) |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 4 | $ 10 |
Derivative Liability, Fair Value, Gross Liability | $ 4 | $ 11 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 0 | (1) |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 1 | 1 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Americas Generation | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 0 | 0 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Commodity contracts | $ 1 | $ 0 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 1 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 0 | (1) |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 1 | 1 |
Financial Transmission Rights [Member] | Commodity contracts | Fair Value, Measurements, Recurring | GenOn Mid-Atlantic | Weighted Average [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Derivative, Auction Price | $ / MWh | 0 | 0 |
Fair Value of Financial Instr31
Fair Value of Financial Instruments (Details 5 - Credit Risk) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | ||
Derivative fair value measurements | |||
Credit reserve balance | $ (1) | $ 0 | |
Concentration of credit risk | |||
Counterparty credit exposure | 337 | ||
Collateral held (cash and letters of credit) against counterparty credit exposure | 30 | ||
Counterparty credit exposure, net | $ 307 | ||
Counterparty credit exposure before collateral expected to roll off by the end of 2014 (as a percent) | 71.00% | ||
Net exposure (as a percent) | [1] | 100.00% | |
Fair Value Inputs, Counterparty Credit Risk | 10.00% | ||
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 249 | ||
Investment grade | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 100.00% | |
Financial institutions | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 74.00% | |
Utilities, energy merchants, marketers and other | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 8.00% | |
ISOs | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 18.00% | |
GenOn Americas Generation | |||
Derivative fair value measurements | |||
Credit reserve balance | $ (1) | 0 | |
Concentration of credit risk | |||
Counterparty credit exposure | 329 | ||
Collateral held (cash and letters of credit) against counterparty credit exposure | 30 | ||
Counterparty credit exposure, net | $ 299 | ||
Counterparty credit exposure before collateral expected to roll off by the end of 2014 (as a percent) | 72.00% | ||
Net exposure (as a percent) | [1] | 100.00% | |
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 249 | ||
GenOn Americas Generation | Investment grade | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 100.00% | |
GenOn Americas Generation | Financial institutions | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 76.00% | |
GenOn Americas Generation | Utilities, energy merchants, marketers and other | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 5.00% | |
GenOn Americas Generation | ISOs | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 19.00% | |
GenOn Mid-Atlantic | |||
Derivative fair value measurements | |||
Credit reserve balance | $ 3 | $ 2 | |
Concentration of credit risk | |||
Counterparty credit exposure | 29 | ||
Collateral held (cash and letters of credit) against counterparty credit exposure | 0 | ||
Counterparty credit exposure, net | $ 29 | ||
Counterparty credit exposure before collateral expected to roll off by the end of 2014 (as a percent) | 100.00% | ||
Net exposure (as a percent) | [1] | 100.00% | |
Aggregate counterparty credit risk exposure for counterparties representing exposure above threshold percentage | $ 29 | ||
GenOn Mid-Atlantic | Investment grade | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 100.00% | |
GenOn Mid-Atlantic | Financial institutions | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 100.00% | |
GenOn Mid-Atlantic | Utilities, energy merchants, marketers and other | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 0.00% | |
GenOn Mid-Atlantic | ISOs | |||
Concentration of credit risk | |||
Net exposure (as a percent) | [1] | 0.00% | |
[1] | Counterparty credit exposure excludes transportation contracts because of the unavailability of market prices. |
Accounting for Derivative Ins32
Accounting for Derivative Instruments and Hedging Activities Disclosure Accounting for Derivative Instruments and Hedging Activities (Details 1 - Underlying Derivative) T in Millions, MWh in Millions, MMBTU in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015MWhMMBTUT | Dec. 31, 2014MWhMMBTUT | |
