Texas | 75-2669310 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
1601 Bryan Street, Dallas, TX 75201-3411 | (214) 812-4600 | |
(Address of principal executive offices) (Zip Code) | (Registrant's telephone number, including area code) |
PAGE | ||
GLOSSARY | ||
PART I. | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II. | ||
Item 1. | ||
Item 1A. | ||
Item 4. | ||
Item 6. | ||
2011 Form 10-K | EFH Corp.’s Annual Report on Form 10-K for the year ended December 31, 2011 | |
Adjusted EBITDA | Adjusted EBITDA means EBITDA adjusted to exclude noncash items, unusual items and other adjustments allowable under certain of our debt arrangements. See the definition of EBITDA below. Adjusted EBITDA and EBITDA are not recognized terms under US GAAP and, thus, are non-GAAP financial measures. We are providing Adjusted EBITDA in this Form 10-Q (see reconciliations in Exhibits 99(b), 99(c) and 99(d)) solely because of the important role that Adjusted EBITDA plays in respect of certain covenants contained in our debt arrangements. We do not intend for Adjusted EBITDA (or EBITDA) to be an alternative to net income as a measure of operating performance or an alternative to cash flows from operating activities as a measure of liquidity or an alternative to any other measure of financial performance presented in accordance with US GAAP. Additionally, we do not intend for Adjusted EBITDA (or EBITDA) to be used as a measure of free cash flow available for management's discretionary use, as the measure excludes certain cash requirements such as interest payments, tax payments and other debt service requirements. Because not all companies use identical calculations, our presentation of Adjusted EBITDA (and EBITDA) may not be comparable to similarly titled measures of other companies. | |
CAIR | Clean Air Interstate Rule | |
Competitive Electric segment | the EFH Corp. business segment that consists principally of TCEH | |
CREZ | Competitive Renewable Energy Zone | |
CSAPR | the final Cross-State Air Pollution Rule issued by the EPA in July 2011 (see Note 7 to Financial Statements) | |
EBITDA | earnings (net income) before interest expense, income taxes, depreciation and amortization | |
EFCH | Energy Future Competitive Holdings Company, a direct, wholly-owned subsidiary of EFH Corp. and the direct parent of TCEH, and/or its subsidiaries, depending on context | |
EFH Corp. | Energy Future Holdings Corp., a holding company, and/or its subsidiaries, depending on context, whose major subsidiaries include TCEH and Oncor | |
EFH Corp. Senior Notes | Refers, collectively, to EFH Corp.'s 10.875% Senior Notes due November 1, 2017 (EFH Corp. 10.875% Notes) and EFH Corp.'s 11.25%/12.00% Senior Toggle Notes due November 1, 2017 (EFH Corp. Toggle Notes). | |
EFH Corp. Senior Secured Notes | Refers, collectively, to EFH Corp.'s 9.75% Senior Secured Notes due October 15, 2019 (EFH Corp. 9.75% Notes) and EFH Corp.'s 10.000% Senior Secured Notes due January 15, 2020 (EFH Corp. 10% Notes). | |
EFIH | Energy Future Intermediate Holding Company LLC, a direct, wholly-owned subsidiary of EFH Corp. and the direct parent of Oncor Holdings | |
EFIH Finance | EFIH Finance Inc., a direct, wholly-owned subsidiary of EFIH, formed for the sole purpose of serving as co-issuer with EFIH of certain debt securities | |
EFIH Notes | Refers, collectively, to EFIH's and EFIH Finance's 9.75% Senior Secured Notes due October 15, 2019 (EFIH 9.75% Notes), 10.000% Senior Secured Notes due December 1, 2020 (EFIH 10% Notes), 11% Senior Secured Second Lien Notes due October 1, 2021 (EFIH 11% Notes) and 11.75% Senior Secured Second Lien Notes due March 1, 2022 (EFIH 11.75% Notes). | |
EPA | US Environmental Protection Agency | |
ERCOT | Electric Reliability Council of Texas, the independent system operator and the regional coordinator of various electricity systems within Texas | |
GAAP | generally accepted accounting principles | |
GWh | gigawatt-hours | |
kWh | kilowatt-hours | |
LIBOR | London Interbank Offered Rate, an interest rate at which banks can borrow funds, in marketable size, from other banks in the London interbank market | |
Luminant | subsidiaries of TCEH engaged in competitive market activities consisting of electricity generation and wholesale energy sales and purchases as well as commodity risk management and trading activities, all largely in Texas | |
market heat rate | Heat rate is a measure of the efficiency of converting a fuel source to electricity. Market heat rate is the implied relationship between wholesale electricity prices and natural gas prices and is calculated by dividing the wholesale market price of electricity, which is based on the price offer of the marginal supplier in ERCOT (generally natural gas plants), by the market price of natural gas. Forward wholesale electricity market price quotes in ERCOT are generally limited to two or three years; accordingly, forward market heat rates are generally limited to the same time period. Forecasted market heat rates for time periods for which market price quotes are not available are based on fundamental economic factors and forecasts, including electricity supply, demand growth, capital costs associated with new construction of generation supply, transmission development and other factors. | |
MATS | the Mercury and Air Toxics Standard finalized by the EPA in December 2011 and published in February 2012 | |
Merger | The transaction referred to in the Agreement and Plan of Merger, dated February 25, 2007, under which Texas Holdings agreed to acquire EFH Corp., which was completed on October 10, 2007. | |
MMBtu | million British thermal units | |
Moody's | Moody's Investors Services, Inc. (a credit rating agency) | |
MW | megawatts | |
MWh | megawatt-hours | |
NERC | North American Electric Reliability Corporation | |
NOx | nitrogen oxides | |
NRC | US Nuclear Regulatory Commission | |
NYMEX | the New York Mercantile Exchange, a physical commodity futures exchange | |
Oncor | Oncor Electric Delivery Company LLC, a direct, majority-owned subsidiary of Oncor Holdings and an indirect subsidiary of EFH Corp., and/or its consolidated bankruptcy-remote financing subsidiary, Oncor Electric Delivery Transition Bond Company LLC, depending on context, that is engaged in regulated electricity transmission and distribution activities | |
Oncor Holdings | Oncor Electric Delivery Holdings Company LLC, a direct, wholly-owned subsidiary of EFIH and the direct majority owner of Oncor, and/or its subsidiaries, depending on context | |
Oncor Ring-Fenced Entities | Oncor Holdings and its direct and indirect subsidiaries, including Oncor | |
OPEB | other postretirement employee benefits | |
PUCT | Public Utility Commission of Texas | |
purchase accounting | The purchase method of accounting for a business combination as prescribed by US GAAP, whereby the cost or "purchase price" of a business combination, including the amount paid for the equity and direct transaction costs are allocated to identifiable assets and liabilities (including intangible assets) based upon their fair values. The excess of the purchase price over the fair values of assets and liabilities is recorded as goodwill. | |
Regulated Delivery segment | the EFH Corp. business segment that consists primarily of our investment in Oncor | |
REP | retail electric provider | |
RRC | Railroad Commission of Texas, which among other things, has oversight of lignite mining activity in Texas | |
S&P | Standard & Poor's Ratings Services, a division of the McGraw-Hill Companies Inc. (a credit rating agency) | |
SEC | US Securities and Exchange Commission |
Securities Act | Securities Act of 1933, as amended | |
SG&A | selling, general and administrative | |
SO2 | sulfur dioxide | |
Sponsor Group | Refers, collectively, to certain investment funds affiliated with Kohlberg Kravis Roberts & Co. L.P., TPG Management, L.P. and GS Capital Partners, an affiliate of Goldman, Sachs & Co., that have an ownership interest in Texas Holdings. | |
TCEH | Texas Competitive Electric Holdings Company LLC, a direct, wholly-owned subsidiary of EFCH and an indirect subsidiary of EFH Corp., and/or its subsidiaries, depending on context, that are engaged in electricity generation and wholesale and retail energy markets activities, and whose major subsidiaries include Luminant and TXU Energy | |
TCEH Finance | TCEH Finance, Inc., a direct, wholly-owned subsidiary of TCEH, formed for the sole purpose of serving as co-issuer with TCEH of certain debt securities | |
TCEH Senior Notes | Refers, collectively, to TCEH's and TCEH Finance's 10.25% Senior Notes due November 1, 2015 and 10.25% Senior Notes due November 1, 2015, Series B (collectively, TCEH 10.25% Notes) and TCEH's and TCEH Finance's 10.50%/11.25% Senior Toggle Notes due November 1, 2016 (TCEH Toggle Notes). | |
TCEH Senior Secured Facilities | Refers, collectively, to the TCEH Term Loan Facilities, TCEH Revolving Credit Facility, TCEH Letter of Credit Facility and TCEH Commodity Collateral Posting Facility. See Note 6 to Financial Statements for details of these facilities. | |
TCEH Senior Secured Notes | TCEH's and TCEH Finance's 11.5% Senior Secured Notes due October 1, 2020 | |
TCEH Senior Secured Second Lien Notes | Refers, collectively, to TCEH's and TCEH Finance's 15% Senior Secured Second Lien Notes due April 1, 2021 and TCEH's and TCEH Finance's 15% Senior Secured Second Lien Notes due April 1, 2021, Series B. | |
TCEQ | Texas Commission on Environmental Quality | |
Texas Holdings | Texas Energy Future Holdings Limited Partnership, a limited partnership controlled by the Sponsor Group, that owns substantially all of the common stock of EFH Corp. | |
Texas Holdings Group | Texas Holdings and its direct and indirect subsidiaries other than the Oncor Ring-Fenced Entities | |
Texas Transmission | Texas Transmission Investment LLC, a limited liability company that owns a 19.75% equity interest in Oncor and is not affiliated with EFH Corp., any of its subsidiaries or any member of the Sponsor Group | |
TRE | Texas Reliability Entity, Inc., an independent organization that develops reliability standards for the ERCOT region and monitors and enforces compliance with NERC standards and ERCOT protocols | |
TXU Energy | TXU Energy Retail Company LLC, a direct, wholly-owned subsidiary of TCEH that is a REP in competitive areas of ERCOT and is engaged in the retail sale of electricity to residential and business customers | |
US | United States of America | |
VIE | variable interest entity |
Item 1. | FINANCIAL STATEMENTS |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(millions of dollars) | |||||||||||||||
Operating revenues | $ | 1,385 | $ | 1,679 | $ | 2,607 | $ | 3,351 | |||||||
Fuel, purchased power costs and delivery fees | (674 | ) | (838 | ) | (1,302 | ) | (1,668 | ) | |||||||
Net gain (loss) from commodity hedging and trading activities | (136 | ) | 190 | 232 | 95 | ||||||||||
Operating costs | (228 | ) | (247 | ) | (435 | ) | (463 | ) | |||||||
Depreciation and amortization | (343 | ) | (371 | ) | (679 | ) | (740 | ) | |||||||
Selling, general and administrative expenses | (157 | ) | (178 | ) | (315 | ) | (342 | ) | |||||||
Franchise and revenue-based taxes | (17 | ) | (22 | ) | (36 | ) | (42 | ) | |||||||
Other income (Note 14) | 12 | 33 | 19 | 75 | |||||||||||
Other deductions (Note 14) | (6 | ) | (106 | ) | (12 | ) | (110 | ) | |||||||
Interest income | — | — | 1 | 2 | |||||||||||
Interest expense and related charges (Note 14) | (1,018 | ) | (1,301 | ) | (1,804 | ) | (1,945 | ) | |||||||
Loss before income taxes and equity in earnings of unconsolidated subsidiaries | (1,182 | ) | (1,161 | ) | (1,724 | ) | (1,787 | ) | |||||||
Income tax benefit | 403 | 384 | 583 | 599 | |||||||||||
Equity in earnings of unconsolidated subsidiaries (net of tax) (Note 2) | 83 | 72 | 141 | 122 | |||||||||||
Net loss | $ | (696 | ) | $ | (705 | ) | $ | (1,000 | ) | $ | (1,066 | ) |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
(millions of dollars) | |||||||||||||||
Net loss | $ | (696 | ) | $ | (705 | ) | $ | (1,000 | ) | $ | (1,066 | ) | |||
Other comprehensive income, net of tax effects: | |||||||||||||||
Effects related to pension and other retirement benefit obligations (net of tax expense of $3, $3, $5 and $6) | 4 | 5 | 8 | 10 | |||||||||||
Cash flow hedges derivative value net loss related to hedged transactions recognized during the period and reported in: | |||||||||||||||
Net loss (net of tax benefit of $1, $2, $2 and $6) | 1 | 5 | 4 | 12 | |||||||||||
Equity in earnings of unconsolidated subsidiaries (net of tax benefit of $— in all periods) | — | — | 1 | — | |||||||||||
Total other comprehensive income | 5 | 10 | 13 | 22 | |||||||||||
Comprehensive loss | $ | (691 | ) | $ | (695 | ) | $ | (987 | ) | $ | (1,044 | ) |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
(millions of dollars) | |||||||
Cash flows — operating activities: | |||||||
Net loss | $ | (1,000 | ) | $ | (1,066 | ) | |
Adjustments to reconcile net loss to cash provided by operating activities: | |||||||
Depreciation and amortization | 777 | 868 | |||||
Deferred income tax benefit, net | (594 | ) | (671 | ) | |||
Unrealized net loss from mark-to-market valuations of commodity positions | 765 | 385 | |||||
Unrealized net (gain) loss from mark-to-market valuations of interest rate swaps (Note 6) | (9 | ) | 261 | ||||
Interest expense on toggle notes payable in additional principal (Notes 6 and 14) | 117 | 110 | |||||
Amortization of debt related costs, discounts, fair value discounts and losses on dedesignated cash flow hedges (Note 14) | 122 | 137 | |||||
Third-party fees related to debt amendment and extension transactions (Note 14) (reported as financing) | — | 100 | |||||
Equity in earnings of unconsolidated subsidiaries | (141 | ) | (122 | ) | |||
Distributions of earnings from unconsolidated subsidiaries | 69 | 32 | |||||
Debt extinguishment gains (Note 6) | — | (25 | ) | ||||
Bad debt expense (Note 5) | 11 | 26 | |||||
Accretion expense related primarily to mining reclamation obligations (Note 14) | 18 | 27 | |||||
Stock-based incentive compensation expense | 7 | 2 | |||||
Net (gain) loss on sale of assets | 1 | (3 | ) | ||||
Other, net | 1 | (3 | ) | ||||
Changes in operating assets and liabilities: | |||||||
Margin deposits, net | 59 | 155 | |||||
Other operating assets and liabilities | (152 | ) | (31 | ) | |||
Cash provided by operating activities | 51 | 182 | |||||
Cash flows — financing activities: | |||||||
Issuances of long-term debt (Note 6) | 1,150 | 1,750 | |||||
Repayments/repurchases of long-term debt (Note 6) | (24 | ) | (981 | ) | |||
Net short-term borrowings under accounts receivable securitization program (Note 5) | 38 | 12 | |||||
Decrease in other short-term borrowings (Note 6) | (485 | ) | (503 | ) | |||
Decrease in note payable to unconsolidated subsidiary (Note 12) | (20 | ) | (18 | ) | |||
Sale/leaseback of equipment | 15 | — | |||||
Contributions from noncontrolling interests | 4 | 8 | |||||
Debt amendment, exchange and issuance costs and discounts, including third-party fees expensed | (38 | ) | (853 | ) | |||
Cash provided by (used in) financing activities | 640 | (585 | ) | ||||
Cash flows — investing activities: | |||||||
Capital expenditures | (404 | ) | (280 | ) | |||
Nuclear fuel purchases | (96 | ) | (107 | ) | |||
Proceeds from sales of assets | 1 | 53 | |||||
Changes in restricted cash | 64 | (22 | ) | ||||
Proceeds from sales of environmental allowances and credits | — | 1 | |||||
Purchases of environmental allowances and credits | (13 | ) | (9 | ) | |||
Proceeds from sales of nuclear decommissioning trust fund securities | 31 | 1,784 | |||||
Investments in nuclear decommissioning trust fund securities | (38 | ) | (1,792 | ) | |||
Other, net | 1 | 21 | |||||
Cash used in investing activities | (454 | ) | (351 | ) | |||
Net change in cash and cash equivalents | 237 | (754 | ) | ||||
Cash and cash equivalents — beginning balance | 826 | 1,534 | |||||
Cash and cash equivalents — ending balance | $ | 1,063 | $ | 780 |
June 30, 2012 | December 31, 2011 | ||||||
(millions of dollars) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 1,063 | $ | 826 | |||
Restricted cash (Note 14) | 65 | 129 | |||||
Trade accounts receivable — net (includes $544 and $524 in pledged amounts related to a VIE (Notes 3 and 5)) | 769 | 767 | |||||
Inventories (Note 14) | 449 | 418 | |||||
Commodity and other derivative contractual assets (Note 10) | 2,841 | 3,025 | |||||
Margin deposits related to commodity positions | 23 | 56 | |||||
Other current assets | 76 | 82 | |||||
Total current assets | 5,286 | 5,303 | |||||
Restricted cash (Note 14) | 947 | 947 | |||||
Receivable from unconsolidated subsidiary (Note 12) | 1,201 | 1,235 | |||||
Investment in unconsolidated subsidiary (Note 2) | 5,794 | 5,720 | |||||
Other investments (Note 14) | 750 | 709 | |||||
Property, plant and equipment — net (Note 14) | 19,111 | 19,427 | |||||
Goodwill (Note 4) | 6,152 | 6,152 | |||||
Identifiable intangible assets — net (Note 4) | 1,806 | 1,845 | |||||
Commodity and other derivative contractual assets (Note 10) | 1,211 | 1,552 | |||||
Other noncurrent assets, primarily unamortized debt amendment and issuance costs | 1,182 | 1,187 | |||||
Total assets | $ | 43,440 | $ | 44,077 | |||
LIABILITIES AND EQUITY | |||||||
Current liabilities: | |||||||
Short-term borrowings (includes $142 and $104 related to a VIE (Notes 3 and 6)) | $ | 327 | $ | 774 | |||
Long-term debt due currently (Note 6) | 106 | 47 | |||||
Trade accounts payable | 507 | 574 | |||||
Payables due to unconsolidated subsidiary (Note 12) | 197 | 177 | |||||
Commodity and other derivative contractual liabilities (Note 10) | 2,094 | 1,950 | |||||
Margin deposits related to commodity positions | 1,088 | 1,061 | |||||
Accumulated deferred income taxes | 63 | 54 | |||||
Accrued interest | 522 | 480 | |||||
Other current liabilities | 362 | 497 | |||||
Total current liabilities | 5,266 | 5,614 | |||||
Accumulated deferred income taxes | 3,407 | 3,989 | |||||
Commodity and other derivative contractual liabilities (Note 10) | 1,811 | 1,692 | |||||
Notes or other liabilities due to unconsolidated subsidiary (Note 12) | 377 | 363 | |||||
Long-term debt, less amounts due currently (Note 6) | 36,561 | 35,360 | |||||
Other noncurrent liabilities and deferred credits (Note 14) | 4,751 | 4,816 | |||||
Total liabilities | 52,173 | 51,834 | |||||
Commitments and Contingencies (Note 7) | |||||||
Equity (Note 8): | |||||||
EFH Corp. shareholders' equity | (8,832 | ) | (7,852 | ) | |||
Noncontrolling interests in subsidiaries | 99 | 95 | |||||
Total equity | (8,733 | ) | (7,757 | ) | |||
Total liabilities and equity | $ | 43,440 | $ | 44,077 |
1. | BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES |
2. | EQUITY METHOD INVESTMENTS |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating revenues | $ | 828 | $ | 756 | $ | 1,611 | $ | 1,462 | |||||||
Operation and maintenance expenses | (285 | ) | (259 | ) | (581 | ) | (518 | ) | |||||||
Depreciation and amortization | (192 | ) | (178 | ) | (376 | ) | (350 | ) | |||||||
Taxes other than income taxes | (98 | ) | (93 | ) | (200 | ) | (190 | ) | |||||||
Other income | 7 | 7 | 14 | 15 | |||||||||||
Other deductions | (1 | ) | (3 | ) | (3 | ) | (5 | ) | |||||||
Interest income | 12 | 8 | 21 | 18 | |||||||||||
Interest expense and related charges | (92 | ) | (88 | ) | (183 | ) | (177 | ) | |||||||
Income before income taxes | 179 | 150 | 303 | 255 | |||||||||||
Income tax expense | (75 | ) | (60 | ) | (126 | ) | (102 | ) | |||||||
Net income | 104 | 90 | 177 | 153 | |||||||||||
Net income attributable to noncontrolling interests | (21 | ) | (18 | ) | (36 | ) | (31 | ) | |||||||
Net income attributable to Oncor Holdings | $ | 83 | $ | 72 | $ | 141 | $ | 122 |
June 30, 2012 | December 31, 2011 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 33 | $ | 12 | |||
Restricted cash | 48 | 57 | |||||
Trade accounts receivable — net | 342 | 303 | |||||
Trade accounts and other receivables from affiliates | 191 | 179 | |||||
Income taxes receivable from EFH Corp. | 6 | — | |||||
Inventories | 74 | 71 | |||||
Accumulated deferred income taxes | 73 | 73 | |||||
Prepayments and other current assets | 79 | 74 | |||||
Total current assets | 846 | 769 | |||||
Restricted cash | 16 | 16 | |||||
Receivable from TCEH related to nuclear plant decommissioning | 260 | 225 | |||||
Other investments | 75 | 73 | |||||
Property, plant and equipment — net | 11,017 | 10,569 | |||||
Goodwill | 4,064 | 4,064 | |||||
Note receivable due from TCEH | 117 | 138 | |||||
Regulatory assets — net | 1,461 | 1,505 | |||||
Other noncurrent assets | 83 | 73 | |||||
Total assets | $ | 17,939 | $ | 17,432 | |||
LIABILITIES | |||||||
Current liabilities: | |||||||
Short-term borrowings | $ | 935 | $ | 392 | |||
Long-term debt due currently | 121 | 494 | |||||
Trade accounts payable — nonaffiliates | 158 | 197 | |||||
Income taxes payable to EFH Corp. | — | 2 | |||||
Accrued taxes other than income | 90 | 151 | |||||
Accrued interest | 98 | 108 | |||||
Other current liabilities | 101 | 112 | |||||
Total current liabilities | 1,503 | 1,456 | |||||
Accumulated deferred income taxes | 1,745 | 1,688 | |||||
Investment tax credits | 26 | 28 | |||||
Long-term debt, less amounts due currently | 5,460 | 5,144 | |||||
Other noncurrent liabilities and deferred credits | 1,804 | 1,832 | |||||
Total liabilities | $ | 10,538 | $ | 10,148 |
3. | CONSOLIDATION OF VARIABLE INTEREST ENTITIES |
Assets: | June 30, 2012 | December 31, 2011 | Liabilities: | June 30, 2012 | December 31, 2011 | |||||||||||
Cash and cash equivalents | $ | 11 | $ | 10 | Short-term borrowings | $ | 142 | $ | 104 | |||||||
Accounts receivable | 544 | 525 | Trade accounts payable | 1 | 1 | |||||||||||
Property, plant and equipment | 138 | 132 | Other current liabilities | 10 | 9 | |||||||||||
Other assets, including $2 million of current assets in both periods | 6 | 6 | ||||||||||||||
Total assets | $ | 699 | $ | 673 | Total liabilities | $ | 153 | $ | 114 |
4. | GOODWILL AND IDENTIFIABLE INTANGIBLE ASSETS |
Goodwill before impairment charges | $ | 18,342 | |
Accumulated impairment charges | (12,190 | ) | |
Balance at June 30, 2012 and December 31, 2011 | $ | 6,152 |
June 30, 2012 | December 31, 2011 | |||||||||||||||||||||||
Identifiable Intangible Asset | Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Retail customer relationship | $ | 463 | $ | 361 | $ | 102 | $ | 463 | $ | 344 | $ | 119 | ||||||||||||
Favorable purchase and sales contracts | 548 | 304 | 244 | 548 | 288 | 260 | ||||||||||||||||||
Capitalized in-service software | 325 | 153 | 172 | 318 | 137 | 181 | ||||||||||||||||||
