XML 1134 R58.htm IDEA: XBRL DOCUMENT v2.4.0.6
Derivatives and Hedging (Details) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2009
Commodity:      
Power (In MWHs) 609,000,000 652,000,000  
Coal (In Tons) 21,000,000 63,000,000  
Natural Gas (In MMBtus) 100,000,000 94,000,000  
Heating Oil and Gasoline (In Gallons) 6,000,000 6,000,000  
Interest Rate $ 226,000,000 $ 171,000,000  
Interest Rate and Foreign Currency 907,000,000 907,000,000  
Fair Value of Derivative Instruments      
Current Risk Management Assets 193,000,000 232,000,000  
Long-term Risk Management Assets 403,000,000 410,000,000  
Total Assets 596,000,000 642,000,000  
Current Risk Management Liabilities 150,000,000 129,000,000  
Long-term Risk Management Liabilities 195,000,000 141,000,000  
Total Liabilities 345,000,000 270,000,000  
Total MTM Derivative Contract Net Assets (Liabilities) 251,000,000 372,000,000  
Amount of Gain (Loss) Recognized on Risk Management Contracts      
Amount of Gain (Loss) Recognized on Risk Management Contracts 41,000,000 123,000,000 128,000,000
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges      
Beginning Balance in AOCI 11,000,000 (15,000,000) (22,000,000)
Changes in Fair Value Recognized in AOCI (33,000,000) 22,000,000 5,000,000
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Ending Balance in AOCI (23,000,000) 11,000,000 (15,000,000)
Impact of Cash Flow Hedges on the Balance Sheet      
Hedging Assets 20,000,000 [1] 38,000,000 [1]  
Hedging Liabilities 67,000,000 [1] 6,000,000 [1]  
AOCI Loss Net of Tax (23,000,000) 11,000,000 (15,000,000)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months (5,000,000) 1,000,000  
Collateral Triggering Events [Abstract]      
Liabilities for Derivative Contracts with Credit Downgrade Triggers 32,000,000 20,000,000  
Amount of Collateral AEP Subsidiaries Would Have Been Required to Post 39,000,000 45,000,000  
Amount Attributable to RTO and ISO Activities 38,000,000 44,000,000  
Liabilities for Contracts with Cross Default Provisions Prior to Contractural Netting Arrangements 515,000,000 401,000,000  
Posted Cash Collateral Related to Contracts with Cross Default Provisions 56,000,000 81,000,000  
Additional Settlement Liability if Cross Default Provision is Triggered 291,000,000 213,000,000  
Derivatives and Hedging (Textuals) [Abstract]      
Cash Collateral Received Netted Against Risk Management Assets 26,000,000 8,000,000  
Cash Collateral Paid Netted Against Risk Management Liabilities 133,000,000 109,000,000  
Maximum Length of Time for Hedging Exposure (in months) 30    
Loss on Fair Value Portion of Long Term Debt 6,000,000 6,000,000  
Risk Management Contracts [Member]
     
Fair Value of Derivative Instruments      
Total Assets 548,000,000 [2],[3] 551,000,000 [2],[4]  
Total Liabilities 278,000,000 [2],[3] 263,000,000 [2],[4]  
Fair Value Hedges [Member]
     
Fair Value of Derivative Instruments      
Total Assets   7,000,000  
Total Liabilities   1,000,000  
Other [Member]
     
Fair Value of Derivative Instruments      
Current Risk Management Assets (683,000,000) [5] (839,000,000) [5]  
Long-term Risk Management Assets (253,000,000) [5] (150,000,000) [5]  
Total Assets (936,000,000) [5] (989,000,000) [5]  
Current Risk Management Liabilities (746,000,000) [5] (881,000,000) [5]  
Long-term Risk Management Liabilities (325,000,000) [5] (255,000,000) [5]  
Total Liabilities (1,071,000,000) [5] (1,136,000,000) [5]  
Total MTM Derivative Contract Net Assets (Liabilities) 135,000,000 [5] 147,000,000 [5]  
Interest Rate Derivatives [Member] | Cash Flow Hedges [Member]
     
Derivatives and Hedging (Textuals) [Abstract]      
Gain on Hedging Instrument     6,000,000
Interest Rate Derivatives [Member] | Fair Value Hedges [Member]
     
