Commission File Number | Exact name of registrants as specified in their charters, addresses of principal executive offices, telephone numbers and states of incorporation | I.R.S. Employer Identification No. |
333-68630 | EDISON MISSION ENERGY | 95-4031807 |
3 MacArthur Place, Suite 100 Santa Ana, California 92707 714-513-8000 State of Incorporation: Delaware | ||
333-59348 | MIDWEST GENERATION, LLC | 33-0868558 |
235 Remington Boulevard, Suite A Bolingbrook, Illinois 60440 630-771-7800 State of Incorporation: Delaware |
Registrant | Title of each Class | Name of each exchange on which registered | ||
Edison Mission Energy | None | not applicable | ||
Midwest Generation, LLC | None | not applicable |
Registrant | Title of each Class | Name of each exchange on which registered | ||
Edison Mission Energy | Common Stock, par value $0.01 per share | not applicable | ||
Midwest Generation, LLC | None | not applicable |
Edison Mission Energy | Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o | |||
Midwest Generation, LLC | Large accelerated filer o | Accelerated filer o | Non-accelerated filer x | Smaller reporting company o |
Edison Mission Energy | ||
Midwest Generation, LLC | ||
2010 Tax Relief Act | Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 |
Ambit | American Bituminous Power Partners, L.P. or its waste coal facility |
AOI | adjusted operating income (loss) |
ARO(s) | asset retirement obligation(s) |
BACT | best available control technology |
Bankruptcy Code | Chapter 11 of the United States Bankruptcy Code |
Bankruptcy Court | United States Bankruptcy Court for the Northern District of Illinois, Eastern Division |
bcf | billion cubic feet |
Big 4 Projects | Kern River, Midway-Sunset, Sycamore and Watson natural gas power projects |
Btu | British thermal units |
CAA | Clean Air Act |
CAIR | Clean Air Interstate Rule |
CO2 | carbon dioxide |
Commonwealth Edison | Commonwealth Edison Company |
CPS | Combined Pollutant Standard |
CPUC | California Public Utilities Commission |
CSAPR | Cross-State Air Pollution Rule |
Debtor Entities | EME and 16 of its wholly owned subsidiaries, including Midwest Generation |
EIX | Edison International |
EME | Edison Mission Energy |
EMMT | Edison Mission Marketing & Trading, Inc. |
ERCOT | Electric Reliability Council of Texas |
FASB | Financial Accounting Standards Board |
FERC | Federal Energy Regulatory Commission |
FPA | Federal Power Act |
GAAP | United States generally accepted accounting principles |
GECC | General Electric Capital Corporation |
GHG | greenhouse gas |
GWh | gigawatt-hours |
Homer City | EME Homer City Generation L.P. |
ISO(s) | independent system operator(s) |
Lehman Brothers | Lehman Brothers Commodity Services, Inc. and Lehman Brothers Holdings, Inc. |
LIBOR | London Interbank Offered Rate |
LSTC | liabilities subject to compromise |
MATS | Mercury and Air Toxics Standards |
Midwest Generation | Midwest Generation, LLC |
MISO | Midwest Independent Transmission System Operator |
MMBtu | million British thermal units |
Moody's | Moody's Investors Service, Inc. |
MW | megawatts |
MWh | megawatt-hours |
NAAQS | National Ambient Air Quality Standard(s) |
NERC | North American Electric Reliability Corporation |
NOX | nitrogen oxide |
NSR | New Source Review |
NYISO | New York Independent System Operator |
PJM | PJM Interconnection, LLC |
Powerton and Joliet Sale Leaseback | a sale leaseback transaction for the Powerton Station and Units 7 and 8 of the Joliet Station with third-party lessors in August 2000 |
PRB | Powder River Basin |
PSD | Prevention of Significant Deterioration |
RPM | Reliability Pricing Model |
RTO(s) | regional transmission organization(s) |
S&P | Standard & Poor's Ratings Services |
SCE | Southern California Edison Company |
SIP(s) | state implementation plan(s) |
SO2 | sulfur dioxide |
Settlement Transaction | A proposed settlement transaction with Edison International as contemplated in the Support Agreement |
Support Agreement | Transaction Support Agreement dated as of December 16, 2012 by and among EME, Edison International, and certain holders of EME's senior unsecured notes |
US EPA | United States Environmental Protection Agency |
US Treasury Grant(s) | Cash grants, under the American Recovery and Reinvestment Act of 2009 |
VIE(s) | variable interest entity(ies) |
• | their ability to consummate one or more plans of reorganization with respect to the Chapter 11 Cases, and to consummate the transactions contemplated by the Support Agreement, including the Settlement Transaction; |
• | the existence and duration of the Chapter 11 Cases, and the impact of orders and decisions of the Bankruptcy Court; |
• | beliefs and assumptions regarding their ability to continue as going concerns; |
• | their ability to meet liquidity requirements during periods of operating losses and capital spending programs, and Midwest Generation's ability to fund cash flow deficits and environmental retrofits; |
• | their ability to restructure their debt and lease obligations and stabilize their capital structures; |
• | their significant cash requirements and limited ability to borrow funds and access the capital markets on reasonable terms; |
• | EME's continued ability to monetize tax benefits generated by it and its subsidiaries, either through the Settlement Transaction or otherwise; |
• | the impact of reduced natural gas prices resulting from, among other things, shale gas technology on electric capacity and energy prices; |
• | supply and demand for electric capacity and energy, and the resulting prices and dispatch volumes; |
• | volatility of market prices for energy and capacity; |
• | the difficulty of predicting wholesale prices, transmission congestion, energy demand, and other aspects of the wholesale power generation market; |
• | environmental laws and regulations, or changes in the application of those laws and regulations, that could require additional expenditures or otherwise affect the cost and manner of business operations, including compliance with the CPS, the CAIR, the MATS rule and thermal discharge and other water quality standards; |
• | the cost and availability of fuel, sorbents, and other commodities used for power generation and emission controls, and of related transportation services; |
• | the cost and availability of emission credits or allowances; |
• | transmission congestion in and to each market area and the resulting differences in prices between delivery points; |
• | the availability and creditworthiness of counterparties, their ability to pay amounts owed in excess of collateral provided in support of obligations, and the resulting effects on liquidity in power and fuel markets; |
• | the willingness of counterparties to transact business with EME and Midwest Generation during the Chapter 11 Cases; |
• | governmental, statutory, regulatory or administrative changes or initiatives, including the market structure rules applicable to each market and price mitigation strategies adopted by ISOs and RTOs; |
• | market volatility and other market conditions that could increase their obligations to post collateral beyond the amounts currently expected, and the potential effect of such conditions on the ability of EME, Midwest Generation and their respective subsidiaries to provide sufficient collateral in support of their hedging activities and purchases of fuel; |
• | completion of permitting and construction of their capital projects; |
• | weather conditions, natural disasters and other unforeseen events; |
• | the extent of additional supplies of capacity, energy and ancillary services from current competitors or new market entrants, including the development of new generation facilities, and technologies that may be able to produce electricity at a lower cost than their generating facilities and/or increased access by competitors to their markets as a result of transmission upgrades; |
• | competition in all aspects of their business; |
• | operating risks, including equipment failure, availability, heat rate, output, costs of repairs and retrofits, and availability and cost of spare parts; |
• | creditworthiness of suppliers and other project participants and their ability to deliver goods and services under their contract obligations or to pay damages if they fail to fulfill those obligations; |
• | effects of legal proceedings, changes in or interpretations of tax laws, rates or policies, and changes in accounting standards; |
• | general political, economic and business conditions; and |
• | their ability to attract and retain skilled people, particularly during the pendency of the Chapter 11 Cases. |
• | the Powerton, Joliet, Will County, and Waukegan coal-fired generating plants consisting of 4,314 MW; and |
• | the Fisk and Waukegan on-site, oil-fired generating peakers consisting of 305 MW. |
Power Plants | Location | Primary Electric Purchaser2 | Fuel Type | Ownership Interest | Net Physical Capacity (in MW) | EME's Capacity Pro Rata Share (in MW) | |||||||||
MERCHANT POWER PLANTS | |||||||||||||||
Midwest Generation plants1,9,10 | Illinois | PJM | coal | 100 | % | 4,314 | 4,314 | ||||||||
Midwest Generation plants1,9 | Illinois | PJM | oil | 100 | % | 305 | 305 | ||||||||
Merchant Natural Gas | |||||||||||||||
Sunrise1,9 | California | CAISO | natural gas | 50 | % | 586 | 293 | ||||||||
Merchant Wind | |||||||||||||||
Goat Wind | Texas | ERCOT | wind | 99.9 | % | 3 | 150 | 150 | |||||||
Lookout | Pennsylvania | PJM | wind | 100 | % | 38 | 38 | ||||||||
Big Sky | Illinois | PJM | wind | 100 | % | 240 | 240 | ||||||||
CONTRACTED POWER PLANTS – Domestic | |||||||||||||||
Natural Gas | |||||||||||||||
Big 4 Projects | |||||||||||||||
Kern River1 | California | SCE | natural gas | 50 | % | 300 | 150 | ||||||||
Midway-Sunset1 | California | PG&E | natural gas | 50 | % | 225 | 113 | ||||||||
Sycamore1,9 | California | SCE | natural gas | 50 | % | 300 | 150 | ||||||||
Watson4,9 | California | SCE | natural gas | 49 | % | 416 | 204 | ||||||||
Westside Projects1 | |||||||||||||||
Coalinga | California | PG&E | natural gas | 50 | % | 38 | 19 | ||||||||
Mid-Set | California | PG&E | natural gas | 50 | % | 38 | 19 | ||||||||
Salinas River | California | PG&E | natural gas | 50 | % | 38 | 19 | ||||||||
Sargent Canyon | California | PG&E | natural gas | 50 | % | 38 | 19 | ||||||||
Renewable Energy | |||||||||||||||
Capistrano Wind Partners5 | |||||||||||||||
Cedro Hill | Texas | CSA | wind | 31 | % | 150 | 46 | ||||||||
Crofton Bluffs | Nebraska | NPPD | wind | 20 | % | 40 | 8 | ||||||||
Mountain Wind I | Wyoming | PC | wind | 31 | % | 61 | 19 | ||||||||
Mountain Wind II | Wyoming | PC | wind | 31 | % | 80 | 25 | ||||||||
Tapestry Wind | |||||||||||||||
Buffalo Bear | Oklahoma | WFEC | wind | 100 | % | 19 | 19 | ||||||||
Pinnacle | West Virginia | MDGS/USM | wind | 100 | % | 55 | 55 | ||||||||
Taloga | Oklahoma | OGEC | wind | 100 | % | 130 | 130 | ||||||||
Viento Funding II | |||||||||||||||
Elkhorn Ridge9 | Nebraska | NPPD | wind | 67 | % | 80 | 53 | ||||||||
San Juan Mesa9 | New Mexico | SPS | wind | 75 | % | 120 | 90 | ||||||||
Wildorado | Texas | SPS | wind | 99.9 | % | 3 | 161 | 161 |
Power Plants | Location | Primary Electric Purchaser2 | Fuel Type | Ownership Interest | Net Physical Capacity (in MW) | EME's Capacity Pro Rata Share (in MW) | |||||||||
Broken Bow I6 | Nebraska | NPPD | wind | 100 | % | 80 | 80 | ||||||||
Community Wind North | Minnesota | NSPC | wind | 99 | % | 3 | 30 | 30 | |||||||
Crosswinds | Iowa | CBPC | wind | 99 | % | 3 | 21 | 21 | |||||||
Forward | Pennsylvania | CECG | wind | 100 | % | 29 | 29 | ||||||||
Hardin | Iowa | IPLC | wind | 99 | % | 3 | 15 | 15 | |||||||
High Lonesome | New Mexico | APSC | wind | 100 | % | 100 | 100 | ||||||||
Jeffers | Minnesota | NSPC | wind | 99.9 | % | 3 | 50 | 50 | |||||||
Laredo Ridge | Nebraska | NPPD | wind | 100 | % | 80 | 80 | ||||||||
Minnesota Wind projects7 | Minnesota | NSPC/IPLC | wind | 99 | % | 3 | 50 | 50 | |||||||
Odin | Minnesota | MRES | wind | 99.9 | % | 3 | 20 | 20 | |||||||
Sleeping Bear | Oklahoma | PSCO | wind | 100 | % | 95 | 95 | ||||||||
Spanish Fork | Utah | PC | wind | 100 | % | 19 | 19 | ||||||||
Storm Lake1 | Iowa | MEC | wind | 100 | % | 108 | 108 | ||||||||
Huntington Waste-to-Energy8 | New York | LIPA | biomass | 38 | % | 25 | 9 | ||||||||
Coal | |||||||||||||||
American Bituminous1,11 | West Virginia | MPC | waste coal | 50 | % | 80 | 40 | ||||||||
CONTRACTED POWER PLANTS – International | |||||||||||||||
Doga1 | Republic of Turkey | TEDAS | natural gas | 80 | % | 180 | 144 | ||||||||
Total | 8,904 | 7,529 |
1 | Plant is operated under contract by an EME operations and maintenance subsidiary or the plant is operated or managed directly by an EME subsidiary. |
2 | Electric purchaser abbreviations are as follows: |
APSC | Arizona Public Service Company | NPPD | Nebraska Public Power District | ||||
CAISO | California Independent System Operator | NSPC | Northern States Power Company | ||||
CBPC | Corn Belt Power Cooperative | OGEC | Oklahoma Gas and Electric Company | ||||
CECG | Constellation Energy Commodities Group, Inc. | PC | PacifiCorp | ||||
CSA | City of San Antonio | PG&E | Pacific Gas & Electric Company | ||||
ERCOT | Electric Reliability Council of Texas | PJM | PJM Interconnection, LLC | ||||
IPLC | Interstate Power and Light Company | PSCO | Public Service Company of Oklahoma | ||||
LIPA | Long Island Power Authority | SCE | Southern California Edison Company | ||||
MDGS | Maryland Department of General Services | SPS | Southwestern Public Service | ||||
MEC | Mid-American Energy Company | TEDAS | Türkiye Elektrik Dagitim Anonim Sirketi | ||||
MPC | Monongahela Power Company | USM | University System of Maryland | ||||
MRES | Missouri River Energy Services | WFEC | Western Farmers Electric Cooperative |
3 | Represents EME's current ownership interest. If the project achieves a specified rate of return, EME's interest will decrease. |
4 | A dispute exists with one of EME's offtakers at this facility, and currently the facility is only being paid for an output of 397 MW. |
5 | Ownership percentages are calculated based on the partners' investment into each project. |
6 | Edison Mission Wind sold Broken Bow I in January 2013 to Capistrano Wind Partners. For further discussion, see Item 8. Combined Notes to Consolidated Financial Statements—Note 3. Variable Interest Entities. |
7 | Composed of four individual wind projects. |
8 | In October 2012, a non-debtor subsidiary of EME exercised an option to sell all of its interest in the project. For further discussion, see "Renewable Energy—Biomass—Huntington Waste-to-Energy Project." |
9 | Material properties owned or leased by EME's subsidiaries and affiliates. Each property represents at least five percent of EME's income before tax, excluding asset impairment charges, or is one in which EME has an investment balance greater than $40 million. Most of these properties are subject to mortgages or other liens or encumbrances granted to the lenders providing financing for the plant or project. |
10 | Certain of these sites are leased pursuant to the Powerton and Joliet Sale Leaseback. |
11 | In February 2013, the EME operations and maintenance subsidiary that currently operates the plant provided a 180-day notice of its intent to terminate its operations and maintenance contract. |
Fuel Source | Percentage of EME's Generation Capacity | |
Coal | 58% | |
Natural gas/oil | 19% | |
Renewable energy | 23% |
Operating Plant or Site | Location | Leased/ Owned | Fuel | Megawatts | |
Electric Generating Facilities | |||||
Joliet Unit 6 | Joliet, Illinois | owned | coal | 290 | |
Joliet Units 7 and 8 | Joliet, Illinois | leased | coal | 1,036 | |
Powerton Station | Pekin, Illinois | leased | coal | 1,538 | |
Waukegan Station1 | Waukegan, Illinois | owned | coal | 689 | |
Will County Station2 | Romeoville, Illinois | owned | coal | 761 | |
Peaking Units | |||||
Fisk | Chicago, Illinois | owned | oil | 197 | |
Waukegan | Waukegan, Illinois | owned | oil | 108 | |
Total | 4,619 |
Non-Operating Plant or Site | Location |
Crawford Station3 | Chicago, Illinois |
Fisk Station4 | Chicago, Illinois |
Collins Station5 | Grundy County, Illinois |
Crawford peaker5 | Chicago, Illinois |
Joliet peaker5 | Joliet, Illinois |
Calumet peaker5 | Chicago, Illinois |
Electric Junction peaker5 | Aurora, Illinois |
Lombard peaker5 | Lombard, Illinois |
Sabrooke peaker5 | Rockford, Illinois |
1 | The Waukegan Station is composed of Units 7 and 8. Midwest Generation permanently shut down Waukegan Station Unit 6 (100 MW) on December 21, 2007. |
2 | The Will County Station is composed of Units 3 and 4. Midwest Generation permanently shut down Will County Station Units 1 and 2, totaling 299 MW of capacity, on December 29, 2010 in accordance with the CPS. |
3 | Midwest Generation permanently shut down Crawford Station Unit 7 (213 MW) on August 28, 2012 and Crawford Station Unit 8 (319 MW) on August 24, 2012. |
4 | Midwest Generation permanently shut down Fisk Station Unit 19 (326 MW) on August 30, 2012. |
5 | Ceased operations before December 31, 2005. |
Wind Plants | Power Purchase Agreement Expiration Year/RTO or ISO | Production Tax Credit Expiration Date | Commercial Operation or Acquisition Date | |||
Capistrano Wind Partners | ||||||
Cedro Hill | 2030 | Qualified for US Treasury Grant | November 2010 | |||
Crofton Bluffs | 20326 | November 2022 | November 2012 | |||
Mountain Wind I | 2033 | July 2018 | July 2008 | |||
Mountain Wind II | 2033 | September 2018 | September 2008 | |||
Tapestry Wind | ||||||
Buffalo Bear | 2033 | December 2018 | December 2008 | |||
Pinnacle | 2031 | Qualified for US Treasury Grant | December 2011/January 2012 | |||
Taloga | 2031 | Qualified for US Treasury Grant | July 2011 | |||
Viento Funding II | ||||||
Elkhorn Ridge | 2029 | December 2018 | March 2009 | |||
San Juan Mesa | 2025 | December 2015 | December 2005 | |||
Wildorado | 2027 | April 2017 | April 2007 | |||
Big Sky5 | PJM | Qualified for US Treasury Grant | February 2011 | |||
Broken Bow | 20326 | December 2022 | December 2012 | |||
Community Wind North1 | 2031 | Qualified for US Treasury Grant | May 2011 | |||
Crosswinds2 | 20226 | June 2017 | June 2007 | |||
Forward | 2017 | April 2018 | April 2008 | |||
Goat Wind5 | ERCOT | Phase I - April 2018; Phase II - qualified for US Treasury Grant | April 2008/June 2009 | |||
Hardin3 | 2027 | May 2017 | May 2007 | |||
High Lonesome | 2039 | Qualified for US Treasury Grant | July 2009 | |||
Jeffers | 2028 | October 2018 | October 2008 | |||
Laredo Ridge | 2031 | Qualified for US Treasury Grant | February 2011 | |||
Lookout5 | PJM | September 2018 | October 2008 | |||
Minnesota4 | 2021-20297 | June 2009-July 2016 | April 2006 | |||
Odin | 2028 | June 2018 | May 2008 | |||
Sleeping Bear | 2032 | October 2017 | September 2007 | |||
Spanish Fork | 2028 | July 2018 | July 2008 | |||
Storm Lake | 2019 | June 2009 | May 1999 |
1 | Twelve separate limited liability companies collectively form the wind farm. |
2 | Ten separate limited liability companies collectively form the wind farm. |
3 | Seven separate limited liability companies collectively form the wind farm. |
4 | Thirty-four separate limited liability companies each own a small wind-powered electric generation facility. |
5 | Merchant wind-powered projects. |
6 | Agreement includes a five-year renewal option. |
7 | Each of the Minnesota Wind projects sells electricity under a power purchase agreement with Northern States Power Company that expires between 2025 and 2029, or with Interstate Power and Light Company that expires in 2021. |
• | Commercial operation of the Crofton Bluffs and Broken Bow I wind projects commenced on November 1, 2012 and December 1, 2012, respectively. Production tax credits will expire 10 years after the tax-in-service dates, which are also the commercial operation dates. Power purchase agreements will expire in 2032. |
• | In December 2012, EME began start-up and testing at the Walnut Creek project. Construction on the project began in June 2011. The project is expected to achieve commercial operation before June 2013 and to qualify for 50% bonus depreciation. |
• | Asset Management—EMMT engages in the sale of energy and capacity and the purchase and sale of fuels, including natural gas and fuel oil, through intercompany contracts with EME's subsidiaries that own or lease EME's facilities. EME uses derivative instruments to reduce its exposure to market risks that arise from price fluctuations of electricity, capacity, fuel, emission allowances, and transmission rights. The objective of these activities is to sell the output of the facilities on a forward basis or to hedge the risk of future changes in prices or price differences between different locations. Hedging activities typically include on-peak and off-peak periods and may include load service requirements contracts with local utilities. Transactions related to hedging activities are designated separately from EMMT's trading activities. Not all contracts entered into by EMMT for hedging purposes qualify as hedges for accounting purposes. Midwest Generation is a party to a contract with EMMT under which EMMT, as an agent for Midwest Generation, sells energy and capacity from the Midwest Generation plants into the wholesale market, engages in hedging activities, and provides scheduling and other services. EMMT has the ability to enter into fuel hedging arrangements on Midwest Generation's behalf. |
• | Trading—EMMT seeks to generate trading profits from volatility in the price of electricity, capacity, fuels, and transmission congestion by buying and selling contracts in wholesale markets under guidelines approved by EME's risk management committee. |
• | it may be difficult for the Debtor Entities to obtain and maintain commercial relationships on competitive terms with customers, suppliers and others; |
• | it may be difficult to retain and motivate key employees through the process of reorganization, and to attract new employees; |
• | EME's and Midwest Generation's senior management will be required to spend significant time and effort dealing with bankruptcy and restructuring activities rather than focusing exclusively on business operations; and |
• | EME and Midwest Generation may not be able to maintain or obtain sufficient financing sources for operations or to fund any reorganization plan and meet future obligations. |
• | definitive restructuring documents may not be completed, or Bankruptcy Court approvals obtained, in accordance with the deadlines set forth in the Support Agreement; |
• | the restructuring may not be accepted by the requisite number of creditors; and |
• | the Support Agreement may be terminated in accordance with its terms. |
• | $3.7 billion senior unsecured debt and $259 million of other obligations were recorded as a liability subject to compromise (LSTC) as a result of the filing of the Chapter 11 Cases; |
• | $1.4 billion in secured project level debt held by non-debtor EME subsidiaries, which is not guaranteed by EME and is not recorded in LSTC; and |
• | $1.4 billion of principal and accrued interest on the intercompany loan from Midwest Generation under which EME has historically made payments to Midwest Generation. As a result of the Chapter 11 Cases, EME did not make the scheduled principal and interest payment of $61 million due on January 2, 2013. Future payments, if any, made by EME under the loan will be dependent upon the overall resolution of the Chapter 11 Cases. |
• | $434 million of lease financing obligations related to the Powerton and Joliet Sale Leaseback, which are recorded in LSTC (these obligations are guaranteed by EME); and |
• | $95 million of other obligations in Midwest Generation's LSTC. |
ITEM 5. | MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Years Ended December 31, | |||||||||||||||||||
(in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Operating Revenues | $ | 1,287 | $ | 1,653 | $ | 1,788 | $ | 1,715 | $ | 2,095 | |||||||||
Operating Expenses1 | 1,615 | 2,351 | 1,594 | 1,511 | 1,441 | ||||||||||||||
Operating income (loss) | (328 | ) | (698 | ) | 194 | 204 | 654 | ||||||||||||
Income (loss) from continuing operations before reorganization items and income taxes | (594 | ) | (888 | ) | 65 | 32 | 537 | ||||||||||||
Reorganization items | 43 | — | — | — | — | ||||||||||||||
Provision (benefit) for income taxes | 160 | (441 | ) | (16 | ) | (60 | ) | 167 | |||||||||||
Income (loss) from continuing operations | (797 | ) | (447 | ) | 81 | 92 | 370 | ||||||||||||
Income (loss) from operations of discontinued subsidiaries, net of tax | (112 | ) | (632 | ) | 82 | 102 | 131 | ||||||||||||
Net Income (Loss) | (909 | ) | (1,079 | ) | 163 | 194 | 501 | ||||||||||||
Net (Income) Loss Attributable to Noncontrolling Interests | (16 | ) | 1 | 1 | 3 | — | |||||||||||||
Net Income (Loss) Attributable to EME Common Shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 164 | $ | 197 | $ | 501 |
1 | Operating expenses in 2012 and 2011 included $15 million and $704 million of asset impairment charges, respectively. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 13. Asset Impairments and Other Charges." |
December 31, | |||||||||||||||||||
(in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||||
Current assets | $ | 1,323 | $ | 1,941 | $ | 1,579 | $ | 1,554 | $ | 2,439 | |||||||||
Total assets | 7,520 | 8,323 | 9,321 | 8,633 | 9,080 | ||||||||||||||
Current liabilities | 820 | 548 | 497 | 557 | 668 | ||||||||||||||
Long-term debt net of current portion | 749 | 4,855 | 4,342 | 3,929 | 4,638 | ||||||||||||||
Liabilities subject to compromise | 3,959 | — | — | — | — | ||||||||||||||
Total EME common shareholder's equity | 444 | 1,662 | 2,817 | 2,761 | 2,684 |
Years Ended December 31, | |||||||||||||||||||
(in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
INCOME STATEMENT DATA | |||||||||||||||||||
Operating revenues from marketing affiliate | $ | 892 | $ | 1,286 | $ | 1,479 | $ | 1,487 | $ | 1,778 | |||||||||
Operating expenses1 | 2,489 | 1,802 | 1,191 | 1,117 | 1,068 | ||||||||||||||
Operating income (loss) | (1,597 | ) | (516 | ) | 288 | 370 | 710 | ||||||||||||
Interest and other income | 77 | 74 | 69 | 55 | 50 | ||||||||||||||
Income (loss) before reorganization items and income taxes | (1,520 | ) | (442 | ) | 357 | 425 | 760 | ||||||||||||
Reorganization items | 6 | — | — | — | — | ||||||||||||||
Provision (benefit) for income taxes | (62 | ) | (172 | ) | 142 | 166 | 283 | ||||||||||||
Net income (loss) | $ | (1,464 | ) | $ | (270 | ) | $ | 215 | $ | 259 | $ | 477 |
1 | Operating expenses in 2012 included a $1.4 billion charge for a valuation allowance on Midwest Generation's note receivable from EME. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 15. Related Party Transactions." Operating expenses in 2011 included asset impairment charges of $640 million. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 13. Asset Impairments and Other Charges." |
December 31, | |||||||||||||||||||
(in millions) | 2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||
BALANCE SHEET DATA | |||||||||||||||||||
Current assets | $ | 322 | $ | 610 | $ | 680 | $ | 677 | $ | 1,193 | |||||||||
Total assets | 2,428 | 4,190 | 4,942 | 5,063 | 5,711 | ||||||||||||||
Current liabilities | 41 | 239 | 263 | 333 | 380 | ||||||||||||||
Long-term debt | — | — | — | — | 475 | ||||||||||||||
Lease financings, net of current portion | 2 | 439 | 556 | 665 | 785 | ||||||||||||||
Liabilities subject to compromise | 529 | — | — | — | — | ||||||||||||||
Other long-term obligations | 190 | 243 | 345 | 320 | 296 | ||||||||||||||
Member's equity | 1,666 | 3,269 | 3,778 | 3,745 | 3,775 |
ITEM 7. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Years Ended December 31, | Year Ended December 31, 2010 | ||||||||||||||
(in millions) | 2012 | 2011 | Change | ||||||||||||
Net income (loss) attributable to EME common shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 153 | $ | 164 | |||||
Less: Non-Core Items - Net of Tax | |||||||||||||||
Asset impairments and other charges | |||||||||||||||
Midwest Generation plants | — | (386 | ) | 386 | — | ||||||||||
Wind projects and other charges | — | (41 | ) | 41 | — | ||||||||||
Ambit project | (9 | ) | — | (9 | ) | — | |||||||||
Write-off of capitalized costs | — | — | — | (24 | ) | ||||||||||
Gain on sale of March Point | — | 5 | (5 | ) | — | ||||||||||
Settlement of tax disputes | — | — | — | 16 | |||||||||||
Tax valuation allowance | (438 | ) | — | (438 | ) | — | |||||||||
Reorganization items | (25 | ) | — | (25 | ) | — | |||||||||
Income (loss) from discontinued operations | (112 | ) | (632 | ) | 520 | 82 | |||||||||
Total non-core items | (584 | ) | (1,054 | ) | 470 | 74 | |||||||||
Core Earnings (Loss) | $ | (341 | ) | $ | (24 | ) | $ | (317 | ) | $ | 90 |
• | $351 million increase in loss from the Midwest Generation plants primarily attributable to lower capacity and average realized energy prices, reduced generation and higher fuel prices, partially offset by lower planned maintenance costs and lower depreciation. |
• | $24 million decrease in the results of Sunrise due to the transition from sales under a long-term power purchase agreement to merchant operations; |
• | $15 million decrease in the results of the Big 4 Projects and the Westside Projects due to lower energy margins resulting from lower natural gas prices in 2012 and due to additional revenue in 2011 from a CPUC-approved settlement that provided for price adjustments for energy sold prior to the settlement as discussed in "Item 1. Business—Contracted Power Plants–Domestic—Natural Gas"; |
• | $15 million lower income from distributions received from Doga; |
• | $8 million decrease in energy trading due to lower revenues from trading power and PJM congestion contracts; |
• | $4 million increase in interest expense primarily due to new project financings, partially offset by the cessation of interest accrual on EME's unsecured senior notes upon the filing of the Chapter 11 Cases; and |
• | $12 million decrease in renewable energy income attributable to income allocated to outside investors in Capistrano Wind Partners partially offset by income from projects that achieved commercial operations in the second half of 2011 and 2012. |
• | $206 million decrease in income from the Midwest Generation plants primarily due to lower average realized energy and capacity prices and generation; |
• | $60 million increase in interest expense due to new energy project financings ($33 million) and lower capitalized interest ($27 million); |
• | $36 million decrease in energy trading due to reduced revenues from trading power contracts and the allocation to Homer City of benefits from an arrangement that allowed EMMT to deliver a portion of Homer City's power into the New York Independent System Operator (NYISO); and |
• | The decrease was partially offset by an $18 million increase in renewable energy income due to the increase in wind projects in operation coupled with higher generation due to more favorable wind conditions, partially offset by lower realized energy prices at the merchant wind projects. |
• | An earnings charge of $438 million resulting from the tax valuation allowance recorded in the fourth quarter of 2012; |