Long [Member] | Coal | Short Ton [Member] | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Mass | T | 7 | 8 |
Long [Member] | Coal | Short Ton [Member] | GenOn Americas Generation | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Mass | T | 4 | 5 |
Long [Member] | Coal | Short Ton [Member] | GenOn Mid-Atlantic | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Mass | T | 4 | 5 |
Long [Member] | Natural Gas [Member] | MMbtu [Member] | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | (122) | |
Short [Member] | Natural Gas [Member] | MMbtu [Member] | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | (21) | |
Short [Member] | Natural Gas [Member] | MMbtu [Member] | GenOn Americas Generation | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | (12) | (74) |
Short [Member] | Natural Gas [Member] | MMbtu [Member] | GenOn Mid-Atlantic | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | (22) | (79) |
Short [Member] | Power [Member] | M Wh [Member] | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MWh | (48) | (36) |
Short [Member] | Power [Member] | M Wh [Member] | GenOn Americas Generation | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MWh | (22) | (16) |
Short [Member] | Power [Member] | M Wh [Member] | GenOn Mid-Atlantic | ||
Derivative | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | MWh | (20) | (15) |
Accounting for Derivative Ins33
Accounting for Derivative Instruments and Hedging Activities Disclosure Accounting for Derivative Instruments and Hedging Activities (Details 2 - FV of Derivatives) - Not Designated as Hedging Instrument [Member] - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative | ||
Commodity contracts | $ 637 | $ 807 |
Derivative Liability, Fair Value, Gross Liability | 477 | 489 |
GenOn Americas Generation | ||
Derivative | ||
Commodity contracts | 914 | 1,108 |
Derivative Liability, Fair Value, Gross Liability | 747 | 809 |
GenOn Mid-Atlantic | ||
Derivative | ||
Commodity contracts | 338 | 382 |
Derivative Liability, Fair Value, Gross Liability | 177 | 150 |
Commodity Contract Current [Member] | ||
Derivative | ||
Commodity contracts | 391 | 602 |
Derivative Liability, Fair Value, Gross Liability | 326 | 417 |
Commodity Contract Current [Member] | GenOn Americas Generation | ||
Derivative | ||
Commodity contracts | 571 | 852 |
Derivative Liability, Fair Value, Gross Liability | 488 | 674 |
Commodity Contract Current [Member] | GenOn Mid-Atlantic | ||
Derivative | ||
Commodity contracts | 210 | 241 |
Derivative Liability, Fair Value, Gross Liability | 128 | 128 |
Commodity Contract Non Current [Member] | ||
Derivative | ||
Commodity contracts | 246 | 205 |
Derivative Liability, Fair Value, Gross Liability | 151 | 72 |
Commodity Contract Non Current [Member] | GenOn Americas Generation | ||
Derivative | ||
Commodity contracts | 343 | 256 |
Derivative Liability, Fair Value, Gross Liability | 259 | 135 |
Commodity Contract Non Current [Member] | GenOn Mid-Atlantic | ||
Derivative | ||
Commodity contracts | 128 | 141 |
Derivative Liability, Fair Value, Gross Liability | $ 49 | $ 22 |
Accounting for Derivative Ins34
Accounting for Derivative Instruments and Hedging Activities (Details 3 - Offsetting Derivatives) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Cash Collateral (Held) | $ (40) | $ (54) |
Cash Collateral Posted | 73 | 38 |
Gross Amounts of Recognized Assets / Liabilities | 160 | 318 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (34) | (37) |
Net Amount | 126 | 281 |
GenOn Americas Generation | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Cash Collateral (Held) | (40) | (54) |
Cash Collateral Posted | 64 | 29 |
Gross Amounts of Recognized Assets / Liabilities | 167 | 299 |
Derivative Instruments | 0 | 0 |
Cash Collateral (Held) / Posted | (40) | (37) |
Net Amount | 127 | 262 |
GenOn Mid-Atlantic | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amounts of Recognized Assets / Liabilities | 161 | |
Derivative Instruments | 0 | |
Cash Collateral (Held) / Posted | 0 | |
Net Amount | 161 | |
GenOn Mid-Atlantic | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amounts of Recognized Assets / Liabilities | 232 | |
Derivative Instruments | 0 | |
Cash Collateral (Held) / Posted | 0 | |
Net Amount | 232 | |
Non-affiliate | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 611 | 786 |
