VISTRA CORP., 10-Q filed on 8/5/2020
Quarterly Report
v3.20.2
Cover Page - shares
6 Months Ended
Jun. 30, 2020
Jul. 31, 2020
Document Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2020  
Document Transition Report false  
Entity File Number 001-38086  
Entity Registrant Name Vistra Corp.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 36-4833255  
Entity Address, Address Line One 6555 Sierra Drive,  
Entity Address, City or Town Irving,  
Entity Address, State or Province TX  
Entity Address, Postal Zip Code 75039  
City Area Code (214)  
Local Phone Number 812-4600  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   488,780,072
Entity Central Index Key 0001692819  
Current Fiscal Year End Date --12-31  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q2  
Amendment Flag false  
Common stock, par value $0.01 per share    
Document Information [Line Items]    
Title of 12(b) Security Common stock, par value $0.01 per share  
Trading Symbol VST  
Security Exchange Name NYSE  
Warrants    
Document Information [Line Items]    
Title of 12(b) Security Warrants  
Trading Symbol VST.WS.A  
Security Exchange Name NYSE  
v3.20.2
Condensed Consolidated Statements of Income (Loss) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Income Statement [Abstract]        
Operating revenues $ 2,509 $ 2,832 $ 5,367 $ 5,755
Fuel, purchased power costs and delivery fees (1,029) (1,139) (2,362) (2,600)
Operating costs (412) (370) (792) (755)
Depreciation and amortization (455) (384) (875) (790)
Selling, general and administrative expenses (236) (210) (488) (392)
Impairment of long-lived assets 0 0 (84) 0
Operating income 377 729 766 1,218
Other income 5 13 12 39
Other deductions (4) (2) (35) (5)
Interest expense and related charges (141) (274) (440) (495)
Impacts of Tax Receivable Agreement (6) 33 (14) 36
Equity in earnings of unconsolidated investments 1 3 4 10
Income before income taxes 232 502 293 803
Income tax expense (68) (148) (84) (225)
Net income 164 354 209 578
Net loss attributable to noncontrolling interest 2 2 13 3
Net income attributable to Vistra $ 166 $ 356 $ 222 $ 581
Weighted average shares of common stock outstanding:        
Weighted average shares of common stock outstanding - basic 488,680,442 499,778,235 488,312,503 499,213,522
Weighted average shares of common stock outstanding - diluted 490,468,735 507,500,383 490,709,932 507,248,920
Net income per weighted average share of common stock outstanding:        
Net income per weighted average share of common stock outstanding - basic $ 0.34 $ 0.71 $ 0.45 $ 1.16
Net income per weighted average share of common stock outstanding - diluted $ 0.34 $ 0.70 $ 0.45 $ 1.15
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Net income $ 164 $ 354 $ 209 $ 578
Other comprehensive income, net of tax effects:        
Effects related to pension and other retirement benefit obligations (net of tax benefit of $—, $—, $7 and $—) 1 0 (22) 1
Total other comprehensive income (loss) 1 0 (22) 1
Comprehensive income 165 354 187 579
Comprehensive loss attributable to noncontrolling interest 2 2 13 3
Comprehensive income attributable to Vistra $ 167 $ 356 $ 200 $ 582
v3.20.2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Jun. 30, 2020
Jun. 30, 2019
Statement of Comprehensive Income [Abstract]        
Effect related to pension and other retirement benefit obligations (tax) $ 0 $ 0 $ 7 $ 0
v3.20.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Millions
6 Months Ended
Jun. 30, 2020
Jun. 30, 2019
Cash flows — operating activities:    
Net income $ 209 $ 578
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization 1,022 886
Deferred income tax expense, net 73 217
Impairment of long-lived assets 84 0
Loss on disposal of investment in NELP 29 0
Unrealized net gain from mark-to-market valuations of commodities (123) (703)
Unrealized net loss from mark-to-market valuations of interest rate swaps 192 199
Asset retirement obligation accretion expense 23 27
Impacts of Tax Receivable Agreement 14 (36)
Stock-based compensation 30 24
Other, net 55 73
Changes in operating assets and liabilities:    
