2.2.0.7 false Risk Management Activities 0209 - Disclosure - Risk Management Activities true false false false 1 USD false false USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDEPS Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Shares Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Risk Management Activities [Abstract] 0 us-gaap_DerivativeInstrumentsAndHedgesAbstract us-gaap true na duration No definition available. false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string No definition available. false 3 Risk Management Activities 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false verboselabel false 1 false false false false 0 0   <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>9.</b>            <b>Risk Management Activities</b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource is exposed to certain risks relating to its ongoing business operations. The primary risks managed by using derivative instruments are commodity price risk and interest rate risk. Derivative natural gas contracts are entered into to manage the price risk associated with natural gas price volatility and to secure forward natural gas prices. Interest rate swaps are entered into to manage interest rate risk associated with NiSource’s fixed-rate borrowings. NiSource designates some of its commodity forward contracts as cash flow hedges of forecasted purchases of commodities and designates its interest rate swaps as fair value hedges of fixed-rate borrowings. Additionally, certain NiSource subsidiaries enter into forward physical contracts with various third parties to procure or sell natural gas or power. Certain forward physical contracts are derivatives which qualify for the normal purchase and normal sales exception which would not require mark-to-market accounting. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><b>Accounting Policy for Derivative Instruments. </b>The ASC topic on accounting for derivatives and hedging requires an entity to recognize all derivatives as either assets or liabilities on the Consolidated Balance Sheets at fair value, unless such contracts are exempted as a normal purchase and normal sale contract under the provisions of the ASC topic. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and resulting designation. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource uses a variety of derivative instruments (exchange traded futures and options, physical forwards and options, basis contracts, financial commodity swaps, interest rate swaps, and FTRs) to effectively manage its commodity price risk and interest rate risk exposure. If certain conditions are met, a derivative may be specifically designated as (a) a hedge of the exposure to changes in the fair value of a recognized asset or liability or an unrecognized firm commitment, or (b) a hedge of the exposure to variable cash flows of a forecasted transaction. In order for a derivative contract to be designated as a hedge, the relationship between the hedging instrument and the hedged item or transaction must be highly effective. The effectiveness test is performed at the inception of the hedge and each reporting period thereafter, throughout the period that the hedge is designated. Any amounts determined to be ineffective are recognized currently in earnings. For derivative contracts that qualify for the normal purchase and normal sales exception, a contract’s fair value is not recognized in the Consolidated Financial Statements until the contract is settled. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Unrealized and realized gains and losses are recognized each period as components of accumulated other comprehensive income (loss), regulatory assets and liabilities or earnings depending on the designation of the derivative instrument. For subsidiaries that utilize derivatives for cash flow hedges, the effective portions of the gains and losses are recorded to accumulated other comprehensive income (loss) and are recognized in earnings concurrent with the disposition of the hedged risks. If a forecasted transaction corresponding to a cash flow hedge is no longer probable to occur, the accumulated gains or losses on the derivative are recognized currently in earnings. For fair value hedges, the gains and losses are recorded in earnings each period together with the change in the fair value of the hedged item. As a result of the rate-making process, the rate-regulated subsidiaries generally record gains and losses as regulatory liabilities or assets and recognize such gains or losses in earnings when both the contracts settle and the physical commodity flows. These gains and losses recognized in earnings are then subsequently recovered or paid to customers through rates. When gains and losses are recognized in earnings, they are recognized in cost of sales for derivatives that correspond to commodity risk activities and are recognized in interest expense for derivatives that correspond to interest-rate risk activities. </div> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Commodity Price Risk Programs. </b>NiSource and NiSource’s utility customers are exposed to variability in cash flows associated with natural gas purchases and volatility in natural gas prices. NiSource purchases natural gas for sale and delivery to its retail, commercial and industrial customers, and for most customers the variability in the market price of gas is passed through in their rates. Some of NiSource’s utility subsidiaries offer programs where variability in the market price of gas is assumed by the respective utility. The objective of NiSource’s commodity price risk programs is to mitigate this gas cost variability, for NiSource or on behalf of its customers, associated with natural gas purchases or sales by economically hedging the various gas cost components by using a combination of futures, options, forward physical contracts, basis swap contracts or other derivative contracts. Northern Indiana also uses derivative contracts to minimize risk associated with power price volatility. These commodity price risk programs and their respective accounting treatment are described below. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Northern Indiana, Northern Indiana Fuel and Light, Kokomo Gas, Columbia of Pennsylvania, Columbia of Kentucky, Columbia of Maryland and Columbia of Virginia use NYMEX derivative contracts to minimize risk associated with gas price volatility. These derivative programs must be marked to fair value, but because these derivatives are used within the framework of the companies’ GCR mechanisms, regulatory assets or liabilities are recorded to offset the change in the fair value of these derivatives. