v2.4.0.6
Segment and Significant Customer Information
 6 Months Ended
Jun. 30, 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 June 30, 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 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 June 30, 2012
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
258

 
$
188

 
$
269

 
$
164

 
$
—

 
$
879

Intersegment revenues
1

 
41

 
2

 
(6
)
 
(38
)
 
—

Total operating revenues
$
259

 
$
229

 
$
271

 
$
158

 
$
(38
)
 
$
879

Commodity Margin(1)
$
210

 
$
145

 
$
181

 
$
73

 
$
—

 
$
609

Add: Mark-to-market commodity activity, net and other(2)(3)
(76
)
 
(217
)
 
(3
)
 
(42
)
 
(6
)
 
(344
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
112

 
72

 
58

 
36

 
(7
)
 
271

Depreciation and amortization expense
49

 
34

 
34

 
22

 
(1
)
 
138

Sales, general and other administrative expense
6

 
13

 
8

 
7

 
1

 
35

Other operating expenses(4)
9

 
1

 
6

 
2

 
1

 
19

(Income) from unconsolidated investments in power plants
—

 
—

 
(5
)
 
—

 
—

 
(5
)
Income (loss) from operations
(42
)
 
(192
)
 
77

 
(36
)
 
—

 
(193
)
Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
182

Other (income) expense, net
 
 
 
 
 
 
 
 
 
 
6

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(381
)

 
Three Months Ended June 30, 2011
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
466

 
$
646

 
$
324

 
$
197

 
$
—

 
$
1,633

Intersegment revenues
1

 
5

 
5

 
40

 
(51
)
 
—

Total operating revenues
$
467

 
$
651

 
$
329

 
$
237

 
$
(51
)
 
$
1,633

Commodity Margin(1)
$
236

 
$
128

 
$
184

 
$
59

 
$
—

 
$
607

Add: Mark-to-market commodity activity, net and other(2)(3)
11

 
27

 
(5
)
 
—

 
(9
)
 
24

Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
116

 
63

 
47

 
41

 
(6
)
 
261

Depreciation and amortization expense
42

 
35

 
33

 
22

 
(1
)
 
131

Sales, general and other administrative expense
8

 
13

 
6

 
6

 
1

 
34

Other operating expenses(4)
11

 
3

 
9

 
2

 
(5
)
 
20

Loss from unconsolidated investments in power plants
—

 
—

 
2

 
—

 
—

 
2

Income (loss) from operations
70

 
41

 
82

 
(12
)
 
2

 
183

Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
190

Loss on interest rate derivatives
 
 
 
 
 
 
 
 
 
 
37

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
 
 
8

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(52
)

 
Six Months Ended June 30, 2012
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
674

 
$
544

 
$
567

 
$
330

 
$
—

 
$
2,115

Intersegment revenues
5

 
61

 
5

 
16

 
(87
)
 
—

Total operating revenues
$
679

 
$
605

 
$
572

 
$
346

 
$
(87
)
 
$
2,115

Commodity Margin(1)
$
418

 
$
254

 
$
325

 
$
129

 
$
—

 
$
1,126

Add: Mark-to-market commodity activity, net and other(2)(5)
(40
)
 
(183
)
 
9

 
(32
)
 
(14
)
 
(260
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
193

 
140

 
103

 
69

 
(13
)
 
492

Depreciation and amortization expense
99

 
69

 
67

 
45

 
(2
)
 
278

Sales, general and other administrative expense
14

 
24

 
14

 
15

 
1

 
68

Other operating expenses(4)
20

 
3

 
15

 
3

 
(1
)
 
40

(Income) from unconsolidated investments in power plants
—

 
—

 
(14
)
 
—

 
—

 
(14
)
Income (loss) from operations
52


(165
)

149


(35
)

1

 
2

Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
364

Loss on interest rate derivatives
 
 
 
 
 
 
 
 
 
 
14

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
 
 
20

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(396
)

 
Six Months Ended June 30, 2011
 
West
 
Texas
 
North
 
Southeast
 
Consolidation
and
Elimination
 
Total
Revenues from external customers
$
1,065

 
$
1,096

 
$
595

 
$
376

 
$
—

 
$
3,132

Intersegment revenues
4

 
10

 
13

 
85

 
(112
)
 
—

Total operating revenues
$
1,069

 
$
1,106

 
$
608

 
$
461

 
$
(112
)
 
$
3,132

Commodity Margin(1)
$
469

 
$
195

 
$
319

 
$
113

 
$
—

 
$
1,096

Add: Mark-to-market commodity activity, net and other(2)(5)
16

 
(33
)
 
(1
)
 
(4
)
 
(15
)
 
(37
)
Less:
 
 
 
 
 
 
 
 
 
 
 
Plant operating expense
203

 
143

 
92

 
74

 
(13
)
 
499

Depreciation and amortization expense
88

 
65

 
66

 
45

 
(2
)
 
262

Sales, general and other administrative expense
19

 
23

 
12

 
11

 
1

 
66

Other operating expenses(4)
19

 
3

 
16

 
3

 
(3
)
 
38

(Income) from unconsolidated investments in power plants
—

 
—

 
(7
)
 
—

 
—

 
(7
)
Income (loss) from operations
156


(72
)

139


(24
)

2

 
201

Interest expense, net of interest income
 
 
 
 
 
 
 
 
 
 
378

Loss on interest rate derivatives
 
 
 
 
 
 
 
 
 
 
146

Debt extinguishment costs and other (income) expense, net
 
 
 
 
 
 
 
 
 
 
108

Loss before income taxes
 
 
 
 
 
 
 
 
 
 
$
(431
)
_________
(1)
Our North segment includes Commodity Margin related to Riverside Energy Center, LLC of $24 million and $22 million for three months ended June 30, 2012 and 2011, respectively, and $32 million and $31 million for the six months ended June 30, 2012 and 2011, respectively.
(2)
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. The increase in unrealized mark-to-market losses for the three and six months ended June 30, 2012, was primarily driven by the impact of a near term increase in forward power prices and corresponding Market Heat Rate expansion in the ERCOT region during the last several days of June 2012.
(3)
Includes $(1) million and $4 million of lease levelization and $3 million and $1 million of amortization expense for the three months ended June 30, 2012 and 2011, respectively.
(4)
Excludes $2 million of RGGI compliance and other environmental costs for both the three months ended June 30, 2012 and 2011, and $5 million and $4 million for the six months ended June 30, 2012 and 2011, respectively, which are components of Commodity Margin.
(5)
Includes $(9) million and $4 million of lease levelization and $7 million and $1 million of amortization expense for the six months ended June 30, 2012 and 2011, respectively.