Risk Management Activities and Derivative Transactions (Tables)

12 Months Ended

Dec. 31, 2011

Risk Management Activities And Derivative Transactions Tables [Abstract]

The following table presents the fair value of derivative instruments at December 31:

Instrument / Balance sheet location				2011				2010
(in millions)				Asset	Liability			Asset	Liability
Derivatives designated as hedging instruments
Commodity cash flow derivatives
	Derivative liabilities, current				$	2			$	-
	Derivative liabilities, long-term					1				-
Interest rate derivatives
	Prepayments and other current assets		$	-			$	1
	Other assets and deferred debits			-				3
	Derivative liabilities, current					76				32
	Derivative liabilities, long-term					17				7
		Total derivatives designated as hedging instruments		-		96		4		39

Derivatives not designated as hedging instruments
Commodity derivatives^(a)
	Prepayments and other current assets			5				11
	Other assets and deferred debits			-				4
	Derivative liabilities, current					357				226
	Derivative liabilities, long-term					332				268
CVOs^(b)
	Other current liabilities					14				-
	Other liabilities and deferred credits					-				15
		Fair value of derivatives not designated as hedging instruments		5		703		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		5		706		15		513
		Total derivatives	$	5	$	802	$	19	$	552

^(a)	Substantially all of these contracts receive regulatory treatment.
^(b)	The Parent issued 98.6 million CVOs in connection with the acquisition of Florida Progress during 2000. In 2011, we purchased 80.1 million CVOs in a negotiated settlement agreement and subsequent tender offer. (See Note 16)
^(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		2009		2011		2010		2009		2011		2010		2009
Commodity cash flow derivatives^(c)		$	(2)	$	-	$	1	$	-	$	-	$	-	$	-	$	-	$	-
Interest rate derivatives^{(d) (e)}			(85)		(34)		15		(8)		(6)		(6)		(3)		3		(3)
	Total	$	(87)	$	(34)	$	16	$	(8)	$	(6)	$	(6)	$	(3)	$	3	$	(3)

^(a)	Effective portion.
^(b)	Related to ineffective portion and amount excluded from effectiveness testing.
^(c)	Amounts recorded on the Consolidated Statements of Income are classified in fuel used in electric generation.
^(d)	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.
^(e)	Amounts recorded on 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		2009			2011		2010		2009
Commodity derivatives^(a)		$	(297)	$	(324)	$	(659)		$	(502)	$	(398)	$	(387)

^(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		2009
Commodity derivatives^(a)		$	-	$	-	$	1
Fair value loss transition adjustment^(a)			1		1		2
CVOs^(a)			(59)		-		19
	Total	$	(58)	$	1	$	22

^(a)	Amounts recorded on the Consolidated Statements of Income are classified in other, net.

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details