| Segment and Significant Customer Information |
Segment and Significant Customer Information We assess our business on a regional basis due to the impact on our financial performance of the differing characteristics of these regions, particularly with respect to competition, regulation and other factors impacting supply and demand. At December 31, 2011, our reportable segments were West (including geothermal), Texas, North (including Canada and the assets purchased in the Conectiv Acquisition) and Southeast. We continue to evaluate the optimal manner in which we assess our performance including our segments and future changes may result. Commodity Margin includes our power and steam revenues, sales of purchased power and physical natural gas, capacity revenue, REC revenue, sales of surplus emission allowances, transmission revenue and expenses, fuel and purchased energy expense, fuel transportation expense, RGGI compliance and other environmental costs, and cash settlements from our marketing, hedging and optimization activities including natural gas transactions hedging future power sales that are included in mark-to-market activity, but excludes the unrealized portion of our mark-to-market activity and other revenues. Commodity Margin is a key operational measure reviewed by our chief operating decision maker to assess the performance of our segments. The tables below show our financial data for our segments for the periods indicated (in millions). | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2011 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 2,372 |
| | $ | 2,306 |
| | $ | 1,336 |
| | $ | 786 |
| | $ | — |
| | $ | 6,800 |
| Intersegment revenues | 12 |
| | 23 |
| | 7 |
| | 135 |
| | (177 | ) | | — |
| Total operating revenues | $ | 2,384 |
| | $ | 2,329 |
| | $ | 1,343 |
| | $ | 921 |
| | $ | (177 | ) | | $ | 6,800 |
| Commodity Margin | $ | 1,061 |
| | $ | 469 |
| | $ | 704 |
| | $ | 240 |
| | $ | — |
| | $ | 2,474 |
| Add: Mark-to-market commodity activity, net and other(1)(2) | 113 |
| | (102 | ) | | (13 | ) | | 1 |
| | (32 | ) | | (33 | ) | Less: | | | | | | | | | | | | Plant operating expense | 380 |
| | 235 |
| | 177 |
| | 141 |
| | (29 | ) | | 904 |
| Depreciation and amortization expense | 192 |
| | 135 |
| | 138 |
| | 90 |
| | (5 | ) | | 550 |
| Sales, general and other administrative expense | 43 |
| | 43 |
| | 24 |
| | 22 |
| | (1 | ) | | 131 |
| Other operating expenses(3) | 41 |
| | 3 |
| | 30 |
| | 5 |
| | (2 | ) | | 77 |
| (Income) from unconsolidated investments in power plants | — |
| | — |
| | (21 | ) | | — |
| | — |
| | (21 | ) | Income (loss) from operations | 518 |
| | (49 | ) | | 343 |
| | (17 | ) | | 5 |
| | 800 |
| Interest expense, net of interest income | | | | | | | | | | | 751 |
| Loss on interest rate derivatives | | | | | | | | | | | 145 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 115 |
| Loss before income taxes and discontinued operations | | | | | | | | | | | $ | (211 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2010 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 2,525 |
| | $ | 2,162 |
| | $ | 978 |
| | $ | 880 |
| | $ | — |
| | $ | 6,545 |
| Intersegment revenues | 12 |
| | 22 |
| | 6 |
| | 138 |
| | (178 | ) | | — |
| Total operating revenues | $ | 2,537 |
| | $ | 2,184 |
| | $ | 984 |
| | $ | 1,018 |
| | $ | (178 | ) | | $ | 6,545 |
| Commodity Margin | $ | 1,080 |
| | $ | 504 |
| | $ | 535 |
| | $ | 272 |
| | $ | — |
| | $ | 2,391 |
| Add: Mark-to-market commodity activity, net and other(1) | 69 |
| | 89 |
| | 21 |
| | 22 |
| | (30 | ) | | 171 |
| Less: | | | | | | | | | | | | Plant operating expense | 351 |
| | 285 |
| | 138 |
| | 123 |
| | (29 | ) | | 868 |
| Depreciation and amortization expense | 207 |
| | 150 |
| | 111 |
| | 109 |