• | Classification of $112 million loss as discontinued operations, primarily related to Homer City , including an after-tax earnings charge of $53 million ($89 million pre-tax) to reflect the ultimate carrying value of assets and liabilities transferred to an affiliate of GECC; |
• | An after-tax earnings charge of $25 million ($43 million pre-tax) related to reorganization items recorded in the fourth quarter of 2012 due to the filing of the Chapter 11 Cases; and |
• | An after-tax earnings charge of $9 million ($15 million pre-tax) recorded in the fourth quarter of 2012 resulting from the recognition of an impairment of Ambit. |
• | Classification of $632 million loss as discontinued operations, primarily related to Homer City, including an after-tax earnings charge of $623 million ($1,032 million pre-tax) recorded in the fourth quarter of 2011 resulting from the write-off of prepaid rent and leasehold improvements related to the Homer City lease; |
• | An after-tax earnings charge of $386 million ($640 million pre-tax) recorded in the fourth quarter of 2011 resulting from the impairment of the Fisk, Crawford and Waukegan Stations; |
• | An after-tax earnings charge of $18 million ($30 million pre-tax) recorded in the fourth quarter of 2011 related to the write-down of five wind projects, totaling 158 MW of generating capacity; |
• | An after-tax earnings charge of $23 million ($36 million pre-tax) in 2011 resulting primarily from EME's decision to reduce its development pipeline and ongoing development activities; and |
• | An after-tax earnings benefit of $5 million in 2011 from the sale of the March Point project. |
• | Certain claims between EME, EIX, and the Noteholders who have signed the Support Agreement would be released prior to the effective date of a plan of reorganization, subject to the parties continuing performance of their obligations under the Support Agreement; |
• | The application of the Edison Mission Group and Mission Energy Holding Company tax-allocation agreements to EME would be extended through the earlier of the effective date of a plan of reorganization with respect to EME or December 31, 2014; |
• | EIX would cease to own EME when EME emerges from bankruptcy pursuant to a plan of reorganization; and |
• | Upon effectiveness of a plan of reorganization with respect to EME, EIX would assume approximately $200 million of EME's employee retirement related liabilities. |
• | EME will pay the reasonable and documented fees and expenses of the professional advisors to the Noteholders in connection with the Settlement Transaction; |
• | EME will consult with the professional advisors to the Noteholders regarding material decisions during the pendency of its Chapter 11 Cases; and |
• | EME agrees to seek the reasonable consent of the Noteholders to make material capital expenditures or payments with respect to the Powerton Station and Units 7 and 8 of Joliet Station, which are facilities subject to the Powerton and Joliet Sale Leaseback. |
• | Commercial operation of the Crofton Bluffs and Broken Bow I wind projects commenced on November 1, 2012 and December 1, 2012, respectively. Each project receives production tax credits and has executed a long-term power purchase agreement. In December 2012 and January 2013, EME sold Crofton Bluffs and Broken Bow I, respectively, to Capistrano Wind Partners. For further discussion see "Item 8. Combined Notes to Consolidated Financial Statements—Note 3. Variable Interest Entities." |
• | In December 2012, EME began start-up and testing at the Walnut Creek project. Construction on the project began in June 2011. The project is expected to achieve commercial operation before June 2013 and to qualify for 50% bonus depreciation. |
Unit | Remaining Cost (in millions) | Unit | Remaining Cost (in millions) | |||||||||
Joliet 6 | $ | 75 | Waukegan 7 | $ | 59 | |||||||
Joliet 7 | 111 | Waukegan 8 | 64 | |||||||||
Joliet 8 | 124 | Will County 3 | 104 | |||||||||
Powerton 5 | 127 | Will County 4 | 90 | |||||||||
Powerton 6 | 69 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Adjusted EBITDAR | $ | 80 | $ | 495 | $ | 661 | |||||
Depreciation and amortization | (268 | ) | (289 | ) | (229 | ) | |||||
Net interest expense | (324 | ) | (321 | ) | (260 | ) | |||||
Asset impairment and other charges1 | (28 | ) | (714 | ) | (44 | ) | |||||
Reorganization items | (43 | ) | — | — | |||||||
(Provision) benefit for income taxes2 | (230 | ) | 375 | (46 | ) | ||||||
Gain on sale of investments3 | — | 8 | — | ||||||||
Income (loss) from operations of discontinued subsidiaries, net of tax | (112 | ) | (632 | ) | 82 | ||||||
Net income (loss) attributable to EME common shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 164 |
1 | For additional information see "Item 8. Combined Notes to Consolidated Financial Statements—Note 13. Asset Impairments and Other Charges." |
2 | Provision (benefit) for income taxes includes the impact of production tax credits. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 7. Income Taxes." |
3 | Reflects the sale of March Point in 2011. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Midwest Generation plants | $ | (253 | ) | $ | (542 | ) | $ | 264 | |||
Renewable energy projects | 57 | 39 | 51 | ||||||||
Energy trading | 66 | 74 | 110 | ||||||||
Big 4 Projects | 36 | 44 | 52 | ||||||||
Sunrise | 8 | 32 | 33 | ||||||||
Doga | 11 | 26 | 15 | ||||||||
March Point | — | 8 | 17 | ||||||||
Westside Projects | — | 7 | 1 | ||||||||
Other projects | (8 | ) | 9 | 9 | |||||||
Other operating income (expense)1 | 1 | (36 | ) | — | |||||||
(82 | ) | (339 | ) | 552 | |||||||
Corporate administrative and general | (115 | ) | (137 | ) | (145 | ) | |||||
Corporate depreciation and amortization | (20 | ) | (24 | ) | (19 | ) | |||||
AOI2 | $ | (217 | ) | $ | (500 | ) | $ | 388 |
1 | In 2011, primarily related to EME's decision to reduce its development pipeline and ongoing development activities. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 13. Asset Impairments and Other Charges." |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
AOI | $ | (217 | ) | $ | (500 | ) | $ | 388 | |||
Less: | |||||||||||
Equity in income of unconsolidated affiliates | 46 | 86 | 104 | ||||||||
Dividend income from projects | 12 | 30 | 19 | ||||||||
Production tax credits | 69 | 66 | 62 | ||||||||
Other income (loss), net | — | 15 | 8 | ||||||||
Net (income) loss attributable to noncontrolling interests | (16 | ) | 1 | 1 | |||||||
Consolidated EME Operating Income (Loss) | $ | (328 | ) | $ | (698 | ) | $ | 194 |
Years Ended December 31, | ||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||
(in millions) | Midwest Generation | Consoli- dation Adjust- ments | EME AOI | Midwest Generation | Consoli- dation Adjust- ments | EME AOI | Midwest Generation | Consoli- dation Adjust- ments | EME AOI | |||||||||||
Operating Revenues | 892 | — | 892 | 1,286 | — | 1,286 | 1,479 | — | 1,479 | |||||||||||
Operating Expenses | ||||||||||||||||||||
Fuel | 582 | — | 582 | 512 | — | 512 | 519 | — | 519 | |||||||||||
Plant operations | 369 | — | 369 | 457 | (1 | ) | 456 | 447 | 1 | 448 | ||||||||||
Plant operating leases1 | — | 75 | 75 | — | 75 | 75 | — | 75 | 75 | |||||||||||
Depreciation and amortization2 | 128 | (41 | ) | 87 | 158 | (41 | ) | 117 | 155 | (41 | ) | 114 | ||||||||
Asset impairments and other charges | 14 | — | 14 | 653 | (3 | ) | 650 | 48 | (6 | ) | 42 | |||||||||
Administrative and general | 18 | — | 18 | 22 | — | 22 | 22 | — | 22 | |||||||||||
Impairment of loan to affiliate3 | 1,378 | (1,378 | ) | — | — | — | — | — | — | — | ||||||||||
Total operating expenses | 2,489 | (1,344 | ) | 1,145 | 1,802 | 30 | 1,832 | 1,191 | 29 | 1,220 | ||||||||||
Operating Income (Loss) | (1,597 | ) | 1,344 | (253 | ) | (516 | ) | (30 | ) | (546 | ) | 288 | (29 | ) | 259 | |||||
Other Income | — | — | — | 3 | 1 | 4 | 5 | — | 5 | |||||||||||
AOI | (1,597 | ) | 1,344 | (253 | ) | (513 | ) | (29 | ) | (542 | ) | 293 | (29 | ) | 264 |
1 | Represents levelized rent expense of the Powerton and Joliet Sale Leaseback as recorded as an operating lease at EME. |
2 | The consolidation adjustment represents depreciation recorded by Midwest Generation for the Powerton and Joliet Sale Leaseback accounted for as a lease financing. |
3 | Represents the valuation allowance charge recorded by Midwest Generation on its note receivable from EME. For additional information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 15. Related Party Transactions." |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Statistics1 | |||||||||||
Generation (in GWh) | 22,913 | 28,145 | 29,798 | ||||||||
Aggregate plant performance | |||||||||||
Equivalent availability | 85.9 | % | 82.9 | % | 82.2 | % | |||||
Capacity factor | 53.6 | % | 62.2 | % | 62.3 | % | |||||
Load factor | 62.4 | % | 75.0 | % | 75.8 | % | |||||
Forced outage rate | 4.6 | % | 5.3 | % | 6.2 | % | |||||
Average realized price/MWh | $ | 34.26 | $ | 36.83 | $ | 40.12 | |||||
Capacity revenues only (in millions) | $ | 97 | $ | 244 | $ | 263 | |||||
Average realized fuel costs/MWh | $ | 24.62 | $ | 18.06 | $ | 17.17 |
1 | For an explanation of how the statistical data is determined, see "—Reconciliation of Non-GAAP Disclosures and Statistical Definitions." |
(in millions) | Years Ended December 31, | ||||||||||
2012 | 2011 | 2010 | |||||||||
Operating revenues | $ | 892 | $ | 1,286 | $ | 1,479 | |||||
Adjusted for: | |||||||||||
Unrealized (gains) losses | 2 | (3 | ) | 6 | |||||||
Capacity and other revenues1 | (109 | ) | (247 | ) | (290 | ) | |||||
Realized revenues | $ | 785 | $ | 1,036 | $ | 1,195 | |||||
Generation (in GWh) | 22,913 | 28,145 | 29,798 | ||||||||
Average realized energy price/MWh | $ | 34.26 | $ | 36.83 | $ | 40.12 |
1 | A gain from the sale of the bankruptcy claims against Lehman Brothers is included in 2010. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Operating revenues | |||||||||||
Midwest Generation | $ | 892 | $ | 1,286 | $ | 1,479 | |||||
EME Renewable energy projects | 255 | 221 | 137 | ||||||||
Other EME subsidiaries | 140 | 146 | 172 | ||||||||
Consolidated EME operating revenues as reported | $ | 1,287 | $ | 1,653 | $ | 1,788 |
(in millions) | Years Ended December 31, | ||||||||||
2012 | 2011 | 2010 | |||||||||
Fuel costs | $ | 582 | $ | 512 | $ | 519 | |||||
Adjusted for: | |||||||||||
Unrealized losses | (4 | ) | (4 | ) | (7 | ) | |||||
Cost of coal sales1 | (14 | ) | — | — | |||||||
Realized fuel costs | $ | 564 | $ | 508 | $ | 512 | |||||
Generation (in GWh) | 22,913 | 28,145 | 29,798 | ||||||||
Average realized fuel costs/MWh | $ | 24.62 | $ | 18.06 | $ | 17.17 |
1 | During 2012, Midwest Generation sold one million tons of coal. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Fuel costs | |||||||||||
Midwest Generation | $ | 582 | $ | 512 | $ | 519 | |||||
Other EME subsidiaries | 20 | 18 | 12 | ||||||||
Consolidated EME fuel costs as reported | $ | 602 | $ | 530 | $ | 531 |
• | Equivalent availability reflects the impact of the unit's inability to achieve full load, referred to as derating, as well as outages which result in a complete unit shutdown. The Midwest Generation plants are not available during periods of planned and unplanned maintenance. The equivalent availability factor is defined as the number of MWh the coal plants are available to generate electricity divided by the product of the capacity of the coal plants (in MW) and the number of hours in the period. |
• | The capacity factor indicates how much power a unit generated compared to the maximum amount of power that could be generated according to its rating. It is defined as the actual number of MWh generated by the coal plants divided by the product of the capacity of the coal plants (in MW) and the number of hours in the period. |
• | The load factor indicates how much power a unit generated compared to the maximum amount of power that a unit was available to generate electricity. It is determined by dividing capacity factor by the equivalent availability factor. |
• | The forced outage rate refers to forced outages and deratings excluding events outside of management's control as defined by NERC. Examples include floods, tornado damage and transmission outages. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Interest and other income | $ | — | $ | 3 | $ | 5 | |||||
Interest income from affiliate | 110 | 111 | 112 | ||||||||
Interest expense | (33 | ) | (40 | ) | (48 | ) | |||||
Total other income | $ | 77 | $ | 74 | $ | 69 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Operating Revenues | $ | 892 | $ | 1,286 | $ | 1,479 | |||||
Operating Expenses | |||||||||||
Fuel | 582 | 512 | 519 | ||||||||
Plant operations | 369 | 456 | 448 | ||||||||
Plant operating leases | 75 | 75 | 75 | ||||||||
Depreciation and amortization | 87 | 117 | 114 | ||||||||
Asset impairments and other charges | 14 | 650 | 42 | ||||||||
Administrative and general | 18 | 22 | 22 | ||||||||
Total operating expenses | 1,145 | 1,832 | 1,220 | ||||||||
Operating Income (Loss) | (253 | ) | (546 | ) | 259 | ||||||
Other Income | — | 4 | 5 | ||||||||
AOI | $ | (253 | ) | $ | (542 | ) | $ | 264 |
Years Ended December 31, | |||||||||||
(in millions, except operating data) | 2012 | 2011 | 2010 | ||||||||
Operating Revenues | $ | 255 | $ | 221 | $ | 137 | |||||
Production Tax Credits | 69 | 66 | 62 | ||||||||
324 | 287 | 199 | |||||||||
Operating Expenses | |||||||||||
Plant operations | 89 | 78 | 55 | ||||||||
Depreciation and amortization | 155 | 141 | 89 | ||||||||
Asset impairments and other charges | — | 30 | 3 | ||||||||
Administrative and general | 6 | 4 | 3 | ||||||||
Total operating expenses | 250 | 253 | 150 | ||||||||
Equity in income from unconsolidated affiliates | (1 | ) | 1 | — | |||||||
Other Income | — | 3 | 2 | ||||||||
Net (Income) Loss Attributable to Noncontrolling Interests | (16 | ) | 1 | — | |||||||
AOI | $ | 57 | $ | 39 | $ | 51 | |||||
Statistics1 | |||||||||||
Generation (in GWh)2 | 5,991 | 5,564 | 3,646 | ||||||||
Aggregate plant performance2 | |||||||||||
Equivalent availability3 | 93.5 | % | 91.7 | % | 91.8 | % | |||||
Capacity factor | 34.9 | % | 35.6 | % | 33.0 | % |
1 | The statistics section summarizes key performance measures related to wind projects, which represents substantially all of the renewable energy projects. |
2 | Includes renewable energy projects that are not consolidated by EME. Generation excluding unconsolidated projects was 5,197 GWh in 2012, 4,816 GWh in 2011 and 3,037 GWh in 2010. |
3 | Equivalent availability for renewable energy projects reflects the impact of the projects inability to generate power at full capacity, including outages due to regular maintenance. Equivalent availability is defined as the number of MWh the units are available to generate electricity divided by the product of the capacity of the units (in MW) and the number of hours in the period. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
AOI | $ | 57 | $ | 39 | $ | 51 | |||||
Less: | |||||||||||
Equity in income of unconsolidated affiliates | (1 | ) | 1 | — | |||||||
Production tax credits | 69 | 66 | 62 | ||||||||
Other income | — | 3 | 2 | ||||||||
Net (income) loss attributable to noncontrolling interests | (16 | ) | 1 | — | |||||||
Operating Income (Loss) | $ | 5 | $ | (32 | ) | $ | (13 | ) |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Interest income | $ | 2 | $ | 1 | $ | 2 | |||||
Interest expense, net of capitalized interest | |||||||||||
EME debt | (254 | ) | (257 | ) | (229 | ) | |||||
Nonrecourse debt | (72 | ) | (65 | ) | (33 | ) | |||||
$ | (326 | ) | $ | (322 | ) | $ | (262 | ) |
(in millions) | Cash and Cash Equivalents | ||||
EME as a holding company | $ | 328 | |||
EME subsidiaries without contractual dividend restrictions | |||||
Midwest Generation | 95 | ||||
Other EME subsidiaries | 392 | ||||
EME and subsidiaries without contractual dividend restrictions | 815 | ||||
EME subsidiaries with contractual dividend restrictions | 73 | ||||
Total | $ | 888 |
(in millions) | 2013 | 2014 | 2015 | ||||||||
Midwest Generation | |||||||||||
Environmental | $ | 109 | $ | 328 | $ | 148 | |||||
Plant capital | 21 | 36 | 31 | ||||||||
Walnut Creek Project1 | 81 | — | — | ||||||||
Other capital2 | 21 | 17 | 15 | ||||||||
Total | $ | 232 | $ | 381 | $ | 194 |
1 | For additional information, see "Edison Mission Energy Overview—Construction and Development Activities." |
2 | Primarily represents EME corporate and information technology related expenditures. |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Operating cash flows from continuing operations | $ | (467 | ) | $ | 660 | $ | 577 | ||||
Operating cash flows from discontinued operations, net | (46 | ) | (34 | ) | 29 | ||||||
Net cash (used in) provided by operating activities | (513 | ) | 626 | 606 | |||||||
Net cash provided by financing activities from continuing operations | 564 | 277 | 235 | ||||||||
Investing cash flows from continuing operations | (430 | ) | (664 | ) | (544 | ) | |||||
Investing cash flows from discontinued operations, net | (31 | ) | (14 | ) | (18 | ) | |||||
Net cash used in investing activities | (461 | ) | (678 | ) | (562 | ) | |||||
Net (decrease) increase in cash and cash equivalents from continuing operations | $ | (333 | ) | $ | 273 | $ | 268 | ||||
Net (decrease) increase in cash and cash equivalents from discontinued operations | $ | (77 | ) | $ | (48 | ) | $ | 11 |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Cash contributions from noncontrolling interests | $ | 288 | $ | — | $ | — | |||||
Long-term debt financings | |||||||||||
Renewable energy projects | 79 | 294 | 211 | ||||||||
Walnut Creek project | — | 187 | — | ||||||||
Short-term debt financings | |||||||||||
Renewable energy projects | — | 32 | 96 | ||||||||
Walnut Creek project | 195 | — | — | ||||||||
Debt repayments | |||||||||||
Renewable energy projects | (36 | ) | (89 | ) | (33 | ) | |||||
Other projects | (20 | ) | (18 | ) | (15 | ) | |||||
Borrowing held in escrow pending completion of project construction | 97 | (97 | ) | — | |||||||
Financing costs and others | (39 | ) | (32 | ) | (24 | ) | |||||
Total cash provided by financing activities | $ | 564 | $ | 277 | $ | 235 |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Capital expenditures | |||||||||||
Midwest Generation plants | |||||||||||
Environmental | $ | 21 | $ | 82 | $ | 32 | |||||
Plant capital | 9 | 21 | 75 | ||||||||
Walnut Creek project | 203 | 258 | — | ||||||||
Renewable energy projects | 114 | 298 | 414 | ||||||||
Other capital expenditures | 8 | 13 | 35 | ||||||||
Investments in other assets | 8 | 30 | 7 | ||||||||
Collateral for letter of credit facilities | 49 | — | — | ||||||||
Other investing activities | 18 | (38 | ) | (19 | ) | ||||||
Homer City plant | 31 | 14 | 18 | ||||||||
Total cash used in investing activities | $ | 461 | $ | 678 | $ | 562 |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Net cash provided by operating activities | $ | 13 | $ | 364 | $ | 401 | |||||
Net cash used in financing activities | (116 | ) | (334 | ) | (245 | ) | |||||
Net cash used in investing activities | (15 | ) | (112 | ) | (98 | ) | |||||
Net (decrease) increase in cash and cash equivalents | $ | (118 | ) | $ | (82 | ) | $ | 58 |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Cash equity distributions | $ | — | $ | 225 | $ | 125 | |||||
Non-cash equity distributions | 106 | — | — | ||||||||
Tax payments under tax-allocation agreements | — | 8 | 136 | ||||||||
Total | $ | 106 | $ | 233 | $ | 261 |
Payments Due by Period | |||||||||||||||||||
(in millions) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||
Long-term debt of EME's non-debtor subsidiaries1 | $ | 1,247 | $ | 98 | $ | 438 | $ | 221 | $ | 490 | |||||||||
Short-term debt2 | 387 | 387 | — | — | — | ||||||||||||||
Power plant and other operating lease obligations3 | 847 | 170 | 252 | 55 | 370 | ||||||||||||||
Capital lease obligations4 | 3 | 1 | 2 | — | — | ||||||||||||||
Purchase obligations4 | |||||||||||||||||||
Midwest Generation fuel supply contracts | 320 | 170 | 150 | — | — | ||||||||||||||
Midwest Generation coal transportation agreements5 | 2,154 | 283 | 536 | 475 | 860 | ||||||||||||||
Gas transportation agreements | 39 | 7 | 14 | 15 | 3 | ||||||||||||||
Capital expenditures | 85 | 49 | 36 | — | — | ||||||||||||||
Other contractual obligations | 114 | 51 | 42 | 20 | 1 | ||||||||||||||
Employee benefit plan contribution6 | 107 | 23 | 45 | 39 | — | ||||||||||||||
Total excluding LSTC7 | $ | 5,303 | $ | 1,239 | $ | 1,515 | $ | 825 | $ | 1,724 | |||||||||
LSTC8 | 3,959 | ||||||||||||||||||
Total | $ | 9,262 |
1 | Amount is primarily project debt, including $191 million of interest payments over the applicable period of the debt. For additional details, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements." |
2 | Amount is primarily project debt, including $5 million of interest payments over the applicable period of the debt. For additional details, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements." |
3 | Amount is primarily related to the Powerton and Joliet Sale Leaseback. For further discussion, see "—Off-Balance Sheet Transactions—Sale Leaseback" and "Item 8. Combined Notes to Consolidated Financial Statements—Note 9. Commitments and Contingencies." |
4 | For additional details, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 9. Commitments and Contingencies." |
5 | Reflects a reduction in minimum volumes for the voluntarily cessation of coal-fired operations at the Fisk and Crawford Stations. |
6 | Amount includes estimated contribution for pension plans and postretirement benefits other than pensions. The estimated contributions beyond 2017 are not available. For more information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 8. Compensation and Benefit Plans—Pension Plans and Postretirement Benefits Other than Pensions." |
7 | The contractual obligations table does not include derivative obligations, AROs and the total net liability for uncertain tax positions of $161 million at December 31, 2012. EME cannot make reliable estimates of the cash flows by period due to uncertainty surrounding |
8 | Amount primarily reflects $3.7 billion of EME's unsecured senior notes that was previously recorded as long-term debt. For additional details, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 5. Debt and Credit Agreements" and "—Note 16. Restructuring Activities." |
Payments Due by Period | |||||||||||||||||||
(in millions) | Total | Less than 1 year | 1 to 3 years | 3 to 5 years | More than 5 years | ||||||||||||||
Lease financings not included in LSTC1 | $ | 9 | $ | 7 | $ | 2 | $ | — | $ | — | |||||||||
Operating lease obligations2 | 38 | 8 | 14 | 10 | 6 | ||||||||||||||
Purchase obligations2 | |||||||||||||||||||
Fuel supply contracts | 320 | 170 | 150 | — | — | ||||||||||||||
Coal transportation agreements3 | 2,154 | 283 | 536 | 475 | 860 | ||||||||||||||
Capital expenditures | 61 | 25 | 36 | — | — | ||||||||||||||
Other contractual obligations | 20 | 19 | 1 | — | — | ||||||||||||||
Employee benefit plan contribution4 | 80 | 18 | 33 | 29 | — | ||||||||||||||
Total excluding LSTC5 | $ | 2,682 | $ | 530 | $ | 772 | $ | 514 | $ | 866 | |||||||||
LSTC6 | 529 | ||||||||||||||||||
Total | $ | 3,211 |
1 | Amount primarily represents the portion of the rent and interest due under the Powerton and Joliet Sale Leaseback attributable to the period between December 17, 2012 and January 2, 2013. For further discussion, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 9. Commitments and Contingencies." |
2 | For additional details, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 9. Commitments and Contingencies." |
3 | Reflects a reduction in minimum volumes for the voluntarily cessation of coal-fired operations at the Fisk and Crawford Stations. |
4 | Amount includes estimated contribution for pension plans and postretirement benefits other than pensions. The estimated contributions beyond 2017 are not available. For more information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 8. Compensation and Benefit Plans—Pension Plans and Postretirement Benefits Other than Pensions." |
5 | The contractual obligations table does not include derivative obligations, AROs and the total net liability for uncertain tax positions of $42 million at December 31, 2012. Midwest Generation cannot make reliable estimates of the cash flows by period due to uncertainty surrounding the timing of resolving these open tax issues with the Internal Revenue Service. For more information, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 6. Derivative Instruments and Hedging Activities," "—Note 2. Property, Plant and Equipment" and "—Note 7. Income Taxes," respectively. |
6 | Amount primarily reflects principal payments related to the Powerton and Joliet Sale Leaseback that were previously recorded as lease financing. For further discussion, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 9. Commitments and Contingencies" and "—Note 16. Restructuring Activities." |
Power Station(s) | Acquisition Price (in millions) | Equity Investor | Original Equity Investment in Owner-Lessor (in millions) | Amount of Lessor Debt at December 31, 2012 (in millions) | Maturity Date of Lessor Debt | |||||
Powerton/Joliet | $1,367 | PSEG/Citigroup, Inc. | $238 | $345 Series B | 2016 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Powerton and Joliet Stations | |||||||||||
Midwest Generation lease payments | $ | 151 | $ | 151 | $ | 170 | |||||
EME rent expense | $ | 75 | $ | 75 | $ | 75 |
Years Ending December 31, (in millions) | Principal Amount | Interest Amount | Total | ||||||||
2013 | $ | 12 | $ | 109 | $ | 121 | |||||
2014 | 545 | 86 | 631 | ||||||||
2015 | 283 | 40 | 323 | ||||||||
2016 | 483 | — | 483 | ||||||||
Total | $ | 1,323 | $ | 235 | $ | 1,558 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Midwest Generation | |||||||||||
Non-qualifying hedges | $ | (4 | ) | $ | (2 | ) | $ | (11 | ) | ||
Ineffective portion of cash flow hedges | (2 | ) | 1 | (2 | ) | ||||||
Total unrealized losses | $ | (6 | ) | $ | (1 | ) | $ | (13 | ) |
2012 | 2011 | 2010 | |||||||||
24-Hour Average Historical Market Prices1 | $ | 28.56 | $ | 33.21 | $ | 33.12 |
1 | Energy prices were calculated at the Northern Illinois Hub delivery point using historical hourly day-ahead prices as published by PJM or provided on the PJM web-site. |
24-Hour Forward Energy Prices1 | |||||
2013 calendar "strip"2 | $ | 30.07 | |||
2014 calendar "strip"2 | $ | 30.99 |
1 | Energy prices were determined by obtaining broker quotes and information from other public sources relating to the Northern Illinois Hub delivery point. |
2 | Market price for energy purchases for the entire calendar year. |
MWh (in thousands) | Average price/MWh1 | |||||||||
Midwest Generation2 | 3,616 | $ | 36.51 |
1 | The above hedge positions include forward contracts for the sale of power and futures contracts during different periods of the year and the day. Market prices tend to be higher during on-peak periods and during summer months, although there is significant variability of power prices during different periods of time. Accordingly, the above hedge positions are not directly comparable to the 24-hour Northern Illinois Hub prices set forth above. |
2 | Includes hedging transactions primarily at the American Electric Power (AEP)/Dayton Hub and the Northern Illinois Hub, both in PJM, and to a lesser extent the Indiana Hub in MISO. |
RPM Capacity Sold in Base Residual Auction | Other Capacity Purchases, Net of Sales1 | Aggregate Average Price per MW-day | |||||||||||||||||
MW | Price per MW-day | MW | Average Price per MW-day | ||||||||||||||||
January 1, 2013 to May 31, 2013 | 4,704 | $ | 16.46 | (450 | ) | $ | 15.67 | $ | 16.54 | ||||||||||
June 1, 2013 to May 31, 2014 | 4,650 | 27.73 | (2,430 | ) | 7.01 | 50.40 | |||||||||||||
June 1, 2014 to May 31, 2015 | 4,625 | 125.99 | (700 | ) | 5.54 | 147.47 | |||||||||||||
June 1, 2015 to May 31, 2016 | 3,620 | 136.00 | — | — | 136.00 |
1 | Other capacity sales and purchases, net includes contracts executed in advance of the RPM base residual auction to hedge the price risk related to such auction, participation in RPM incremental auctions and other capacity transactions entered into to manage capacity risks. |
2013 | 2014 | |||
Amount of Coal Under Contract in Millions of Equivalent Tons1 | 11.8 | 9.8 |
1 | The amount of coal under contract in equivalent tons is calculated based on contracted tons and applying an 8,800 Btu equivalent. |
December 31, 2012 | |||||||||||
(in millions) | Exposure2 | Collateral | Net Exposure | ||||||||
Credit Rating1 | |||||||||||
A or higher | $ | 72 | $ | — | $ | 72 | |||||
A- | — | — | — | ||||||||
BBB+ | — | — | — | ||||||||
BBB | 1 | — | 1 | ||||||||
BBB- | — | — | — | ||||||||
Below investment grade | — | — | — | ||||||||
Total | $ | 73 | $ | — | $ | 73 |
1 | EME assigns a credit rating based on the lower of a counterparty's Standard & Poor's Ratings Services (S&P) or Moody's Investors Service, Inc. (Moody's) rating. For ease of reference, the above table uses the S&P classifications to summarize risk, but reflects the lower of the two credit ratings. |
2 | Exposure excludes amounts related to contracts classified as normal purchase and sales and non-derivative contractual commitments that are not recorded on the consolidated balance sheet, except for any related accounts receivable. |
• | Observable market prices for electricity, fuel and related products and services to the extent available and long-term prices developed based on a fundamental price model; |
• | Long-term capacity prices based on the assumption that capacity markets would continue consistent with their current structure, with expected increases in revenues as a result of declines in reserve margins beyond the price of the latest auctions; |
• | Trends for additions and retirements for generation resources; and |
• | Plans for compliance with both existing and possible future environmental regulations. |
Report of Independent Registered Public Accounting Firm - Edison Mission Energy | |
Report of Independent Registered Public Accounting Firm - Midwest Generation | |
EDISON MISSION ENERGY | |
Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Balance Sheets at December 31, 2012 and 2011 | |
Consolidated Statements of Total Equity for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 | |
MIDWEST GENERATION, LLC | |
Consolidated Statements of Operations for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Comprehensive Income (Loss) for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Balance Sheets at December 31, 2012 and 2011 | |
Consolidated Statements of Member's Equity for the years ended December 31, 2012, 2011 and 2010 | |
Consolidated Statements of Cash Flows for the years ended December 31, 2012, 2011 and 2010 | |
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS |
ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Operating Revenues | $ | 1,287 | $ | 1,653 | $ | 1,788 | |||||
Operating Expenses | |||||||||||
Fuel | 602 | 530 | 531 | ||||||||
Plant operations | 495 | 571 | 538 | ||||||||
Plant operating leases | 75 | 75 | 75 | ||||||||
Depreciation and amortization | 268 | 289 | 229 | ||||||||
Asset impairments and other charges | 28 | 714 | 44 | ||||||||
Administrative and general | 147 | 172 | 177 | ||||||||
Total operating expenses | 1,615 | 2,351 | 1,594 | ||||||||
Operating income (loss) | (328 | ) | (698 | ) | 194 | ||||||
