Risk Management Activities and Derivative Transactions (Tables)

3 Months Ended

9 Months Ended

Sep. 30, 2011

Sep. 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 September 30, 2011 and December 31, 2010:
Instrument / Balance sheet location				September 30, 2011				December 31, 2010
(in millions)				Asset	Liability			Asset	Liability
Derivatives designated as hedging instruments
Commodity cash flow derivatives
	Derivative liabilities, current				$	1			$	-
Interest rate derivatives
	Prepayments and other current assets		$	-			$	1
	Other assets and deferred debits			-				3
	Derivative liabilities, current					70				32
	Derivative liabilities, long-term					16				7
		Total derivatives designated as hedging instruments		0		87		4		39
Derivatives not designated as hedging instruments
Commodity derivatives(a)
	Prepayments and other current assets			6				11
	Other assets and deferred debits			1				4
	Derivative liabilities, current					231				226
	Derivative liabilities, long-term					237				268
CVOs(b)
	Other current liabilities					74				-
	Other liabilities and deferred credits					-				15
		Fair value of derivatives not designated as hedging instruments		7		542		15		509
Fair value loss transition adjustment(c)
	Derivative liabilities, current					1				1
	Derivative liabilities, long-term					2				3
		Total derivatives not designated as hedging instruments		7		545		15		513
		Total derivatives	$	7	$	632	$	19	$	552
(a)	Substantially all of these contracts receive regulatory treatment.
(b)	As discussed in Note 10, 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
Instrument		Amount 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
Commodity cash flow derivatives(d)		$	(1)	$	0	$	0	$	0	$	0	$	0
Interest rate derivatives(c) (e)			(68)		(30)		(2)		(1)		(1)		-
	Total	$	(69)	$	(30)	$	(2)	$	(1)	$	(1)	$	-
(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 fuel used in electric generation.
(e)	Amounts recorded in the Consolidated Statements of Income are classified in interest charges.

Derivatives Designated as Hedging Instruments
Instrument		Amount 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
Commodity cash flow derivatives(d)		$	(1)	$	0	$	0	$	0	$	0	$	0
Interest rate derivatives(c) (e)			(82)		(80)		(5)		(4)		(3)		-
	Total	$	(83)	$	(80)	$	(5)	$	(4)	$	(3)	$	-
(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 fuel used in electric generation.
(e)	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
Instrument		Realized Gain or (Loss)(a)				Unrealized Gain or (Loss)(b)
(in millions)			2011		2010		2011		2010
Commodity derivatives		$	(91)	$	(114)	$	(157)	$	(181)
(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
Instrument		Realized Gain or (Loss)(a)				Unrealized Gain or (Loss)(b)
(in millions)			2011		2010		2011		2010
Commodity derivatives		$	(219)	$	(264)	$	(201)	$	(417)
(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

Instrument		Amount of Gain or (Loss) Recognized in Income on Derivatives
(in millions)			2011		2010
Fair value loss transition adjustment(a)		$	1	$	1
CVOs(a)			(63)		-
	Total	$	(62)	$	1
(a)	Amounts recorded in the Consolidated Statements of Income are classified in other, net.

Instrument		Amount of Gain or (Loss) Recognized in Income on Derivatives
(in millions)			2011		2010
Commodity derivatives(a)		$	1	$	-
Fair value loss transition adjustment(a)			1		1
CVOs(a)			(59)		-
	Total	$	(57)	$	1
(a)	Amounts recorded in the Consolidated Statements of Income are classified in other, net.