Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The following tables provide a summary of the commodity derivative fair value balances recorded as of June 30, 2025 and December 31, 2024:


June 30, 2025	Economic Hedges		Collateral(a)		Netting(a)		Total
Mark-to-market derivative assets (current)	$	6,788	$	240	$	(6,314)	$	714
Mark-to-market derivative assets (noncurrent)	4,985		178		(4,637)		526
Total mark-to-market derivative assets	11,773		418		(10,951)		1,240
Mark-to-market derivative liabilities (current)	(6,940)		227		6,314		(399)
Mark-to-market derivative liabilities (noncurrent)	(5,256)		202		4,637		(417)
Total mark-to-market derivative liabilities	(12,196)		429		10,951		(816)
Total mark-to-market derivative net assets (liabilities)	$	(423)	$	847	$	—	$	424

December 31, 2024
Mark-to-market derivative assets (current)	$	5,518	$	152	$	(4,860)	$	810
Mark-to-market derivative assets (noncurrent)	3,672		120		(3,421)		371
Total mark-to-market derivative assets	9,190		272		(8,281)		1,181
Mark-to-market derivative liabilities (current)	(5,498)		173		4,860		(465)
Mark-to-market derivative liabilities (noncurrent)	(3,961)		141		3,421		(399)
Total mark-to-market derivative liabilities	(9,459)		314		8,281		(864)
Total mark-to-market derivative net assets (liabilities)	$	(269)	$	586	$	—	$	317

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(a)We net all available amounts allowed in our Consolidated Balance Sheets in accordance with authoritative guidance for derivatives. These amounts include unrealized derivative transactions with the same counterparty under legally enforceable master netting agreements and cash collateral.

Economic Hedges (Commodity Price Risk)

For the three and six months ended June 30, 2025 and 2024, we recognized the following net pre-tax commodity mark-to-market gains (losses), which are also included in the Net fair value changes related to derivatives line in the Consolidated Statements of Cash Flows.


	Three Months Ended June 30,				Six Months Ended June 30,
Income Statement Location	2025		2024		2025		2024
Operating revenues	$	89	$	192	$	(197)	$	255
Purchased power and fuel	75		397		39		523
Total	$	164	$	589	$	(158)	$	778

Disclosure of Credit Derivatives

The following tables provide information on the credit exposure for derivative instruments, NPNS and payables and receivables, net of collateral and instruments that are subject to master netting agreements, as of June 30, 2025. The amounts in the tables below exclude credit risk exposure from individual retail counterparties, forward values on non-derivative contracts and exposure through RTOs, ISOs, as well as NYMEX, ICE, NASDAQ, NGX, and Nodal commodity exchanges. The tables further delineate that exposure by credit rating of the counterparties and provide guidance on the concentration of credit risk to individual counterparties.


Rating as of June 30, 2025	Total Exposure Before Credit Collateral		Credit Collateral(a)		Net Exposure		Number of Counterparties Greater than 10% of Net Exposure	Net Exposure of Counterparties Greater than 10% of Net Exposure
Investment grade	$	1,003	$	12	$	991	1	$	175
Non-investment grade	21		6		15		—	—
No external ratings
Internally rated — investment grade	87		5		82		—	—
Internally rated — non-investment grade	188		69		119		—	—
Total	$	1,299	$	92	$	1,207	1	$	175

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(a)As of June 30, 2025, credit collateral held from counterparties where we had credit exposure included $1 million of cash and $91 million of letters of credit.


Net Credit Exposure by Type of Counterparty	As of June 30, 2025
Investor-owned utilities, marketers, power producers	$	991
Energy cooperatives and municipalities	86
Financial Institutions	84
Other	46
Total	$	1,207

Fair Value of Derivatives with Credit- Risk Related Contingent Features

The aggregate fair value of all derivative instruments with credit-risk-related contingent features in a liability position that are not fully collateralized (excluding transactions on the exchanges that are fully collateralized) is detailed in the table below:


Credit-Risk-Related Contingent Features	June 30, 2025		December 31, 2024
Gross fair value of derivative contracts containing this feature	$	(1,276)	$	(1,346)
Offsetting fair value of contracts under master netting arrangements	534		602
Net fair value of derivative contracts containing this feature	$	(742)	$	(744)

Cash Collateral and Letters of Credit on Derivative Contracts

As of June 30, 2025 and December 31, 2024, we posted or held the following amounts of cash collateral and letters of credit on derivative contracts with external counterparties, after giving consideration to offsetting derivative and non-derivative positions under master netting agreements.


	June 30, 2025		December 31, 2024
Cash collateral posted(a)	$	882	$	635
Letters of credit posted(a)	1,009		890
Cash collateral held(a)	35		49
Letters of credit held(a)	129		91
Additional collateral required in the event of a credit downgrade below investment grade (at BB+/Ba1)(b)(c)(d)	2,446		1,949

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(a)The cash collateral and letters of credit amounts are inclusive of NPNS contracts.

(b)Certain of our contracts contain provisions that allow a counterparty to request additional collateral when there has been a subjective determination that our credit quality has deteriorated, generally termed “adequate assurance”. Due to the subjective nature of these provisions, we estimate the amount of collateral that we may ultimately be required to post in relation to the maximum exposure with the counterparty.

(c)The downgrade collateral is inclusive of all contracts in a liability position regardless of accounting treatment and excludes any contracts with individual retail counterparties.

(d)A loss of investment grade credit rating would require a three-notch downgrade from their current levels of BBB+ and Baa1 at S&P and Moody's, respectively.

- Definition

Tabular disclosure of credit derivatives which includes information by sellers of credit derivatives, about each credit derivative, or each group of similar credit derivatives, including (a) the nature of the credit derivative - its term, how it arose, the events or circumstances that would require the seller to perform under the credit derivative, and the current status of the payment/performance risk of the credit derivative; (b) the maximum potential amount of future payments (undiscounted) the seller could be required to make under the credit derivative; (c) the current fair value of the credit derivative; and (d) the nature of any recourse provisions under the credit derivative, and any assets held either as collateral or by third parties. A credit derivative is a derivative instrument (1) in which one or more of its underlyings are related to the credit risk of a specified entity (or a group of entities) or an index based on the credit risk of a group of entities and (2) that exposes the seller to potential loss from credit-risk-related events specified in the contract. Examples of credit derivatives within the scope of this paragraph include, but are not limited to, credit default swaps, credit spread options, and credit index products; also includes a hybrid instrument that has an embedded credit derivative (for example, but not limited to, a credit-linked note).

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