|
Risk Management and Fair Values (Tables)
|
6 Months Ended |
|
Jun. 30, 2011
|
| Risk Management and Fair Values (Tables) [Abstract] |
|
| Fair values of derivative instruments |
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of
June 30, 2011 are as follows:
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| Instrument |
|
Balance Sheet Location |
|
Fair Value (a) |
|
Offset (a) |
|
Business |
|
Derivatives designated
as hedging
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Assets:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Prepayments and other (current portion)
|
|
$120 million
|
|
($19) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other deferred debits and other assets
(non-current portion)
|
|
$41 million
|
|
($30) million
|
|
Entergy Wholesale Commodities |
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|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Other current liabilities (current portion)
|
|
$24 million
|
|
($23) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other non-current liabilities (non-current portion)
|
|
$47 million
|
|
($30) million
|
|
Entergy Wholesale Commodities |
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|
|
|
|
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| Instrument |
|
Balance Sheet Location |
|
Fair Value (a) |
|
Offset (a) |
|
Business |
|
Derivatives not designated
as hedging
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Assets:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Prepayments and other (current portion)
|
|
$15 million
|
|
($11) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other deferred debits and other assets
(non-current portion)
|
|
$5 million
|
|
($5) million
|
|
Entergy Wholesale Commodities |
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Other current liabilities (current portion)
|
|
$7 million
|
|
($7) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other non-current liabilities (non-current portion)
|
|
$4 million
|
|
($4) million
|
|
Entergy Wholesale Commodities |
|
Natural gas swaps
|
|
Other current liabilities
|
|
$2 million
|
|
$-
|
|
Utility |
The fair values of Entergy’s derivative instruments in the consolidated balance sheet as
of December 31, 2010 are as follows:
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|
|
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| Instrument |
|
Balance Sheet Location |
|
Fair Value (a) |
|
Offset (a) |
|
Business |
|
Derivatives designated
as hedging
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Prepayments and other (current portion)
|
|
$160 million
|
|
($7) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other deferred debits and other assets
(non-current portion)
|
|
$82 million
|
|
($29) million
|
|
Entergy Wholesale Commodities |
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Other current liabilities (current portion)
|
|
$5 million
|
|
($5) million
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other non-current liabilities (non-current portion)
|
|
$47 million
|
|
($30) million
|
|
Entergy Wholesale Commodities |
| |
|
|
|
|
|
|
|
|
| Instrument |
|
Balance Sheet Location |
|
Fair Value (a) |
|
Offset (a) |
|
Business |
|
Derivatives not designated
as hedging
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Prepayments and other (current portion)
|
|
$2 million
|
|
$-
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other deferred debits and other assets
(non-current portion)
|
|
$14 million
|
|
($8) million
|
|
Entergy Wholesale Commodities |
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
Other current liabilities (current portion)
|
|
$2 million
|
|
($2 million)
|
|
Entergy Wholesale Commodities |
|
Electricity forwards, swaps and options
|
|
Other non-current liabilities (non-current portion)
|
|
$7 million
|
|
($7) million
|
|
Entergy Wholesale Commodities |
|
Natural gas swaps
|
|
Other current liabilities
|
|
$2 million
|
|
$-
|
|
Utility |
|
|
|
| (a) |
|
The balances of derivative assets and liabilities in these tables
are presented gross. Certain investments, including those not
designated as hedging instruments, are subject to master netting
agreements and are presented on the Entergy Consolidated Balance
Sheets on a net basis in accordance with accounting guidance for
Derivatives and Hedging. |
|
| Derivative instruments designated as cash flow hedges on consolidated statements of income |
The effect of Entergy’s derivative instruments designated as cash flow hedges on the
consolidated income statements for the three months ended June 30, 2011 and 2010 are as follows:
| |
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|
|
|
|
|
| |
|
|
|
|
|
Amount of gain |
| |
|
Amount of gain (loss) |
|
|
|
reclassified from |
| |
|
recognized in OCI |
|
|
|
accumulated OCI into |
| Instrument |
|
(effective portion) |
|
Income Statement location |
|
income (effective portion) |
|
2011
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
$19 million
|
|
Competitive businesses operating revenues
|
|
$32 million |
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
($71) million
|
|
Competitive businesses operating revenues
|
|
$67 million |
The effect of Entergy’s derivative instruments designated as cash flow hedges on the
consolidated income statements for the six months ended June 30, 2011 and 2010 are as follows:
| |
|
|
|
|
|
|
| |
|
|
|
|
|
Amount of gain |
| |
|
Amount of gain (loss) |
|
|
|
reclassified from |
| |
|
recognized in OCI |
|
|
|
accumulated OCI into |
| Instrument |
|
(effective portion) |
|
Income Statement location |
|
income (effective portion) |
|
2011
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
($54) million
|
|
Competitive businesses operating revenues
|
|
$61 million |
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