Other Income (Expense) | |||||||||||
Equity in income from unconsolidated affiliates | 46 | 86 | 104 | ||||||||
Dividend income | 12 | 30 | 19 | ||||||||
Interest income | 2 | 1 | 2 | ||||||||
Interest expense | (326 | ) | (322 | ) | (262 | ) | |||||
Other income, net | — | 15 | 8 | ||||||||
Total other expense | (266 | ) | (190 | ) | (129 | ) | |||||
Income (loss) from continuing operations before reorganization items and income taxes | (594 | ) | (888 | ) | 65 | ||||||
Reorganization items | 43 | — | — | ||||||||
Provision (benefit) for income taxes | 160 | (441 | ) | (16 | ) | ||||||
Income (Loss) From Continuing Operations | (797 | ) | (447 | ) | 81 | ||||||
Income (Loss) from Operations of Discontinued Subsidiaries, net of tax (Note 14) | (112 | ) | (632 | ) | 82 | ||||||
Net Income (Loss) | (909 | ) | (1,079 | ) | 163 | ||||||
Net (Income) Loss Attributable to Noncontrolling Interests (Note 3) | (16 | ) | 1 | 1 | |||||||
Net Income (Loss) Attributable to Edison Mission Energy Common Shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 164 | |||
Amounts Attributable to Edison Mission Energy Common Shareholder | |||||||||||
Income (loss) from continuing operations, net of tax | $ | (813 | ) | $ | (446 | ) | $ | 82 | |||
Income (loss) from discontinued operations, net of tax | (112 | ) | (632 | ) | 82 | ||||||
Net Income (Loss) Attributable to Edison Mission Energy Common Shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 164 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Net Income (Loss) | $ | (909 | ) | $ | (1,079 | ) | $ | 163 | |||
Other comprehensive income (loss), net of tax | |||||||||||
Valuation allowance on deferred tax asset | (6 | ) | — | — | |||||||
Pension and postretirement benefits other than pensions: | |||||||||||
Prior service adjustment, net of tax | — | — | (7 | ) | |||||||
Net gain (loss) adjustment, net of tax expense (benefit) of $4, $(10) and $(10) for 2012, 2011 and 2010, respectively | — | (15 | ) | (14 | ) | ||||||
Amortization of net loss and prior service adjustment included in expense, net of tax | 4 | 2 | 1 | ||||||||
Unrealized gains (losses) on derivatives qualified as cash flow hedges | |||||||||||
Unrealized holding gains (losses) arising during the periods, net of income tax expense (benefit) of $(6), $(7), and $37 for 2012, 2011 and 2010, respectively | (17 | ) | (12 | ) | 55 | ||||||
Reclassification adjustments included in net income (loss), net of income tax benefit of $16, $25 and $96 for 2012, 2011 and 2010, respectively | (25 | ) | (38 | ) | (144 | ) | |||||
Other comprehensive loss, net of tax | (44 | ) | (63 | ) | (109 | ) | |||||
Comprehensive Income (Loss) | (953 | ) | (1,142 | ) | 54 | ||||||
Comprehensive (Income) Loss Attributable to Noncontrolling Interests | (16 | ) | 1 | 1 | |||||||
Comprehensive Income (Loss) Attributable to Edison Mission Energy Common Shareholder | $ | (969 | ) | $ | (1,141 | ) | $ | 55 |
December 31, 2012 | December 31, 2011 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 888 | $ | 1,221 | |||
Accounts receivable—trade | 73 | 107 | |||||
Receivables from affiliates | 8 | 4 | |||||
Inventory | 175 | 169 | |||||
Derivative assets | 53 | 40 | |||||
Restricted cash and cash equivalents | 11 | 103 | |||||
Margin and collateral deposits | 61 | 41 | |||||
Prepaid expenses and other | 54 | 49 | |||||
Assets of discontinued operations | — | 207 | |||||
Total current assets | 1,323 | 1,941 | |||||
Investments in Unconsolidated Affiliates | 534 | 523 | |||||
Property, Plant and Equipment, less accumulated depreciation of $1,431 and $1,295 at respective dates | 4,516 | 4,472 | |||||
Other Assets | |||||||
Deferred financing costs | 44 | 71 | |||||
Long-term derivative assets | 37 | 62 | |||||
Restricted deposits | 102 | 22 | |||||
Rent payments in excess of levelized rent expense under plant operating leases | 836 | 760 | |||||
Deferred taxes | — | 205 | |||||
Other long-term assets | 128 | 222 | |||||
Total other assets | 1,147 | 1,342 | |||||
Assets of Discontinued Operations | — | 45 | |||||
Total Assets | $ | 7,520 | $ | 8,323 |
December 31, 2012 | December 31, 2011 | ||||||
Liabilities and Shareholder's Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 29 | $ | 78 | |||
Payables to affiliates | 34 | 187 | |||||
Accrued liabilities and other | 67 | 163 | |||||
Derivative liabilities | — | 1 | |||||
Interest payable | 1 | 33 | |||||
Deferred taxes | — | 2 | |||||
Current portion of long-term debt | 307 | 57 | |||||
Short-term debt | 382 | — | |||||
Liabilities of discontinued operations | — | 27 | |||||
Total current liabilities | 820 | 548 | |||||
Liabilities subject to compromise | 3,959 | — | |||||
Long-term debt net of current portion | 749 | 4,855 | |||||
Deferred taxes and tax credits | 81 | — | |||||
Deferred revenues | 533 | 530 | |||||
Long-term derivative liabilities | 118 | 90 | |||||
Other long-term liabilities | 528 | 627 | |||||
Liabilities of discontinued operations | — | 9 | |||||
Total Liabilities | 6,788 | 6,659 | |||||
Commitments and Contingencies (Notes 5, 6, 9 and 10) | |||||||
Equity | |||||||
Common stock, par value $0.01 per share (10,000 shares authorized; 100 shares issued and outstanding at each date) | 64 | 64 | |||||
Additional paid-in capital | 1,095 | 1,327 | |||||
Retained earnings (deficit) | (577 | ) | 365 | ||||
Accumulated other comprehensive loss | (138 | ) | (94 | ) | |||
Total Edison Mission Energy common shareholder's equity | 444 | 1,662 | |||||
Noncontrolling Interests | 288 | 2 | |||||
Total Equity | 732 | 1,664 | |||||
Total Liabilities and Equity | $ | 7,520 | $ | 8,323 |
Edison Mission Energy Shareholder's Equity | |||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Non- controlling Interests | Total Equity | ||||||||||||||||||
Balance at December 31, 2009 | $ | 64 | $ | 1,339 | $ | 1,280 | $ | 78 | $ | 76 | $ | 2,837 | |||||||||||
Impact of consolidation and deconsolidation of variable interest entities1 | — | — | 10 | — | (71 | ) | (61 | ) | |||||||||||||||
Net income (loss) | — | — | 164 | — | (1 | ) | 163 | ||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (109 | ) | — | (109 | ) | |||||||||||||||
Payments to Edison International (EIX) for stock purchases related to stock-based compensation | — | — | (6 | ) | — | — | (6 | ) | |||||||||||||||
Excess tax benefits related to stock option exercises | — | 1 | — | — | — | 1 | |||||||||||||||||
Other stock transactions, net | — | 6 | — | — | — | 6 | |||||||||||||||||
Purchase of noncontrolling interests | — | (10 | ) | — | — | — | (10 | ) | |||||||||||||||
Balance at December 31, 2010 | 64 | 1,336 | 1,448 | (31 | ) | 4 | 2,821 | ||||||||||||||||
Net income (loss) | — | — | (1,078 | ) | — | (1 | ) | (1,079 | ) | ||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (63 | ) | — | (63 | ) | |||||||||||||||
Payments to EIX for stock purchases related to stock-based compensation | — | — | (5 | ) | — | — | (5 | ) | |||||||||||||||
Excess tax benefits related to stock option exercises | — | 2 | — | — | — | 2 | |||||||||||||||||
Other stock transactions, net | — | 4 | — | — | — | 4 | |||||||||||||||||
Purchase of noncontrolling interests | — | (15 | ) | — | — | (1 | ) | (16 | ) | ||||||||||||||
Balance at December 31, 2011 | 64 | 1,327 | 365 | (94 | ) | 2 | 1,664 | ||||||||||||||||
Net income (loss) | — | — | (925 | ) | — | 16 | (909 | ) | |||||||||||||||
Other comprehensive loss, net of tax | — | — | — | (44 | ) | — | (44 | ) | |||||||||||||||
Payments to EIX for stock purchases related to stock-based compensation | — | — | (17 | ) | — | — | (17 | ) | |||||||||||||||
Non-cash distribution to EIX4 | — | (222 | ) | — | — | — | (222 | ) | |||||||||||||||
Excess tax benefits related to stock option exercises | — | 5 | — | — | — | 5 | |||||||||||||||||
Other stock transactions, net | — | 6 | — | — | — | 6 | |||||||||||||||||
Contributions from noncontrolling interests2 | — | — | — | — | 288 | 288 | |||||||||||||||||
Distributions to noncontrolling interests | — | — | — | — | (18 | ) | (18 | ) | |||||||||||||||
Transfers of assets to Capistrano Wind Partners3 | — | (21 | ) | — | — | — | (21 | ) | |||||||||||||||
Balance at December 31, 2012 | $ | 64 | $ | 1,095 | $ | (577 | ) | $ | (138 | ) | $ | 288 | $ | 732 |
1 | Effective January 1, 2010, EME adopted new accounting guidance issued by the FASB related to the consolidation of VIEs. As a result of this guidance, EME prospectively consolidated a 50% interest in American Bituminous Power Partners, L.P. (Ambit) and deconsolidated the Elkhorn Ridge and San Juan Mesa wind projects. The impact of adopting this guidance resulted in a cumulative effect adjustment that increased retained earnings by $10 million. |
2 | Funds contribution by third-party investors related to the Capistrano Wind equity capital raise are reported in noncontrolling interest. For further information, see Note 3—Variable Interest Entities—Projects or Entities that are Consolidated—Capistrano Wind Equity Capital. |
3 | Additional paid in capital was reduced by $21 million due to a new tax basis in the assets transferred to Capistrano Wind Partners. For further information, see Note 3—Variable Interest Entities—Projects or Entities that are Consolidated—Capistrano Wind Equity Capital. |
4 | During the fourth quarter of 2012, EME recorded a non-cash distribution to EIX related to the tax-allocation agreement. See Note 7—Income Taxes—EME—Current and Deferred Taxes. |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Cash Flows From Operating Activities | |||||||||||
Net (loss) income | $ | (909 | ) | $ | (1,079 | ) | $ | 163 | |||
Adjustments to reconcile (loss) income to net cash provided by operating activities: | |||||||||||
Non-cash reorganization items | 23 | — | — | ||||||||
Equity in income from unconsolidated affiliates | (46 | ) | (85 | ) | (104 | ) | |||||
Distributions from unconsolidated affiliates | 24 | 82 | 91 | ||||||||
Depreciation and amortization | 292 | 330 | 260 | ||||||||
Deferred taxes and tax credits | 162 | (903 | ) | 162 | |||||||
Loss on disposal and asset impairments | 117 | 1,738 | 45 | ||||||||
Proceeds from US Treasury Grants | 44 | 388 | 92 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
(Increase) decrease in margin and collateral deposits | (20 | ) | 14 | 60 | |||||||
Decrease (increase) in receivables | 30 | 251 | (65 | ) | |||||||
Increase in inventory | (6 | ) | (42 | ) | (17 | ) | |||||
(Increase) decrease in prepaid expenses and other | (9 | ) | (9 | ) | 7 | ||||||
Decrease (increase) in restricted cash and cash equivalents | (2 | ) | (4 | ) | 68 | ||||||
Increase in rent payments in excess of levelized rent expense | (76 | ) | (76 | ) | (95 | ) | |||||
Increase (decrease) in payables and other current liabilities | 5 | 172 | (141 | ) | |||||||
Increase in derivative assets and liabilities | (26 | ) | — | (34 | ) | ||||||
Increase in other operating—assets | (2 | ) | (73 | ) | (12 | ) | |||||
(Decrease) increase in other operating—liabilities | (68 | ) | (44 | ) | 97 | ||||||
Operating cash flows from continuing operations | (467 | ) | 660 | 577 | |||||||
Operating cash flows from discontinued operations, net | (46 | ) | (34 | ) | 29 | ||||||
Net cash (used in) provided by operating activities | (513 | ) | 626 | 606 | |||||||
Cash Flows From Financing Activities | |||||||||||
Borrowings under long-term debt | 79 | 481 | 211 | ||||||||
Payments on debt | (56 | ) | (107 | ) | (48 | ) | |||||
Borrowings under short-term debt | 195 | 32 | 96 | ||||||||
Borrowing held in escrow pending completion of project construction | 97 | (97 | ) | — | |||||||
Cash contributions from noncontrolling interests | 288 | — | — | ||||||||
Cash dividends to noncontrolling interests | (18 | ) | — | — | |||||||
Payments to affiliates related to stock-based awards | (17 | ) | (8 | ) | (6 | ) | |||||
Excess tax benefits related to stock-based exercises | 5 | 2 | 1 | ||||||||
Financing costs | (9 | ) | (26 | ) | (19 | ) | |||||
Net cash provided by financing activities from continuing operations | 564 | 277 | 235 | ||||||||
Cash Flows From Investing Activities | |||||||||||
Capital expenditures | (355 | ) | (672 | ) | (556 | ) | |||||
Proceeds from return of capital and loan repayments and sale of assets | 14 | 55 | 34 | ||||||||
Proceeds from settlement of insurance claims | 2 | — | — | ||||||||
Purchase of interest of acquired companies | — | (3 | ) | (4 | ) | ||||||
Investments in and loans to unconsolidated affiliates | — | (10 | ) | (7 | ) | ||||||
Maturities of short-term investments | — | — | 1 | ||||||||
Increase in restricted deposits and restricted cash and cash equivalents | (83 | ) | (4 | ) | (5 | ) | |||||
Investments in other assets | (8 | ) | (30 | ) | (7 | ) | |||||
Investing cash flows from continuing operations | (430 | ) | (664 | ) | (544 | ) | |||||
Investing cash flows from discontinued operations, net | (31 | ) | (14 | ) | (18 | ) | |||||
Net cash used in investing activities | (461 | ) | (678 | ) | (562 | ) | |||||
Net (decrease) increase in cash and cash equivalents from continuing operations | (333 | ) | 273 | 268 | |||||||
Cash and cash equivalents at beginning of period from continuing operations | 1,221 | 948 | 680 | ||||||||
Cash and cash equivalents at end of period from continuing operations | 888 | 1,221 | 948 | ||||||||
Net (decrease) increase in cash and cash equivalents from discontinued operations | (77 | ) | (48 | ) | 11 | ||||||
Cash and cash equivalents at beginning of period from discontinued operations | 79 | 127 | 116 | ||||||||
Cash and cash equivalents at end of period from discontinued operations | $ | 2 | $ | 79 | $ | 127 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Operating Revenues from Marketing Affiliate | $ | 892 | $ | 1,286 | $ | 1,479 | |||||
Operating Expenses | |||||||||||
Fuel | 582 | 512 | 519 | ||||||||
Plant operations | 369 | 457 | 447 | ||||||||
Depreciation and amortization | 128 | 158 | 155 | ||||||||
Asset impairments and other charges | 14 | 653 | 48 | ||||||||
Administrative and general | 18 | 22 | 22 | ||||||||
Impairment of loan to affiliate (Note 15) | 1,378 | — | — | ||||||||
Total operating expenses | 2,489 | 1,802 | 1,191 | ||||||||
Operating income (loss) | (1,597 | ) | (516 | ) | 288 | ||||||
Other Income (Expense) | |||||||||||
Interest and other income | 110 | 114 | 117 | ||||||||
Interest expense | (33 | ) | (40 | ) | (48 | ) | |||||
Total other income | 77 | 74 | 69 | ||||||||
Income (loss) before reorganization items and income taxes | (1,520 | ) | (442 | ) | 357 | ||||||
Reorganization items | 6 | — | — | ||||||||
Provision (benefit) for income taxes | (62 | ) | (172 | ) | 142 | ||||||
Net Income (Loss) | $ | (1,464 | ) | $ | (270 | ) | $ | 215 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Net Income (Loss) | $ | (1,464 | ) | $ | (270 | ) | $ | 215 | |||
Other comprehensive income (loss), net of tax | |||||||||||
Valuation allowance on deferred tax asset | (12 | ) | — | — | |||||||
Pension and postretirement benefits other than pensions: | |||||||||||
Prior service adjustment, net of tax | — | — | (6 | ) | |||||||
Net gain (loss) adjustment, net of tax expense (benefit) of $0, $(8) and $(4) for 2012, 2011 and 2010, respectively | (1 | ) | (13 | ) | (6 | ) | |||||
Amortization of net loss and prior service adjustment included in expense, net of tax | 2 | 1 | — | ||||||||
Unrealized gains (losses) on derivatives qualified as cash flow hedges: | |||||||||||
Unrealized holding gains arising during period, net of income tax expense of $3, $15 and $29 for 2012, 2011 and 2010, respectively | 4 | 23 | 45 | ||||||||
Reclassification adjustments included in net income, net of income tax benefit of $17, $16 and $58 for 2012, 2011 and 2010, respectively | (26 | ) | (25 | ) | (90 | ) | |||||
Other comprehensive loss, net of tax | (33 | ) | (14 | ) | (57 | ) | |||||
Comprehensive Income (Loss) | $ | (1,497 | ) | $ | (284 | ) | $ | 158 |
December 31, | |||||||
2012 | 2011 | ||||||
Assets | |||||||
Current Assets | |||||||
Cash and cash equivalents | $ | 95 | $ | 213 | |||
Due from affiliates, net (Note 15) | 40 | 109 | |||||
Inventory | 165 | 159 | |||||
Interest receivable from affiliate, net (Note 15) | — | 55 | |||||
Derivative assets | 2 | 43 | |||||
Deferred taxes | — | 14 | |||||
Other current assets | 20 | 17 | |||||
Total current assets | 322 | 610 | |||||
Property, Plant and Equipment, less accumulated depreciation of $1,260 and $1,152 at respective dates | 2,078 | 2,185 | |||||
Notes receivable from affiliate, net (Note 15) | — | 1,323 | |||||
Long-term derivative assets | — | 1 | |||||
Deferred taxes | — | 42 | |||||
Other long-term assets | 28 | 29 | |||||
Total Assets | $ | 2,428 | $ | 4,190 | |||
Liabilities and Member's Equity | |||||||
Current Liabilities | |||||||
Accounts payable | $ | 10 | $ | 35 | |||
Accrued liabilities | 18 | 49 | |||||
Due to affiliates | 3 | 18 | |||||
Interest payable | 1 | 19 | |||||
Derivative liabilities | 3 | 2 | |||||
Current portion of lease financings | 6 | 116 | |||||
Total current liabilities | 41 | 239 | |||||
Liabilities subject to compromise | 529 | — | |||||
Lease financings, net of current portion | 2 | 439 | |||||
Benefit plans and other long-term liabilities | 190 | 243 | |||||
Total Liabilities | 762 | 921 | |||||
Commitments and Contingencies (Notes 6, 9 and 10) | |||||||
Member's Equity | |||||||
Membership interests, no par value (100 units authorized, issued and outstanding at each date) | — | — | |||||
Additional paid-in capital | 3,405 | 3,511 | |||||
Accumulated deficit | (1,689 | ) | (225 | ) | |||
Accumulated other comprehensive loss | (50 | ) | (17 | ) | |||
Total Member's Equity | 1,666 | 3,269 | |||||
Total Liabilities and Member's Equity | $ | 2,428 | $ | 4,190 |
Membership Interests | Additional Paid-in Capital | Accumulated Earnings (Deficit) | Accumulated Other Comprehensive Income (Loss) | Member's Equity | |||||||||||||||
Balance at December 31, 2009 | $ | — | $ | 3,511 | $ | 180 | $ | 54 | $ | 3,745 | |||||||||
Net income | — | — | 215 | — | 215 | ||||||||||||||
Other comprehensive loss | — | — | — | (57 | ) | (57 | ) | ||||||||||||
Cash distribution to parent | — | — | (125 | ) | — | (125 | ) | ||||||||||||
Balance at December 31, 2010 | — | 3,511 | 270 | (3 | ) | 3,778 | |||||||||||||
Net loss | — | — | (270 | ) | — | (270 | ) | ||||||||||||
Other comprehensive loss | — | — | — | (14 | ) | (14 | ) | ||||||||||||
Cash distribution to parent | — | — | (225 | ) | — | (225 | ) | ||||||||||||
Balance at December 31, 2011 | — | 3,511 | (225 | ) | (17 | ) | 3,269 | ||||||||||||
Net loss | — | — | (1,464 | ) | — | (1,464 | ) | ||||||||||||
Other comprehensive loss | — | — | — | (33 | ) | (33 | ) | ||||||||||||
Non-cash distribution to parent1 | — | (106 | ) | — | — | (106 | ) | ||||||||||||
Balance at December 31, 2012 | $ | — | $ | 3,405 | $ | (1,689 | ) | $ | (50 | ) | $ | 1,666 |
1 | During 2012, Midwest Generation recorded a non-cash distribution to its parent related to the tax-allocation agreement. See Note 7—Income Taxes—Midwest Generation—Current and Deferred Taxes. |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Cash Flows From Operating Activities | |||||||||||
Net (loss) income | $ | (1,464 | ) | $ | (270 | ) | $ | 215 | |||
Adjustments to reconcile (loss) income to net cash provided by operating activities: | |||||||||||
Non-cash reorganization items | 6 | — | — | ||||||||
Depreciation and amortization | 129 | 160 | 156 | ||||||||
Deferred taxes and tax credits | 54 | (145 | ) | (33 | ) | ||||||
Loss on disposal and asset impairments | 14 | 653 | 48 | ||||||||
Impairment of loan to affiliate | 1,378 | — | — | ||||||||
Other items | — | — | (3 | ) | |||||||
Changes in operating assets and liabilities: | |||||||||||
Decrease in due to/from affiliates | (64 | ) | 28 | 9 | |||||||
Increase in inventory | (6 | ) | (36 | ) | (15 | ) | |||||
Increase in other current assets | (3 | ) | (25 | ) | (2 | ) | |||||
Decrease in emission allowances | — | 2 | 9 | ||||||||
Decrease in accounts payable and other current liabilities | (34 | ) | (7 | ) | (3 | ) | |||||
Decrease in interest payable | (5 | ) | (4 | ) | (4 | ) | |||||
Decrease (increase) in derivative assets and liabilities | 6 | 1 | (20 | ) | |||||||
Increase in other operating - liabilities | 2 | 7 | 44 | ||||||||
Net cash provided by operating activities | 13 | 364 | 401 | ||||||||
Cash Flows From Financing Activities | |||||||||||
Cash distributions to parent | — | (225 | ) | (125 | ) | ||||||
Repayments of lease financing | (116 | ) | (109 | ) | (120 | ) | |||||
Net cash used in financing activities | (116 | ) | (334 | ) | (245 | ) | |||||
Cash Flows From Investing Activities | |||||||||||
Capital expenditures | (30 | ) | (103 | ) | (107 | ) | |||||
Proceeds from sale of assets | 3 | — | — | ||||||||
Proceeds from sale of emission allowances | — | — | 3 | ||||||||
Proceeds from settlement of insurance claims | 2 | — | 1 | ||||||||
Increase in restricted deposits and restricted cash and cash equivalents | (2 | ) | — | — | |||||||
Investments in other assets | — | (18 | ) | — | |||||||
Repayment of loan from affiliate | 12 | 9 | 5 | ||||||||
Net cash used in investing activities | (15 | ) | (112 | ) | (98 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (118 | ) | (82 | ) | 58 | ||||||
Cash and cash equivalents at beginning of period | 213 | 295 | 237 | ||||||||
Cash and cash equivalents at end of period | $ | 95 | $ | 213 | $ | 295 |
• | the Powerton, Joliet, Will County, and Waukegan coal-fired generating plants consisting of 4,314 MW; and |
• | the Fisk and Waukegan on-site, oil-fired generating peakers consisting of 305 MW. |
EME | Midwest Generation | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Coal, fuel oil and other raw materials | $ | 123 | $ | 120 | $ | 119 | $ | 117 | |||||||
Spare parts, materials and supplies | 52 | 49 | 46 | 42 | |||||||||||
Total inventory | $ | 175 | $ | 169 | $ | 165 | $ | 159 |
EME | Midwest Generation | ||
Power plant facilities | 2.75 to 35 years | 2.75 to 30 years | |
Leasehold improvements | Shorter of life of lease or estimated useful life | Shorter of life of lease or estimated useful life | |
Emission allowances | 25 to 33.75 years | 25 to 33.75 years | |
Equipment, furniture and fixtures | 3 to 10 years | 3 to 7 years | |
Plant and equipment under lease financing | not applicable | 30 to 33.75 years |
Joliet Unit 6 | 6 years | |
Joliet Units 7 and 81 | 18 years | |
Powerton Station1 | 21 years | |
Will County Station | 17 years |
1 | Represents leased facilities. The leases may be renewed based on criteria outlined in their respective agreements. |
EME | Midwest Generation | ||||||||||||||
December 31, | December 31, | ||||||||||||||
(in millions) | 2012 | 2011 | 2012 | 2011 | |||||||||||
Land | $ | 36 | $ | 36 | $ | 32 | $ | 32 | |||||||
Power plant facilities | 4,612 | 4,560 | $ | 1,293 | $ | 1,309 | |||||||||
Leasehold improvements | 4 | 4 | — | — | |||||||||||
Emission allowances | 672 | 672 | 639 | 639 | |||||||||||
Construction in progress1 | 495 | 366 | 28 | 8 | |||||||||||
Equipment, furniture and fixtures | 128 | 129 | 13 | 15 | |||||||||||
Plant and equipment under lease financing | — | — | 1,333 | 1,334 | |||||||||||
5,947 | 5,767 | 3,338 | 3,337 | ||||||||||||
Less accumulated depreciation and amortization | 1,431 | 1,295 | 1,260 | 1,152 | |||||||||||
Net property, plant and equipment | $ | 4,516 | $ | 4,472 | $ | 2,078 | $ | 2,185 |
1 | Included $466 million and $357 million at December 31, 2012 and 2011, respectively, for EME's new gas and wind projects under construction. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Beginning balance | $ | 70 | $ | 47 | $ | 38 | |||||
Accretion expense | 5 | 5 | 2 | ||||||||
Revisions | — | (1 | ) | — | |||||||
Liabilities added | 5 | 19 | 8 | ||||||||
Transfers out1 | — | — | (1 | ) | |||||||
Ending balance | $ | 80 | $ | 70 | $ | 47 |
1 | Transfers out represents the deconsolidation of two wind projects and consolidation of one coal project effective January 1, 2010. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Beginning balance | $ | 2 | $ | 2 | $ | 2 | |||||
Accretion expense | — | 1 | — | ||||||||
Revisions | — | (1 | ) | — | |||||||
Ending balance | $ | 2 | $ | 2 | $ | 2 |
(in millions) | December 31, 2012 | December 31, 2011 | |||||
Current assets | $ | 74 | $ | 36 | |||
Net property, plant and equipment | 1,117 | 675 | |||||
Other long-term assets | 90 | 5 | |||||
Total assets | $ | 1,281 | $ | 716 | |||
Current liabilities | $ | 50 | $ | 28 | |||
Long-term debt net of current portion | 186 | 57 | |||||
Deferred revenues | 156 | 69 | |||||
Long-term derivative liabilities | 23 | — | |||||
Other long-term liabilities | 40 | 22 | |||||
Total liabilities | $ | 455 | $ | 176 | |||
Noncontrolling interests | $ | 288 | $ | 2 |
December 31, 2012 | |||||||
(in millions) | Investment | Maximum Exposure | |||||
Natural gas-fired projects | $ | 331 | $ | 331 | |||
Wind projects | 203 | 203 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Revenues | $ | 607 | $ | 769 | $ | 828 | |||||
Expenses | 519 | 601 | 653 | ||||||||
Net income | $ | 88 | $ | 168 | $ | 175 |
December 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Current assets | $ | 337 | $ | 289 | |||
Noncurrent assets | 711 | 758 | |||||
Total assets | $ | 1,048 | $ | 1,047 | |||
Current liabilities | $ | 78 | $ | 103 | |||
Noncurrent liabilities | 82 | 88 | |||||
Equity | 888 | 856 | |||||
Total liabilities and equity | $ | 1,048 | $ | 1,047 |
Unconsolidated Affiliates | Location | Investment at December 31, 2012 (in millions) | Ownership Interest at December 31, 2012 | Operating Status | ||||||
San Juan Mesa | Elida, NM | $ | 80 | 75% | Operating wind-powered facility | |||||
Elkhorn Ridge | Bloomfield, NE | 81 | 67% | Operating wind-powered facility | ||||||
Sunrise | Fellows, CA | 181 | 50% | Operating gas-fired facility | ||||||
Sycamore | Bakersfield, CA | 40 | 50% | Operating cogeneration facility | ||||||
Watson | Carson, CA | 40 | 49% | Operating cogeneration facility |
December 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Investments in Unconsolidated Affiliates | |||||||
Equity investments | $ | 527 | $ | 515 | |||
Cost investments | 7 | 8 | |||||
Total | $ | 534 | $ | 523 |
December 31, 2012 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||
Assets at Fair Value | |||||||||||||||||||
Money market funds2 | $ | 615 | $ | — | $ | — | $ | — | $ | 615 | |||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 41 | $ | 52 | $ | (3 | ) | $ | 90 | ||||||||
Total assets | $ | 615 | $ | 41 | $ | 52 | $ | (3 | ) | $ | 705 | ||||||||
Liabilities at Fair Value | |||||||||||||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 6 | $ | 1 | $ | (7 | ) | $ | — | ||||||||
Natural gas | 3 | — | — | (3 | ) | — | |||||||||||||
Interest rate contracts | — | 118 | — | — | 118 | ||||||||||||||
Total liabilities | $ | 3 | $ | 124 | $ | 1 | $ | (10 | ) | $ | 118 |
December 31, 2011 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting and Collateral1 | Total | ||||||||||||||
Assets at Fair Value | |||||||||||||||||||
Money market funds2 | $ | 1,179 | $ | — | $ | — | $ | — | $ | 1,179 | |||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 65 | $ | 95 | $ | (58 | ) | $ | 102 | ||||||||
Natural gas | 4 | — | — | (4 | ) | — | |||||||||||||
Fuel oil | 4 | — | — | (4 | ) | — | |||||||||||||
Total assets | $ | 1,187 | $ | 65 | $ | 95 | $ | (66 | ) | $ | 1,281 | ||||||||
Liabilities at Fair Value | |||||||||||||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 5 | $ | 12 | $ | (16 | ) | $ | 1 | ||||||||
Interest rate contracts | — | 90 | — | — | 90 | ||||||||||||||
Total liabilities | $ | — | $ | 95 | $ | 12 | $ | (16 | ) | $ | 91 |
1 | Represents cash collateral and the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. |
2 | Money market funds are included in cash and cash equivalents and in restricted cash and cash equivalents on EME's consolidated balance sheets. |
(in millions) | 2012 | 2011 | |||||
Fair value of net assets at beginning of period | $ | 83 | $ | 91 | |||
Total realized/unrealized gains (losses) | |||||||
Included in earnings1 | 9 | (17 | ) | ||||
Included in accumulated other comprehensive loss2 | 1 | 1 | |||||
Purchases | 58 | 34 | |||||
Settlements | (46 | ) | (24 | ) | |||
Transfers out of Level 3 | (54 | ) | (2 | ) | |||
Fair value of net assets at end of period | $ | 51 | $ | 83 | |||
Change during the period in unrealized gains (losses) related to assets and liabilities held at end of period1 | $ | 22 | $ | 17 |
1 | Reported in operating revenues on EME's consolidated statements of operations. |
2 | Included in reclassification adjustments in EME's consolidated statement of other comprehensive loss. |
December 31, 2012 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||||
Assets at Fair Value | |||||||||||||||||||
Money market funds2 | $ | 75 | $ | — | $ | — | $ | — | $ | 75 | |||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||
Total assets | $ | 75 | $ | 2 | $ | — | $ | — | $ | 77 | |||||||||
Liabilities at Fair Value | |||||||||||||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 3 | $ | — | $ | — | $ | 3 | |||||||||
Total liabilities | $ | — | $ | 3 | $ | — | $ | — | $ | 3 | |||||||||
December 31, 2011 | |||||||||||||||||||
(in millions) | Level 1 | Level 2 | Level 3 | Netting1 | Total | ||||||||||||||
Assets at Fair Value | |||||||||||||||||||
Money market funds2 | $ | 195 | $ | — | $ | — | $ | — | $ | 195 | |||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 40 | $ | — | $ | 4 | $ | 44 | |||||||||
Fuel oil | 4 | — | — | (4 | ) | — | |||||||||||||
Total assets | $ | 199 | $ | 40 | $ | — | $ | — | $ | 239 | |||||||||
Liabilities at Fair Value | |||||||||||||||||||
Derivative contracts | |||||||||||||||||||
Electricity | $ | — | $ | 2 | $ | — | $ | — | $ | 2 | |||||||||
Total liabilities | $ | — | $ | 2 | $ | — | $ | — | $ | 2 |
1 | Represents the impact of netting across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level. |
2 | Money market funds are included in cash and cash equivalents on Midwest Generation's consolidated balance sheets. |
Fair Value (in millions) | Valuation Techniques | Significant Unobservable Input | Range | Weighted Average | ||||||||||
Assets | Liabilities | |||||||||||||
Electricity | ||||||||||||||
Congestion contracts | $ | 71 | $ | 20 | Latest auction pricing | Congestion prices | $(8.93) - $18.03 | $0.19 | ||||||
Power contracts | 2 | 2 | Discounted cash flows | Power prices | $22.54 - $48.85 | $39.62 | ||||||||
Netting | (21 | ) | (21 | ) | ||||||||||
Total | $ | 52 | $ | 1 |
December 31, 2012 | December 31, 2011 | ||||||||||||||
(in millions) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||
Long-term debt, including current portion | $ | 1,056 | $ | 1,057 | $ | 4,912 | $ | 3,716 |
December 31, | |||||||||||||
(in millions) | Current Rate1 | Effective Interest Rate2 | Maturity Date | 2012 | 2011 | ||||||||
Recourse | |||||||||||||
EME (parent only) | |||||||||||||
Senior Notes, net3 | |||||||||||||
Series A Notes | 7.50% Fixed | 7.50% | June 2013 | $ | — | $ | 500 | ||||||
Series B Notes | 7.75% Fixed | 7.75% | June 2016 | — | 500 | ||||||||
Tranche A Notes | 7.00% Fixed | 7.00% | May 2017 | — | 1,200 | ||||||||
Tranche B Notes | 7.20% Fixed | 7.20% | May 2019 | — | 800 | ||||||||
Tranche C Notes | 7.63% Fixed | 7.63% | May 2027 | — | 700 | ||||||||
Nonrecourse4 | |||||||||||||