Environmental allowances and credits | 592 | 387 | 205 | 582 | 375 | 207 | ||||||||||||||||||
Mining development costs | 158 | 68 | 90 | 140 | 55 | 85 | ||||||||||||||||||
Total intangible assets subject to amortization | $ | 2,086 | $ | 1,273 | 813 | $ | 2,051 | $ | 1,199 | 852 | ||||||||||||||
Trade name (not subject to amortization) | 955 | 955 | ||||||||||||||||||||||
Mineral interests (not currently subject to amortization) | 38 | 38 | ||||||||||||||||||||||
Total intangible assets | $ | 1,806 | $ | 1,845 |
Identifiable Intangible Asset | Income Statement Line | Segment | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Retail customer relationship | Depreciation and amortization | Competitive Electric | $ | 8 | $ | 13 | $ | 17 | $ | 26 | ||||||||||
Favorable purchase and sales contracts | Operating revenues/fuel, purchased power costs and delivery fees | Competitive Electric | 8 | 8 | 15 | 17 | ||||||||||||||
Capitalized in-service software | Depreciation and amortization | All | 10 | 11 | 19 | 20 | ||||||||||||||
Environmental allowances and credits | Fuel, purchased power costs and delivery fees | Competitive Electric | 4 | 21 | 9 | 43 | ||||||||||||||
Mining development costs | Depreciation and amortization | Competitive Electric | 7 | 4 | 13 | 6 | ||||||||||||||
Total amortization expense | $ | 37 | $ | 57 | $ | 73 | $ | 112 |
Year | Amortization Expense | |||
2012 | $ | 133 | ||
2013 | $ | 125 | ||
2014 | $ | 108 | ||
2015 | $ | 98 | ||
2016 | $ | 80 |
5. | TRADE ACCOUNTS RECEIVABLE AND ACCOUNTS RECEIVABLE SECURITIZATION PROGRAM |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Program fees | $ | 2 | $ | 2 | $ | 4 | $ | 4 | |||||||
Program fees as a percentage of average funding (annualized) | 7.8 | % | 9.8 | % | 7.4 | % | 8.0 | % |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash collections on accounts receivable | $ | 2,111 | $ | 2,501 | |||
Face amount of new receivables purchased | (2,131 | ) | (2,595 | ) | |||
Discount from face amount of purchased receivables | 5 | 5 | |||||
Program fees paid to funding entities | (4 | ) | (4 | ) | |||
Servicing fees paid to Service Co. for recordkeeping and collection services | (1 | ) | (1 | ) | |||
Increase (decrease) in subordinated notes payable | (18 | ) | 82 | ||||
Cash flows provided to originator under the program | $ | (38 | ) | $ | (12 | ) |
June 30, 2012 | December 31, 2011 | ||||||
Wholesale and retail trade accounts receivable, including $544 and $524 in pledged retail receivables | $ | 787 | $ | 794 | |||
Allowance for uncollectible accounts | (18 | ) | (27 | ) | |||
Trade accounts receivable — reported in balance sheet | $ | 769 | $ | 767 |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Allowance for uncollectible accounts receivable at beginning of period | $ | 27 | $ | 64 | |||
Increase for bad debt expense | 11 | 26 | |||||
Decrease for account write-offs | (20 | ) | (36 | ) | |||
Reversal of reserve related to counterparty bankruptcy (Note 14) | — | (26 | ) | ||||
Allowance for uncollectible accounts receivable at end of period | $ | 18 | $ | 28 |
6. | SHORT-TERM BORROWINGS AND LONG-TERM DEBT |
June 30, 2012 | |||||||||||||||||
Facility | Maturity Date | Facility Limit | Letters of Credit | Cash Borrowings | Availability | ||||||||||||
TCEH Revolving Credit Facility (a) | October 2013 | $ | 645 | $ | — | $ | 58 | $ | 587 | ||||||||
TCEH Revolving Credit Facility (a) | October 2016 | 1,409 | — | 127 | 1,282 | ||||||||||||
TCEH Letter of Credit Facility (b) | October 2017 (b) | 1,062 | — | 1,062 | — | ||||||||||||
Subtotal TCEH | $ | 3,116 | $ | — | $ | 1,247 | $ | 1,869 | |||||||||
TCEH Commodity Collateral Posting Facility (c) | December 2012 | Unlimited | $ | — | $ | — | Unlimited |
(a) | Facility used for letters of credit and borrowings for general corporate purposes. Borrowings are classified as short-term borrowings. At June 30, 2012, borrowings under the facility maturing October 2013 bear interest at LIBOR plus 3.50%, and a commitment fee is payable quarterly in arrears at a rate per annum equal to 0.50% of the average daily unused portion of the facility. At June 30, 2012, borrowings under the facility maturing October 2016 bear interest at LIBOR plus 4.50%, and a commitment fee is payable quarterly in arrears at a rate per annum equal to 1.00% of the average daily unused portion of the facility. |
(b) | Facility, $42 million of which matures in October 2014, used for issuing letters of credit for general corporate purposes, including, but not limited to, providing collateral support under hedging arrangements and other commodity transactions that are not eligible for funding under the TCEH Commodity Collateral Posting Facility. The borrowings under this facility have been recorded by TCEH as restricted cash that supports issuances of letters of credit and are classified as long-term debt. At June 30, 2012, the restricted cash totaled $947 million, after reduction for a $115 million letter of credit drawn in 2009 related to an office building financing. At June 30, 2012, the restricted cash supports $866 million in letters of credit outstanding, leaving $81 million in available letter of credit capacity. |
(c) | Revolving facility used to fund cash collateral posting requirements for specified volumes of natural gas hedges totaling approximately 40 million MMBtu at June 30, 2012. At June 30, 2012, there were no borrowings under this facility. |
June 30, 2012 | December 31, 2011 | ||||||
EFH Corp. (parent entity) | |||||||
9.75% Fixed Senior Secured First Lien Notes due October 15, 2019 | $ | 115 | $ | 115 | |||
10% Fixed Senior Secured First Lien Notes due January 15, 2020 | 1,061 | 1,061 | |||||
10.875% Fixed Senior Notes due November 1, 2017 (a) | 196 | 196 | |||||
11.25 / 12.00% Senior Toggle Notes due November 1, 2017 (a) | 464 | 438 | |||||
5.55% Fixed Series P Senior Notes due November 15, 2014 (a) | 326 | 326 | |||||
6.50% Fixed Series Q Senior Notes due November 15, 2024 (a) | 740 | 740 | |||||
6.55% Fixed Series R Senior Notes due November 15, 2034 (a) | 744 | 744 | |||||
8.82% Building Financing due semiannually through February 11, 2022 (b) | 57 | 61 | |||||
Unamortized fair value premium related to Building Financing (b)(c) | 13 | 14 | |||||
Capital lease obligations | — | 1 | |||||
Unamortized premium | 6 | 6 | |||||
Unamortized fair value discount (c) | (413 | ) | (430 | ) | |||
Total EFH Corp. | 3,309 | 3,272 | |||||
EFIH | |||||||
9.75% Fixed Senior Secured First Lien Notes due October 15, 2019 | 141 | 141 | |||||
10% Fixed Senior Secured First Lien Notes due December 1, 2020 | 2,180 | 2,180 | |||||
11% Senior Secured Second Lien Notes due October 1, 2021 | 406 | 406 | |||||
11.75% Senior Secured Second Lien Notes due March 1, 2022 | 1,150 | — | |||||
Unamortized discount | (11 | ) | — | ||||
Total EFIH | 3,866 | 2,727 | |||||
EFCH | |||||||
9.58% Fixed Notes due in annual installments through December 4, 2019 | 41 | 41 | |||||
8.254% Fixed Notes due in quarterly installments through December 31, 2021 | 41 | 43 | |||||
1.266% Floating Rate Junior Subordinated Debentures, Series D due January 30, 2037 (d) | 1 | 1 | |||||
8.175% Fixed Junior Subordinated Debentures, Series E due January 30, 2037 | 8 | 8 | |||||
Unamortized fair value discount (c) | (8 | ) | (8 | ) | |||
Total EFCH | 83 | 85 | |||||
TCEH | |||||||
Senior Secured Facilities: | |||||||
3.741% TCEH Term Loan Facilities maturing October 10, 2014 (d)(e) | 3,809 | 3,809 | |||||
3.745% TCEH Letter of Credit Facility maturing October 10, 2014 (d) | 42 | 42 | |||||
0.195% TCEH Commodity Collateral Posting Facility maturing December 31, 2012 (f) | — | — | |||||
4.741% TCEH Term Loan Facilities maturing October 10, 2017 (a)(d)(e) | 15,351 | 15,351 | |||||
4.745% TCEH Letter of Credit Facility maturing October 10, 2017 (d) | 1,020 | 1,020 | |||||
11.5% Senior Secured Notes due October 1, 2020 | 1,750 | 1,750 | |||||
15% Senior Secured Second Lien Notes due April 1, 2021 | 336 | 336 | |||||
15% Senior Secured Second Lien Notes due April 1, 2021, Series B | 1,235 | 1,235 | |||||
10.25% Fixed Senior Notes due November 1, 2015 (a) | 1,833 | 1,833 | |||||
10.25% Fixed Senior Notes due November 1, 2015, Series B (a) | 1,292 | 1,292 | |||||
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 | 1,656 | 1,568 | |||||
Pollution Control Revenue Bonds: | |||||||
Brazos River Authority: | |||||||
5.40% Fixed Series 1994A due May 1, 2029 | 39 | 39 | |||||
7.70% Fixed Series 1999A due April 1, 2033 | 111 | 111 |
June 30, 2012 | December 31, 2011 | ||||||
6.75% Fixed Series 1999B due September 1, 2034, remarketing date April 1, 2013 (g) | 16 | 16 | |||||
7.70% Fixed Series 1999C due March 1, 2032 | 50 | 50 | |||||
8.25% Fixed Series 2001A due October 1, 2030 | 71 | 71 | |||||
8.25% Fixed Series 2001D-1 due May 1, 2033 | 171 | 171 | |||||
0.245% Floating Series 2001D-2 due May 1, 2033 (h) | 97 | 97 | |||||
0.251% Floating Taxable Series 2001I due December 1, 2036 (i) | 62 | 62 | |||||
0.245% Floating Series 2002A due May 1, 2037 (h) | 45 | 45 | |||||
6.75% Fixed Series 2003A due April 1, 2038, remarketing date April 1, 2013 (g) | 44 | 44 | |||||
6.30% Fixed Series 2003B due July 1, 2032 | 39 | 39 | |||||
6.75% Fixed Series 2003C due October 1, 2038 | 52 | 52 | |||||
5.40% Fixed Series 2003D due October 1, 2029, remarketing date October 1, 2014 (g) | 31 | 31 | |||||
5.00% Fixed Series 2006 due March 1, 2041 | 100 | 100 | |||||
Sabine River Authority of Texas: | |||||||
6.45% Fixed Series 2000A due June 1, 2021 | 51 | 51 | |||||
5.20% Fixed Series 2001C due May 1, 2028 | 70 | 70 | |||||
5.80% Fixed Series 2003A due July 1, 2022 | 12 | 12 | |||||
6.15% Fixed Series 2003B due August 1, 2022 | 45 | 45 | |||||
Trinity River Authority of Texas: | |||||||
6.25% Fixed Series 2000A due May 1, 2028 | 14 | 14 | |||||
Unamortized fair value discount related to pollution control revenue bonds (c) | (116 | ) | (120 | ) | |||
Other: | |||||||
7.46% Fixed Secured Facility Bonds with amortizing payments through January 2015 | 14 | 28 | |||||
7% Fixed Senior Notes due March 15, 2013 | 5 | 5 | |||||
Capital leases | 71 | 63 | |||||
Other | 3 | 3 | |||||
Unamortized discount | (11 | ) | (11 | ) | |||
Unamortized fair value discount (c) | (1 | ) | (1 | ) | |||
Total TCEH | 29,409 | 29,323 | |||||
Total EFH Corp. consolidated | 36,667 | 35,407 | |||||
Less amount due currently | (106 | ) | (47 | ) | |||
Total long-term debt | $ | 36,561 | $ | 35,360 |
(a) | Excludes the following amounts that are held by EFH Corp. or EFIH and eliminated in consolidation: |
June 30, 2012 | December 31, 2011 | ||||||
EFH Corp. 10.875% Fixed Senior Notes due November 1, 2017 | $ | 1,591 | $ | 1,591 | |||
EFH Corp. 11.25 / 12.00% Senior Toggle Notes due November 1, 2017 | 2,951 | 2,784 | |||||
EFH Corp. 5.55% Fixed Series P Senior Notes due November 15, 2014 | 45 | 45 | |||||
EFH Corp. 6.50% Fixed Series Q Senior Notes due November 15, 2024 | 6 | 6 | |||||
EFH Corp. 6.55% Fixed Series R Senior Notes due November 15, 2034 | 3 | 3 | |||||
TCEH 4.741% Term Loan Facilities maturing October 10, 2017 | 19 | 19 | |||||
TCEH 10.25% Fixed Senior Notes due November 1, 2015 | 213 | 213 | |||||
TCEH 10.25% Fixed Senior Notes due November 1, 2015, Series B | 150 | 150 | |||||
Total | $ | 4,978 | $ | 4,811 |
(b) | This financing is the obligation of a subsidiary of EFH Corp. (parent entity), is secured by a letter of credit and will be serviced with cash drawn by the beneficiary of the letter of credit. |
(c) | Amount represents unamortized fair value adjustments recorded under purchase accounting. |
(d) | Interest rates in effect at June 30, 2012. |
(e) | Interest rate swapped to fixed on $18.57 billion principal amount of maturities through October 2014 and up to an aggregate $12.6 billion principal amount from October 2014 through October 2017. |
(f) | Interest rate in effect at June 30, 2012, excluding a quarterly maintenance fee of $11 million. See "Credit Facilities" above for more information. |
(g) | These series are in the multiannual interest rate mode and are subject to mandatory tender prior to maturity on the mandatory remarketing date. On such date, the interest rate and interest rate period will be reset for the bonds. |
(h) | Interest rates in effect at June 30, 2012. These series are in a daily interest rate mode and are classified as long-term as they are supported by long-term irrevocable letters of credit. |
(i) | Interest rate in effect at June 30, 2012. This series is in a weekly interest rate mode and is classified as long-term as it is supported by long-term irrevocable letters of credit. |
• | $3.809 billion of TCEH Term Loan Facilities maturing in October 2014 with interest payable at LIBOR plus 3.50%; |
• | $15.351 billion of TCEH Term Loan Facilities maturing in October 2017 with interest payable at LIBOR plus 4.50%; |
• | $42 million of cash borrowed under the TCEH Letter of Credit Facility maturing in October 2014 with interest payable at LIBOR plus 3.50% (see discussion under "Credit Facilities" above); |
• | $1.020 billion of cash borrowed under the TCEH Letter of Credit Facility maturing in October 2017 with interest payable at LIBOR plus 4.50% (see discussion under "Credit Facilities" above), and |
• | Amounts borrowed under the TCEH Revolving Credit Facility, which may be reborrowed from time to time until October 2013 with respect to $645 million of commitments and until October 2016 with respect to $1.409 billion of commitments, totaled $58 million and $127 million, respectively, at June 30, 2012. |
Fixed Rates | Expiration Dates | Notional Amount | ||
5.5% — 9.3% | October 2012 through October 2014 | $18.57 billion (a) | ||
6.8% — 9.0% | October 2015 through October 2017 | $12.60 billion (b) |
(a) | Swaps related to an aggregate $1.1 billion principal amount of debt expired in 2012. Per the terms of the transactions, the nominal amount of swaps entered into in 2011 grew by $1.02 billion, substantially offsetting the expired swaps. |
(b) | These swaps are effective from October 2014 through October 2017. The $12.6 billion notional amount of swaps includes $3 billion that expires in October 2015 and the remainder in October 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Realized net loss | $ | (168 | ) | $ | (173 | ) | $ | (337 | ) | $ | (333 | ) | |||
Unrealized net gain (loss) | (107 | ) | (403 | ) | 4 | (261 | ) | ||||||||
Total | $ | (275 | ) | $ | (576 | ) | $ | (333 | ) | $ | (594 | ) |
7. | COMMITMENTS AND CONTINGENCIES |
• | $448 million to support risk management and trading margin requirements in the normal course of business, including over-the-counter hedging transactions and collateral postings with ERCOT; |
• | $208 million to support floating rate pollution control revenue bond debt with an aggregate principal amount of $204 million (the letters of credit are available to fund the payment of such debt obligations and expire in 2014); |
• | $71 million to support TCEH's REP's financial requirements with the PUCT, and |
• | $139 million for miscellaneous credit support requirements. |
8. | EQUITY |
EFH Corp. Shareholders’ Equity | |||||||||||||||||||||||
Common Stock (a) | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2011 | $ | 2 | $ | 7,947 | $ | (15,579 | ) | $ | (222 | ) | $ | 95 | $ | (7,757 | ) | ||||||||
Net loss | — | — | (1,000 | ) | — | — | (1,000 | ) | |||||||||||||||
Effects of stock-based incentive compensation plans | — | 8 | — | — | — | 8 | |||||||||||||||||
Change in unrecognized gains related to pension and OPEB plans | — | — | — | 8 | — | 8 | |||||||||||||||||
Net effects of cash flow hedges | — | — | — | 4 | — | 4 | |||||||||||||||||
Net effects of cash flow hedges – Oncor (b) | — | — | — | 1 | — | 1 | |||||||||||||||||
Investment by noncontrolling interests | — | — | — | — | 4 | 4 | |||||||||||||||||
Other | — | — | (1 | ) | — | — | (1 | ) | |||||||||||||||
Balance at June 30, 2012 | $ | 2 | $ | 7,955 | $ | (16,580 | ) | $ | (209 | ) | $ | 99 | $ | (8,733 | ) |
(a) | Authorized shares totaled 2,000,000,000 at June 30, 2012. Outstanding shares totaled 1,678,739,245 and 1,679,539,245 at June 30, 2012 and December 31, 2011, respectively. |
(b) | Represents recognition in equity in earnings of unconsolidated subsidiaries of previous losses on interest rate hedge transactions entered into by Oncor. |
EFH Corp. Shareholders’ Equity | |||||||||||||||||||||||
Common Stock (a) | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2010 | $ | 2 | $ | 7,937 | $ | (13,666 | ) | $ | (263 | ) | $ | 79 | $ | (5,911 | ) | ||||||||
Net loss | — | — | (1,066 | ) | — | — | (1,066 | ) | |||||||||||||||
Effects of stock-based incentive compensation plans | — | 1 | — | — | — | 1 | |||||||||||||||||
Change in unrecognized gains related to pension and OPEB plans | — | — | — | 10 | — | 10 | |||||||||||||||||
Net effects of cash flow hedges | — | — | — | 12 | — | 12 | |||||||||||||||||
Investment by noncontrolling interests | — | — | — | — | 8 | 8 | |||||||||||||||||
Balance at June 30, 2011 | $ | 2 | $ | 7,938 | $ | (14,732 | ) | $ | (241 | ) | $ | 87 | $ | (6,946 | ) |
(a) | Authorized shares totaled 2,000,000,000 at June 30, 2011. Outstanding shares totaled 1,675,484,695 and 1,671,812,118 at June 30, 2011 and December 31, 2010, respectively. |
9. | FAIR VALUE MEASUREMENTS |
• | Level 1 valuations use quoted prices in active markets for identical assets or liabilities that are accessible at the measurement date. An active market is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis. Our Level 1 assets and liabilities include exchange-traded commodity contracts. For example, a significant number of our derivatives are NYMEX futures and swaps transacted through clearing brokers for which prices are actively quoted. |
• | Level 2 valuations use inputs, in the absence of actively quoted market prices, that are observable for the asset or liability, either directly or indirectly. Level 2 inputs include: (a) quoted prices for similar assets or liabilities in active markets, (b) quoted prices for identical or similar assets or liabilities in markets that are not active, (c) inputs other than quoted prices that are observable for the asset or liability such as interest rates and yield curves observable at commonly quoted intervals and (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means. Our Level 2 valuations utilize over-the-counter broker quotes, quoted prices for similar assets or liabilities that are corroborated by correlations or other mathematical means and other valuation inputs. For example, our Level 2 assets and liabilities include forward commodity positions at locations for which over-the-counter broker quotes are available. |
• | Level 3 valuations use unobservable inputs for the asset or liability. Unobservable inputs are used to the extent observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. We use the most meaningful information available from the market combined with internally developed valuation methodologies to develop our best estimate of fair value. For example, our Level 3 assets and liabilities include certain derivatives whose values are derived from pricing models that utilize multiple inputs to the valuations, including inputs that are not observable or easily corroborated through other means. See further discussion below. |
Level 1 | Level 2 | Level 3 (a) | Reclassification (b) | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Commodity contracts | $ | 377 | $ | 3,281 | $ | 217 | $ | 33 | $ | 3,908 | |||||||||
Interest rate swaps | — | 144 | — | — | 144 | ||||||||||||||
Nuclear decommissioning trust – equity securities (c) | 231 | 136 | — | — | 367 | ||||||||||||||
Nuclear decommissioning trust – debt securities (c) | — | 252 | — | — | 252 | ||||||||||||||
Total assets | $ | 608 | $ | 3,813 | $ | 217 | $ | 33 | $ | 4,671 | |||||||||
Liabilities: | |||||||||||||||||||
Commodity contracts | $ | 389 | $ | 887 | $ | 205 | $ | 33 | $ | 1,514 | |||||||||
Interest rate swaps | — | 2,391 | — | — | 2,391 | ||||||||||||||
Total liabilities | $ | 389 | $ | 3,278 | $ | 205 | $ | 33 | $ | 3,905 |
(a) | See table below for description of Level 3 assets and liabilities. |
(b) | Fair values are determined on a contract basis, but certain contracts result in a current asset and a noncurrent liability, or vice versa, as presented in the balance sheet. |
(c) | The nuclear decommissioning trust investment is included in the other investments line on the balance sheet. See Note 14. |
Level 1 | Level 2 | Level 3 (a) | Reclassification (b) | Total | |||||||||||||||
Assets: | |||||||||||||||||||
Commodity contracts | $ | 395 | $ | 3,915 | $ | 124 | $ | 1 | $ | 4,435 | |||||||||
Interest rate swaps | — | 142 | — | — | 142 | ||||||||||||||
Nuclear decommissioning trust – equity securities (c) | 208 | 124 | — | — | 332 | ||||||||||||||
Nuclear decommissioning trust – debt securities (c) | — | 242 | — | — | 242 | ||||||||||||||
Total assets | $ | 603 | $ | 4,423 | $ | 124 | $ | 1 | $ | 5,151 | |||||||||
Liabilities: | |||||||||||||||||||
Commodity contracts | $ | 446 | $ | 727 | $ | 71 | $ | 1 | $ | 1,245 | |||||||||
Interest rate swaps | — | 2,397 | — | — | 2,397 | ||||||||||||||
Total liabilities | $ | 446 | $ | 3,124 | $ | 71 | $ | 1 | $ | 3,642 |
(a) | See table below for description of Level 3 assets and liabilities. |
(b) | Fair values are determined on a contract basis, but certain contracts result in a current asset and a noncurrent liability, or vice versa, as presented in the balance sheet. |
(c) | The nuclear decommissioning trust investment is included in the other investments line on the balance sheet. See Note 14. |
Fair Value | ||||||||||||||||||
Contract Type (a) | Assets | Liabilities | Total | Valuation Technique | Significant Unobservable Input | Range (b) | ||||||||||||
Electricity purchases and sales | $ | 33 | $ | (71 | ) | $ | (38 | ) | Valuation Model | Volumes (c) | 0.5 to 0.6 terawatt-hours | |||||||
Illiquid pricing locations (d) | $25 to $40 MWh | |||||||||||||||||
Hourly price curve shape (e) | $15 to $55 MWh | |||||||||||||||||
Probability of default (f) | 0% to 30% | |||||||||||||||||
Recovery rate (g) | 0% to 40% | |||||||||||||||||
Electricity spread options | 142 | (64 | ) | 78 | Option Pricing Model | Gas to power correlation (h) | 25% to 90% | |||||||||||
Power volatility (i) | 15% to 60% | |||||||||||||||||
Electricity congestion revenue rights | 27 | (2 | ) | 25 | Market Approach (j) | Illiquid price differences between settlement points (k) | $0.00 to $1.35 | |||||||||||
Coal purchases | — | (54 | ) | (54 | ) | Market Approach (j) | Illiquid price variances between mines (l) | $0.00 to $1.00 | ||||||||||
Probability of default (f) | 5% to 40% | |||||||||||||||||
Recovery rate (g) | 0% to 40% | |||||||||||||||||
Other | 15 | (14 | ) | 1 | ||||||||||||||
