NRG · 10-Q · 2026Q2 · Full report

Counterparty Credit Risk

NRG ENERGY, INC. · 2026-08-04 · Importance 38 · Surprise 24 · In source text

NRG reported $1.1 billion of counterparty credit exposure as of June 30, 2026, with approximately $[amount not provided] of collateral held and approximately $1.1 billion of net exposure. The company also managed approximately $[amount not provided] of credit-risk exposure under long-term contracts over the next five years. NRG warned that current economic conditions could impair Home and Business customers’ ability to pay electricity and gas bills, increasing delinquencies and credit losses.

Key facts

• As of June 30, 2026, counterparties’ net exposure to NRG of approximately $255 million on out-of-the-money hedges was secured by the first lien structure source
• As of June 30, 2026 counterparty credit exposure (excluding RTOs/ISOs/registered exchanges and certain long-term agreements) was $1.1 billion and NRG held collateral (cash and letters of credit) against those positions of $[amount] million resulting in a Net Exposure of $1.1 billion. source
• As of June 30, 2026, market operations had $441 million of total cash collateral outstanding and $2.5 billion outstanding in letters of credit to third parties; funds deposited by counterparties were $167 million in cash and $308 million of letters of credit source
• Approximately % of the Company’s exposure before collateral is expected to roll off by the end of 2027 (percentage redacted in excerpt). source
• Based on valuation techniques, as of June 30, 2026 aggregate credit risk exposure managed by NRG to certain long-term counterparties (primarily solar under Renewable PPAs) was approximately $[amount] million for the next five years (specific $ redacted). source
• As of June 30, 2026 the fair value credit reserve resulted in a $[amount] million increase in fair value, primarily within cost of operations; as of December 31, 2025 the credit reserve was immaterial (specific $ redacted). source

Impact estimates