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Northern Indiana, Columbia of Virginia and Columbia of Pennsylvania offer a fixed price program as an alternative to the standard GCR mechanism. These services provide customers with the opportunity to either lock in their gas cost or place a cap on the gas costs that would be charged in future months. In order to hedge the anticipated physical purchases associated with these obligations, forward physical contracts, NYMEX futures and NYMEX options have been used to secure forward gas prices. The accounting treatment elected for these contracts is varied whereby certain of these contracts have been accounted for as cash flow hedges while some contracts are not. The normal purchase and normal sales exception is elected for forward physical contracts associated with these programs whereby delivery of the commodity is probable to occur. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Northern Indiana offers a DependaBill program to its customers as an alternative to the standard tariff rate that is charged to residential customers. This program allows Northern Indiana customers to fix their total monthly bill in future months at a flat rate regardless of gas usage or commodity cost. In order to hedge the anticipated physical purchases associated with these obligations, forward physical contracts, and NYMEX options are used to secure forward gas prices. The normal purchase and normal sales exception is elected for forward physical contracts associated with these programs whereby delivery of the commodity is probable to occur. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Northern Indiana enters into gas purchase contracts at first of the month prices that give counterparties the daily option to either sell an additional package of gas at first of the month prices or recall the original volume to be delivered. Northern Indiana charges a fee for this option. The changes in the fair value of these options are primarily due to the changing expectations of the future intra-month volatility of gas prices. These written options are derivative instruments, must be marked to fair value and do not meet the requirement for hedge accounting treatment. However, Northern Indiana records the related gains and losses associated with these transactions as a regulatory asset or liability. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Columbia of Kentucky, Columbia of Ohio, Columbia of Pennsylvania, and Columbia of Maryland (collectively, the “Columbia LDCs”) enter into contracts that allow counterparties the option to sell gas to Columbia LDCs at first of the month prices for a particular month of delivery. Columbia LDCs charge the counterparties a fee for this option. The changes in the fair value of the options are primarily due to the changing expectations of the future intra-month volatility of gas prices. The Columbia LDCs defer a portion of the change in the fair value of the options as either a regulatory asset or liability based on the regulatory customer sharing mechanisms in place, with the remaining changes in fair value recognized currently in earnings. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">As part of the MISO Day 2 initiative, Northern Indiana was allocated or has purchased FTRs. These FTRs help Northern Indiana offset congestion costs due to the MISO Day 2 activity. The FTRs are marked to fair value and are not accounted for as a hedge, but since congestion costs are recoverable through the fuel cost recovery mechanism, the related gains and losses associated with marking these derivatives to market are recorded as a regulatory asset or liability. In the second quarter of 2008, MISO changed its allocation procedures from an allocation of FTRs to an allocation of ARRs, whereby Northern Indiana was allocated ARRs based on its historical use of the MISO administered transmission system. ARRs entitle the holder to a stream of revenues or charges based on the price of the associated FTR in the FTR auction. ARRs are not derivatives and are convertible to FTRs. Northern Indiana purchased FTRs in May 2010 for a 12 month period starting June 1, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource is in the process of winding down its unregulated natural gas marketing business, where gas derivatives are utilized to hedge expected future gas purchases and sales. Prior to the decision to wind down this business in the second quarter of 2009, the financial derivatives associated with commercial and industrial gas sales were accounted for as cash flow hedges. NiSource also has corresponding forward physical sales contracts of natural gas with customers. These forward physical sales contracts are derivatives that have generally qualified for the normal purchase and normal sales exception, which NiSource had elected prior to the decision to wind down the business in 2009. As a result of the decision to wind down the business, certain forecasted transactions were no longer probable to occur, which triggered the mark-to-market treatment of certain forward sales contracts that were previously exempt under the normal purchase and normal sale exception. In addition, the mark-to-market gains and losses deferred in accumulated other comprehensive income (loss) related to certain financial derivatives accounted for as a cash flow hedge were recognized in income. NiSource established reserves of $6.8 million at June 30, 2010 and $9.2 million at December 31, 2009, against certain of these physical sale contract derivatives. These amounts represent reserves related to the creditworthiness of certain customers, the fair value of future cash flows, and the cost of maintaining significant amounts of restricted cash. The physical sales contracts marked-to-market had a fair value of approximately $149.9 million at June 30, 2010 and $126.9 million at December 31, 2009, while the financial derivative contracts marked-to-market had a fair value loss of $143.6 million at June 30, 2010 and $114.6 million at December 31, 2009. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> <u> </u> <u> </u> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> <font style="font-variant: small-caps"> </font> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Commodity price risk program derivative contracted gross volumes are as follows: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="70%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">December 31, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity Price Risk Program: </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Gas price volatility program derivatives (MMDth) </div></td> <td> </td> <td> </td> <td align="right"><b>29.9</b></td> <td> </td> <td> </td> <td> </td> <td align="right">26.4</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Price Protection Service program derivatives (MMDth) </div></td> <td> </td> <td> </td> <td align="right"><b>0.6</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1.6</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">DependaBill program derivatives (MMDth) </div></td> <td> </td> <td> </td> <td align="right"><b>0.4</b></td> <td> </td> <td> </td> <td> </td> <td align="right">0.6</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Regulatory incentive program derivatives (MMDth) </div></td> <td> </td> <td> </td> <td