1.0.0.3 false Long-Lived Assets Impairments false 1 $ 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 2 Long-Lived Assets Impairments 0 rri_LongLivedAssetsImpairments rri false na duration string Long-Lived Assets Impairments false false false false false true false false false 1 false false 0 0 false false Long-Lived Assets Impairments false 3 Long-Lived Assets Impairments 1 us-gaap_DetailsOfImpairmentOfLongLivedAssetsHeldAndUsedByAssetTextBlock us-gaap true na duration string No definition available. false false false false false false false false false 1 false false 0 0 <div><div><p class="Heading2A" style="margin-top: 0in; margin-right: 0in; margin-bottom: 10.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: bold;"><a name="_AUC1093786397f448568aeeedb27a96fadb">(4)     LongLived Assets Impairments</a> We periodically evaluate the recoverability of our long-lived assets (property, plant and equipment and intangible assets), which involves significant judgment and estimates, when there are certain indicators (see below) that the carrying value of these assets may not be recoverable.  As of December 31, 2009, we had $4.9 billion of longlived assets.  This estimate affects all segments, which hold 99% of our total net property, plant and equipment and net intangible assets.  Our East Coal segment holds the largest portion of our net property, plant and equipment and net intangible assets at 59% of our consolidated total.  See notes 2(g) and 5. We evaluate our long-lived assets when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable.  Examples of such events or changes in circumstances are: •        a significant decrease in the market price of a long-lived asset •        a significant adverse change in the manner an asset is being used or its physical condition •        an adverse action by a regulator or legislature or an adverse change in the business climate •        an accumulation of costs significantly in excess of the amount originally expected for the construction or acquisition of an asset •        a current-period loss combined with a history of losses or the projections of future losses •        a change in our intent about an asset from an intent to hold to a greater than 50% likelihood that an asset will be sold or disposed of before the end of its previously estimated useful life When we believe an impairment condition may have occurred, we are required to estimate the undiscounted future cash flows associated with a long-lived asset or group of long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities for long-lived assets that are expected to be held and used.  Each plant (including its property, plant and equipment and intangible assets) was determined to be its own group. The determination of impairment is a two-step process, the first of which involves comparing the undiscounted cash flows to the carrying value of the asset.  If the carrying value exceeds the undiscounted cash flows, the fair value of the asset must be determined.  The fair value of an asset is the price that would be received from a sale of the asset in an orderly transaction between market participants at the measurement date.  Quoted market prices in active markets are the best evidence of fair value and are used as the basis for the measurement, when available.  In the absence of quoted prices for identical or similar assets, fair value is estimated using various internal and external valuation methods.  These methods include discounted cash flow analyses and reviewing available information on comparable transactions. Key Assumptions.  The following summarizes some of the most significant estimates and assumptions used in evaluating our plant level undiscounted cash flows.  The ranges for the fundamental view assumptions are to account for variability by year and region. <table class="MsoTableGrid" border="0" cellspacing="0" cellpadding="0" style="border: solid windowtext 1.0pt; text-align: center; font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">December 31,  2009 </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Undiscounted Cash Flow Scenarios Weightings: </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .2in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">5-year market forecast with escalation(1)(2)................................................................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">50% </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .2in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">5-year market forecast with fundamental view(1)......................................................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">50% </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Range of Assumptions in Fundamental View: </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .2in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Demand for power growth per year.............................................................................................. </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">1%-2% </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .2in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">After-tax rate of return on new construction(3)........................................................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">6.5%-9.5% </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="506" valign="bottom" style="width: 379.4pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .2in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Spread between natural gas and coal prices, $/MMBTU(4)...................................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="108" valign="bottom" style="width: 81.35pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">$3-$5 </td> <td width="25" valign="bottom" style="width: 18.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> </tr> </table> _______________ (1)     For each scenario, the first five years of cash flows are the same. (2)     We assumed an annual 2.5% escalation percentage beyond year five. (3)     The low to mid part of the range represents natural gasfired plants’ required returns and the mid to high part of the range represents coalfired and nuclear plants’ required returns. (4)     Natural gas and coal prices are prior to transportation costs.   