Risk Management and Fair Values (Tables)

9 Months Ended

Sep. 30, 2011

Risk Management and Fair Values [Abstract]

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of September 30, 2011 are as follows:


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)	$93 million	($11) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$23 million	($23) million	Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$11 million	($11) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$49 million	($25) 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)	$21 million	($8) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other deferred debits and other assets (non-current portion)	$3 million	($3) million	Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options	Other current liabilities (current portion)	$8 million	($8) million	Entergy Wholesale Commodities
Electricity forwards, swaps and options	Other non-current liabilities (non-current portion)	$2 million	($1) million	Entergy Wholesale Commodities
Natural gas swaps	Other current liabilities	$16 million	$ —	Utility

The fair values of Entergy’s derivative instruments in the consolidated balance sheet as of December 31, 2010 are as follows:


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 September 30, 2011 and 2010 are as follows:


			Amount of gain
	Amount of gain		reclassified from
	recognized in OCI		accumulated OCI into
Instrument	(effective portion)	Income Statement location	income (effective portion)
2011
Electricity forwards, swaps and options	$40 million	Competitive businesses operating revenues	$48 million

2010
Electricity forwards, swaps and options	$118 million	Competitive businesses operating revenues	$43 million

The effect of Entergy’s derivative instruments designated as cash flow hedges on the consolidated income statements for the nine months ended September 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	($14) million	Competitive businesses operating revenues	$109 million

2010
Electricity forwards, swaps and options	$315 million	Competitive businesses operating revenues	$146 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 September 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	($19) million
Electricity forwards, swaps and options de-designated as hedged items	($2) million	Competitive business operating revenues	$2 million

2010
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($28) million
Electricity forwards, swaps and options de-designated as hedged items	$12 million	Competitive business operating revenues	$—

The effect of Entergy’s derivative instruments not designated as hedging instruments on the consolidated income statements for the nine months ended September 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	($31) million
Electricity forwards, swaps and options de-designated as hedged items	$4 million	Competitive business operating revenues	$8 million

2010
Natural gas swaps	$ —	Fuel, fuel-related expenses, and gas purchased for resale	($91) million
Electricity forwards, swaps and options de-designated as hedged items	$15 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	$	851	$	—	$	—	$	851
Decommissioning trust funds (a):
Equity securities		371		1,559		—		1,930
Debt securities		656		980		—		1,636
Power contracts		—		—		95		95
Securitization recovery trust account		43		—		—		43
Storm reserve escrow account		334		—		—		334

	$	2,255	$	2,539	$	95	$	4,889


Liabilities:
Gas hedge contracts	$	16	$	—	$	—	$	16
Power contracts		—		—		25		25

	$	16	$	—	$	25	$	41


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 net 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 September 30, 2011 and 2010:


	2011			2010
	(In Millions)
Balance as of beginning of period	$	98		$	297

Unrealized gains from price changes		3			124
Unrealized gains on originations		17			6
Realized losses on settlements		(48	)		(43	)


Balance as of September 30,	$	70		$	384


	2011			2010
	(In Millions)
Balance as of January 1,	$	197		$	200

Unrealized gains/(losses) from price changes		(33	)		316
Unrealized gains on originations		15			14
Realized losses on settlements		(109	)		(146	)


Balance as of September 30,	$	70		$	384

- 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.

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