Gross Amounts of Recognized Derivative Liabilities | (445) | (451) |
Derivative Instruments | (366) | (425) |
Derivative Instruments | 366 | 425 |
Cash Collateral (Held) | (40) | (54) |
Cash Collateral Posted | 0 | 0 |
Net Amount | 205 | 307 |
Net Amount | (79) | (26) |
Non-affiliate | GenOn Americas Generation | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 611 | 787 |
Gross Amounts of Recognized Derivative Liabilities | (445) | (451) |
Derivative Instruments | (366) | (425) |
Derivative Instruments | 366 | 425 |
Cash Collateral (Held) | (40) | (54) |
Cash Collateral Posted | 0 | 0 |
Net Amount | 205 | 308 |
Net Amount | (79) | (26) |
Non-affiliate | GenOn Mid-Atlantic | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 29 | 100 |
Gross Amounts of Recognized Derivative Liabilities | (1) | |
Derivative Instruments | 0 | 0 |
Derivative Instruments | 0 | |
Cash Collateral (Held) | 0 | 0 |
Cash Collateral Posted | 0 | |
Net Amount | 29 | 100 |
Net Amount | (1) | |
Affiliate | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 26 | 21 |
Gross Amounts of Recognized Derivative Liabilities | (32) | (38) |
Derivative Instruments | (26) | (21) |
Derivative Instruments | 26 | 21 |
Cash Collateral (Held) | 0 | 0 |
Cash Collateral Posted | 6 | 17 |
Net Amount | 0 | 0 |
Net Amount | 0 | 0 |
Affiliate | GenOn Americas Generation | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 303 | 321 |
Gross Amounts of Recognized Derivative Liabilities | (302) | (358) |
Derivative Instruments | (302) | (321) |
Derivative Instruments | 302 | 321 |
Cash Collateral (Held) | 0 | 0 |
Cash Collateral Posted | 0 | 17 |
Net Amount | 1 | 0 |
Net Amount | 0 | (20) |
Affiliate | GenOn Mid-Atlantic | Commodity contracts | ||
Fair Value of Derivative Instruments/Offsetting of Derivatives by Counterparty Master Agreement Level and Collateral Received or Paid | ||
Gross Amount of Recognized Derivative Assets | 309 | 282 |
Gross Amounts of Recognized Derivative Liabilities | (177) | (149) |
Derivative Instruments | (177) | (149) |
Derivative Instruments | 177 | 149 |
Cash Collateral (Held) | 0 | 0 |
Cash Collateral Posted | 0 | 0 |
Net Amount | 132 | 133 |
Net Amount | $ 0 | $ 0 |
Accounting for Derivative Ins35
Accounting for Derivative Instruments and Hedging Activities (Details 4 - Mark to market) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized gains on settled positions related to economic hedges | $ (19) | $ (59) | $ (146) | $ (210) |
Net unrealized (losses)/gains on open positions related to economic hedges | (6) | 57 | (12) | (112) |
Total unrealized mark-to-market losses for economic hedging activities | (25) | (2) | (158) | (322) |
Reversal of previously recognized unrealized gains on settled positions related to trading activity | 0 | 0 | 0 | (1) |
Total unrealized mark-to-market losses for trading activity | 0 | 0 | 0 | (1) |
Total unrealized losses | (25) | (2) | (158) | (323) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (25) | (2) | (158) | (323) |
Credit Risk Related Contingent Features | ||||
Collateral required for contracts with adequate assurance clauses in net liability positions | 32 | 32 | ||
Collateral required for contracts with credit rating contingent features in net liability position | 1 | 1 | ||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 0 | 0 | ||
Gains (losses) included in operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (17) | 3 | (91) | (341) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (17) | 3 | (91) | (341) |
Gains (losses) included in cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (8) | (5) | (67) | 18 |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (8) | (5) | (67) | 18 |
GenOn Americas Generation | ||||
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized gains on settled positions related to economic hedges | (23) | (65) | (153) | (201) |
Net unrealized (losses)/gains on open positions related to economic hedges | 10 | 30 | 21 | (55) |
Total unrealized mark-to-market losses for economic hedging activities | (13) | (35) | (132) | (256) |
Reversal of previously recognized unrealized gains on settled positions related to trading activity | 0 | 0 | 0 | (1) |
Total unrealized mark-to-market losses for trading activity | 0 | 0 | 0 | (1) |
Total unrealized losses | (13) | (35) | (132) | (257) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (13) | (35) | (132) | (257) |
Credit Risk Related Contingent Features | ||||