Our Indian River plant is located in Florida where the merchant power market is primarily bilateral.  This plant had historically generated most of its revenues and gross margin from power purchase agreements, which expired in 2009.  Therefore, we believed it was more meaningful to develop different assumptions for our Indian River plant.  We estimated the cash flows and probability weightings around five different scenarios.  Four of the scenarios (weighted for a combined 70%) included power purchase agreements for varying time periods and ultimate sale of the plant and the remaining scenario (weighted at 30%) included a sale only. We estimate the undiscounted cash flows of our plants based on a number of subjective factors, including:  (a) appropriate weighting of undiscounted cash flow scenarios, as shown in the table above, (b) forecasts of future power generation margins, (c) estimates of our future cost structure, (d) environmental assumptions, (e) time horizon of cash flow forecasts and (f) estimates of terminal values of plants, if necessary, from the eventual disposition of the assets.  We did not include the cash flows associated with our economic hedges in our PJM region (East Coal and East Gas segments) as these cash flows are not specific to any one plant. Under the 5-year market forecast with escalation scenario, we use the following data:  (a) forward market curves for commodity prices as of December 18, 2009 for the first five years, (b) cash flow projections through the plant’s estimated remaining useful life and (c) escalation factor of cash flows of 2.5% per year after year five. Under the 5year market forecast with fundamental view scenario, we model all of our plants and those of others in the regions in which we operate using these assumptions:  (a) forward market curves for commodity prices as of December 18, 2009 for the first five years; (b) ranges shown in the table above used in developing our fundamental view beyond five years; (c) the markets in which we operate will continue to be deregulated and earn margins based on forward or projected market prices; (d) projected market prices for energy and capacity will be set by the forecasted available supply and level of forecasted demand—new supply will enter markets when market prices and associated returns, including any assumed subsidies for renewable energy, are sufficient to achieve minimum return requirements; (e) minimum return requirements on future construction of new generation facilities, as shown in the table above, will likely be driven or influenced by utilities, which we expect will have a lower cost of capital than merchant generators; (f) various ranges of environmental regulations, including those for SO2, NOx and greenhouse gas emissions; and (g) cash flow projections through the plant’s estimated remaining useful life. Fair Value.  Generally, fair value will be determined using an income approach or a market-based approach.  Under the income approach, the future cash flows are estimated as described above and then discounted using a riskadjusted rate.  Under a market-based approach, we may also consider prices of similar assets, consult with brokers or employ other valuation techniques. The following are key assumptions used in our fair value analyses for our two plants for which the undiscounted cash flows did not exceed the net book value of the long-lived assets. <table class="MsoTableGrid" border="0" cellspacing="0" cellpadding="0" style="border: solid windowtext 1.0pt; text-align: center; font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="431" valign="bottom" style="width: 323.25pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: .1in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="87" valign="bottom" style="width: 65.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">New Castle </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">Indian River </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> </tr> <tr> <td width="431" valign="bottom" style="width: 323.25pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: .1in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Valuation approach weightings: </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="87" valign="bottom" style="width: 65.5pt; border: none; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="431" valign="bottom" style="width: 323.25pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: .1in; margin-bottom: .0001pt; margin-left: .1in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Income approach.................................................................................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="87" valign="bottom" style="width: 65.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">             100% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">            100% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="431" valign="bottom" style="width: 323.25pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: .1in; margin-bottom: .0001pt; margin-left: .1in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Market-based approach........................................................................................ </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="87" valign="bottom" style="width: 65.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">                 0% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">                0% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> <tr> <td width="431" valign="bottom" style="width: 323.25pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: .1in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">Risk-adjusted discount rate for the estimated cash flows................................... </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="87" valign="bottom" style="width: 65.