Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2011

Fair Value Measurements

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

			As of September 30, 2011						As of December 31, 2010
			Assets			Liabilities			Assets			Liabilities
			(In millions)
Cash equivalents			$	625.6		$	—		$	1,545.4		$	—
Equity securities				51.2			—			43.7			—
Derivative instruments:
	Classified as derivative assets and liabilities:
		Current		233.8			(487.8	)		534.4			(622.3	)
		Noncurrent		258.2			(239.7	)		258.9			(353.0	)
		Total classified as derivative assets and liabilities		492.0			(727.5	)		793.3			(975.3	)
	Classified as accounts receivable1			(198.6	)		—			(16.4	)		—
	Total derivative instruments			293.4			(727.5	)		776.9			(975.3	)
Total recurring fair value measurements			$	970.2		$	(727.5	)	$	2,366.0		$	(975.3	)

1 Represents the unrealized fair value of exchange traded derivatives, exclusive of cash margin posted.

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

At September 30, 2011		Level 1			Level 2			Level 3			Netting and Cash Collateral1			Total Net Fair Value
		(In millions)
Cash equivalents		$	625.6		$	—		$	—		$	—		$	625.6
Equity securities			51.2			—			—			—			51.2
Derivative assets:
	Power contracts		—			3,987.0			658.3
	Gas contracts		182.6			4,115.9			518.6
	Coal contracts		—			136.9			0.5
	Other commodity contracts		28.0			163.3			347.6
	Interest rate contracts		50.3			54.4			—
	Foreign exchange contracts		—			14.4			—
	Equity contracts		—			—			0.4
	Total derivative assets		260.9			8,471.9			1,525.4			(9,964.8	)		293.4
Derivative liabilities:
	Power contracts		—			(4,100.9	)		(905.3	)
	Gas contracts		(172.6	)		(4,359.7	)		(365.3	)
	Coal contracts		—			(119.0	)		(0.1	)
	Other commodity contracts		(28.2	)		(154.8	)		(346.2	)
	Interest rate contracts		(50.6	)		(1.3	)		(3.3	)
	Foreign exchange contracts		—			(5.5	)		—
Total derivative liabilities			(251.4	)		(8,741.2	)		(1,620.2	)		9,885.3			(727.5	)
	Net derivative position		9.5			(269.3	)		(94.8	)		(79.5	)		(434.1	)
Total		$	686.3		$	(269.3	)	$	(94.8	)	$	(79.5	)	$	242.7

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 September 30, 2011, we included $81.4 million of cash collateral held and $1.9 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 September 30,						Nine Months Ended September 30,
		2011			2010			2011			2010
		(In millions)
Balance at beginning of period		$	(40.1	)	$	(175.7	)	$	(201.2	)	$	(291.5	)
Realized and unrealized (losses) gains:
	Recorded in income		(50.3	)		(145.8	)		(70.7	)		(203.4	)
	Recorded in other comprehensive income		(10.4	)		14.1			19.1			87.6
Purchases			0.6						(3.0	)
Sales			—						—
Issuances			2.3						3.4
Settlements			—						—
	Net purchases, sales, issuances, and settlements1		2.9			28.9			0.4			24.5
Transfers into Level 32			(30.4	)		(105.3	)		115.3			102.7
Transfers out of Level 32			33.5			(41.1	)		42.3			(144.8	)
Balance at end of period		$	(94.8	)	$	(424.9	)	$	(94.8	)	$	(424.9	)
Change in unrealized gains recorded in income relating to derivatives still held at end of period		$	44.4		$	(75.3	)	$	(19.4	)	$	(96.9	)

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.