Margin deposits, net 58 112
Accrued interest (6) 6
Accrued taxes (59) (67)
Accrued employee incentive (70) (72)
Other operating assets and liabilities (222) (362)
Cash provided by operating activities 1,309 882
Cash flows — investing activities:    
Capital expenditures, including nuclear fuel purchases and LTSA prepayments (588) (303)
Proceeds from sales of nuclear decommissioning trust fund securities 224 292
Investments in nuclear decommissioning trust fund securities (234) (302)
Proceeds from sales of environmental allowances 88 31
Purchases of environmental allowances (173) (138)
Other, net 30 21
Cash used in investing activities (653) (399)
Cash flows — financing activities:    
Issuances of long-term debt 0 4,600
Repayments/repurchases of debt (756) (4,137)
Net borrowings under accounts receivable securitization program 0 91
Borrowings under Revolving Credit Facility 925 0
Repayments under Revolving Credit Facility (725) 0
Stock repurchase 0 (457)
Dividends paid to stockholders (132) (120)
Debt tender offer and other financing fees (10) (146)
Other, net 0 (1)
Cash used in financing activities (698) (170)
Net change in cash, cash equivalents and restricted cash (42) 313
Cash, cash equivalents and restricted cash — beginning balance 475 693
Cash, cash equivalents and restricted cash — ending balance $ 433 $ 1,006
v3.20.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Millions
Jun. 30, 2020
Dec. 31, 2019
Current assets:    
Cash and cash equivalents $ 382 $ 300
Restricted cash 27 147
Trade accounts receivable — net 1,272 1,365
Inventories 541 469
Commodity and other derivative contractual assets 1,350 1,333
Margin deposits related to commodity contracts 161 202
Prepaid expense and other current assets 304 298
Total current assets 4,037 4,114
Restricted cash 24 28
Investments 1,552 1,537
Investment in unconsolidated subsidiary 0 124
Property, plant and equipment — net 13,881 13,914
Operating lease right-of-use assets 44 44
Goodwill 2,568 2,553
Identifiable intangible assets — net 2,532 2,748
Commodity and other derivative contractual assets 277 136
Accumulated deferred income taxes 994 1,066
Other noncurrent assets 398 352
Total assets 26,307 26,616
Current liabilities:    
Short-term borrowings 550 350
Accounts receivable securitization program 450 450
Long-term debt due currently 337 277
Trade accounts payable 879 947
Commodity and other derivative contractual liabilities 1,546 1,529
Margin deposits related to commodity contracts 15 8
Accrued income taxes 10 1
Accrued taxes other than income 133 200
Accrued interest 144 151
Asset retirement obligations 138 141
Operating lease liabilities 11 14
Other current liabilities 418 506
Total current liabilities 4,631 4,574
Long-term debt, less amounts due currently 9,261 10,102
Operating lease liabilities 37 41
Commodity and other derivative contractual liabilities 599 396
Accumulated deferred income taxes 2 2
Tax Receivable Agreement obligation 468 455
Asset retirement obligation 2,314 2,097
Other noncurrent liabilities and deferred credits 951 989
Total liabilities 18,263 18,656
Commitments and Contingencies
Total equity:    
Common stock (par value — $0.01; number of shares authorized — 1,800,000,000) (shares outstanding: June 30, 2020 — 488,772,572; December 31, 2019 — 487,698,111) 5 5
Treasury stock, at cost (shares: June 30, 2020 — 41,043,224; December 31, 2019 — 41,043,224) (973) (973)
Additional paid-in-capital 9,754 9,721
Retained deficit (678) (764)
Accumulated other comprehensive loss (52) (30)
Stockholders' equity 8,056 7,959
Noncontrolling interest in subsidiary (12) 1
Total equity 8,044 7,960
Total liabilities and equity $ 26,307 $ 26,616
Common stock, par or stated value per share $ 0.01  
Common stock, shares authorized 1,800,000,000  
Common stock, shares, outstanding 488,772,572 487,698,111
Treasury stock, held in treasury 41,043,224 41,043,224
v3.20.2
Business And Significant Accounting Policies
6 Months Ended
Jun. 30, 2020
Accounting Policies [Abstract]  
Business And Significant Accounting Policies BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Description of Business