Total | $ | 217 | $ | (205 | ) | $ | 12 |
(a) | Electricity purchase and sales contracts include wind generation agreements and hedging positions in the ERCOT west region, as well as power contracts, the valuations of which include unobservable inputs related to the hourly shaping of the price curve. Electricity spread options consist of physical electricity call options. Electricity congestion revenue rights contracts consist of forward purchase contracts (swaps and options) used to hedge electricity price differences between settlement points within ERCOT. Coal purchase contracts relate to western (Powder River Basin) coal. |
(b) | The range of the inputs may be influenced by factors such as time of day, delivery period, season and location. |
(c) | Based on the historical average annual range of wind generation. |
(d) | Based on the historical range of forward average monthly ERCOT West Hub prices. |
(e) | Based on the historical range of forward average hourly ERCOT North Hub prices. |
(f) | Estimate of the range of probabilities of default based on past experience and the length of the contract as well as our and counterparties' credit ratings. |
(g) | Estimate of the default recovery rate based on historical corporate rates. |
(h) | Estimate of the historical range based on forward natural gas and on-peak power prices for the ERCOT hubs most relevant to our spread options. |
(i) | Based on historical forward price changes. |
(j) | While we use the market approach, there is either insufficient market data to consider the valuation liquid or the significance of credit reserves or non-performance risk adjustments results in a Level 3 designation. |
(k) | Based on the historical price differences between settlement points in ERCOT North Hub. |
(l) | Based on the historical range of price variances between mine locations. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Balance at beginning of period | $ | (5 | ) | $ | 4 | $ | 53 | $ | 342 | ||||||
Total realized and unrealized gains (losses) included in net loss | 52 | (30 | ) | (17 | ) | (48 | ) | ||||||||
Purchases, issuances and settlements (a): | |||||||||||||||
Purchases | 5 | 53 | 13 | 64 | |||||||||||
Issuances | (4 | ) | (2 | ) | (12 | ) | (3 | ) | |||||||
Settlements | 3 | (2 | ) | 23 | 13 | ||||||||||
Transfers into Level 3 (b) | (39 | ) | — | (46 | ) | — | |||||||||
Transfers out of Level 3 (b) | — | — | (2 | ) | (345 | ) | |||||||||
Net change (c) | 17 | 19 | (41 | ) | (319 | ) | |||||||||
Balance at end of period | $ | 12 | $ | 23 | $ | 12 | $ | 23 | |||||||
Net change in unrealized gains (losses) included in net loss relating to instruments held at end of period | 27 | (26 | ) | (32 | ) | (24 | ) |
(a) | Settlements reflect reversals of unrealized mark-to-market valuations previously recognized in net income. Purchases and issuances reflect option premiums paid or received. |
(b) | Includes transfers due to changes in the observability of significant inputs. Transfers in and out occur at the end of each quarter, which is when the assessments are performed. Transfers out during 2012 reflect increased observability of pricing related to certain congestion revenue rights. Transfers in during 2012 were driven by an increase in nonperformance risk adjustments related to a coal purchase contract as well as certain power contracts that include unobservable inputs related to the hourly shaping of the price curve. Transfers out during 2011 were driven by the effect of an increase in option market trading activity on our natural gas collars for 2014. All Level 3 transfers during 2011 and 2012 are in and out of Level 2. |
(c) | Substantially all changes in values of commodity contracts are reported in the income statement in net gain (loss) from commodity hedging and trading activities. Activity excludes changes in fair value in the month the position settled as well as amounts related to positions entered into and settled in the same month. |
10. | COMMODITY AND OTHER DERIVATIVE CONTRACTUAL ASSETS AND LIABILITIES |
June 30, 2012 | |||||||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
Commodity contracts | Interest rate swaps | Commodity contracts | Interest rate swaps | Total | |||||||||||||||
Current assets | $ | 2,681 | $ | 144 | $ | 16 | $ | — | $ | 2,841 | |||||||||
Noncurrent assets | 1,210 | — | 1 | — | 1,211 | ||||||||||||||
Current liabilities | (7 | ) | — | (1,386 | ) | (701 | ) | (2,094 | ) | ||||||||||
Noncurrent liabilities | (9 | ) | — | (112 | ) | (1,690 | ) | (1,811 | ) | ||||||||||
Net assets (liabilities) | $ | 3,875 | $ | 144 | $ | (1,481 | ) | $ | (2,391 | ) | $ | 147 |
December 31, 2011 | |||||||||||||||||||
Derivative assets | Derivative liabilities | ||||||||||||||||||
Commodity contracts | Interest rate swaps | Commodity contracts | Interest rate swaps | Total | |||||||||||||||
Current assets | $ | 2,883 | $ | 142 | $ | — | $ | — | $ | 3,025 | |||||||||
Noncurrent assets | 1,552 | — | — | — | 1,552 | ||||||||||||||
Current liabilities | (1 | ) | — | (1,162 | ) | (787 | ) | (1,950 | ) | ||||||||||
Noncurrent liabilities | — | — | (82 | ) | (1,610 | ) | (1,692 | ) | |||||||||||
Net assets (liabilities) | $ | 4,434 | $ | 142 | $ | (1,244 | ) | $ | (2,397 | ) | $ | 935 |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
Derivative (income statement presentation) | 2012 | 2011 | 2012 | 2011 | ||||||||||||
Commodity contracts (Net gain (loss) from commodity hedging and trading activities) (a) | $ | (133 | ) | $ | 189 | $ | 225 | $ | 171 | |||||||
Interest rate swaps (Interest expense and related charges) (b) | (276 | ) | (576 | ) | (332 | ) | (594 | ) | ||||||||
Net gain (loss) | $ | (409 | ) | $ | (387 | ) | $ | (107 | ) | $ | (423 | ) |
(a) | Amount represents changes in fair value of positions in the derivative portfolio during the period, as realized amounts related to positions settled are assumed to equal reversals of previously recorded unrealized amounts. |
(b) | Includes amounts reported as unrealized mark-to-market net (gain) loss as well as the net effect on interest paid/accrued, both reported in "Interest Expense and Related Charges" (see Note 14). |
Derivative type (income statement presentation of loss reclassified from accumulated OCI into income) | Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Interest rate swaps (interest expense and related charges) | $ | (2 | ) | $ | (7 | ) | $ | (5 | ) | $ | (17 | ) | ||||
Interest rate swaps (depreciation and amortization) | — | — | (1 | ) | (1 | ) | ||||||||||
Total | $ | (2 | ) | $ | (7 | ) | $ | (6 | ) | $ | (18 | ) |
June 30, 2012 | December 31, 2011 | |||||||||
Derivative type | Notional Volume | Unit of Measure | ||||||||
Interest rate swaps: | ||||||||||
Floating/fixed | $ | 32,872 | $ | 32,955 | Million US dollars | |||||
Basis (a) | $ | 18,567 | $ | 19,167 | Million US dollars | |||||
Natural gas: | ||||||||||
Natural gas price hedge forward sales and purchases (b) | 1,144 | 1,602 | Million MMBtu | |||||||
Locational basis swaps | 698 | 728 | Million MMBtu | |||||||
All other | 1,838 | 841 | Million MMBtu | |||||||
Electricity | 104,939 | 105,673 | GWh | |||||||
Congestion Revenue Rights (c) | 88,409 | 142,301 | GWh | |||||||
Coal | 17 | 23 | Million tons | |||||||
Fuel oil | 50 | 51 | Million gallons | |||||||
Uranium | 430 | 480 | Thousand pounds |
(a) | The December 31, 2011 amount includes $1.417 billion notional amount of swaps entered into but not effective until February 2012. |
(b) | Represents gross notional forward sales, purchases and options transactions in the natural gas price hedging program. The net amount of these transactions was approximately 550 million MMBtu and 700 million MMBtu at June 30, 2012 and December 31, 2011, respectively. |
(c) | Represents gross forward purchases associated with instruments used to hedge price differences between settlement points in the nodal wholesale market design in ERCOT. |
11. | PENSION AND OTHER POSTRETIREMENT EMPLOYEE BENEFITS (OPEB) COSTS |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Components of net pension costs: | |||||||||||||||
Service cost | $ | 11 | $ | 11 | $ | 23 | $ | 22 | |||||||
Interest cost | 40 | 41 | 80 | 82 | |||||||||||
Expected return on assets | (40 | ) | (39 | ) | (80 | ) | (78 | ) | |||||||
Amortization of net loss | 27 | 22 | 54 | 44 | |||||||||||
Net pension costs | 38 | 35 | 77 | 70 | |||||||||||
Components of net OPEB costs: | |||||||||||||||
Service cost | 2 | 4 | 4 | 7 | |||||||||||
Interest cost | 11 | 16 | 22 | 32 | |||||||||||
Expected return on assets | (3 | ) | (4 | ) | (6 | ) | (7 | ) | |||||||
Amortization of transition obligation | 1 | — | 1 | — | |||||||||||
Amortization of prior service cost | (8 | ) | — | (16 | ) | — | |||||||||
Amortization of net loss | 3 | 7 | 7 | 14 | |||||||||||
Net OPEB costs | 6 | 23 | 12 | 46 | |||||||||||
Total net pension and OPEB costs | 44 | 58 | 89 | 116 | |||||||||||
Less amounts expensed by Oncor (and not consolidated) | (9 | ) | (9 | ) | (18 | ) | (18 | ) | |||||||
Less amounts deferred principally as a regulatory asset or property by Oncor | (21 | ) | (32 | ) | (43 | ) | (65 | ) | |||||||
Net amounts recognized as expense by EFH Corp. and consolidated subsidiaries | $ | 14 | $ | 17 | $ | 28 | $ | 33 |
12. | RELATED PARTY TRANSACTIONS |
• | We pay an annual management fee under the terms of a management agreement with the Sponsor Group, which we reported in SG&A expense totaling $9 million in each of the three month periods ended June 30, 2012 and 2011 and $19 million and $18 million in the six months ended June 30, 2012 and 2011, respectively. |
• | In 2007, TCEH entered into the TCEH Senior Secured Facilities with syndicates of financial institutions and other lenders. These syndicates included affiliates of GS Capital Partners, which is a member of the Sponsor Group. Affiliates of each member of the Sponsor Group have from time to time engaged in commercial banking transactions with us and/or provided financial advisory services to us, in each case in the normal course of business. |
• | In February 2012, Goldman, Sachs & Co. (Goldman), an affiliate of GS Capital Partners, acted as a joint book-running manager and initial purchaser in the issuance of $1.15 billion principal amount of EFIH 11.750% Senior Secured Second Lien Notes (see Note 6) for which it received fees totaling $7 million. A broker-dealer affiliate of KKR served as a co-manager and initial purchaser and an affiliate of TPG Management, L.P. served as an advisor in the transactions, for which they each received $1 million. |
• | Affiliates of GS Capital Partners are parties to certain commodity and interest rate hedging transactions with us in the normal course of business. |
• | Affiliates of the Sponsor Group have sold or acquired, and in the future may sell or acquire, debt or debt securities issued by us in open market transactions or through loan syndications. |
• | TCEH has made loans to EFH Corp. in the form of demand notes that have been pledged as collateral under the TCEH Senior Secured Facilities for (i) debt principal and interest payments and (ii) other general corporate purposes (SG&A Note) for EFH Corp. The demand notes are eliminated in consolidation in these consolidated financial statements. The notes, which totaled $680 million and $1.592 billion at June 30, 2012 and December 31, 2011, respectively, including $233 million in the SG&A Note at both dates, are guaranteed by both EFCH and EFIH on an unsecured basis. The reduction of the balance of the notes in the six months ended June 30, 2012 was funded by debt issued by EFIH. See Note 6. |
• | As part of EFH Corp.'s liability management program, EFH Corp. (parent entity) and EFIH have purchased, or received in exchanges, certain debt securities of EFH Corp. (parent entity) and TCEH, which are held as investments. Principal and interest payments received by EFH Corp. (parent entity) and EFIH on these investments are used, in part, to service their outstanding debt. These investments are eliminated in consolidation in these consolidated financial statements. At June 30, 2012, EFIH held $4.596 billion principal amount of EFH Corp. (parent entity) debt and $79 million principal amount of TCEH debt. At June 30, 2012, EFH Corp. (parent entity) held $303 million principal amount of TCEH debt. See Note 6. |
• | TCEH's retail operations pay Oncor for services it provides, principally the delivery of electricity. Expenses recorded for these services totaled $238 million and $251 million in the three months ended June 30, 2012 and 2011, respectively, and $465 million and $490 million in the six months ended June 30, 2012 and 2011, respectively. The fees are based on rates regulated by the PUCT that apply to all REPs. The balance sheets at June 30, 2012 and December 31, 2011 reflect amounts due currently to Oncor totaling $149 million and $138 million, respectively (included in payables due to unconsolidated subsidiary), primarily related to these electricity delivery fees. |
• | Oncor's bankruptcy-remote financing subsidiary has issued securitization bonds to recover generation-related regulatory assets through a transition surcharge to its customers. Oncor's incremental income taxes related to the transition surcharges it collects are being reimbursed by TCEH. Therefore, our balance sheet reflects a noninterest bearing note payable maturing in 2016 to Oncor of $159 million ($42 million current portion included in payables due to unconsolidated subsidiary) and $179 million ($41 million current portion included in payables due to unconsolidated subsidiary) at June 30, 2012 and December 31, 2011, respectively. TCEH's payments on the note totaled $10 million and $9 million in the three months ended June 30, 2012 and 2011, respectively, and $20 million and $18 million in the six months ended June 30, 2012 and 2011, respectively. |
• | TCEH reimburses Oncor for interest expense on Oncor's bankruptcy-remote financing subsidiary's securitization bonds. This reimbursement, which is reported as interest expense and paid on a monthly basis, totaled $7 million and $8 million in the three months ended June 30, 2012 and 2011, respectively, and $14 million and $16 million in the six months ended June 30, 2012 and 2011, respectively. |
• | Oncor pays EFH Corp. subsidiaries for financial and other administrative services and shared facilities at cost. Such amounts reduced reported SG&A expense by $9 million and $9 million in the three months ended June 30, 2012 and 2011, respectively, and $16 million and $18 million in the six months ended June 30, 2012 and 2011, respectively. |
• | Under Texas regulatory provisions, the trust fund for decommissioning the Comanche Peak nuclear generation facility is funded by a delivery fee surcharge billed to REPs by Oncor and remitted monthly to TCEH, with the intent that the trust fund assets, reported in other investments in our balance sheet, will be sufficient to fund the decommissioning liability, reported in noncurrent liabilities in our balance sheet. The delivery fee surcharges remitted to TCEH totaled $4 million in each of the three month periods ended June 30, 2012 and 2011 and $8 million in each of the six month periods ended June 30, 2012 and 2011. Income and expenses associated with the trust fund and the decommissioning liability incurred by us are offset by a net change in the intercompany receivable/payable between Oncor and TCEH, which in turn results in a change in Oncor's net regulatory asset/liability. At June 30, 2012 and December 31, 2011, the excess of the trust fund balance over the decommissioning liability resulted in a payable to Oncor totaling $260 million and $225 million, respectively, included in noncurrent liabilities due to unconsolidated subsidiary in our balance sheet. |
• | We file a consolidated federal income tax return that includes Oncor Holdings' results. Oncor is not a member of our consolidated tax group, but our consolidated federal income tax return includes our portion of Oncor's results as a result of our equity ownership in Oncor. We also file a consolidated Texas state margin tax return that includes all of Oncor Holdings' and Oncor's results. However, under a tax sharing agreement, Oncor Holdings' and Oncor's federal income tax and Texas margin tax expense and related balance sheet amounts, including our income taxes payable to or receivable from Oncor Holdings and Oncor, are recorded as if Oncor Holdings and Oncor file their own corporate income tax returns. Our current amount payable to Oncor Holdings and Oncor related to income taxes totaled $6 million at June 30, 2012 and our current amount receivable from Oncor Holdings and Oncor related to income taxes totaled $2 million at December 31, 2011. EFH Corp. received income tax payments from Oncor Holdings and Oncor of $37 million and $18 million in the six months ended June 30, 2012 and 2011, respectively. |
• | Certain transmission and distribution utilities in Texas have tariffs in place to assure adequate credit worthiness of any REP to support the REP's obligation to collect securitization bond-related (transition) charges on behalf of the utility. Under these tariffs, as a result of TCEH's credit rating being below investment grade, TCEH is required to post collateral support in an amount equal to estimated transition charges over specified time periods. Accordingly, at both June 30, 2012 and December 31, 2011, TCEH had posted letters of credit in the amount of $12 million for the benefit of Oncor. |
• | EFH Corp. and Oncor are jointly and severally liable for the funding of the EFH Corp. pension plan and a portion of the OPEB plan obligations. EFH Corp. is liable for the majority of the OPEB plan obligations. Oncor has contractually agreed to reimburse EFH Corp. with respect to certain pension plan and OPEB liabilities. Accordingly, at June 30, 2012 and December 31, 2011, our balance sheet reflects unfunded liabilities related to these obligations and a corresponding receivable from Oncor in the amounts of $1.201 billion and $1.235 billion, respectively, classified as noncurrent. This amount represents the obligations reported by Oncor in its balance sheet, which are recoverable by Oncor under regulatory rate-setting provisions. |
• | Receivables from unconsolidated subsidiary are measured at historical cost and consist of Oncor's obligation under the EFH Corp. pension and OPEB plans as discussed immediately above. EFH Corp. reviews Oncor's credit quality to assess the overall collectability of its affiliated receivables. There were no credit loss allowances at June 30, 2012. |
• | Oncor and Texas Holdings agreed to the terms of a stipulation with major interested parties to resolve all outstanding issues in the PUCT review related to the Merger. As part of this stipulation, TCEH would be required to post a letter of credit in an amount equal to $170 million to secure its payment obligations to Oncor in the event, which has not occurred, two or more rating agencies downgrade Oncor's credit rating below investment grade. |
13. | SEGMENT INFORMATION |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating revenues (all Competitive Electric) | $ | 1,385 | $ | 1,679 | $ | 2,607 | $ | 3,351 | |||||||
Equity in earnings of unconsolidated subsidiaries (net of tax) — Regulated Delivery (net of noncontrolling interest of $21, $18, $36 and $31) | $ | 83 | $ | 72 | $ | 141 | $ | 122 | |||||||
Net income (loss): | |||||||||||||||
Competitive Electric | $ | (668 | ) | $ | (671 | ) | $ | (926 | ) | $ | (992 | ) | |||
Regulated Delivery | 83 | 72 | 141 | 122 | |||||||||||
Corporate and Other | (111 | ) | (106 | ) | (215 | ) | (196 | ) | |||||||
Consolidated | $ | (696 | ) | $ | (705 | ) | $ | (1,000 | ) | $ | (1,066 | ) |
14. | SUPPLEMENTARY FINANCIAL INFORMATION |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Other income: | |||||||||||||||
Office space rental income (a) | $ | 3 | $ | 3 | $ | 6 | $ | 6 | |||||||
Consent fee related to novation of hedge positions between counterparties (b) | 6 | — | 6 | — | |||||||||||
Insurance settlement (b) | — | — | 2 | — | |||||||||||
Debt extinguishment gains (a) | — | 25 | — | 25 | |||||||||||
Settlement of counterparty bankruptcy claims (b)(c) | — | — | — | 21 | |||||||||||
Property damage claim (b) | — | — | — | 7 | |||||||||||
Franchise tax refund (b) | — | — | — | 6 | |||||||||||
Other | 3 | 5 | 5 | 10 | |||||||||||
Total other income | $ | 12 | $ | 33 | $ | 19 | $ | 75 | |||||||
Other deductions: | |||||||||||||||
Ongoing pension and OPEB expense related to discontinued businesses (a) | $ | 3 | $ | 3 | $ | 6 | $ | 5 | |||||||
Net third-party fees paid in connection with the amendment and extension of the TCEH Senior Secured Facilities (d) | — | 100 | — | 100 | |||||||||||
Other | 3 | 3 | 6 | 5 | |||||||||||
Total other deductions | $ | 6 | $ | 106 | $ | 12 | $ | 110 |
(a) | Reported in Corporate and Other. |
(b) | Reported in Competitive Electric segment. |
(c) | Represents net cash received as a result of the settlement of bankruptcy claims against a hedging/trading counterparty. A reserve of $26 million was established in 2008 related to amounts then due from the counterparty. |
(d) | Includes $86 million reported in Competitive Electric segment and $14 million in Corporate and Other. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Interest paid/accrued (including net amounts settled/accrued under interest rate swaps) | $ | 803 | $ | 768 | $ | 1,594 | $ | 1,453 | |||||||
Accrued interest to be paid with additional toggle notes (Note 6) | 59 | 54 | 117 | 110 | |||||||||||
Unrealized mark-to-market net (gain) loss on interest rate swaps (a) | 106 | 403 | (9 | ) | 261 | ||||||||||
Amortization of interest rate swap losses at dedesignation of hedge accounting | 2 | 7 | 5 | 17 | |||||||||||
Amortization of fair value debt discounts resulting from purchase accounting | 11 | 13 | 22 | 27 | |||||||||||
Amortization of debt issuance, amendment and extension costs and discounts | 48 | 64 | 95 | 93 | |||||||||||
Capitalized interest | (11 | ) | (8 | ) | (20 | ) | (16 | ) | |||||||
Total interest expense and related charges | $ | 1,018 | $ | 1,301 | $ | 1,804 | $ | 1,945 |
(a) | Three and six months ended June 30, 2012 amounts include $107 million and $(4) million, respectively, related to TCEH swaps (see Note 6) and $(1) million and $(5) million, respectively, related to EFH Corp. swaps substantially closed through offsetting positions. |
June 30, 2012 | December 31, 2011 | ||||||||||||||
Current Assets | Noncurrent Assets | Current Assets | Noncurrent Assets | ||||||||||||
Amounts related to TCEH's Letter of Credit Facility (Note 6) | $ | — | $ | 947 | $ | — | $ | 947 | |||||||
Amounts related to margin deposits held | 65 | — | 129 | — | |||||||||||
