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Assets and Liabilities with Recurring Fair Value Measurements (Tables)
 3 Months Ended
Mar. 31, 2018
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract]  
Fair Value, Measurement Inputs, Disclosure
The following tables present our financial assets and liabilities that were accounted for at fair value on a recurring basis as of March 31, 2018 and December 31, 2017, by level within the fair value hierarchy:
 
Assets and Liabilities with Recurring Fair Value Measures as of March 31, 2018
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
 
(in millions)
Assets:
 
 
 
 
 
 
 
Cash equivalents(1)
$
131

 
$
—

 
$
—

 
$
131

Commodity instruments:
 
 
 
 
 
 
 
Commodity exchange traded derivatives contracts
629

 
—

 
—

 
629

Commodity forward contracts(2)
—

 
800

 
263

 
1,063

Interest rate hedging instruments
—

 
68

 
—

 
68

Effect of netting and allocation of collateral(3)(4)
(629
)
 
(678
)
 
(28
)
 
(1,335
)
Total assets
$
131

 
$
190

 
$
235

 
$
556

Liabilities:
 
 
 
 
 
 
 
Commodity instruments:
 
 
 
 
 
 
 
Commodity exchange traded derivatives contracts
$
733

 
$
—

 
$
—

 
$
733

Commodity forward contracts(2)
—

 
1,184

 
132

 
1,316

Interest rate hedging instruments
—

 
21

 
—

 
21

Effect of netting and allocation of collateral(3)(4)
(733
)
 
(795
)
 
(26
)
 
(1,554
)
Total liabilities
$
—

 
$
410

 
$
106

 
$
516

 
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2017
 
Level 1    
 
Level 2    
 
Level 3    
 
Total    
 
(in millions)
Assets:
 
 
 
 
 
 
 
Cash equivalents(1)
$
131

 
$
—

 
$
—

 
$
131

Commodity instruments:
 
 
 
 
 
 
 
Commodity exchange traded derivatives contracts
746

 
—

 
—

 
746

Commodity forward contracts(2)
—

 
327

 
265

 
592

Interest rate hedging instruments
—

 
29

 
—

 
29

Effect of netting and allocation of collateral(3)(4)
(746
)
 
(206
)
 
(23
)
 
(975
)
Total assets
$
131

 
$
150

 
$
242

 
$
523

Liabilities:
 
 
 
 
 
 
 
Commodity instruments:
 
 
 
 
 
 
 
Commodity exchange traded derivatives contracts
$
790

 
$
—

 
$
—

 
$
790

Commodity forward contracts(2)
—

 
461

 
68

 
529

Interest rate hedging instruments
—

 
34

 
—

 
34

Effect of netting and allocation of collateral(3)(4)
(790
)
 
(224
)
 
(23
)
 
(1,037
)
Total liabilities
$
—

 
$
271

 
$
45

 
$
316

___________
(1)
At March 31, 2018 and December 31, 2017, we had cash equivalents of $20 million and $21 million included in cash and cash equivalents and $111 million and $110 million included in restricted cash, respectively.
(2)
Includes OTC swaps and options and retail contracts.
(3)
We offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation; therefore, amounts recognized for the right to reclaim, or the obligation to return, cash collateral are presented net with the corresponding derivative instrument fair values. See Note 7 for further discussion of our derivative instruments subject to master netting arrangements.
(4)
Cash collateral posted with (received from) counterparties allocated to level 1, level 2 and level 3 derivative instruments totaled $104 million, $117 million and $(2) million, respectively, at March 31, 2018. Cash collateral posted with (received from) counterparties allocated to level 1, level 2 and level 3 derivative instruments totaled $44 million, $18 million and nil, respectively, at December 31, 2017.
Fair Value Inputs, Assets, Quantitative Information
The following table presents quantitative information for the unobservable inputs used in our most significant level 3 fair value measurements at March 31, 2018 and December 31, 2017:
 
 
Quantitative Information about Level 3 Fair Value Measurements
 
 
 
March 31, 2018
 
 
 
Fair Value, Net Asset
 
 
 
Significant Unobservable
 
 
 
 
 
 
 
(Liability)
 
Valuation Technique
 
Input
 
Range
 
 
(in millions)
 
 
 
 
 
 
 
 
 
Power Contracts
 
$
94

 
Discounted cash flow
 
Market price (per MWh)
 
$
2.58

—
$215.31
/MWh
Power Congestion Products
 
$
4

 
Discounted cash flow
 
Market price (per MWh)
 
$
(7.52
)
—
$9.40
/MWh
Natural Gas Contracts
 
$
11

 
Discounted cash flow
 
Market price (per MMBtu)
 
$
0.95

—
$10.05
/MMBtu
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
 
Fair Value, Net Asset
 
 
 
Significant Unobservable
 
 
 
 
 
 
 
(Liability)
 
Valuation Technique
 
Input
 
Range
 
 
(in millions)
 
 
 
 
 
 
 
 
 
Power Contracts
 
$
149

 
Discounted cash flow
 
Market price (per MWh)
 
$
4.13

—
$119.20
/MWh
Power Congestion Products
 
$
11

 
Discounted cash flow
 
Market price (per MWh)
 
$
(10.54
)
—
$9.13
/MWh
Natural Gas Contracts
 
$
34

 
Discounted cash flow
 
Market price (per MMBtu)
 
$
1.62

—
$13.67
/MMBtu
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]
The following table sets forth a reconciliation of changes in the fair value of our net derivative assets (liabilities) classified as level 3 in the fair value hierarchy for the periods indicated (in millions):
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Balance, beginning of period
 
$
197

 
$
416

Realized and mark-to-market gains (losses):
 
 
 
 
Included in net income (loss):
 
 
 
 
Included in operating revenues(1)
 
(57
)
 
113

Included in fuel and purchased energy expense(2)
 
(2
)
 
13

Change in collateral
 
(2
)
 
(9
)
Purchases and settlements:
 
 
 
 
Purchases
 
4

 
—

Settlements
 
(14
)
 
(26
)
Transfers in and/or out of level 3(3):
 
 
 
 
Transfers into level 3(4)
 
6

 
(7
)
Transfers out of level 3(5)
 
(3
)
 
(150
)
Balance, end of period
 
$
129

 
$
350

Change in unrealized gains (losses) relating to instruments still held at end of period
 
$
(59
)
 
$
126

___________
(1)
For power contracts and other power-related products, included on our Consolidated Condensed Statements of Operations.
(2)
For natural gas and power contracts, swaps and options, included on our Consolidated Condensed Statements of Operations.
(3)
We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 for each of the three months ended March 31, 2018 and 2017.
(4)
We had $6 million in gains and $(7) million in losses transferred out of level 2 into level 3 for the three months ended March 31, 2018 and 2017, respectively, due to changes in market liquidity in various power markets.
(5)
We had $3 million and $150 million in gains transferred out of level 3 into level 2 for the three months ended March 31, 2018 and 2017, respectively, due to changes in market liquidity in various power markets.