Walnut Creek Energy5 Construction Loan | 2.46% LIBOR+2.25% | 2.79% | June 2013 | 330 | 138 | ||||||||
WCEP Holdings, LLC5 Construction Loan | 4.21% LIBOR+4.0% | 4.50% | June 2013 | 52 | 49 | ||||||||
Big Sky Wind, LLC Vendor financing loan | 4.14% LIBOR+3.5% | 4.14% | October 2014 | 222 | 211 | ||||||||
High Lonesome Mesa, LLC6 Bonds | 6.85% Fixed | 6.85% | November 2017 | 69 | 72 | ||||||||
American Bituminous Power Partners, L.P.7 Bonds | 0.14% Fixed | 0.14% | October 2017 | 46 | 55 | ||||||||
Viento Funding II, Inc.6 Term Loan | 3.27% LIBOR+2.75% | 5.79% | December 2020 | 191 | 207 | ||||||||
Tapestry Wind, LLC Term Loan | 2.82% LIBOR+2.5% | 4.52% | December 2021 | 210 | 214 | ||||||||
Cedro Hill Wind, LLC Term Loan | 3.32% LIBOR+3.0% | 6.89% | December 2025 | 125 | 131 | ||||||||
Laredo Ridge Term Loan | 3.06% LIBOR+2.75% | 5.90% | March 2026 | 71 | 74 | ||||||||
Crofton Bluffs Wind, LLC Term Loan | 3.19% LIBOR+2.88% | 3.61% | December 2027 | 27 | — | ||||||||
Broken Bow Wind, LLC Term Loan | 3.19% LIBOR+2.88% | 3.65% | December 2027 | 52 | — | ||||||||
Others | Various | Various | Various | 43 | 61 | ||||||||
Total debt | $ | 1,438 | $ | 4,912 | |||||||||
Less: Short-term debt | 382 | — | |||||||||||
Total long-term debt | 1,056 | 4,912 | |||||||||||
Less: Current maturities of long-term debt | 307 | 57 | |||||||||||
Long-term debt, net of current portion | $ | 749 | $ | 4,855 |
1 | London Interbank Offered Rate (LIBOR) |
2 | The effective rate at which interest expense is reflected in the financial statements after the consideration of the current rate of debt and any amounts subject to interest rate swaps. For further discussion, see Note 6—Derivative Instruments and Hedging Activities—Interest Rate Risk Management. |
3 | With the commencement of the Chapter 11 Cases, the senior notes were reclassified to LSTC. See Note 16—Restructuring Activities. |
4 | Payment obligations are generally secured by pledges of the borrower's direct and indirect ownership interests in the projects, project agreements and reserve accounts, if applicable. |
5 | Reclassified to short-term debt as the construction loans are expected to convert to 10-year amortizing term loans no later than 2013. For further discussion, see "Walnut Creek" below. |
6 | Included as part of current maturities of long-term debt as of December 31, 2012 due to potential defaults arising from the Chapter 11 Cases and the associated execution of short-term forbearance agreement with the lenders. For further discussion, see below "Chapter 11 Cases—Viento II Financing" and "Chapter 11 Cases—High Lonesome." |
7 | Principal payments are due annually through October 1, 2017. Interest rates are reset weekly based on current bond yields for similar securities. At December 31, 2012, the outstanding balance is supported by a letter of credit. |
Debt Service Coverage Ratio1 | Covenant Level | Actual Performance as of December 31, 2012 | ||||
High Lonesome2 | 1.20 to 1.00 | 1.37 | 3 | |||
Viento II2 | 1.20 to 1.00 | 2.49 | ||||
Tapestry Wind | 1.20 to 1.00 | 1.34 | ||||
Laredo Ridge | 1.20 to 1.00 | 1.73 | ||||
Cedro Hill | 1.20 to 1.00 | 1.53 | ||||
Broken Bow4 | 1.20 to 1.00 | N/A | ||||
Crofton Bluffs4 | 1.20 to 1.00 | N/A | ||||
Required reserve account balance5 | ||||||
Ambit | Twenty million | Four million |
1 | The Debt Service Coverage Ratio is typically calculated over a 12-month historical period and is individually defined for each borrowing in the applicable financing agreement, credit agreement, trust indenture, or other document governing the financing requirements. |
2 | Subject to forbearance agreement as discussed in Chapter 11 Cases above. |
3 | Calculated at October 31, 2012, the last payment date. |
4 | Commercial operations started in the fourth quarter of 2012. |
5 | Ambit is required to maintain funded reserve accounts primarily for debt servicing and maintenance costs. The underfunded reserve does not create an event of default under the loan but does restrict distributions from Ambit. |
December 31, 2012 | ||||||||||||||||||||
Cash Flow Hedges | Economic Hedges | Trading Activities | ||||||||||||||||||
Commodity | Instrument | Classification | Unit of Measure | Midwest Generation | Other EME Sub- sidiaries | EME | Midwest Generation | Other EME Sub- sidiaries | EME | Other EME Sub- sidiaries | ||||||||||
Electricity | Forwards/Futures | Sales, net | GWh1 | 3,615 | — | 3,615 | 1 | 47 | 48 | 2 | — | |||||||||
Electricity | Forwards/Futures | Purchases, net | GWh | — | — | — | — | — | — | 492 | ||||||||||
Electricity | Capacity | Purchases, net | GW-Day1 | — | — | — | — | — | — | 60 | 3 | |||||||||
Electricity | Congestion | Purchases, net | GWh | — | — | — | — | 263 | 263 | 4 | 268,529 | 4 | ||||||||
Natural gas | Forwards/Futures | Purchases, net | bcf1 | — | — | — | — | — | — | 9.9 |
December 31, 2011 | |||||||||||||||||||||
Cash Flow Hedges | Economic Hedges | Trading Activities | |||||||||||||||||||
Commodity | Instrument | Classification | Unit of Measure | Midwest Generation | Other EME Sub- sidiaries | EME | Midwest Generation | Other EME Sub- sidiaries | EME | Other EME Sub- sidiaries | |||||||||||
Electricity | Forwards/Futures | Sales, net | GWh | 7,978 | 342 | 8,320 | 227 | 108 | 335 | 2 | — | ||||||||||
Electricity | Forwards/Futures | Purchases, net | GWh | — | — | — | — | — | — | 2,926 | |||||||||||
Electricity | Capacity | Sales, net | GW-Day | 61 | — | 61 | 3 | — | — | — | — | ||||||||||
Electricity | Capacity | Purchases, net | GW-Day | — | — | — | — | — | — | 184 | 3 | ||||||||||
Electricity | Congestion | Purchases, net | GWh | — | — | — | 608 | 653 | 1,261 | 4 | 230,798 | 4 | |||||||||
Natural gas | Forwards/Futures | Sales, net | bcf | — | — | — | — | — | — | 0.2 | |||||||||||
Fuel oil | Forwards/Futures | Purchases, net | barrels | — | — | — | 240,000 | — | 240,000 | — |
1 | gigawatt-hours (GWh); gigawatts-day (GW-Day); billion cubic feet (bcf). |
2 | These positions adjust financial and physical positions, or day-ahead and real-time positions, to reduce costs or increase gross margin. The net sales positions of these categories are primarily related to hedge transactions that are not designated as cash flow hedges. |
3 | Hedge transactions for capacity result from bilateral trades. Capacity sold in the PJM Interconnection, LLC Reliability Pricing Model (PJM RPM) auction is not accounted for as a derivative. |
4 | Congestion contracts include financial transmission rights, transmission congestion contracts or congestion revenue rights. These positions are similar to a swap, where the buyer is entitled to receive a stream of revenues (or charges) based on the hourly day-ahead price differences between two locations. |
December 31, 2012 | ||||||
Project Financing | Effective Date | Expiration Date | Fixed Swap Rate Paid | Notional Value (in millions) | ||
Viento Funding II | June 2009 | June 2016 | 3.18% | $ | 65 | |
Viento Funding II | March 2011 | December 2020 | 3.42% | 108 | ||
Cedro Hill | December 2010 | December 2025 | 4.29% | 112 | ||
Laredo Ridge | March 2011 | March 2026 | 3.46% | 64 | ||
WCEP Holdings | July 2011 | May 2013 | 0.79% | 26 | ||
Walnut Creek Energy | November 2011 | May 2013 | 0.81% | 181 | ||
Tapestry | December 2011 | December 2021 | 2.21% | 189 | ||
Broken Bow 1 | December 2012 | December 2013 | 0.83% | 47 | ||
Crofton Bluffs 1 | December 2012 | December 2013 | 0.78% | 24 | ||
$ | 816 | |||||
Forward Starting Swaps | ||||||
Walnut Creek Energy | June 2013 | May 2023 | 3.54% | $ | 398 | |
WCEP Holdings | June 2013 | May 2023 | 4.00% | 48 | ||
Broken Bow | December 2013 | December 2027 | 2.96% | 45 | ||
Crofton Bluffs | December 2013 | December 2027 | 2.75% | 23 | ||
Tapestry | December 2021 | December 2029 | 3.57% | 60 | ||
$ | 574 |
1 | The construction loan converted to a term loan in December 2012 and the swap became effective on December 31, 2012. For additional information, see Note 5—Debt and Credit Agreements. |
December 31, 2011 | ||||||
Project Financing | Effective Date | Expiration Date | Fixed Swap Rate Paid | Notional Value (in millions) | ||
Viento Funding II | June 2009 | June 2016 | 3.18% | $ | 79 | |
Viento Funding II | March 2011 | December 2020 | 3.42% | 109 | ||
Cedro Hill | December 2010 | December 2025 | 4.29% | 118 | ||
Laredo Ridge | March 2011 | March 2026 | 3.46% | 67 | ||
WCEP Holdings | July 2011 | May 2013 | 0.79% | 25 | ||
Walnut Creek Energy | November 2011 | May 2013 | 0.81% | 53 | ||
Tapestry | December 2011 | December 2021 | 2.21% | 193 | ||
$ | 644 | |||||
Forward Starting Swaps | ||||||
Walnut Creek Energy | June 2013 | May 2023 | 3.54% | $ | 398 | |
WCEP Holdings | June 2013 | May 2023 | 4.00% | 48 | ||
Tapestry | December 2021 | December 2029 | 3.57% | 60 | ||
$ | 506 |
December 31, 2012 | |||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net Assets (Liabilities) | |||||||||||||||||||||||||
(in millions) | Short-term | Long-term | Subtotal | Short-term | Long-term | Subtotal | |||||||||||||||||||||
Non-trading activities | |||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||
Commodity contracts | $ | 3 | $ | — | $ | 3 | $ | 5 | $ | — | $ | 5 | $ | (2 | ) | ||||||||||||
Interest rate contracts | — | — | — | — | 118 | 118 | (118 | ) | |||||||||||||||||||
Economic hedges | 9 | — | 9 | 8 | — | 8 | 1 | ||||||||||||||||||||
Trading activities | 192 | 69 | 261 | 145 | 32 | 177 | 84 | ||||||||||||||||||||
204 | 69 | 273 | 158 | 150 | 308 | (35 | ) | ||||||||||||||||||||
Netting and collateral received1 | (151 | ) | (32 | ) | (183 | ) | (158 | ) | (32 | ) | (190 | ) | 7 | ||||||||||||||
Total | $ | 53 | $ | 37 | $ | 90 | $ | — | $ | 118 | $ | 118 | $ | (28 | ) |
December 31, 2011 | |||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Net Assets (Liabilities) | |||||||||||||||||||||||||
(in millions) | Short-term | Long-term | Subtotal | Short-term | Long-term | Subtotal | |||||||||||||||||||||
Non-trading activities | |||||||||||||||||||||||||||
Cash flow hedges | |||||||||||||||||||||||||||
Commodity contracts | $ | 40 | $ | 1 | $ | 41 | $ | 2 | $ | — | $ | 2 | $ | 39 | |||||||||||||
Interest rate contracts | — | — | — | — | 90 | 90 | (90 | ) | |||||||||||||||||||
Economic hedges | 24 | — | 24 | 20 | — | 20 | 4 | ||||||||||||||||||||
Trading activities | 276 | 142 | 418 | 232 | 79 | 311 | 107 | ||||||||||||||||||||
340 | 143 | 483 | 254 | 169 | 423 | 60 | |||||||||||||||||||||
Netting and collateral received1 | (300 | ) | (81 | ) | (381 | ) | (253 | ) | (79 | ) | (332 | ) | (49 | ) | |||||||||||||
Total | $ | 40 | $ | 62 | $ | 102 | $ | 1 | $ | 90 | $ | 91 | $ | 11 |
1 | Netting of derivative receivables and derivative payables and the related cash collateral received and paid is permitted when a legally enforceable master netting agreement exists with a derivative counterparty. |
December 31, 2012 | |||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||
(in millions) | Short-term | Long-term | Subtotal | Short-term | Long-term | Subtotal | Net Assets | ||||||||||||||||||||
Cash flow hedges | $ | 3 | $ | — | $ | 3 | $ | 5 | $ | — | $ | 5 | $ | (2 | ) | ||||||||||||
Economic hedges | 9 | — | 9 | 8 | — | 8 | 1 | ||||||||||||||||||||
12 | — | 12 | 13 | — | 13 | (1 | ) | ||||||||||||||||||||
Netting1 | (10 | ) | — | (10 | ) | (10 | ) | — | (10 | ) | — | ||||||||||||||||
Total | $ | 2 | $ | — | $ | 2 | $ | 3 | $ | — | $ | 3 | $ | (1 | ) | ||||||||||||
December 31, 2011 | |||||||||||||||||||||||||||
Cash flow hedges | $ | 39 | $ | 1 | $ | 40 | $ | 2 | $ | — | $ | 2 | $ | 38 | |||||||||||||
Economic hedges | 24 | — | 24 | 20 | — | 20 | 4 | ||||||||||||||||||||
63 | 1 | 64 | 22 | — | 22 | 42 | |||||||||||||||||||||
Netting1 | (20 | ) | — | (20 | ) | (20 | ) | — | (20 | ) | — | ||||||||||||||||
Total | $ | 43 | $ | 1 | $ | 44 | $ | 2 | $ | — | $ | 2 | $ | 42 |
1 | Netting of derivative receivables and derivative payables is permitted when a legally enforceable master netting agreement exists with a derivative counterparty. |
Cash Flow Hedge Activity1 | |||||||||||||||||
Years Ended December 31, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
(in millions) | Commodity Contracts | Interest Rate Contracts | Commodity Contracts | Interest Rate Contracts | Income Statement Location | ||||||||||||
Beginning of period derivative gains (losses) | $ | 35 | $ | (90 | ) | $ | 43 | $ | (16 | ) | |||||||
Effective portion of changes in fair value | 5 | (28 | ) | 55 | (74 | ) | |||||||||||
Reclassification to earnings | (41 | ) | — | (63 | ) | — | Operating revenues | ||||||||||
End of period derivative gains (losses) | $ | (1 | ) | $ | (118 | ) | $ | 35 | $ | (90 | ) |
1 | Unrealized derivative gains (losses) are before income taxes. Amounts recorded in accumulated other comprehensive loss include commodity and interest rate contracts. For additional information, see Note 11—Accumulated Other Comprehensive Loss. |
Years Ended December 31, | ||||||||
(in millions) | Income Statement Location | 2012 | 2011 | |||||
Economic hedges | Operating revenues | $ | 31 | $ | 5 | |||
Fuel | 2 | 3 | ||||||
Trading activities | Operating revenues | 68 | 76 |
Cash Flow Hedge Activity1 | Income Statement Location | ||||||||
(in millions) | 2012 | 2011 | |||||||
Beginning of period derivative gains | $ | 34 | $ | 37 | |||||
Effective portion of changes in fair value | 7 | 38 | |||||||
Reclassification to earnings | (43 | ) | (41 | ) | Operating revenues | ||||
End of period derivative gains (losses) | $ | (2 | ) | $ | 34 |
1 | Unrealized derivative gains (losses) are before income taxes. Amounts recorded in accumulated other comprehensive loss include commodity contracts. For additional information, see Note 11—Accumulated Other Comprehensive Loss. |
(in millions) | Income Statement Location | Years Ended December 31, | ||||||
2012 | 2011 | |||||||
Economic hedges | Operating revenues | $ | 31 | $ | 2 | |||
Fuel | 2 | 3 |
(in millions) | 2012 | 2011 | |||||
Fair value of trading contracts at beginning of period | $ | 107 | $ | 110 | |||
Net gains from energy trading activities | 68 | 76 | |||||
Amount realized from energy trading activities | (93 | ) | (84 | ) | |||
Other changes in fair value | 2 | 5 | |||||
Fair value of trading contracts at end of period | $ | 84 | $ | 107 |
December 31, | |||||||||
(in millions) | 2012 | 2011 | |||||||
Collateral provided to counterparties | |||||||||
Offset against derivative liabilities | $ | 9 | $ | 2 | |||||
Reflected in margin and collateral deposits | 61 | 41 | |||||||
Collateral received from counterparties | |||||||||
Offset against derivative assets | — | 53 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Continuing Operations | |||||||||||
Current | |||||||||||
Federal | $ | — | $ | 48 | $ | (321 | ) | ||||
State | — | (44 | ) | 9 | |||||||
Total current | — | 4 | (312 | ) | |||||||
Deferred | |||||||||||
Federal | $ | 26 | $ | (389 | ) | $ | 281 | ||||
State | 134 | (56 | ) | 15 | |||||||
Total deferred | 160 | (445 | ) | 296 | |||||||
Provision (benefit) for income taxes from continuing operations | 160 | (441 | ) | (16 | ) | ||||||
Discontinued operations | (73 | ) | (411 | ) | 44 | ||||||
Total | $ | 87 | $ | (852 | ) | $ | 28 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Continuing operations | $ | (637 | ) | $ | (888 | ) | $ | 65 | |||
Discontinued operations | (185 | ) | (1,043 | ) | 126 | ||||||
Total | $ | (822 | ) | $ | (1,931 | ) | $ | 191 |
December 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Deferred tax assets | |||||||
Accrued charges and liabilities | $ | 234 | $ | 303 | |||
Net operating loss carryforwards | 841 | 326 | |||||
Production tax and other credit carryforwards | 254 | 194 | |||||
Derivative instruments | 49 | 49 | |||||
Other | 6 | — | |||||
Total | 1,384 | 872 | |||||
Valuation allowance | (444 | ) | — | ||||
Net deferred tax assets | 940 | 872 | |||||
Deferred tax liabilities | |||||||
Property, plant and equipment - basis differences | $ | 989 | $ | 638 | |||
Deferred investment tax credit | 4 | 5 | |||||
State taxes | 28 | 20 | |||||
Other | — | 6 | |||||
Total | 1,021 | 669 | |||||
Deferred tax assets (liabilities), net | $ | (81 | ) | $ | 203 | ||
Classification of net accumulated deferred income taxes | |||||||
Included in other assets | $ | — | $ | 205 | |||
Included in current liabilities | $ | — | $ | 2 | |||
Included in deferred taxes and tax credits | $ | 81 | $ | — |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Income (loss) from continuing operations before income taxes | $ | (637 | ) | $ | (888 | ) | $ | 65 | |||
Expense (benefit) for income taxes at federal statutory rate of 35% | $ | (223 | ) | $ | (311 | ) | $ | 23 | |||
Increase (decrease) in income tax from | |||||||||||
State tax - net of federal benefit1 | 11 | (56 | ) | 16 | |||||||
Change in valuation allowance | 438 | — | — | ||||||||
Production tax credits, net | (68 | ) | (66 | ) | (61 | ) | |||||
Qualified production deduction | — | (6 | ) | 15 | |||||||
Deferred tax adjustments | — | (8 | ) | 10 | |||||||
Resolution of 1986-2002 state tax issues | — | — | (16 | ) | |||||||
Taxes on income allocated to noncontrolling interests | (4 | ) | — | 1 | |||||||
Other | 6 | 6 | (4 | ) | |||||||
Total provision (benefit) for income taxes from continuing operations | $ | 160 | $ | (441 | ) | $ | (16 | ) | |||
Effective tax rate | * | 50 | % | * |
* | Not meaningful. |
1 | Excludes state tax settlement in 2010. |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Balance at January 1 | $ | 171 | $ | 153 | $ | 115 | |||||
Tax positions taken during the current year | |||||||||||
Increases | — | 9 | — | ||||||||
Decreases | — | — | — | ||||||||
Tax positions taken during a prior year | |||||||||||
Increases | — | 9 | 126 | ||||||||
Decreases | (12 | ) | — | (80 | ) | ||||||
Decreases for settlements during the period | — | — | (8 | ) | |||||||
Decreases resulting from a lapse in statute of limitations | — | — | — | ||||||||
Balance at December 31 | $ | 159 | $ | 171 | $ | 153 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Current | |||||||||||
Federal | $ | — | $ | 2 | $ | 112 | |||||
State | — | 12 | 24 | ||||||||
Total current | — | 14 | 136 | ||||||||
Deferred | |||||||||||
Federal | $ | (76 | ) | $ | (145 | ) | $ | 7 | |||
State | 14 | (41 | ) | (1 | ) | ||||||
Total deferred | (62 | ) | (186 | ) | 6 | ||||||
Provision (benefit) for income taxes | $ | (62 | ) | $ | (172 | ) | $ | 142 |
December 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Deferred tax assets | |||||||
State taxes | $ | — | $ | 3 | |||
Deferred income | 2 | 1 | |||||
Derivative instruments | 24 | 9 | |||||
Impairment of loan to affiliate - tax | 539 | — | |||||
Property, plant and equipment - basis differences | — | 15 | |||||
Net operating loss carryforwards | — | 19 | |||||
Accrued charges and liabilities | 16 | 9 | |||||
Total | 581 | 56 | |||||
Valuation allowance | (533 | ) | — | ||||
Net deferred tax assets | 48 | 56 | |||||
Deferred tax liabilities | |||||||
State taxes | 3 | — | |||||
Property, plant and equipment - basis differences | 45 | — | |||||
Total | 48 | — | |||||
Deferred tax assets, net | $ | — | $ | 56 | |||
Classification of net accumulated deferred income taxes | |||||||
Included in current assets | $ | — | $ | 14 | |||
Included in deferred taxes | $ | — | $ | 42 |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Income (loss) before income taxes | $ | (1,526 | ) | $ | (442 | ) | $ | 357 | |||
Provision (benefit) for income taxes at federal statutory rate of 35% | $ | (534 | ) | $ | (155 | ) | $ | 125 | |||
State tax, net of federal benefit | (52 | ) | (19 | ) | 14 | ||||||
Change in valuation allowance | 521 | — | — | ||||||||
Qualified production deduction | — | — | (7 | ) | |||||||
Deferred tax adjustments | — | — | 9 | ||||||||
Other | 3 | 2 | 1 | ||||||||
Total provision (benefit) for income taxes | $ | (62 | ) | $ | (172 | ) | $ | 142 | |||
Effective tax rate | 4 | % | 39 | % | 40 | % |
(in millions) | 2012 | 2011 | 2010 | ||||||||
Balance at January 1 | $ | 44 | $ | 44 | $ | — | |||||
Tax positions taken during the current year | |||||||||||
Increases | — | — | — | ||||||||
Decreases | — | — | — | ||||||||
Tax positions taken during a prior year | |||||||||||
Increases1 | — | — | 44 | ||||||||
Decreases | — | — | — | ||||||||
Decreases for settlements during the period | — | — | — | ||||||||
Decreases resulting from a lapse in statute of limitations | — | — | — | ||||||||
Balance at December 31 | $ | 44 | $ | 44 | $ | 44 |
1 | Unrecognized tax benefits relate to tax positions taken in prior years and result from a review of Midwest Generation's deferred tax assets and liabilities. |
Years Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Subsidiaries1 | EME | Midwest Generation | Other EME Subsidiaries1 | EME | |||||||||||||||||
Change in projected benefit obligation | |||||||||||||||||||||||
Projected benefit obligation at beginning of year | $ | 195 | $ | 121 | $ | 316 | $ | 164 | $ | 123 | $ | 287 | |||||||||||
Service cost | 14 | 2 | 16 | 13 | 3 | 16 | |||||||||||||||||
Interest cost | 8 | 6 | 14 | 8 | 6 | 14 | |||||||||||||||||
Actuarial (gain) loss | 13 | 14 | 27 | 13 | (1 | ) | 12 | ||||||||||||||||
Curtailment gain | — | (9 | ) | (9 | ) | — | — | — | |||||||||||||||
Transfers out2 | — | (23 | ) | (23 | ) | — | — | — | |||||||||||||||
Benefits paid | (5 | ) | (6 | ) | (11 | ) | (3 | ) | (10 | ) | (13 | ) | |||||||||||
Projected benefit obligation at end of year | $ | 225 | $ | 105 | $ | 330 | $ | 195 | $ | 121 | $ | 316 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | 121 | $ | 56 | $ | 177 | $ | 109 | $ | 55 | $ | 164 | |||||||||||
Actual return on plan assets | 19 | 7 | 26 | 2 | — | 2 | |||||||||||||||||
Employer contributions | 14 | 9 | 23 | 13 | 11 | 24 | |||||||||||||||||
Benefits paid | (5 | ) | (6 | ) | (11 | ) | (3 | ) | (10 | ) | (13 | ) | |||||||||||
Fair value of plan assets at end of year | $ | 149 | $ | 66 | $ | 215 | $ | 121 | $ | 56 | $ | 177 | |||||||||||
Funded status at end of year | $ | (76 | ) | $ | (39 | ) | $ | (115 | ) | $ | (74 | ) | $ | (65 | ) | $ | (139 | ) | |||||
Amounts recognized on consolidated balance sheets: | |||||||||||||||||||||||
Long-term liabilities | $ | (76 | ) | $ | (39 | ) | $ | (115 | ) | $ | (74 | ) | $ | (65 | ) | $ | (139 | ) | |||||
Amounts recognized in accumulated other comprehensive income: | |||||||||||||||||||||||
Prior service cost | $ | 1 | $ | — | $ | 1 | $ | 1 | $ | — | $ | 1 | |||||||||||
Net loss | 40 | 27 | 67 | 38 | 31 | 69 | |||||||||||||||||
Accumulated benefit obligation at end of year | $ | 195 | $ | 105 | $ | 300 | $ | 168 | $ | 110 | $ | 278 | |||||||||||
Pension plans with an accumulated benefit obligation in excess of plan assets: | |||||||||||||||||||||||
Projected benefit obligation | $ | 225 | $ | 105 | $ | 330 | $ | 195 | $ | 121 | $ | 316 | |||||||||||
Accumulated benefit obligation | 195 | 105 | 300 | 168 | 110 | 278 | |||||||||||||||||
Fair value of plan assets | 148 | 68 | 216 | 121 | 56 | 177 | |||||||||||||||||
Weighted-average assumptions used to determine obligations at end of year: | |||||||||||||||||||||||
Discount rate | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | |||||||||||
Rate of compensation increase | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % | 4.50 | % |
1 | Includes Homer City. |
2 | Represents amount of EME's executive post retirement benefits liability assumed by EIX. |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||||||||||
Service cost | $ | 14 | $ | — | $ | 14 | $ | 13 | $ | 2 | $ | 15 | $ | 12 | $ | 3 | $ | 15 | |||||||||||||||||
Interest cost | 8 | 4 | 12 | 8 | 4 | 12 | 8 | 4 | 12 | ||||||||||||||||||||||||||
Expected return on plan assets | (9 | ) | (3 | ) | (12 | ) | (9 | ) | (1 | ) | (10 | ) | (7 | ) | (1 | ) | (8 | ) | |||||||||||||||||
Net amortization | 2 | 4 | 6 | 1 | 2 | 3 | — | 2 | 2 | ||||||||||||||||||||||||||
Special termination charges | — | 2 | 2 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Total expense | $ | 15 | $ | 7 | $ | 22 | $ | 13 | $ | 7 | $ | 20 | $ | 13 | $ | 8 | $ | 21 |
1 | Excludes Homer City. |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||||||||||
Net loss | $ | 4 | $ | 2 | $ | 6 | $ | 20 | $ | 5 | $ | 25 | $ | 4 | $ | 8 | $ | 12 | |||||||||||||||||
Amortization of net loss | (2 | ) | (4 | ) | (6 | ) | (1 | ) | (2 | ) | (3 | ) | — | (2 | ) | (2 | ) | ||||||||||||||||||
Total in other comprehensive (income) loss | $ | 2 | $ | (2 | ) | $ | — | $ | 19 | $ | 3 | $ | 22 | $ | 4 | $ | 6 | $ | 10 | ||||||||||||||||
Total in expense and other comprehensive (income) loss | $ | 17 | $ | 5 | $ | 22 | $ | 32 | $ | 10 | $ | 42 | $ | 17 | $ | 14 | $ | 31 |
1 | Includes Homer City. |
Years Ended December 31, | ||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||
Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||
Discount rate | 4.50 | % | 4.50 | % | 4.50 | % | 5.25 | % | 5.25 | % | 5.25 | % | 6.00 | % | 6.00 | % | 6.00 | % | ||||||||
Rate of compensation increase | 4.50 | % | 4.50 | % | 4.50 | % | 5.00 | % | 4.5% - 6.0% | 4.5% - 6.0% | 5.00 | % | 4.5% - 6.0% | 4.5% - 6.0% | ||||||||||||
Expected long-term return on plan assets | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % | 7.50 | % |
1 | Includes Homer City. |
Years Ending December 31, (in millions) | Midwest Generation | Other EME Subsidiaries1 | EME | ||||||||
2013 | $ | 8 | $ | 4 | $ | 12 | |||||
2014 | 9 | 5 | 14 | ||||||||
2015 | 10 | 5 | 15 | ||||||||
2016 | 12 | 4 | 16 | ||||||||
2017 | 13 | 4 | 17 | ||||||||
2018-2022 | 68 | 21 | 89 |
1 | Excludes Homer City. |
Years Ended December 31, | |||||||||||||||||||||||
2012 | 2011 | ||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Subsidiaries1 | EME | Midwest Generation | Other EME Subsidiaries1 | EME | |||||||||||||||||
Change in benefit obligation | |||||||||||||||||||||||
Benefit obligation at beginning of year | $ | 59 | $ | 71 | $ | 130 | $ | 54 | $ | 68 | $ | 122 | |||||||||||
Service cost | 1 | 2 | 3 | 2 | 1 | 3 | |||||||||||||||||
Interest cost | 3 | 3 | 6 | 2 | 4 | 6 | |||||||||||||||||
Actuarial (gain) loss | (3 | ) | (5 | ) | (8 | ) | 2 | (1 | ) | 1 | |||||||||||||
Benefits paid | (1 | ) | (2 | ) | (3 | ) | (1 | ) | (1 | ) | (2 | ) | |||||||||||
Benefit obligation at end of year | $ | 59 | $ | 69 | $ | 128 | $ | 59 | $ | 71 | $ | 130 | |||||||||||
Change in plan assets | |||||||||||||||||||||||
Fair value of plan assets at beginning of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Employer contributions | 1 | 2 | 3 | 1 | 1 | 2 | |||||||||||||||||
Benefits paid | (1 | ) | (2 | ) | (3 | ) | (1 | ) | (1 | ) | (2 | ) | |||||||||||
Fair value of plan assets at end of year | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||
Funded status at end of year | $ | (59 | ) | $ | (69 | ) | $ | (128 | ) | $ | (59 | ) | $ | (71 | ) | $ | (130 | ) | |||||
Amounts recognized on consolidated balance sheets: | |||||||||||||||||||||||
Long-term liabilities | $ | (59 | ) | $ | (69 | ) | $ | (128 | ) | $ | (59 | ) | $ | (71 | ) | $ | (130 | ) | |||||
Amounts recognized in accumulated other comprehensive income: | |||||||||||||||||||||||
Prior service cost (credit) | $ | 10 | $ | (2 | ) | $ | 8 | $ | 11 | $ | (3 | ) | $ | 8 | |||||||||
Net loss | 9 | 5 | 14 | 12 | 11 | 23 | |||||||||||||||||
Weighted-average assumptions used to determine obligations at end of year: | |||||||||||||||||||||||
Discount rate | 4.25 | % | 4.25 | % | 4.25 | % | 4.75 | % | 4.75 | % | 4.75 | % | |||||||||||
Assumed health care cost trend rates: | |||||||||||||||||||||||
Rate assumed for following year | 8.50 | % | 8.50 | % | 8.50 | % | 9.50 | % | 9.50 | % | 9.50 | % | |||||||||||
Ultimate rate | 5.00 | % | 5.00 | % | 5.00 | % | 5.25 | % | 5.25 | % | 5.25 | % | |||||||||||
Year ultimate rate reached | 2020 | 2020 | 2020 | 2019 | 2019 | 2019 |
1 | Includes Homer City. |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 2 | $ | 2 | $ | — | $ | 2 | $ | 1 | $ | — | $ | 1 | |||||||||||||||||
Interest cost | 3 | 1 | 4 | 2 | 2 | 4 | 2 | 3 | 5 | ||||||||||||||||||||||||||
Net amortization | 1 | — | 1 | 1 | (1 | ) | — | — | (1 | ) | (1 | ) | |||||||||||||||||||||||
Total expense | $ | 5 | $ | 2 | $ | 7 | $ | 5 | $ | 1 | $ | 6 | $ | 3 | $ | 2 | $ | 5 |
1 | Excludes Homer City. |
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2012 | 2011 | 2010 | |||||||||||||||||||||||||||||||||
(in millions) | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||||||||||
Net (gain) loss | $ | (3 | ) | $ | (4 | ) | $ | (7 | ) | $ | 1 | $ | (1 | ) | $ | — | $ | 5 | $ | 7 | $ | 12 | |||||||||||||
Prior service cost | — | — | — | — | — | — | 11 | — | 11 | ||||||||||||||||||||||||||
Net amortization | (1 | ) | — | (1 | ) | (1 | ) | 1 | — | — | — | — | |||||||||||||||||||||||
Total in other comprehensive (income) loss | $ | (4 | ) | $ | (4 | ) | $ | (8 | ) | $ | — | $ | — | $ | — | $ | 16 | $ | 7 | $ | 23 | ||||||||||||||
Total in expense and other comprehensive (income) loss | $ | 1 | $ | (2 | ) | $ | (1 | ) | $ | 5 | $ | 1 | $ | 6 | $ | 19 | $ | 9 | $ | 28 |
1 | Includes Homer City. |
Years Ended December 31, | ||||||||||||||||||||||||||
2012 | 2011 | 2010 | ||||||||||||||||||||||||
Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | Midwest Generation | Other EME Sub- sidiaries1 | EME | ||||||||||||||||||
Discount rate | 4.75 | % | 4.75 | % | 4.75 | % | 5.50 | % | 5.50 | % | 5.50 | % | 6.00 | % | 6.00 | % | 6.00 | % | ||||||||
Assumed health care cost trend rates: | ||||||||||||||||||||||||||
Current year | 9.50 | % | 9.50 | % | 9.50 | % | 9.75 | % | 9.75 | % | 9.75 | % | 8.25 | % | 8.25 | % | 8.25 | % | ||||||||
Ultimate rate | 5.25 | % | 5.3 | % | 5.3 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | 5.5 | % | ||||||||
Year ultimate rate reached | 2019 | 2019 | 2019 | 2019 | 2019 | 2019 | 2016 | 2016 | 2016 |
1 | Includes Homer City. |
Years Ending December 31, (in millions) | Midwest Generation | Other EME Subsidiaries1 | EME | ||||||||
2013 | $ | 1 | $ | 1 | $ | 2 | |||||
2014 | 1 | 1 | 2 | ||||||||
2015 | 2 | 1 | 3 | ||||||||
2016 | 2 | 1 | 3 | ||||||||
2017 | 2 | 2 | 4 | ||||||||
2018-2022 | 16 | 11 | 27 |
1 | Excludes Homer City. |
• | United States Equities: Common and preferred stocks of large, medium, and small companies which are predominantly United States-based. |
• | Non-United States Equities: Equity securities issued by companies domiciled outside the United States and in depository receipts which represent ownership of securities of non-United States companies. |
• | Fixed Income: Fixed income securities issued or guaranteed by the United States government, non-United States governments, government agencies and instrumentalities including municipal bonds, mortgage backed securities and corporate debt obligations. A portion of the fixed income positions may be held in debt securities that are below investment grade. |
• | Opportunistic: Investments in short to intermediate term market opportunities. Investments may have fixed income and/or equity characteristics and may be either liquid or illiquid. |
• | Alternative: Limited partnerships that invest in non-publicly traded entities. |
• | Other: Investments diversified among multiple asset classes such as global equity, fixed income currency and commodities markets. Investments are made in liquid instruments within and across markets. The investment returns are expected to approximate the plans' expected investment returns. |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Corporate stocks1 | $ | 743 | $ | — | $ | — | $ | 743 | |||||||
