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Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2014
Fair Value Disclosures [Abstract]  
Fair value of assets and liabilities that are measured at fair value on a recurring basis
The following table presents the fair value at December 31, 2014 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions):

 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs (a)
(Level 3)
 
Other
 
 
 
Balance at December 31, 2014
Assets
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity Contracts
$
—

 
$
21

 
$
33

 
$
(23
)
 
(b)
 
$
31

Nuclear decommissioning trust:
 

 
 

 
 

 
 

 
 
 
 

U.S. commingled equity funds
—

 
310

 
—

 
—

 
 
 
310

Fixed income securities:
 

 
 

 
 

 
 

 
 
 
 

U.S. Treasury
119

 
—

 
—

 
—

 
 
 
119

Cash and cash equivalent funds
—

 
11

 
—

 
(7
)
 
(c)
 
4

Corporate debt
—

 
109

 
—

 
—

 
 
 
109

Mortgage-backed securities
—

 
89

 
—

 
—

 
 
 
89

Municipality bonds
—

 
69

 
—

 
—

 
 
 
69

Other
—

 
14

 
—

 
—

 
 
 
14

Subtotal nuclear decommissioning trust
119

 
602

 
—

 
(7
)
 

 
714

Total
$
119

 
$
623

 
$
33

 
$
(30
)
 

 
$
745

Liabilities
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts
$
—

 
$
(95
)
 
$
(74
)
 
$
59

 
(b)
 
$
(110
)

(a)
Primarily consists of heat rate options and other long-dated electricity contracts.
(b)
Represents counterparty netting, margin and collateral.  See Note 16.
(c)
Represents nuclear decommissioning trust net pending securities sales and purchases.

 
The following table presents the fair value at December 31, 2013 of our assets and liabilities that are measured at fair value on a recurring basis (dollars in millions):
 
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs (a)
(Level 3)
 
Other
 
 
 
Balance at December 31, 2013
Assets
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity Contracts
$
—

 
$
9

 
$
41

 
$
(9
)
 
(b)
 
$
41

Nuclear decommissioning trust:
 

 
 

 
 

 
 

 
 
 
 

U.S. commingled equity funds
—

 
272

 
—

 
—

 
 
 
272

Fixed income securities:
 

 
 

 
 

 
 

 
 
 
 

U.S. Treasury
107

 
—

 
—

 
—

 
 
 
107

Cash and cash equivalent funds
—

 
11

 
—

 
(3
)
 
(c)
 
8

Corporate debt
—

 
88

 
—

 
—

 
 
 
88

Mortgage-backed securities
—

 
85

 
—

 
—

 
 
 
85

Municipality bonds
—

 
71

 
—

 
—

 
 
 
71

Other
—

 
11

 
—

 
—

 
 
 
11

Subtotal nuclear decommissioning trust
107

 
538

 
—

 
(3
)
 

 
642

Total
$
107

 
$
547

 
$
41

 
$
(12
)
 

 
$
683

Liabilities
 

 
 

 
 

 
 

 
 
 
 

Risk management activities — derivative instruments:
 

 
 

 
 

 
 

 
 
 
 

Commodity contracts
$
—

 
$
(33
)
 
$
(90
)
 
$
21

 
(b)
 
$
(102
)

(a)
Primarily consists of heat rate options and other long-dated electricity contracts.
(b)
Represents counterparty netting, margin and collateral.  See Note 16.
(c)
Represents nuclear decommissioning trust net pending securities sales and purchases.
Information regarding the entity's internally developed significant unobservable inputs used to value its level 3 instruments
The following tables provide information regarding our significant unobservable inputs used to value our risk management derivative Level 3 instruments at December 31, 2014 and December 31, 2013:
 
 
December 31, 2014
Fair Value (millions)
 
Valuation Technique
 
Significant Unobservable Input
 
Range
 
Weighted-Average
Commodity Contracts
Assets
 
Liabilities
 
Electricity:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
$
30

 
$
56

 
Discounted cash flows
 
Electricity forward price (per MWh)
 
$19.51 - $56.72
 
$
35.27

Option Contracts (b)
—

 
15

 
Option model
 
Electricity forward price (per MWh)
 
$32.14 - $66.09
 
$
45.83

 
 

 
 

 
 
 
Natural gas forward price (per MMbtu)
 
$3.18 - $3.29
 
$
3.25

 
 

 
 

 
 
 
Electricity price volatilities
 
23% - 63%
 
41
%
 
 

 
 

 
 
 
Natural gas price volatilities
 
23% - 41%
 
31
%
Natural Gas:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
3

 
3

 
Discounted cash flows
 
Natural gas forward price (per MMbtu)
 
$2.98 - $4.13
 
$
3.45

Total
$
33

 
$
74

 
 
 
 
 
 
 
 


(a)
Includes swaps and physical and financial contracts.
(b)
Electricity and natural gas price volatilities are estimated based on historical forward price movements due to lack of market quotes for implied volatilities.
 
 
December 31, 2013
Fair Value (millions)
 
Valuation Technique
 
Significant Unobservable Input
 
Range
 
Weighted-Average
Commodity Contracts
Assets
 
Liabilities
 
Electricity:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
$
40

 
$
66

 
Discounted cash flows
 
Electricity forward price (per MWh)
 
$24.89 - $65.04
 
$
41.09

Option Contracts (b)
—

 
19

 
Option model
 
Electricity forward price (per MWh)
 
$39.91 - $85.41
 
$
58.70

 
 

 
 

 
 
 
Natural gas forward price (per MMbtu)
 
$3.57 - $3.80
 
$
3.71

 
 

 
 

 
 
 
Electricity price volatilities
 
35% - 94%
 
59
%
 
 

 
 

 
 
 
Natural gas price volatilities
 
22% - 36%
 
27
%
Natural Gas:
 

 
 

 
 
 
 
 
 
 
 

Forward Contracts (a)
1

 
5

 
Discounted cash flows
 
Natural gas forward price (per MMbtu)
 
$3.47 - $4.31
 
$
3.87

Total
$
41

 
$
90

 
 
 
 
 
 
 
 


(a)
Includes swaps and physical and financial contracts.
(b)
Electricity and natural gas price volatilities are estimated based on historical forward price movements due to lack of market quotes for implied volatilities.
Changes in fair value for assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs
The following table shows the changes in fair value for our risk management activities’ assets and liabilities that are measured at fair value on a recurring basis using Level 3 inputs for the years ended December 31, 2014 and 2013 (dollars in millions):
 
 
 
Year Ended
December 31,
Commodity Contracts
 
2014
 
2013
Net derivative balance at beginning of period
 
$
(49
)
 
$
(48
)
Total net gains (losses) realized/unrealized:
 
 

 
 

Included in earnings
 
—

 
—

Included in OCI
 
—

 
—

Deferred as a regulatory asset or liability
 
—

 
(10
)
Settlements
 
12

 
10

Transfers into Level 3 from Level 2
 
(2
)
 
—

Transfers from Level 3 into Level 2
 
(2
)
 
(1
)
Net derivative balance at end of period
 
$
(41
)
 
$
(49
)
Net unrealized gains included in earnings related to instruments still held at end of period
 
$
—

 
$
—