DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2011

DERIVATIVE FINANCIAL INSTRUMENTS

Natural gas derivative contracts outstanding

	Commodity and Other Energy Management Contracts (in DT)
Hedge designation	Gas Distribution	Retail Gas Marketing	Energy Marketing	Total
As of June 30, 2011
Cash flow	-	5,524,000	18,671,098	24,195,098
Not designated (a)	10,014,000	-	23,382,436	33,396,436
Total (a)	10,014,000	5,524,000	42,053,534	57,591,534
As of December 31, 2010
Cash flow	-	5,715,000	17,190,351	22,905,351
Not designated (b)	10,677,000	-	20,588,581	31,265,581
Total (b)	10,677,000	5,715,000	37,778,932	54,170,932

(a)  Includes an aggregate  8,019,000 DT related to basis swap contracts in Energy Marketing.

(b)  Includes an aggregate 6,485,536 DT related to basis swap contracts in Energy Marketing.

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

	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 June 30, 2011
Derivatives designated as hedging instruments
Interest rate contracts		Prepayments and other		$		2	Other current liabilities		$		14
		Other deferred debits		4			Other deferred credits		30
Commodity contracts		Other current liabilities		1			Other current liabilities		3
							Other deferred credits		2
Total				$		7			$		49
Derivatives not designated as hedging instruments
Commodity contracts		Prepayments and other		$		3
Energy management contracts		Prepayments and other				4	Other deferred debits		$		1
		Other deferred debits		3			Other current liabilities		4
		Other deferred credits		1			Other deferred credits		3
Total				$		11			$		8
As of December 31, 2010
Derivatives designated as hedging instruments
Interest rate contracts		Other current assets	$		1			Other current liabilities	$	57
		Other deferred debits			7			Other deferred credits		25
Commodity contracts		Other current liabilities	1					Other current liabilities	5
								Other deferred credits	2
Total			$		9				$	89
Derivatives not designated as hedging instruments
Commodity contracts		Prepayments and other	$			3
Energy management contracts		Prepayments and other	7					Prepayments and other	$			1
		Other deferred debits	2					Other current liabilities	6
								Other deferred credits	2
Total			$			12			$			9

(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.

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 June 30, 2011
Interest rate contracts	$	(15	)	Interest expense	$	-
Six Months Ended June 30,  2011
Interest rate contracts	$	(9	)	Interest expense	$	(1	)
Three Months Ended June 30, 2010
Interest rate contracts	$	(63)		Interest expense	$	-
Six Months Ended June 30,  2010
Interest rate contracts	$	(60)		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 June 30, 2011
Interest rate contracts	$	(14	)	Interest expense	$	(1	)
Commodity contracts		(1	)	Gas Purchased for resale		-
Total	$	(15	)		$	(1	)
Six Months Ended June 30, 2011
Interest rate contracts	$	(11	)	Interest expense	$	(2	)
Commodity contracts		(2	)	Gas Purchased for resale		(4	)
Total	$	(13	)		$	(6	)
Three Months Ended June 30, 2010
Interest rate contracts	$	(31)		Interest expense	$	(1)
Commodity contracts		2		Gas Purchased for resale		(3)
Total	$	(29)			$	(4)
Six Months Ended June 30, 2010
Interest rate contracts	$	(33)		Interest expense	$	(2)
Commodity contracts		(7)		Gas Purchased for resale		(7)
Total	$	(40)			$	(9)

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

	Gain (Loss) Recognized in Income
Derivatives not designated as
Hedging Instruments
Millions of dollars	Location	2011			2010
Second Quarter
Commodity contracts	Gas purchased for resale	$	-		$	(1	)
Year to Date
Commodity contracts	Gas purchased for resale	$	(1	)	$	(2	)