Common/collective funds2 | — | 635 | — | 635 | |||||||||||
U.S. government and agency securities3 | 242 | 350 | — | 592 | |||||||||||
Partnerships/joint ventures4 | — | 166 | 414 | 580 | |||||||||||
Corporate bonds5 | — | 508 | — | 508 | |||||||||||
Other investment entities6 | — | 271 | — | 271 | |||||||||||
Registered investment companies7 | 98 | 28 | — | 126 | |||||||||||
Interest-bearing cash | 24 | — | — | 24 | |||||||||||
Other | 1 | 100 | — | 101 | |||||||||||
Total | $ | 1,108 | $ | 2,058 | $ | 414 | $ | 3,580 | |||||||
Receivables and payables, net | (38 | ) | |||||||||||||
Net plan assets available for benefits | 3,542 | ||||||||||||||
EME's share of net plan assets | $ | 215 | |||||||||||||
Midwest Generation's share of net plan assets | $ | 149 |
(in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Corporate stocks1 | $ | 642 | $ | — | $ | — | $ | 642 | |||||||
Common/collective funds2 | — | 582 | — | 582 | |||||||||||
U.S. government and agency securities3 | 104 | 351 | — | 455 | |||||||||||
Partnerships/joint ventures4 | — | 140 | 448 | 588 | |||||||||||
Corporate bonds5 | — | 497 | — | 497 | |||||||||||
Other investment entities6 | — | 247 | — | 247 | |||||||||||
Registered investment companies7 | 79 | 29 | — | 108 | |||||||||||
Interest-bearing cash | 5 | — | — | 5 | |||||||||||
Other | (1 | ) | 69 | — | 68 | ||||||||||
Total | $ | 829 | $ | 1,915 | $ | 448 | $ | 3,192 | |||||||
Receivables and payables, net | $ | (39 | ) | ||||||||||||
Net plan assets available for benefits | 3,153 | ||||||||||||||
EME's share of net plan assets | $ | 177 | |||||||||||||
Midwest Generation's share of net plan assets | $ | 121 |
1 | Corporate stocks are diversified. For both 2012 and 2011, performance is primarily benchmarked against the Russell Indexes (60%) and Morgan Stanley Capital International (MSCI) index (40%). |
2 | At December 31, 2012 and 2011, respectively, the common/collective assets were invested in equity index funds that seek to track performance of the Standard and Poor's (S&P 500) Index (29% and 29%), Russell 200 and Russell 1000 indexes (28% and 27%) and the MSCI Europe, Australasia and Far East (EAFE) Index (11% and 10%). A non-index U.S. equity fund representing 25% and 23% of this category for 2012 and 2011, respectively, is actively managed. Another fund representing 6% and 8% of this category for 2012 and 2011, respectively, is a global asset allocation fund. |
3 | Level 1 U.S. government and agency securities are U.S. treasury bonds and notes. Level 2 primarily relates to the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. |
4 | Partnerships/joint venture Level 2 investments consist primarily of a partnership which invests in publicly traded fixed income securities, primarily from the banking and finance industry and U.S. government agencies. At December 31, 2012 and 2011, respectively, approximately 56% and 55% of the Level 3 partnerships are invested in (1) asset backed securities, including distressed mortgages and (2) commercial and residential loans and debt and equity of banks. The remaining Level 3 partnerships are invested in small private equity and venture capital funds. Investment strategies for these funds include branded consumer products, early stage technology, California geographic focus, and diversified US and non-US fund-of-funds. |
5 | Corporate bonds are diversified. At December 31, 2012 and 2011, respectively, this category includes $65 million and $53 million for collateralized mortgage obligations and other asset backed securities of which $7 million and $10 million are below investment grade. |
6 | Other investment entities were primarily invested in (1) emerging market equity securities, (2) a hedge fund that invests through liquid instruments in a global diversified portfolio of equity, fixed income, interest rate, foreign currency and commodities markets, and (3) domestic mortgage backed securities. |
7 | Level 1 of registered investment companies consisted of a global equity mutual fund which seeks to outperform the MSCI World Total Return Index. Level 2 primarily consisted of short-term, emerging market, high yield bond funds and government inflation-indexed bonds and short-term bond fund. |
(in millions) | 2012 | 2011 | |||||
Fair value, net at beginning of period | $ | 448 | $ | 345 | |||
Actual return on plan assets: | |||||||
Relating to assets still held at end of period | 88 | 6 | |||||
Relating to assets sold during the period | 13 | 22 | |||||
Purchases | 98 | 130 | |||||
Dispositions | (233 | ) | (55 | ) | |||
Transfers in and /or out of Level 3 | — | — | |||||
Fair value, net at end of period | $ | 414 | $ | 448 |
Years Ended December 31, | ||||||||
2012 | 2011 | 2010 | ||||||
Expected terms (in years) | 6.9 | 7.0 | 7.3 | |||||
Risk-free interest rate | 1.1% - 1.7% | 1.4% - 3.1% | 2.0% - 3.2% | |||||
Expected dividend yield | 2.8% - 3.1% | 3.1% - 3.5% | 3.3% - 4.0% | |||||
Weighted-average expected dividend yield | 3.0 | % | 3.4 | % | 3.8 | % | ||
Expected volatility | 17% - 18% | 18% - 19% | 19% - 20% | |||||
Weighted-average volatility | 18.3 | % | 18.9 | % | 19.8 | % |
Weighted-Average | |||||||||||||
Stock Options | Exercise Price | Remaining Contractual Term (Years) | Aggregate Intrinsic Value (in millions) | ||||||||||
Outstanding, December 31, 2011 | 3,344,611 | $ | 34.05 | ||||||||||
Granted | 660,222 | 43.16 | |||||||||||
Expired | (112,129 | ) | 47.39 | ||||||||||
Transferred to affiliates | (270,312 | ) | 33.13 | ||||||||||
Forfeited | (41,094 | ) | 39.88 | ||||||||||
Exercised | (881,064 | ) | 26.39 | ||||||||||
Outstanding, December 31, 2012 | 2,700,234 | 38.23 | 6.24 | ||||||||||
Vested and expected to vest at December 31, 2012 | 2,586,910 | 38.23 | 6.16 | $ | 20 | ||||||||
Exercisable at December 31, 2012 | 1,286,055 | 38.30 | 4.22 | 10 |
Years Ended December 31, | ||||||||
2012 | 2011 | 2010 | ||||||
Equity awards | ||||||||
Grant date risk-free interest rate | 0.4 | % | 1.2 | % | 1.3 | % | ||
Grant date expected volatility | 13.2 | % | 20.4 | % | 21.6 | % | ||
Liability awards1 | ||||||||
Expected volatility | 12.1 | % | 15.9 | % | 20.6 | % | ||
Risk-free interest rate | ||||||||
2012 awards | 0.4 | % | * | * | ||||
2011 awards | 0.2 | % | 0.3 | % | * | |||
2010 awards | * | 0.2 | % | 0.6 | % |
1 | The portion of performance shares classified as share-based liability awards are revalued at each reporting period. |
* | Not applicable. |
Equity Awards | Liability Awards | ||||||||||||
Shares | Weighted-Average Grant-Date Fair Value | Shares | Weighted-Average Fair Value | ||||||||||
Nonvested at December 31, 2011 | 84,313 | $ | 27.50 | 84,313 | $ | 29.48 | |||||||
Granted | 16,797 | 51.41 | 16,750 | ||||||||||
Forfeited | (1,514 | ) | 37.56 | (1,508 | ) | ||||||||
Vested1 | (52,650 | ) | 25.71 | (52,678 | ) | ||||||||
Transferred to affiliates | (5,717 | ) | 27.62 | (5,716 | ) | ||||||||
Nonvested at December 31, 2012 | 41,229 | 39.14 | 41,161 | 46.48 |
1 | Includes performance shares that were paid as performance targets were met. |
Restricted Stock Units | Weighted-Average Grant-Date Fair Value | |||||
Nonvested at December 31, 2011 | 129,750 | $ | 32.11 | |||
Granted | 39,918 | 43.16 | ||||
Forfeited | (2,911 | ) | 38.85 | |||
Paid Out | (45,488 | ) | 26.24 | |||
Affiliate transfers—net | (10,049 | ) | 31.42 | |||
Nonvested at December 31, 2012 | 111,220 | 38.36 |
Years Ended December 31, | |||||||||||
(in millions, except per award amounts) | 2012 | 2011 | 2010 | ||||||||
Stock-based compensation expense1 | |||||||||||
Stock options | $ | 3 | $ | 2 | $ | 4 | |||||
Performance shares | 1 | 1 | 2 | ||||||||
Restricted stock units | 1 | 2 | 1 | ||||||||
Other | 2 | 2 | 2 | ||||||||
Total stock-based compensation expense | $ | 7 | $ | 7 | $ | 9 | |||||
Income tax benefits related to stock compensation expense | $ | 3 | $ | 3 | $ | 4 | |||||
Excess tax benefits2 | 5 | 2 | 1 | ||||||||
Stock options | |||||||||||
Weighted average grant date fair value per option granted | $ | 5.22 | $ | 5.61 | $ | 4.92 | |||||
Fair value of options vested | 3 | 3 | 3 | ||||||||
Cash used to purchase shares to settle options | 44 | 18 | 11 | ||||||||
Cash from participants to exercise stock options | 26 | 12 | 6 | ||||||||
Value of options exercised | 18 | 6 | 4 | ||||||||
Tax benefits from options exercised | 6 | 2 | 2 | ||||||||
Performance shares3 classified as equity awards | |||||||||||
Weighted average grant date fair value per share granted | $ | 51.41 | $ | 31.14 | $ | 32.50 | |||||
Fair value of shares vested | 1.4 | 0.8 | 0.9 | ||||||||
Restricted stock units | |||||||||||
Weighted average grant date fair value per unit granted | $ | 43.16 | $ | 38.03 | $ | 33.30 | |||||
Value of shares settled | $ | 1 | $ | 2 | $ | — | |||||
Tax benefits realized from settlement of awards | $ | — | $ | 1 | $ | — |
1 | Reflected in administration and general on the consolidated statements of operations. |
2 | Reflected in excess tax benefits related to stock-based awards in cash flows from financing activities on the consolidated statements of cash flows. |
3 | There were no settlements of awards for performance shares in 2012, 2011 and 2010 as performance targets were not met. |
Years Ending December 31, (in millions) | Powerton and Joliet Stations1 | Other Operating Leases | LSTC | ||||||||
2013 | $ | 151 | $ | 19 | $ | 10 | |||||
2014 | 151 | 17 | — | ||||||||
2015 | 67 | 17 | — | ||||||||
2016 | 26 | 13 | — | ||||||||
2017 | 1 | 15 | — | ||||||||
Thereafter | 240 | 130 | — | ||||||||
Total future commitments | $ | 636 | $ | 211 | $ | 10 |
1 | Reflects principal and interest payments related to the Powerton and Joliet Sale Leaseback. |
Years Ending December 31, (in millions) | Lease Financings | Operating Leases | LSTC | ||||||||
2013 | $ | 7 | $ | 8 | $ | 129 | |||||
2014 | 2 | 7 | 133 | ||||||||
2015 | — | 7 | 58 | ||||||||
2016 | — | 5 | 23 | ||||||||
2017 | — | 5 | — | ||||||||
Thereafter | — | 6 | 101 | ||||||||
Total future commitments | $ | 9 | $ | 38 | $ | 444 | |||||
Amount representing interest | 1 | ||||||||||
Net commitments | $ | 8 |
(in millions) | 2013 | 2014 | 2015 | 2016 | 2017 | ||||||||||||||
Midwest Generation | |||||||||||||||||||
Fuel supply contracts | $ | 170 | $ | 150 | $ | — | $ | — | $ | — | |||||||||
Coal transportation agreements1 | 283 | 276 | 260 | 260 | 215 | ||||||||||||||
Capital expenditures | 25 | 19 | 17 | — | — | ||||||||||||||
Other contractual obligations | 19 | 1 | — | — | — | ||||||||||||||
Other EME subsidiaries | |||||||||||||||||||
Gas transportation agreements | 7 | 7 | 7 | 8 | 7 | ||||||||||||||
Capital expenditures | 24 | — | — | — | — | ||||||||||||||
Other contractual obligations | 32 | 23 | 18 | 13 | 7 | ||||||||||||||
$ | 560 | $ | 476 | $ | 302 | $ | 281 | $ | 229 |
1 | Years 2013 through 2017 reflect a reduction in minimum volumes for the voluntarily cessation of coal-fired operations at the Fisk and Crawford Stations. |
Unit | Remaining Cost (in millions) | Unit | Remaining Cost (in millions) | |||||||||
Joliet 6 | $ | 75 | Waukegan 7 | $ | 59 | |||||||
Joliet 7 | 111 | Waukegan 8 | 64 | |||||||||
Joliet 8 | 124 | Will County 3 | 104 | |||||||||
Powerton 5 | 127 | Will County 4 | 90 | |||||||||
Powerton 6 | 69 |
• | In March 2012, the US EPA announced proposed carbon dioxide (CO2) emissions limits for new power plants. No greenhouse gas emissions guidelines for existing plants have been announced. |
• | In June 2012, the United States Court of Appeals for the District of Columbia Circuit dismissed the challenge by industry groups and some states to the Prevention of Significant Deterioration and Title V Greenhouse Gas Tailoring Rule (GHG Tailoring Rule). In December 2012, petitions for rehearing by the full District of Columbia Circuit filed by states and industry groups were denied. In July 2012, the US EPA published a final rule maintaining the CO2 equivalent emissions thresholds (for purposes of PSD and Title V permitting) originally established in the GHG Tailoring Rule. The current program, which applies to only new or newly modified sources, is not expected to have an immediate effect on EME's existing generating plants, including Midwest Generation. However, regulation of GHG emissions pursuant to this |
(in millions) | Unrealized Gain (Losses) on Cash Flow Hedges | Unrecognized Losses and Prior Service Adjustments, Net1 | Valuation Allowance on Deferred Tax Asset | Accumulated Other Comprehensive Loss | |||||||||||
Balance at December 31, 2010 | $ | 16 | $ | (47 | ) | $ | — | $ | (31 | ) | |||||
Change for 2011 | (50 | ) | (13 | ) | — | (63 | ) | ||||||||
Balance at December 31, 2011 | (34 | ) | (60 | ) | — | (94 | ) | ||||||||
Change for 2012 | (42 | ) | 4 | (6 | ) | (44 | ) | ||||||||
Balance at December 31, 20122 | $ | (76 | ) | $ | (56 | ) | $ | (6 | ) | $ | (138 | ) |
1 | For further detail, see Note 8—Compensation and Benefit Plans. |
2 | EME and Midwest Generation both expect to reclassify unrealized losses on cash flow hedges into earnings in the next 12 months. For further explanation, please see discussion under Midwest Generation. |
(in millions) | Unrealized Gains (Losses) on Cash Flow Hedges, Net | Unrecognized Losses and Prior Service Adjustments, Net1 | Valuation Allowance on Deferred Tax Asset | Accumulated Other Comprehensive Loss | |||||||||||
Balance at December 31, 2010 | $ | 23 | $ | (26 | ) | $ | — | $ | (3 | ) | |||||
Change for 2011 | (2 | ) | (12 | ) | — | (14 | ) | ||||||||
Balance at December 31, 2011 | 21 | (38 | ) | — | (17 | ) | |||||||||
Change for 2012 | (22 | ) | 1 | (12 | ) | (33 | ) | ||||||||
Balance at December 31, 2012 | $ | (1 | ) | $ | (37 | ) | $ | (12 | ) | $ | (50 | ) |
1 | For further detail, see Note 8—Compensation and Benefit Plans. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Cash paid (received) | |||||||||||
Interest (net of amount capitalized)1 | $ | 168 | $ | 290 | $ | 239 | |||||
Income taxes | 59 | (216 | ) | (96 | ) | ||||||
Cash payments under plant operating leases | 199 | 311 | 325 | ||||||||
Details of assets acquired | |||||||||||
Fair value of assets acquired | $ | — | $ | 1 | $ | 1 | |||||
Liabilities assumed | — | — | — | ||||||||
Net assets acquired | $ | — | $ | 1 | $ | 1 | |||||
Non-cash activities from consolidation of VIEs | |||||||||||
Assets | $ | — | $ | — | $ | 94 | |||||
Liabilities | — | — | 99 | ||||||||
Non-cash activities from deconsolidation of VIEs | |||||||||||
Assets | $ | — | $ | — | $ | 249 | |||||
Liabilities | — | — | 253 | ||||||||
Non-cash distribution to EIX | 222 | — | — | ||||||||
Non-cash activities from vendor financing | 11 | 21 | 190 |
1 | Interest paid by EME for December 31, 2012, 2011 and 2010 was $199 million, $317 million and $293 million, respectively. Interest capitalized by EME for December 31, 2012, 2011 and 2010 was $31 million, $27 million and $54 million, respectively. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Cash paid | |||||||||||
Interest | $ | 36 | $ | 43 | $ | 51 | |||||
Income taxes | — | 8 | 136 | ||||||||
Non-cash distribution to parent | 106 | — | — |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Midwest Generation plants impairment1 | $ | — | $ | 640 | $ | 40 | |||||
Wind projects impairment and other charges | — | 64 | — | ||||||||
Ambit impairment | 15 | — | — | ||||||||
Other charges | 13 | 10 | 4 | ||||||||
EME asset impairments and other charges2 | $ | 28 | $ | 714 | $ | 44 |
1 | EME and Midwest Generation each recorded impairment charges on the Midwest Generation plants in 2011 and 2010. For an explanation of these charges, see the discussion below under Midwest Generation. |
2 | The fair value of long-lived assets as determined using the discounted cash flow models discussed below qualify as Level 3 in the fair value hierarchy. |
Years Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Midwest Generation plants impairment | $ | — | $ | 640 | $ | 40 | |||||
Other charges | 14 | 13 | 8 | ||||||||
Midwest Generation asset impairments and other charges1 | $ | 14 | $ | 653 | $ | 48 |
1 | The fair value of long-lived assets as determined using the discounted cash flow models discussed below qualify as Level 3 in the fair value hierarchy. |
Year Ended December 31, | |||||||||||
(in millions) | 2012 | 2011 | 2010 | ||||||||
Total operating revenues | $ | 395 | $ | 527 | $ | 636 | |||||
Total operating expenses | (496 | ) | (538 | ) | (522 | ) | |||||
Asset impairment and other charges | (89 | ) | (1,032 | ) | (1 | ) | |||||
Other income (expense) | 5 | — | 13 | ||||||||
Income (loss) before income taxes | (185 | ) | (1,043 | ) | 126 | ||||||
Provision (benefit) for income taxes | (73 | ) | (411 | ) | 44 | ||||||
Income (loss) from operations of discontinued operations | $ | (112 | ) | $ | (632 | ) | $ | 82 |
December 31, | |||||||
(in millions) | 2012 | 2011 | |||||
Cash and cash equivalents | $ | 2 | $ | 79 | |||
Other current assets | 7 | 128 | |||||
Carrying value adjustment | (9 | ) | — | ||||
Total current assets | — | 207 | |||||
Other long-term assets | — | 45 | |||||
Assets of discontinued operations | — | 252 | |||||
Total current liabilities | — | 27 | |||||
Other long-term liabilities | — | 9 | |||||
Liabilities of discontinued operations | $ | — | $ | 36 |
December 31, 2012 | December 31, 2011 | ||||||||||||||
(in millions) | Carrying Value | Valuation Allowance | Net | Carrying Value | |||||||||||
Due from affiliates | $ | 12 | $ | (12 | ) | $ | — | $ | 11 | ||||||
Interest receivable from affiliate | 55 | (55 | ) | — | 55 | ||||||||||
Notes receivable from affiliate | 1,311 | (1,311 | ) | — | 1,323 | ||||||||||
Total | $ | 1,378 | $ | (1,378 | ) | $ | — | $ | 1,389 |
• | Certain claims between EME, EIX, and the Noteholders who have signed the Support Agreement would be released prior to the effective date of a plan of reorganization, subject to the parties continuing performance of their obligations under the Support Agreement; |
• | The application of the Edison Mission Group and Mission Energy Holding Company tax-allocation agreements to EME would be extended through the earlier of the effective date of a plan of reorganization with respect to EME or December 31, 2014; |
• | EIX would cease to own EME when EME emerges from bankruptcy pursuant to a plan of reorganization; and |
• | Upon effectiveness of a plan of reorganization with respect to EME, EIX would assume approximately $200 million of EME's employee retirement related liabilities. |
• | EME will pay the reasonable and documented fees and expenses of the professional advisors to the Noteholders in connection with the Settlement Transaction; |
• | EME will consult with the professional advisors to the Noteholders regarding material decisions during the pendency of its Chapter 11 Cases; and |
• | EME agrees to seek the reasonable consent of the Noteholders to make material capital expenditures or payments with respect to the Powerton Station and Units 7 and 8 of Joliet Station, which are facilities subject to the Powerton and Joliet Sale Leaseback. |
(in millions) | December 31, 2012 | ||
Senior notes, net | $ | 3,700 | |
Accounts payable | 32 | ||
Interest payable | 154 | ||
Other | 73 | ||
Total liabilities subject to compromise | $ | 3,959 |
(in millions) | December 31, 2012 | ||
Accounts payable | $ | 29 | |
Interest payable | 13 | ||
Lease financing | 434 | ||
Other | 53 | ||
Total liabilities subject to compromise | $ | 529 |
(in millions) | December 31, 2012 | ||
Provision for allowable claims | $ | 6 | |
Write off of unamortized deferred financing costs and debt discounts | 15 | ||
Professional fees | 22 | ||
Total reorganization items | $ | 43 |
(in millions) | |||||
Operating revenues | $ | 901 | |||
Operating expenses | (1,262 | ) | |||
Other expense | (226 | ) | |||
Reorganization items | (43 | ) | |||
Provision for income taxes | (153 | ) | |||
Net loss attributable to debtor entities | (783 | ) | |||
Equity in loss of non-debtor entities, net of tax | (142 | ) | |||
Net loss attributable to Debtors | $ | (925 | ) |
(in millions) | |||||
Net Loss | $ | (925 | ) | ||
Other comprehensive loss, net of tax | (44 | ) | |||
Comprehensive Loss | $ | (969 | ) |
(in millions) | |||||
Total current assets | $ | 633 | |||
Investments in unconsolidated affiliates | 152 | ||||
Property, plant and equipment, less accumulated depreciation of $845 | 1,428 | ||||
Investment in non-debtor entities | 1,983 | ||||
Total other assets | 976 | ||||
Total assets | $ | 5,172 |
Total current liabilities | $ | 93 | |||
Liabilities subject to compromise | 3,959 | ||||
Deferred taxes | 131 | ||||
Other long-term liabilities | 257 | ||||
Total liabilities | $ | 4,440 | |||
Total equity | 732 | ||||
Total liabilities and equity | $ | 5,172 |
(in millions) | |||||
Net cash (used in) provided by | |||||
Operating activities | $ | (596 | ) | ||
Financing activities | 173 | ||||
Investing activities | (109 | ) | |||
Net decrease in cash and cash equivalents | (532 | ) | |||
Cash and cash equivalents at beginning of period | 955 | ||||
Cash and cash equivalents at end of period | $ | 423 | |||
Cash paid for reorganization items | $ | 20 |
(in millions) | First | Second | Third | Fourth | ||||||||||||
2012 | ||||||||||||||||
Operating revenues | $ | 343 | $ | 324 | $ | 340 | $ | 280 | ||||||||
Operating loss | (48 | ) | (100 | ) | (78 | ) | (102 | ) | ||||||||
Loss from continuing operations | (58 | ) | (75 | ) | (86 | ) | (578 | ) | ||||||||
Income (loss) from operations of discontinued subsidiaries, net of tax | (24 | ) | (29 | ) | (76 | ) | 17 | |||||||||
Net loss | (82 | ) | (104 | ) | (162 | ) | (561 | ) | ||||||||
2011 | ||||||||||||||||
Operating revenues | $ | 435 | $ | 400 | $ | 437 | $ | 381 | ||||||||
Operating income (loss) | 33 | (44 | ) | 30 | (717 | ) | ||||||||||
Income (loss) from continuing operations | (8 | ) | (26 | ) | 18 | (431 | ) | |||||||||
Income (loss) from operations of discontinued subsidiaries, net of tax | (12 | ) | (6 | ) | 15 | (629 | ) | |||||||||
Net income (loss) | (20 | ) | (32 | ) | 33 | (1,060 | ) | 1 |
1 | Reflects $704 million pre-tax ($424 million after tax) of asset impairment charges. For more information, see Note 13—Asset Impairments and Other Charges. In addition, the amount reflects a $1,032 million pre-tax ($623 million after tax) impairment charge related to Homer City. For more information, see Note 14—Discontinued Operations. |
(in millions) | First | Second | Third | Fourth | |||||||||||||
2012 | |||||||||||||||||
Operating revenues | $ | 233 | $ | 213 | $ | 253 | $ | 193 | |||||||||
Operating loss | (33 | ) | (88 | ) | (39 | ) | (1,437 | ) | 1 | ||||||||
Benefit for income taxes | (5 | ) | (27 | ) | (7 | ) | (23 | ) | |||||||||
Net loss | (9 | ) | (42 | ) | (12 | ) | (1,401 | ) | |||||||||
2011 | |||||||||||||||||
Operating revenues | $ | 351 | $ | 280 | $ | 366 | $ | 289 | |||||||||
Operating income (loss) | 62 | (47 | ) | 76 | (607 | ) | |||||||||||
Provision (benefit) for income taxes | 32 | (11 | ) | 38 | (231 | ) | |||||||||||
Net income (loss) | 48 | (18 | ) | 57 | (357 | ) | 2 |
1 | Reflects a $1.4 billion pre-tax charge for a valuation allowance recorded by Midwest Generation on its note receivable from EME. For more information, see Note 15—Related Party Transactions. |
2 | Reflects a $640 million pre-tax ($386 million, after tax) impairment charge. For more information, see Note 13—Asset Impairments and Other Charges. |
ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
EME and Subsidiaries | |||||||
(in thousands) | 2012 | 2011 | |||||
Audit fees | $ | 3,593 | $ | 4,402 | |||
Audit related fees1 | 44 | 414 | |||||
Tax fees2 | 250 | 382 | |||||
All other fees | 3 | — | |||||
Total | $ | 3,890 | $ | 5,198 |
1 | The nature of the services comprising these fees were assurance and related services related to the performance of the audit or review of the financial statements and not reported under "Audit Fees" above. |
2 | The nature of the services comprising these fees were to support compliance with federal, state and foreign tax reporting and payment requirements, including tax return review and review of tax laws, regulations or cases. |
Midwest Generation and Subsidiaries | |||||||
(in thousands) | 2012 | 2011 | |||||
Audit fees | $ | 554 | $ | 600 | |||
Audit related fees | — | — | |||||
Tax fee | — | — | |||||
All other fees | — | — | |||||
$ | 554 | $ | 600 |
(a) | (1) List of Financial Statements |
(2) | List of Financial Statement Schedules |
(3) | List of Exhibits |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
2.1 | Asset Purchase Agreement, dated August 1, 1998, between Pennsylvania Electric Company, NGE Generation, Inc., New York State Electric & Gas Corporation and Mission Energy Westside, Inc., incorporated by reference to Exhibit 2.4 to Edison Mission Energy's Form 10-K for the year ended December 31, 1998. | x | |
2.2 | Asset Sale Agreement, dated March 22, 1999, between Commonwealth Edison Company and Edison Mission Energy as to the Fossil Generating Assets, incorporated by reference to Exhibit 2.5 to Edison Mission Energy's Form 10-K for the year ended December 31, 1998. | x | x |
2.3 | Purchase Agreement, dated July 20, 2004, between Edison Mission Energy and Origin Energy New Zealand Limited, incorporated by reference to Exhibit 2.1 to Edison Mission Energy's Form 8-K filed October 4, 2004. | x | |
2.4 | Purchase Agreement, dated July 29, 2004, by and among Edison Mission Energy, IPM Eagle LLP, International Power plc, Mitsui & Co., Ltd. and the other sellers on the signature page thereto, incorporated by reference to Exhibit 2.1 to Edison Mission Energy's Form 10-Q for the quarter ended September 30, 2004. | x | |
3.1 | Certificate of Incorporation of Edison Mission Energy, dated August 14, 2001, incorporated by reference to Exhibit 3.1 to Edison Mission Energy's Form 8-K filed October 29, 2001. | x |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
3.1.1 | Certificate of Amendment to the Certificate of Incorporation of Edison Mission Energy, dated May 4, 2004, incorporated by reference to Exhibit 3.1.1 to Edison Mission Energy's Form 10-Q for the quarter ended March 31, 2004. | x | |
3.1.2 | Certificate of Amendment to the Certificate of Incorporation of Edison Mission Energy, dated August 8, 2007, incorporated by reference to Exhibit 3.1.2 to Edison Mission Energy's Form 10-Q for the quarter ended June 30, 2007. | x | |
3.2* | Amended By-Laws of Edison Mission Energy, dated March 12, 2013, incorporated by reference to Exhibit 3.2 to Edison Mission Energy's Form 8-K filed July 16, 2012. | x | |
3.3 | Limited Liability Company Agreement of Midwest Generation, LLC, effective as of July 12, 1999, incorporated by reference to Exhibit 3.3 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
3.4 | Certificate of Formation of Midwest Generation, LLC, dated as of July 9, 1999, incorporated by reference to Exhibit 3.4 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.1 | Indenture, dated as of May 7, 2007, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to Edison Mission Energy's Form 8-K filed May 10, 2007. | x | |
4.1.1 | First Supplemental Indenture, dated as of May 7, 2007, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of May 7, 2007, incorporated by reference to Exhibit 4.1.1 to Edison Mission Energy's Form 8-K filed May 10, 2007. | x | |
4.1.2 | Second Supplemental Indenture, dated as of May 7, 2007, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of May 7, 2007, incorporated by reference to Exhibit 4.1.2 to Edison Mission Energy's Form 8-K filed May 10, 2007. | x | |
4.1.3 | Third Supplemental Indenture, dated as of May 7, 2007, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of May 7, 2007, incorporated by reference to Exhibit 4.1.3 to Edison Mission Energy's Form 8-K filed May 10, 2007. | x | |
4.1.4 | Fourth Supplemental Indenture, dated as of August 22, 2007, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of May 7, 2007, incorporated by reference to Exhibit 4.1.4 to Edison Mission Energy's Form S-4 filed September 10, 2007. | x | |
4.2 | Second Supplemental Indenture, dated as of April 30, 2007, between Edison Mission Energy and The Bank of New York, as trustee, supplementing the Indenture, dated as of June 28, 1999, pursuant to which Edison Mission Energy's 7.73% Senior Notes due 2009 were issued, incorporated by reference to Exhibit 4.1 to Edison Mission Energy's Form 8-K filed May 1, 2007. | x | |
4.3 | Indenture, dated as of June 6, 2006, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, incorporated by reference to Exhibit 4.1 to Edison Mission Energy's Form 8-K filed June 8, 2006. | x | |
4.3.1 | First Supplemental Indenture, dated as of June 6, 2006, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of June 6, 2006, incorporated by reference to Exhibit 4.1.1 to Edison Mission Energy's Form 8-K filed June 8, 2006. | x | |
4.3.2 | Second Supplemental Indenture, dated as of June 6, 2006, between Edison Mission Energy and Wells Fargo Bank, National Association, as trustee, supplementing the Indenture, dated as of June 6, 2006, incorporated by reference to Exhibit 4.1.2 to Edison Mission Energy's Form 8-K filed June 8, 2006. | x | |
4.4 | Guarantee, dated as of August 17, 2000, made by Edison Mission Energy, as Guarantor in favor of Powerton Trust I, as Owner Lessor, incorporated by reference to Exhibit 4.9 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
4.4.1 | Schedule identifying substantially identical agreement to Guarantee constituting Exhibit 4.4 hereto, incorporated by reference to Exhibit 4.9.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.5 | Guarantee, dated as of August 17, 2000, made by Edison Mission Energy, as Guarantor in favor of Joliet Trust I, as Owner Lessor, incorporated by reference to Exhibit 4.10 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.5.1 | Schedule identifying substantially identical agreement to Guarantee constituting Exhibit 4.5 hereto, incorporated by reference to Exhibit 4.10.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.6 | Participation Agreement (T1), dated as of August 17, 2000, by and among, Midwest Generation, LLC, Powerton Trust I, as the Owner Lessor, Wilmington Trust Company, as the Owner Trustee, Powerton Generation I, LLC, as the Owner Participant, Edison Mission Energy, United States Trust Company of New York, as the Lease Indenture Trustee, and United States Trust Company of New York, as the Pass Through Trustees, incorporated by reference to Exhibit 4.12 to Edison Mission Energy's and Midwest Generation LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.6.1 | Schedule identifying substantially identical agreement to Indenture of Trust, Mortgage and Security Agreement constituting Exhibit 4.6 hereto, incorporated by reference to Exhibit 4.6.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.7 | Participation Agreement (T1), dated as of August 17, 2000, by and among, Midwest Generation, LLC, Joliet Trust I, as the Owner Lessor, Wilmington Trust Company, as the Owner Trustee, Joliet Generation I, LLC, as the Owner Participant, Edison Mission Energy, United States Trust Company of New York, as the Lease Indenture Trustee and United States Trust Company of New York, as the Pass Through Trustees, incorporated by reference to Exhibit 4.13 to Edison Mission Energy's and Midwest Generation LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.7.1 | Schedule identifying substantially identical agreement to Participation Agreement constituting Exhibit 4.7 hereto, incorporated by reference to Exhibit 4.13.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | x |