Derivatives and Hedging (Textuals) [Abstract]      
Gain on Hedging Instrument 3,000,000 6,000,000  
Interest Rate and Foreign Currency [Member]
     
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges      
Beginning Balance in AOCI 4,000,000 (13,000,000) (29,000,000)
Changes in Fair Value Recognized in AOCI (28,000,000) 13,000,000 11,000,000
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Ending Balance in AOCI (20,000,000) 4,000,000 (13,000,000)
Impact of Cash Flow Hedges on the Balance Sheet      
Hedging Assets 0 [1] 25,000,000 [1]  
Hedging Liabilities 42,000,000 [1] 4,000,000 [1]  
AOCI Loss Net of Tax (20,000,000) 4,000,000 (13,000,000)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months (2,000,000) (2,000,000)  
Interest Rate and Foreign Currency [Member] | Hedging Contracts [Member]
     
Fair Value of Derivative Instruments      
Current Risk Management Assets 0 [6] 30,000,000 [6]  
Long-term Risk Management Assets 0 [6] 2,000,000 [6]  
Total Assets 0 [6] 32,000,000 [6]  
Current Risk Management Liabilities 20,000,000 [6] 2,000,000 [6]  
Long-term Risk Management Liabilities 22,000,000 [6] 3,000,000 [6]  
Total Liabilities 42,000,000 [6] 5,000,000 [6]  
Total MTM Derivative Contract Net Assets (Liabilities) (42,000,000) [6] 27,000,000 [6]  
Commodity [Member]
     
Total Accumulated Other Comprehensive Income (Loss) Activity for Cash Flow Hedges      
Beginning Balance in AOCI 7,000,000 (2,000,000) 7,000,000
Changes in Fair Value Recognized in AOCI (5,000,000) 9,000,000 (6,000,000)
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Ending Balance in AOCI (3,000,000) 7,000,000 (2,000,000)
Impact of Cash Flow Hedges on the Balance Sheet      
Hedging Assets 20,000,000 [1] 13,000,000 [1]  
Hedging Liabilities 25,000,000 [1] 2,000,000 [1]  
AOCI Loss Net of Tax (3,000,000) 7,000,000 (2,000,000)
Portion Expected to be Reclassified to Net Income During the Next Twelve Months (3,000,000) 3,000,000  
Commodity [Member] | Risk Management Contracts [Member]
     
Fair Value of Derivative Instruments      
Current Risk Management Assets 852,000,000 [6] 1,023,000,000 [6]  
Long-term Risk Management Assets 641,000,000 [6] 546,000,000 [6]  
Total Assets 1,493,000,000 [6] 1,569,000,000 [6]  
Current Risk Management Liabilities 847,000,000 [6] 995,000,000 [6]  
Long-term Risk Management Liabilities 483,000,000 [6] 387,000,000 [6]  
Total Liabilities 1,330,000,000 [6] 1,382,000,000 [6]  
Total MTM Derivative Contract Net Assets (Liabilities) 163,000,000 [6] 187,000,000 [6]  
Commodity [Member] | Hedging Contracts [Member]
     
Fair Value of Derivative Instruments      
Current Risk Management Assets 24,000,000 [6] 18,000,000 [6]  
Long-term Risk Management Assets 15,000,000 [6] 12,000,000 [6]  
Total Assets 39,000,000 [6] 30,000,000 [6]  
Current Risk Management Liabilities 29,000,000 [6] 13,000,000 [6]  
Long-term Risk Management Liabilities 15,000,000 [6] 6,000,000 [6]  
Total Liabilities 44,000,000 [6] 19,000,000 [6]  
Total MTM Derivative Contract Net Assets (Liabilities) (5,000,000) [6] 11,000,000 [6]  
Utility Operations Revenues [Member]
     
Amount of Gain (Loss) Recognized on Risk Management Contracts      
Amount of Gain (Loss) Recognized on Risk Management Contracts 46,000,000 85,000,000 144,000,000
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 3,000,000 0 (15,000,000)
Utility Operations Revenues [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0 0 0
Utility Operations Revenues [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 3,000,000 0 (15,000,000)
Other Revenues [Member]
     
