Derivative Instruments and Hedging (Tables)

3 Months Ended

Mar. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Unrealized Gains and Losses from Fair Value Adjustments

The unrealized gains and losses from fair value adjustments to these derivatives, which are recorded in regulatory assets or regulatory liabilities, for the three months ended March 31, 2016, were as follows:

Three Months Ended March 31,	2016
(Millions)
Regulatory Assets - Derivative liabilities	$	(3	)
Regulatory Liabilities - Derivative assets	$	(22	)

Schedule of Notional Volumes of Outstanding Derivative Positions

The net notional volumes of the outstanding derivative instruments associated with Networks activities as of March 31, 2016 and December 31, 2015 consisted of:

As of	March 31, 2016		December 31, 2015
(Millions)
Wholesale electricity purchase contracts (MWh)		7.0	6.7
Natural gas purchase contracts (Dth)		5.1	4.8
Fleet fuel purchase contracts (Gallons)		3.4	3.8

The net notional volumes of outstanding derivative instruments associated with Renewables and Gas activities as of March 31, 2016 and December 31, 2015 consisted of:

As of	March 31, 2016		December 31, 2015
(MWh/Dth in millions)
Wholesale electricity purchase contracts		3		3
Wholesale electricity sales contracts		6		6
Foreign exchange forward purchase contracts		1		4
Natural gas and other fuel purchase contracts		280		332
Financial power contracts		5		7
Basis swaps – purchases		41		67
Basis swaps – sales		48		80

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location and Amount

The offsetting of derivatives, location and amounts of derivatives designated as hedging instruments associated with Networks (including UIL) activities as of March 31, 2016 and December 31, 2015 consisted of:

As of March 31, 2016	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	11		$	16		$	(29	)	$	(89	)
Derivative liabilities		—			—			—			—
		11			16			(29	)		(89	)
Designated as hedging instruments
Derivative assets		6			4			6			4
Derivative liabilities		(6	)		(4	)		(35	)		(12	)
		—			—			(29	)		(8	)
Total derivatives before offset of cash collateral		11			16			(58	)		(97	)
Cash collateral receivable (payable)		—			—			28			7
Total derivatives as presented in the balance sheet	$	11		$	16		$	(30	)	$	(90	)

As of December 31, 2015	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	11		$	18		$	(28	)	$	(68	)
Derivative liabilities		—			—			—			—
		11			18			(28	)		(68	)
Designated as hedging instruments
Derivative assets		3			6			3			6
Derivative liabilities		(3	)		(6	)		(42	)		(7	)
		—			—			(39	)		(1	)
Total derivatives before offset of cash collateral		11			18			(67	)		(69	)
Cash collateral receivable (payable)		—			—			37			—
Total derivatives as presented in the balance sheet	$	11		$	18		$	(30	)	$	(69	)

The offsetting of derivatives, location and amounts of derivatives designated as hedging instruments associated with Renewables and Gas activities as of March 31, 2016 and December 31, 2015 consisted of:

As of March 31, 2016	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	165		$	102		$	84		$	3
Derivative liabilities		(80	)		(11	)		(139	)		(33	)
		85			91			(55	)		(30	)
Designated as hedging instruments
Derivative assets		24			6			—			—
Derivative liabilities		—			—			(18	)		(1	)
		24			6			(18	)		(1	)
Total derivatives before offset of cash collateral		109			97			(73	)		(31	)
Cash collateral receivable (payable)		(26	)		(36	)		22			6
Total derivatives as presented in the balance sheet	$	83		$	61		$	(51	)	$	(25	)

As of December 31, 2015	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	186		$	113		$	117		$	4
Derivative liabilities		(85	)		(14	)		(169	)		(29	)
		101			99			(52	)		(25	)
Designated as hedging instruments
Derivative assets		56			13			—			—
Derivative liabilities		—			—			(9	)		—
		56			13			(9	)		—
Total derivatives before offset of cash collateral		157			112			(61	)		(25	)
Cash collateral receivable (payable)		(80	)		(41	)		—			—
Total derivatives as presented in the balance sheet	$	77		$	71		$	(61	)	$	(25	)

Schedule of Derivative Instruments, Effect of Cash flow Hedging on Other Comprehensive Income and Income

The effect of derivatives in cash flow hedging relationships on Other Comprehensive Income (OCI) and income for the three months ended March 31, 2016 and 2015 consisted of:

Three Months Ended March 31,	(Loss) Recognized in OCI on Derivatives			Location of (Loss) Reclassified from Accumulated OCI into Income	(Loss) Reclassified from Accumulated OCI into Income
(Millions)	Effective Portion (a)			Effective Portion (a)
2016
Interest rate contracts	$	—		Interest expense	$	(2	)
Commodity contracts		—		Operating expenses		(1	)
Total	$	—			$	(3	)
2015
Interest rate contracts	$	—		Interest expense	$	(2	)
Commodity contracts		(1	)	Operating expenses		(1	)
Total	$	(1	)		$	(3	)

(a)Changes in OCI are reported on a pre-tax basis. The reclassified amounts of commodity contracts are included within “Purchase power, natural gas and fuel used” line item within operating expenses in the condensed consolidated statements of income.

The effect of derivatives in cash flow hedging relationships on OCI and income for the three months ended March 31, 2016 and 2015 consisted of:

Three Months Ended March 31, 2016	Gain Recognized in OCI on Derivatives		Location of Gain Reclassified from Accumulated OCI into Income	Gain Reclassified from Accumulated OCI into Income
(Millions)	Effective Portion (a)		Effective Portion (a)
Commodity contracts	$	3	Revenues	$	(46	)
Total	$	3		$	(46	)

(a)Changes in OCI are reported on a pre-tax basis.

Three Months Ended March 31, 2015	Gain Recognized in OCI on Derivatives		Location of Gain Reclassified from Accumulated OCI into Income	Gain Reclassified from Accumulated OCI into Income
(Millions)	Effective Portion (a)		Effective Portion (a)
Commodity contracts	$	1	Revenues	$	—
Total	$	1		$	—

(a) Changes in OCI are reported on a pre-tax basis.

Schedule of Fair Value, Net Derivative Contracts

The fair values of derivative contracts associated with Renewables and Gas activities as of March 31, 2016 and December 31, 2015 consisted of:

As of	March 31, 2016			December 31, 2015
(Millions)
Wholesale electricity purchase contracts	$	(17	)	$	(13	)
Wholesale electricity sales contracts		39			35
Foreign exchange forward purchase contracts		1			(1	)
Natural gas and other fuel purchase contracts		19			10
Financial power contracts		32			32
Basis swaps – purchases		39			1
Basis swaps – sales		(45	)		(2	)
Total	$	68		$	62

Effect of Trading and Non-trading Derivatives Associated with Renewables and Gas Activities

The effect of trading and non-trading derivatives, respectively, associated with Renewables and Gas activities for the three months ended March 31, 2016 and 2015 consisted of:

Three Months Ended March 31,	2016			2015
(Millions)
Wholesale electricity purchase contracts	$	—		$	7
Wholesale electricity sales contracts		(1	)		(5	)
Financial power contracts		1			(1	)
Financial and natural gas contracts		(30	)		(55	)
Total Loss	$	(30	)	$	(54	)
Three Months Ended March 31,	2016			2015
(Millions)
Wholesale electricity purchase contracts	$	(3	)	$	(1	)
Wholesale electricity sales contracts		6			(3	)
Financial power contracts		1			5
Financial and natural gas contracts		(9	)		6
Total (Loss) Gain	$	(5	)	$	7