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">               15% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="center" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; white-space: nowrap;">  </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">              15% </td> <td width="17" valign="bottom" style="width: 12.5pt; padding: 0in 5.75pt 0in 5.75pt; border-top: 0px;"> <p class="Paragraph" align="left" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: 0in; text-indent: 0in; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: left; white-space: nowrap;">  </td> </tr> </table>   We only used the income approach as we believe no relevant market data exists for these two plants for which we were required to estimate fair value.  The discount rates reflect the uncertainty of the plants’ cash flows and their inability to support meaningful amounts of debt, and was determined considering factors such as the potential for future capacity and power purchase agreement revenues and regulatory, commodity and macroeconomic conditions. We determined that our New Castle plant, which consists of property, plant and equipment, was impaired by $120 million as of December 31, 2009.  This impairment was primarily due to the expected levels of low profitability given that the plant would likely require significant environmental capital expenditures in the future under existing and likely environmental regulations.  We determined that our Indian River plant, which consists of property, plant and equipment and various intangible assets (water rights, permits and emission allowances), was impaired by $91 million as of December 31, 2009.  This impairment was primarily due to a power purchase agreement with a utility in Florida expiring in December 2009 and because of the uncertainty that a replacement power purchase agreement will occur for the foreseeable future.  We believe the remaining net book values of $44 million for New Castle and $52 million for Indian River represent our best estimates of fair values as of December 31, 2009. Certain disclosures are required about nonfinancial assets and liabilities measured at fair value on a nonrecurring basis.  This applies to our long-lived assets for which we were required to determine fair value.  A fair value hierarchy exists for inputs used in measuring fair value that maximizes the use of observable inputs (Level 1 or Level 2) and minimizes the use of unobservable inputs (Level 3) by requiring that the observable inputs be used when available.  See note 2(d) for further discussion about the three levels.  These assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.  Our assessment of the significance of a particular input to the fair value measurement requires judgment and affects the valuation of fair value and the assets’ placement within the fair value hierarchy levels. <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td colspan="5" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in;"> December 31, 2009 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> 2009 Impairment </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> Level 1 </td> <td width="16" valign="bottom" style="width: 12.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in; height: .1in;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in; height: .1in;"> Level 2 </td> <td width="16" valign="bottom" style="width: 12.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in; height: .1in;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in; height: .1in;"> Level 3 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> Charges </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td colspan="7" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in; height: .1in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code>   </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-top: 0in; margin-right: .1in; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> New Castle property, plant and equipment(1)............................................... </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         44 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $       120 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-top: 0in; margin-right: .1in; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Indian River property, plant and equipment, water rights, permits and emission allowances(2).............................. </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">                52 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">                91 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> <tr style="height: .1in;"> <td width="232" valign="bottom" style="width: 174.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-top: 0in; margin-right: .1in; margin-left: .3in; text-indent: -.1in; text-autospace: none;"><code> Total......................................................... </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $         96 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">    $       211 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; height: .1in; border-top: 0px;">   </td> </tr> </table> ________________ (1)     New Castle is in our East Coal segment. (2)     Indian River is in our Other segment.   Effect if Different Assumptions Used.  The estimates and assumptions used to determine whether longlived assets are recoverable or whether impairment exists are subject to high degree of uncertainty.  Different assumptions as to power prices, fuel costs, our future cost structure, environmental assumptions and remaining useful lives and ultimate disposition values of our plants would result in estimated future cash flows that could be materially different than those considered in the recoverability assessments as of December 31, 2009 and could result in having to estimate the fair value of other plants. Use of a different riskadjusted discount rate would result in fair value estimates for the two plants for which we recorded an impairment in 2009 that could be materially greater than or less than the fair value estimates as of December 31, 2009.  Any future fair value estimates for our New Castle and Indian River longlived assets that are greater than the fair value estimates as of December 31, 2009 will not result in reversal of the 2009 impairment charges. </div></div> (4)     LongLived Assets Impairments We periodically evaluate the recoverability of our long-lived assets (property, plant and equipment false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true