4.8 | Promissory Note ($499,450,800), dated as of August 24, 2000, by Edison Mission Energy in favor of Midwest Generation, LLC, incorporated by reference to Exhibit 4.5 to Edison Mission Energy's Form 10-K for the year ended December 31, 2000. | x | x |
4.8.1 | Schedule identifying substantially identical agreements to Promissory Note constituting Exhibit 4.8 hereto, incorporated by reference to Exhibit 4.5.1 to Edison Mission Energy's Form 10-K for the year ended December 31, 2000. | x | x |
4.9 | Pass-Through Trust Agreement A, dated as of August 17, 2000, between Midwest Generation, LLC and United States Trust Company of New York, as Pass-Through Trustee, made with respect to the formation of the Midwest Generation Series A Pass-Through Trust, and the issuance of 8.30% Pass-Through Certificates, Series A, incorporated by reference to Exhibit 4.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.10 | Pass-Through Trust Agreement B, dated as of August 17, 2000, between Midwest Generation, LLC and United States Trust Company of New York, as Pass-Through Trustee, made with respect to the formation of the Midwest Generation Series B Pass-Through Trust, and the issuance of 8.56% Pass-Through Certificates, Series B, incorporated by reference to Exhibit 4.2 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.11 | Form of 8.30% Pass-Through Certificate, Series A (included in Exhibit 4.1), incorporated by reference to Exhibit 4.3 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
4.12 | Form of 8.56% Pass-Through Certificate, Series B (included in Exhibit 4.2), incorporated by reference to Exhibit 4.4 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.13 | Indenture of Trust, Mortgage and Security Agreement (T1), dated as of August 17, 2000, between Powerton Trust I and United States Trust Company of New York, as Lease Indenture Trustee, incorporated by reference to Exhibit 4.5 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.13.1 | Schedule identifying substantially identical agreement to Indenture of Trust, Mortgage and Security Agreement constituting Exhibit 4.13 hereto, incorporated by reference to Exhibit 4.5.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.14 | Indenture of Trust, Mortgage and Security Agreement (T1), dated as of August 17, 2000, between Joliet Trust I and United States Trust Company of New York, as Lease Indenture Trustee, incorporated by reference to Exhibit 4.6 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.14.1 | Schedule identifying substantially identical agreement to Indenture of Trust, Mortgage and Security Agreement constituting Exhibit 4.14 hereto, incorporated by reference to Exhibit 4.6.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.15 | Facility Lease Agreement (T1), dated as of August 17, 2000, by and between Powerton Trust I, as Owner Lessor, and Midwest Generation, LLC, as Facility Lessee, incorporated by reference to Exhibit 4.7 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.15.1 | Schedule identifying substantially identical agreement to Facility Lease Agreement constituting Exhibit 4.15 hereto, incorporated by reference to Exhibit 4.7.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.16 | Facility Lease Agreement (T1), dated as of August 17, 2000, by and between, Joliet Trust I, as Owner Lessor, and Midwest Generation, LLC, as Facility Lessee, incorporated by reference to Exhibit 4.8 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
4.16.1 | Schedule identifying substantially identical agreement to Facility Lease Agreement constituting Exhibit 4.16 hereto, incorporated by reference to Exhibit 4.8.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
10.1 | Transaction Support Agreement, dated as of December 16, 2012, by and among Edison Mission Energy, Edison International and the Noteholders thereto, incorporated by reference to Exhibit 10.1 to Edison Mission Energy Form 8-K filed December 17, 2012. | x | |
10.2† | Purchase & Reservation Agreement, dated as of June 4, 2007, between Edison Mission Energy and Suzlon Wind Energy Corporation, incorporated by reference to Exhibit 10.1 to Edison Mission Energy's Form 10-Q for the quarter ended June 30, 2007. | x | |
10.3† | Supply Agreement, dated as of March 28, 2007, between Edison Mission Energy and Mitsubishi Power Systems Americas, Inc., incorporated by reference to Exhibit 10.1 to Edison Mission Energy's Form 10-Q for the quarter ended March 31, 2007. | x | |
10.4 | Guarantee, dated August 1, 1998, between Edison Mission Energy, Pennsylvania Electric Company, NGE Generation, Inc. and New York State Electric & Gas Corporation, incorporated by reference to Exhibit 10.54 to Edison Mission Energy's Form 10-K for the year ended December 31, 1998. | x | |
10.5 | Reimbursement Agreement, dated as of October 26, 2001, between Edison Mission Energy and Midwest Generation, LLC, incorporated by reference to Exhibit 10.15 to Edison Mission Energy's Form 10-Q for the quarter ended March 31, 2004. | x |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
10.6 | Reimbursement Agreement, dated as of October 26, 2001, between Edison Mission Energy and Midwest Generation, LLC, incorporated by reference to Exhibit 10.15 to Edison Mission Energy's Form 10-Q for the quarter ended March 31, 2004. | x | |
10.7 | Instrument of Assumption, dated as of December 15, 1999, by Midwest Generation, LLC in favor of Commonwealth Edison Company and Unicom Investment Inc., incorporated by reference to Exhibit 10.91 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
10.8 | Pledge Agreement, dated as of August 17, 2000, between Midwest Generation, LLC and Citibank, N.A., incorporated by reference to Exhibit 10.105 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
10.8.1 | Schedule identifying substantially identical agreements to the Pledge Agreement constituting Exhibit 10.8 hereto, incorporated by reference to Exhibit 10.105.1 to Edison Mission Energy's and Midwest Generation, LLC's Registration Statement on Form S-4 to the Securities and Exchange Commission on April 20, 2001. | x | |
10.9 | Forbearance Agreement, dated as of December 16, 2012, by and among Midwest Generation and certain owner lessors, owner lessors' equity owners, and holders of outstanding pass-through certificates, incorporated by reference to Exhibit 10.1 to Midwest Generation, LLC's Form 8-K filed December 21, 2012. | x | |
10.10 | Amended and Restated Tax Allocation Agreement, dated February 13, 2012, by and between Mission Energy Holding Company and Edison Mission Energy, incorporated by reference to Exhibit 10.11 to Edison Mission Energy's Form 10-K for the year ended December 31, 2011. | x | |
10.10.1 | Modification No. 1 to Tax Allocation Agreement (modifying Amended and Restated Tax Allocation Agreement listed as Exhibit 10.10 herein), dated November 15, 2012 by and between Mission Energy Holding Company and Edison Mission Energy, incorporated by reference to Exhibit 10.1 to Edison Mission Energy's Form 8-K filed November 21, 2012. | x | |
10.11 | Amended and Restated Administrative Agreement Re Tax Allocation Payments, dated February 13, 2012, among Edison International and subsidiary parties, incorporated by reference to Exhibit 10.12 to Edison Mission Energy's Form 10-K for the year ended December 31, 2011. | x | |
10.12 | Tax-Allocation Agreement, effective January 1, 2002, by and between Midwest Generation, LLC and Edison Mission Midwest Holdings Co., incorporated by reference to Exhibit 10.25 to Midwest Generation, LLC's Form 10-Q for the quarter ended September 30, 2002. | x | |
10.13 | Amended and Restated Master Purchase, Sale and Services Agreement, entered into on April 27, 2004, between Midwest Generation, LLC and Edison Mission Marketing & Trading, Inc., incorporated by reference to Exhibit 10.2 to Midwest Generation, LLC's Form 10-Q for the quarter ended March 31, 2004. | x | |
10.14 | Support Services Agreement, dated as of August 7, 2000, between Midwest Generation, LLC and Midwest Generation EME, LLC, incorporated by reference to Exhibit 10.4 to Midwest Generation, LLC's Form 10-Q for the quarter ended March 31, 2004. | x | |
10.15 | Management and Administration Agreement, effective as of April 27, 2004, between Midwest Generation, LLC and Midwest Generation EME, LLC, incorporated by reference to Exhibit 10.1 to Midwest Generation, LLC's Form 10-Q for the quarter ended March 31, 2004. | x | |
21.1* | Subsidiaries of Edison Mission Energy | x | |
21.2* | Subsidiaries of Midwest Generation, LLC | x | |
31.1* | Certification of the Edison Mission Energy President pursuant to Section 302 of the Sarbanes-Oxley Act. | x | |
31.2* | Certification of the Edison Mission Energy Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. | x | |
31.3* | Certification of the Midwest Generation, LLC President pursuant to Section 302 of the Sarbanes-Oxley Act. | x |
Exhibit Number | Description | Edison Mission Energy | Midwest Generation |
31.4* | Certification of the Midwest Generation, LLC Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act. | x | |
32.1* | Statement Pursuant to 18 U.S.C. Section 1350 for Edison Mission Energy. | x | |
32.2* | Statement Pursuant to 18 U.S.C. Section 1350 for Midwest Generation, LLC. | x | |
95* | Mine Safety Disclosures | x | |
101 | Financial statements from the annual report on Form 10-K of Edison Mission Energy and Midwest Generation, LLC for the year ended December 31, 2012, filed on March 15, 2013, formatted in XBRL: (i) Edison Mission Energy Consolidated Statements of Operations, (ii) Edison Mission Energy Consolidated Statements of Comprehensive Income (Loss), (iii) Edison Mission Energy Consolidated Balance Sheets, (iv) Edison Mission Energy Consolidated Statements of Total Equity, (v) Edison Mission Energy Consolidated Statements of Cash Flows, (vi) Midwest Generation, LLC Consolidated Statements of Operations, (vii) Midwest Generation, LLC Consolidated Statements of Comprehensive Income (Loss), (viii) Midwest Generation, LLC Consolidated Balance Sheets, (ix) Midwest Generation Consolidated Statements of Member's Equity, (x) Midwest Generation Consolidated Statements of Cash Flows, and (xi) the Combined Notes to Consolidated Financial Statements. | x | x |
* | Filed herewith. |
† | Confidential treatment granted. |
EDISON MISSION ENERGY (REGISTRANT) | ||
By: | /s/ Maria Rigatti | |
Maria Rigatti Senior Vice President and Chief Financial Officer | ||
Date: | March 15, 2013 |
Signature | Title | Date | ||
/s/ Pedro J. Pizarro | ||||
Pedro J. Pizarro | Director and President (Principal Executive Officer) | March 15, 2013 | ||
/s/ Maria Rigatti | ||||
Maria Rigatti | Senior Vice President and Chief Financial Officer (Principal Financial Officer) | March 15, 2013 | ||
/s/ Aaron D. Moss | ||||
Aaron D. Moss | Vice President and Controller (Principal Accounting Officer) | March 15, 2013 | ||
/s/ Frederic F. Brace | ||||
Frederic F. Brace | Director | March 15, 2013 | ||
/s/ Hugh E. Sawyer | ||||
Hugh E. Sawyer | Director | March 15, 2013 |
MIDWEST GENERATION, LLC (REGISTRANT) | ||
By: | /s/ Maria Rigatti | |
Maria Rigatti Manager and Vice President | ||
Date: | March 15, 2013 |
Signature | Title | Date | ||
/s/ Douglas R. McFarlan | ||||
Douglas R. McFarlan | Manager and President (Principal Executive Officer) | March 15, 2013 | ||
/s/ Maria Rigatti | ||||
Maria Rigatti | Manager and Vice President (Principal Financial Officer) | March 15, 2013 | ||
/s/ Aaron D. Moss | ||||
Aaron D. Moss | Vice President and Controller (Principal Accounting Officer) | March 15, 2013 | ||
/s/ Daniel D. McDevitt | ||||
Daniel D. McDevitt | Manager and Vice President | March 15, 2013 |
December 31, | |||||||
2012 | 2011 | ||||||
Assets | |||||||
Cash and cash equivalents | $ | 328 | $ | 738 | |||
Affiliate receivables | 363 | 3 | |||||
Other current assets | 15 | 5 | |||||
Total current assets | 706 | 746 | |||||
Investments in subsidiaries | 5,015 | 6,408 | |||||
Other long-term assets | 260 | 199 | |||||
Total Assets | $ | 5,981 | $ | 7,353 | |||
Liabilities and Shareholder's Equity | |||||||
Accounts payable and accrued liabilities | $ | 18 | $ | 72 | |||
Affiliate payables | 132 | 539 | |||||
Total current liabilities | 150 | 611 | |||||
Liabilities subject to compromise | 5,256 | — | |||||
Long-term debt | — | 3,700 | |||||
Long-term affiliate debt | — | 1,335 | |||||
Deferred taxes and other | 131 | 45 | |||||
Total Liabilities | 5,537 | 5,691 | |||||
Total EME Common Shareholder's Equity | 444 | 1,662 | |||||
Total Liabilities and Shareholder's Equity | $ | 5,981 | $ | 7,353 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Operating revenues | $ | 9 | $ | 4 | $ | 4 | |||||
Operating expenses | (111 | ) | (146 | ) | (114 | ) | |||||
Operating loss | (102 | ) | (142 | ) | (110 | ) | |||||
Equity in income from continuing operations of subsidiaries | (289 | ) | (788 | ) | 463 | ||||||
Interest expense and other | (375 | ) | (383 | ) | (355 | ) | |||||
Loss before income taxes | (766 | ) | (1,313 | ) | (2 | ) | |||||
Reorganization items | 37 | — | — | ||||||||
Provision (benefit) for income taxes | 122 | (235 | ) | (166 | ) | ||||||
Net income (loss) attributable to EME common shareholder | $ | (925 | ) | $ | (1,078 | ) | $ | 164 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Net Income (Loss) | $ | (925 | ) | $ | (1,078 | ) | $ | 164 | |||
Other comprehensive loss, net of tax | (44 | ) | (63 | ) | (109 | ) | |||||
Comprehensive Income (Loss) Attributable to Edison Mission Energy Common Shareholder | $ | (969 | ) | $ | (1,141 | ) | $ | 55 |
Years Ended December 31, | |||||||||||
2012 | 2011 | 2010 | |||||||||
Net cash (used in) provided by operating activities | $ | (497 | ) | $ | (53 | ) | $ | 576 | |||
Net cash used in financing activities | (9 | ) | (2 | ) | (245 | ) | |||||
Net cash provided by (used in) investing activities | 96 | 366 | (84 | ) | |||||||
Net (decrease) increase in cash and cash equivalents | (410 | ) | 311 | 247 | |||||||
Cash and cash equivalents at beginning of period | 738 | 427 | 180 | ||||||||
Cash and cash equivalents at end of period | $ | 328 | $ | 738 | $ | 427 | |||||
Cash dividends received from subsidiaries | $ | 45 | $ | 903 | $ | 125 |
Additions | |||||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Year | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Customers | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | |||||||||
All others | — | — | — | — | — | ||||||||||||||
Deferred tax valuation allowance | — | 438 | 1 | 6 | 1 | — | 444 | ||||||||||||
Total | $ | 5 | $ | 438 | $ | 6 | $ | — | $ | 449 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Customers | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | |||||||||
All others | — | — | — | — | — | ||||||||||||||
Total | $ | 5 | $ | — | $ | — | $ | — | $ | 5 | |||||||||
Year Ended December 31, 2010 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Customers | $ | 2 | $ | — | $ | 3 | 2 | $ | — | $ | 5 | ||||||||
All others | 48 | — | — | 48 | 3 | — | |||||||||||||
Total | $ | 50 | $ | — | $ | 3 | $ | 48 | $ | 5 |
1 | EME recorded a deferred tax valuation allowance during the fourth quarter of 2012 due to uncertainty in future tax-sharing payments. For further discussion, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 7. Income Taxes." |
2 | Represents the consolidation of one coal project effective January 1, 2010. |
3 | EME filed bankruptcy claims in the amount of $48 million related to the contracts terminated with Lehman Brothers through the termination provisions of its master netting agreements with a Lehman Brothers subsidiary. Such claims were fully reserved and were included net in prepaid expenses and other on EME's consolidated balance sheet. In 2010, EME sold its bankruptcy claims. |
Additions | |||||||||||||||||||
Description | Balance at Beginning of Year | Charged to Costs and Expenses | Charged to Other Accounts | Deductions | Balance at End of Year | ||||||||||||||
Year Ended December 31, 2012 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Others | — | 1,378 | 1 | — | — | 1,378 | |||||||||||||
Deferred tax valuation allowance | — | 521 | 2 | 12 | 2 | — | 533 | ||||||||||||
Total | $ | — | $ | 1,899 | $ | 12 | $ | — | $ | 1,911 | |||||||||
Year Ended December 31, 2011 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Others | — | — | — | — | — | ||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Year Ended December 31, 2010 | |||||||||||||||||||
Uncollectible accounts | |||||||||||||||||||
Others | 48 | — | — | 48 | 3 | — | |||||||||||||
Total | $ | 48 | $ | — | $ | — | $ | 48 | $ | — |
1 | Midwest Generation recorded a full valuation allowance during the fourth quarter of 2012 relating to the impairment of its intercompany loan with EME. For further discussion, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 15. Related Party Transactions." |
2 | Midwest Generation recorded a deferred tax valuation allowance during the fourth quarter of 2012 related to the impairment of its intercompany loan with EME. For further discussion, see "Item 8. Combined Notes to Consolidated Financial Statements—Note 7. Income Taxes." |
3 | Midwest Generation filed bankruptcy claims in the amount of $48 million related to the contracts terminated with Lehman Brothers through the termination provisions of its master netting agreements with a Lehman Brothers subsidiary. Such claims were fully reserved and were included net in other current assets on Midwest Generation's consolidated balance sheet. In 2010, Midwest Generation sold its bankruptcy claims. |
Section 1.1 | Principal Executive Office. 1 |
Section 1.2 | Other Offices. 1 |
Section 2.1 | Meeting Locations. 1 |
Section 2.2 | Annual Meetings. 1 |
Section 2.3 | Special Meetings. 2 |
Section 2.4 | Notice of Annual or Special Meeting. 2 |
Section 2.5 | Quorum; Adjournment. 3 |
Section 2.6 | Adjourned Meeting and Notice Thereof. 3 |
Section 2.7 | Voting. 4 |
Section 2.8 | Record Date. 4 |
Section 2.9 | Consent of Absentees; Waiver of Notice. 5 |
Section 2.10 | Action Without Meeting. 5 |
Section 2.11 | Proxies. 6 |
Section 3.1 | Powers. 6 |
Section 3.2 | Number of Directors. 7 |
Section 3.3 | Election and Term of Office. 7 |
Section 3.4 | Vacancies. 7 |
Section 3.5 | Place of Meeting. 7 |
Section 3.6 | Organization Meeting. 8 |
Section 3.7 | Special Meetings. 8 |
Section 3.8 | Quorum. 8 |
Section 3.9 | Participation in Meetings by Conference Telephone. 9 |
Section 3.10 | Waiver of Notice. 9 |
Section 3.11 | Adjournment. 9 |
Section 3.12 | Fees and Compensation. 9 |
Section 3.13 | Action Without Meeting. 9 |
Section 4.1 | Officers. 10 |
Section 4.2 | Election. 10 |
Section 4.3 | Eligibility of Chairman of the Board, Vice Chairman of the Board or President. 10 |
Section 4.4 | Removal and Resignation. 10 |
Section 4.5 | Appointment of Other Officers. 10 |
Section 4.6 | Vacancies. 11 |
Section 4.7 | Salaries. 11 |
Section 4.8 | Chairman of the Board. 11 |
Section 4.9 | Vice Chairman of the Board. 11 |
Section 4.10 | President. 11 |
Section 4.11 | Vice President. 11 |
Section 4.12 | Chief Operating Officer. 12 |
Section 4.13 | General Manager. 12 |
Section 4.14 | Chief Financial Officer. 12 |
Section 4.15 | General Counsel. 12 |
Section 4.16 | Assistant General Counsel. 12 |
Section 4.17 | Controller. 12 |
Section 4.18 | Secretary. 13 |
Section 4.19 | Assistant Secretary. 13 |
Section 4.20 | Secretary Pro Tempore. 13 |
Section 4.21 | Treasurer. 13 |
Section 4.22 | Assistant Treasurer. 13 |
Section 4.23 | Performance of Duties. 14 |
Section 5.1 | Inspection of Bylaws. 14 |
Section 5.2 | Contracts and Other Instruments, Loans, Notes and Deposit of Funds. 14 |
Section 5.3 | Representation of Shares of Other corporations. 15 |
Section 5.4 | Fiscal Year and Subdivisions. 15 |
Section 5.5 | Record Owners. 15 |
Section 5.6 | Construction and Definitions. 15 |
Section 6.1 | Power to Indemnify in Actions, Suits or Proceedings other than Those by or in the Right of the corporation 15 |
Section 6.2 | Power to Indemnify in Actions, Suibts or Proceedings by or in the Right of the Corporation 16 |
Section 6.3 | Authorization of Indemnification 16 |
Section 6.4 | Good Faith Defined 17 |
Section 6.5 | Indemnification by a Court 17 |
Section 6.6 | Expenses Payable in Advance 17 |
Section 6.7 | Indemnification of Employees and Agents 18 |
Section 6.8 | Right of Directors and Officers to Bring Suit. 18 |
Section 6.9 | Successful Defense. 18 |
Section 6.10 | Nonexclusivity of Rights. 18 |
Section 6.11 | Survival of Indemnification and Advancement of Expenses 19 |
Section 6.12 | Limitation on Indemnification 19 |
Section 6.13 | Insurance. 19 |
Section 6.14 | Expenses as a Witness. 19 |
Section 6.15 | Indemnity Agreements. 20 |
Section 6.16 | Severability. 20 |
Section 6.17 | Certain Definitions 20 |
Section 6.18 | Effect of Repeal or Modification. 20 |
Section 7.1 | Amendments. 21 |
Section 1.1 | Principal Executive Office. |
Section 1.2 | Other Offices. |
Section 2.1 | Meeting Locations. |
Section 2.2 | Annual Meetings. |
Section 2.3 | Special Meetings. |
Section 2.4 | Notice of Annual or Special Meeting. |
Section 2.5 | Quorum; Adjournment. |
Section 2.6 | Adjourned Meeting and Notice Thereof. |
Section 2.7 | Voting. |
(a) | Shares standing in the name of another corporation, domestic or foreign, may be voted by an officer, agent, or proxyholder as the Bylaws of the other corporation may prescribe or, in the absence of such provision, as the Board of the other corporation may determine or, in the absence of that determination, by the chairman of the board, president or any vice president of the other corporation, or by any other person authorized to do so by the chairman of the board, president, or any vice president of the other corporation. Shares which are purported to be voted or any proxy purported to be executed in the name of a corporation (whether or not any title of the person signing is indicated) shall be presumed to be voted or the proxy executed in accordance with the provisions of the DGCL, unless the contrary is shown. |
(b) | Shares of this corporation owned by its subsidiary shall not be entitled to vote on any matter. |
(c) | Shares of this corporation held by this corporation in a fiduciary capacity, and shares of this corporation held in a fiduciary capacity by its subsidiary, shall not be entitled to vote on any matter, except as follows: (i) to the extent that the settlor or beneficial owner possesses and exercises a right to vote or to give this corporation binding instructions as to how to vote such shares; or (ii) where there are one or more co-trustees who are not affected by the prohibition of this subsection, in which case the shares may be voted by the co-trustees as if it or they are the sole trustees. |
Section 2.8 | Record Date. |
Section 2.9 | Consent of Absentees; Waiver of Notice. |
Section 2.10 | Action Without Meeting. |
Section 2.11 | Proxies. |
Section 3.1 | Powers. |
(a) | To select and remove all the other officers, agents and employees of the corporation, prescribe the powers and duties for them as may not be inconsistent with law, with the Certificate of Incorporation or these Bylaws, fix their compensation and require from them security for faithful service. |
(b) | To conduct, manage and control the affairs and business of the corporation and to make such rules and regulations therefor not inconsistent with law, or with the Certificate of Incorporation or these Bylaws, as they may deem best. |
(c) | To adopt, make and use a corporate seal, and to prescribe the forms of certificates of stock, and to alter the form of such seal and of such certificates from time to time as in their judgment they deem best. |
(d) | To authorize the issuance of shares of stock of the corporation from time to time, upon such terms and for such consideration as may be lawful. |
(e) | To borrow money and incur indebtedness for the purposes of the corporation, and to cause to be executed and delivered thereof, in the corporate name, promissory notes, bonds, debentures, deeds of trust, mortgages, pledges, hypothecations or other evidences of debt and securities thereof. |
Section 3.2 | Number of Directors. |
Section 3.3 | Election and Term of Office. |
Section 3.4 | Vacancies. |
Section 3.5 | Place of Meeting. |
Section 3.6 | Organization Meeting. |
Section 3.7 | Special Meetings. |
Section 3.8 | Quorum. |
Section 3.9 | Participation in Meetings by Conference Telephone. |
Section 3.10 | Waiver of Notice. |
Section 3.11 | Adjournment. |
Section 3.12 | Fees and Compensation. |
Section 4.1 | Officers. |
Section 4.2 | Election. |
Section 4.3 | Eligibility of Chairman of the Board, Vice Chairman of the Board or President. |
Section 4.4 | Removal and Resignation. |
Section 4.5 | Appointment of Other Officers. |
Section 4.6 | Vacancies. |
Section 4.7 | Salaries. |
Section 4.8 | Chairman of the Board. |
Section 4.9 | Vice Chairman of the Board. |
Section 4.10 | President. |
Section 4.11 | Vice President. |
Section 4.12 | Chief Operating Officer. |
Section 4.13 | General Manager. |
Section 4.14 | Chief Financial Officer. |
Section 4.15 | General Counsel. |
Section 4.16 | Assistant General Counsel. |
Section 4.17 | Controller. |
Section 4.18 | Secretary. |
Section 4.19 | Assistant Secretary. |
Section 4.20 | Secretary Pro Tempore. |
Section 4.21 | Treasurer. |
Section 4.22 | Assistant Treasurer. |
Section 4.23 | Performance of Duties. |
Section 5.1 | Inspection of Bylaws. |
Section 5.2 | Contracts and Other Instruments, Loans, Notes and Deposit of Funds. |
Section 5.3 | Representation of Shares of Other corporations. |
Section 5.4 | Fiscal Year and Subdivisions. |
Section 5.5 | Record Owners. |
Section 5.6 | Construction and Definitions. |
Section 6.1 | Power to Indemnify in Actions, Suits or Proceedings other than Those by or in the Right of the Corporation. |
Section 6.2 | Power to Indemnify in Actions, Suits or Proceedings by or in the Right of the corporation. |
Section 6.7 | Indemnification of Employees and Agents. |
Section 6.9 | Successful Defense. |
Section 6.10 | Nonexclusively of Rights. |
Section 6.11 | Survival of Indemnification and Advancement of Expenses. |
Section 6.12 | Limitation on Indemnification. |
Section 6.13 | Insurance. |
Section 6.14 | Expenses as a Witness. |
Section 6.15 | Indemnity Agreements. |
Section 6.16 | Severability. |
Section 6.17 | Certain Definitions. |
Section 6.18 | Effect of Repeal or Modification. |
Section 7.1 | Amendments. |
1. | I have reviewed this quarterly report on Form 10-K for the year ended December 31, 2012, of Edison Mission Energy; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Pedro J. Pizarro | ||
Date: March 15, 2013 | Pedro J. Pizarro President |
1. | I have reviewed this quarterly report on Form 10-K for the year ended December 31, 2012, of Edison Mission Energy; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Maria Rigatti | ||
Date: March 15, 2013 | Maria Rigatti Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-K for the year ended December 31, 2012, of Midwest Generation, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Douglas R. McFarlan | ||
Date: March 15, 2013 | Douglas R. McFarlan President |
1. | I have reviewed this quarterly report on Form 10-K for the year ended December 31, 2012, of Midwest Generation, LLC; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Maria Rigatti | ||
Date: March 15, 2013 | Maria Rigatti Vice President |
1. | The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Pedro J. Pizarro | |
Pedro J. Pizarro President Edison Mission Energy | |
/s/ Maria Rigatti | |
Maria Rigatti Chief Financial Officer Edison Mission Energy |
1. | The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and |
2. | The information contained in the Annual Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Douglas R. McFarlan | |
Douglas R. McFarlan President Midwest Generation, LLC | |
/s/ Maria Rigatti | |
Maria Rigatti Vice President Midwest Generation, LLC |
(A) | The total number of violations of mandatory health or safety standards that could significantly and substantially contribute to the cause and effect of a coal or other mine safety or health hazard under section 104 of the FMSH Act (30 U.S.C. 814) for which the operator received a citation from MSHA; |
(B) | The total number of orders issued under section 104(b) of the FMSH Act (30 U.S.C. 814(b)); |
(C) | The total number of citations and orders for unwarrantable failure of the mine operator to comply with mandatory health or safety standards under section 104(d) of the FMSH Act (30 U.S.C. 814(d)); |
(D) | The total number of imminent danger orders issued under section 107(a) of the FMSH Act (30 U.S.C. 817(a)); |
(E) | The total dollar value of proposed assessments from MSHA under the FMSH Act (30 U.S.C. 801 et seq.); |
(F) | Legal actions pending before Federal Mine Safety and Health Review Commission involving such coal or other mine as of the last day of the period; |
(G) | Legal actions initiated before the Federal Mine Safety and Health Review Commission involving such coal or mine during the period; and |
(H) | Legal actions resolved before the Federal Mine Safety and Health Review Commission involving such coal or mine during the period. |
Year Ended December 31, 2012 | |||||||||||||||||||
(A) | (B) | (C) | (D) | (E) | (F) | (G) | (H) | ||||||||||||
Section 104 (S&S) Citations | Section 104(b) Orders | Section 104(d) Orders | Section 107(a) Citations & Orders | Total Dollar Value of MSHA Proposed Assessments | Legal Actions Pending as of Last Day of Period | Legal Actions Initiated During Period | Legal Actions Resolved During Period | ||||||||||||
Ambit project | 1 | — | — | — | $ | 100 | — | — | — |
Environmental Developments (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Developments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated costs of retrofitting plants | Based on work to date, the estimated costs of retrofitting the Midwest Generation plants are as follows:
|
Summary of Significant Accounting Policies (Power Purchase Agreements) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Accounting Policies [Abstract] | |||
Revenue from power sales arrangements | $ 124 | $ 109 | $ 81 |
Summary of Significant Accounting Policies (Details) (USD $)
In Millions, unless otherwise specified |
0 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Jan. 02, 2013
Midwest Generation LLC
|
Dec. 31, 2012
Midwest Generation LLC
MW
|
Dec. 31, 2011
Midwest Generation LLC
|
Dec. 31, 2010
Midwest Generation LLC
|
Dec. 31, 2009
Midwest Generation LLC
|
Dec. 31, 2012
Midwest Generation LLC
Powerton, Joliet, Will County and Waukegan Stations of Midwest Generation LLC.
MW
|
Dec. 31, 2012
Midwest Generation LLC
Fisk and Waukegan Stations of Midwest Generation LLC.
MW
|
Dec. 31, 2012
Viento Funding II, Inc.
|
Nov. 30, 2010
High Lonesome Mesa, LLC
|
Aug. 31, 2000
Powerton and Joliet Power Stations
Midwest Generation LLC
|
Dec. 31, 2012
Powerton Station
Midwest Generation LLC
|
Dec. 31, 2012
Joliet Units 7 and 8
Midwest Generation LLC
|
Dec. 31, 2012
Unsecured Notes
|
Feb. 28, 2011
Term Loan
Viento Funding II, Inc.
|
Dec. 31, 2012
Term Loan due 2020
Term Loan
Viento Funding II, Inc.
|
Dec. 31, 2011
Term Loan due 2020
Term Loan
Viento Funding II, Inc.