References in this report to "we," "our," "us" and "the Company" are to Vistra and/or its subsidiaries, as apparent in the context. See Glossary for defined terms.

Vistra is a holding company operating an integrated retail and electric power generation business primarily in markets throughout the U.S. Through our subsidiaries, we are engaged in competitive energy market activities including power generation, wholesale energy sales and purchases, commodity risk management and retail sales of electricity and natural gas to end users. Effective July 2, 2020, we changed our name from Vistra Energy Corp. to Vistra Corp. (Vistra) to distinguish from companies that are involved in exploring for, producing, refining, or transporting fossil fuels (many of which use "energy" in their names) and to better reflect our integrated business model, which combines a retail electricity and natural gas business focused on serving its customers with new and innovative products and services and an electric power generation business powering the communities we serve with safe, reliable power.

Vistra has six reportable segments: (i) Retail, (ii) ERCOT, (iii) PJM, (iv) NY/NE (comprising NYISO and ISO-NE), (v) MISO and (vi) Asset Closure. See Note 17 for further information concerning reportable business segments.

Ambit Transaction

On November 1, 2019, an indirect, wholly owned subsidiary of Vistra completed the acquisition of Ambit (Ambit Transaction). Because the Ambit Transaction closed on November 1, 2019, Vistra's condensed consolidated financial statements and the notes related thereto do not include the financial condition or the operating results of Ambit and its subsidiaries prior to November 1, 2019. See Note 2 for a summary of the Ambit Transaction.

Crius Transaction

On July 15, 2019, an indirect, wholly owned subsidiary of Vistra completed the acquisition of the equity interests of two wholly owned subsidiaries of Crius that indirectly owned the operating business of Crius (Crius Transaction). Because the Crius Transaction closed on July 15, 2019, Vistra's condensed consolidated financial statements and the notes related thereto do not include the financial condition or the operating results of Crius and its subsidiaries prior to July 15, 2019. See Note 2 for a summary of the Crius Transaction.

COVID-19 Pandemic

In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and the President of the United States (the President) declared the COVID-19 outbreak a national emergency. The U.S. government has deemed electricity generation, transmission and distribution as “critical infrastructure” providing essential services during this global emergency. As a provider of critical infrastructure, Vistra has an obligation to provide critically needed power to homes, businesses, hospitals and other customers. Vistra remains focused on protecting the health and well-being of its employees and the communities in which it operates while assuring the continuity of its business operations.

The Company's condensed consolidated financial statements reflect estimates and assumptions made by management that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and reported amounts of revenue and expenses during the reporting periods presented. The Company considered the impact of COVID-19 on the assumptions and estimates used and determined that there have been no material adverse impacts on the Company's results of operations for the three or six months ended June 30, 2020.

In response to the global pandemic related to COVID-19, the President signed into law the CARES Act on March 27, 2020. See Note 7 for a summary of certain anticipated tax-related impacts of the CARES Act to the Company.
Basis of Presentation

The condensed consolidated financial statements have been prepared in accordance with U.S. GAAP and on the same basis as the audited financial statements included in our 2019 Form 10-K. The condensed consolidated financial information herein reflects all adjustments which are, in the opinion of management, necessary to fairly state the results for the interim periods presented. All such adjustments are of a normal nature. All intercompany items and transactions have been eliminated in consolidation. Certain information and footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been omitted pursuant to the rules and regulations of the SEC. Because the condensed consolidated interim financial statements do not include all of the information and footnotes required by U.S. GAAP, they should be read in conjunction with the audited financial statements and related notes contained in our 2019 Form 10-K. The results of operations for an interim period may not give a true indication of results for a full year. All dollar amounts in the financial statements and tables in the notes are stated in millions of U.S. dollars unless otherwise indicated.

Use of Estimates

Preparation of financial statements requires estimates and assumptions about future events that affect the reporting of assets and liabilities at the balance sheet dates and the reported amounts of revenue and expense, including fair value measurements, estimates of expected obligations, judgments related to the potential timing of events and other estimates. In the event estimates and/or assumptions prove to be different from actual amounts, adjustments are made in subsequent periods to reflect more current information.

Adoption of Accounting Standards

In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, Simplifying the Accounting for Income Taxes (Topic 740). The ASU enhances and simplifies various aspects of the income tax accounting guidance including the elimination of certain exceptions related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. We adopted all provisions of this ASU in the first quarter of 2020, and it did not have a material impact on our financial statements.

In August 2018, the FASB issued ASU 2018-13, Changes to the Disclosure Requirements for Fair Value Measurement. The ASU removes disclosure requirements for (a) the reasons for transfers between Level 1 and Level 2, (b) the policy for timing of transfers between levels and (c) the valuation processes for Level 3. The ASU requires new disclosures around (a) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and (b) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. We adopted this ASU in the first quarter of 2020, and the updated disclosures are included in Note 14.

