Debt (Tables)

12 Months Ended

Dec. 31, 2012

Debt Instrument [Line Items]

Schedule of Maturities of Long-term Debt [Table Text Block]

The scheduled maturities of our outstanding debt, excluding the value of interest rate swaps, as of December 31, 2012, are summarized as follows (in millions):

Year	Commitment
2013	$	1,155
2014	501
2015	300
2016	750
2017	900
Thereafter	12,263
Total	$	15,869

Schedule of Long-term Debt Instruments [Table Text Block]

	December 31,
	2012			2011
Kinder Morgan Energy Partners, L.P. borrowings:
Senior notes, 3.45% through 9.00%, due 2013 through 2042(a)	$	13,350		$	12,050
Commercial paper borrowings(b)	621			645
Subsidiary borrowings (as obligor):
Tennessee Gas Pipeline Company, L.L.C. - Notes, 7.00% through 8.375%, due 2016 through 2037(c)	1,790			—
International Marine Terminals - Plaquemines, LA Revenue Bonds due March 15, 2025(d)	40			40
Kinder Morgan Liquids Terminals LLC - N.J. Development Revenue Bonds due Jan. 15, 2018(e)	25			25
Kinder Morgan Operating L.P. “B” - Jackson-Union Cos. IL Revenue Bonds due April 1, 2024(f)	24			24
Other miscellaneous subsidiary debt	19			37
Less: Current portion of debt	(1,155		)	(1,638		)
Total long-term portion of debt	$	14,714		$	11,183

__________

(a) All of our fixed rate senior notes provide that we may redeem the notes at any time at a price equal to 100% of the principal amount of the notes plus accrued interest to the redemption date plus a make-whole premium.

(b) As of December 31, 2012, our commercial paper program provides for the issuance of up to $2.2 billion of commercial paper.  Our unsecured revolving credit facility supports our commercial paper program, and borrowings under our commercial paper program reduce the borrowings allowed under our credit facility. As of December 31, 2012 and 2011, the average interest rates on our outstanding commercial paper borrowings were 0.45% and 0.53%, respectively. The borrowings under our commercial paper program were used principally to finance the acquisitions and capital expansions we made during 2012 and 2011, and in the near term, we expect that our short-term liquidity and financing needs will be met primarily through borrowings made under our commercial paper program.

(c) Consists of six separate series of fixed-rate unsecured senior notes that we assumed as part of the drop-down transaction.

(d) We own a 66 2/3% interest in the International Marine Terminals (IMT) partnership.  The principal assets owned by IMT are dock and wharf facilities financed by the Plaquemines Port, Harbor and Terminal District (Louisiana) $40 million Adjustable Rate Annual Tender Port Facilities Revenue Refunding Bonds (International Marine Terminals Project) Series 1984A and 1984B.  As of December 31, 2012, the interest rate on these bonds was 1.08%. The bonds are backed by two letters of credit issued by Wells Fargo.  Our obligation, according to our ownership interests, is approximately$30 million for principal, plus interest and other fees.

(e) Economic Development Revenue Refunding Bonds issued by the New Jersey Economic Development Authority.  As of December 31, 2012, the interest rate on these bonds was 0.15%.  We have an outstanding letter of credit issued by Citibank in the amount of $25 million that backs-up the $25 million principal amount of the bonds.

(f) Tax exempt bonds issued by the Jackson-Union Counties Regional Port District, a political subdivision embracing the territories of Jackson County and Union County in the state of Illinois.  These variable rate demand bonds bear interest at a weekly floating market rate and are backed-up by a letter of credit issued by Wells Fargo.  The bond indenture also contains certain standby purchase agreement provisions which allow investors to put (sell) back their bonds at par plus accrued interest.  As of December 31, 2012, the interest rate on these bonds was 0.15%.  Our outstanding letter of credit issued by Wells Fargo totaled $24 million, which backs-up the principal amount of the bonds.

Schedule of Debt

	December 31,
	2012		2011
Current portion of debt(a)	$	1,155	$	1,638
Long-term portion of debt	14,714		11,183
Net carrying value of debt(b)	$	15,869	$	12,821

__________

(a) As of December 31, 2012 and 2011, includes commercial paper borrowings of $621 million and $645 million, respectively.

(b) Excludes debt fair value adjustments. As of December 31, 2012 and 2011, our “Debt fair value adjustments” increased our debt balances by $1,461 million and $1,055 million, respectively. In addition to normal adjustments associated with valuing our debt obligations equal to the present value of amounts to be paid determined at appropriate current interest rates, our debt fair value adjustments also include (i) amounts associated with the offsetting entry for hedged debt; and (ii) any unamortized portion of proceeds received from the early termination of interest rate swap agreements. For further information about our debt fair value adjustments, see Note 13 “Risk Management—Fair Value of Derivative Contracts.”