Collateral required for contracts with adequate assurance clauses in net liability positions | 32 | 32 | ||
Collateral required for contracts with credit rating contingent features in net liability position | 1 | 1 | ||
Collateral due on net liability position that has not been called by a certain marginable agreement counterparty | 0 | 0 | ||
GenOn Americas Generation | Gains (losses) included in operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (4) | (27) | (84) | (266) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (4) | (27) | (84) | (266) |
GenOn Americas Generation | Gains (losses) included in cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (9) | (8) | (48) | 9 |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (9) | (8) | (48) | 9 |
GenOn Mid-Atlantic | ||||
Unrealized mark-to-market results | ||||
Reversal of previously recognized unrealized gains on settled positions related to economic hedges | (20) | (63) | (79) | (203) |
Net unrealized (losses)/gains on open positions related to economic hedges | 17 | 31 | 8 | (54) |
Total unrealized losses | (3) | (32) | (71) | (257) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (3) | (32) | (71) | (257) |
GenOn Mid-Atlantic | Gains (losses) included in operating revenues | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (1) | (24) | (29) | (267) |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | (1) | (24) | (29) | (267) |
GenOn Mid-Atlantic | Gains (losses) included in cost of operations | ||||
Unrealized mark-to-market results | ||||
Total unrealized losses | (2) | (8) | (42) | 10 |
Impact of derivative instruments to statement of operations | ||||
Total impact to statement of operations | $ (2) | $ (8) | $ (42) | $ 10 |
Debt and Capital Leases (Detail
Debt and Capital Leases (Details) - USD ($) $ in Millions | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ 220 | $ 263 |
Debt and Capital Lease Obligations | 3,079 | 3,130 |
Current portion of long-term debt and capital leases | 6 | 10 |
Long-term debt and capital leases | 3,073 | 3,120 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 2 | 3 |
Other Debt Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | 57 | 60 |
Senior Notes [Member] | Senior Unsecured Notes 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | (28) | (41) |
Debt and Capital Lease Obligations | $ 753 | 766 |
Debt Instrument, Interest Rate, Stated Percentage | 7.875% | |
Senior Notes [Member] | Senior Unsecured Notes 2018 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ (67) | (83) |
Debt and Capital Lease Obligations | $ 741 | 757 |
Debt Instrument, Interest Rate, Stated Percentage | 9.50% | |
Senior Notes [Member] | Senior Unsecured Notes 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ (53) | (60) |
Debt and Capital Lease Obligations | $ 603 | 610 |
Debt Instrument, Interest Rate, Stated Percentage | 9.875% | |
GenOn Mid-Atlantic | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 1 | 5 |
Current portion of long-term debt and capital leases | 1 | 5 |
GenOn Mid-Atlantic | Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 1 | 5 |
Debt Instrument, Interest Rate, Stated Percentage | 8.19% | |
GenOn Americas Generation | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 922 | 929 |
Current portion of long-term debt and capital leases | 1 | 5 |
Long-term debt and capital leases | 922 | 929 |
GenOn Americas Generation | Senior Notes [Member] | Senior Unsecured Notes 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | (41) | (46) |
Debt and Capital Lease Obligations | $ 491 | 496 |
Debt Instrument, Interest Rate, Stated Percentage | 8.50% | |
GenOn Americas Generation | Senior Notes [Member] | Senior Unsecured Notes 2031 [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Unamortized Discount (Premium), Net | $ (31) | (33) |
Debt and Capital Lease Obligations | $ 431 | 433 |
Debt Instrument, Interest Rate, Stated Percentage | 9.125% | |
GenOn Energy [Member] | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $ 2,156 | $ 2,196 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Income tax provision | |||||
Income before income taxes | $ 59 | $ 46 | $ 29 | $ 26 | |
Income tax expense | $ 1 | $ 0 | $ 0 | $ 2 | |
Effective tax rate | 1.70% | 0.00% | 0.00% | 7.70% | |
Statutory tax rate (as a percent) | 35.00% | 35.00% | 35.00% | 35.00% | |
GenOn Americas Generation | |||||
Income tax provision | |||||
Income before income taxes | $ 56 | $ 47 | $ 43 | $ 98 | |