In August 2018, the FASB issued ASU 2018-15, Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. The ASU requires a customer in a cloud hosting arrangement that is a service contract to determine which implementation costs to capitalize and which costs to expense based on the project stage of the implementation. The ASU also requires the customer to expense the capitalized implementation costs over the term of the hosting arrangement. The customer is required to apply the existing impairment and abandonment guidance on the capitalized implementation costs. We adopted this ASU in the first quarter of 2020, and it did not have a material impact on our financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses. The ASU requires organizations to measure all expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. We adopted this ASU in the first quarter of 2020, and it did not have a material impact on our financial statements.
Changes in Accounting Standards

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in the ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The adoption of this guidance did not have a material impact on our financial statements.
v3.20.2
Acquisitions, Merger Transaction and Business Combination Accounting (Notes)
6 Months Ended
Jun. 30, 2020
Business Combinations [Abstract]  
Acquisitions, Merger Transaction and Business Combination Accounting ACQUISITIONS, MERGER TRANSACTION AND BUSINESS COMBINATION ACCOUNTING
Ambit Transaction

On November 1, 2019 (Ambit Acquisition Date), Volt Asset Company, Inc., an indirect, wholly owned subsidiary of Vistra, completed the Ambit Transaction. Ambit is an energy retailer selling both electricity and natural gas products to residential and small business customers in 17 states. Vistra funded the purchase price of $555 million (including cash acquired and net working capital) using cash on hand. All of Ambit's outstanding debt was repaid from the purchase price at closing and not assumed by Vistra.

Crius Transaction

On July 15, 2019 (Crius Acquisition Date), Vienna Acquisition B.C. Ltd., an indirect, wholly owned subsidiary of Vistra, completed the acquisition of the equity interests of two wholly owned subsidiaries of Crius that indirectly own the operating business of Crius. Crius is an energy retailer selling both electricity and natural gas products to residential and small business customers in 19 states. Vistra funded the purchase price of $400 million (including $382 million for outstanding trust units) using cash on hand. In addition, Vistra assumed $140 million of outstanding debt and acquired $26 million of cash at the closing of the Crius Transaction.

Ambit and Crius Business Combination Accounting

We believe the Ambit Transaction has (i) augmented Vistra's existing retail marketing capabilities with additional direct selling capability and a proprietary technology platform, (ii) reduced risk and aided expansion into higher margin channels by improving Vistra's match of its generation to load profile due to a high degree of overlap of Vistra's generation fleet with Ambit's approximately 11 TWh of annual load, primarily in ERCOT and PJM and (iii) enhanced the integrated value proposition through collateral and transaction efficiencies, particularly via Ambit's retail electric portfolio.

We believe the Crius Transaction has (i) reduced risk and aided expansion into higher margin channels by improving Vistra's match of its generation to load profile due to a high degree of overlap of Vistra's generation fleet with Crius' approximately 10 TWh of annual electricity load, (ii) established a platform for growth by leveraging Vistra's existing retail marketing capabilities and Crius' experienced team and (iii) enhanced the integrated value proposition through collateral and transaction efficiencies, particularly via Crius' retail electric portfolio.
Each of the Ambit Transaction and Crius Transaction, respectively, is being accounted for in accordance with ASC 805, Business Combinations (ASC 805), with identifiable assets acquired and liabilities assumed recorded at their estimated fair values on the Ambit Acquisition Date and Crius Acquisition Date, respectively. The combined results of operations are reported in our condensed consolidated financial statements beginning as of the respective Ambit Acquisition Date and Crius Acquisition Date. A summary of the techniques used to estimate the fair value of the identifiable assets and liabilities, as well as their classification within the fair value hierarchy (see Note 14), is listed below:

Working capital was valued using available market information (Level 2).
Acquired derivatives were valued using the methods described in Note 14 (Level 2 or Level 3).
Acquired retail customer relationship was valued based on discounted cash flow analysis of acquired customers and estimated attrition rates (Level 3).
Crius' long-term debt was valued using a market approach (Level 2).