|
Dec. 31, 2012
Bonds due 2017
Bonds
High Lonesome Mesa, LLC
|
Dec. 31, 2011
Bonds due 2017
Bonds
High Lonesome Mesa, LLC
|
|
Property, Plant and Equipment [Line Items] | ||||||||||||||||||||||
Generating capacity (in megawatts) | 4,619 | 4,314 | 305 | |||||||||||||||||||
Debt issuance | $ 1,147 | |||||||||||||||||||||
Unsecured debt | 81 | 3,700 | 227 | |||||||||||||||||||
Debt | 1,438 | 4,912 | 191 | 207 | 69 | 72 | ||||||||||||||||
Long-term debt | 1,056 | 4,912 | 191 | |||||||||||||||||||
Cash and cash equivalents, without contractual dividend restrictions | 815 | |||||||||||||||||||||
Cash and cash equivalents | 888 | 1,221 | 948 | 680 | 95 | 213 | 295 | 237 | ||||||||||||||
Sale leaseback transaction lease period (years) | 33 years 9 months | 30 years | ||||||||||||||||||||
Lease payments not paid | 76 | |||||||||||||||||||||
Rent paid for sales leaseback transaction | 7 | |||||||||||||||||||||
Write off of unamortized deferred financing costs and debt discounts | $ 15 |
Property, Plant and Equipment (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | $ 5,947 | $ 5,767 | |||||
Less accumulated depreciation and amortization | 1,431 | 1,295 | |||||
Net property, plant and equipment | 4,516 | 4,472 | |||||
Construction work in progress related to new gas and wind projects under construction | 466 | 357 | |||||
Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 3,338 | 3,337 | |||||
Less accumulated depreciation and amortization | 1,260 | 1,152 | |||||
Net property, plant and equipment | 2,078 | 2,185 | |||||
Land
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 36 | 36 | |||||
Land | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 32 | 32 | |||||
Power plant facilities
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 4,612 | 4,560 | |||||
Power plant facilities | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 1,293 | 1,309 | |||||
Leasehold improvements
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 4 | 4 | |||||
Leasehold improvements | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 0 | 0 | |||||
Emission allowances
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 672 | 672 | |||||
Emission allowances | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 639 | 639 | |||||
Construction in progress
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 495 | [1] | 366 | [1] | |||
Construction in progress | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 28 | [1] | 8 | [1] | |||
Equipment, furniture and fixtures
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 128 | 129 | |||||
Equipment, furniture and fixtures | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 13 | 15 | |||||
Plant and equipment under lease financing
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 0 | 0 | |||||
Plant and equipment under lease financing | Midwest Generation LLC
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 1,333 | 1,334 | |||||
Amortization expense | 42 | 42 | 42 | ||||
Accumulated depreciation on sale leaseback transactions | 514 | 472 | |||||
Power sales agreements
|
|||||||
Property, plant and equipment: | |||||||
Gross property, plant and equipment | 1,700 | ||||||
Less accumulated depreciation and amortization | $ 277 | ||||||
|
Income Taxes (Accounting for Uncertainty in Income Taxes) (Details) (USD $)
|
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Balance at January 1 | $ 171,000,000 | $ 153,000,000 | $ 115,000,000 | |||||
Tax positions taken during the current year, Increases | 0 | 9,000,000 | 0 | |||||
Tax positions taken during the current year, Decreases | 0 | 0 | 0 | |||||
Tax positions taken during a prior year, Increases | 0 | 9,000,000 | 126,000,000 | |||||
Tax positions taken during a prior year, Decreases | (12,000,000) | 0 | (80,000,000) | |||||
Decreases for settlements during the period | 0 | 0 | (8,000,000) | |||||
Decreases resulting from a lapse in statute of limitations | 0 | 0 | 0 | |||||
Balance at December 31 | 159,000,000 | 171,000,000 | 153,000,000 | |||||
Unrecognized tax benefits that would impact effective tax rate | 154,000,000 | 166,000,000 | ||||||
Reasonably possible reduction of unrecognized tax benefits | 1,000,000 | |||||||
Accrued interest and penalties | 65,000,000 | 51,000,000 | ||||||
Net after-tax interest and penalties recognized in income tax expense | 8,000,000 | 10,000,000 | 19,000,000 | |||||
IRS Examination
|
||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Estimated potential future federal tax payment as of the balance sheet date, including interest and penalties, based on a proposed adjustment | 200,000,000 | |||||||
Penalty for understatement of tax liability (as a percent) | 40.00% | |||||||
Midwest Generation LLC
|
||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Balance at January 1 | 44,000,000 | 44,000,000 | 0 | |||||
Tax positions taken during the current year, Increases | 0 | 0 | 0 | |||||
Tax positions taken during the current year, Decreases | 0 | 0 | 0 | |||||
Tax positions taken during a prior year, Increases | 0 | [1] | 0 | [1] | 44,000,000 | [1] | ||
Tax positions taken during a prior year, Decreases | 0 | 0 | 0 | |||||
Decreases for settlements during the period | 0 | 0 | 0 | |||||
Decreases resulting from a lapse in statute of limitations | 0 | 0 | 0 | |||||
Balance at December 31 | 44,000,000 | 44,000,000 | 44,000,000 | |||||
Unrecognized tax benefits that would impact effective tax rate | 41,000,000 | 41,000,000 | ||||||
Accrued interest and penalties | 23,000,000 | 20,000,000 | ||||||
Net after-tax interest and penalties recognized in income tax expense | 2,000,000 | 3,000,000 | 10,000,000 | |||||
Homer City
|
||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||
Tax deduction due to change in tax treatment of entity | $ 1,000,000,000 | |||||||
|
Restructuring Activities (Liabilities Subject to Compromise) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 16, 2012
|
Nov. 15, 2012
|
Dec. 31, 2011
|
---|---|---|---|---|
Liabilities Subject to Compromise | ||||
Senior notes, net | $ 3,700 | |||
Accounts payable | 32 | |||
Interest payable | 154 | 38 | 97 | |
Other | 73 | |||
Total liabilities subject to compromise | 3,959 | 0 | ||
Midwest Generation LLC
|
||||
Liabilities Subject to Compromise | ||||
Accounts payable | 29 | |||
Interest payable | 13 | |||
Lease financing | 434 | |||
Other | 53 | |||
Total liabilities subject to compromise | $ 529 | $ 0 |
Condensed Combined Debtors' Financial Information (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Combined Debtors' Financial Information | Debtors' Condensed Combined Statement of Operations For the year ended December 31, 2012
Debtors' Condensed Combined Statement of Comprehensive Loss For the year ended December 31, 2012
Debtors' Condensed Combined Statement of Financial Position As of December 31, 2012
Debtors' Condensed Combined Statement of Cash Flows For the Year Ended December 31, 2012
|
Fair Value Measurements (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value by Level | The following table sets forth Midwest Generation's assets and liabilities that were accounted for at fair value by level within the fair value hierarchy:
The following table sets forth EME's consolidated assets and liabilities that were accounted for at fair value by level within the fair value hierarchy:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Changes in Fair Value of Level 3 Assets and Liabilities | The following table sets forth a summary of changes in the fair value of EME's consolidated Level 3 net derivative assets and liabilities:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Valuation Techniques and Significant Unobservable Inputs Used to Determine Fair Value for Level 3 Assets and Liabilities | The following table sets forth the valuation techniques and significant unobservable inputs used to determine fair value for EME's consolidated Level 3 assets and liabilities at December 31, 2012:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Long-Term Debt, Including Current Portion | The carrying amounts and fair values of EME's long-term debt were as follows:
|
Income Taxes (Intercompany Tax-Allocation Agreement) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2012
Midwest Generation LLC
|
Dec. 31, 2012
Midwest Generation LLC
Hypothetical Tax Return
|
Dec. 31, 2011
Due to Affiliates
Midwest Generation LLC
|
|||||||
Operating Loss Carryforwards [Line Items] | ||||||||||
Tax allocation payments, paid for reallocation of tax obligations | $ 185 | |||||||||
Non-cash distribution to parent | 222 | [1] | 106 | [2] | 106 | |||||
Income tax allocation agreements | $ 13 | |||||||||
|
Derivative Instruments and Hedging Activities (Credit Risk) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Revenue, Major Customer [Line Items] | |||
Accounts receivable | 73 | 107 | |
PJM Interconnection, LLC
|
|||
Revenue, Major Customer [Line Items] | |||
Major customer, percentage of sales | 64.00% | 63.00% | 65.00% |
Midwest Generation LLC | PJM Interconnection, LLC
|
|||
Revenue, Major Customer [Line Items] | |||
Major customer, percentage of sales | 92.00% | 81.00% | 79.00% |
Accounts receivable | 40 | 62 |
Compensation and Benefit Plans (Performance Shares) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||
Performance Shares
|
||||||||||
Performance Shares, Weighted-Average Grant-Date Fair Value | ||||||||||
Vesting, market condition, performance period (in years) | 3 years | |||||||||
Unrecognized compensation cost | $ 4.0 | |||||||||
Weighted-average period, recognition of unrecognized compensation cost (in years) | 2 years | |||||||||
Performance Shares, Equity Awards
|
||||||||||
Performance Shares | ||||||||||
Nonvested, at the beginning of the period (in shares) | 84,313 | |||||||||
Granted (in shares) | 16,797 | |||||||||
Forfeited (in shares) | (1,514) | [1] | ||||||||
Vested (shares) | (52,650) | [1] | ||||||||
Transferred to affiliates (in shares) | (5,717) | |||||||||
Nonvested, at the end of the period (in shares) | 41,229 | 84,313 | ||||||||
Performance Shares, Weighted-Average Grant-Date Fair Value | ||||||||||
Nonvested, at the beginning of the period (in dollars per share) | $ 27.50 | |||||||||
Granted (in dollars per share) | $ 51.41 | [2] | $ 31.14 | [2] | $ 32.50 | [2] | ||||
Forfeited (in dollars per share) | $ 37.56 | [1] | ||||||||
Vested (in dollars per share) | $ 25.71 | [1] | ||||||||
Transferred to affiliates (in dollars per share) | $ 27.62 | |||||||||
Nonvested, at the end of the period (in dollars per share) | $ 39.14 | $ 27.50 | ||||||||
Performance Shares, Liability Awards
|
||||||||||
Performance Shares | ||||||||||
Nonvested, at the beginning of the period (in shares) | 84,313 | |||||||||
Granted (in shares) | 16,750 | |||||||||
Forfeited (in shares) | (1,508) | [1] | ||||||||
Vested (shares) | (52,678) | [1] | ||||||||
Transferred to affiliates (in shares) | (5,716) | |||||||||
Nonvested, at the end of the period (in shares) | 41,161 | |||||||||
Performance Shares, Weighted-Average Grant-Date Fair Value | ||||||||||
Nonvested, at the beginning of the period (in dollars per share) | $ 29.48 | |||||||||
Nonvested, at the end of the period (in dollars per share) | $ 46.48 | |||||||||
|
Variable Interest Entities (Consolidated Projects or Entities) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
projects
|
Dec. 31, 2012
Lakota Ridge, LLC and Shaokatan Hills, LLC
projects
|
Feb. 13, 2012
Cedro Hill Project
MW
|
Feb. 13, 2012
Mountain Wind Power I Project
MW
|
Feb. 13, 2012
Mountain Wind Power II Project
MW
|
Feb. 13, 2012
Capistrano Wind Partners
|
Dec. 31, 2012
Capistrano Wind Partners
|
Jan. 31, 2013
Capistrano Wind Partners
Subsequent Event
|
Jan. 31, 2013
Broken Bow I Project
Subsequent Event
|
Dec. 31, 2012
Crofton Bluffs Project
|
Dec. 31, 2012
Variable Interest Entity, Primary Beneficiary
projects
MW
|
Dec. 31, 2011
Variable Interest Entity, Primary Beneficiary
projects
MW
|
Feb. 13, 2012
Agreement to Sell Ownership, Upon Satisfaction of Specific Conditions
Broken Bow I Project
MW
|
Feb. 13, 2012
Agreement to Sell Ownership, Upon Satisfaction of Specific Conditions
Crofton Bluffs Project
MW
|
Feb. 13, 2012
Mission Energy Holding Company
|
Feb. 13, 2012
Mission Energy Holding Company
Capistrano Wind Partners
|
Feb. 13, 2012
Third Party Investors
|
||||||
Details of projects or entities | ||||||||||||||||||||||||
Number of projects consolidated (in projects) | 1 | 15 | 13 | |||||||||||||||||||||
Total generating capacity (in megawatts) | 878 | 570 | ||||||||||||||||||||||
Ownership percentage sold (percent) | 75.00% | |||||||||||||||||||||||
Number of projects sold (projects) | 2 | |||||||||||||||||||||||
Summarized balance sheet information of VIEs | ||||||||||||||||||||||||
Current assets | $ 1,323 | $ 1,941 | $ 74 | $ 36 | ||||||||||||||||||||
Net property, plant and equipment | 4,516 | 4,472 | 1,117 | 675 | ||||||||||||||||||||
Other long-term assets | 1,147 | 1,342 | 90 | 5 | ||||||||||||||||||||
Total Assets | 7,520 | 8,323 | 1,281 | 716 | ||||||||||||||||||||
Current liabilities | 820 | 548 | 50 | 28 | ||||||||||||||||||||
Long-term debt net of current portion | 749 | 4,855 | 186 | 57 | ||||||||||||||||||||
Deferred revenues | 533 | 530 | 156 | 69 | ||||||||||||||||||||
Long-term derivative liabilities | 118 | 90 | 23 | 0 | ||||||||||||||||||||
Other long-term liabilities | 528 | 627 | 40 | 22 | ||||||||||||||||||||
Total Liabilities | 6,788 | 6,659 | 455 | 176 | ||||||||||||||||||||
Noncontrolling interests | 288 | 2 | 288 | 2 | ||||||||||||||||||||
Assets serving as collateral for the debt obligations | 497 | 136 | ||||||||||||||||||||||
Income (loss) from continuing operations before income taxes | (594) | (888) | 65 | 29 | 22 | |||||||||||||||||||
Operating cash flows from continuing operations | (467) | 660 | 577 | 75 | 40 | |||||||||||||||||||
Sale of ownership (in megawatts) | 150 | 61 | 80 | 80 | 40 | |||||||||||||||||||
Variable Interest Entities, Sales Price | 112 | 58 | ||||||||||||||||||||||
Date of sale of certain wind projects to outside investors | December 2012 | January 2013 | ||||||||||||||||||||||
Outside investors contribution | 238 | 46 | 94 | |||||||||||||||||||||
Class A equity ownership percentage (as a percent) | 100.00% | |||||||||||||||||||||||
Preferred equity interests to receive percent of cash available for distribution (as a percent) | 100.00% | |||||||||||||||||||||||
Cash available for distribution includes percent of tax benefits to be realized (as a percent) | 90.00% | |||||||||||||||||||||||
Contributions from noncontrolling interests | 288 | [1] | 4 | 284 | ||||||||||||||||||||
Transfers of assets to Capistrano Wind Partners | $ 21 | [2] | ||||||||||||||||||||||
|
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | $ 5 | $ 5 | $ 50 | ||||||||||||||
Charged to Costs and Expenses | 438 | 0 | 0 | ||||||||||||||
Charged to Other Accounts | 6 | 0 | 3 | ||||||||||||||
Deductions | 0 | 0 | 48 | ||||||||||||||
Balance at End of Year | 449 | 5 | 5 | ||||||||||||||
Customers
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 5 | 5 | 2 | ||||||||||||||
Charged to Costs and Expenses | 0 | 0 | 0 | ||||||||||||||
Charged to Other Accounts | 0 | 0 | 3 | [1] | |||||||||||||
Deductions | 0 | 0 | 0 | ||||||||||||||
Balance at End of Year | 5 | 5 | 5 | ||||||||||||||
All Others
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 0 | 0 | 48 | ||||||||||||||
Charged to Costs and Expenses | 0 | 0 | 0 | ||||||||||||||
Charged to Other Accounts | 0 | 0 | 0 | ||||||||||||||
Deductions | 0 | 0 | 48 | [2] | |||||||||||||
Balance at End of Year | 0 | 0 | 0 | ||||||||||||||
Deferred tax valuation allowance
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 0 | ||||||||||||||||
Charged to Costs and Expenses | 438 | [3] | |||||||||||||||
Charged to Other Accounts | 6 | ||||||||||||||||
Deductions | 0 | ||||||||||||||||
Balance at End of Year | 444 | ||||||||||||||||
Midwest Generation LLC
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 0 | 0 | 48 | ||||||||||||||
Charged to Costs and Expenses | 1,899 | 0 | 0 | ||||||||||||||
Charged to Other Accounts | 12 | 0 | 0 | ||||||||||||||
Deductions | 0 | 0 | 48 | ||||||||||||||
Balance at End of Year | 1,911 | 0 | 0 | ||||||||||||||
Midwest Generation LLC | All Others
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 0 | 0 | 48 | ||||||||||||||
Charged to Costs and Expenses | 1,378 | [4] | 0 | 0 | |||||||||||||
Charged to Other Accounts | 0 | 0 | 0 | ||||||||||||||
Deductions | 0 | 0 | 48 | [5] | |||||||||||||
Balance at End of Year | 1,378 | 0 | 0 | ||||||||||||||
Midwest Generation LLC | All Others | Lehman Brothers
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Deductions | 48 | [2] | |||||||||||||||
Midwest Generation LLC | Deferred tax valuation allowance
|
|||||||||||||||||
Movement in Valuation and qualifying accounts | |||||||||||||||||
Balance at Beginning of Year | 0 | ||||||||||||||||
Charged to Costs and Expenses | 521 | [6] | |||||||||||||||
Charged to Other Accounts | 12 | [6] | |||||||||||||||
Deductions | 0 | ||||||||||||||||
Balance at End of Year | $ 533 | ||||||||||||||||
|
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||||
Deferred tax assets | ||||||||||
Accrued charges and liabilities | $ 234 | $ 303 | ||||||||
Net operating loss carryforwards | 841 | 326 | ||||||||
Production tax and other credit carryforwards | 254 | 194 | ||||||||
Derivative instruments | 49 | 49 | ||||||||
Other | 6 | 0 | ||||||||
Total deferred tax assets, gross | 1,384 | 872 | ||||||||
Valuation allowance | (444) | 0 | ||||||||
Net deferred tax assets | 940 | 872 | ||||||||
Deferred tax liabilities | ||||||||||
Property, plant and equipment - basis differences | 989 | 638 | ||||||||
Deferred investment tax credit | 4 | 5 | ||||||||
State taxes | 28 | 20 | ||||||||
Other | 0 | 6 | ||||||||
Total | 1,021 | 669 | ||||||||
Deferred tax assets and (liabilities), net | (81) | 203 | ||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Included in other assets | 0 | 205 | ||||||||
Included in current liabilities | 0 | 2 | ||||||||
Deferred taxes and tax credits | 81 | 0 | ||||||||
Change in valuation allowance on deferred tax asset | (6) | 0 | 0 | |||||||
Non-cash distribution to parent | 222 | [1] | ||||||||
Tax payments made without corresponding statutory tax | 120 | |||||||||
Federal
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Tax credit carryforwards | 254 | |||||||||
Federal | Expiring in 2031 and 2032
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Net operating loss carryforwards | 2,334 | |||||||||
Federal | Expiring Between 2029 and 2032
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Tax credit carryforwards | 239 | |||||||||
State | Expiring Between 2022 and 2032
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Net operating loss carryforwards | 2,158 | |||||||||
Midwest Generation LLC
|
||||||||||
Deferred tax assets | ||||||||||
State taxes | 0 | 3 | ||||||||
Deferred income | 2 | 1 | ||||||||
Accrued charges and liabilities | 16 | 9 | ||||||||
Net operating loss carryforwards | 0 | 19 | ||||||||
Derivative instruments | 24 | 9 | ||||||||
Impairment of loan to affiliate - tax | 539 | 0 | ||||||||
Property, plant and equipment - basis differences | 0 | 15 | ||||||||
Total deferred tax assets, gross | 581 | 56 | ||||||||
Valuation allowance | (533) | 0 | ||||||||
Net deferred tax assets | 48 | 56 | ||||||||
Deferred tax liabilities | ||||||||||
Property, plant and equipment - basis differences | 45 | 0 | ||||||||
State taxes | 3 | 0 | ||||||||
Total | 48 | 0 | ||||||||
Deferred tax assets and (liabilities), net | 0 | 56 | ||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Included in current assets | 0 | 14 | ||||||||
Included in other assets | 0 | 42 | ||||||||
Change in valuation allowance on deferred tax asset | (12) | 0 | 0 | |||||||
Non-cash distribution to parent | 106 | [2] | ||||||||
Midwest Generation LLC | Federal | Expiring in 2031 and 2032
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Net operating loss carryforwards | 291 | |||||||||
Midwest Generation LLC | State | Expiring Between 2025 and 2032
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Net operating loss carryforwards | 199 | |||||||||
Other Long-Term Assets
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Income tax allocation agreements | 18 | 86 | ||||||||
Payables to Affiliates
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Income tax allocation agreements | (33) | (174) | ||||||||
Other Long-Term Liabilities
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Income tax allocation agreements | (21) | |||||||||
Accumulated other comprehensive loss
|
||||||||||
Deferred tax assets | ||||||||||
Valuation allowance | (6) | |||||||||
Accumulated other comprehensive loss | Midwest Generation LLC
|
||||||||||
Deferred tax assets | ||||||||||
Valuation allowance | (12) | [3] | ||||||||
Hypothetical Tax Return | Midwest Generation LLC
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Non-cash distribution to parent | 106 | |||||||||
Provision (Benefit) for Income Taxes
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Change in valuation allowance on deferred tax asset | 438 | |||||||||
Provision (Benefit) for Income Taxes | Midwest Generation LLC
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Change in valuation allowance on deferred tax asset | 521 | [3] | ||||||||
Edison International
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Tax benefits generated and utilized by EIX under tax allocation agreement | 102 | |||||||||
Tax benefits generated but not yet utilized by EIX under tax allocation agreement | 1,071 | |||||||||
Edison International | Capistrano Wind Holdings
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Tax benefits generated under tax allocation agreement | 40 | |||||||||
Edison International | Capistrano Wind, LLC
|
||||||||||
Classification of net accumulated deferred income taxes | ||||||||||
Tax benefits generated and utilized by EIX under tax allocation agreement | $ 16 | |||||||||
|
Compensation and Benefit Plans (Plan Assets) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
Master Trust Investments
Level 3
|
Dec. 31, 2011
Master Trust Investments
Level 3
|
Dec. 31, 2012
Pension Plans
|
Dec. 31, 2010
Pension Plans
|
Dec. 31, 2012
Pension Plans
Midwest Generation LLC
|
Dec. 31, 2011
Pension Plans
Midwest Generation LLC
|
Dec. 31, 2010
Pension Plans
Midwest Generation LLC
|
Dec. 31, 2012
Pension Plans
U.S. Equities
|
Dec. 31, 2012
Pension Plans
Non-U.S. Equities
|
Dec. 31, 2012
Pension Plans
Fixed Income
|
Dec. 31, 2012
Pension Plans
Opportunistic and/or Alternative Investments
|
Dec. 31, 2012
Pension Plans
Other Investments
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate stocks
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
Russell Index
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
MSCI Index
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate stocks
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate stocks
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate stocks
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate stocks
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Partnerships/joint ventures
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Partnerships/joint ventures
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Partnerships/joint ventures
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Asset backed securities including distressed mortgages
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Asset backed securities including distressed mortgages
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Common/collective funds
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Common/collective funds
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Common/collective funds
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Common/collective funds
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Common/collective funds
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Common/collective funds
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Common/collective funds
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Common/collective funds
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Equity index fund
S&P 500 Index
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Equity index fund
S&P 500 Index
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Equity index fund
EAFE Index
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Equity index fund
EAFE Index
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Undervalued securities
Russell Index
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Undervalued securities
Russell Index
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Non-index fund
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Non-index fund
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Global asset allocation fund
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Global asset allocation fund
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate bonds
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate bonds
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate bonds
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate bonds
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate bonds
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate bonds
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Corporate bonds
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Corporate bonds
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Collateralized mortgage obligations and other asset backed securities
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Collateralized mortgage obligations and other asset backed securities
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
U.S. government and agency securities
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
U.S. government and agency securities
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
U.S. government and agency securities
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other investment entities
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other investment entities
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other investment entities
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other investment entities
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other investment entities
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other investment entities
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other investment entities
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other investment entities
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Registered investment companies
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Registered investment companies
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Registered investment companies
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Registered investment companies
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Registered investment companies
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Registered investment companies
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Registered investment companies
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Registered investment companies
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Interest-bearing cash
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Interest-bearing cash
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Interest-bearing cash
Level 3
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other Investments
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other Investments
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other Investments
Level 1
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other Investments
Level 1
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other Investments
Level 2
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other Investments
Level 2
|
Dec. 31, 2012
Pension Plans
Master Trust Investments
Other Investments
Level 3
|
Dec. 31, 2011
Pension Plans
Master Trust Investments
Other Investments
Level 3
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Target allocations for plan assets (as a percent) | 30.00% | 16.00% | 35.00% | 15.00% | 4.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Permissible range of asset class portfolio weights, plus or minus (as a percent) | 3.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of premium based on assumed average equity risk premium over cash (as a percent) | 5.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of premium included in estimated rate of return of public equity (as a percent) | 2.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets, before receivables (payables) | $ 3,580 | $ 3,192 | $ 1,108 | $ 829 | $ 2,058 | $ 1,915 | $ 414 | $ 448 | $ 743 | [1] | $ 642 | [1] | $ 743 | [1] | $ 642 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 0 | [1] | $ 580 | [2] | $ 588 | [2] | $ 0 | [2] | $ 0 | [2] | $ 166 | [2] | $ 140 | [2] | $ 414 | [2] | $ 448 | [2] | $ 635 | [3] | $ 582 | [3] | $ 0 | [3] | $ 0 | [3] | $ 635 | [3] | $ 582 | [3] | $ 0 | [3] | $ 0 | [3] | $ 508 | [4] | $ 497 | [4] | $ 0 | [4] | $ 0 | [4] | $ 508 | [4] | $ 497 | [4] | $ 0 | [4] | $ 0 | [4] | $ 65 | $ 53 | $ 592 | [5] | $ 455 | [5] | $ 242 | [5] | $ 104 | [5] | $ 350 | [5] | $ 351 | [5] | $ 0 | [5] | $ 0 | [5] | $ 271 | [6] | $ 247 | [6] | $ 0 | [6] | $ 0 | [6] | $ 271 | [6] | $ 247 | [6] | $ 0 | [6] | $ 0 | [6] | $ 126 | [7] | $ 108 | [7] | $ 98 | [7] | $ 79 | [7] | $ 28 | [7] | $ 29 | [7] | $ 0 | [7] | $ 0 | [7] | $ 24 | $ 5 | $ 24 | $ 5 | $ 0 | $ 0 | $ 0 | $ 0 | $ 101 | $ 68 | $ 1 | $ (1) | $ 100 | $ 69 | $ 0 | $ 0 | ||||||||||||||||||||||||||||||||||||||||
Receivables and payables, net | (38) | (39) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net plan assets available for benefits | 414 | 448 | 215 | 164 | 149 | 121 | 109 | 3,542 | 3,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of performance to benchmark (as a percent) | 60.00% | 40.00% | 29.00% | 29.00% | 11.00% | 10.00% | 28.00% | 27.00% | 25.00% | 23.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual plan asset allocation (as a percent) | 56.00% | 55.00% | 6.00% | 8.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of assets below investment grade | 7 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of publicly traded equity investments located in United States (as a percent) | 66.00% | 69.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Change in fair value of Level 3 investments | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at beginning of period | 448 | 345 | 177 | 164 | 149 | 121 | 109 | 3,153 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual return on plan assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets still held at end of period | 88 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Relating to assets sold during the period | 13 | 22 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchases | 98 | 130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions | (233) | (55) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transfers in and /or out of Level 3 | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of plan assets at end of period | $ 414 | $ 448 | $ 215 | $ 164 | $ 149 | $ 121 | $ 109 | $ 3,542 | $ 3,153 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Compensation and Benefit Plans (Employee Savings Plan) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Defined Contribution Plans [Line Items] | |||
Employer contribution to 401 (k) defined contribution savings plan | $ 17 | $ 15 | $ 14 |
Midwest Generation LLC
|
|||
Defined Contribution Plans [Line Items] | |||
Employer contribution to 401 (k) defined contribution savings plan | $ 7 | $ 6 | $ 5 |
Compensation and Benefit Plans (Stock Options) (Details) (USD $)
In Millions, except Share data, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Stock Options | |
Outstanding, at the beginning of period (in options) | 3,344,611 |
Granted (in options) | 660,222 |
Expired (in options) | (112,129) |
Transferred to affiliates (in options) | (270,312) |
Forfeited (in options) | (41,094) |
Exercised (in options) | (881,064) |
Outstanding, at the end of period (in options) | 2,700,234 |
Vested and expected to vest, at the end of period (in options) | 2,586,910 |
Exercisable, at the end of period (in options) | 1,286,055 |
Weighted-Average Exercise Price | |
Outstanding, at the beginning of period (in dollars per option) | $ 34.05 |
Granted (in dollars per option) | $ 43.16 |
Expired (in dollars per option) | $ 47.39 |
Transferred to affiliates (in dollars per option) | $ 33.13 |
Forfeited (in dollars per option) | $ 39.88 |
Exercised (in dollars per option) | $ 26.39 |
Outstanding, at the end of period (in dollars per option) | $ 38.23 |
Vested and expected to vest, at the end of period (in dollars per option) | $ 38.23 |
Exercisable, at the end of period (in dollars per option) | $ 38.30 |
Weighted-Average Remaining Contractual Term (Years) | |
Outstanding, at the end of period | 6 years 2 months 27 days |
Vested and expected to vest, at the end of period | 6 years 1 month 28 days |
Exercisable, at the end of period | 4 years 2 months 19 days |
Aggregate Intrinsic Value | |
Vested and expected to vest, at the end of period | $ 20 |
Exercisable, at the end of period | 10 |
Stock Options
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
General expiration period after grant date | 10 years |
Vesting period | 4 years |
Number of years from the grant of options during which dividend equivalents accrue | 5 years |
Aggregate Intrinsic Value | |
Unrecognized compensation cost | $ 4.0 |
Weighted-average period, recognition of unrecognized compensation cost (in years) | 2 years |
Income Taxes (Effective Tax Rate Reconciliation) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | ||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||||
Effective Tax Rate | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ (637) | $ (888) | $ 65 | |||||||||||||
Provision (benefit) for income tax at federal statutory rate of 35% | (223) | (311) | 23 | |||||||||||||
Increase (decrease) in income tax from | ||||||||||||||||
State tax - net of federal benefit | 11 | [1] | (56) | [1] | 16 | [1] | ||||||||||
Change in valuation allowance | 438 | 0 | 0 | |||||||||||||
Production tax credits, net | (68) | (66) | (61) | |||||||||||||
Qualified production deduction | 0 | (6) | 15 | |||||||||||||
Deferred tax adjustments | 0 | (8) | 10 | |||||||||||||
Resolution of 1986-2002 state tax issues | 0 | 0 | (16) | |||||||||||||
Taxes on income allocated to noncontrolling interests | (4) | 0 | 1 | |||||||||||||
Other | 6 | 6 | (4) | |||||||||||||
Provision (benefit) for income taxes from continuing operations | 160 | (441) | (16) | |||||||||||||
Effective tax rate (as a percent) | 50.00% | |||||||||||||||
Federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | |||||||||||||
State tax expense (benefit) | 0 | (44) | 9 | |||||||||||||
Edison International
|
||||||||||||||||
Increase (decrease) in income tax from | ||||||||||||||||
State tax expense (benefit) | 3 | 6 | 7 | |||||||||||||
Midwest Generation LLC
|
||||||||||||||||
Effective Tax Rate | ||||||||||||||||
Income (loss) from continuing operations before income taxes | (1,526) | (442) | 357 | |||||||||||||
Provision (benefit) for income tax at federal statutory rate of 35% | (534) | (155) | 125 | |||||||||||||
Increase (decrease) in income tax from | ||||||||||||||||
State tax - net of federal benefit | (52) | (19) | 14 | |||||||||||||
Change in valuation allowance | 521 | 0 | 0 | |||||||||||||
Qualified production deduction | 0 | 0 | (7) | |||||||||||||
Deferred tax adjustments | 0 | 0 | 9 | |||||||||||||
Other | 3 | 2 | 1 | |||||||||||||
Provision (benefit) for income taxes from continuing operations | (23) | (7) | (27) | (5) | (231) | 38 | (11) | 32 | (62) | (172) | 142 | |||||
Effective tax rate (as a percent) | 4.00% | 39.00% | 40.00% | |||||||||||||
Federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% | |||||||||||||
State tax expense (benefit) | $ 0 | $ 12 | $ 24 | |||||||||||||
|
Derivative Instruments and Hedging Activities (Income Statement Impact of Derivative Instruments) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|||||||
Midwest Generation LLC | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Ineffective portion recognized in earnings | $ 0 | $ 4 | $ 7 | ||||||
Cash Flow Hedges | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Ineffective portion recognized in earnings | 0 | 4 | 6 | ||||||
Cash Flow Hedges | Midwest Generation LLC
|
|||||||||
Derivative [Line Items] | |||||||||
Beginning of period derivative gains (losses) | 34 | [1] | 37 | [1] | |||||
Effective portion of changes in fair value | 7 | [1] | 38 | [1] | |||||
End of period derivative gains (losses) | (2) | [1] | 34 | [1] | |||||
Cash Flow Hedges | Midwest Generation LLC | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Reclassification to earnings | (43) | [1] | (41) | [1] | |||||
Economic Hedges | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Effect of realized and unrealized gains (losses) | 31 | 5 | |||||||
Economic Hedges | Fuel
|
|||||||||
Derivative [Line Items] | |||||||||
Effect of realized and unrealized gains (losses) | 2 | 3 | |||||||
Economic Hedges | Midwest Generation LLC | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Effect of realized and unrealized gains (losses) | 31 | 2 | |||||||
Economic Hedges | Midwest Generation LLC | Fuel
|
|||||||||
Derivative [Line Items] | |||||||||
Effect of realized and unrealized gains (losses) | 2 | 3 | |||||||
Trading Activities | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Effect of realized and unrealized gains (losses) | 68 | 76 | |||||||
Commodity contracts | Cash Flow Hedges
|
|||||||||
Derivative [Line Items] | |||||||||
Beginning of period derivative gains (losses) | 35 | [2] | 43 | [2] | |||||
Effective portion of changes in fair value | 5 | [2] | 55 | [2] | |||||
End of period derivative gains (losses) | (1) | [2] | 35 | [2] | |||||
Commodity contracts | Cash Flow Hedges | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Reclassification to earnings | (41) | [2] | (63) | [2] | |||||
Interest rate contracts | Cash Flow Hedges
|
|||||||||
Derivative [Line Items] | |||||||||
Beginning of period derivative gains (losses) | (90) | [2] | (16) | [2] | |||||
Effective portion of changes in fair value | (28) | [2] | (74) | [2] | |||||
End of period derivative gains (losses) | (118) | [2] | (90) | [2] | |||||
Interest rate contracts | Cash Flow Hedges | Operating revenues
|
|||||||||
Derivative [Line Items] | |||||||||
Reclassification to earnings | $ 0 | [2] | $ 0 | [2] | |||||
|
Condensed Combined Debtors' Financial Information
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reorganizations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Combined Debtors' Financial Information | Condensed Combined Debtors' Financial Information (EME only) The financial statements below represent the condensed combined financial statement of the Debtor Entities. Non-debtor EME subsidiaries are accounted for as non-consolidated subsidiaries in these financial statements, as such, their net loss is included as "Equity in loss of non-debtor entities, net of tax" in the Debtors' Statement of Operations and its net assets are included as "Investment in non-debtor entities" in the Debtors' Statement of Financial Position. Intercompany transactions among the Debtor Entities have been eliminated in the condensed combined financial statements of the Debtor Entities contained here. Debtors' Condensed Combined Statement of Operations For the year ended December 31, 2012
Debtors' Condensed Combined Statement of Comprehensive Loss For the year ended December 31, 2012
Debtors' Condensed Combined Statement of Financial Position As of December 31, 2012
Debtors' Condensed Combined Statement of Cash Flows For the Year Ended December 31, 2012
|
Summary of Significant Accounting Policies (Inventory) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Inventory | ||
Coal, fuel oil and other raw materials | $ 123 | $ 120 |
Spare parts, materials and supplies | 52 | 49 |
Total inventory | 175 | 169 |
Midwest Generation LLC
|
||
Inventory | ||
Coal, fuel oil and other raw materials | 119 | 117 |
Spare parts, materials and supplies | 46 | 42 |
Total inventory | $ 165 | $ 159 |
Asset Impairments and Other Charges (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Impairments and Other Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset Impairments and Other Charges | Asset impairments and other charges for EME consisted of the following:
Asset impairments and other charges for Midwest Generation consisted of the following:
|
Income Taxes (Components of Income Tax Expense) (Details) (USD $)
In Millions, unless otherwise specified |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Sep. 30, 2012
|
Jun. 30, 2012
|
Mar. 31, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Jun. 30, 2011
|
Mar. 31, 2011
|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
|
Current: | |||||||||||
Federal | $ 0 | $ 48 | $ (321) | ||||||||
State | 0 | (44) | 9 | ||||||||
Total current | 0 | 4 | (312) | ||||||||
Deferred: | |||||||||||
Federal | 26 | (389) | 281 | ||||||||
State | 134 | (56) | 15 | ||||||||
Total deferred | 160 | (445) | 296 | ||||||||
Provision (benefit) for income taxes from continuing operations | 160 | (441) | (16) | ||||||||
Discontinued operations | (73) | (411) | 44 | ||||||||
Total | 87 | (852) | 28 | ||||||||
Components of income (loss) before income taxes: | |||||||||||
Continuing operations | (637) | (888) | 65 | ||||||||
Discontinued operations | (185) | (1,043) | 126 | ||||||||
Total | (822) | (1,931) | 191 | ||||||||
California Franchise Tax Board
|
|||||||||||
Components of income (loss) before income taxes: | |||||||||||
Tax benefit resulting from acceptance of tax positions | 16 | ||||||||||
Midwest Generation LLC
|
|||||||||||
Current: | |||||||||||
Federal | 0 | 2 | 112 | ||||||||
State | 0 | 12 | 24 | ||||||||
Total current | 0 | 14 | 136 | ||||||||
Deferred: | |||||||||||
Federal | (76) | (145) | 7 | ||||||||
State | 14 | (41) | (1) | ||||||||
Total deferred | (62) | (186) | 6 | ||||||||
Provision (benefit) for income taxes from continuing operations | (23) | (7) | (27) | (5) | (231) | 38 | (11) | 32 | (62) | (172) | 142 |
Components of income (loss) before income taxes: | |||||||||||
Continuing operations | $ (1,526) | $ (442) | $ 357 |
Environmental Developments (Details) (Midwest Generation LLC, USD $)
In Millions, unless otherwise specified |
12 Months Ended |
---|---|
Dec. 31, 2012
|
|
Joliet unit 6
|
|
Environmental developments | |
Estimated cost of retrofitting | $ 75 |
Joliet Unit 7
|
|
Environmental developments | |
Estimated cost of retrofitting | 111 |
Joliet Unit 8
|
|
Environmental developments | |
Estimated cost of retrofitting | 124 |
Powerton 5
|
|
Environmental developments | |
Estimated cost of retrofitting | 127 |
Powerton 6
|
|
Environmental developments | |
Estimated cost of retrofitting | 69 |
Waukegan Station 7
|
|
Environmental developments | |
Estimated cost of retrofitting | 59 |
Waukegan Station 8
|
|
Environmental developments | |
Estimated cost of retrofitting | 64 |
Will County 3
|
|
Environmental developments | |
Estimated cost of retrofitting | 104 |
Will County 4
|
|
Environmental developments | |
Estimated cost of retrofitting | $ 90 |
Compensation and Benefit Plans (Tables)
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Options Activity | A summary of the status of EIX's stock options granted to EME employees is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Supplemental Data on Stock-Based Compensation | Supplemental Data on Stock-Based Compensation
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Options
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used in Valuation Model | The Black-Scholes option-pricing model requires various assumptions noted in the following table:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Performance Shares
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Assumptions Used in Valuation Model | The Monte Carlo simulation valuation model requires various assumptions noted in the following table:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Shares Activity | A summary of the status of EIX nonvested performance shares granted to EME employees is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Units
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Shares Activity | The following is a summary of the status of EIX nonvested restricted stock units granted to EME employees:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension Plans
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information on Plan Assets and Benefit Obligations | Information on plan assets and benefit obligations is shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense Components for Plans | Expense components:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Expense | The following are weighted-average assumptions used to determine expenses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefit Payments to Be Paid | The following are benefit payments, which reflect expected future service, expected to be paid:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Plan Assets by Asset Class and Level | The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2012 by asset class and level within the fair value hierarchy:
The following table sets forth the Master Trust investments that were accounted for at fair value as of December 31, 2011 by asset class and level within the fair value hierarchy:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Fair Value of Level 3 Investments | The following table sets forth a summary of changes in the fair value of Level 3 investments for 2012 and 2011:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Postretirement Benefits Other Than Pensions
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information on Plan Assets and Benefit Obligations | Information on plan assets and benefit obligations is shown below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Expense Components for Plans | Expense components:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income (Loss) | Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Expense | The following are weighted-average assumptions used to determine expense:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Benefit Payments to Be Paid | The following benefit payments are expected to be paid:
|
Summary of Significant Accounting Policies (Property, Plant and Equipment) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2010
|
||||
Property, Plant and Equipment [Line Items] | ||||||
Interest capitalized | $ 31 | $ 27 | $ 54 | |||
Power plant facilities | Minimum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 2 years 9 months | |||||
Power plant facilities | Minimum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 2 years 9 months | |||||
Power plant facilities | Maximum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 35 years | |||||
Power plant facilities | Maximum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 30 years | |||||
Emission allowances | Minimum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 25 years | |||||
Emission allowances | Minimum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 25 years | |||||
Emission allowances | Maximum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 33 years 9 months | |||||
Emission allowances | Maximum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 33 years 9 months | |||||
Equipment, furniture and fixtures | Minimum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 3 years | |||||
Equipment, furniture and fixtures | Minimum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 3 years | |||||
Equipment, furniture and fixtures | Maximum
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 10 years | |||||
Equipment, furniture and fixtures | Maximum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 7 years | |||||
Plant and equipment under lease financing | Minimum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 30 years | |||||
Plant and equipment under lease financing | Maximum | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 33 years 9 months | |||||
Joliet Unit 6 | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 6 years | |||||
Joliet Units 7 and 8 | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 18 years | [1] | ||||
Powerton Station | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 21 years | [1] | ||||
Will County Station | Midwest Generation LLC
|
||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, useful lives (in years) | 17 years | |||||
|
Debt and Credit Agreements (Debt Covenants) (Details) (USD $)
|
12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Period of debt service coverage ratio (months) | 12 months | |||||||||||
High Lonesome Mesa, LLC
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1],[2] | ||||||||||
Actual debt service coverage ratio | 1.37 | [1],[2],[3] | ||||||||||
Viento Funding II, Inc.
