Discontinued Operations

6 Months Ended

Jun. 30, 2013

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations (EME only)

In September 2012, EME Homer City Generation L.P. (Homer City), a wholly owned indirect subsidiary of EME, and Homer City Generation, L.P., an affiliate of GECC, entered into the Homer City Master Transaction Agreement (MTA) for the divestiture by Homer City of substantially all of its remaining assets and certain specified liabilities. Accordingly, in the third quarter of 2012, Homer City met the definition of a discontinued operation and was classified separately on EME's consolidated financial statements. In December 2012, the transaction closed and Homer City Generation, L.P. assumed control of Homer City. On May 2, 2013, the Homer City Debtors filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code. For further discussion, see Note 14—Restructuring Activities and Note 15—Condensed Combined Debtors' Financial Information.

Effective May 1, 2013, Homer City withdrew from the benefit plan that provided postretirement medical, dental, vision, and life insurance coverage to certain Homer City retirees, effectively terminating access and company subsidy for these programs. Employees who were eligible for the plan continued to receive coverage for these benefits up to June 30, 2013. As a result of the withdrawal from the plan, EME recorded a pre-tax gain of approximately $30 million in income (loss) from operations of discontinued subsidiaries on the consolidated statements of operations.

Summarized results of discontinued operations are:

	Three Months Ended June 30,					Six Months Ended June 30,
(in millions)	2013		2012			2013		2012
Total operating revenues	$	—	$	82		$	—	$	182
Total operating expenses	30		(118		)	29		(245		)
Asset impairment and other charges	—		(11		)	—		(22		)
Other income	—		2			1		2
Income (loss) before income taxes	30		(45		)	30		(83		)
Provision (benefit) for income taxes	12		(16		)	13		(30		)
Income (loss) from operations of discontinued subsidiaries	$	18	$	(29	)	$	17	$	(53	)

The assets and liabilities associated with the discontinued operations are segregated on the consolidated balance sheets are:

(in millions)	June 30, 2013		December 31, 2012
Cash and cash equivalents	$	—	$	2
Other current assets	—		7
Carrying value adjustment	—		(9		)
Assets of discontinued operations	$	—	$	—