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Risk Management Activities and Derivative Transactions (Tables)
 6 Months Ended
Jun. 30, 2011
Risk Management Activities And Derivative Transactions Tables Abstract  
Fair value of derivative instruments
The following table presents the fair value of derivative instruments at June 30, 2011 and December 31, 2010:
              
Instrument / Balance sheet location June 30, 2011  December 31, 2010
(in millions) Asset Liability  Asset Liability
Derivatives designated as hedging instruments
Interest rate derivatives           
 Prepayments and other current assets$ -    $1   
 Other assets and deferred debits 1     3   
 Derivative liabilities, current   $24    $32
 Derivative liabilities, long-term    11     7
  Total derivatives designated as hedging instruments 1  35  4  39
              
Derivatives not designated as hedging instruments
Commodity derivatives(a)           
 Prepayments and other current assets 15     11   
 Other assets and deferred debits 3     4   
 Derivative liabilities, current    189     226
 Derivative liabilities, long-term    223     268
CVOs(b)           
 Other liabilities and deferred credits    11     15
  Fair value of derivatives not designated as hedging instruments 18  423  15  509
Fair value loss transition adjustment(c)           
 Derivative liabilities, current    1     1
 Derivative liabilities, long-term    3     3
  Total derivatives not designated as hedging instruments 18  427  15  513
  Total derivatives$19 $462 $19 $552
              
(a) Substantially all of these contracts receive regulatory treatment.
(b) As discussed in Note 15 of the 2010 Form 10-K, the Parent issued 98.6 million CVOs in connection with the acquisition of Florida Progress during 2000.
(c) In 2003, PEC recorded a $38 million pre-tax ($23 million after-tax) fair value loss transition adjustment pursuant to the adoption of new accounting guidance for derivatives. The related liability is being amortized to earnings over the term of the related contracts.
Effect of derivative instruments on other comprehensive income - derivatives designated as hedging instruments
Derivatives Designated as Hedging Instruments
InstrumentAmount of Gain or (Loss) Recognized in OCI, Net of Tax on Derivatives(a) Amount of Gain or (Loss), Net of Tax Reclassified from Accumulated OCI into Income(a) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives(b)
(in millions) 2011  2010  2011  2010  2011  2010
Interest rate derivatives(c) (d)$(16) $(44) $(2) $(2) $ - $ -
                   
(a) Effective portion.
(b) Related to ineffective portion and amount excluded from effectiveness testing.
(c) Amounts in accumulated OCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.
(d) Amounts recorded in the Consolidated Statements of Income are classified in interest charges.

Derivatives Designated as Hedging Instruments
InstrumentAmount of Gain or (Loss) Recognized in OCI, Net of Tax on Derivatives(a) Amount of Gain or (Loss), Net of Tax Reclassified from Accumulated OCI into Income(a) Amount of Pre-tax Gain or (Loss) Recognized in Income on Derivatives(b)
(in millions) 2011  2010  2011  2010  2011  2010
Interest rate derivatives(c) (d)$(14) $(50) $(3) $(3) $(2) $ -
                   
(a) Effective portion.
(b) Related to ineffective portion and amount excluded from effectiveness testing.
(c) Amounts in accumulated OCI related to terminated hedges are reclassified to earnings as the interest expense is recorded. The effective portion of the hedges will be amortized to interest expense over the term of the related debt.
(d) Amounts recorded in the Consolidated Statements of Income are classified in interest charges.
Effect of derivative instruments on regulatory assets and liabilities - derivatives not designated as hedging instruments
Derivatives Not Designated as Hedging Instruments
InstrumentRealized Gain or (Loss)(a) Unrealized Gain or (Loss)(b)
(in millions) 2011  2010  2011  2010
Commodity derivatives$(76) $(91) $(68) $(2)
             
(a) After settlement of the derivatives and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b) Amounts are recorded in regulatory liabilities and assets, respectively, on the Consolidated Balance Sheets until derivatives are settled.

Derivatives Not Designated as Hedging Instruments
InstrumentRealized Gain or (Loss)(a) Unrealized Gain or (Loss)(b)
(in millions) 2011  2010  2011  2010
Commodity derivatives$(128) $(150) $(44) $(236)
             
(a) After settlement of the derivatives and the fuel is consumed, gains or losses are passed through the fuel cost-recovery clause.
(b) Amounts are recorded in regulatory liabilities and assets, respectively, on the Consolidated Balance Sheets until derivatives are settled.
Effect of derivative instruments on income - derivatives not designated as hedging instruments
InstrumentAmount of Gain or (Loss) Recognized in Income on Derivatives
(in millions) 2011  2010
Commodity derivatives(a)$1 $1
CVOs(a) 4   -
 Total$5 $1
       
(a) Amounts recorded in the Consolidated Statements of Income are classified in other, net.
       

InstrumentAmount of Gain or (Loss) Recognized in Income on Derivatives
(in millions) 2011  2010
Commodity derivatives(a)$1 $ -
CVOs(a) 4   -
 Total$5 $ -
       
(a) Amounts recorded in the Consolidated Statements of Income are classified in other, net.