Derivative Instruments and Hedging (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location in Condensed Consolidated Balance Sheet and Amounts

The tables below present Renewables' derivative positions as of June 30, 2019 and December 31, 2018, respectively, including those subject to master netting agreements and the location of the net derivative position on our condensed consolidated balance sheets:

As of June 30, 2019	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	23		$	121		$	41		$	9
Derivative liabilities	(2		)	(8		)	(58		)	(32		)
	21			113			(17		)	(23		)
Designated as hedging instruments
Derivative assets	—			1			3			9
Derivative liabilities	—			(5		)	(10		)	(49		)
	—			(4		)	(7		)	(40		)
Total derivatives before offset of cash collateral	21			109			(24		)	(63		)
Cash collateral receivable (payable)	(10		)	(32		)	11			30
Total derivatives as presented in the balance sheet	$	11		$	77		$	(13	)	$	(33	)

As of December 31, 2018	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	19		$	96		$	29		$	17
Derivative liabilities	(5		)	(3		)	(48		)	(35		)
	14			93			(19		)	(18		)
Designated as hedging instruments
Derivative assets	2			1			2			4
Derivative liabilities	—			—			(7		)	(10		)
	2			1			(5		)	(6		)
Total derivatives before offset of cash collateral	16			94			(24		)	(24		)
Cash collateral receivable (payable)	(8		)	(34		)	9			17
Total derivatives as presented in the balance sheet	$	8		$	60		$	(15	)	$	(7	)

The tables below present Networks' derivative positions as of June 30, 2019 and December 31, 2018, respectively, including those subject to master netting agreements and the location of the net derivative positions on our condensed consolidated balance sheets:

As of June 30, 2019	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	8		$	4		$	8		$	2
Derivative liabilities	(8		)	(2		)	(24		)	(95		)
	—			2			(16		)	(93		)
Designated as hedging instruments
Derivative assets	1			—			—			—
Derivative liabilities	—			—			(1		)	—
	1			—			(1		)	—
Total derivatives before offset of cash collateral	1			2			(17		)	(93		)
Cash collateral receivable	—			—			6			4
Total derivatives as presented in the balance sheet	$	1		$	2		$	(11	)	$	(89	)

As of December 31, 2018	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	18		$	6		$	10		$	3
Derivative liabilities	(10		)	(3		)	(21		)	(93		)
	8			3			(11		)	(90		)
Designated as hedging instruments
Derivative assets	—			—			—			—
Derivative liabilities	—			—			(2		)	—
	—			—			(2		)	—
Total derivatives before offset of cash collateral	8			3			(13		)	(90		)
Cash collateral receivable	—			—			—			—
Total derivatives as presented in the balance sheet	$	8		$	3		$	(13	)	$	(90	)

Schedule of Notional Volumes of Outstanding Derivative Positions

The net notional volumes of outstanding derivative instruments associated with Renewables activities as of June 30, 2019 and December 31, 2018, respectively, consisted of:

	June 30,	December 31,
As of	2019	2018
(MWh/Dth in millions)
Wholesale electricity purchase contracts	5	5
Wholesale electricity sales contracts	12	6
Natural gas and other fuel purchase contracts	35	29
Financial power contracts	11	11
Basis swaps – purchases	46	42
Basis swaps – sales	1	4

The net notional volumes of the outstanding derivative instruments associated with Networks activities as of June 30, 2019 and December 31, 2018, respectively, consisted of:

	June 30,	December 31,
As of	2019	2018
(Millions)
Wholesale electricity purchase contracts (MWh)	4.5	4.9
Natural gas purchase contracts (Dth)	7.0	7.8
Fleet fuel purchase contracts (Gallons)	2.1	2.1

Summary of Unrealized Gains and Losses from Fair Value Adjustments

The amounts for electricity hedge contracts and natural gas hedge contracts recognized in regulatory liabilities and assets as of June 30, 2019 and December 31, 2018 and amounts reclassified from regulatory assets and liabilities into income for the three and six months ended June 30, 2019 and 2018 are as follows:

(Millions)	Loss or Gain Recognized in Regulatory Assets/Liabilities				Location of Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income	Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income
As of						Three Months Ended June 30,				Six Months Ended June 30,
June 30, 2019	Electricity		Natural Gas		2019	Electricity		Natural Gas		Electricity			Natural Gas
Regulatory assets	$	7	$	3	Purchased power, natural gas and fuel used	$	6	$	—	$	10		$	—
December 31, 2018					2018
Regulatory assets	$	—	$	—	Purchased power, natural gas and fuel used	$	1	$	—	$	(5	)	$	2
Regulatory liabilities	$	5	$	—

The unrealized gains and losses from fair value adjustments to these derivatives, which are recorded in regulatory assets, for the three and six months ended June 30, 2019 and 2018, respectively, were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
(Millions)
Derivative assets	$	(2	)	$	(2	)	$	(3	)	$	(4	)
Derivative liabilities	$	4		$	6		$	3		$	(3	)

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 and six months ended June 30, 2019 and 2018, respectively, consisted of:

Three Months Ended June 30,	(Loss) Gain Recognized in OCI on Derivatives (a)			Location of Loss Reclassified from Accumulated OCI into Income	Loss Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2019
Interest rate contracts	$	—		Interest expense	$	2	$	76
Commodity contracts	(1		)	Purchased power, natural gas and fuel used	—		259
Foreign currency exchange contracts	1				—
Total	$	—			$	2
2018
Interest rate contracts	$	—		Interest expense	$	2	$	70
Commodity contracts	—			Purchased power, natural gas and fuel used	—		279
Total	$	—			$	2

