The table below summarizes the balances outstanding under margin deposits, natural gas and power prepayments, and exposure under letters of credit and first priority liens for commodity procurement and risk management activities as of June 30, 2016 and December 31, 2015 (in millions):



	June 30, 2016		December 31, 2015
Margin deposits⁽¹⁾	$	134	$	89
Natural gas and power prepayments	35		34
Total margin deposits and natural gas and power prepayments with our counterparties⁽²⁾	$	169	$	123

Letters of credit issued	$	622	$	600
First priority liens under power and natural gas agreements⁽³⁾	231		382
First priority liens under interest rate hedging instruments	97		92
Total letters of credit and first priority liens with our counterparties	$	950	$	1,074

Margin deposits posted with us by our counterparties⁽¹⁾⁽⁴⁾	$	9	$	35
Letters of credit posted with us by our counterparties	23		24
Total margin deposits and letters of credit posted with us by our counterparties	$	32	$	59

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(1)

Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Condensed Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 6 for further discussion of our derivative instruments subject to master netting arrangements.


(2)	At June 30, 2016 and December 31, 2015, $159 million and $101 million, respectively, were included in margin deposits and other prepaid expense and $10 million and $22 million, respectively, were included in other assets on our Consolidated Condensed Balance Sheets.


(3)	Includes $203 million and $345 million related to first priority liens under power supply contracts associated with our retail hedging activities at June 30, 2016 and December 31, 2015, respectively.


(4)	Included in other current liabilities on our Consolidated Condensed Balance Sheets.