v2.4.0.6
Segment and Significant Customer Information
3 Months Ended
Mar. 31, 2012
Segment and Significant Customer Information [Abstract]  
Segment and Significant Customer Information
Segment 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 March 31, 2012, our reportable segments were West (including geothermal), Texas, North (including Canada) 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).
 
Three Months Ended March 31, 2012
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
416

 
$
356

 
$
298

 
$
166

 
$

 
$
1,236

Intersegment revenues
4

 
20

 
3

 
22

 
(49
)
 

Total operating revenues
$
420

 
$
376

 
$
301

 
$
188

 
$
(49
)
 
$
1,236

Commodity Margin
$
208

 
$
109

 
$
144

 
$
56

 
$

 
$
517

Add: Mark-to-market commodity activity, net and other(1)(2)
36

 
34

 
12

 
10

 
(8
)
 
84

Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
81

 
68

 
45

 
33

 
(6
)
 
221

Depreciation and amortization expense
50

 
35

 
33

 
23

 
(1
)
 
140

Sales, general and other administrative expense
8

 
11

 
6

 
8

 

 
33

Other operating expenses(3)
11

 
2

 
9

 
1

 
(2
)
 
21

(Income) from unconsolidated investments in power plants

 

 
(9
)
 

 

 
(9
)
Income from operations
94

 
27

 
72

 
1

 
1

 
195

Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
182

Loss on interest rate derivatives
 
 
 
 
 
 
 
 
 
 
14

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
 
 
14

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(15
)

 
Three Months Ended March 31, 2011
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
599

 
$
450

 
$
271

 
$
179

 
$

 
$
1,499

Intersegment revenues
3

 
5

 
8

 
45

 
(61
)
 

Total operating revenues
$
602

 
$
455

 
$
279

 
$
224

 
$
(61
)
 
$
1,499

Commodity Margin
$
233

 
$
67

 
$
135

 
$
54

 
$

 
$
489

Add: Mark-to-market commodity activity, net and other(1)
5

 
(60
)
 
4

 
(4
)
 
(6
)
 
(61
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
87

 
80

 
45

 
33

 
(7
)
 
238

Depreciation and amortization expense
46

 
30

 
33

 
23

 
(1
)
 
131

Sales, general and other administrative expense
11

 
10

 
6

 
5

 

 
32

Other operating expenses(3)
8

 

 
7

 
1

 
2

 
18

(Income) from unconsolidated investments in power plants

 

 
(9
)
 

 

 
(9
)
Income (loss) from operations
86

 
(113
)
 
57

 
(12
)
 

 
18

Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
188

Loss on interest rate derivatives
 
 
 
 
 
 
 
 
 
 
109

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
 
 
100

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(379
)
__________
(1)
Mark-to-market commodity activity represents the change in the unrealized portion of our mark-to-market activity, net, included in operating revenues and fuel and purchased energy expense on our Consolidated Condensed Statements of Operations for the three months ended March 31, 2012 and 2011.
(2)
Includes $(8) million of lease levelization and $4 million of amortization expense for the three months ended March 31, 2012 related to contracts that became effective in June and August 2011.
(3)
Excludes $3 million and $2 million of RGGI compliance and other environmental costs for the three months ended March 31, 2012 and 2011, respectively, which are components of Commodity Margin.