Electricity forwards, swaps and options
|
|
$197 million
|
|
Competitive businesses operating revenues
|
|
$103 million |
|
| Derivative instruments not designated as hedging instruments on the consolidated statements of income |
The effect of Entergy’s derivative instruments not designated as hedging instruments on the
consolidated income statements for the three months ended June 30, 2011 and 2010 is as follows:
| |
|
|
|
|
|
|
| |
|
Amount of gain (loss) |
|
Income Statement |
|
Amount of gain (loss) |
| Instrument |
|
recognized in OCI |
|
location |
|
recorded in income |
|
2011
|
|
|
|
|
|
|
|
Natural gas swaps
|
|
$-
|
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
|
($9) million |
|
Electricity forwards, swaps and options de-designated as hedged items
|
|
($4) million
|
|
Competitive business operating revenues
|
|
$4 million |
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
Natural gas swaps
|
|
$-
|
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
|
$22 million |
|
Electricity forwards, swaps and options de-designated as hedged items
|
|
$3 million
|
|
Competitive business operating revenues
|
|
$— |
The effect of Entergy’s derivative instruments not designated as hedging instruments on
the consolidated income statements for the six months ended June 30, 2011 and 2010 is as follows:
| |
|
|
|
|
|
|
| |
|
Amount of gain |
|
Income Statement |
|
Amount of gain (loss) |
| Instrument |
|
recognized in OCI |
|
location |
|
recorded in income |
|
2011
|
|
|
|
|
|
|
|
Natural gas swaps
|
|
$-
|
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
|
($12) million |
|
Electricity forwards, swaps and options de-designated as hedged items
|
|
$6 million
|
|
Competitive business operating revenues
|
|
$6 million |
|
|
|
|
|
|
|
|
|
2010
|
|
|
|
|
|
|
|
Natural gas swaps
|
|
$-
|
|
Fuel,
fuel-related expenses, and gas purchased for resale
|
|
($63) million |
|
Electricity forwards, swaps and options de-designated as hedged items
|
|
$3 million
|
|
Competitive business operating revenues
|
|
$— |
|
| Assets and liabilities at fair value on a recurring basis |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2011 |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| |
|
(In Millions) |
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary cash investments
|
|
$ |
435 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
435 |
|
|
Decommissioning trust funds (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
|
401 |
|
|
|
1,803 |
|
|
|
— |
|
|
|
2,204 |
|
|
Debt securities
|
|
|
581 |
|
|
|
990 |
|
|
|
— |
|
|
|
1,571 |
|
|
Power contracts
|
|
|
— |
|
|
|
— |
|
|
|
116 |
|
|
|
116 |
|
|
Securitization recovery trust
account
|
|
|
34 |
|
|
|
— |
|
|
|
— |
|
|
|
34 |
|
|
Storm reserve escrow account
|
|
|
332 |
|
|
|
— |
|
|
|
— |
|
|
|
332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,783 |
|
|
$ |
2,793 |
|
|
$ |
116 |
|
|
$ |
4,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gas hedge contracts
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2 |
|
|
Power contracts
|
|
|
— |
|
|
|
— |
|
|
|
18 |
|
|
|
18 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
18 |
|
|
$ |
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2010 |
|
Level 1 |
|
|
Level 2 |
|
|
Level 3 |
|
|
Total |
|
| |
|
(In Millions) |
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Temporary cash investments
|
|
$ |
1,218 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,218 |
|
|
Decommissioning trust funds (a):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity securities
|
|
|
387 |
|
|
|
1,689 |
|
|
|
— |
|
|
|
2,076 |
|
|
Debt securities
|
|
|
497 |
|
|
|
1,023 |
|
|
|
— |
|
|
|
1,520 |
|
|
Power contracts
|
|
|
— |
|
|
|
— |
|
|
|
214 |
|
|
|
214 |
|
|
Securitization recovery trust
account
|
|
|
43 |
|
|
|
— |
|
|
|
— |
|
|
|
43 |
|
|
Storm reserve escrow account
|
|
|
329 |
|
|
|
— |
|
|
|
— |
|
|
|
329 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,474 |
|
|
$ |
2,712 |
|
|
$ |
214 |
|
|
$ |
5,400 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Power contracts
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
17 |
|
|
$ |
17 |
|
|
Gas hedge contracts
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2 |
|
|
$ |
— |
|
|
$ |
17 |
|
|
$ |
19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of changes in the assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy |
The following table sets forth a reconciliation of changes in the net assets (liabilities) for
the fair value of derivatives classified as Level 3 in the fair value hierarchy for the three
months ended June 30, 2011 and 2010:
| |
|
|
|
|
|
|
|
|
| |
|
2011 |
|
|
2010 |
|
| |
|
(In Millions) |
|
|
Balance as of beginning of period
|
|
$ |
104 |
|
|
$ |
432 |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains/(losses) from price changes
|
|
|
9 |
|
|
|
(68 |
) |
|
Unrealized gains/(losses) on originations
|
|
|
17 |
|
|
|
— |
|
|
Realized losses on settlements
|
|
|
(32 |
) |
|
|
(67 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30,
|
|
$ |
98 |
|
|
$ |
297 |
|
|
|
|
|
|
|
|
|
The following table sets forth a reconciliation of changes in the net assets (liabilities) for
the fair value of derivatives classified as Level 3 in the fair value hierarchy for the six months
ended June 30, 2011 and 2010:
| |
|
|
|
|
|
|
|
|
| |
|
2011 |
|
|
2010 |
|
| |
|
(In Millions) |
|
|
Balance as of January 1,
|
|
$ |
197 |
|
|
$ |
200 |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gains/(losses) from price changes
|
|
|
(53 |
) |
|
|
193 |
|
|
Unrealized gains/(losses) on originations
|
|
|
15 |
|
|
|
7 |
|
|
Realized losses on settlements
|
|
|
(61 |
) |
|
|
(103 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of June 30,
|
|
$ |
98 |
|
|
$ |
297 |
|
|
|
|
|
|
|
|
|
|