DERIVATIVES (Tables)

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Volumes Of Outstanding Derivative Contracts

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



		Contract Volume at
Underlying Product	Instruments	March 31, 2018	December 31, 2017
Natural Gas ⁽¹⁾ (MMBtus ⁽²⁾)	Forwards, Futures and Swaps	184,948,051	228,768,745
	Options	31,481,247	60,736,806
Electricity (Megawatt-hours)	Forwards, Futures and Swaps	2,602,376	2,872,013
	Congestion Revenue Rights ⁽³⁾	304,484,831	312,272,177

⁽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 Offsetting Assets

At March 31, 2018, the Utility’s outstanding derivative balances were as follows:



	Commodity Risk
(in millions)	Gross Derivative Balance			Netting			Cash Collateral		Total Derivative Balance
Current assets – other	$	30		$	(2	)	$	6	$	34
Other noncurrent assets – other	98			(1		)	—		97
Current liabilities – other	(52		)	2			19		(31		)
Noncurrent liabilities – other	(68		)	1			12		(55		)
Total commodity risk	$	8		$	—		$	37	$	45

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



	Commodity Risk
(in millions)	Gross Derivative Balance			Netting			Cash Collateral		Total Derivative Balance
Current assets – other	$	30		$	(3	)	$	10	$	37
Other noncurrent assets – other	103			(1		)	—		102
Current liabilities – other	(47		)	3			13		(31		)
Noncurrent liabilities – other	(66		)	1			8		(57		)
Total commodity risk	$	20		$	—		$	31	$	51

Schedule of Offsetting Liabilities

At March 31, 2018, the Utility’s outstanding derivative balances were as follows:



	Commodity Risk
(in millions)	Gross Derivative Balance			Netting			Cash Collateral		Total Derivative Balance
Current assets – other	$	30		$	(2	)	$	6	$	34
Other noncurrent assets – other	98			(1		)	—		97
Current liabilities – other	(52		)	2			19		(31		)
Noncurrent liabilities – other	(68		)	1			12		(55		)
Total commodity risk	$	8		$	—		$	37	$	45

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



	Commodity Risk
(in millions)	Gross Derivative Balance			Netting			Cash Collateral		Total Derivative Balance
Current assets – other	$	30		$	(3	)	$	10	$	37
Other noncurrent assets – other	103			(1		)	—		102
Current liabilities – other	(47		)	3			13		(31		)
Noncurrent liabilities – other	(66		)	1			8		(57		)
Total commodity risk	$	20		$	—		$	31	$	51

Gains And Losses On Derivative Instruments

Gains and losses associated with price risk management activities were recorded as follows:



	Commodity Risk
	Three Months Ended March 31,
(in millions)	2018			2017
Unrealized gain (loss) - regulatory assets and liabilities ⁽¹⁾	$	(12	)	$	(48	)
Realized loss - cost of electricity ⁽²⁾	(18		)	(5		)
Realized loss - cost of natural gas ⁽²⁾	(1		)	(1		)
Net commodity risk	$	(31	)	$	(54	)

⁽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
(in millions)	March 31, 2018			December 31, 2017
Derivatives in a liability position with credit risk-related contingencies that are not fully collateralized	$	(1	)	$	(1	)
Related derivatives in an asset position	—			—
Collateral posting in the normal course of business related to these derivatives	—			—
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