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Derivative Instruments (Tables)
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9 Months Ended |
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Sep. 30, 2013
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| Derivative Instruments [Abstract] |
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| Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block] |
The following tables present the fair values of our derivative instruments recorded on our Consolidated Condensed Balance Sheets by location and hedge type at September 30, 2013 and December 31, 2012 (in millions): | | | | | | | | | | | | | | September 30, 2013 | | Commodity Instruments | | Interest Rate Swaps | | Total Derivative Instruments | Balance Sheet Presentation | | | | | | Current derivative assets | $ | 471 |
| | $ | — |
| | $ | 471 |
| Long-term derivative assets | 140 |
| | 8 |
| | 148 |
| Total derivative assets | $ | 611 |
| | $ | 8 |
| | $ | 619 |
| | | | | | | Current derivative liabilities | $ | 424 |
| | $ | 48 |
| | $ | 472 |
| Long-term derivative liabilities | 237 |
| | 96 |
| | 333 |
| Total derivative liabilities | $ | 661 |
| | $ | 144 |
| | $ | 805 |
| Net derivative liabilities | $ | (50 | ) | | $ | (136 | ) | | $ | (186 | ) |
| | | | | | | | | | | | | | December 31, 2012 | | Commodity
Instruments | | Interest Rate Swaps | | Total Derivative Instruments | Balance Sheet Presentation | | | | | | Current derivative assets | $ | 339 |
| | $ | — |
| | $ | 339 |
| Long-term derivative assets | 94 |
| | 4 |
| | 98 |
| Total derivative assets | $ | 433 |
| | $ | 4 |
| | $ | 437 |
| | | | | | | Current derivative liabilities | $ | 317 |
| | $ | 40 |
| | $ | 357 |
| Long-term derivative liabilities | 133 |
| | 160 |
| | 293 |
| Total derivative liabilities | $ | 450 |
| | $ | 200 |
| | $ | 650 |
| Net derivative liabilities | $ | (17 | ) | | $ | (196 | ) | | $ | (213 | ) |
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| Schedule of Notional Amounts of Outstanding Derivative Positions |
As of September 30, 2013 and December 31, 2012, the net forward notional buy (sell) position of our outstanding commodity and interest rate swap contracts that did not qualify under the normal purchase normal sale exemption were as follows (in millions): | | | | | | | | | | Derivative Instruments | | Notional Amounts | | September 30, 2013 | | December 31, 2012 | Power (MWh) | | (25 | ) | | (16 | ) | Natural gas (MMBtu) | | (275 | ) | | 66 |
| Interest rate swaps | | $ | 1,594 |
| | $ | 1,602 |
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| Schedule of Derivative Instruments in Statement of Financial Position, Fair Value |
| | | | | | | | | | | | | | | | | | September 30, 2013 | | December 31, 2012 | | Fair Value of Derivative Assets | | Fair Value of Derivative Liabilities | | Fair Value of Derivative Assets | | Fair Value of Derivative Liabilities | Derivatives designated as cash flow hedging instruments: | | | | | | | | Interest rate swaps | $ | 8 |
| | $ | 128 |
| | $ | 4 |
| | $ | 184 |
| Total derivatives designated as cash flow hedging instruments | $ | 8 |
| | $ | 128 |
| | $ | 4 |
| | $ | 184 |
| | | | | | | | | Derivatives not designated as hedging instruments: | | | | | | | | Commodity instruments | $ | 611 |
| | $ | 661 |
| | $ | 433 |
| | $ | 450 |
| Interest rate swaps | — |
| | 16 |
| | — |
| | 16 |
| Total derivatives not designated as hedging instruments | $ | 611 |
| | $ | 677 |
| | $ | 433 |
| | $ | 466 |
| Total derivatives | $ | 619 |
| | $ | 805 |
| | $ | 437 |
| | $ | 650 |
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| Derivative Instruments Subject to Master Netting Arrangements [Table Text Block] |