Six Months Ended June 30,	Gain Recognized in OCI on Derivatives (a)		Location of Loss Reclassified from Accumulated OCI into Income	Loss Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2019
Interest rate contracts	$	—	Interest expense	$	4	$	154
Commodity contracts	—		Purchased power, natural gas and fuel used	—		822
Foreign currency exchange contracts	1			—
Total	$	1		$	4
2018
Interest rate contracts	$	—	Interest expense	$	4	$	144
Commodity contracts	—		Purchased power, natural gas and fuel used	—		855
Total	$	—		$	4

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

The effect of derivatives in cash flow hedging relationships on accumulated OCI and income for the three and six months ended June 30, 2019 and 2018, respectively, consisted of:

Three Months Ended June 30,	Gain Recognized in OCI on Derivatives (a)		Location of (Gain) Reclassified from Accumulated OCI into Income	(Gain) Reclassified from Accumulated OCI into Income			Total amount per Income Statement
(Millions)
2019
Commodity contracts	$	5	Operating revenues	$	—		$	1,400
2018
Commodity contracts	$	—	Operating revenues	$	(1	)	$	1,402

Six Months Ended June 30,	(Loss) Recognized in OCI on Derivatives (a)			Location of (Gain) Reclassified from Accumulated OCI into Income	(Gain) Reclassified from Accumulated OCI into Income			Total amount per Income Statement
(Millions)
2019
Commodity contracts	$	(15	)	Operating revenues	$	—		$	3,242
2018
Commodity contracts	$	(1	)	Operating revenues	$	(20	)	$	3,267

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

The effect of derivatives in cash flow hedging relationships on accumulated OCI for the three and six months ended June 30, 2019 and 2018, respectively, consisted of:

Three Months Ended June 30,	Loss Recognized in OCI on Derivatives (a)			Location of Loss Reclassified from Accumulated OCI into Income	Loss Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2019
Interest rate contracts	$	(4	)	Interest expense	$	—	$	76
2018
Interest rate contracts	$	(4	)	Interest expense	$	—	$	70

Six Months Ended June 30,	Loss Recognized in OCI on Derivatives (a)			Location of Loss Reclassified from Accumulated OCI into Income	Loss Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2019
Interest rate contracts	$	(24	)	Interest expense	$	—	$	154
2018
Interest rate contracts	$	(4	)	Interest expense	$	—	$	144

(a) Changes in OCI are reported on a pre-tax basis. The amount in accumulated OCI is being reclassified into earnings over the underlying debt maturity period which ends in 2029.

Schedule of Fair Value, Net Derivative Contracts

The fair values of derivative contracts associated with Renewables activities as of June 30, 2019 and December 31, 2018, respectively, consisted of:

	June 30,			December 31,
As of	2019			2018
(Millions)
Wholesale electricity purchase contracts	$	28		$	11
Wholesale electricity sales contracts	(52		)	(12		)
Natural gas and other fuel purchase contracts	(3		)	(2		)
Financial power contracts	71			55
Basis swaps – purchases	(2		)	(6		)
Total	$	42		$	46

Effect of Derivatives Associated with Renewables and Gas Activities

The effects of trading and non-trading derivatives associated with Renewables activities for the three and six months ended June 30, 2019, consisted of:

	Three Months Ended								Six Months Ended
	June 30, 2019								June 30, 2019
	Trading			Non-trading			Total amount per income statement		Trading			Non-trading			Total amount per income statement
(Millions)
Operating Revenues
Wholesale electricity purchase contracts	$	(2	)	$	—				$	(1	)	$	—
Wholesale electricity sales contracts	2			4					2			(5		)
Financial power contracts	1			22					—			9
Financial and natural gas contracts	—			2					(1		)	—
Total gain included in operating revenues	$	1		$	28		$	1,400	$	—		$	4		$	3,242
Purchased power, natural gas and fuel used
Wholesale electricity purchase contracts	$	—		$	(3	)			$	—		$	17
Wholesale electricity sales contracts	—			—					—			—
Financial power contracts	—			(3		)			—			(2		)
Financial and natural gas contracts	—			(3		)			—			4
Total (loss) gain included in purchased power, natural gas and fuel used	$	—		$	(9	)	$	259	$	—		$	19		$	822
Total Gain	$	1		$	19				$	—		$	23

The effects of trading and non-trading derivatives associated with Renewables activities for the three and six months ended June 30, 2018, consisted of:

	Three Months Ended						Six Months Ended
	June 30, 2018						June 30, 2018
(Millions)	Trading			Non-trading			Trading			Non-trading
Wholesale electricity purchase contracts	$	5		$	3		$	6		$	4
Wholesale electricity sales contracts	(2		)	(7		)	(1		)	(7		)
Financial power contracts	(1		)	(2		)	(2		)	1
Financial and natural gas contracts	—			(1		)	3			4
Total Gain (Loss)	$	2		$	(7	)	$	6		$	2

Derivative Liabilities

The table below presents our interest rate swap derivative positions as of June 30, 2019 and December 31, 2018, respectively, including the location of the net derivative positions on our condensed consolidated balance sheets:

As of June 30, 2019	Current Liabilities
(Millions)
Designated as hedging instruments
Derivative liabilities	$	—
As of December 31, 2018
Designated as hedging instruments
Derivative liabilities	$	(16	)