DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Mar. 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Natural gas derivative contracts outstanding

The Company was party to natural gas derivative contracts outstanding in the following quantities:

	Commodity and Other Energy Management Contracts (in DT)
Hedge designation	Gas Distribution	Retail Gas Marketing	Energy Marketing	Total
As of March 31, 2012
Cash flow	—	4,141,000	27,592,275	31,733,275
Not designated (a)	10,100,000	—	30,427,609	40,527,609
Total (a)	10,100,000	4,141,000	58,019,884	72,260,884
As of December 31, 2011
Cash flow	—	6,566,000	29,861,763	36,427,763
Not designated (b)	9,080,000	—	31,943,563	41,023,563
Total (b)	9,080,000	6,566,000	61,805,326	77,451,326

(a)  Includes an aggregate 8,694,000 DT related to basis swap contracts in Energy Marketing.

(b)  Includes an aggregate 9,626,000 DT related to basis swap contracts in Energy Marketing.

Fair value of energy-related derivatives and interest rate derivatives balance sheet location

The fair value of energy-related derivatives and interest rate derivatives was reflected in the consolidated balance sheet as follows:

	Fair Values of Derivative Instruments
	Asset Derivatives			Liability Derivatives
	Balance Sheet	Fair		Balance Sheet	Fair
Millions of dollars	Location (c)	Value		Location (c)	Value
As of March 31, 2012
Derivatives designated as hedging instruments
Interest rate contracts	Prepayments and other	—		Other current liabilities	$	5
				Other deferred credits and other liabilities	80
Commodity contracts	Prepayments and other	$	1	Prepayments and other	2
	Other current liabilities	1		Other current liabilities	7
				Other deferred credits and other liabilities	2
Total		$	2		$	96
Derivatives not designated as hedging instruments
Energy management contracts	Prepayments and other	$	19	Prepayments and other	$	3
	Other deferred debits and other assets	12		Other current liabilities	16
				Other deferred credits and other liabilities	11
Total		$	31		$	30

As of December 31, 2011
Derivatives designated as hedging instruments
Interest rate contracts	Prepayments and other	$	2	Other current liabilities	$	55
				Other deferred credits and other liabilities	103
Commodity contracts	Other current liabilities	1		Prepayments and other	1
				Other current liabilities	10
				Other deferred credits and other liabilities	3
Total		$	3		$	172
Derivatives not designated as hedging instruments
Energy management contracts	Prepayments and other	$	17	Prepayments and other	$	3
	Other deferred debits and other assets	10		Other current liabilities	13
				Other deferred credits and other liabilities	9
Total		$	27		$	25

(c) Asset derivatives represent unrealized gains to the Company, and liability derivatives represent unrealized losses.  In the Company’s condensed consolidated balance sheets, unrealized gain and loss positions on commodity contracts with the same counterparty are reported as either a net asset or liability, and for purposes of the above disclosure they are reported on a gross basis.

Derivatives in Cash Flow Hedging Relationships

Derivatives in Cash Flow Hedging Relationships

	Gain (Loss) Deferred		Gain (Loss) Reclassified from
Derivatives in Cash Flow	in Regulatory Accounts		Deferred Accounts into Income
Hedging Relationships	(Effective Portion)		(Effective Portion)
Millions of dollars			Location	Amount
Three Months Ended March 31, 2012
Interest rate contracts	$	30	Interest expense	$	(1	)
Three Months Ended March 31, 2011
Interest rate contracts	$	6	Interest expense	$	(1	)

	Gain (Loss)			Gain (Loss) Reclassified from
Derivatives in Cash Flow	Recognized in OCI,			Accumulated OCI into Income,
Hedging Relationships	net of tax			net of tax (Effective Portion)
Millions of dollars	(Effective Portion)			Location	Amount
Three Months Ended March 31, 2012
Interest rate contracts	$	—		Interest expense	$	(2	)
Commodity contracts	(4		)	Gas purchased for resale	(8		)
Total	$	(4	)		$	(10	)
Three Months Ended March 31, 2011
Interest rate contracts	$	3		Interest expense	$	(1	)
Commodity contracts	(1		)	Gas purchased for resale	(4		)
Total	$	2			$	(5	)

Derivatives not designated as Hedging Instruments Gain (Loss) Recognized in Income

Derivatives not designated as Hedging Instruments	Gain (Loss) Recognized in Income
Millions of dollars	Location	2012			2011
First Quarter
Commodity contracts	Gas purchased for resale	$	(1	)	$	(1	)