Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2013

Inventory consisted of the following:



	EME				Midwest Generation
(in millions)	September 30, 2013		December 31, 2012		September 30, 2013		December 31, 2012
Coal, fuel oil and other raw materials	$	60	$	123	$	57	$	119
Spare parts, materials and supplies	61		52		45		46
Total inventory	$	121	$	175	$	102	$	165

Notes receivable from related parties

Notes receivable from EME on Midwest Generation's consolidated balance sheets consisted of the following:



	September 30, 2013							December 31, 2012
(in millions)	Carrying Value		Valuation Allowance			Net		Carrying Value		Valuation Allowance			Net
Current portion of notes receivable from affiliate	$	19	$	(19	)	$	—	$	12	$	(12	)	$	—
Interest receivable from affiliate	55		(55		)	—		55		(55		)	—
Notes receivable from affiliate	1,304		(1,304		)	—		1,311		(1,311		)	—
Total	$	1,378	$	(1,378	)	$	—	$	1,378	$	(1,378	)	$	—

- Definition

The entire disclosure for inventory. This may include, but is not limited to, the basis of stating inventory, the method of determining inventory cost, the major classes of inventory, and the nature of the cost elements included in inventory. If inventory is stated above cost, accrued net losses on firm purchase commitments for inventory and losses resulting from valuing inventory at the lower-of-cost-or-market may also be included. For LIFO inventory, may disclose the amount and basis for determining the excess of replacement or current cost over stated LIFO value and the effects of a LIFO quantities liquidation that impacts net income.

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