Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2013

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Loss (EME, Midwest Generation)

EME

EME's AOCI, net of tax and including discontinued operations, consisted of:

(in millions)	Unrealized Gains and (Losses) on Cash Flow Hedges			Unrecognized Loss and Prior Service Adjustments, Net1			Valuation Allowance on Deferred Tax Asset			AOCI
Balance at December 31, 2012	$	(76	)	$	(56	)	$	(6	)	$	(138	)
OCI before reclassifications	27			(2		)	—			25
Amount reclassified from AOCI	2			2			—			4
Balance at June 30, 20132	$	(47	)	$	(56	)	$	(6	)	$	(109	)

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, see "—Unrealized Losses on Cash Flow Hedges."

The after-tax amounts recorded in AOCI at June 30, 2013 and December 31, 2012 for commodity contracts were losses of $2 million and $1 million, respectively, and for interest rate contracts were losses of $45 million and $75 million, respectively. The maximum period over which a commodity cash flow hedge is designated is through December 31, 2013. EME's significant items reclassified out of AOCI and the effect on the statement of operations consisted of:

(in millions)	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013			Affected Line Item in the Statement of Operations
Unrealized gains and losses on cash flow hedges
Electricity commodity hedges	$	(2	)	$	1		Operating revenues
Interest rate contracts	2			2			Interest expense
Tax expense	—			(1		)	Benefit for income taxes
Total, net	$	—		$	2		Net income
Amortization of retirement benefit items
Unamortized prior service cost on terminated plan	$	(2	)	$	(2	)	Plant operations and administrative and general1
Actuarial losses	1			(1		)	Plant operations and administrative and general1
Tax benefit	—			1			Benefit for income taxes
Total, net	$	(1	)	$	(2	)	Net loss

¹  For the three and six months ended June 30, 2013, $1 million and $2 million were reclassified from AOCI to plant operations, respectively, and none and $1 million from AOCI to administrative and general expenses, respectively.

Midwest Generation

Midwest Generation's AOCI, net of tax, consisted of:

(in millions)	Unrealized Gains and (Losses) on Cash Flow Hedges			Unrecognized Loss and Prior Service Adjustments, Net1			Valuation Allowance on Deferred Tax Asset			AOCI
Balance at December 31, 2012	$	(1	)	$	(37	)	$	(12	)	$	(50	)
OCI before reclassifications	(2		)	—			—			(2		)
Amount reclassified from AOCI	1			1			—			2
Balance at June 30, 2013	$	(2	)	$	(36	)	$	(12	)	$	(50	)

¹  For further detail, see Note 8—Compensation and Benefit Plans.

The maximum period over which Midwest Generation's commodity cash flow hedges are designated is December 31, 2013. Midwest Generation's significant items reclassified out of AOCI and the effect on the statement of operations consisted of:

(in millions)	Three Months Ended June 30, 2013			Six Months Ended June 30, 2013			Affected Line Item in the Statement of Operations
Unrealized gains and losses on cash flow hedges
Electricity commodity hedges	$	(2	)	$	1		Operating revenues
Tax benefit	1			—			Benefit for income taxes
Total, net	$	(1	)	$	1		Net income (loss)
Amortization of retirement benefit items
Prior services costs	$	(1	)	$	(1	)	Plant operations
Actuarial losses	—			(1		)	Plant operations
Tax benefit	1			1			Benefit for income taxes
Total, net	$	—		$	(1	)	Net loss

Unrealized Losses on Cash Flow Hedges (EME, Midwest Generation)

At June 30, 2013, unrealized losses on cash flow hedges, net of tax, consisted of futures and forward electricity contracts that qualify for hedge accounting. These losses arise because current forecasts of future electricity prices are higher than the contract prices. Approximately $2 million of unrealized losses on cash flow hedges, net of tax, are expected to be reclassified into earnings during the next 12 months. Management expects that reclassification of net unrealized losses will decrease energy revenues recognized at market prices. Actual amounts ultimately reclassified into earnings over the next 12 months could vary materially from this estimated amount as a result of changes in market conditions.