The following table summarizes the allocation of the purchase price to the fair value amounts recognized for the assets acquired and liabilities assumed related to the Ambit Transaction and Crius Transaction, respectively, as of the Ambit Acquisition Date and Crius Acquisition Date, respectively. The Ambit Transaction purchase price was $555 million (including cash acquired and net working capital), and the Crius Transaction purchase price was $400 million. The Ambit Transaction purchase price allocation is ongoing and is dependent upon final valuation determinations, which have not been completed. The Ambit Transaction preliminary values included below represent our current best estimates for identifiable intangible assets, goodwill and net working capital. The Ambit Transaction purchase price allocation is preliminary and each of the values included below may change materially based upon the receipt of more detailed information, additional analyses and completed valuations. The final purchase price allocation was completed in the second quarter of 2020 for the Crius Transaction and will be completed no later than the third quarter of 2020 for the Ambit Transaction.
Ambit Transaction Preliminary Purchase Price Allocation and Crius Transaction Final Purchase Price Allocation
Ambit TransactionCrius Transaction
Updated Preliminary Purchase Price AllocationMeasurement Period Adjustments recorded through
June 30, 2020
Final
Purchase Price Allocation
Measurement Period Adjustments recorded through
June 30, 2020
Cash and cash equivalents$49  $—  $26  $—  
Net working capital35   (9) (42) 
Accumulated deferred income taxes—  —  —  (36) 
Identifiable intangible assets230  (33) 317  23  
Goodwill243  29  243  38  
Commodity and other derivative contractual assets23  —  18  —  
Other noncurrent assets13  —  17  (3) 
Total assets acquired593   612  (20) 
Identifiable intangible liabilities—  —   (34) 
Long-term debt, including amounts due currently—  —  140  —  
Commodity and other derivative contractual liabilities28  —  40  —  
Accumulated deferred income taxes—  —  14  14  
Other noncurrent liabilities and deferred credits10   16  —  
Total liabilities assumed38   212  (20) 
Identifiable net assets acquired$555  $—  $400  $—  

Dynegy Merger Transaction

On the Merger Date, Vistra and Dynegy completed the transactions contemplated by the Merger Agreement. Pursuant to the Merger Agreement, Dynegy merged with and into Vistra, with Vistra continuing as the surviving corporation. The Merger was intended to qualify as a tax-free reorganization under the IRC, so that none of Vistra, Dynegy or any of the Dynegy stockholders would recognize any gain or loss in the transaction, except that Dynegy stockholders could recognize a gain or loss with respect to cash received in lieu of fractional shares of Vistra's common stock. Vistra is the acquirer for both federal tax and accounting purposes.
On the Merger Date, each issued and outstanding share of Dynegy common stock, par value $0.01 per share, other than shares owned by Vistra or its subsidiaries, held in treasury by Dynegy or held by a subsidiary of Dynegy, was automatically converted into 0.652 shares of common stock, par value $0.01 per share, of Vistra (the Exchange Ratio), except that cash was paid in lieu of fractional shares, which resulted in Vistra issuing 94,409,573 shares of Vistra common stock to the former Dynegy stockholders, as well as converting stock options, equity-based awards, tangible equity units and warrants. The total number of Vistra shares outstanding at the close of the Merger was 522,932,453 shares. Dynegy stock options and equity-based awards outstanding immediately prior to the Merger Date were generally automatically converted upon completion of the Merger into stock options and equity-based awards, respectively, with respect to Vistra's common stock, after giving effect to the Exchange Ratio.
v3.20.2
Development of Generation Facilities (Notes)
6 Months Ended
Jun. 30, 2020
Acquisition And Development Of Generation Facilities [Abstract]  
Development of Generation Facilities DEVELOPMENT OF GENERATION FACILITIES
Battery Energy Storage Projects

Oakland — In June 2019, East Bay Community Energy (EBCE) signed a ten-year contract to receive resource adequacy capacity from the planned development of a 20 MW battery ESS at our Oakland Power Plant site in California. In April 2020, the project received necessary approvals from EBCE and from Pacific Gas and Electric Company (PG&E), and the contract was amended to increase the capacity of the planned development to a 36.25 MW battery ESS. In April 2020, the concurrent local area reliability service agreement to ensure grid reliability as part of the Oakland Clean Energy Initiative was signed and sent to the California Public Utilities Commission (CPUC) for approval. The battery ESS project is expected to enter commercial operations by January 2022.

Moss Landing — In June 2018, we announced that, subject to approval by the CPUC, we would enter into a 20-year resource adequacy contract with PG&E to develop a 300 MW battery ESS at our Moss Landing Power Plant site in California (Moss Landing Phase I). PG&E filed its application with the CPUC in June 2018 and the CPUC approved the resource adequacy contract in November 2018. At June 30, 2020, we had accumulated approximately $315 million in construction work-in-process for Moss Landing Phase I. Under the contract, PG&E will pay us a fixed monthly resource adequacy payment, while we will receive the energy revenues and incur the costs from dispatching and charging the ESS. We anticipate the Moss Landing Phase I will commence commercial operations in the fourth quarter of 2020. PG&E filed for Chapter 11 bankruptcy protection in January 2019. In November 2019, the bankruptcy court approved PG&E's motion requesting approval of the assumption of the resource adequacy contract subject to the CPUC approving the terms of an amendment to the resource adequacy contract, and the CPUC approved the terms of the amendment in January 2020. PG&E emerged from bankruptcy protection in July 2020.