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1],[2] | ||||||||||
Actual debt service coverage ratio | 2.49 | [1],[2] | ||||||||||
Tapestry Wind, LLC
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1] | ||||||||||
Actual debt service coverage ratio | 1.34 | [1] | ||||||||||
Laredo Ridge
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1] | ||||||||||
Actual debt service coverage ratio | 1.73 | [1] | ||||||||||
Cedro Hill Project
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1] | ||||||||||
Actual debt service coverage ratio | 1.53 | [1] | ||||||||||
Broken Bow I Project
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1],[4] | ||||||||||
Crofton Bluffs
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required debt service coverage ratio | 1.20 | [1],[4] | ||||||||||
American Bituminous
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Required reserve | 20,000,000 | [5] | ||||||||||
Required reserve, funded status | 4,000,000 | [5] | ||||||||||
EME Subsidiaries
|
||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Restriction on Net Assets | 1,800,000,000 | |||||||||||
|
Fair Value Measurements (Quantitative Information About Level 3 Fair Value Measurements) (Details) (USD $)
In Millions, unless otherwise specified |
12 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
Dec. 31, 2011
|
Dec. 31, 2012
Level 3
|
Dec. 31, 2011
Level 3
|
Dec. 31, 2012
Level 3
Electricity Congestion Contracts
|
Dec. 31, 2012
Level 3
Electricity Congestion Contracts
Latest Auction Pricing
Congestion Prices
Minimum
|
Dec. 31, 2012
Level 3
Electricity Congestion Contracts
Latest Auction Pricing
Congestion Prices
Maximum
|
Dec. 31, 2012
Level 3
Electricity Congestion Contracts
Latest Auction Pricing
Congestion Prices
Weighted Average
|
Dec. 31, 2012
Level 3
Electricity Power Contracts
|
Dec. 31, 2012
Level 3
Electricity Power Contracts
Discounted Cash Flow
Power Prices
Minimum
|
Dec. 31, 2012
Level 3
Electricity Power Contracts
Discounted Cash Flow
Power Prices
Maximum
|
Dec. 31, 2012
Level 3
Electricity Power Contracts
Discounted Cash Flow
Power Prices
Weighted Average
|
Dec. 31, 2012
Level 3
Netting
|
|
Quantitative Information About Level 3 Measurements [Line Items] | |||||||||||||
Fair Value, Assets | $ 705 | $ 1,281 | $ 52 | $ 95 | $ 71 | $ 2 | $ (21) | ||||||
Fair Value, Liabilities | $ 118 | $ 91 | $ 1 | $ 12 | $ 20 | $ 2 | $ (21) | ||||||
Fair Value inputs, price level | (8.93) | 18.03 | 0.19 | 22.54 | 48.85 | 39.62 |
Quarterly Financial Data (Tables)
|
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Data | The following table summarizes the unaudited quarterly statements of operations for EME. Amounts have been restated to reflect discontinued operations in all periods presented.
The following table summarizes the unaudited quarterly statements of operations for Midwest Generation.
|
Summary of Significant Accounting Policies
|
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2012
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies (EME and Midwest Generation, except as noted ) This is a combined annual report of Edison Mission Energy (EME) and its indirect subsidiary Midwest Generation, LLC (Midwest Generation). EME is a holding company whose subsidiaries and affiliates are engaged in the business of developing, acquiring, owning or leasing, operating and selling energy and capacity from independent power production facilities. EME also sells energy and capacity under contracts to specific purchasers, or on a merchant basis in the marketplace and into wholesale markets. It also engages in hedging and energy trading activities in power markets, and provides scheduling and other services through its Edison Mission Marketing & Trading, Inc. (EMMT) subsidiary. EME's coal-fired facilities are primarily owned or leased and operated by Midwest Generation. As of December 31, 2012, Midwest Generation operated 4,619 megawatts (MW) of power plants in Illinois (the Midwest Generation plants) based on installed capacity acknowledged by PJM Interconnection, LLC (PJM):
Midwest Generation leases the Powerton Station and Units 7 and 8 of the Joliet Station from third-party lessors pursuant to a sale-leaseback transaction completed in August 2000 (the Powerton and Joliet Sale Leaseback). Midwest Generation's obligations under these leases are guaranteed by EME. In connection with the Powerton and Joliet Sale Leaseback, Midwest Generation facilitated the issuance of lessor debt of $1.147 billion in the form of pass-through certificates (the Senior Lease Obligation Bonds). In December 2012, EME completed a transaction that transferred substantially all of the remaining assets and certain specified liabilities of its coal-fired generating facility in Indiana County, Pennsylvania (Homer City) as well as its leasehold interest in the Homer City generating station to an affiliate of General Electric Capital Corporation (GECC). EME is incorporated under the state laws of Delaware and is an indirect subsidiary of Edison International (EIX). Midwest Generation, a Delaware limited liability company, is a wholly owned subsidiary of Edison Mission Midwest Holdings Co. Edison Mission Midwest Holdings is a wholly owned subsidiary of Midwest Generation EME, LLC, which is in turn a wholly owned subsidiary of EME. Chapter 11 Cases During 2012, EME and Midwest Generation experienced operating losses due to low realized energy and capacity prices, high fuel costs and low generation at the Midwest Generation plants. These operating losses are a continuation of trends initially experienced in the fourth quarter of 2011. A continuation of these adverse trends coupled with pending debt maturities and the need to retrofit the Midwest Generation plants to comply with governmental regulations were expected to exhaust EME's and Midwest Generation's liquidity. Consequently, on December 17, 2012, EME and 16 of its wholly owned subsidiaries, Camino Energy Company, Chestnut Ridge Energy Company, Edison Mission Energy Fuel Services, LLC, Edison Mission Fuel Resources, Inc., Edison Mission Fuel Transportation, Inc., Edison Mission Holdings Co., Edison Mission Midwest Holdings Co., Midwest Finance Corp., Midwest Generation EME, LLC, Midwest Generation, Midwest Generation Procurement Services, LLC, Midwest Peaker Holdings, Inc., Mission Energy Westside, Inc., San Joaquin Energy Company, Southern Sierra Energy Company and Western Sierra Energy Company (collectively, the Debtor Entities) filed voluntary petitions for relief under Chapter 11 (the Chapter 11 Cases) of the United States Bankruptcy Code (the Bankruptcy Code) in the United States Bankruptcy Court for the Northern District of Illinois, Eastern Division (the Bankruptcy Court). The Debtor Entities remain in possession of their property and continue their business operations uninterrupted as "debtors-in-possession" under the jurisdiction of the Bankruptcy Court and in accordance with the applicable provisions of the Bankruptcy Code and orders of the Bankruptcy Court. Other than the Debtor Entities, none of EME's other direct or indirect subsidiaries is a debtor in the Chapter 11 Cases. Under Section 362 of the Bankruptcy Code, the filing of the Chapter 11 Cases automatically stayed most actions against the Debtor Entities, including actions to enforce the payment of EME's $3.7 billion of unsecured senior notes and Midwest Generation's obligations related to the Powerton and Joliet Sale Leaseback. Absent an order from the Bankruptcy Court, substantially all of the Debtor Entities' pre-petition liabilities are subject to settlement under a reorganization plan. The filing of the Chapter 11 Cases constitutes events of default of Midwest Generation's obligations under the Powerton and Joliet Sale Leaseback, and under instruments governing the Senior Lease Obligation Bonds issued to finance these leases. On December 16, 2012, EME and Midwest Generation entered into a forbearance agreement with the Powerton and Joliet leases' owner-lessors, the owner-lessors' equity owners, and approximately 72 percent of the holders of the Senior Lease Obligation Bonds. Under the terms of the agreement, the parties agreed to forbear from exercising certain rights and remedies for 60 days. Under the terms of the agreement, Midwest Generation did not make the scheduled payments of $76 million on January 2, 2013 but on February 15, 2013, did pay the ratable portion of the rent due under the leases attributable to the period between December 17, 2012 and January 2, 2013 of $7 million. On February 28, 2013, the parties agreed to extend the forbearance agreement until the earlier of April 5, 2013 or notice of withdrawal from the agreement by approximately 60 percent of the holders of the Senior Lease Obligation Bonds. The Chapter 11 Cases may also constitute events of default under the $191 million nonrecourse financing of the Wildorado, San Juan Mesa and Elkhorn Ridge wind projects (the Viento II Financing) and the $69 million nonrecourse financing of the High Lonesome wind project. Short-term forbearance agreements have been executed with the lenders and the EME subsidiary borrowers to these financing agreements and, as a result, the EME subsidiaries that have obligations pursuant to these financings are currently not included in the Chapter 11 Cases. The Chapter 11 Cases could also potentially give rise to counterparty rights and remedies under other documents. For further discussion, see Note 5—Debt and Credit Agreements and Note 9—Commitments and Contingencies—Powerton and Joliet Sale Leaseback. Midwest Generation is not expected to generate sufficient cash flows from operating activities, and will likely need to borrow funds, receive additional contributions from EME or find other sources of capital to fund the retrofits of its coal-fired plants. EME's ability to provide capital to Midwest Generation is subject to its own liquidity constraints and oversight by EME's creditors. Accordingly, to conserve cash, Midwest Generation has applied for a variance which could delay certain capital expenditures for environmental retrofits at the Midwest Generation plants. There is no assurance that Midwest Generation will be able to obtain such a variance. Following extensive discussions with certain of its unsecured noteholders (the Noteholders) and EIX regarding EME's financial condition, in December 2012, EME entered into a Transaction Support Agreement (the Support Agreement) with these parties. The Support Agreement contemplates agreements between the parties, subject to the execution of definitive documentation and the approval of the Bankruptcy Court, that are intended to maximize the value of the Debtor Entities' estates and ultimately result in a substantial deleveraging of EME's balance sheet. The Support Agreement provides that the parties will negotiate a Master Restructuring Agreement that will provide for amendment and assumption of tax-allocation agreements to provide for tax payments through December 31, 2014, and provides for the cancellation of EIX's 100 percent equity interest in EME on the effective date of a confirmed plan of reorganization. If EME is unable to implement the restructuring contemplated by the Support Agreement, it is unclear whether EME, Midwest Generation and the other Debtor Entities will be able to reorganize their businesses. There can be no assurance as to the timing of receipt of required approvals or when a restructuring plan might become effective. For further discussion, see Note 5—Debt and Credit Agreements and Note 16—Restructuring Activities. At December 31, 2012, EME, and its subsidiaries without contractual dividend restrictions, had cash and cash equivalents of $815 million, which includes Midwest Generation cash and cash equivalents of $95 million. EME's and Midwest Generation's previous revolving credit agreements have been terminated or expired and no longer are sources of liquidity. The accompanying consolidated financial statements have been prepared assuming that EME and Midwest Generation will continue as going concerns. Financial statements prepared on this basis assume the realization of assets and the satisfaction of liabilities in the normal course of business for the 12-month period following the date of the financial statements. The accompanying consolidated financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classification of liabilities or any other adjustments that might be necessary if EME and Midwest Generation were unable to continue as going concerns. EME and Midwest Generation are currently developing a plan for their restructuring, but there is no assurance such a plan will be successfully implemented. EME's and Midwest Generation's ability to continue as going concerns is dependent on many factors, including the successful development of a confirmed plan of reorganization and an emergence from bankruptcy. Uncertainty as to the outcome of these factors raises substantial doubt about EME's and Midwest Generation's ability to continue as going concerns. Basis of Presentation The consolidated financial statements of EME reflect the accounts of EME and its subsidiary, Midwest Generation. The consolidated financial statements of EME also include the accounts of partnerships in which EME has a controlling interest and variable interest entities (VIEs) in which EME is deemed the primary beneficiary. EME's investments in unconsolidated affiliates and VIEs, in which EME is not deemed to be the primary beneficiary, are mainly accounted for by the equity method. For a discussion of EME's VIEs, see Note 3—Variable Interest Entities. Midwest Generation's consolidated financial statements include the accounts of Midwest Generation and its subsidiaries. All significant intercompany balances and transactions have been eliminated for each reporting entity. The notes to the consolidated financial statements apply to EME and Midwest Generation as indicated parenthetically next to each corresponding disclosure. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires EME and Midwest Generation to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Cash Equivalents Cash equivalents included money market funds totaling $615 million and $1.2 billion for EME and $75 million and $195 million for Midwest Generation at December 31, 2012 and December 31, 2011, respectively. The carrying value of cash equivalents equals the fair value as all investments have original maturities of less than three months. Restricted Cash and Cash Equivalents, and Restricted Deposits Restricted deposits consisted of cash balances that are restricted to pay amounts required for lease payments, debt service or to provide collateral. At December 31, 2012, EME' restricted cash and deposits included $49 million to support outstanding letters of credit issued under EME's letter of credit facilities. At December 31, 2011, EME's restricted deposits included $97 million received from a wind project financing that had been held in escrow. Restricted deposits of $4 million and $3 million as of December 31, 2012 and 2011, respectively, were included in other long-term assets on Midwest Generation's consolidated balance sheet. These cash balances are restricted to provide collateral or other deposits required by contract. Inventory Inventory is stated at the lower of weighted-average cost or market. Inventory is recorded at actual cost when purchased and then expensed at weighted-average cost as used. Inventory consisted of the following:
VIEs (EME only) A VIE is a legal entity whose equity owners do not have sufficient equity at risk, or as a group, the holders of the equity investment at risk lack any of the following three characteristics: decision making rights, the obligation to absorb losses, or the right to receive the residual returns of the entity. The primary beneficiary is identified as the variable interest holder that has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the VIE. The primary beneficiary is required to consolidate the VIE unless specific exceptions or exclusions are met. Commercial and operating activities are generally the factors that most significantly impact the economic performance of VIEs in which EME has a variable interest. Commercial and operating activities include construction, operation and maintenance, fuel procurement, dispatch and compliance with regulatory and contractual requirements. Allocation of Net Income or Losses to Investors in Certain VIEs (EME only) During 2012, EME raised third-party capital to support the development of a portion of EME's wind portfolio by selling indirect equity interests in certain wind projects through a new venture, Capistrano Wind Partners. Capistrano Wind Partners' partnership agreements contain complex allocation provisions for taxable income and losses, tax credits and cash distributions. EME allocates net income for this consolidated investment to third-party investors based on the Hypothetical Liquidation Book Value (HLBV) method. HLBV is a balance sheet oriented approach that calculates the change in the claims of each partner on the net assets of the investment at the beginning and end of each period. Each partner's claim is equal to the amount each party would receive or pay if the net assets of the investment were to liquidate at book value and the resulting cash was then distributed to investors in accordance with their respective liquidation preferences. EME reports the net income (loss) attributable to the third-party investors as income (loss) attributable to noncontrolling interests in the consolidated statements of operations. For further information, see Note 3—Variable Interest Entities—Categories of VIEs—Capistrano Wind Equity Capital. Purchased Emission Allowances, Exemptions and Offsets (EME only) Purchased emission allowances are stated at the lower of weighted-average cost or market. Purchased emission allowances are recorded at cost when purchased and then expensed at weighted-average cost as used. Cost is reduced to market value if the market value of emission allowances has declined and it is probable that revenues earned from the generation of power will not cover the amounts recorded in the ordinary course of business. Purchased emission allowances are classified as current or long-term assets based on the time the allowances are expected to be used. At December 31, 2012 and 2011, EME had $16 million and $76 million, respectively, of purchased emission allowances, exemptions and offsets, primarily related to the Walnut Creek facility, reflected in other long-term assets in the accompanying consolidated balance sheets. Property, Plant and Equipment Property, plant and equipment, including leasehold improvements and construction in progress, are capitalized at cost. Depreciation and amortization are computed using the straight-line method over the estimated useful life of the property, plant and equipment and over the shorter of the lease term or estimated useful life for leasehold improvements. The costs of repairs and maintenance, including periodic major maintenance, are expensed as incurred. As part of the acquisition of the Midwest Generation plants, EME acquired emission allowances under the United States Environmental Protection Agency's (US EPA) Acid Rain Program. EME uses these emission allowances in the normal course of its business to generate electricity and has classified them as part of property, plant and equipment. Acquired emission allowances are amortized on a straight-line basis. Estimated useful lives for property, plant and equipment are as follows:
The remaining estimated useful life or lease term at December 31, 2012 for the Midwest Generation plants is as follows. Estimated useful lives of individual facilities could be impacted by decisions related to the installation of environmental remediation equipment. If environmental compliance equipment is not installed, the useful life may be shortened.
Interest incurred on funds borrowed by EME is capitalized during the construction period. Such capitalized interest is included in property, plant and equipment. Capitalized interest is amortized over the depreciation period of the major plant and facilities for the respective project. Capitalized interest was $31 million, $27 million and $54 million in 2012, 2011 and 2010, respectively. Midwest Generation did not record capitalized interest during the period. Asset Retirement Obligations Authoritative guidance on asset retirement obligations (AROs) requires entities to record the fair value of a liability for an ARO in the period in which it is incurred, including a liability for the fair value of a conditional ARO, if the fair value can be reasonably estimated even though uncertainty exists about the timing and/or method of settlement. When an ARO liability is initially recorded, the entity capitalizes the cost by increasing the carrying amount of the related long-lived asset. Over time, the liability is increased for accretion expense to its present value each period, and the capitalized cost is depreciated over the useful life of the related asset. Settlement of an ARO liability for an amount other than its recorded amount results in an increase or decrease in expense. EME and Midwest Generation have recorded a liability representing expected future costs associated with site reclamations, facilities dismantlement and removal of environmental hazards, which is included in other long-term liabilities on EME's consolidated balance sheets and benefit plans and other long-term liabilities on Midwest Generation's consolidated balance sheets. Impairment of Long-Lived Assets EME and Midwest Generation evaluate the impairment of long-lived assets based on a review of estimated future cash flows expected to be generated whenever events or changes in circumstances indicate that the carrying amount of such investments or assets may not be recoverable. EME's and Midwest Generation's unit of account is at the plant level and, accordingly, the closure of a unit at a multi-unit site would not result in an impairment of property, plant and equipment unless such condition were to affect an impairment assessment on the entire plant. If the carrying amount of a long-lived asset exceeds the expected future cash flows, undiscounted and without interest charges, an impairment loss is recognized for the excess of the carrying amount over fair value. Fair value is determined via market, cost and income based valuation techniques, as appropriate. For further discussion, see Note 13—Asset Impairments and Other Charges. EME also evaluates investments in unconsolidated affiliates for potential impairment. If the carrying value of an unconsolidated affiliate exceeds its fair value, an impairment loss is recorded if the decline is other than temporary. Sale Leaseback Midwest Generation has entered into the Powerton and Joliet Sale Leaseback and EME has provided guarantees related to this transaction. Under the terms of the leases (33.75 years for Powerton and 30 years for Joliet), Midwest Generation makes semi-annual lease payments on each January 2 and July 2, which began January 2, 2001. If a lessor intends to sell its interest in the Powerton or Joliet Stations, Midwest Generation has a right of first refusal to acquire the interest at fair market value. Under the terms of each lease, Midwest Generation may request a lessor, at its option, to refinance the lessor debt, which, if completed, would affect the base lease rent. The gain on the sale of the power stations has been deferred and is being amortized over the term of the leases. For additional information on the Powerton and Joliet Sale Leaseback, see Note 9—Commitments and Contingencies—Lease Commitments. EME EME accounts for long-term leases associated with the Powerton and Joliet Sale Leaseback as operating leases on its separate consolidated financial statements. Minimum lease payments under operating leases are levelized (total minimum lease payments divided by the number of years of the lease) and recorded as rent expense over the terms of the leases. Lease payments in excess of the minimum are recorded as rent expense in the year incurred. Midwest Generation Midwest Generation accounts for the Powerton and Joliet Sale Leaseback as a lease financing in its separate consolidated financial statements. Accordingly, Midwest Generation records the power plants as assets in a similar manner to a capital lease and records depreciation expense from the power plants and interest expense from the lease financing. Allowance for Losses on Notes Receivable (Midwest Generation only) Notes receivable are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. A valuation allowance will be recorded when it is probable that Midwest Generation will be unable to collect amounts due, including principal and interest, according to the contractual terms and schedule of the loan agreement. For additional information on Midwest Generation's impaired intercompany loan, see Note 15—Related Party Transactions. Accounting for Reorganization As a result of the EME and Midwest Generation Chapter 11 Cases, realization of assets and satisfaction of liabilities are subject to a significant number of uncertainties. The consolidated financial statements prepared under Accounting Standards Codification (ASC) 852 Reorganizations require the following accounting policies for debtors-in-possession. Liabilities Subject to Compromise (LSTC) Unsecured prepetition liabilities that have at least a possibility of not being fully repaid have been reclassified into LSTC, a separate line item on the consolidated balance sheet. LSTC, including claims that have become known after the bankruptcy filing, are reported on the basis of the probably allowed claim. For additional information, see Note 16—Restructuring Activities. Reorganization Items Adjustments to amounts classified as LSTC are presented as Reorganization Items, a separate line item on the consolidated statement of operations. Reorganization items include the write off of deferred financing costs of $15 million related to the classification of EME's senior notes as part of LSTC. Reorganization items also include direct and incremental costs of bankruptcy, such as professional fees. For additional information, see Note 16—Restructuring Activities. Interest Expense EME and Midwest Generation will not pay interest expense during bankruptcy and it is not expected to be an allowable claim. Therefore, the filing entities will not accrue interest expense for financial reporting purposes; however, unpaid contractual interest is calculated for disclosure purposes. Deferred Financing Costs (EME only) Bank, legal and other direct costs incurred in connection with obtaining financing are deferred and amortized as interest expense on a basis that approximates the effective interest rate method over the term of the related debt. Amortization of deferred financing costs charged to interest expense was $19 million, $15 million and $5 million in 2012, 2011 and 2010, respectively. For additional information, see "Reorganization Items" above. Revenue Recognition Generally, revenues and related costs are recognized when electricity is generated, or services are provided, unless the transaction is accounted for as a derivative and does not qualify for the normal purchases and sales exception. EME's subsidiaries enter into power and fuel hedging, optimization transactions and energy trading contracts, all subject to market conditions. One of EME's subsidiaries executes these transactions primarily through the use of physical forward commodity purchases and sales and financial commodity swaps and options. With respect to its physical forward contracts, EME's subsidiaries generally act as the principal, take title to the commodities, and assume the risks and rewards of ownership. EME's subsidiaries record the settlement of non-trading physical forward contracts on a gross basis. EME nets the cost of purchased power against related third-party sales in markets that use locational marginal pricing, currently PJM. Financial swap and option transactions are settled net and, accordingly, EME's subsidiaries do not take title to the underlying commodity. Therefore, gains and losses from settlement of financial swaps and options are recorded net in operating revenues in the accompanying consolidated statements of operations. Revenues under certain long-term power sales contracts are recognized based on the output delivered at the lower of the amount billable or the average rate over the contract term. The excess of the amounts billed over the portion recorded as revenues is reflected in deferred revenues on the consolidated balance sheets. EME accounts for grant income on the deferred method and, accordingly, will recognize operating revenues related to such income over the estimated useful life of the projects. EME received US Treasury Grants of $44 million in 2012 and a total of $388 million in 2011. Power Purchase Agreements (EME only) EME enters into long-term power purchase agreements in the normal course of business. A power purchase agreement may be considered a variable interest in a VIE. Under this classification, the power purchase agreement is evaluated to determine if EME is the primary beneficiary in the VIE, in which case, such entity would be consolidated. EME does not have any power purchase agreements in which it is the primary beneficiary. A power purchase agreement may also contain a lease for accounting purposes. This generally occurs when a power purchase agreement (signed or modified after June 30, 2003) designates a specific power plant in which the buyer purchases substantially all of the output and does not otherwise meet a fixed price per unit of output exception. EME has a number of power purchase agreements that contain leases in which EME is considered the lessor. These agreements are classified as operating leases. EME records rental income under these contracts as electricity is delivered at rates defined in power sales agreements. Revenues from these power sales agreements were $124 million, $109 million and $81 million in 2012, 2011 and 2010, respectively. A power purchase agreement that does not contain a lease may be classified as a derivative subject to a normal purchases and sales exception, in which case the power purchase agreement is classified as an executory contract. The contracts that are not eligible for the normal purchases and sales exception are defined as a derivative and are recorded on the consolidated balance sheets at fair value. For further information on derivatives and hedging activities, see Note 6—Derivative Instruments and Hedging Activities. Power purchase agreements that do not meet the preceding classification are accounted for on the accrual basis. Derivative Instruments and Hedging Activities Authoritative guidance on derivatives and hedging establishes accounting and reporting standards for derivative instruments (including certain derivative instruments embedded in other contracts). EME and Midwest Generation are required to record derivatives on their balance sheets as either assets or liabilities measured at fair value unless otherwise exempted from derivative treatment as normal purchases and sales. All changes in the fair value of derivative instruments are recognized currently in earnings, unless specific hedge criteria are met, which requires that EME and Midwest Generation formally document, designate, and assess the effectiveness of transactions that receive hedge accounting. EME and Midwest Generation use derivative instruments to reduce their exposure to market risks that arise from price fluctuations of electricity, capacity, fuel, emission allowances, transmission rights and interest rates. The derivative financial instruments vary in duration, ranging from a few days to several years, depending upon the instrument. To the extent that EME and Midwest Generation do not use derivative instruments to hedge these market risks, the unhedged portions will be subject to the risks and benefits of spot market price movements. Risk management positions may be designated as cash flow hedges or economic hedges, which are derivatives that are not designated as cash flow hedges. Economic hedges are accounted for at fair value on EME's and Midwest Generation's consolidated balance sheets as derivative assets or liabilities with offsetting changes recorded on the consolidated statements of operations. For derivative instruments that qualify for hedge accounting treatment, the fair value is recognized on EME's and Midwest Generation's consolidated balance sheets as derivative assets or liabilities with offsetting changes in fair value, to the extent effective, recognized in accumulated other comprehensive loss until reclassified into earnings when the related forecasted transaction occurs. The portion of a cash flow hedge that does not offset the change in the fair value of the transaction being hedged, which is commonly referred to as the ineffective portion, is immediately recognized in earnings. Derivative instruments that are utilized for EME's trading purposes are measured at fair value and included on the consolidated balance sheets as derivative assets or liabilities, with offsetting changes recognized in operating revenues on the consolidated statements of operations. The accounting guidance for cash flow hedges provides that the effective portion of gains or losses on derivative instruments designated and qualifying as cash flow hedges be reported as a component of other comprehensive loss and be reclassified into earnings in the same period during which the hedged forecasted transaction affects earnings. The remaining gains or losses on the derivative instruments, if any, must be recognized currently in earnings. Where EME's and Midwest Generation's derivative instruments are subject to a master netting agreement and the criteria of authoritative guidance are met, EME and Midwest Generation present their derivative assets and liabilities on a net basis on their consolidated balance sheets. In addition, derivative positions are offset against margin and cash collateral deposits. The results of derivative activities are recorded in cash flows from operating activities on the consolidated statements of cash flows. Stock-Based Compensation (EME only) EIX's stock options, performance shares, deferred stock units and restricted stock units have been granted to EME employees under EIX's long-term incentive compensation programs. Generally, EIX does not issue new common stock for settlement of equity awards. Rather, a third party is used to purchase shares from the market and deliver for settlement of option exercises, performance shares, and restricted stock units. EIX has discretion to settle certain performance shares awards in common stock; however, awards are generally settled half in cash and half in common stock. Deferred stock units granted to management are settled in cash and represent a liability. Restricted stock units are settled in common stock; however, EIX will substitute cash awards to the extent necessary to pay tax withholding or any government levies. EME recognizes stock-based compensation expense on a straight-line basis over the requisite service period. EME recognizes stock-based compensation expense for awards granted to retirement-eligible participants on a prorated basis over the initial year or over the period between the date of grant and the date the participant first becomes eligible for retirement. At approximately the same time as the commencement of the Chapter 11 Cases, EME ceased participating in EIX's long-term incentive compensation programs, and does not expect that any new EIX stock-based compensation will be awarded to EME employees. Income Taxes and Tax-Allocation Agreements EME EME is included in the consolidated federal and combined state income tax returns of EIX and participates in tax-allocation agreements with other subsidiaries of EIX. EME's tax provision is determined using the “benefits for losses” method. This method is similar to a separate company return, except that EME recognizes, without regard to separate company limitations, additional tax liabilities or benefits based on the impact to the combined group including EME's taxable income or losses and state apportionment factors. Realization of any tax benefits generated by EME is dependent on EME's continued inclusion in the consolidated EIX tax returns, and the generation of sufficient consolidated taxable income by the EIX consolidated tax group prior to the expiration of the loss and credit carryforwards. Differences between amounts recorded in tax provision under the benefits for losses method and the amount of cash expected to be paid or received through the intercompany tax allocation agreements are recorded to equity. EME accounts for deferred income taxes using the asset-and-liability method, wherein deferred tax assets and liabilities are recognized for future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities using enacted income tax rates. In evaluating the realization of tax sharing assets, EME must determine the likelihood of receiving future tax-sharing payments under the tax-allocation agreements. In evaluating the realization of its deferred income tax assets, EME must determine whether it is more likely than not the EIX consolidated tax group will generate sufficient taxable income to utilize EME's deferred income tax assets during the period in which EME will likely remain part of the EIX consolidated income tax returns, or if it is more likely than not EME would utilize the deferred income tax assets on its own, after its expected separation from the group at its emergence from bankruptcy. During 2012, EME recorded a valuation allowance against its net deferred tax assets. For further information regarding the valuation allowance, see Note 7—Income Taxes. Investment and energy tax credits are deferred and amortized over the term of the power purchase agreement of the respective project while production tax credits are recognized when earned. EME's investments in wind-powered electric generation projects qualify for federal production tax credits, unless a US Treasury Grant has been elected. Certain of EME's wind projects also qualify for state tax credits, which are accounted for similarly to federal production tax credits. Interest income, interest expense and penalties associated with income taxes are reflected in provision (benefit) for income taxes on EME's consolidated statements of operations. Midwest Generation Midwest Generation is included in the consolidated federal and state income tax returns of EIX and is party to a tax-allocation agreement with its parent Edison Mission Midwest Holdings (the Midwest Generation Tax Allocation Agreement). Midwest Generation's tax allocation method is to allocate current tax liabilities or benefits on a separate return basis, except for the use of state tax apportionment factors of the EIX group for purposes of determining state income taxes. The Midwest Generation Tax Allocation Agreement only permits the use of net operating losses to offset future taxable income and does not include the right to receive payments. Accordingly, if Midwest Generation offsets net operating loss carryforwards against taxable income in the future, such tax benefits are accounted for as non-cash equity contributions from its parent at the time of use. Tax benefits recognized associated with net operating losses carrybacks that are not paid under the Midwest Generation Tax Allocation Agreement are accounted for as non-cash distributions to the parent company. Midwest Generation accounts for deferred income taxes using the asset-and-liability method, wherein deferred tax assets and liabilities are recognized for future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities using enacted income tax rates. In evaluating the realization of deferred income tax assets, Midwest Generation must determine whether it is more likely than not it would utilize its own deferred income tax assets in a hypothetical tax return prepared on a separate company basis. During 2012, Midwest Generation recorded a valuation allowance against its net deferred tax assets. For further information regarding the valuation allowance, see Note 7—Income Taxes. Also, while Midwest Generation is generally subject to separate return limitations for net losses, under the Midwest Generation Tax Allocation Agreement it is permitted to transfer to Edison Mission Midwest Holdings, or its subsidiaries, net operating loss benefits or other current or deferred tax attributions, which would not yet be realized in a separate return in exchange for a reduction in Midwest Generation's intercompany account balances (including subordinated loans). Differences between amounts recorded in tax provision based on a hypothetical tax return prepared on a separate company basis and the amount of cash expected to be paid or received through the Midwest Generation Tax Allocation Agreement are recorded to equity. Interest income, interest expense and penalties associated with income taxes are reflected in provision (benefit) for income taxes on Midwest Generation's consolidated statements of operations. New Accounting Guidance Accounting Guidance Adopted in 2012 Fair Value Measurement In May 2011, the Financial Accounting Standards Board (FASB) issued an accounting standards update modifying the fair value measurement and disclosure guidance. This guidance prohibits grouping of financial instruments for purposes of fair value measurement and requires the value be based on the individual security. This amendment also results in new disclosures primarily related to Level 3 measurements including quantitative disclosure about unobservable inputs and assumptions, a description of the valuation processes and a narrative description of the sensitivity of the fair value to changes in unobservable inputs. EME and Midwest Generation adopted this guidance effective January 1, 2012. For further information, see Note 4—Fair Value Measurements. Presentation of Comprehensive Income In June 2011 and December 2011, the FASB issued accounting standards updates on the presentation of comprehensive income. An entity can elect to present items of net income and other comprehensive income in one continuous statement, referred to as the statement of comprehensive income, or in two separate but consecutive statements. EME and Midwest Generation adopted this guidance January 1, 2012 and elected to present two separate but consecutive statements. The adoption of these accounting standards updates did not change the items that constitute net income and other comprehensive income. Accounting Guidance Not Yet Adopted Offsetting Assets and Liabilities In December 2011 and December 2012, the FASB issued accounting standards updates modifying the disclosure requirements about the nature of an entity's rights of offsetting assets and liabilities in the statement of financial position under master netting agreements and related arrangements associated with financial and derivative instruments. The guidance requires increased disclosure of the gross and net recognized assets and liabilities, collateral positions and narrative descriptions of setoff rights. EME and Midwest Generation adopted this guidance effective January 1, 2013. Presentation of Items Reclassified out of Accumulated Other Comprehensive Income In February 2013, the FASB issued an accounting standards update which requires disclosure related to items reclassified out of accumulated other comprehensive income. The guidance requires companies to present separately, for each component of other comprehensive income, current period reclassifications and the remainder of the current-period other comprehensive income. In addition, for certain current period reclassifications, an entity is required to disclose the effect of the item reclassified out of accumulated other comprehensive income on the respective line item(s) of net income. EME adopted this guidance effective January 1, 2013. |
Fair Value Measurements (Fair Value of Long-term Debt) (Details) (USD $)
In Millions, unless otherwise specified |
Dec. 31, 2012
|
Dec. 31, 2011
|
---|---|---|
Fair Value Disclosures [Abstract] | ||
Long-term debt, including current portion, Carrying Amount | $ 1,056 | $ 4,912 |
Long-term debt, including current portion, Fair Value | 1,057 | 3,716 |
Senior notes, net | $ 3,700 |