Total restricted cash | $ | 65 | $ | 947 | $ | 129 | $ | 947 |
June 30, 2012 | December 31, 2011 | ||||||
Materials and supplies | $ | 189 | $ | 177 | |||
Fuel stock | 230 | 203 | |||||
Natural gas in storage | 30 | 38 | |||||
Total inventories | $ | 449 | $ | 418 |
June 30, 2012 | December 31, 2011 | ||||||
Nuclear plant decommissioning trust | $ | 619 | $ | 574 | |||
Assets related to employee benefit plans, including employee savings programs, net of distributions | 89 | 90 | |||||
Land | 41 | 41 | |||||
Miscellaneous other | 1 | 4 | |||||
Total other investments | $ | 750 | $ | 709 |
June 30, 2012 | |||||||||||||||
Cost (a) | Unrealized gain | Unrealized loss | Fair market value | ||||||||||||
Debt securities (b) | $ | 238 | $ | 15 | $ | (1 | ) | $ | 252 | ||||||
Equity securities (c) | 237 | 146 | (16 | ) | 367 | ||||||||||
Total | $ | 475 | $ | 161 | $ | (17 | ) | $ | 619 |
December 31, 2011 | |||||||||||||||
Cost (a) | Unrealized gain | Unrealized loss | Fair market value | ||||||||||||
Debt securities (b) | $ | 231 | $ | 13 | $ | (2 | ) | $ | 242 | ||||||
Equity securities (c) | 230 | 121 | (19 | ) | 332 | ||||||||||
Total | $ | 461 | $ | 134 | $ | (21 | ) | $ | 574 |
(a) | Includes realized gains and losses on securities sold. |
(b) | The investment objective for debt securities is to invest in a diversified tax efficient portfolio with an overall portfolio rating of AA or above as graded by S&P or Aa2 by Moody's. The debt securities are heavily weighted with municipal bonds. The debt securities had an average coupon rate of 4.14% and 4.38% and an average maturity of 6.1 years and 6.3 years at June 30, 2012 and December 31, 2011, respectively. |
(c) | The investment objective for equity securities is to invest tax efficiently and to match the performance of the S&P 500 Index. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Realized gains | $ | 1 | $ | 1 | $ | 1 | $ | 1 | |||||||
Realized losses | $ | (1 | ) | $ | — | $ | (1 | ) | $ | (2 | ) | ||||
Proceeds from sales of securities | $ | 21 | $ | 1,050 | $ | 31 | $ | 1,784 | |||||||
Investments in securities | $ | (24 | ) | $ | (1,054 | ) | $ | (38 | ) | $ | (1,792 | ) |
Nuclear Plant Decommissioning | Mining Land Reclamation and Other | Total | |||||||||
Liability at January 1, 2012 | $ | 348 | $ | 188 | $ | 536 | |||||
Additions: | |||||||||||
Accretion | 10 | 18 | 28 | ||||||||
Reductions: | |||||||||||
Payments | — | (45 | ) | (45 | ) | ||||||
Adjustment to reclamation costs | — | (2 | ) | (2 | ) | ||||||
Liability at June 30, 2012 | 358 | 159 | 517 | ||||||||
Less amounts due currently | — | (51 | ) | (51 | ) | ||||||
Noncurrent liability at June 30, 2012 | $ | 358 | $ | 108 | $ | 466 |
June 30, 2012 | December 31, 2011 | ||||||
Uncertain tax positions (including accrued interest) | $ | 1,970 | $ | 1,972 | |||
Retirement plan and other employee benefits (a) | 1,647 | 1,664 | |||||
Asset retirement and mining reclamation obligations | 466 | 505 | |||||
Unfavorable purchase and sales contracts | 633 | 647 | |||||
Other | 35 | 28 | |||||
Total other noncurrent liabilities and deferred credits | $ | 4,751 | $ | 4,816 |
(a) | Includes $1.201 billion and $1.235 billion at June 30, 2012 and December 31, 2011, respectively, representing pension and OPEB liabilities related to Oncor (see Note 12). |
Year | Amount | |||
2012 | $ | 27 | ||
2013 | $ | 26 | ||
2014 | $ | 25 | ||
2015 | $ | 25 | ||
2016 | $ | 25 |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Cash payments (receipts) related to: | |||||||
Interest paid (a) | $ | 1,552 | $ | 1,356 | |||
Capitalized interest | $ | (20 | ) | $ | (16 | ) | |
Interest paid (net of capitalized interest) (a) | $ | 1,532 | $ | 1,340 | |||
Income taxes | $ | 58 | $ | 20 | |||
Noncash investing and financing activities: | |||||||
Principal amount of toggle notes issued in lieu of cash interest (Note 6) | $ | 114 | $ | 100 | |||
Construction expenditures (b) | $ | 83 | $ | 35 | |||
Debt exchange transactions | $ | — | $ | (22 | ) |
(a) | Net of interest received on interest rate swaps. |
(b) | Represents end-of-period accruals. |
Item 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Measure | Balance 2012 (a) | 2013 | 2014 | Total | |||||||||
Natural gas hedge volumes (b) | mm MMBtu | ~155 | ~246 | ~146 | ~547 | ||||||||
Weighted average hedge price (c) | $/MMBtu | ~7.32 | ~7.19 | ~7.80 | — | ||||||||
Weighted average market price (d) | $/MMBtu | 2.96 | 3.58 | 3.95 | — | ||||||||
Realization of hedge gains (e) | $ billions | ~$0.8 | ~$1.0 | ~$0.6 | ~$2.4 |
(a) | Balance of 2012 is from July 1, 2012 through December 31, 2012. |
(b) | Where collars are reflected, the volumes are based on the notional position of the derivatives to represent protection against downward price movements. The notional volumes for collars are approximately 150 million MMBtu, which corresponds to a delta position of approximately 142 million MMBtu in 2014. |
(c) | Weighted average hedge prices are based on NYMEX Henry Hub prices of forward natural gas sales positions in the natural gas price hedging program (excluding the impact of offsetting purchases for rebalancing). Where collars are reflected, sales price represents the collar floor price. |
(d) | Based on NYMEX Henry Hub prices. |
(e) | Based on cumulative unrealized mark-to-market gain at June 30, 2012. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Realized net gain | $ | 506 | $ | 282 | $ | 1,019 | $ | 621 | |||||||
Unrealized net loss including reversals of previously recorded amounts related to positions settled | (577 | ) | (59 | ) | (705 | ) | (401 | ) | |||||||
Total | $ | (71 | ) | $ | 223 | $ | 314 | $ | 220 |
Forward Market Prices for Calendar Year ($/MMBtu) (a) | |||||||||||||||||||
Date | 2012 (b) | 2013 | 2014 | 2015 | 2016 | ||||||||||||||
December 31, 2008 | $ | 7.23 | $ | 7.15 | $ | 7.15 | $ | 7.21 | $ | 7.30 | |||||||||
March 31, 2009 | $ | 6.96 | $ | 7.11 | $ | 7.18 | $ | 7.25 | $ | 7.33 | |||||||||
June 30, 2009 | $ | 7.16 | $ | 7.30 | $ | 7.43 | $ | 7.57 | $ | 7.71 | |||||||||
September 30, 2009 | $ | 7.00 | $ | 7.06 | $ | 7.17 | $ | 7.31 | $ | 7.43 | |||||||||
December 31, 2009 | $ | 6.53 | $ | 6.67 | $ | 6.84 | $ | 7.05 | $ | 7.24 | |||||||||
March 31, 2010 | $ | 5.79 | $ | 6.07 | $ | 6.36 | $ | 6.68 | $ | 7.00 | |||||||||
June 30, 2010 | $ | 5.68 | $ | 5.89 | $ | 6.10 | $ | 6.37 | $ | 6.68 | |||||||||
September 30, 2010 | $ | 5.07 | $ | 5.29 | $ | 5.42 | $ | 5.60 | $ | 5.76 | |||||||||
December 31, 2010 | $ | 5.08 | $ | 5.33 | $ | 5.49 | $ | 5.64 | $ | 5.79 | |||||||||
March 31, 2011 | $ | 5.06 | $ | 5.41 | $ | 5.73 | $ | 6.08 | $ | 6.41 | |||||||||
June 30, 2011 | $ | 4.84 | $ | 5.16 | $ | 5.42 | $ | 5.70 | $ | 5.98 | |||||||||
September 30, 2011 | $ | 4.24 | $ | 4.80 | $ | 5.13 | $ | 5.39 | $ | 5.61 | |||||||||
December 31, 2011 | $ | 3.24 | $ | 3.94 | $ | 4.34 | $ | 4.60 | $ | 4.85 | |||||||||
March 31, 2012 | $ | 2.50 | $ | 3.47 | $ | 3.96 | $ | 4.26 | $ | 4.51 | |||||||||
June 30, 2012 | $ | 2.96 | $ | 3.58 | $ | 3.95 | $ | 4.13 | $ | 4.29 |
(a) | Based on NYMEX Henry Hub prices. |
(b) | For March 31, 2012 and June 30, 2012, natural gas prices for 2012 represent the average of forward prices for April through December and July through December, respectively. |
Balance 2012 (a) | 2013 | 2014 | 2015 | 2016 | |||||||
$1.00/MMBtu change in gas price (b) | $ ~9 | $ ~175 | $ ~350 | $ ~525 | $ ~520 | ||||||
0.1/MMBtu/MWh change in market heat rate (c) | $ ~3 | $ ~20 | $ ~30 | $ ~35 | $ ~40 | ||||||
$1.00/gallon change in diesel fuel price | $ | — | $ ~35 | $ ~45 | $ ~45 | $ ~45 |
(a) | Balance of 2012 is from August 1, 2012 through December 31, 2012. |
(b) | Assumes conversion of electricity positions based on an approximate 8.5 market heat rate with natural gas generally being on the margin 70% to 90% of the time in the ERCOT market (i.e., when coal is forecast to be on the margin, no natural gas position is assumed to be generated). |
(c) | Based on Houston Ship Channel natural gas prices at June 30, 2012. |
Security (except where noted, debt amounts are principal amounts) | Debt Acquired (a) | Debt Issued/Cash Paid | ||||||
EFH Corp. 10.875% Notes due 2017 | $ | 1,804 | $ | — | ||||
EFH Corp. Toggle Notes due 2017 | 2,661 | 53 | ||||||
EFH Corp. 5.55% Series P Senior Notes due 2014 | 674 | — | ||||||
EFH Corp. 6.50% Series Q Senior Notes due 2024 | 10 | — | ||||||
EFH Corp. 6.55% Series R Senior Notes due 2034 | 6 | — | ||||||
TCEH 10.25% Notes due 2015 | 1,875 | — | ||||||
TCEH Toggle Notes due 2016 | 751 | — | ||||||
TCEH Senior Secured Facilities due 2013 and 2014 | 1,623 | — | ||||||
EFH Corp. and EFIH 9.75% Notes due 2019 | — | 256 | ||||||
EFH Corp 10% Notes due 2020 | — | 561 | ||||||
EFIH 11% Notes due 2021 | — | 406 | ||||||
EFIH 10% Notes due 2020 | — | 2,180 | ||||||
TCEH 15% Notes due 2021 | — | 1,221 | ||||||
TCEH 11.5% Notes due 2020 (b) | — | 1,604 | ||||||
Cash paid, including use of proceeds from debt issuances in 2010 (c) | — | 1,062 | ||||||
Total | $ | 9,404 | $ | 7,343 |
(a) | Includes an aggregate $4.933 billion principal amount of these securities held by EFH Corp. and EFIH. All other debt acquired has been canceled. |
(b) | Excludes from the $1.750 billion principal amount $12 million in debt discount and $134 million in proceeds used for transaction costs related to the issuance of these notes and the amendment and extension of the TCEH Senior Secured Facilities. All other proceeds were used to repay borrowings under the TCEH Senior Secured Facilities, and the remaining transaction costs were funded with cash on hand. |
(c) | Includes $100 million of the proceeds from the January 2010 issuance of $500 million principal amount of EFH Corp. 10% Notes due 2020 and $290 million of the proceeds from the October 2010 issuance of $350 million principal amount of TCEH 15% Senior Secured Second Lien Notes due 2021. The total $390 million of proceeds was used to repurchase debt. |
Fixed Rates | Expiration Dates | Notional Amount | ||
5.5% — 9.3% | October 2012 through October 2014 | $18.57 billion (a) | ||
6.8% — 9.0% | October 2015 through October 2017 | $12.60 billion (b) |
(a) | Swaps related to an aggregate $1.1 billion principal amount of debt expired in 2012. Per the terms of the transactions, the notional amount of swaps entered into in 2011 grew by $1.02 billion, substantially offsetting the expired swaps. |
(b) | These swaps are effective from October 2014 through October 2017. The $12.6 billion notional amount of swaps includes $3 billion that expires in October 2015 and the remainder in October 2017. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Realized net loss | $ | (168 | ) | $ | (173 | ) | $ | (337 | ) | $ | (333 | ) | |||
Unrealized net gain (loss) | (107 | ) | (403 | ) | 4 | (261 | ) | ||||||||
Total | $ | (275 | ) | $ | (576 | ) | $ | (333 | ) | $ | (594 | ) |
• | Net loss in the Competitive Electric segment decreased $3 million to $668 million. |
• | Earnings from the Regulated Delivery segment increased $11 million to $83 million as discussed above. |
• | After-tax net expenses from Corporate and Other activities totaled $111 million and $106 million in 2012 and 2011, respectively. The amounts in 2012 and 2011 include recurring interest expense on outstanding debt, as well as corporate general and administrative expenses. The $5 million increase was driven by increased interest expense, reflecting PIK interest payments on the EFH Corp. Toggle Notes (see Note 6 to Financial Statements). |
• | Net loss in the Competitive Electric segment decreased $66 million to $926 million. |
• | Earnings from the Regulated Delivery segment increased $19 million to $141 million as discussed above. |
• | After-tax net expenses from Corporate and Other activities totaled $215 million and $196 million in 2012 and 2011, respectively. The amounts in 2012 and 2011 include recurring interest expense on outstanding debt, as well as corporate general and administrative expenses. The $19 million increase reflected debt extinguishment gains totaling $16 million in 2011 as well as increased interest expense driven by PIK interest payments on EFH Corp. Toggle Notes (see Note 6 to Financial Statements). |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Operating revenues | $ | 1,385 | $ | 1,679 | $ | 2,607 | $ | 3,351 | |||||||
Fuel, purchased power costs and delivery fees | (674 | ) | (838 | ) | (1,302 | ) | (1,668 | ) | |||||||
Net gain (loss) from commodity hedging and trading activities | (136 | ) | 190 | 232 | 95 | ||||||||||
Operating costs | (228 | ) | (247 | ) | (435 | ) | (463 | ) | |||||||
Depreciation and amortization | (334 | ) | (364 | ) | (663 | ) | (726 | ) | |||||||
Selling, general and administrative expenses | (156 | ) | (175 | ) | (311 | ) | (336 | ) | |||||||
Franchise and revenue-based taxes | (17 | ) | (22 | ) | (36 | ) | (42 | ) | |||||||
Other income | 7 | 4 | 10 | 35 | |||||||||||
Other deductions | (4 | ) | (89 | ) | (6 | ) | (91 | ) | |||||||
Interest income | 9 | 19 | 26 | 46 | |||||||||||
Interest expense and related charges | (866 | ) | (1,183 | ) | (1,521 | ) | (1,714 | ) | |||||||
Loss before income taxes | (1,014 | ) | (1,026 | ) | (1,399 | ) | (1,513 | ) | |||||||
Income tax benefit | 346 | 355 | 473 | 521 | |||||||||||
Net loss | $ | (668 | ) | $ | (671 | ) | $ | (926 | ) | $ | (992 | ) |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Sales volumes: | |||||||||||||||||
Retail electricity sales volumes – (GWh): | |||||||||||||||||
Residential | 6,131 | 6,833 | (10.3 | ) | 10,791 | 12,777 | (15.5 | ) | |||||||||
Small business (a) | 1,599 | 1,806 | (11.5 | ) | 2,937 | 3,572 | (17.8 | ) | |||||||||
Large business and other customers | 2,596 | 3,251 | (20.1 | ) | 5,046 | 6,509 | (22.5 | ) | |||||||||
Total retail electricity | 10,326 | 11,890 | (13.2 | ) | 18,774 | 22,858 | (17.9 | ) | |||||||||
Wholesale electricity sales volumes (b) | 5,935 | 8,414 | (29.5 | ) | 14,748 | 17,625 | (16.3 | ) | |||||||||
Total sales volumes | 16,261 | 20,304 | (19.9 | ) | 33,522 | 40,483 | (17.2 | ) | |||||||||
Average volume (kWh) per residential customer (c) | 3,854 | 3,966 | (2.8 | ) | 6,736 | 7,350 | (8.4 | ) | |||||||||
Weather (North Texas average) – percent of normal (d): | |||||||||||||||||
Cooling degree days | 122.7 | % | 136.3 | % | (10.0 | ) | 128.1 | % | 143.4 | % | (10.7 | ) | |||||
Heating degree days | 16.0 | % | 85.5 | % | (81.3 | ) | 74.6 | % | 110.5 | % | (32.5 | ) | |||||
Customer counts: | |||||||||||||||||
Retail electricity customers (end of period and in thousands) (e): | |||||||||||||||||
Residential | 1,578 | 1,706 | (7.5 | ) | |||||||||||||
Small business (a) | 178 | 199 | (10.6 | ) | |||||||||||||
Large business and other customers | 16 | 20 | (20.0 | ) | |||||||||||||
Total retail electricity customers | 1,772 | 1,925 | (7.9 | ) |
(a) | Customers with demand of less than 1 MW annually. |
(b) | Includes net amounts related to sales and purchases of energy in the "real-time market." |
(c) | Calculated using average number of customers for the period. |
(d) | Weather data is obtained from Weatherbank, Inc., an independent company that collects and archives weather data from reporting stations of the National Oceanic and Atmospheric Administration (a federal agency under the US Department of Commerce). Normal is defined as the average over a 10-year period. |
(e) | Based on number of meters. Typically, large business and other customers have more than one meter; therefore, number of meters does not reflect the number of individual customers. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Operating revenues: | |||||||||||||||||||||
Retail electricity revenues: | |||||||||||||||||||||
Residential | $ | 762 | $ | 847 | (10.0 | ) | $ | 1,340 | $ | 1,575 | (14.9 | ) | |||||||||
Small business (a) | 194 | 228 | (14.9 | ) | 369 | 454 | (18.7 | ) | |||||||||||||
Large business and other customers | 180 | 255 | (29.4 | ) | 354 | 504 | (29.8 | ) | |||||||||||||
Total retail electricity revenues | 1,136 | 1,330 | (14.6 | ) | 2,063 | 2,533 | (18.6 | ) | |||||||||||||
Wholesale electricity revenues (b) (c) | 194 | 285 | (31.9 | ) | 424 | 680 | (37.6 | ) | |||||||||||||
Amortization of intangibles (d) | 5 | 3 | 66.7 | 9 | 5 | 80.0 | |||||||||||||||
Other operating revenues | 50 | 61 | (18.0 | ) | 111 | 133 | (16.5 | ) | |||||||||||||
Total operating revenues | $ | 1,385 | $ | 1,679 | (17.5 | ) | $ | 2,607 | $ | 3,351 | (22.2 | ) | |||||||||
Net gain (loss) from commodity hedging and trading activities: | |||||||||||||||||||||
Realized net gains on settled positions | $ | 477 | $ | 263 | 81.4 | $ | 998 | $ | 490 | — | |||||||||||
Unrealized net losses | (613 | ) | (73 | ) | — | (766 | ) | (395 | ) | 93.9 | |||||||||||
Total | $ | (136 | ) | $ | 190 | — | $ | 232 | $ | 95 | — |
(a) | Customers with demand of less than 1 MW annually. |
(b) | Upon settlement of physical derivative power sales and purchase contracts that are marked-to-market in net income, wholesale electricity revenues and fuel and purchased power costs are reported at approximated market prices, as required by accounting rules, instead of the contract price. As a result, these line item amounts include a noncash component, which we deem "unrealized." (The offsetting differences between contract and market prices are reported in net gain (loss) from commodity hedging and trading activities.) These amounts are as follows: |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||
Reported in revenues | $ | (3 | ) | $ | — | $ | 4 | $ | — | ||||||
Reported in fuel and purchased power costs | 3 | 4 | (3 | ) | 10 | ||||||||||
Net gain | $ | — | $ | 4 | $ | 1 | $ | 10 |
(c) | Includes net amounts related to sales and purchases of balancing energy in the "real-time market." |
(d) | Represents amortization of the intangible net asset value of retail and wholesale power sales agreements resulting from purchase accounting. |
Three Months Ended June 30, | % Change | Six Months Ended June 30, | % Change | ||||||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||||||
Fuel, purchased power costs and delivery fees ($ millions): | |||||||||||||||||||||
Fuel for nuclear facilities | $ | 46 | $ | 36 | 27.8 | $ | 93 | $ | 78 | 19.2 | |||||||||||
Fuel for lignite/coal facilities | 179 | 256 | (30.1 | ) | 354 | 492 | (28.0 | ) | |||||||||||||
Total nuclear and lignite/coal facilities | 225 | 292 | (22.9 | ) | 447 | 570 | (21.6 | ) | |||||||||||||
Fuel for natural gas facilities and purchased power costs (a) | 80 | 106 | (24.5 | ) | 150 | 211 | (28.9 | ) | |||||||||||||
Amortization of intangibles (b) | 13 | 32 | (59.4 | ) | 26 | 68 | (61.8 | ) | |||||||||||||
Other costs | 44 | 62 | (29.0 | ) | 88 | 148 | (40.5 | ) | |||||||||||||
Fuel and purchased power costs | 362 | 492 | (26.4 | ) | 711 | 997 | (28.7 | ) | |||||||||||||
Delivery fees (c) | 312 | 346 | (9.8 | ) | 591 | 671 | (11.9 | ) | |||||||||||||
Total | $ | 674 | $ | 838 | (19.6 | ) | $ | 1,302 | $ | 1,668 | (21.9 | ) | |||||||||
Fuel and purchased power costs (which excludes generation facilities operating costs) per MWh: | |||||||||||||||||||||
Nuclear facilities | $ | 8.88 | $ | 8.30 | 7.0 | $ | 8.83 | $ | 8.15 | 8.3 | |||||||||||
Lignite/coal facilities (d) | $ | 21.57 | $ | 19.91 | 8.3 | $ | 20.71 | $ | 19.67 | 5.3 | |||||||||||
Natural gas facilities and purchased power (e) | $ | 44.84 | $ | 44.43 | 0.9 | $ | 42.35 | $ | 48.55 | (12.8 | ) | ||||||||||
Delivery fees per MWh | $ | 30.12 | $ | 29.06 | 3.6 | $ | 31.39 | $ | 29.27 | 7.2 | |||||||||||
Production and purchased power volumes (GWh): | |||||||||||||||||||||
Nuclear facilities | 5,159 | 4,384 | 17.7 | 10,497 | 9,590 | 9.5 | |||||||||||||||
Lignite/coal facilities | 10,057 | 14,657 | (31.4 | ) | 20,750 | 28,623 | (27.5 | ) | |||||||||||||
Total nuclear and lignite/coal facilities (f) | 15,216 | 19,041 | (20.1 | ) | 31,247 | 38,213 | (18.2 | ) | |||||||||||||
Natural gas facilities | 381 | 244 | 56.1 | 523 | 396 | 32.1 | |||||||||||||||
Purchased power (g) | 664 | 1,019 | (34.8 | ) | 1,752 | 1,874 | (6.5 | ) | |||||||||||||
Total energy supply volumes | 16,261 | 20,304 | (19.9 | ) | 33,522 | 40,483 | (17.2 | ) | |||||||||||||
Capacity factors (f): | |||||||||||||||||||||
Nuclear facilities | 102.7 | % | 87.3 | % | 17.6 | 104.5 | % | 96.0 | % | 8.9 | |||||||||||
Lignite/coal facilities | 57.4 | % | 83.7 | % | (31.4 | ) | 59.3 | % | 83.5 | % | (29.0 | ) | |||||||||
Total | 67.5 | % | 84.5 | % | (20.1 | ) | 69.4 | % | 86.4 | % | (19.7 | ) |
(a) | See note (b) to the "Revenue and Commodity Hedging and Trading Activities" table on previous page. |
(b) | Represents amortization of the intangible net asset values of emission credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel resulting from purchase accounting. |
(c) | Includes delivery fee charges from Oncor. |
(d) | Includes depreciation and amortization of lignite mining assets, which is reported in the depreciation and amortization expense line item, but is part of overall fuel costs. |
(e) | Excludes volumes related to line loss and power imbalances. |
(f) | Includes the estimated effects of economic backdown of lignite/coal-fueled units totaling 2,050 GWh and 840 GWh in the three months ended June 30, 2012 and 2011, respectively, and 4,970 GWh and 1,840 GWh in the six months ended June 30, 2012 and 2011, respectively. |
(g) | Includes amounts related to line loss and power imbalances. |
Three Months Ended June 30, 2012 | |||||||||||
Net Realized Gains (Losses) | Net Unrealized Gains (Losses) | Total | |||||||||
Hedging positions | $ | 482 | $ | (640 | ) | $ | (158 | ) | |||
Trading positions | (5 | ) | 27 | 22 | |||||||
Total | $ | 477 | $ | (613 | ) | $ | (136 | ) |
Three Months Ended June 30, 2011 | |||||||||||
Net Realized Gains | Net Unrealized Gains (Losses) | Total | |||||||||
Hedging positions | $ | 260 | $ | (74 | ) | $ | 186 | ||||
Trading positions | 3 | 1 | 4 | ||||||||
Total | $ | 263 | $ | (73 | ) | $ | 190 |
Six Months Ended June 30, 2012 | |||||||||||
Net Realized Gains | Net Unrealized Gains (Losses) | Total | |||||||||
Hedging positions | $ | 993 | $ | (818 | ) | $ | 175 | ||||
Trading positions | 5 | 52 | 57 | ||||||||
Total | $ | 998 | $ | (766 | ) | $ | 232 |
Six Months Ended June 30, 2011 | |||||||||||
Net Realized Gains | Net Unrealized Gains (Losses) | Total | |||||||||
Hedging positions | $ | 467 | $ | (400 | ) | $ | 67 | ||||
Trading positions | 23 | 5 | 28 | ||||||||
Total | $ | 490 | $ | (395 | ) | $ | 95 |
Six Months Ended June 30, | |||||||
2012 | 2011 | ||||||
Commodity contract net asset at beginning of period | $ | 3,190 | $ | 3,097 | |||
Settlements of positions (a) | (990 | ) | (556 | ) | |||
Changes in fair value of positions in the portfolio (b) | 225 | 171 | |||||
Other activity (c) | (31 | ) | 37 | ||||