In May 2020, we announced that, subject to approval by the CPUC, we would enter into a 10-year resource adequacy contract with PG&E to develop an additional 100 MW battery ESS at our Moss Landing Power Plant site (Moss Landing Phase II). PG&E filed its application with the CPUC in May 2020, and a decision is expected to be received by the end of the third quarter of 2020. Assuming the receipt of CPUC approval, we anticipate Moss Landing Phase II will commence commercial operations in the third quarter of 2021.
v3.20.2
Retirement of Generation Facilities (Notes)
6 Months Ended
Jun. 30, 2020
Retirement of Generation Facilities [Abstract]  
Retirement of generation facilities RETIREMENT OF GENERATION FACILITIES
MISO — In September 2019, we announced the settlement of a lawsuit alleging violations of opacity and particulate matter limits at our Edwards facility in Bartonville, Illinois. As part of the settlement, which was approved by the U.S. District Court for the Central District of Illinois in November 2019, we will retire the Edwards facility by the end of 2022 (see Note 12). In August 2019, we announced the planned retirement of four power plants in Illinois with a total installed nameplate generation capacity of 2,068 MW. We retired these units due to changes in the Illinois multi-pollutant standard rule (MPS rule) that require us to retire approximately 2,000 MW of generation capacity (see Note 12). In light of the provisions of the Federal Power Act and the FERC regulations thereunder, the affected subsidiaries of Vistra identified the retired units by analyzing the economics of each of our Illinois plants and designating the least economic units for retirement. Expected plant retirement expenses of $47 million, driven by severance costs, were accrued in the three months ended September 30, 2019 and were included primarily in operating costs of our Asset Closure segment. In August 2019, we remeasured our pension and OPEB plans resulting in an increase to the benefit obligation liability of $21 million, pretax other comprehensive loss of $18 million and curtailment expense of $3 million recognized as other deductions in our condensed consolidated statements of operations. The following table details the units in Illinois totaling 2,653 MW that have been or will be retired. Operational results for retired plants are included in the Asset Closure segment, which is engaged in the decommissioning and reclamation of retired plants and mines.
NameLocationFuel TypeNet Generation Capacity (MW)Number of UnitsDates Units Retired or
Expected Retirement Date
CoffeenCoffeen, ILCoal915  2November 1, 2019
Duck CreekCanton, ILCoal425  1December 15, 2019
HavanaHavana, ILCoal434  1November 1, 2019
HennepinHennepin, ILCoal294  2November 1, 2019
EdwardsBartonville, ILCoal585  2By the end of 2022
Total
2,653  8
v3.20.2
Revenue (Notes)
6 Months Ended
Jun. 30, 2020
Revenue Recognition and Deferred Revenue [Abstract]  
Revenue REVENUE
The following tables disaggregate our revenue by major source:
Three Months Ended June 30, 2020
RetailERCOTPJMNY/NEMISOAsset
Closure
CAISO/EliminationsConsolidated
Revenue from contracts with customers:
Retail energy charge in ERCOT$1,411  $—  $—  $—  $—  $—  $—  $1,411  
Retail energy charge in Northeast/Midwest540  —  —  —  —  —  —  540  
Wholesale generation revenue from ISO/RTO—  76  71  16   —  13  179  
Capacity revenue from ISO/RTO—  —  15  10   —  —  29  
Revenue from other wholesale contracts—  63  137  26  54  —  21  301  
Total revenue from contracts with customers1,951  139  223  52  61  —  34  2,460  
Other revenues:
Intangible amortization(5) —  —  —  (7) —  —  (12) 
Hedging and other revenues (a)10  62  (6) (10) (6) —  11  61  
Affiliate sales—  664  195  89  73  —  (1,021) —  
Total other revenues 726  189  79  60  —  (1,010) 49  
Total revenues$1,956  $865  $412  $131  $121  $—  $(976) $2,509  
____________
(a)Includes $69 million of unrealized net losses from mark-to-market valuations of commodity positions. See Note 17 for unrealized net gains (losses) by segment.
Three Months Ended June 30, 2019
RetailERCOTPJMNY/NEMISOAsset
Closure
CAISO/EliminationsConsolidated
Revenue from contracts with customers:
Retail energy charge in ERCOT$1,091  $—  $—  $—  $—  $—  $—  $1,091  
Retail energy charge in Northeast/Midwest315  —  —  —  —  —  —  315  
Wholesale generation revenue from ISO/RTO—  188  130  81  33  43  22  497  
Capacity revenue from ISO/RTO—  —  53  72    —  136  
Revenue from other wholesale contracts—  52  87   40    190  
Total revenue from contracts with customers1,406  240  270  159  81  47  26  2,229  
Other revenues:
Intangible amortization(10) —  —  (1) (4) —   (14) 
Hedging and other revenues (a)25  404  81  61  15  11  20  617  
Affiliate sales—  1,027  335  35  96  —  (1,493) —  
Total other revenues15  1,431  416  95  107  11  (1,472) 603  
Total revenues$1,421  $1,671  $686  $254  $188  $58  $(1,446) $2,832  
____________
(a)Includes $538 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 17 for unrealized net gains (losses) by segment.