The tables below set forth our net exposure to derivative instruments after offsetting amounts subject to a master netting arrangement with the same counterparty at September 30, 2013 and December 31, 2012 (in millions): | | | | | | | | | | | | | | | | | | | | September 30, 2013 | | | Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | | | Gross Amounts Presented on our Consolidated Condensed Balance Sheets | | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | | Margin/Cash (Received) Posted (1) | | Net Amount | Derivative assets: | | | | | | | | | Commodity exchange traded futures and swaps contracts | | $ | 505 |
| | $ | (454 | ) | | $ | (51 | ) | | $ | — |
| Commodity forward contracts | | 106 |
| | (73 | ) | | — |
| | 33 |
| Interest rate swaps | | 8 |
| | — |
| | — |
| | 8 |
| Total derivative assets | | $ | 619 |
| | $ | (527 | ) | | $ | (51 | ) | | $ | 41 |
| Derivative (liabilities): | | | | | | | | | Commodity exchange traded futures and swaps contracts | | $ | (566 | ) | | $ | 454 |
| | $ | 112 |
| | $ | — |
| Commodity forward contracts | | (95 | ) | | 73 |
| | 1 |
| | (21 | ) | Interest rate swaps | | (144 | ) | | — |
| | — |
| | (144 | ) | Total derivative (liabilities) | | $ | (805 | ) | | $ | 527 |
| | $ | 113 |
| | $ | (165 | ) | Net derivative assets (liabilities) | | $ | (186 | ) | | $ | — |
| | $ | 62 |
| | $ | (124 | ) |
| | | | | | | | | | | | | | | | | | | | December 31, 2012 | | | Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets | | | Gross Amounts Presented on our Consolidated Condensed Balance Sheets | | Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets | | Margin/Cash (Received) Posted (1) | | Net Amount | Derivative assets: | | | | | | | | | Commodity exchange traded futures and swaps contracts | | $ | 385 |
| | $ | (379 | ) | | $ | (6 | ) | | $ | — |
| Commodity forward contracts | | 48 |
| | (17 | ) | | (1 | ) | | 30 |
| Interest rate swaps | | 4 |
| | — |
| | — |
| | 4 |
| Total derivative assets | | $ | 437 |
| | $ | (396 | ) | | $ | (7 | ) | | $ | 34 |
| Derivative (liabilities): | | | | | | | | | Commodity exchange traded futures and swaps contracts | | $ | (424 | ) | | $ | 379 |
| | $ | 45 |
| | $ | — |
| Commodity forward contracts | | (26 | ) | | 17 |
| | 1 |
| | (8 | ) | Interest rate swaps | | (200 | ) | | — |
| | — |
| | (200 | ) | Total derivative (liabilities) | | $ | (650 | ) | | $ | 396 |
| | $ | 46 |
| | $ | (208 | ) | Net derivative assets (liabilities) | | $ | (213 | ) | | $ | — |
| | $ | 39 |
| | $ | (174 | ) |
____________ | | (1) | Negative balances represent margin deposits posted with us by our counterparties related to our derivative activities that are subject to a master netting arrangement. Positive balances reflect margin deposits posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 6 for a further discussion of our collateral. |
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| Realized Unrealized Gain Loss by Instrument |
The following tables detail the components of our total mark-to-market activity for both the net realized gain (loss) and the net unrealized gain (loss) recognized from our derivative instruments in earnings and where these components were recorded on our Consolidated Condensed Statements of Operations for the periods indicated (in millions): | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Realized gain (loss)(1) | | | | | | | | Commodity derivative instruments | $ | 27 |
| | $ | 113 |
| | $ | 60 |
| | $ | 325 |
| Interest rate swaps | — |
| | — |
| | — |
| | (157 | ) | Total realized gain (loss) | $ | 27 |
| | $ | 113 |
| | $ | 60 |
| | $ | 168 |
| | | | | | | | | Unrealized gain (loss)(2) | | | | | | | | Commodity derivative instruments | $ | 43 |
| | $ | 219 |
| | $ | 15 |
| | $ | (49 | ) | Interest rate swaps | (5 | ) | | 3 |
| | (1 | ) | | 152 |
| Total unrealized gain (loss) | $ | 38 |
| | $ | 222 |
| | $ | 14 |
| | $ | 103 |
| Total mark-to-market activity, net | $ | 65 |
| | $ | 335 |
| | $ | 74 |
| | $ | 271 |
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___________ | | (1) | Does not include the realized value associated with derivative instruments that settle through physical delivery. |