Commodity contract net asset at end of period | $ | 2,394 | $ | 2,749 |
(a) | Represents reversals of previously recognized unrealized gains and losses upon settlement (offsets realized gains and losses recognized in the settlement period). Excludes changes in fair value in the month the position settled as well as amounts related to positions entered into and settled in the same month. |
(b) | Represents unrealized net gains recognized, including net gains related to positions in the natural gas price hedging program (see discussion above under "Natural Gas Prices and Natural Gas Price Hedging Program"), partially offset by net losses related to other hedging positions. Excludes changes in fair value in the month the position settled as well as amounts related to positions entered into and settled in the same month. |
(c) | These amounts do not represent unrealized gains or losses. Includes initial values of positions involving the receipt or payment of cash or other consideration, generally related to options purchased/sold. |
Maturity dates of unrealized commodity contract net asset at June 30, 2012 | ||||||||||||||||||||
Source of fair value | Less than 1 year | 1-3 years | 4-5 years | Excess of 5 years | Total | |||||||||||||||
Prices actively quoted | $ | 9 | $ | (21 | ) | $ | — | $ | — | $ | (12 | ) | ||||||||
Prices provided by other external sources | 1,294 | 1,100 | — | — | 2,394 | |||||||||||||||
Prices based on models | 22 | (10 | ) | — | — | 12 | ||||||||||||||
Total | $ | 1,325 | $ | 1,069 | $ | — | $ | — | $ | 2,394 | ||||||||||
Percentage of total fair value | 55 | % | 45 | % | — | % | — | % | 100 | % |
Borrowings | Repayments and Repurchases | ||||||
TCEH (a) | $ | 103 | $ | (21 | ) | ||
EFCH | — | (2 | ) | ||||
EFIH | 1,150 | — | |||||
EFH Corp. (b) | 26 | (5 | ) | ||||
Total long-term | 1,279 | (28 | ) | ||||
Total short-term – TCEH (c) | — | (485 | ) | ||||
Total | $ | 1,279 | $ | (513 | ) |
(a) | Borrowings represent $88 million of noncash principal increases of TCEH Toggle Notes issued in May 2012 in payment of accrued interest as discussed below under "Toggle Notes Interest Election" and sale/leaseback transactions for mining equipment entered into in 2012. Repayments represent $14 million of payments of principal at scheduled maturity dates and $7 million of payments of capital lease liabilities (see Note 6 to Financial Statements). |
(b) | Borrowings represent $26 million of noncash principal increases of EFH Corp. Toggle Notes issued in May 2012 in payment of accrued interest as discussed below under "Toggle Notes Interest Election." |
(c) | Short-term amount represents net repayments of borrowings under the TCEH Revolving Credit Facility. |
Available Liquidity | |||||||||||
June 30, 2012 | December 31, 2011 | Change | |||||||||
Cash and cash equivalents | $ | 1,063 | $ | 826 | $ | 237 | |||||
TCEH Revolving Credit Facility | 1,869 | 1,384 | 485 | ||||||||
TCEH Letter of Credit Facility | 81 | 169 | (88 | ) | |||||||
Total liquidity | $ | 3,013 | $ | 2,379 | $ | 634 |
• | EFH Corp. and EFIH collectively are permitted to issue up to approximately $1.8 billion of additional aggregate principal amount of debt secured by EFIH's equity interest in Oncor Holdings (of which approximately $500 million can be on a first-priority basis and the remainder on a second-priority basis); |
• | TCEH is permitted to issue approximately $2.6 billion of additional aggregate principal amount of debt secured by substantially all of the assets of TCEH and certain of its subsidiaries (of which $750 million can be on a first-priority basis and the remainder on a second-priority basis), and |
• | TCEH is permitted to issue an unlimited amount of additional first-priority debt in order to refinance the first-priority debt outstanding under the TCEH Senior Secured Facilities. |
• | $22 million in cash has been posted with counterparties for exchange cleared transactions (including initial margin), as compared to $50 million posted at December 31, 2011; |
• | $1.087 billion in cash has been received from counterparties, net of $1 million in cash posted, for over-the-counter and other non-exchange cleared transactions, as compared to $1.055 billion received, net of $6 million in cash posted, at December 31, 2011; |
• | $448 million in letters of credit have been posted with counterparties, as compared to $363 million posted at December 31, 2011, and |
• | $68 million in letters of credit have been received from counterparties, as compared to $103 million received at December 31, 2011. |
June 30, 2012 | December 31, 2011 | Threshold Level at June 30, 2012 | |||
Maintenance Covenant: | |||||
TCEH Senior Secured Facilities: | |||||
Secured debt to Adjusted EBITDA ratio (a) | 5.53 to 1.00 | 5.78 to 1.00 | Must not exceed 8.00 to 1.00 (b) | ||
Debt Incurrence Covenants: | |||||
EFH Corp. Senior Secured Notes: | |||||
EFH Corp. fixed charge coverage ratio | 1.1 to 1.0 | 1.1 to 1.0 | At least 2.0 to 1.0 | ||
TCEH fixed charge coverage ratio | 1.2 to 1.0 | 1.3 to 1.0 | At least 2.0 to 1.0 | ||
EFIH Notes: | |||||
EFIH fixed charge coverage ratio (c) | (d) | (d) | At least 2.0 to 1.0 | ||
TCEH Senior Notes, Senior Secured Notes and Senior Secured Second Lien Notes: | |||||
TCEH fixed charge coverage ratio | 1.2 to 1.0 | 1.3 to 1.0 | At least 2.0 to 1.0 | ||
TCEH Senior Secured Facilities: | |||||
TCEH fixed charge coverage ratio | 1.2 to 1.0 | 1.3 to 1.0 | At least 2.0 to 1.0 | ||
Restricted Payments/Limitations on Investments Covenants: | |||||
EFH Corp. Senior Notes: | |||||
General restrictions (Sponsor Group payments): | |||||
EFH Corp. leverage ratio | 9.5 to 1.0 | 9.7 to 1.0 | Equal to or less than 7.0 to 1.0 | ||
EFH Corp. Senior Secured Notes: | |||||
General restrictions (non-Sponsor Group payments): | |||||
EFH Corp. fixed charge coverage ratio (e) | 1.4 to 1.0 | 1.4 to 1.0 | At least 2.0 to 1.0 | ||
General restrictions (Sponsor Group payments): | |||||
EFH Corp. fixed charge coverage ratio (e) | 1.1 to 1.0 | 1.1 to 1.0 | At least 2.0 to 1.0 | ||
EFH Corp. leverage ratio | 9.5 to 1.0 | 9.7 to 1.0 | Equal to or less than 7.0 to 1.0 | ||
EFIH Notes: | |||||
General restrictions (non-EFH Corp. payments): | |||||
EFIH fixed charge coverage ratio (c) (f) | 11.3 to 1.0 | 81.7 to 1.0 | At least 2.0 to 1.0 | ||
General restrictions (EFH Corp. payments): | |||||
EFIH fixed charge coverage ratio (c) (f) | (d) | (d) | At least 2.0 to 1.0 | ||
EFIH leverage ratio | 6.0 to 1.0 | 5.3 to 1.0 | Equal to or less than 6.0 to 1.0 | ||
TCEH Senior Notes, Senior Secured Notes and Senior Secured Second Lien Notes: | |||||
TCEH fixed charge coverage ratio | 1.2 to 1.0 | 1.3 to 1.0 | At least 2.0 to 1.0 | ||
TCEH Senior Secured Facilities: | |||||
Payments to Sponsor Group: | |||||
TCEH total debt to Adjusted EBITDA ratio | 8.2 to 1.0 | 8.7 to 1.0 | Equal to or less than 6.5 to 1.0 |
(a) | At June 30, 2012, includes actual Adjusted EBITDA for both Oak Grove units and the Sandow 5 unit and all outstanding debt under the Delayed Draw Term Loan. At December 31, 2011, includes pro forma Adjusted EBITDA for the new Oak Grove 2 generation unit as well as actual Adjusted EBITDA for Sandow 5 and Oak Grove 1 units and all outstanding debt under the Delayed Draw Term Loan. |
(b) | Calculation excludes secured debt that ranks junior to the TCEH Senior Secured Facilities and up to $1.5 billion ($906 million excluded at June 30, 2012) principal amount of TCEH senior secured first lien notes whose proceeds are used to prepay term loans or deposit letter of credit loans under the TCEH Senior Secured Facilities. |
(c) | Although EFIH currently meets the fixed charge coverage ratio threshold applicable to certain covenants contained in the indentures governing the EFIH Notes, EFIH's ability to use such thresholds to incur debt or make restricted payments/investments is currently limited by the covenants contained in indentures governing the EFH Corp. Senior Notes and the EFH Corp. Senior Secured Notes. |
(d) | EFIH meets the ratio threshold. Because EFIH's interest income exceeds interest expense, the result of the ratio calculation is not meaningful. |
(e) | The EFH Corp. fixed charge coverage ratio for non-Sponsor Group payments includes the results of Oncor Holdings and its subsidiaries. The EFH Corp. fixed charge coverage ratio for Sponsor Group payments excludes the results of Oncor Holdings and its subsidiaries. |
(f) | The EFIH fixed charge coverage ratio for non-EFH Corp. payments includes the results of Oncor Holdings and its subsidiaries. The EFIH fixed charge coverage ratio for EFH Corp. payments excludes the results of Oncor Holdings and its subsidiaries. |
Item 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
Six Months Ended June 30, 2012 | Year Ended December 31, 2011 | ||||||
Month-end average Trading VaR: | $ | 11 | $ | 4 | |||
Month-end high Trading VaR: | $ | 12 | $ | 8 | |||
Month-end low Trading VaR: | $ | 10 | $ | 1 |
Six Months Ended June 30, 2012 | Year Ended December 31, 2011 | ||||||
Month-end average MtM VaR: | $ | 153 | $ | 195 | |||
Month-end high MtM VaR: | $ | 206 | $ | 268 | |||
Month-end low MtM VaR: | $ | 120 | $ | 121 |
Six Months Ended June 30, 2012 | Year Ended December 31, 2011 | ||||||
Month-end average EaR: | $ | 113 | $ | 170 | |||
Month-end high EaR: | $ | 161 | $ | 228 | |||
Month-end low EaR: | $ | 77 | $ | 121 |
Gross Exposure by Maturity | |||||||||||||||||||||||||||
Exposure Before Credit Collateral | Credit Collateral | Net Exposure | 2 years or less | Between 2-5 years | Greater than 5 years | Total | |||||||||||||||||||||
Investment grade | $ | 1,279 | $ | 1,093 | $ | 186 | $ | 1,106 | $ | 173 | $ | — | $ | 1,279 | |||||||||||||
Noninvestment grade | 12 | 10 | 2 | 12 | — | — | 12 | ||||||||||||||||||||
Totals | $ | 1,291 | $ | 1,103 | $ | 188 | $ | 1,118 | $ | 173 | $ | — | $ | 1,291 | |||||||||||||
Investment grade | 99.1 | % | 98.9 | % | |||||||||||||||||||||||
Noninvestment grade | 0.9 | % | 1.1 | % |
• | prevailing governmental policies and regulatory actions, including those of the Texas Legislature, the Governor of Texas, the US Congress, the US Federal Energy Regulatory Commission, the NERC, the TRE, the PUCT, the RRC, the NRC, the EPA, the TCEQ, the US Mine Safety and Health Administration and the US Commodity Futures Trading Commission, with respect to, among other things: |
◦ | allowed prices; |
◦ | allowed rates of return; |
◦ | permitted capital structure; |
◦ | industry, market and rate structure; |
◦ | purchased power and recovery of investments; |
◦ | operations of nuclear generation facilities; |
◦ | operations of fossil-fueled generation facilities; |
◦ | operations of mines; |
◦ | acquisition and disposal of assets and facilities; |
◦ | development, construction and operation of facilities; |
◦ | decommissioning costs; |
◦ | present or prospective wholesale and retail competition; |
◦ | changes in tax laws and policies; |
◦ | changes in and compliance with environmental and safety laws and policies, including the CSAPR, MATS and climate change initiatives, and |
◦ | clearing over the counter derivatives through exchanges and posting of cash collateral therewith; |
• | legal and administrative proceedings and settlements; |
• | general industry trends; |
• | economic conditions, including the impact of a recessionary environment; |
• | our ability to attract and retain profitable customers; |
• | our ability to profitably serve our customers; |
• | restrictions on competitive retail pricing; |
• | changes in wholesale electricity prices or energy commodity prices, including the price of natural gas; |
• | changes in prices of transportation of natural gas, coal, crude oil and refined products; |
• | unanticipated changes in market heat rates in the ERCOT electricity market; |
• | our ability to effectively hedge against unfavorable commodity prices, including the price of natural gas, market heat rates and interest rates; |
• | weather conditions and other natural phenomena, and acts of sabotage, wars or terrorist or cybersecurity threats or activities; |
• | unanticipated population growth or decline, or changes in market supply or demand and demographic patterns, particularly in ERCOT; |
• | changes in business strategy, development plans or vendor relationships; |
• | access to adequate transmission facilities to meet changing demands; |
• | unanticipated changes in interest rates, commodity prices, rates of inflation or foreign exchange rates; |
• | unanticipated changes in operating expenses, liquidity needs and capital expenditures; |
• | commercial bank market and capital market conditions and the potential impact of disruptions in US and international credit markets; |
• | the willingness of our lenders to extend the maturities of our debt instruments and the terms and conditions of any such extensions; |
• | access to capital, the cost of such capital, and the results of financing and refinancing efforts, including availability of funds in capital markets; |
• | activity in the credit default swap market related to our debt instruments; |
• | restrictions placed on us by the agreements governing our debt instruments; |
• | our ability to generate sufficient cash flow to make interest payments on, or refinance, our debt instruments; |
• | our ability to successfully execute our liability management program or otherwise address our debt maturities; |
• | any defaults under certain of our financing arrangements that could trigger cross default or cross acceleration provisions under other financing arrangements; |
• | our ability to make intercompany loans or otherwise transfer funds among different entities in our corporate structure; |
• | competition for new energy development and other business opportunities; |
• | inability of various counterparties to meet their obligations with respect to our financial instruments; |
• | changes in technology used by and services offered by us; |
• | changes in electricity transmission that allow additional electricity generation to compete with our generation assets; |
• | significant changes in our relationship with our employees, including the availability of qualified personnel, and the potential adverse effects if labor disputes or grievances were to occur; |
• | changes in assumptions used to estimate costs of providing employee benefits, including medical and dental benefits, pension and OPEB, and future funding requirements related thereto; |
• | changes in assumptions used to estimate future executive compensation payments; |
• | hazards customary to the industry and the possibility that we may not have adequate insurance to cover losses resulting from such hazards; |
• | significant changes in critical accounting policies; |
• | actions by credit rating agencies; |
• | adverse claims by our creditors or holders of our debt securities; |
• | our ability to effectively execute our operational strategy, and |
• | our ability to implement cost reduction initiatives. |
Item 4. | CONTROLS AND PROCEDURES |
Item 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
Item 4. | MINE SAFETY DISCLOSURES |
Item 6. | Exhibits |
(a) | Exhibits filed or furnished as part of Part II are: |
Exhibits | Previously Filed With File Number* | As Exhibit | ||||||
(3(i)) | Articles of Incorporation | |||||||
3(a) | 1-12833 Form 8-K (filed October 11, 2007) | 3.1 | — | Restated Certificate of Formation of Energy Future Holdings Corp. | ||||
(3(ii)) | By-laws | |||||||
3(b) | — | Amended and Restated Bylaws of Energy Future Holdings Corp. | ||||||
(4) | Instruments Defining the Rights of Security Holders, Including Indentures | |||||||
Energy Future Intermediate Holding Company LLC | ||||||||
4(a) | — | Third Supplemental Indenture, dated May 31, 2012, to the indenture dated April 25, 2011, among Energy Future Intermediate Holding Company LLC, EFIH Finance Inc. and The Bank of New York Mellon Trust Company, N.A., as Trustee, relating to 11.750% Senior Secured Second Lien Notes due 2022. | ||||||
(10) | Material Contracts | |||||||
10(a) | — | Second Amendment to Deferred Share Agreement, dated July 25, 2012, between Energy Future Holdings Corp. and Paul M. Keglevic. | ||||||
(31) | Rule 13a - 14(a)/15d - 14(a) Certifications | |||||||
31(a) | — | Certification of John Young, principal executive officer of Energy Future Holdings Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||
31(b) | — | Certification of Paul M. Keglevic, principal financial officer of Energy Future Holdings Corp., pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||||
(32) | Section 1350 Certifications | |||||||
32(a) | — | Certification of John Young, principal executive officer of Energy Future Holdings Corp., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
32(b) | — | Certification of Paul M. Keglevic, principal financial officer of Energy Future Holdings Corp., pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | ||||||
(95) | Mine Safety Disclosures | |||||||
95(a) | — | Mine Safety Disclosures. | ||||||
(99) | Additional Exhibits | |||||||
Exhibits | Previously Filed With File Number* | As Exhibit | ||||||
99(a) | — | Condensed Statement of Consolidated Income – Twelve Months Ended June 30, 2012. | ||||||
99(b) | — | Energy Future Holdings Corp. Consolidated Adjusted EBITDA reconciliation for the six and twelve months ended June 30, 2012 and 2011. | ||||||
99(c) | — | Texas Competitive Electric Holdings Company LLC Consolidated Adjusted EBITDA reconciliation for the six and twelve months ended June 30, 2012 and 2011. | ||||||
99(d) | — | Energy Future Intermediate Holding Company LLC Consolidated Adjusted EBITDA reconciliation for the six and twelve months ended June 30, 2012 and 2011. | ||||||
XBRL Data Files | ||||||||
101.INS | — | XBRL Instance Document | ||||||
101.SCH | — | XBRL Taxonomy Extension Schema Document | ||||||
101.CAL | — | XBRL Taxonomy Extension Calculation Document | ||||||
101.DEF | — | XBRL Taxonomy Extension Definition Document | ||||||
101.LAB | — | XBRL Taxonomy Extension Labels Document | ||||||
101.PRE | — | XBRL Taxonomy Extension Presentation Document |
* | Incorporated herein by reference |
Energy Future Holdings Corp. | ||||
By: | /s/ STAN SZLAUDERBACH | |||
Name: | Stan Szlauderbach | |||
Title: | Senior Vice President and Controller | |||
(Principal Accounting Officer) |
ENERGY FUTURE INTERMEDIATE HOLDING COMPANY LLC | |
By: /s/ ANTHONY R. HORTON ________________________________________________ | |
Name: Anthony R. Horton | |
Title: Senior Vice President and Treasurer |
EFIH FINANCE INC. | |
By: /s/ ANTHONY R. HORTON ________________________________________________ | |
Name: Anthony R. Horton | |
Title: Senior Vice President and Treasurer |
THE BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee | |
By: /s/ JULIE HOFFMAN-RAMOS ________________________________________________ | |
Name: Julie Hoffman-Ramos | |
Title: Vice President |
1. | I have reviewed this quarterly report on Form 10-Q of Energy Future Holdings Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 30, 2012 | /s/ JOHN F. YOUNG | |||
Name: | John F. Young | ||||
Title: | President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Energy Future Holdings Corp.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: | July 30, 2012 | /s/ Paul M. Keglevic | |||
Name: | Paul M. Keglevic | ||||
Title: | Executive Vice President and Chief Financial Officer |
1. | The Company's Quarterly Report on Form 10-Q for the period ended June 30, 2012 (the "Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ JOHN F. YOUNG | ||
Name: | John F. Young | |
Title: | President and Chief Executive Officer |
1. | The Company's Quarterly Report on Form 10-Q for the period ended June 30, 2012 (the "Report") fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and |
2. | Information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Paul M. Keglevic | ||
Name: | Paul M. Keglevic | |
Title: | Executive Vice President and Chief Financial Officer |
Mine (a) | Section 104 S and S Citations (b) | Section 104(b) Orders | Section 104(d) Citations and Orders | Section 110(b)(2) Violations | Section 107(a) Orders | Total Dollar Value of MSHA Assessments Proposed (c) | Total Number of Mining Related Fatalities | Received Notice of Pattern of Violations Under Section 104(e) | Received Notice of Potential to Have Pattern Under Section 104(e) | Legal Actions Pending as of Last Day of Period (d) | Legal Actions Initiated During Period | Legal Actions Resolved During Period | |||||||||||||
Beckville | 1 | — | — | — | — | 21 | — | — | — | 5 | 1 | 2 | |||||||||||||
Big Brown | — | — | — | — | — | 25 | — | — | — | 2 | 1 | 2 | |||||||||||||
Kosse | 1 | — | — | — | — | 168 | — | — | — | 4 | 1 | — | |||||||||||||
Oak Hill | — | — | — | — | — | 5 | — | — | — | 2 | — | — | |||||||||||||
Sulphur Springs | 2 | — | — | — | — | 17 | — | — | — | 1 | — | 1 | |||||||||||||
Tatum | — | — | — | — | — | 5 | — | — | — | 2 | — | — | |||||||||||||
Three Oaks | 2 | — | 1 | — | — | 14 | — | — | — | 2 | — | — | |||||||||||||
Turlington | — | — | — | — | — | — | — | — | — | 1 | 1 | — | |||||||||||||
Winfield South | — | — | — | — | — | — | — | — | — | 1 | — | 1 |
(a) | Excludes mines for which there were no applicable events. |
(b) | Includes MSHA citations for health or safety standards that could significantly and substantially contribute to a serious injury if left unabated. |
(c) | Total value in thousands of dollars for proposed assessments received from MSHA for all citations and orders issued in the three months ended June 30, 2012, including but not limited to Sections 104, 107 and 110 citations and orders that are not required to be reported. |
(d) | Pending actions before the FMSHRC involving a coal or other mine. All 20 are contests of proposed penalties. |
Twelve Months Ended June 30, 2012 | |||
(millions of dollars) | |||
Operating revenues | $ | 6,296 | |
Fuel, purchased power costs and delivery fees | (3,030 | ) | |
Net gain from commodity hedging and trading activities | 1,148 | ||
Operating costs | (896 | ) | |
Depreciation and amortization | (1,438 | ) | |
Selling, general and administrative expenses | (715 | ) | |
Franchise and revenue-based taxes | (90 | ) | |
Other income | 62 | ||
Other deductions | (455 | ) | |
Interest income | 1 | ||
Interest expense and related charges | (4,153 | ) | |
Loss before income taxes and equity in earnings of unconsolidated subsidiaries | (3,270 | ) | |
Income tax benefit | 1,118 | ||
Equity in earnings of unconsolidated subsidiaries (net of tax) | 305 | ||
Net loss | $ | (1,847 | ) |
Exhibit 99(b) Energy Future Holdings Corp. Consolidated Adjusted EBITDA Reconciliation (millions of dollars) | |||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | Twelve Months Ended June 30, 2012 | Twelve Months Ended June 30, 2011 | ||||||||||||