Six Months Ended June 30, 2020
RetailERCOTPJMNY/NEMISOAsset
Closure
CAISO/EliminationsConsolidated
Revenue from contracts with customers:
Retail energy charge in ERCOT$2,665  $—  $—  $—  $—  $—  $—  $2,665  
Retail energy charge in Northeast/Midwest1,180  —  —  —  —  —  —  1,180  
Wholesale generation revenue from ISO/RTO—  174  148  58  17  —  46  443  
Capacity revenue from ISO/RTO—  —  30  35   —  —  74  
Revenue from other wholesale contracts—  113  288  38  103  —  25  567  
Total revenue from contracts with customers3,845  287  466  131  129  —  71  4,929  
Other revenues:
Intangible amortization(8) —  —  —  (11) —  —  (19) 
Hedging and other revenues (a)27  313  32  29   —  54  457  
Affiliate sales—  1,131  562  257  143  —  (2,093) —  
Total other revenues19  1,444  594  286  134  —  (2,039) 438  
Total revenues$3,864  $1,731  $1,060  $417  $263  $—  $(1,968) $5,367  
____________
(a)Includes $131 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 17 for unrealized net gains (losses) by segment.
Six Months Ended June 30, 2019
RetailERCOTPJMNY/NEMISOAsset
Closure
CAISO/EliminationsConsolidated
Revenue from contracts with customers:
Retail energy charge in ERCOT$2,116  $—  $—  $—  $—  $—  $—  $2,116  
Retail energy charge in Northeast/Midwest663  —  —  —  —  —  —  663  
Wholesale generation revenue from ISO/RTO—  435  351  276  104  110  95  1,371  
Capacity revenue from ISO/RTO—  —  120  152  18   —  296  
Revenue from other wholesale contracts—  97  159  12  55    331  
Total revenue from contracts with customers2,779  532  630  440  177  118  101  4,777  
Other revenues:
Intangible amortization(19) —  —  (3) (9) —   (29) 
Hedging and other revenues (a)46  562  171  113  29  25  61  1,007  
Affiliate sales—  1,531  590  49  160  —  (2,330) —  
Total other revenues27  2,093  761  159  180  25  (2,267) 978  
Total revenues$2,806  $2,625  $1,391  $599  $357  $143  $(2,166) $5,755  
____________
(a)Includes $697 million of unrealized net gains from mark-to-market valuations of commodity positions. See Note 17 for unrealized net gains (losses) by segment.

Performance Obligations

As of June 30, 2020, we have future performance obligations that are unsatisfied, or partially unsatisfied, relating to capacity auction volumes awarded through capacity auctions held by the ISO or RTO or contracts with customers. Therefore, an obligation exists as of the date of the results of the respective ISO or RTO capacity auction or the contract execution date. These obligations total $390 million, $826 million, $479 million, $121 million and $38 million that will be recognized, in the balance of the year ended December 31, 2020 and the years ending December 31, 2021, 2022, 2023 and 2024, respectively, and $18 million thereafter. Capacity revenues are recognized as capacity is made available to the related ISOs or RTOs or counterparties.

Accounts Receivable

The following table presents trade accounts receivable (net of allowance for uncollectible accounts) relating to both contracts with customers and other activities:
June 30,
2020
December 31, 2019
Trade accounts receivable from contracts with customers — net$1,197  $1,246  
Other trade accounts receivable — net75  119  
Total trade accounts receivable — net$1,272  $1,365  
v3.20.2
Goodwill and Identifiable Intangible Assets and Liabilities (Notes)
6 Months Ended
Jun. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Identifiable Intangible Assets GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS AND LIABILITIES
Goodwill

The following table provides information regarding our goodwill balance. There have been no impairments of goodwill.

