Accumulated Other Comprehensive Loss

9 Months Ended

Sep. 30, 2011

Accumulated Other Comprehensive Loss.

Accumulated Other Comprehensive Loss

Note 11. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss consisted of the following:

(in millions)		Unrealized Gains (Losses) on Cash Flow Hedges			Unrecognized Losses and Prior Service Adjustments, Net1			Accumulated Other Comprehensive Loss
Balance at December 31, 2010		$	16		$	(47	)	$	(31	)
	Current period change		(55	)		2			(53	)
Balance at September 30, 2011		$	(39	)	$	(45	)	$	(84	)

¹

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

Included in accumulated other comprehensive loss at September 30, 2011 was $10 million, net of tax, of unrealized gains on commodity-based cash flow hedges; and $49 million, net of tax, of unrealized losses related to interest rate hedges. The maximum period over which a commodity cash flow hedge is designated is May 31, 2014.

Unrealized gains on commodity hedges consist of futures and forward electricity contracts that qualify for hedge accounting. These gains arise because current forecasts of future electricity prices in these markets are lower than the contract prices. Approximately $11 million of unrealized gains 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 gains will increase 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.