Net loss | $ | (1,000 | ) | $ | (1,066 | ) | $ | (1,847 | ) | $ | (3,807 | ) | |||
Income tax benefit | (583 | ) | (599 | ) | (1,118 | ) | (175 | ) | |||||||
Interest expense and related charges | 1,804 | 1,945 | 4,153 | 3,425 | |||||||||||
Depreciation and amortization | 679 | 740 | 1,438 | 1,455 | |||||||||||
EBITDA | $ | 900 | $ | 1,020 | $ | 2,626 | $ | 898 | |||||||
Oncor distributions/dividends | 69 | 32 | 153 | 114 | |||||||||||
Interest income | (1 | ) | (2 | ) | (1 | ) | (3 | ) | |||||||
Amortization of nuclear fuel | 83 | 69 | 156 | 145 | |||||||||||
Purchase accounting adjustments (a) | 41 | 138 | 107 | 234 | |||||||||||
Impairment of goodwill | — | — | — | 4,100 | |||||||||||
Impairment and write-down of other assets (b) | 1 | 1 | 433 | 14 | |||||||||||
Debt extinguishment gains | — | (25 | ) | (26 | ) | (1,696 | ) | ||||||||
Net income attributable to noncontrolling interests | — | — | — | (1 | ) | ||||||||||
Equity in earnings of unconsolidated subsidiary | (141 | ) | (122 | ) | (305 | ) | (276 | ) | |||||||
Unrealized net loss resulting from hedging and trading transactions | 765 | 385 | 322 | 13 | |||||||||||
Amortization of "day one" net loss on Sandow 5 power purchase agreement | — | — | — | (11 | ) | ||||||||||
Noncash compensation expense (c) | 7 | 3 | 17 | 8 | |||||||||||
Severance expense | 1 | 5 | 3 | 5 | |||||||||||
Transition and business optimization costs (d) | 19 | 14 | 44 | 18 | |||||||||||
Transaction and merger expenses (e) | 19 | 18 | 38 | 41 | |||||||||||
Restructuring and other (f) | (4 | ) | 73 | (4 | ) | (42 | ) | ||||||||
Expenses incurred to upgrade or expand a generation station (g) | 60 | 100 | 100 | 100 | |||||||||||
Adjusted EBITDA per Incurrence Covenant | $ | 1,819 | $ | 1,709 | $ | 3,663 | $ | 3,661 | |||||||
Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions) | 764 | 723 | 1,564 | 1,446 | |||||||||||
Adjusted EBITDA per Restricted Payments Covenant | $ | 2,583 | $ | 2,432 | $ | 5,227 | $ | 5,107 |
(a) | Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits and gains on asset sales not recognized in net income due to purchase accounting. Twelve months ended 2011 includes $46 million related to an asset sale. |
(b) | Impairment of assets in the twelve months ended 2012 includes impairment of emission allowances and certain mining assets due to EPA rule issued in July 2011. |
(c) | Noncash compensation expenses represent amounts recorded under stock-based compensation accounting standards and exclude capitalized amounts. |
(d) | Transition and business optimization costs include certain incentive compensation expenses, as well as professional fees and other costs related to generation plant reliability and supply chain efficiency initiatives. |
(e) | Transaction and merger expenses primarily represent Sponsor Group management fees. |
(f) | Restructuring and other includes gains on termination of a long-term power sales contract and settlement of amounts due from hedging/trading counterparty, fees related to the April 2011 amendment and extension of the TCEH Senior Secured Facilities, and reversal of certain liabilities accrued in purchase accounting. |
(g) | Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs. |
Exhibit 99(c) Texas Competitive Electric Holdings Company LLC Consolidated Adjusted EBITDA Reconciliation (millions of dollars) | |||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | Twelve Months Ended June 30, 2012 | Twelve Months Ended June 30, 2011 | ||||||||||||
Net loss | $ | (883 | ) | $ | (951 | ) | $ | (1,672 | ) | $ | (4,377 | ) | |||
Income tax benefit | (449 | ) | (499 | ) | (867 | ) | (143 | ) | |||||||
Interest expense and related charges | 1,453 | 1,651 | 3,501 | 2,824 | |||||||||||
Depreciation and amortization | 663 | 726 | 1,407 | 1,424 | |||||||||||
EBITDA | $ | 784 | $ | 927 | $ | 2,369 | $ | (272 | ) | ||||||
Interest income | (26 | ) | (46 | ) | (67 | ) | (95 | ) | |||||||
Amortization of nuclear fuel | 83 | 69 | 156 | 145 | |||||||||||
Purchase accounting adjustments (a) | 21 | 115 | 63 | 187 | |||||||||||
Impairment of goodwill | — | — | — | 4,100 | |||||||||||
Impairment and write-down of other assets (b) | — | — | 430 | 12 | |||||||||||
Debt extinguishment gains | — | — | — | (687 | ) | ||||||||||
Unrealized net loss resulting from hedging and trading transactions | 765 | 385 | 322 | 13 | |||||||||||
Net loss attributable to noncontrolling interests | 1 | — | 1 | — | |||||||||||
EBITDA amount attributable to consolidated unrestricted subsidiaries | (4 | ) | (3 | ) | (8 | ) | (3 | ) | |||||||
Amortization of "day one" net loss on Sandow 5 power purchase agreement | — | — | — | (11 | ) | ||||||||||
Corporate depreciation, interest and income tax expenses included in SG&A expense | 9 | 7 | 18 | 11 | |||||||||||
Noncash compensation expense (c) | 5 | 3 | 14 | 7 | |||||||||||
Severance expense | 1 | 2 | 4 | 3 | |||||||||||
Transition and business optimization costs (d) | 19 | 15 | 46 | 23 | |||||||||||
Transaction and merger expenses (e) | 19 | 19 | 37 | 35 | |||||||||||
Restructuring and other (f) | (3 | ) | 70 | (6 | ) | (48 | ) | ||||||||
Expenses incurred to upgrade or expand a generation station (g) | 60 | 100 | 100 | 100 | |||||||||||
Adjusted EBITDA per Incurrence Covenant | $ | 1,734 | $ | 1,663 | $ | 3,479 | $ | 3,520 | |||||||
Expenses related to unplanned generation station outages | 49 | 91 | 138 | 132 | |||||||||||
Pro forma adjustment for Oak Grove 2 reaching 70% capacity in Q2 2011 (h) | — | 25 | — | 75 | |||||||||||
Other adjustments allowed to determine Adjusted EBITDA per Maintenance Covenant (i) | — | 8 | — | 28 | |||||||||||
Adjusted EBITDA per Maintenance Covenant | $ | 1,783 | $ | 1,787 | $ | 3,617 | $ | 3,755 |
(a) | Purchase accounting adjustments include amortization of the intangible net asset value of retail and wholesale power sales agreements, environmental credits, coal purchase contracts, nuclear fuel contracts and power purchase agreements and the stepped up value of nuclear fuel. Also include certain credits and gains on asset sales not recognized in net income due to purchase accounting. Twelve months ended 2011 includes $46 million related to an asset sale. |
(b) | Impairment of assets in the twelve months ended 2012 includes impairment of emission allowances and certain mining assets due to EPA rule issued in July 2011. |
(c) | Noncash compensation expenses represent amounts recorded under stock-based compensation accounting standards and exclude capitalized amounts. |
(d) | Transition and business optimization costs include certain incentive compensation expenses, as well as professional fees and other costs related to generation plant reliability and supply chain efficiency initiatives. |
(e) | Transaction and merger expenses primarily represent Sponsor Group management fees. |
(f) | Restructuring and other includes gains on termination of a long-term power sales contract and settlement of amounts due from hedging/trading counterparty, fees related to the April 2011 amendment and extension of the TCEH Senior Secured Facilities, and reversal of certain liabilities accrued in purchase accounting. |
(g) | Expenses incurred to upgrade or expand a generation station reflect noncapital outage costs. |
(h) | Pro forma adjustment for the six and twelve months ended June 30, 2011 represents the annualization of the actual three months ended June 30, 2011 EBITDA results for Oak Grove 2, which achieved the requisite 70% average capacity factor in the second quarter 2011. |
(i) | Primarily pre-operating expenses relating to Oak Grove and Sandow 5. |
Exhibit 99(d) Energy Future Intermediate Holding Company LLC Consolidated Adjusted EBITDA Reconciliation (millions of dollars) | |||||||||||||||
Six Months Ended June 30, 2012 | Six Months Ended June 30, 2011 | Twelve Months Ended June 30, 2012 | Twelve Months Ended June 30, 2011 | ||||||||||||
Net income | $ | 190 | $ | 207 | $ | 400 | $ | 395 | |||||||
Income tax expense | 29 | 47 | 55 | 55 | |||||||||||
Interest expense and related charges | 232 | 171 | 409 | 333 | |||||||||||
EBITDA | $ | 451 | $ | 425 | $ | 864 | $ | 783 | |||||||
Oncor Holdings distributions | 69 | 32 | 153 | 114 | |||||||||||
Interest income | (310 | ) | (303 | ) | (559 | ) | (507 | ) | |||||||
Equity in earnings of unconsolidated subsidiary (net of tax) | (141 | ) | (122 | ) | (305 | ) | (276 | ) | |||||||
Adjusted EBITDA per Incurrence Covenant | $ | 69 | $ | 32 | $ | 153 | $ | 114 | |||||||
Add Oncor Adjusted EBITDA (reduced by Oncor Holdings distributions) | 764 | 723 | 1,564 | 1,446 | |||||||||||
Adjusted EBITDA per Restricted Payments Covenant | $ | 833 | $ | 755 | $ | 1,717 | $ | 1,560 |
Short-Term Borrowings And Long-Term Debt (TCEH Interest Rate Swap Transactions) (Details) (USD $)
|
3 Months Ended | 6 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
|||||||||||
Derivative [Line Items] | |||||||||||||||
Unrealized net gain (loss) | $ (106,000,000) | [1] | $ (403,000,000) | [1] | $ 9,000,000 | [1] | $ (261,000,000) | [1] | |||||||
Interest rate swaps [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of interest rate derivatives | 32,872,000,000 | 32,872,000,000 | 32,955,000,000 | ||||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Realized net loss | (168,000,000) | (173,000,000) | (337,000,000) | (333,000,000) | |||||||||||
Unrealized net gain (loss) | (107,000,000) | (403,000,000) | 4,000,000 | (261,000,000) | |||||||||||
Total | (275,000,000) | (576,000,000) | (333,000,000) | (594,000,000) | |||||||||||
Accumulated Unrealized Gain (Loss) On Interest Rate Derivative Instruments Not Designated As Hedging Instruments | 2,227,000,000 | 2,227,000,000 | 2,231,000,000 | ||||||||||||
Accumulated Unrealized Gain (Loss) On Interest Rate Derivative Instruments Not Designated As Hedging Instruments Pre-Tax | 69,000,000 | 69,000,000 | 76,000,000 | ||||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | October 2012 through October 2014 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of interest rate derivatives | 18,570,000,000 | [2] | 18,570,000,000 | [2] | |||||||||||
Notional Amount of Interest Rate Derivatives, Gross | 800,000,000 | ||||||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | October 2015 through October 2017 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of interest rate derivatives | 12,600,000,000 | [3] | 12,600,000,000 | [3] | |||||||||||
Notional Amount of Interest Rate Derivatives, Gross | 1,020,000,000 | ||||||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Expires in October 2015 and the remainder in October 2017 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Notional amount of interest rate derivatives | 3,000,000,000 | 3,000,000,000 | |||||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Minimum [Member] | October 2012 through October 2014 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Swap interest rate (as a percent) | 5.50% | [2] | 5.50% | [2] | |||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Minimum [Member] | October 2015 through October 2017 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Swap interest rate (as a percent) | 6.80% | [3] | 6.80% | [3] | |||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Maximum [Member] | October 2012 through October 2014 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Swap interest rate (as a percent) | 9.30% | [2] | 9.30% | [2] | |||||||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Maximum [Member] | October 2015 through October 2017 [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Swap interest rate (as a percent) | 9.00% | [3] | 9.00% | [3] | |||||||||||
Debt obligation expiring in 2012 [Member] | Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member]
|
|||||||||||||||
Derivative [Line Items] | |||||||||||||||
Long-term debt, gross | $ 1,100,000,000 | $ 1,100,000,000 | |||||||||||||
|
Short-Term Borrowings And Long-Term Debt (Issuance of EFIH 11.75% Senior Secured Second Lien Notes) (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | 6 Months Ended | |
---|---|---|---|
Feb. 29, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
|
Texas Competitive Electric Holdings Company LLC [Member]
|
|||
Debt Instrument [Line Items] | |||
Unamortized discount | $ 11 | $ 11 | |
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member]
|
|||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 1,571 | ||
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member] | Revolving Credit Facility [Member]
|
|||
Debt Instrument [Line Items] | |||
Repayments of line of credit | 950 | ||
Energy Future Intermediate Holding CO LLC [Member]
|
|||
Debt Instrument [Line Items] | |||
Unamortized discount | 11 | 0 | |
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
|
|||
Debt Instrument [Line Items] | |||
Debt instrument, issued face amount | 1,150 | ||
Unamortized discount | 12 | ||
Cash dividends paid to EFH | 950 | ||
Long-term debt, gross | $ 1,150 | $ 0 | |
Registration Default, if not filed and declared effective after original issue date (in days) | 365 days | ||
Registration Default, if not filed and declared effective after original issue date, first quarter annual interest rate (in days) | 90 days | ||
Registration Default, if not filed and declared effective after original issue date, variable interest rate increase for quarter (as a percent) | 0.25% | ||
Registration Default, if not filed and declared effective after original issue date, variable interest rate increase after initial increase (as a percent) | 0.50% | ||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member] | Until March 1, 2015 [Member]
|
|||
Debt Instrument [Line Items] | |||
Redemption percentage, maximum (as a percent) | 35.00% | ||
Senior notes redemption price percentage of principal (as a percent) | 111.75% | ||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member] | March 2, 2015 through February 28, 2017 [Member]
|
|||
Debt Instrument [Line Items] | |||
Debt instrument redemption price percentage of principal amount plus accrued interest and the applicable premium as defined in the indenture governing the notes (as a percent) | 100.00% | ||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member] | March 1, 2017 and thereafter [Member]
|
|||
Debt Instrument [Line Items] | |||
Senior notes redemption price expressed as percentage of principal amount redeemed, plus accrued interest (as a percent) | 101.00% |
Supplementary Financial Information (Interest Expense and Related Charges) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||
Interest Expense and Related Charges [Line Items] | ||||||||||
Interest paid/accrued (including net amounts settled/accrued under interest rate swaps) | $ 803 | $ 768 | $ 1,594 | $ 1,453 | ||||||
Accrued interest to be paid with additional toggle notes (Note 6) | 59 | 54 | 117 | 110 | ||||||
Unrealized mark-to-market net (gain) loss on interest rate swaps | 106 | [1] | 403 | [1] | (9) | [1] | 261 | [1] | ||
Amortization of interest rate swap losses at dedesignation of hedge accounting | 2 | 7 | 5 | 17 | ||||||
Amortization of fair value debt discounts resulting from purchase accounting | 11 | 13 | 22 | 27 | ||||||
Amortization of debt issuance, amendment and extension costs and discounts | 48 | 64 | 95 | 93 | ||||||
Capitalized interest | (11) | (8) | (20) | (16) | ||||||
Total interest expense and related charges | 1,018 | 1,301 | 1,804 | 1,945 | ||||||
Interest rate swaps [Member] | Texas Competitive Electric Holdings Company LLC [Member]
|
||||||||||
Interest Expense and Related Charges [Line Items] | ||||||||||
Unrealized mark-to-market net (gain) loss on interest rate swaps | 107 | 403 | (4) | 261 | ||||||
Interest rate swaps [Member] | EFH Corp. [Member]
|
||||||||||
Interest Expense and Related Charges [Line Items] | ||||||||||
Unrealized mark-to-market net (gain) loss on interest rate swaps | $ (1) | $ (5) | ||||||||
|
Commitments And Contingencies (Details) (USD $)
In Millions, unless otherwise specified |
1 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Debt obligation expiring in 2014 [Member]
|
Jun. 30, 2012
Financial Standby Letter of Credit [Member]
Texas Competitive Electric Holdings Company LLC [Member]
|
Jun. 30, 2012
Financial Standby Letter of Credit [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Support risk management and trading margin requirements, including over-the-counter hedging transactions and collateral postings with ERCOT [Member]
|
Jun. 30, 2012
Financial Standby Letter of Credit [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Support floating rate pollution control revenue bond debt [Member]
|
Jun. 30, 2012
Financial Standby Letter of Credit [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Support Retail Electric Provider's financial requirements with the PUCT [Member]
|
Jun. 30, 2012
Financial Standby Letter of Credit [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Miscellaneous credit support requirements [Member]
|
Jun. 30, 2012
TXU Gas Company [Member]
Indemnification Agreement [Member]
|
Jun. 30, 2012
Liability related to assets retained by TXU Gas Company, including certain inactive gas plant sites not acquired by Atmos [Member]
TXU Gas Company [Member]
Indemnification Agreement [Member]
|
Jun. 30, 2012
Contingent liabilities associated with preclosing tax and employee related matters [Member]
TXU Gas Company [Member]
Indemnification Agreement [Member]
|
Feb. 29, 2012
Cross-State Air Pollution Rule [Member]
|
|
Commitments and contingencies [Line Items] | |||||||||||
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 1,900 | $ 500 | $ 1,400 | ||||||||
Letters of Credit | 0 | 866 | 448 | 208 | 71 | 139 | |||||
Long-term debt, gross | $ 204 | ||||||||||
Emissions budget generation assets lower sulfur dioxide requirements (as a percent) | 6.00% | ||||||||||
Emissions budget generation assets higher annual nitrogen oxides requirements (as a percent) | 3.00% | ||||||||||
Emissions budget generation assets higher seasonal nitrogen oxides requirements (as a percent) | 2.00% |
Short-Term Borrowings And Long-Term Debt (Long-Term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Feb. 29, 2012
|
Dec. 31, 2011
|
||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||||||||||||||||||||
Debt and capital lease obligations | $ 36,667 | $ 35,407 | |||||||||||||||||||||
Long-term debt due currently | (106) | (47) | |||||||||||||||||||||
Total long-term debt | 36,561 | 35,360 | |||||||||||||||||||||
Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 4,978 | 4,811 | |||||||||||||||||||||
EFH Corp. [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Capital lease obligations | 0 | 1 | |||||||||||||||||||||
Unamortized premium | 6 | 6 | |||||||||||||||||||||
Unamortized fair value premium (discount) | (413) | [1] | (430) | [1] | |||||||||||||||||||
Debt and capital lease obligations | 3,309 | 3,272 | |||||||||||||||||||||
EFH Corp. [Member] | Senior Secured Debt [Member] | 9.75% Fixed Senior Secured First Lien Notes due October 15, 2019 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 115 | 115 | |||||||||||||||||||||
Stated interest rate (as a percent) | 9.75% | ||||||||||||||||||||||
EFH Corp. [Member] | Senior Secured Debt [Member] | 10% Fixed Senior Secured First Lien Notes due January 15, 2020 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,061 | 1,061 | |||||||||||||||||||||
Stated interest rate (as a percent) | 10.00% | ||||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 660 | ||||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 10.875% Fixed Senior Notes due November 1, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 196 | [2] | 196 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 10.875% | [2] | |||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 10.875% Fixed Senior Notes due November 1, 2017 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,591 | 1,591 | |||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 11.25 / 12.00% Senior Toggle Notes due November 1, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 464 | [2] | 438 | [2] | |||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 11.25 / 12.00% Senior Toggle Notes due November 1, 2017 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 2,951 | 2,784 | |||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 5.55% Fixed Series P Senior Notes due November 15, 2014 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 326 | [2] | 326 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 5.55% | ||||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 5.55% Fixed Series P Senior Notes due November 15, 2014 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 45 | 45 | |||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 6.50% Fixed Series Q Senior Notes due November 15, 2024 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 740 | [2] | 740 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 6.50% | ||||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 6.50% Fixed Series Q Senior Notes due November 15, 2024 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 6 | 6 | |||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 6.55% Fixed Series R Senior Notes due November 15, 2034 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 744 | [2] | 744 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 6.55% | ||||||||||||||||||||||
EFH Corp. [Member] | Fixed Senior Notes [Member] | 6.55% Fixed Series R Senior Notes due November 15, 2034 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 3 | 3 | |||||||||||||||||||||
EFH Corp. [Member] | Building Financing [Member] | 8.82% Building Financing due semiannually through February 11, 2022 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 57 | [3] | 61 | [3] | |||||||||||||||||||
Unamortized fair value premium (discount) | 13 | [1],[3] | 14 | [1],[3] | |||||||||||||||||||
Stated interest rate (as a percent) | 8.82% | ||||||||||||||||||||||
EFH Corp. [Member] | Long-term Debt and Capital Lease Obligations Excluding Pollution Control Revenue Bonds, Current [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt due currently | (46) | ||||||||||||||||||||||
Energy Future Intermediate Holding CO LLC [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Unamortized discount | (11) | 0 | |||||||||||||||||||||
Debt and capital lease obligations | 3,866 | 2,727 | |||||||||||||||||||||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 9.75% Fixed Senior Secured First Lien Notes due October 15, 2019 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 141 | 141 | |||||||||||||||||||||
Stated interest rate (as a percent) | 9.75% | ||||||||||||||||||||||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 10% Fixed Senior Secured First Lien Notes due December 1, 2020 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 2,180 | 2,180 | |||||||||||||||||||||