Balance at December 31, 2019
$2,553  
Measurement period adjustments recorded in connection with the Ambit Transaction29  
Measurement period adjustments recorded in connection with the Crius Transaction(14) 
Balance at June 30, 2020
$2,568  

At June 30, 2020, the goodwill balance of $2.568 billion consisted of the following:

$1.907 billion arose in connection with our application of fresh start reporting at Emergence and was allocated entirely to our Retail reporting unit. Of the goodwill recorded at Emergence, $1.686 billion is deductible for tax purposes over 15 years on a straight-line basis.
$175 million arose in connection with the Merger, of which $122 million was allocated to our ERCOT Generation reporting unit and $53 million was allocated to our Retail reporting unit. None of the goodwill related to the Merger is deductible for tax purposes.
$243 million of goodwill arose in connection with the Crius Transaction and was allocated entirely to our Retail reporting unit. None of the goodwill related to the Crius Transaction is deductible for tax purposes.
$243 million of preliminary goodwill arose in connection with the Ambit Transaction and is allocated entirely to our Retail reporting unit pending completion of the purchase price allocation. The goodwill related to the Ambit Transaction is deductible for tax purposes over 15 years on a straight-line basis.

Identifiable Intangible Assets and Liabilities

Identifiable intangible assets are comprised of the following:
June 30, 2020December 31, 2019
Identifiable Intangible Asset
Gross
Carrying
Amount
Accumulated
Amortization
Net
Gross
Carrying
Amount
Accumulated
Amortization
Net
Retail customer relationship$2,087  $1,302  $785  $2,078  $1,151  $927  
Software and other technology-related assets364  151  213  341  125  216  
Retail and wholesale contracts272  195  77  315  182  133  
Contractual service agreements (a)55   53  59   54  
Other identifiable intangible assets (b)45  17  28  40  15  25  
Total identifiable intangible assets subject to amortization$2,823  $1,667  1,156  $2,833  $1,478  1,355  
Retail trade names (not subject to amortization)1,374  1,391  
Mineral interests (not currently subject to amortization)  
Total identifiable intangible assets$2,532  $2,748  
____________
(a)At June 30, 2020, amounts related to contractual service agreements that have become liabilities due to amortization of the economic impacts of the intangibles have been removed from both the gross carrying amount and accumulated amortization.
(b)Includes mining development costs and environmental allowances (emissions allowances and renewable energy certificates).
Identifiable intangible liabilities are comprised of the following:
Identifiable Intangible LiabilityJune 30,
2020
December 31, 2019
Contractual service agreements$127  $110  
Purchase and sale of power and capacity92  100  
Fuel and transportation purchase contracts75  76  
Total identifiable intangible liabilities$294  $286  

Expense related to finite-lived identifiable intangible assets and liabilities (including the classification in the condensed consolidated statements of operations) consisted of:
Identifiable Intangible Assets and LiabilitiesCondensed Consolidated Statements of OperationsThree Months Ended June 30,Six Months Ended June 30,
2020201920202019
Retail customer relationshipDepreciation and amortization$77  $55  $151  $111  
Software and other technology-related assetsDepreciation and amortization21  15  38  29  
Retail and wholesale contracts/purchase and sale/fuel and transportation contractsOperating revenues/fuel, purchased power costs and delivery fees13  12  15  24  
Other identifiable intangible assetsOperating revenues/fuel, purchased power costs and delivery fees/depreciation and amortization44  15  96  39  
Total intangible asset expense (a)$155  $97  $300  $203  
____________
(a)Amounts recorded in depreciation and amortization totaled $99 million and $72 million for the three months ended June 30, 2020 and 2019, respectively, and $190 million and $141 million for the six months ended June 30, 2020 and 2019, respectively. Amounts exclude contractual services agreements. Amounts include all expenses associated with environmental allowances including expenses accrued to comply with emissions allowance programs and renewable portfolio standards which are presented in fuel, purchased power costs and delivery fees on our condensed consolidated statements of operations. Emissions allowance obligations are accrued as associated electricity is generated and renewable energy credit obligations are accrued as retail electricity delivery occurs.

Estimated Amortization of Identifiable Intangible Assets and Liabilities

As of June 30, 2020, the estimated aggregate amortization expense of identifiable intangible assets and liabilities for each of the next five fiscal years is as shown below.
YearEstimated Amortization Expense
2020$369  
2021$257  
2022$161  
2023$116  
2024$78  
v3.20.2
Income Taxes (Notes)
6 Months Ended
Jun. 30, 2020
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
Income Tax Expense

The calculation of our effective tax rate is as follows:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019