


	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2014
Operating Revenues	$	—		$	972		$	42		$	(28	)	$	986
Operating Expenses	5			903			40			(29		)	919
Operating Income (Loss)	(5		)	69			2			1			67
Equity Earnings (Losses) of Subsidiaries	57			(3		)	3			(54		)	3
Other Income	8			47			—			(9		)	46
Other Deductions	—			(8		)	—			(1		)	(9		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(27		)	(6		)	(5		)	9			(29		)
Income Tax Benefit (Expense)	21			(43		)	—			—			(22		)
Net Income (Loss)	$	54		$	54		$	—		$	(54	)	$	54
Comprehensive Income (Loss)	$	67		$	66		$	—		$	(66	)	$	67
Six Months Ended June 30, 2014
Operating Revenues	$	—		$	2,656		$	82		$	(52	)	$	2,686
Operating Expenses	9			2,307			74			(53		)	2,337
Operating Income (Loss)	(9		)	349			8			1			349
Equity Earnings (Losses) of Subsidiaries	234			(3		)	7			(231		)	7
Other Income	16			80			—			(17		)	79
Other Deductions	(4		)	(14		)	—			(1		)	(19		)
Other-Than-Temporary Impairments	—			(4		)	—			—			(4		)
Interest Expense	(55		)	(13		)	(10		)	17			(61		)
Income Tax Benefit (Expense)	36			(168		)	(1		)	—			(133		)
Net Income (Loss)	$	218		$	227		$	4		$	(231	)	$	218
Comprehensive Income (Loss)	$	237		$	242		$	4		$	(246	)	$	237
Six Months Ended June 30, 2014
Net Cash Provided By (Used In) Operating Activities	$	292		$	950		$	32		$	(460	)	$	814
Net Cash Provided By (Used In) Investing Activities	$	138		$	(415	)	$	(16	)	$	57		$	(236	)
Net Cash Provided By (Used In) Financing Activities	$	(430	)	$	(534	)	$	(17	)	$	403		$	(578	)




	Power			Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments			Consolidated
	Millions
Three Months Ended June 30, 2013
Operating Revenues	$	—		$	1,183		$	37		$	(27	)	$	1,193
Operating Expenses	2			835			32			(27		)	842
Operating Income (Loss)	(2		)	348			5			—			351
Equity Earnings (Losses) of Subsidiaries	219			(2		)	5			(217		)	5
Other Income	10			35			—			(10		)	35
Other Deductions	(2		)	(9		)	—			1			(10		)
Other-Than-Temporary Impairments	—			(2		)	—			—			(2		)
Interest Expense	(26		)	(6		)	(6		)	9			(29		)
Income Tax Benefit (Expense)	11			(151		)	—			—			(140		)
Net Income (Loss)	$	210		$	213		$	4		$	(217	)	$	210
Comprehensive Income (Loss)	$	203		$	198		$	4		$	(202	)	$	203
Six Months Ended June 30, 2013
Operating Revenues	$	—		$	2,624		$	74		$	(54	)	$	2,644
Operating Expenses	4			2,035			65			(53		)	2,051
Operating Income (Loss)	(4		)	589			9			(1		)	593
Equity Earnings (Losses) of Subsidiaries	372			(2		)	8			(370		)	8
Other Income	19			83			—			(20		)	82
Other Deductions	(10		)	(29		)	—			1			(38		)
Other-Than-Temporary Impairments	—			(4		)	—			—			(4		)
Interest Expense	(53		)	(16		)	(10		)	20			(59		)
Income Tax Benefit (Expense)	27			(259		)	1			—			(231		)
Net Income (Loss)	$	351		$	362		$	8		$	(370	)	$	351
Comprehensive Income (Loss)	$	376		$	370		$	8		$	(378	)	$	376
Six Months Ended June 30, 2013
Net Cash Provided By (Used In) Operating Activities	$	386		$	884		$	15		$	(419	)	$	866
Net Cash Provided By (Used In) Investing Activities	$	138		$	(411	)	$	(26	)	$	218		$	(81	)
Net Cash Provided By (Used In) Financing Activities	$	(524	)	$	(476	)	$	11		$	201		$	(788	)