| | (7 | ) | | 570 |
| Sales, general and other administrative expense | 55 |
| | 38 |
| | 45 |
| | 12 |
| | 1 |
| | 151 |
| Other operating expenses(3) | 59 |
| | 2 |
| | 28 |
| | 4 |
| | (2 | ) | | 91 |
| Impairment losses | 97 |
| | — |
| | — |
| | 19 |
| | — |
| | 116 |
| (Gain) on sale of assets, net | — |
| | (119 | ) | | — |
| | — |
| | — |
| | (119 | ) | (Income) from unconsolidated investments in power plants | — |
| | — |
| | (16 | ) | | — |
| | — |
| | (16 | ) | Income from operations | 380 |
| | 237 |
| | 250 |
| | 27 |
| | 7 |
| | 901 |
| Interest expense, net of interest income | | | | | | | | | | | 802 |
| Loss on interest rate derivatives | | | | | | | | | | | 223 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 106 |
| Loss before income taxes and discontinued operations | | | | | | | | | | | $ | (230 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2009 | | West | | Texas | | North | | Southeast | | Consolidation and Elimination | | Total | Revenues from external customers | $ | 3,311 |
| | $ | 1,816 |
| | $ | 558 |
| | $ | 778 |
| | $ | — |
| | $ | 6,463 |
| Intersegment revenues | 28 |
| | 63 |
| | 16 |
| | 97 |
| | (204 | ) | | — |
| Total operating revenues | $ | 3,339 |
| | $ | 1,879 |
| | $ | 574 |
| | $ | 875 |
| | $ | (204 | ) | | $ | 6,463 |
| Commodity Margin | $ | 1,245 |
| | $ | 644 |
| | $ | 268 |
| | $ | 304 |
| | $ | — |
| | $ | 2,461 |
| Add: Mark-to-market commodity activity, net and other(1) | 143 |
| | (40 | ) | | 46 |
| | (5 | ) | | (44 | ) | | 100 |
| Less: | | | | | | | | | | | | Plant operating expense | 408 |
| | 232 |
| | 91 |
| | 134 |
| | 3 |
| | 868 |
| Depreciation and amortization expense | 188 |
| | 129 |
| | 67 |
| | 80 |
| | (8 | ) | | 456 |
| Sales, general and other administrative expense | 66 |
| | 63 |
| | 18 |
| | 27 |
| | — |
| | 174 |
| Other operating expenses(3) | 73 |
| | 14 |
| | 30 |
| | 11 |
| | (32 | ) | | 96 |
| Impairment losses | 4 |
| | — |
| | — |
| | — |
| | — |
| | 4 |
| (Income) from unconsolidated investments in power plants | (32 | ) | | — |
| | (18 | ) | | — |
| | — |
| | (50 | ) | Income from operations | 681 |
| | 166 |
| | 126 |
| | 47 |
| | (7 | ) | | 1,013 |
| Interest expense, net of interest income | | | | | | | | | | | 799 |
| Debt extinguishment costs and other (income) expense, net | | | | | | | | | | | 89 |
| Income before income taxes and discontinued operations | | | | | | | | | | | $ | 125 |
|
__________ | | (1) | Mark-to-market commodity activity represents the unrealized portion of our mark-to-market activity, net, included in operating revenues and fuel and purchased energy expense on our Consolidated Statements of Operations for the years ended December 31, 2011, 2010 and 2009, as well as a non-cash gain from amortization of prepaid power sales agreements for the year ended December 31, 2009. |
| | (2) | Includes $12 million of lease levelization and $8 million of contract amortization for the year ended December 31, 2011 related to contracts that became effective in 2011. |
| | (3) | Excludes $10 million, $9 million and $5 million of RGGI compliance and other environmental costs for the years ended December 31, 2011, 2010 and 2009, respectively, which are components of Commodity Margin. |
Significant Customer For the year ended December 31, 2011, we had one significant customer, PJM Settlement, Inc., that accounted for more than 10% of our annual consolidated revenues. Our revenues of $742 million from PJM Settlement, Inc. for the year ended December 31, 2011, were attributed to our North segment. Our receivables from PJM Settlement, Inc. were $28 million as of December 31, 2011. We did not have a customer that accounted for more than 10% of our annual consolidated revenues for the years ended December 31, 2010 or 2009. |