Schedule of Changes in Financing Obilgations

Changes in our outstanding debt, excluding debt fair value adjustments, during the year ended December 31, 2012 are summarized as follows (in millions):

Debt borrowings	Interest rate		Increase / (decrease)			Cash received / (paid)
Issuances and Assumptions
Senior notes due September 1, 2022(a)	3.95	%	$	1,000		$	998
Senior notes due February 15, 2023(b)	3.45	%	625			622
Senior notes due August 15, 2042(b)	5.00	%	625			621
Commercial paper	variable		6,453			6,453
Bridge loan credit facility due February 6, 2013(c)	variable		576			576
Tennessee Gas Pipeline Company, L.L.C. - senior notes due February 1, 2016(d)	8.00	%	250			—
Tennessee Gas Pipeline Company, L.L.C. - senior notes due April 4, 2017(d)	7.50	%	300			—
Tennessee Gas Pipeline Company, L.L.C. - senior notes due March 15, 2027(d)	7.00	%	300			—
Tennessee Gas Pipeline Company, L.L.C. - senior notes due October 15, 2028(d)	7.00	%	400			—
Tennessee Gas Pipeline Company, L.L.C. - senior notes due June 15, 2032(d)	8.375	%	240			—
Tennessee Gas Pipeline Company, L.L.C. - senior notes due April 1, 2037(d)	7.625	%	300			—
Total increases in debt			$	11,069		$	9,270
Repayments and other
Senior notes due March 15, 2012(a)	7.125	%	$	(450	)	$	(450	)
Senior notes due September 15, 2012(e)	5.85	%	(500		)	(500		)
Commercial paper	variable		(6,476		)	(6,476		)
Bridge loan credit facility due February 6, 2013(c)	variable		(576		)	(576		)
Kinder Morgan Texas Pipeline, L.P. - senior notes due January 2, 2014	5.23	%	(8		)	(8		)
Kinder Morgan Arrow Terminals L.P. - note due April 4, 2014	6.0	%	(1		)	(1		)
Kinder Morgan Operating L.P. “A” - BP note due March 31, 2012	5.40	%	(5		)	—
Kinder Morgan Canada Company - BP note due March 31, 2012	5.40	%	(5		)	—
Total decreases in debt			$	(8,021	)	$	(8,011	)

__________

(a) Represents senior notes issued in a public offering completed on March 14, 2012. We received proceeds from the issuance of the notes, after deducting the underwriting discount, of $994 million, and we used the proceeds both to repay our $450 million of 7.125% senior notes that matured on March 15, 2012 and to reduce the borrowings under our commercial paper program.

(b) Represents senior notes issued in a public offering completed on August 13, 2012. We received proceeds from the issuance of the notes, after deducting the underwriting discount, of $1,236 million, and we used the proceeds to pay a portion of the purchase price for the drop-down transaction.

(c) On August 6, 2012, we entered into a second credit agreement with us as borrower; Wells Fargo Bank, National Association, as administrative agent; Barclays Bank PLC, as syndication agent; and a syndicate of other lenders. This credit agreement provided for borrowings up to $2.0 billion pursuant to a short-term bridge loan credit facility with a term of six months. The covenants of this facility were substantially similar to the covenants of our existing senior unsecured revolving credit facility that is due July 1, 2016, and similar to our existing credit facility, borrowings under this bridge loan credit facility could be used to back our commercial paper issuances and for other general partnership purposes (including to pay a portion of the purchase price for the drop-down transaction). In August 2012, we made borrowings of $576 million under our short-term bridge loan credit facility to pay a portion of the purchase price for the drop-down transaction. We then repaid these credit facility borrowings in August 2012 with incremental borrowings under our commercial paper program, and we terminated our bridge loan credit facility on November 16, 2012. At this time, we also repaid the incremental commercial paper borrowings with the net proceeds we received from the disposal of our FTC Natural Gas Pipelines disposal group.

(d) Our subsidiary, Tennessee Gas Pipeline Company, L.L.C. is the obligor of six separate series of fixed-rate unsecured senior notes having a combined principal amount of $1,790 million. We assumed these debt borrowings as part of the drop-down transaction.

(e) On September 15, 2012, we paid $500 million to retire the principal amount of our 5.85% senior notes that matured on that date. We borrowed the necessary funds under our commercial paper program. Also, on March 15, 2011, we paid $700 million to retire the principal amount of our 6.75% senior notes that matured on that date.  We used both cash on hand and borrowings under our commercial paper program to repay the maturing senior notes.