Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2011

Fair Value Measurements

Schedule of assets and liabilities measured at fair value on a recurring basis

			As of June 30, 2011						As of December 31, 2010
			Assets			Liabilities			Assets			Liabilities
			(In millions)
Cash equivalents			$	316.6		$	—		$	1,545.4		$	—
Equity securities				44.2			—			43.7			—
Derivative instruments:
	Classified as derivative assets and liabilities:
		Current		324.3			(494.2	)		534.4			(622.3	)
		Noncurrent		257.5			(270.1	)		258.9			(353.0	)
		Total classified as derivative assets and liabilities		581.8			(764.3	)		793.3			(975.3	)
	Classified as accounts receivable1			(72.7	)		—			(16.4	)		—
	Total derivative instruments			509.1			(764.3	)		776.9			(975.3	)
Total recurring fair value measurements			$	869.9		$	(764.3	)	$	2,366.0		$	(975.3	)

Schedule of assets and liabilities measured at fair value on a recurring basis by level within the fair value hierarchy

At June 30, 2011		Level 1			Level 2			Level 3			Netting and Cash Collateral1			Total Net Fair Value
		(In millions)
Cash equivalents		$	316.6		$	—		$	—		$	—		$	316.6
Equity securities			44.2			—			—			—			44.2
Derivative assets:
	Power contracts		—			4,718.2			873.5
	Gas contracts		68.9			3,568.9			451.0
	Coal contracts		—			209.1			0.6
	Other commodity contracts		50.7			58.6			196.6
	Interest rate contracts		35.8			40.2			—
	Foreign exchange contracts		—			13.7			—
	Total derivative assets		155.4			8,608.7			1,521.7			(9,776.7	)		509.1
Derivative liabilities:
	Power contracts		—			(5,004.4	)		(1,011.0	)
	Gas contracts		(66.5	)		(3,530.6	)		(351.5	)
	Coal contracts		—			(174.8	)		—
	Other commodity contracts		(48.7	)		(51.8	)		(199.3	)
	Interest rate contracts		(37.9	)		—			—
	Foreign exchange contracts		—			(8.2	)		—
Total derivative liabilities			(153.1	)		(8,769.8	)		(1,561.8	)		9,720.4			(764.3	)
	Net derivative position		2.3			(161.1	)		(40.1	)		(56.3	)		(255.2	)
Total		$	363.1		$	(161.1	)	$	(40.1	)	$	(56.3	)	$	105.6

1 We present our derivative assets and liabilities in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting agreement exists between us and the counterparty to a derivative contract. At June 30, 2011, we included $58.8 million of cash collateral held and $2.5 million of cash collateral posted (excluding margin posted on exchange traded derivatives) in netting amounts in the above table.

At December 31, 2010		Level 1			Level 2			Level 3			Netting and Cash Collateral1			Total Net Fair Value
		(In millions)
Cash equivalents		$	1,545.4		$	—		$	—		$	—		$	1,545.4
Equity securities			43.7			—			—			—			43.7
Derivative assets:
	Power contracts		—			7,509.6			453.3
	Gas contracts		63.9			5,113.3			115.2
	Coal contracts		—			355.6			7.4
	Other commodity contracts		6.6			54.8			—
	Interest rate contracts		33.1			37.0			—
	Foreign exchange contracts		—			11.0			—
	Total derivative assets		103.6			13,081.3			575.9			(12,983.9	)		776.9
Derivative liabilities:
	Power contracts		—			(7,758.2	)		(771.1	)
	Gas contracts		(72.7	)		(4,910.3	)		(5.1	)
	Coal contracts		—			(307.4	)		(0.9	)
	Other commodity contracts		(7.1	)		(54.5	)		—
	Interest rate contracts		(35.7	)		—			—
	Foreign exchange contracts		—			(8.4	)		—
Total derivative liabilities			(115.5	)		(13,038.8	)		(777.1	)		12,956.1			(975.3	)
	Net derivative position		(11.9	)		42.5			(201.2	)		(27.8	)		(198.4	)
Total		$	1,577.2		$	42.5		$	(201.2	)	$	(27.8	)	$	1,390.7

1 We present our derivative assets and liabilities in our Consolidated Balance Sheets on a net basis. We net derivative assets and liabilities, including cash collateral, when a legally enforceable master netting agreement exists between us and the counterparty to a derivative contract. At December 31, 2010, we included $28.4 million of cash collateral held and $0.6 million of cash collateral posted (excluding margin posted on exchange traded derivatives) in netting amounts in the above table.

Schedule of the reconciliation of changes in Level 3 fair value measurements

		Quarter Ended June 30,						Six Months Ended June 30,
		2011			2010			2011			2010
		(In millions)
Balance at beginning of period		$	(172.8	)	$	(315.2	)	$	(201.2	)	$	(291.5	)
Realized and unrealized (losses) gains:
	Recorded in income		39.8			58.0			(20.5	)		(78.7	)
	Recorded in other comprehensive income		19.2			(2.8	)		29.5			73.6
Purchases			(3.6	)					(3.6	)
Sales			—						—
Issuances			(3.5	)					1.1
Settlements			—						—
	Net purchases, sales, issuances, and settlements1		(7.1	)		7.4			(2.5	)		16.6
Transfers into Level 32			34.1			93.0			145.7			208.0
Transfers out of Level 32			46.7			(16.1	)		8.9			(103.7	)
Balance at end of period		$	(40.1	)	$	(175.7	)	$	(40.1	)	$	(175.7	)
Change in unrealized gains recorded in income relating to derivatives still held at end of period		$	23.0		$	82.9		$	(1.4	)	$	8.9

1 Effective January 1, 2011, we are required to present separately purchases, sales, issuances, and settlements.

2 For purposes of this reconciliation, we assumed transfers into and out of Level 3 occurred on the last day of the quarter. All transfers are predominantly the result of changes in the observability of the forward commodity price curves.