Derivatives (Tables)

3 Months Ended

Mar. 31, 2017

Volumes Of Outstanding Derivative Contracts

The volumes of the Utility’s outstanding derivatives were as follows:

		Contract Volume at
		March 31,	December 31,
Underlying Product	Instruments	2017	2016
Natural Gas (1)(MMBtus (2))	Forwards, Futures and Swaps	271,615,354	323,301,331
	Options	67,861,423	96,602,785
Electricity (Megawatt-hours)	Forwards, Futures and Swaps	3,233,931	3,287,397
	Congestion Revenue Rights (3)	261,738,949	278,143,281

(1) Amounts shown are for the combined positions of the electric fuels and core gas supply portfolios.

(2) Million British Thermal Units.

(3) CRRs are financial instruments that enable the holders to manage variability in electric energy congestion charges due to transmission grid limitations.

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

At March 31,2017, the Utility’s outstanding derivative balances were as follows:

	Commodity Risk
	Gross Derivative						Total Derivative
(in millions)	Balance		Netting		Cash Collateral		Balance
Current assets – other	$	63	$	(16)	$	17	$	64
Other noncurrent assets – other		134		(5)		-		129
Current liabilities – other		(56)		16		2		(38)
Noncurrent liabilities – other		(97)		5		13		(79)
Total commodity risk	$	44	$	-	$	32	$	76

At December 31, 2016, the Utility’s outstanding derivative balances were as follows:

	Commodity Risk
	Gross Derivative						Total Derivative
(in millions)	Balance		Netting		Cash Collateral		Balance
Current assets – other	$	91	$	(10)	$	1	$	82
Other noncurrent assets – other		149		(9)		-		140
Current liabilities – other		(48)		10		-		(38)
Noncurrent liabilities – other		(101)		9		3		(89)
Total commodity risk	$	91	$	-	$	4	$	95

Gains And Losses On Derivative Instruments

	Commodity Risk
	Three Months Ended March 31
(in millions)	2017		2016
Net unrealized gain (loss) - regulatory assets and liabilities (1)	$	(48)	$	(7)
Realized loss - cost of electricity (2)		(5)		(29)
Realized loss - cost of natural gas (2)		(1)		(1)
Total commodity risk	$	(54)	$	(37)

(1) Unrealized gains and losses on commodity risk-related derivative instruments are recorded to regulatory liabilities or assets, respectively, rather than being recorded to the Condensed Consolidated Statements of Income.  These amounts exclude the impact of cash collateral postings.

(2) These amounts are fully passed through to customers in rates.  Accordingly, net income was not impacted by realized amounts on these instruments.

Additional Cash Collateral The Utility Would Be Required To Post If Its Credit Risk-Related Contingency Features Were Triggered

The additional cash collateral that the Utility would be required to post if the credit risk-related contingency features were triggered was as follows:

	Balance at
	March 31,		December 31,
(in millions)	2017		2016
Derivatives in a liability position with credit risk-related
contingencies that are not fully collateralized	$	(35)		$	(24)
Related derivatives in an asset position		3			19
Collateral posting in the normal course of business related to
these derivatives		31			4
Net position of derivative contracts/additional collateral
posting requirements(1)	$	(1)		$	(1)

(1) This calculation excludes the impact of closed but unpaid positions, as their settlement is not impacted by any of the Utility’s credit risk-related contingencies.