Income tax expense | 0 | 0 | 0 | 0 | |
GenOn Americas Generation [Member] | |||||
Income tax provision | |||||
Income tax expense | 0 | 0 | 0 | 0 | |
GenOn Mid-Atlantic | |||||
Income tax provision | |||||
Income before income taxes | 47 | 44 | 74 | 91 | |
Income tax expense | 0 | 0 | 0 | 0 | |
Pro Forma | GenOn Americas Generation [Member] | |||||
Income tax provision | |||||
Income tax expense | 0 | 0 | 0 | 0 | |
Pro Forma | GenOn Mid-Atlantic | |||||
Income tax provision | |||||
Income tax expense | 17 | $ 16 | 27 | $ 33 | |
Deferred income taxes | $ 24 | $ 24 | $ 51 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
GenOn Americas Generation | GenOn | ||||
Related Party Transaction | ||||
Affiliate cost recorded in cost of operations | $ 20 | $ 19 | $ 63 | $ 59 |
GenOn Mid-Atlantic | GenOn | ||||
Related Party Transaction | ||||
Affiliate cost recorded in cost of operations | 15 | 15 | 45 | 48 |
Allocated cost of operations [Member] | GenOn Americas Generation | GenOn | ||||
Related Party Transaction | ||||
Affiliate cost recorded in cost of operations | 0 | 0 | 2 | 1 |
Allocated cost of operations [Member] | GenOn Mid-Atlantic | GenOn | ||||
Related Party Transaction | ||||
Affiliate cost recorded in cost of operations | 0 | 0 | 1 | 0 |
Direct cost of operations | GenOn | ||||
Related Party Transaction | ||||
Affiliate cost recorded in cost of operations | 43 | 31 | 135 | 90 |
Allocated Selling, General and Administrative [Member] | GenOn Americas Generation | GenOn | ||||
Related Party Transaction | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | 20 | 19 | 61 | 58 |
Allocated Selling, General and Administrative [Member] | GenOn Mid-Atlantic | GenOn | ||||
Related Party Transaction | ||||
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 15 | $ 15 | 44 | $ 48 |
Annual [Domain] | NRG Energy | ||||
Related Party Transaction | ||||
Service Management Costs | $ 193 |
Related Party Transactions Rela
Related Party Transactions Related Party Transactions (Details 2) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Dec. 14, 2012 | |
GenOn Americas Generation | GenOn Energy Holdings [Member] | |||
Related Party Transaction | |||
Notes Receivable, Related Parties, Current | $ 331 | $ 331 | |
Due from Affiliate, Current | 133 | 118 | |
Intercompany Credit Agreement [Member] | |||
Related Party Transaction | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500 | ||
Long-term Line of Credit | 0 | 0 | |
Letter of Credit [Member] | Intercompany Credit Agreement [Member] | NRG Energy | |||
Related Party Transaction | |||
Letters of Credit Outstanding, Amount | $ 215 | 237 | |
Term of Facility | 3 years | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | ||
Debt Instrument, Basis Spread on Libor Rate | 3.50% | ||
Letter of Credit [Member] | Intercompany Credit Agreement [Member] | GenOn Americas Generation | NRG Energy | |||
Related Party Transaction | |||
Letters of Credit Outstanding, Amount | $ 166 | $ 173 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2008 | Mar. 31, 2014 | Dec. 14, 2012 | Dec. 02, 2010 | |
MDE v. GenOn Chalk Point and GenOn Mid-Atlantic | GenOn Mid-Atlantic | Environmental Matters | ||||
Maryland Department of the Environment v. GenOn Chalk Point and GenOn Mid-Atlantic | ||||
Loss Contingency, Damages Sought, Value | $ 100,000 | |||
Chapter Eleven Proceedings | Bankruptcy | ||||
Chapter Eleven Proceedings | ||||
GenOn Energy Holdings common stock shares reserved for unresolved claims | 461,000 | |||
Number of reserved shares for disputed Chapter 11 claims converted into reserved of GenOn common stock | 1,300,000 | |||
Number of reserved shares for disputed Chapter 11 claims converted into reserved of NRG common stock | 159,000 |
Regulatory Matters Regulatory M
Regulatory Matters Regulatory Matters (Details) $ in Millions | Dec. 20, 2013USD ($) |
GenOn | |
Regulatory Matters [Line Items] | |
Regulatory payments sought | $ 22 |
Environmental Matters (Details)
Environmental Matters (Details) $ in Millions | Sep. 30, 2015USD ($) |
Environmental Matters Disclosure | |
Estimated environmental capital expenditures from 2013 through 2017 | $ 98 |
GenOn Americas Generation | |
Environmental Matters Disclosure | |
Estimated environmental capital expenditures from 2013 through 2017 | 16 |
GenOn Mid-Atlantic | |
Environmental Matters Disclosure | |
Estimated environmental capital expenditures from 2013 through 2017 | $ 10 |