	Power		Guarantor Subsidiaries		Other Subsidiaries		Consolidating Adjustments			Consolidated
	Millions
As of June 30, 2014
Current Assets	$	4,186	$	1,923	$	109	$	(4,039	)	$	2,179
Property, Plant and Equipment, net	79		6,065		1,161		—			7,305
Investment in Subsidiaries	4,426		121		—		(4,547		)	—
Noncurrent Assets	322		1,923		136		(134		)	2,247
Total Assets	$	9,013	$	10,032	$	1,406	$	(8,720	)	$	11,731
Current Liabilities	$	647	$	3,468	$	737	$	(4,039	)	$	813
Noncurrent Liabilities	348		2,340		346		(134		)	2,900
Long-Term Debt	2,498		—		—		—			2,498
Member's Equity	5,520		4,224		323		(4,547		)	5,520
Total Liabilities and Member's Equity	$	9,013	$	10,032	$	1,406	$	(8,720	)	$	11,731
As of December 31, 2013
Current Assets	$	4,413	$	2,076	$	102	$	(4,115	)	$	2,476
Property, Plant and Equipment, net	81		6,108		1,178		—			7,367
Investment in Subsidiaries	4,645		124		—		(4,769		)	—
Noncurrent Assets	222		1,847		138		(48		)	2,159
Total Assets	$	9,361	$	10,155	$	1,418	$	(8,932	)	$	12,002
Current Liabilities	$	697	$	3,474	$	745	$	(4,116	)	$	800
Noncurrent Liabilities	309		2,247		338		(47		)	2,847
Long-Term Debt	2,497		—		—		—			2,497
Member's Equity	5,858		4,434		335		(4,769		)	5,858
Total Liabilities and Member's Equity	$	9,361	$	10,155	$	1,418	$	(8,932	)	$	12,002

Immaterial Correction of Prior Financial Information

The financial information included in the tables above has been corrected from the disclosure provided in Power's Form 10-Q filed on July 30, 2013 and Form 10-K filed on February 26, 2014 to conform to the requirements of Section 210.3-10 of SEC Regulation S-X.

In the prior disclosure, Operating Revenues and Operating Expenses among the Guarantor Subsidiaries were eliminated in the Consolidating Adjustments column. The revised presentation eliminates this activity in the Guarantor Subsidiaries column and removes such activity from the Consolidating Adjustments column. This decreased both Operating Revenues and Operating Expenses in both the Guarantor Subsidiaries and Consolidating Adjustments columns by $352 million and $714 million for the three months and six months ended June 30, 2013, respectively. This correction had no impact on Power’s consolidated Operating Revenues and Operating Expenses.

In addition, the revised information was corrected to present the intercompany balances on a net basis when the right of offset exists in either Current Assets or Current Liabilities. This resulted in the following increases (decreases) to certain categories of the condensed consolidated balance sheet as of December 31, 2013 as follows:




	Power		Guarantor Subsidiaries			Other Subsidiaries			Consolidating Adjustments		Consolidated
	Increase (Decrease)
	Millions
As of December 31, 2013
Current Assets	$	253	$	(6,840	)	$	(842	)	$	7,429	$	—
Investment in Subsidiaries	—		(605		)	—			605		—
Total Assets	$	253	$	(7,445	)	$	(842	)	$	8,034	$	—
Current Liabilities	$	253	$	(7,445	)	$	(237	)	$	7,429	$	—
Member's Equity	—		—			(605		)	605		—
Total Liabilities and Member's Equity	$	253	$	(7,445	)	$	(842	)	$	8,034	$	—

These corrections to the presentation had no impact to Power’s condensed consolidated financial statements. These corrections to the presentation had no impact on any liquidity measures of Power. They did not alter the net increase or net decrease in cash for Power, the Guarantor Subsidiaries, or the Other Subsidiaries. There was no impact to Power's loan covenants as a result of these corrections. Management believes these corrections are immaterial.