The following table sets forth EME's assets and liabilities that were accounted for at fair value by level within the fair value hierarchy:



	September 30, 2013
(in millions)	Level 1		Level 2		Level 3		Netting and Collateral¹			Total
Assets at Fair Value
Money market funds²	$	948	$	—	$	—	$	—		$	948
Derivative contracts
Electricity	—		35		26		(7		)	54
Natural gas	3		—		—		(3		)	—
Interest rate	—		2		—		—			2
Total assets	$	951	$	37	$	26	$	(10	)	$	1,004
Liabilities at Fair Value
Derivative contracts
Electricity	$	—	$	1	$	5	$	(6	)	$	—
Interest rate	—		69		—		—			69
Total liabilities	$	—	$	70	$	5	$	(6	)	$	69



	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	—		118		—		—			118
Total liabilities	$	3	$	124	$	1	$	(10	)	$	118


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 on EME's consolidated balance sheets.

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:



	September 30, 2013
(in millions)	Level 1		Level 2		Netting¹		Total
Assets at Fair Value
Money market funds²	$	103	$	—	$	—	$	103
Derivative contracts
Electricity	—		1		—		1
Total assets	$	103	$	1	$	—	$	104
Liabilities at Fair Value
Derivative contracts
Electricity	$	—	$	2	$	—	$	2
Total liabilities	$	—	$	2	$	—	$	2
	December 31, 2012
(in millions)	Level 1		Level 2		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


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.

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 15

-Subparagraph b-d

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 159

-Paragraph 18

-Subparagraph c(2), d, e, f

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 5: http://www.xbrl.org/2003/role/presentationRef

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Reference 6: http://www.xbrl.org/2003/role/presentationRef

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Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 11: http://www.xbrl.org/2003/role/presentationRef

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Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References+ Details