Risk Management Activities and Derivative Transactions (Tables)

3 Months Ended

Mar. 31, 2012

Risk Management Activities And Derivative Transactions Tables [Abstract]

Fair value of derivative instruments

The following table presents the fair value of derivative instruments at March 31, 2012 and December 31, 2011:
Instrument / Balance sheet location				March 31, 2012				December 31, 2011
(in millions)			Asset		Liability		Asset		Liability
Derivatives designated as hedging instruments
Commodity cash flow derivatives
	Derivative liabilities, current				$	2			$	2
	Derivative liabilities, long-term					1				1
Interest rate derivatives
	Derivative liabilities, current					42				76
	Derivative liabilities, long-term					7				17
		Total derivatives designated as hedging instruments				52				96
Derivatives not designated as hedging instruments
Commodity derivatives(a)
	Prepayments and other current assets		$	7			$	5
	Other assets and deferred debits			1				-
	Derivative liabilities, current					439				357
	Derivative liabilities, long-term					354				332
CVOs(b)
	Other current liabilities					-				14
	Other liabilities and deferred credits					3				-
		Fair value of derivatives not designated as hedging instruments		8		796		5		703
Fair value loss transition adjustment
	Derivative liabilities, current					1				1
	Derivative liabilities, long-term					2				2
		Total derivatives not designated as hedging instruments		8		799		5		706
		Total derivatives	$	8	$	851	$	5	$	802
(a)	Substantially all of these contracts receive regulatory treatment.
(b)	As discussed in Note 16 in the 2011 Form 10-K, the Parent issued 98.6 million CVOs in connection with the acquisition of Florida Progress during 2000. Through a negotiated settlement agreement and subsequent tender offer between October 2011 and February 2012, we repurchased and continue to hold 83.4 million CVOs.

Effect of derivative instruments on other comprehensive income - derivatives designated as hedging instruments

The following tables present the effect of derivative instruments on the Consolidated Statements of Comprehensive Income for the three months ended March 31, 2012 and 2011:
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)			2012		2011		2012		2011		2012		2011
Interest rate derivatives(c) (d)		$	2	$	2	$	(3)	$	(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 on the Consolidated Statements of Comprehensive 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)			2012		2011		2012		2011
Commodity derivatives		$	(105)	$	(52)	$	(206)	$	23
(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)			2012		2011
CVOs(a)		$	8	$	-
(a)	Amounts recorded in the Consolidated Statements of Comprehensive Income are classified in other, net.