align="right"><b>5.2</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1.7</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Gas marketing program derivatives (MMDth)<sup style="font-size: 85%; vertical-align: text-top">(a)</sup> </div></td> <td> </td> <td> </td> <td align="right"><b>57.1</b></td> <td> </td> <td> </td> <td> </td> <td align="right">74.7</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Gas marketing forward physical derivatives (MMDth)<sup style="font-size: 85%; vertical-align: text-top">(b)</sup> </div></td> <td> </td> <td> </td> <td align="right"><b>59.2</b></td> <td> </td> <td> </td> <td> </td> <td align="right">79.6</td> <td> </td> </tr> <tr valign="bottom" style="line-height: 3pt"> <td> <div style="margin-left:15px; text-indent:-15px">  </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Electric energy program FTR derivatives (mw)<sup style="font-size: 85%; vertical-align: text-top">(c)</sup> </div></td> <td> </td> <td> </td> <td align="right"><b>16,859.8</b></td> <td> </td> <td> </td> <td> </td> <td align="right">1,343.7</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 1pt; margin-left: 0%">(a) Basis contract volumes not included in the above table were 60.5 MMDth and 82.3 MMDth as of June 30, 2010 and December 31, 2009, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 1pt; margin-left: 0%">(b) Basis contract volumes not included in the above table were 62.1 MMDth and 85.4 MMDth as of June 30, 2010 and December 31, 2009, respectively. </div> <div align="justify" style="font-size: 10pt; margin-top: 6pt; margin-left: 0%">(c) Northern Indiana purchases FTR derivatives in May for use over the next twelve months. </div> <div align="justify" style="font-size: 10pt; margin-top: 12pt"><b>Interest Rate Risk Activities</b>. NiSource recognizes that the prudent and selective use of derivatives may help it to lower its cost of debt capital and manage its interest rate exposure. NiSource Finance has entered into various “receive fixed” and “pay floating” interest rate swap agreements which modify the interest rate characteristics of its outstanding long-term debt from fixed to variable rate. These interest rate swaps also serve to hedge the fair market value of NiSource Finance’s outstanding debt portfolio. As of June 30, 2010, NiSource had $6.9 billion of outstanding debt, of which $1,050 million is subject to fluctuations in interest rates as a result of the fixed-to-variable interest rate swap transactions. These interest rate swaps are designated as fair value hedges. NiSource had no net gain or loss recognized in earnings due to hedging ineffectiveness. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On May 12, 2004, NiSource Finance entered into fixed-to-variable interest rate swap agreements in a notional amount of $660 million with six counterparties having a 6 1/2-year term. NiSource Finance receives payments based upon a fixed 7.875% interest rate and pay a floating interest amount based on U.S. 6-month BBA LIBOR plus an average of 3.08% per annum. There was no exchange of premium at the initial date of the swaps. On September 15, 2008, NiSource Finance terminated a fixed-to-variable interest rate swap agreement with Lehman Brothers having a notional amount of $110 million. NiSource Finance elected to terminate the swap when Lehman Holdings Inc., guarantor under the applicable International Swaps and Derivatives Association agreement, filed for Chapter 11 bankruptcy protection on September 14, 2008, which constituted an event of default under the swap agreement between NiSource Finance and Lehman Brothers Special Financing Inc. The mark-to-market close-out value of this swap at the September 15, 2008 termination date was determined to be $4.8 million and was fully reserved in the third quarter of 2008. The termination of this swap did not impact NiSource’s ability to assert hedge accounting for its remaining fixed-to-variable interest rate swap agreements. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On July 22, 2003, NiSource Finance entered into fixed-to-variable interest rate swap agreements in a notional amount of $500 million with four counterparties with an 11-year term. NiSource Finance receives payments based upon a fixed 5.40% interest rate and pay a floating interest amount based on U.S. 6-month BBA LIBOR plus an average of 0.78% per annum. There was no exchange of premium at the initial date of the swaps. In addition, each party has the right to cancel the swaps on July 15, 2013. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Contemporaneously with the issuance on September 16, 2005 of $1 billion of its 5.25% and 5.45% notes, NiSource Finance settled $900 million of forward starting interest rate swap agreements with six counterparties. NiSource paid an aggregate settlement payment of $35.5 million which is being amortized from accumulated other comprehensive loss to interest expense over the term of the underlying debt, resulting in an effective interest rate of 5.67% and 5.88%, respectively. As of June 30, 2010, accumulated other comprehensive loss includes $13.6 million related to forward starting interest rate swap settlement. These derivative contracts are accounted for as a cash flow hedge. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">As of June 30, 2010 NiSource holds a 47.5% interest in Millennium Pipeline Company, L.L.C (Millennium). During 2008 Millennium entered into various interest rate swap agreements in order to protect against the risk of increasing interest rates. These interest rate swap derivatives are primarily accounted for as cash flow hedges by Millennium. As an equity method investment, NiSource is required to recognize a proportional share of Millennium’s OCI. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">On July 20, 2010, Millennium completed pricing on two tranches of fixed-rate notes in the private placement market totaling $725.0 million and the associated interest rate swaps were terminated. Millennium will issue the notes, settle the interim financing, terminate the sponsor guarantee and cash settle the interest rate hedges on August 26, 2010. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource’s location and fair value of derivative instruments on the Condensed Consolidated Balance Sheets (unaudited) were: </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="76%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">December 31,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Asset Derivatives</b> <i>(in millions)</i></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:45px; text-indent:-15px">Balance Sheet Location </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Fair Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging instruments</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management assets (current) </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>11.3</b></td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management assets (noncurrent) </div></td> <td> </td> <td> </td> <td align="right"><b>63.9</b></td> <td> </td> <td> </td> <td> </td> <td align="right">68.2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives designated as hedging instruments</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>75.2</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">68.2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging instruments</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management assets (current) </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>177.6</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">173.3</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management assets (noncurrent) </div></td> <td> </td> <td> </td> <td align="right"><b>176.3</b></td> <td> </td> <td> </td> <td> </td> <td align="right">169.4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives not designated as hedging instruments</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>353.9</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">342.7</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total Asset Derivatives</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>429.1</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">410.9</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  <tr style="font-size: 6pt"> <td width="76%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="8%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">December 31,</td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Liability Derivatives</b> <i>(in millions)</i></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"> <div style="margin-left:45px; text-indent:-15px">Balance Sheet Location </div></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">  <b>Fair Value</b>  </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">Fair Value</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives designated as hedging instruments</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management liabilities (current) </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1.0</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.0</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management liabilities (noncurrent) </div></td> <td> </td> <td> </td> <td align="right"><b>0.1</b></td> <td> </td> <td> </td> <td> </td> <td align="right">0.5</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives designated as hedging instruments</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1.1</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.5</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives not designated as hedging instruments</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management liabilities (current) </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>205.9</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">189.1</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:45px; text-indent:-15px">Price risk management liabilities (noncurrent) </div></td> <td> </td> <td> </td> <td align="right"><b>177.8</b></td> <td> </td> <td> </td> <td> </td> <td align="right">169.7</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total derivatives not designated as hedging instruments</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>383.7</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">358.8</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total Liability Derivatives</b> </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>384.8</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">360.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="9" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> <u> </u> <u> </u> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> <font style="font-variant: small-caps"> </font> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">The effect of derivative instruments on the Condensed Statements of Consolidated Income (Loss) (unaudited) was: </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><u>Derivatives in Cash Flow Hedging Relationships</u> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Three Months Ended, <i>(in millions):</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="33%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%">  </td> <td width="4%"> </td> <td width="33%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Amount of Gain (Loss)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Recognized in OCI on</td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Reclassified from AOCI</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Derivative (Effective</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">into Income (Effective</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 2px solid #000000">Portion)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Reclassified from AOCI</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Portion)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Derivatives in Cash Flow</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   <b>June 30,</b>   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   June 30,   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">into Income (Effective</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   <b>June 30,</b>   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   June 30,   </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Hedging Relationships</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Portion)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.4</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">110.7</td> <td> </td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.3</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">19.0</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td> </td> <td align="right"><b>0.4</b></td> <td> </td> <td> </td> <td> </td> <td align="right">0.4</td> <td> </td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td> </td> <td align="right"><b>(0.7</b></td> <td><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.4</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.8</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">111.1</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>(0.4</b></td> <td><b>)</b></td> <td> </td> <td align="left">$</td> <td align="right">18.6</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Six Months Ended <i>(in millions):</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="33%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="4%">  </td> <td width="4%"> </td> <td width="33%"> </td> <td width="3%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Amount of Gain (Loss)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Recognized in OCI on</td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Reclassified from AOCI</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6">Derivative (Effective</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">into Income (Effective</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 2px solid #000000">Portion)</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Reclassified