Amount of Gain (Loss) Recognized on Risk Management Contracts      
Amount of Gain (Loss) Recognized on Risk Management Contracts 20,000,000 9,000,000 19,000,000
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (5,000,000) (7,000,000) (15,000,000)
Other Revenues [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0 0 0
Other Revenues [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (5,000,000) (7,000,000) (15,000,000)
Purchased Electricity for Resale [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (2,000,000) 4,000,000 29,000,000
Purchased Electricity for Resale [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0 0 0
Purchased Electricity for Resale [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (2,000,000) 4,000,000 29,000,000
Other Operation Expense [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (1,000,000)    
Other Operation Expense [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0    
Other Operation Expense [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (1,000,000)    
Maintenance Expense [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (1,000,000)    
Maintenance Expense [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0    
Maintenance Expense [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet (1,000,000)    
Interest Expense [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 4,000,000 4,000,000 5,000,000
Interest Expense [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 4,000,000 4,000,000 5,000,000
Interest Expense [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Amount of (Gain) or Loss Reclassified from AOCI to Income Statement/within Balance Sheet 0 0 0
Property, Plant and Equipment [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities (1,000,000)    
Property, Plant and Equipment [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 0    
Property, Plant and Equipment [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities (1,000,000)    
Regulatory Assets [Member]
     
Amount of Gain (Loss) Recognized on Risk Management Contracts      
Amount of Gain (Loss) Recognized on Risk Management Contracts (22,000,000) [7] (9,000,000) [7] (28,000,000) [7]
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 2,000,000 [7] 3,000,000 [7] 5,000,000 [7]
Regulatory Assets [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 0 [7] 0 [7] 0 [7]
Regulatory Assets [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 2,000,000 [7] 3,000,000 [7] 5,000,000 [7]
Regulatory Liabilities [Member]
     
Amount of Gain (Loss) Recognized on Risk Management Contracts      
Amount of Gain (Loss) Recognized on Risk Management Contracts (3,000,000) [7] 38,000,000 [7] (7,000,000) [7]
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 0 [7] 0 [7] (7,000,000) [7]
Regulatory Liabilities [Member] | Interest Rate and Foreign Currency [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities 0 [7] 0 [7] 0 [7]
Regulatory Liabilities [Member] | Commodity [Member]
     
Amount of (Gain) or Loss Reclassified from AOCI to Statement of Income/within Balance Sheet:      
Other Comprehensive Income Reclassification Adjustment on Derivatives Reclassed to Assets or Liabilities $ 0 [7] $ 0 [7] $ (7,000,000) [7]
[1] Hedging Assets and Hedging Liabilities are included in Risk Management Assets and Liabilities on our balance sheets.
[2] Amounts in "Other" column primarily represent counterparty netting of risk management and hedging contracts and associated cash collateral under the accounting guidance for "Derivatives and Hedging."
[3] The December 31, 2011 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures $3 million in 2012, $7 million in periods 2013-2015 and ($6) million in periods 2016-2018; Level 2 matures $21 million in 2012, $50 million in periods 2013-2015, $11 million in periods 2016-2017 and $8 million in periods 2018-2030; Level 3 matures ($19) million in 2012, $44 million in periods 2013-2015, $18 million in periods 2016-2017 and $26 million in periods 2018-2030. Risk management commodity contracts are substantially comprised of power contracts.
[4] The December 31, 2010 maturity of the net fair value of risk management contracts prior to cash collateral, assets/(liabilities), is as follows: Level 1 matures ($2) million in 2011, $2 million in periods 2012-2014 and ($5) million in periods 2015-2018; Level 2 matures $13 million in 2011, $66 million in periods 2012-2014, $12 million in periods 2015-2016 and $16 million in periods 2017-2028; Level 3 matures $18 million in 2011, $24 million in periods 2012-2014, $16 million in periods 2015-2016 and $27 million in periods 2017-2028. Risk management commodity contracts are substantially comprised of power contracts.
[5] Amounts include counterparty netting of risk management and hedging contracts and associated cash collateral in accordance with the accounting guidance for "Derivatives and Hedging." Amounts also include de-designated risk management contracts.
[6] Derivative instruments within these categories are reported gross. These instruments are subject to master netting agreements and are presented on the balance sheets on a net basis in accordance with the accounting guidance for "Derivatives and Hedging."
[7] Represents realized and unrealized gains and losses subject to regulatory accounting treatment recorded as either current or noncurrent on the balance sheets.