| | (2) | In addition to changes in market value on derivatives not designated as hedges, changes in unrealized gain (loss) also includes hedge ineffectiveness and adjustments to reflect changes in credit default risk exposure. |
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| Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location |
| | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | 2013 | | 2012 | | 2013 | | 2012 | Realized and unrealized gain (loss) | | | | | | | | Derivatives contracts included in operating revenues | $ | 18 |
| | $ | 329 |
| | $ | (41 | ) | | $ | 149 |
| Derivatives contracts included in fuel and purchased energy expense | 52 |
| | 3 |
| | 116 |
| | 127 |
| Interest rate swaps included in interest expense | (5 | ) | | 3 |
| | (1 | ) | | 9 |
| Loss on interest rate derivatives | — |
| | — |
| | — |
| | (14 | ) | Total mark-to-market activity, net | $ | 65 |
| | $ | 335 |
| | $ | 74 |
| | $ | 271 |
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| Derivatives Designated as Hedges |
The following table details the effect of our net derivative instruments that qualified for hedge accounting treatment and are included in OCI and AOCI for the periods indicated (in millions): | | | | | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Three Months Ended September 30, | | Gain (Loss) Recognized in OCI (Effective Portion) | | Gain (Loss) Reclassified from AOCI into Income (Effective Portion)(4) | | 2013 | | 2012 | | 2013 | | 2012 | | Affected Line Item on the Consolidated Condensed Statements of Operations | Commodity derivative instruments(1): | | | | | | | | | | Power derivative instruments | $ | — |
| | $ | (24 | ) | | $ | — |
| | $ | 24 |
| | Commodity revenue | Natural gas derivative instruments | — |
| | 15 |
| | — |
| | (15 | ) | | Commodity expense | Interest rate swaps(2) | 12 |
| | (14 | ) | | (19 | ) | (5) | (8 | ) | | Interest expense | Total(3) | $ | 12 |
| | $ | (23 | ) | | $ | (19 | ) | | $ | 1 |
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| | | | | | | | | | | | | | | | | | | | Nine Months Ended September 30, | | Nine Months Ended September 30, | | Gain (Loss) Recognized in OCI (Effective Portion) | | Gain (Loss) Reclassified from AOCI into Income (Effective Portion)(4) | | 2013 | | 2012 | | 2013 | | 2012 | | Affected Line Item on the Consolidated Condensed Statements of Operations | Commodity derivative instruments(1): | | | | | | | | | | Power derivative instruments | $ | — |
| | $ | (68 | ) | | $ | — |
| | $ | 91 |
| | Commodity revenue | Natural gas derivative instruments | — |
| | 45 |
| | — |
| | (53 | ) | | Commodity expense | Interest rate swaps(2) | 73 |
| | (48 | ) | | (38 | ) | (5) | (23 | ) | | Interest expense | Total(3) | $ | 73 |
| | $ | (71 | ) | | $ | (38 | ) | | $ | 15 |
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____________ | | (1) | There were no commodity derivative instruments designated as cash flow hedges during the three and nine months ended September 30, 2013. We recorded a gain on hedge ineffectiveness of nil and $2 million related to our commodity derivative instruments designated as cash flow hedges during the three and nine months ended September 30, 2012. |
| | (2) | We did not record any gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the three and nine months ended September 30, 2013 and 2012. |
| | (3) | We recorded income tax expense of $7 million and $4 million for the three and nine months ended September 30, 2013, respectively, and income tax benefits of $3 million and $7 million for the three and nine months ended September 30, 2012, respectively, in AOCI related to our cash flow hedging activities. |
| | (4) | Cumulative cash flow hedge losses, net of tax, remaining in AOCI were $173 million and $242 million at September 30, 2013 and December 31, 2012, respectively. |
| | (5) | Includes a loss of $7 million that was reclassified from AOCI to interest expense for each of the three and nine months ended September 30, 2013 where the hedged transactions are no longer expected to occur. |
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