from AOCI</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Portion)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Derivatives in Cash Flow</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   <b>June 30,</b>   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   June 30,   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">into Income (Effective</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   <b>June 30,</b>   </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">   June 30,   </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Hedging Relationships</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Portion)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.2</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">95.8</td> <td> </td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>0.8</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(24.8</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td> </td> <td align="right"><b>0.8</b></td> <td> </td> <td> </td> <td> </td> <td align="right">0.8</td> <td> </td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td> </td> <td align="right"><b>(1.3</b></td> <td><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(0.8</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>1.0</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">96.6</td> <td> </td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>(0.5</b></td> <td><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(25.6</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="19" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Three Months Ended, <i>(in millions):</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">in Income on Derivative</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">(Ineffective Portion and Amount</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Recognized in Income on</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Excluded from Effectiveness</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Derivative (Ineffective Portion</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Testing)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Derivatives in Cash Flow Hedging</td> <td> </td> <td nowrap="nowrap" align="center">and Amount Excluded from</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Effectiveness Testing)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>-</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>-</b></td> <td nowrap="nowrap"><b> </b></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>-</b></td> <td nowrap="nowrap"><b> </b></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> <u> </u> <u> </u> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> <font style="font-variant: small-caps"> </font> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Six Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">in Income on Derivative</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">(Ineffective Portion and Amount</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Recognized in Income on</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Excluded from Effectiveness</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Derivative (Ineffective Portion</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Testing)</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Derivatives in Cash Flow Hedging</td> <td> </td> <td nowrap="nowrap" align="center">and Amount Excluded from</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Effectiveness Testing)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>-</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>-</b></td> <td nowrap="nowrap"><b></b></td> <td> </td> <td> </td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>-</b></td> <td nowrap="nowrap"><b></b></td> <td> </td> <td align="left">$</td> <td align="right">-</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><u>Derivatives in Fair Value Hedging Relationships</u> </div> <div align="justify" style="font-size: 10pt; margin-top: 6pt">Three Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Derivatives in Fair Value Hedging</td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss) Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">in Income on Derivatives</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Income on Derivatives</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4.0</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4.0</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">8.2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Six Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Derivatives in Fair Value Hedging</td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss) Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">in Income on Derivatives</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Income on Derivatives</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate risk activities </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>6.1</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>6.1</b></td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">15.3</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Three Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Hedged Item in Fair Value Hedge</td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss) Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">in Income on Related Hedged Items</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Income on Related Hedged Item</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed-rate debt </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(4.0</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(8.2</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(4.0</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(8.2</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Six Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Gain (Loss) Recognized</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Hedged Item in Fair Value Hedge</td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss) Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 1px solid #000000">in Income on Related Hedged Items</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="center">Relationships</td> <td> </td> <td nowrap="nowrap" align="center">Income on Related Hedged Item</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Fixed-rate debt </div></td> <td> </td> <td align="left" valign="top">Interest expense, net</td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(6.1</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(15.3</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(6.1</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(15.3</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> <u> </u> <u> </u> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> <font style="font-variant: small-caps"> </font> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt"><u>Derivatives not designated as hedging