Stated interest rate (as a percent) | 10.00% | ||||||||||||||||||||||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11% Senior Secured Second Lien Notes due October 1, 2021 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 406 | 406 | |||||||||||||||||||||
Stated interest rate (as a percent) | 11.00% | ||||||||||||||||||||||
Energy Future Intermediate Holding CO LLC [Member] | Senior Secured Debt [Member] | 11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,150 | 0 | |||||||||||||||||||||
Unamortized discount | (12) | ||||||||||||||||||||||
Stated interest rate (as a percent) | 11.75% | ||||||||||||||||||||||
Energy Future Competitive Holdings Company [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Unamortized fair value premium (discount) | (8) | [1] | (8) | [1] | |||||||||||||||||||
Debt and capital lease obligations | 83 | 85 | |||||||||||||||||||||
Energy Future Competitive Holdings Company [Member] | Fixed Notes [Member] | 9.58% Fixed Notes due in annual installments through December 4, 2019 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 41 | 41 | |||||||||||||||||||||
Stated interest rate (as a percent) | 9.58% | ||||||||||||||||||||||
Energy Future Competitive Holdings Company [Member] | Fixed Notes [Member] | 8.254% Fixed Notes due in quarterly installments through December 31, 2021 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 41 | 43 | |||||||||||||||||||||
Stated interest rate (as a percent) | 8.254% | ||||||||||||||||||||||
Energy Future Competitive Holdings Company [Member] | Junior Subordinated Debentures [Member] | Floating Rate Junior Subordinated Debentures, Series D due January 30, 2037 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1 | [4] | 1 | [4] | |||||||||||||||||||
Effective interest rate (as a percent) | 1.266% | [4] | |||||||||||||||||||||
Energy Future Competitive Holdings Company [Member] | Junior Subordinated Debentures [Member] | 8.175% Fixed Junior Subordinated Debentures, Series E due January 30, 2037 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 8 | 8 | |||||||||||||||||||||
Stated interest rate (as a percent) | 8.175% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Capital lease obligations | 71 | 63 | |||||||||||||||||||||
Other | 3 | 3 | |||||||||||||||||||||
Unamortized discount | (11) | (11) | |||||||||||||||||||||
Unamortized fair value premium (discount) | (1) | [1] | (1) | [1] | |||||||||||||||||||
Debt and capital lease obligations | 29,409 | 29,323 | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Pollution control revenue bonds [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt due currently | (60) | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Pollution control revenue bonds [Member] | Trinity River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Unamortized fair value premium (discount) | (116) | [1] | (120) | [1] | |||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,571 | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member] | 11.5% Senior Secured Notes due October 1, 2020 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,750 | 1,750 | |||||||||||||||||||||
Stated interest rate (as a percent) | 11.50% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member] | 15% Senior Secured Second Lien Notes due April 1, 2021 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 336 | 336 | |||||||||||||||||||||
Stated interest rate (as a percent) | 15.00% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Senior Secured Debt [Member] | 15% Senior Secured Second Lien Notes due April 1, 2021, Series B [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,235 | 1,235 | |||||||||||||||||||||
Stated interest rate (as a percent) | 15.00% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 4,781 | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.25% Fixed Senior Notes due November 1, 2015 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,833 | [2] | 1,833 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 10.25% | [2] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.25% Fixed Senior Notes due November 1, 2015 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 213 | 213 | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.25% Fixed Senior Notes due November 1, 2015, Series B [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,292 | [2] | 1,292 | [2] | |||||||||||||||||||
Stated interest rate (as a percent) | 10.25% | [2] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.25% Fixed Senior Notes due November 1, 2015, Series B [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 150 | 150 | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,656 | 1,568 | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 7% Fixed Senior Notes due March 15, 2013 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 5 | 5 | |||||||||||||||||||||
Stated interest rate (as a percent) | 7.00% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 20,407 | [2],[4],[5] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member] | TCEH Term Loan Facilities maturing October 10, 2014 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 3,809 | [4],[5] | 3,809 | [4],[5] | |||||||||||||||||||
Interest rate at period end (as a percent) | 3.741% | [4],[5] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member] | Term Loan Facilities maturing October 2014 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Notional amount of interest rate derivatives | 18,570 | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member] | Term Loan Facilities maturing from October 2014 through October 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Notional amount of interest rate derivatives | 12,600 | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member] | TCEH Term Loan Facilities maturing October 10, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 15,351 | [2],[4],[5] | 15,351 | [2],[4],[5] | |||||||||||||||||||
Interest rate at period end (as a percent) | 4.741% | [2],[4],[5] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Term loan Facilities [Member] | TCEH Term Loan Facilities maturing October 10, 2017 [Member] | Consolidation, Eliminations [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 19 | 19 | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Letter of Credit [Member] | Letter of Credit Facility maturing October 2014 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 42 | [4] | 42 | [4] | |||||||||||||||||||
Interest rate at period end (as a percent) | 3.745% | [4] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Letter of Credit [Member] | TCEH Letter of Credit Facility maturing October 10, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 1,020 | [4] | 1,020 | [4] | |||||||||||||||||||
Interest rate at period end (as a percent) | 4.745% | [4] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Commodity Collateral Posting Facility [Member] | Commodity Collateral Posting Facility maturing December 2012 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 0 | [6] | 0 | [6] | |||||||||||||||||||
Interest rate at period end (as a percent) | 1.95% | [6] | |||||||||||||||||||||
Debt Instrument, interest rate excludes quarterly maintenance fee | 11 | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | Sabine River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | |||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 5.40% Fixed Series 1994A due May 1, 2029 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 39 | 39 | |||||||||||||||||||||
Stated interest rate (as a percent) | 5.40% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 7.70% Fixed Series 1999A due April 1, 2033 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 111 | 111 | |||||||||||||||||||||
Stated interest rate (as a percent) | 7.70% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.75% Fixed Series 1999B due September 1, 2034, remarketing date April 1, 2013 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 16 | [7] | 16 | [7] | |||||||||||||||||||
Stated interest rate (as a percent) | 6.75% | [7] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 7.70% Fixed Series 1999C due March 1, 2032 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 50 | 50 | |||||||||||||||||||||
Stated interest rate (as a percent) | 7.70% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 8.25% Fixed Series 2001A due October 1, 2030 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 71 | 71 | |||||||||||||||||||||
Stated interest rate (as a percent) | 8.25% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 8.25% Fixed Series 2001D-1 due May 1, 2033 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 171 | 171 | |||||||||||||||||||||
Stated interest rate (as a percent) | 8.25% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | Floating Series 2001D-2 due May 1, 2033 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 97 | [8] | 97 | [8] | |||||||||||||||||||
Effective interest rate (as a percent) | 0.245% | [8] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | Floating Taxable Series 2001I due December 1, 2036 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 62 | [9] | 62 | [9] | |||||||||||||||||||
Effective interest rate (as a percent) | 0.251% | [9] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | Floating Series 2002A due May 1, 2037 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 45 | [8] | 45 | [8] | |||||||||||||||||||
Effective interest rate (as a percent) | 0.245% | [8] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.75% Fixed Series 2003A due April 1, 2038, remarketing date April 1, 2013 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 44 | [7] | 44 | [7] | |||||||||||||||||||
Stated interest rate (as a percent) | 6.75% | [7] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.30% Fixed Series 2003B due July 1, 2032 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 39 | 39 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.30% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.75% Fixed Series 2003C due October 1, 2038 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 52 | 52 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.75% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 5.40% Fixed Series 2003D due October 1, 2029, remarketing date October 1, 2014 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 31 | [7] | 31 | [7] | |||||||||||||||||||
Stated interest rate (as a percent) | 5.40% | [7] | |||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 5.00% Fixed Series 2006 due March 1, 2041 [Member] | Brazos River Authority [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 100 | 100 | |||||||||||||||||||||
Stated interest rate (as a percent) | 5.00% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.45% Fixed Series 2000A due June 1, 2021 [Member] | Sabine River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 51 | 51 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.45% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 5.20% Fixed Series 2001C due May 1, 2028 [Member] | Sabine River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 70 | 70 | |||||||||||||||||||||
Stated interest rate (as a percent) | 5.20% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 5.80% Fixed Series 2003A due July 1, 2022 [Member] | Sabine River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 12 | 12 | |||||||||||||||||||||
Stated interest rate (as a percent) | 5.80% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.15% Fixed Series 2003B due August 1, 2022 [Member] | Sabine River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 45 | 45 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.15% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed/Floating Series [Member] | 6.25% Fixed Series 200A due May 1, 2028 [Member] | Trinity River Authority of Texas [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | 14 | 14 | |||||||||||||||||||||
Stated interest rate (as a percent) | 6.25% | ||||||||||||||||||||||
Texas Competitive Electric Holdings Company LLC [Member] | Fixed Secured Facility Bonds [Member] | 7.46% Fixed Secured Facility Bonds with amortizing payments through January 2015 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Long-term debt, gross | $ 14 | $ 28 | |||||||||||||||||||||
Stated interest rate (as a percent) | 7.46% | ||||||||||||||||||||||
Minimum [Member] | EFH Corp. [Member] | Fixed Senior Notes [Member] | 11.25 / 12.00% Senior Toggle Notes due November 1, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Effective interest rate (as a percent) | 11.25% | [2] | |||||||||||||||||||||
Minimum [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Effective interest rate (as a percent) | 10.50% | ||||||||||||||||||||||
Maximum [Member] | EFH Corp. [Member] | Fixed Senior Notes [Member] | 11.25 / 12.00% Senior Toggle Notes due November 1, 2017 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Effective interest rate (as a percent) | 12.00% | [2] | |||||||||||||||||||||
Maximum [Member] | Texas Competitive Electric Holdings Company LLC [Member] | Fixed Senior Notes [Member] | 10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
|||||||||||||||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||||
Effective interest rate (as a percent) | 11.25% | ||||||||||||||||||||||
|
Supplementary Financial Information (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplementary Financial Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other income and deductions | Other Income and Deductions
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of interest expense and related charges | Interest Expense and Related Charges
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of restricted cash | Restricted Cash
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of inventories by major category | Inventories by Major Category
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of other investments | Other Investments
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of investments in the fund | A summary of investments in the fund follows:
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of proceeds from sales of available-for-sale securities and the related realized gains and losses from such sales | The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from such sales.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of asset retirement and mining reclamation obligations | The following table summarizes the changes to these obligations, reported in other current liabilities and other noncurrent liabilities and deferred credits in the balance sheet, in the six months ended June 30, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of other noncurrent liabilities and deferred credits | Other Noncurrent Liabilities and Deferred Credits The balance of other noncurrent liabilities and deferred credits consists of the following:
____________
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated amortization of unfavorable purchase and sales contracts for each of the next five fiscal years | The estimated amortization of unfavorable purchase and sales contracts for each of the next five fiscal years is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of supplemental cash flow information | Supplemental Cash Flow Information
____________
|
Supplementary Financial Information (Nuclear Decommissioning Trust) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
Jun. 30, 2012
Debt securities [Member]
|
Dec. 31, 2011
Debt securities [Member]
|
Jun. 30, 2012
Equity securities [Member]
|
Dec. 31, 2011
Equity securities [Member]
|
||||||||||||||
Schedule of Schedule of Decommissioning Fund Investments [Line Items] | ||||||||||||||||||||||
Cost | $ 475 | [1] | $ 475 | [1] | $ 461 | [1] | $ 238 | [1],[2] | $ 231 | [1],[2] | $ 237 | [1],[3] | $ 230 | [1],[3] | ||||||||
Unrealized gain | 161 | 161 | 134 | 15 | [2] | 13 | [2] | 146 | [3] | 121 | [3] | |||||||||||
Unrealized loss | (17) | (17) | (21) | (1) | [2] | (2) | [2] | (16) | [3] | (19) | [3] | |||||||||||
Fair market value | 619 | 619 | 574 | 252 | [2] | 242 | [2] | 367 | [3] | 332 | [3] | |||||||||||
Debt securities, average coupon rate (as a percent) | 4.14% | 4.38% | ||||||||||||||||||||
Average maturity (in years) | 6 years 1 month 6 days | 6 years 3 months 18 days | ||||||||||||||||||||
Decommissioning Fund Investments, debt maturities, one through five years, fair value | 99 | |||||||||||||||||||||
Decommissioning Fund Investments, debt maturities, five through ten years, fair value | 52 | |||||||||||||||||||||
Decommissioning Fund Investments, debt maturities, after ten years, fair value | 101 | |||||||||||||||||||||
Realized gains | 1 | 1 | 1 | 1 | ||||||||||||||||||
Realized losses | (1) | 0 | (1) | (2) | ||||||||||||||||||
Proceeds from sales of securities | 21 | 1,050 | 31 | 1,784 | ||||||||||||||||||
Investments in securities | $ (24) | $ (1,054) | $ (38) | $ (1,792) | ||||||||||||||||||
|
Supplementary Financial Information (Supplemental Cash Flow Information) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|||||||
Cash payments (receipts) related to: | ||||||||
Interest paid | $ 1,552 | [1] | $ 1,356 | [1] | ||||
Capitalized interest | (20) | (16) | ||||||
Interest paid (net of capitalized interest) | 1,532 | 1,340 | ||||||
Income taxes | 58 | [1] | 20 | [1] | ||||
Noncash investing and financing activities: | ||||||||
Principal amount of toggle notes issued in lieu of cash interest (Note 6) | 114 | 100 | ||||||
Construction expenditures | 83 | [2] | 35 | [2] | ||||
Debt exchange transactions | $ 0 | $ (22) | ||||||
|
Supplementary Financial Information (Restricted Cash) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Restricted Cash and Investments, Current | $ 65 | $ 129 |
Restricted Cash and Investments, Noncurrent | 947 | 947 |
Amounts related to margin deposits held [Member]
|
||
Restricted Cash and Investments, Current | 65 | 129 |
Restricted Cash and Investments, Noncurrent | 0 | 0 |
Texas Competitive Electric Holdings Company LLC [Member] | Amounts Related to TCEH's Letter of Credit Facility (Note 6) [Member]
|
||
Restricted Cash and Investments, Current | 0 | 0 |
Restricted Cash and Investments, Noncurrent | $ 947 | $ 947 |
Goodwill And Identifiable Intangible Assets (Tables)
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The following table provides the goodwill balances at June 30, 2012 and December 31, 2011, all of which relate to the Competitive Electric segment. There were no changes to the goodwill balances in the three and six months ended June 30, 2012. None of the goodwill is being deducted for tax purposes.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of identifiable intangible assets reported in the balance sheet | Identifiable intangible assets reported in the balance sheet are comprised of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of amortization expense related to intangible assets (including income statement line item) | Amortization expense related to intangible assets (including income statement line item) consisted of:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of estimated aggregate amortization expense of intangible assets for each of the next five fiscal years | – The estimated aggregate amortization expense of intangible assets for each of the next five fiscal years is as follows:
|
Short-Term Borrowings And Long-Term Debt (TCEH Senior Secured Facilities) (Details) (Texas Competitive Electric Holdings Company LLC [Member], USD $)
In Millions, unless otherwise specified |
6 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Term loan Facilities [Member]
|
Jun. 30, 2012
Term loan Facilities [Member]
TCEH Term Loan Facilities maturing October 10, 2014 [Member]
|
Dec. 31, 2011
Term loan Facilities [Member]
TCEH Term Loan Facilities maturing October 10, 2014 [Member]
|
Jun. 30, 2012
Term loan Facilities [Member]
TCEH Term Loan Facilities maturing October 10, 2017 [Member]
|
Dec. 31, 2011
Term loan Facilities [Member]
TCEH Term Loan Facilities maturing October 10, 2017 [Member]
|
Jun. 30, 2012
Letter of Credit [Member]
Letter of Credit Facility maturing October 2014 [Member]
|
Dec. 31, 2011
Letter of Credit [Member]
Letter of Credit Facility maturing October 2014 [Member]
|
Jun. 30, 2012
Letter of Credit [Member]
TCEH Letter of Credit Facility maturing October 10, 2017 [Member]
|
Dec. 31, 2011
Letter of Credit [Member]
TCEH Letter of Credit Facility maturing October 10, 2017 [Member]
|
Jun. 30, 2012
Senior Notes [Member]
|
Jun. 30, 2012
Senior Notes [Member]
10.25% Fixed Senior Notes due November 1, 2015 [Member]
|
Dec. 31, 2011
Senior Notes [Member]
10.25% Fixed Senior Notes due November 1, 2015 [Member]
|
Jun. 30, 2012
Senior Notes [Member]
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
Dec. 31, 2011
Senior Notes [Member]
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
||||||||||||||||||
Line of Credit Facility [Line Items] | |||||||||||||||||||||||||||||||
Long-term debt, gross | $ 20,407 | [1],[2],[3] | $ 3,809 | [2],[3] | $ 3,809 | [2],[3] | $ 15,351 | [1],[2],[3] | $ 15,351 | [1],[2],[3] | $ 42 | [2] | $ 42 | [2] | $ 1,020 | [2] | $ 1,020 | [2] | $ 4,781 | $ 1,833 | [1] | $ 1,833 | [1] | $ 1,656 | $ 1,568 | ||||||
Basis Spread on LIBOR Rate (as a percent) | 3.50% | 4.50% | 3.50% | 4.50% | |||||||||||||||||||||||||||
Springing maturity provision pursuant if in the event that aggregate principal amount to the extent held at the determination date, Exceeds Minimum | $ 500 | $ 150 | |||||||||||||||||||||||||||||
Springing maturity provision, remaining outstanding (in days) prior to maturity | 91 days | ||||||||||||||||||||||||||||||
Total debt to Adjusted EBITDA (as a ratio) | 6 | ||||||||||||||||||||||||||||||
Springing maturity provision, remaining outstanding (in days) prior to maturity automatic extention if Adjusted EBITDA ratio at determination date | 90 days | ||||||||||||||||||||||||||||||
|
Trade Accounts Receivable And Accounts Receivable Securitization Program (Narrative) (Details) (USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unbilled revenue related to gross trade receivables | $ 310,000,000 | $ 269,000,000 |
Texas Competitive Electric Holdings Company LLC [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maximum funding amount currently available under program | 350,000,000 | |
Program funding | 142,000,000 | 104,000,000 |
Decrease in customer deposits held by the originator because TCEH's credit ratings were lower than Ba3/BB- | (40,000,000) | |
Texas Competitive Electric Holdings Company LLC [Member] | Minimum [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable Securitization Progam, Program termination, expected period to achieve a normalized level of cash flows (in days) | 16 days | |