instruments</u> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Three Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Realized/Unrealized Gain</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">(Loss) Recognized in Income on</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Derivatives *</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Derivatives Not Designated as Hedging</td> <td> </td> <td nowrap="nowrap" align="center">Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Instruments</td> <td> </td> <td nowrap="nowrap" align="center">Income on Derivatives</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Gas Distribution revenues</td> <td> </td> <td align="left"><b>$</b></td> <td align="right"><b>4.2</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.1</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Other revenues</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(4.5</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">20.8</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(1.0</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td> </td> <td align="right">0.4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(1.3</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td align="left">$</td> <td align="right">21.1</td> <td> </td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">* For the amounts of realized/unrealized gain (loss) recognized in income on derivatives disclosed in the table above, gains of $4.4 million and $0.1 million for the second quarter of 2010 and 2009, respectively, were deferred as allowed by regulatory orders. These amounts will be amortized to income over future periods of up to twelve months as specified in a regulatory order. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt">Six Months Ended, <i>(in millions)</i> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%">  <tr valign="bottom"> <td width="31%"> </td> <td width="2%"> </td> <td width="31%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="1%"> </td> <td width="12%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">Amount of Realized/Unrealized Gain</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7">(Loss) Recognized in Income on</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="7" style="border-bottom: 2px solid #000000">Derivatives *</td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center">Location of Gain (Loss)</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Derivatives Not Designated as Hedging</td> <td> </td> <td nowrap="nowrap" align="center">Recognized in</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left">Instruments</td> <td> </td> <td nowrap="nowrap" align="center">Income on Derivatives</td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>June 30, 2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2">June 30, 2009</td> <td> </td> </tr>   <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 2px solid #000000"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Gas Distribution revenues</td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(16.8</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(46.0</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Other revenues</td> <td> </td> <td> </td> <td align="right"><b>72.7</b></td> <td> </td> <td> </td> <td> </td> <td align="right">20.8</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Commodity price risk programs </div></td> <td> </td> <td align="left" valign="top">Cost of Sales</td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right"><b>(72.2</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left"> </td> <td align="right">(1.0</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Total </div></td> <td> </td> <td align="left" valign="top"> </td> <td> </td> <td nowrap="nowrap" align="left"><b>$</b></td> <td align="right"><b>(16.3</b></td> <td nowrap="nowrap"><b>)</b></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(26.2</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td colspan="11" align="left" style="border-top: 1px solid #000000"> </td> </tr>  </table> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">* For the amounts of realized/unrealized gain (loss) recognized in income on derivatives disclosed in the table above, losses of $16.2 million and $47.4 million for the first six months of 2010 and 2009, respectively, were deferred as allowed by regulatory orders. These amounts will be amortized to income over future periods of up to twelve months as specified in a regulatory order. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">During the second quarter of 2010 no amounts were reclassified related to NiSource’s cash flow hedges from accumulated other comprehensive income (loss) to Cost of Sales due to the probability that certain forecasted transactions would not occur. During the second quarter of 2009, NiSource reclassified $126.4 million ($75.1 million, net of tax) related to its cash flow hedges from accumulated other comprehensive loss to income (loss) from discontinued operations due to the probability that certain forecasted transactions would not occur related to the unregulated natural gas marketing business that NiSource had planned to sell. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">It is anticipated that during the next twelve months the expiration and settlement of cash flow hedge contracts will result in income statement recognition of amounts currently classified in accumulated other comprehensive income (loss) of approximately $0.7 million of loss, net of taxes. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource’s derivative instruments measured at fair value as of June 30, 2010 do not contain any credit-risk-related contingent features. </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">Certain NiSource affiliates have physical commodity purchase agreements that contain “ratings traggers” that require increases in collateral if the credit rating of NiSource or certain of its affiliates are rated below BBB- by Standard and Poor’s or below Baa3 by Moody’s. As of June 30, 2010, there were no accounts payable under physical commodity purchase agreements containing ratings traggers. </div>   </div>  <div style="font-family: 'Times New Roman',Times,serif"> <div align="justify" style="font-size: 10pt; margin-top: 0pt"> <u> </u> <u> </u> </div> <div align="left" style="font-size: 10pt; margin-top: 0pt"> <b> <font style="font-variant: small-caps"> </font> </b> </div> <div align="justify" style="font-size: 10pt; margin-top: 10pt">NiSource had $207.9 million and $173.2 million of cash on deposit with brokers for margin requirements associated with open derivative positions reflected within, “Restricted cash,” on the Condensed Consolidated Balance Sheets (unaudited) as of June 30, 2010 and December 31, 2009, respectively. </div> </div>  <!-- Begin Block Tagged Note false false false us-types:textBlockItemType textblock This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. 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