Texas Competitive Electric Holdings Company LLC [Member] | Maximum [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts Receivable Securitization Progam, Program termination, expected period to achieve a normalized level of cash flows (in days) | 30 days | |
Texas Competitive Electric Holdings Company LLC [Member] | TXU Receivables Company [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Early termination if delinquency ratio for sold receivables exceeds maximum days (in days) | 31 days | |
Early termination if default ratio for delinquent or deemed uncollectible exceeds maximum (in days) | 91 days | |
Termination if defaults of any payment to debt, minimum | 50,000 | |
Affiliate acting as collection agent, default in any payment of debt other than hedging obligations result in default, minimum | 200,000,000 | |
Consolidation, Eliminations [Member] | Texas Competitive Electric Holdings Company LLC [Member] | TXU Receivables Company [Member]
|
||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Subordinated notes payable | $ 402,000,000 | $ 420,000,000 |
Supplementary Financial Information (Other Noncurrent Liabilities and Deferred Credits) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Dec. 31, 2011
|
||||||
Other Noncurrent Liabilities Noncurrent and Deferred Credits [Line Items] | ||||||||||
Uncertain tax positions (including accrued interest) | $ 1,970 | $ 1,970 | $ 1,972 | |||||||
Retirement plan and other employee benefits | 1,647 | [1] | 1,647 | [1] | 1,664 | [1] | ||||
Asset retirement and mining reclamation obligations | 466 | 466 | 505 | |||||||
Unfavorable purchase and sales contracts | 633 | 633 | 647 | |||||||
Other | 35 | 35 | 28 | |||||||
Total other noncurrent liabilities and deferred credits | 4,751 | 4,751 | 4,816 | |||||||
Expected Reduction Of Uncertain Tax Positions Upon Audit Resolution | 700 | |||||||||
Amortization of Deferred Charges | ||||||||||
Amortization of Unfavorable Purchase and Sales Contracts | 7 | 7 | 14 | 13 | ||||||
Future Amortization Expense | ||||||||||
2012 | 27 | |||||||||
2013 | 26 | |||||||||
2014 | 25 | |||||||||
2015 | 25 | |||||||||
2016 | 25 | |||||||||
Oncor [Member]
|
||||||||||
Other Noncurrent Liabilities Noncurrent and Deferred Credits [Line Items] | ||||||||||
Retirement plan and other employee benefits | $ 1,201 | $ 1,201 | $ 1,235 | |||||||
|
Consolidation Of Variable Interest Entities (Carrying Amounts and Classifications of Assets and Liabilities Related to Consolidated VIEs) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Dec. 31, 2011
|
Jun. 30, 2011
|
Dec. 31, 2010
|
Jun. 30, 2012
Consolidated VIEs [Member]
Nuclear_generation_units
|
Dec. 31, 2011
Consolidated VIEs [Member]
|
Jun. 30, 2012
MHI
Consolidated VIEs [Member]
|
Jun. 30, 2012
MHI
Texas Competitive Electric Holdings Company LLC [Member]
Consolidated VIEs [Member]
|
|
Variable Interest Entity [Line Items] | ||||||||
Number of new nuclear generation units in development (in nuclear generation units) | 2 | |||||||
Variable interest entity, ownership percentage (as a percent) | 12.00% | 88.00% | ||||||
Assets | ||||||||
Cash and cash equivalents | $ 1,063 | $ 826 | $ 780 | $ 1,534 | $ 11 | $ 10 | ||
Trade accounts receivable — net | 769 | 767 | 544 | 525 | ||||
Property, plant and equipment | 19,111 | 19,427 | 138 | 132 | ||||
Other assets, including $2 million of current assets in both periods | 6 | 6 | ||||||
Other current assets | 76 | 82 | 2 | 2 | ||||
Total assets | 43,440 | 44,077 | 699 | 673 | ||||
Liabilities | ||||||||
Short-term borrowings | 327 | 774 | 142 | 104 | ||||
Trade accounts payable | 507 | 574 | 1 | 1 | ||||
Other current liabilities | 362 | 497 | 10 | 9 | ||||
Total liabilities | $ 52,173 | $ 51,834 | $ 153 | $ 114 |
Short-Term Borrowings And Long-Term Debt (TCEH 10.25% Senior Notes (including Series B) and 10.50/11.25% Senior Toggle Notes (collectively, the TCEH Senior Notes)) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | 6 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Senior Notes [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Senior Notes [Member]
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
Dec. 31, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Senior Notes [Member]
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
Jun. 30, 2012
Energy Future Competitive Holdings Company [Member]
|
Jun. 30, 2012
Consolidation, Eliminations [Member]
|
Dec. 31, 2011
Consolidation, Eliminations [Member]
|
Jun. 30, 2012
Consolidation, Eliminations [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Financial Guarantee by EFCH [Member]
Senior Notes [Member]
|
Jun. 30, 2012
Interest period until November 2012 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Senior Notes [Member]
10.50 / 11.25% Senior Toggle Notes due November 1, 2016 [Member]
|
|
Debt Instrument [Line Items] | ||||||||
Long-term debt, gross | $ 4,781 | $ 1,656 | $ 1,568 | $ 4,978 | $ 4,811 | $ 363 | ||
Ownership interest (as a percent) | 100.00% | |||||||
Option to pay cash (as a percent) in addition to PIK interest | 50.00% | |||||||
Option to pay PIK interest (as a percent) in addition to cash | 50.00% |
Related Party Transactions (Narrative) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
Sponsor Group [Member]
|
Jun. 30, 2011
Sponsor Group [Member]
|
Jun. 30, 2012
Sponsor Group [Member]
|
Jun. 30, 2011
Sponsor Group [Member]
|
Jun. 30, 2012
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Facilities [Member]
TCEH to EFH [Member]
|
Dec. 31, 2011
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Facilities [Member]
TCEH to EFH [Member]
|
Jun. 30, 2012
EFH Corp. [Member]
Oncor [Member]
|
Jun. 30, 2011
EFH Corp. [Member]
Oncor [Member]
|
Jun. 30, 2012
EFH Corp. [Member]
Oncor [Member]
|
Jun. 30, 2011
EFH Corp. [Member]
Oncor [Member]
|
Jun. 30, 2012
EFH Corp. [Member]
Oncor Holdings or Oncor [Member]
|
Jun. 30, 2011
EFH Corp. [Member]
Oncor Holdings or Oncor [Member]
|
Jun. 30, 2012
EFH Corp. [Member]
Senior Notes [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Jun. 30, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Jun. 30, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Dec. 31, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Debt [Member]
|
Jun. 30, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Line of Credit and Secured Debt [Member]
Goldman, Sachs & Co. [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Facilities [Member]
|
Apr. 30, 2011
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Facilities [Member]
Goldman, Sachs & Co. [Member]
|
Jun. 30, 2012
Texas Competitive Electric Holdings Company LLC [Member]
Senior Notes [Member]
|
Jun. 30, 2012
11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Debt [Member]
|
Feb. 29, 2012
11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Debt [Member]
|
Dec. 31, 2011
11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Debt [Member]
|
Feb. 29, 2012
11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Debt [Member]
Goldman, Sachs & Co. [Member]
|
Feb. 29, 2012
11.75% Senior Secured Second Lien Notes due March 1, 2022 [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Debt [Member]
Affiliates of KKR and TPG Management, L.P. [Member]
|
Jun. 30, 2012
11.5% Senior Secured Notes due October 1, 2020 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Debt [Member]
|
Dec. 31, 2011
11.5% Senior Secured Notes due October 1, 2020 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Debt [Member]
|
Apr. 30, 2011
11.5% Senior Secured Notes due October 1, 2020 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Debt [Member]
Goldman, Sachs & Co. [Member]
|
Apr. 30, 2011
11.5% Senior Secured Notes due October 1, 2020 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Senior Secured Debt [Member]
Affiliates of KKR and TPG Management, L.P. [Member]
|
Jun. 30, 2012
Noninterest bearing note payable maturing in 2016 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Notes Payable [Member]
Oncor [Member]
|
Jun. 30, 2011
Noninterest bearing note payable maturing in 2016 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Notes Payable [Member]
Oncor [Member]
|
Jun. 30, 2012
Noninterest bearing note payable maturing in 2016 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Notes Payable [Member]
Oncor [Member]
|
Jun. 30, 2011
Noninterest bearing note payable maturing in 2016 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Notes Payable [Member]
Oncor [Member]
|
Dec. 31, 2011
Noninterest bearing note payable maturing in 2016 [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Notes Payable [Member]
Oncor [Member]
|
Jun. 30, 2012
Indirect Guarantee of Indebtedness [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Facilities [Member]
TCEH to EFH [Member]
|
Dec. 31, 2011
Indirect Guarantee of Indebtedness [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Secured Facilities [Member]
TCEH to EFH [Member]
|
Jun. 30, 2012
Minimum [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
Rating-Agencies-Downgrades
|
Jun. 30, 2012
OPEB [Member]
EFH Corp. [Member]
Oncor [Member]
|
Dec. 31, 2011
OPEB [Member]
EFH Corp. [Member]
Oncor [Member]
|
Jun. 30, 2012
Related Party Transactions, Debt Held By Related Party [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Notes [Member]
Texas Competitive Electric Holdings Company LLC [Member]
|
Jun. 30, 2012
Related Party Transactions, Debt Held By Related Party [Member]
Energy Future Intermediate Holding CO LLC [Member]
Senior Notes [Member]
EFH Corp. [Member]
|
Jun. 30, 2012
Related Party Transactions, Debt Held By Related Party [Member]
EFH Corp. [Member]
Senior Notes [Member]
Texas Competitive Electric Holdings Company LLC [Member]
|
Jun. 30, 2012
Related Party Transaction, Decommisioning Liablity [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Dec. 31, 2011
Related Party Transaction, Decommisioning Liablity [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Jun. 30, 2012
Receivable Attributable to Income Taxes [Member]
EFH Corp. [Member]
Oncor Holdings or Oncor [Member]
|
Dec. 31, 2011
Receivable Attributable to Income Taxes [Member]
EFH Corp. [Member]
Oncor Holdings or Oncor [Member]
|
Jun. 30, 2012
Related Party Transaction, Collateral Posted [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
Dec. 31, 2011
Related Party Transaction, Collateral Posted [Member]
Texas Competitive Electric Holdings Company LLC [Member]
Oncor [Member]
|
||||||||
Related Party Transaction [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selling, general and administrative expenses from transactions with related party | $ 9 | $ 9 | $ 19 | $ 18 | $ 9 | $ 9 | $ 16 | $ 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Debt instrument, issued face amount | 1,150 | 1,150 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stated interest rate (as a percent) | 11.75% | 11.75% | 11.50% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related party transaction, amounts of transaction | 238 | 251 | 465 | 490 | 26 | 17 | 7 | 1 | 9 | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Due to Affiliate | 149 | 149 | 138 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt, gross | 660 | 1,571 | 20,407 | [1],[2],[3] | 4,781 | 1,150 | 0 | 1,750 | 1,750 | 1,750 | 680 | 1,592 | 79 | 4,596 | 303 | |||||||||||||||||||||||||||||||||||||||||||
Due from Affiliates | 233 | 233 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable, related parties | 159 | 159 | 179 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes payable, related parties, current | 42 | 42 | 41 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repayments of related party debt | 10 | 9 | 20 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense, related party | 7 | 8 | 14 | 16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Delivery fee surcharge remitted to related party | 4 | 4 | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due to Affiliate, Noncurrent | 260 | 225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Due from Affiliate, Current | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related party tax expense, due from affiliates, current | 37 | 18 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party, Letter of Credit Posted as Collateral | 12 | 12 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement plan and other employee benefits | 1,201 | 1,235 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party, Event of Credit Rating Downgrade, Letter of Credit Required to be Posted to Secure Payment Obligations | $ 170 | $ 170 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Related Party, Event of Credit Rating Downgrade, Minimum Number of Rating Agencies Downgrade Below Investment Grade (in credit agencies downgrades) | 2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Commodity And Other Derivative Contractual Assets And Liabilities (Financial Statement Effects of Derivatives) (Details) (USD $)
In Millions, unless otherwise specified |
Jun. 30, 2012
|
Dec. 31, 2011
|
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative, Fair Value, Net | $ 147 | $ 935 |
Derivative instruments, Margin Deposits, Net Liabilities | 1,073 | 1,006 |
Current assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets And Liability, Fair Value, Gross Assets | 2,841 | 3,025 |
Noncurrent assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets And Liability, Fair Value, Gross Assets | 1,211 | 1,552 |
Current liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets And Liability, Fair Value, Gross Liability | (2,094) | (1,950) |
Noncurrent liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets And Liability, Fair Value, Gross Liability | (1,811) | (1,692) |
Commodity contracts [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Net | 3,875 | 4,434 |
Derivative liabilities, Fair Value, Net | (1,481) | (1,244) |
Commodity contracts [Member] | Current assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Asset | 2,681 | 2,883 |
Derivative liabilities, Fair Value, Gross Asset | 16 | 0 |
Commodity contracts [Member] | Noncurrent assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Asset | 1,210 | 1,552 |
Derivative liabilities, Fair Value, Gross Asset | 1 | 0 |
Commodity contracts [Member] | Current liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Liability | (7) | (1) |
Derivative liabilities, Fair Value, Gross Liability | (1,386) | (1,162) |
Commodity contracts [Member] | Noncurrent liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Liability | (9) | 0 |
Derivative liabilities, Fair Value, Gross Liability | (112) | (82) |
Interest rate swaps [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Net | 144 | 142 |
Derivative liabilities, Fair Value, Net | (2,391) | (2,397) |
Interest rate swaps [Member] | Current assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Asset | 144 | 142 |
Derivative liabilities, Fair Value, Gross Asset | 0 | 0 |
Interest rate swaps [Member] | Noncurrent assets [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Asset | 0 | 0 |
Derivative liabilities, Fair Value, Gross Asset | 0 | 0 |
Interest rate swaps [Member] | Current liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Liability | 0 | 0 |
Derivative liabilities, Fair Value, Gross Liability | (701) | (787) |
Interest rate swaps [Member] | Noncurrent liabilities [Member]
|
||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, Fair Value, Gross Liability | 0 | 0 |
Derivative liabilities, Fair Value, Gross Liability | $ (1,690) | $ (1,610) |
Short-Term Borrowings And Long-Term Debt (Debt Repayments) (Details) (USD $)
In Millions, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Extinguishment of Debt [Line Items] | ||
Repurchases of long-term debt | $ 24 | $ 981 |
Repayments of principal at scheduled maturity dates | 16 | |
Repayments of contractual payments under capitalized lease obligations | 8 | |
Repayments of short-term debt | 485 | 503 |
Texas Competitive Electric Holdings Company LLC [Member] | Revolving Credit Facility [Member]
|
||
Extinguishment of Debt [Line Items] | ||
Repayments of short-term debt | $ 485 |
Equity Method Investments
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments | EQUITY METHOD INVESTMENTS Oncor Holdings Investment in unconsolidated subsidiary totaled $5.794 billion and $5.720 billion at June 30, 2012 and December 31, 2011, respectively, and consists of our interest in Oncor Holdings (100% owned), which we account for under the equity method (see Note 3). Oncor Holdings owns approximately 80% of Oncor, which is engaged in regulated electricity transmission and distribution operations in Texas. Oncor provides services, principally electricity distribution, to TCEH's retail operations, and the related revenues represented 29% and 34% of Oncor Holdings' consolidated operating revenues in the six months ended June 30, 2012 and 2011, respectively. Distributions from Oncor Holdings — Oncor Holdings' distributions of earnings to us totaled $69 million and $32 million in the six months ended June 30, 2012 and 2011, respectively. Distributions are limited to Oncor's cumulative net income and may not be paid except to the extent Oncor maintains a required regulatory capital structure, as discussed below. At June 30, 2012, $140 million was eligible to be distributed to Oncor's members after taking into account these restrictions, of which approximately 80% relates to our ownership interest in Oncor. The boards of directors of each of Oncor and Oncor Holdings can withhold distributions to the extent the applicable board determines that it is necessary to retain such amounts to meet expected future requirements of Oncor and/or Oncor Holdings. For the period beginning October 11, 2007 and ending December 31, 2012, distributions (other than distributions of the proceeds of any equity issuance) paid by Oncor to its members are limited by a PUCT order to an amount not to exceed Oncor's cumulative net income determined in accordance with US GAAP, as adjusted. Adjustments consist of the removal of noncash impacts of purchase accounting and deducting two specific cash commitments. To date, the noncash impacts consist of removing the effect of an $860 million goodwill impairment charge in 2008 and the cumulative amount of net accretion of fair value adjustments. The two specific cash commitments are the $72 million ($46 million after tax) one-time refund to customers in September 2008 and the funds spent as part of the $100 million commitment for additional energy efficiency initiatives of which $86 million ($56 million after tax) has been spent through June 30, 2012. At June 30, 2012, $390 million was available for distribution under the cumulative net income restriction, of which approximately 80% relates to our ownership interest in Oncor. Oncor's distributions are further limited by its required regulatory capital structure to be at or below the assumed debt-to-equity ratio established periodically by the PUCT for ratemaking purposes, which is currently set at 60% debt to 40% equity. At June 30, 2012, Oncor's regulatory capitalization ratio was 59.0% debt and 41.0% equity. The PUCT has the authority to determine what types of debt and equity are included in a utility's debt-to-equity ratio. For purposes of this ratio, debt is calculated as long-term debt plus unamortized gains on reacquired debt less unamortized issuance expenses, premiums and losses on reacquired debt. The debt calculation excludes bonds issued by Oncor Electric Delivery Transition Bond Company, which were issued in 2003 and 2004 to recover specific generation-related regulatory asset stranded and other qualified costs. Equity is calculated as membership interests determined in accordance with US GAAP, excluding the effects of accounting for the Merger (which included recording the initial goodwill and fair value adjustments and the subsequent related impairments and amortization). At June 30, 2012, $140 million was available for distribution under the capital structure restriction, of which approximately 80% relates to our ownership interest in Oncor. In addition to distributions of earnings, we received income tax payments from Oncor and Oncor Holdings under a tax sharing agreement totaling $37 million and $18 million in the six months ended June 30, 2012 and 2011, respectively (see Note 12). Oncor Holdings Financial Statements— Condensed statements of consolidated income of Oncor Holdings and its subsidiaries in the three and six months ended June 30, 2012 and 2011 are presented below:
Assets and liabilities of Oncor Holdings at June 30, 2012 and December 31, 2011 are presented below:
|
Commodity And Other Derivative Contractual Assets And Liabilities (Derivative (Income Statement Presentation) and Derivative type (Income Statement Presentation of Loss Reclassified from Accumulated OCI into Income)) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | 3 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
|
Jun. 30, 2011
|
Jun. 30, 2012
Interest rate swaps [Member]
|
Dec. 31, 2011
Interest rate swaps [Member]
|
Jun. 30, 2012
Net gain (loss) from commodity hedging and trading activities [Member]
Commodity contracts [Member]
|
Jun. 30, 2011
Net gain (loss) from commodity hedging and trading activities [Member]
Commodity contracts [Member]
|
Jun. 30, 2012
Net gain (loss) from commodity hedging and trading activities [Member]
Commodity contracts [Member]
|
Jun. 30, 2011
Net gain (loss) from commodity hedging and trading activities [Member]
Commodity contracts [Member]
|
Jun. 30, 2012
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Interest expense and related charges [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Depreciation and amortization [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Depreciation and amortization [Member]
Interest rate swaps [Member]
|
Jun. 30, 2012
Cash Flow Hedging [Member]
Depreciation and amortization [Member]
Interest rate swaps [Member]
|
Jun. 30, 2011
Cash Flow Hedging [Member]
Depreciation and amortization [Member]
Interest rate swaps [Member]
|
|||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||||||||||||||||||||||||||
Net gain (loss) | $ (409) | $ (387) | $ (107) | $ (423) | $ (133) | [1] | $ 189 | [1] | $ 225 | [1] | $ 171 | [1] | $ (276) | [2] | $ (576) | [2] | $ (332) | [2] | $ (594) | [2] | ||||||||||||||||||
Income statement presentation of loss reclassified from accumulated OCI into income | (2) | (7) | (6) | (18) | (2) | (7) | (5) | (17) | 0 | 0 | (1) | (1) | ||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (46) | (50) | ||||||||||||||||||||||||||||||||||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | $ (7) | |||||||||||||||||||||||||||||||||||||
|