1.0.0.3 false Summary of Significant Accounting Policies 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 Summary of Significant Accounting Policies 0 rri_SummaryOfSignificantAccountingPolicies rri false na duration string Summary of Significant Accounting Policies false false false false false true false false false 1 false false 0 0 false false Summary of Significant Accounting Policies false 3 Summary of Significant Accounting Policies 1 us-gaap_SignificantAccountingPoliciesTextBlock 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="_AUC19f7ba3ab61440cea7a82490c4597a5a">(2)     Summary of Significant Accounting Policies</a> <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(a)     Use of Estimates and Market Risk and Uncertainties.</h3> Management makes estimates and assumptions to prepare financial statements in conformity with accounting principles generally accepted in the United States of America (GAAP) that affect: <p class="Bullet03indent" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .5in; text-indent: -.2in; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line;">•        the reported amounts of assets, liabilities and equity <p class="Bullet03indent" style="margin-top: 0in; margin-right: 0in; margin-bottom: .0001pt; margin-left: .5in; text-indent: -.2in; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line;">•        the reported amounts of revenues and expenses <p class="Bullet03indent" style="margin-top: 0in; margin-right: 0in; margin-bottom: 10.0pt; margin-left: .5in; text-indent: -.2in; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line;">•        our disclosure of contingent assets and liabilities at the date of the financial statements Actual results could differ from those estimates. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances.  We adjust such estimates and assumptions when facts and circumstances dictate.  We have evaluated subsequent events for recording and disclosure to February 25, 2010, the date the financial statements were issued. Our critical accounting estimates include:  (a) fair value of derivative assets and liabilities; (b) recoverability and fair value of longlived assets; (c) loss contingencies and (d) deferred tax assets, valuation allowances and tax liabilities. We are subject to various risks inherent in doing business.  See notes 2(c), 2(d), 2(e), 2(f), 2(g), 2(l), 2(m), 2(n), 2(o), 2(p), 3, 4, 5, 6, 7, 10, 11, 12, 13, 14, 15, 16, 17, 21, 22 and 23. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(b)     Principles of Consolidation.</h3> We include our accounts and those of our whollyowned subsidiaries in our consolidated financial statements, excluding Channelview during its deconsolidation from August 2007 through October 2009.  We do not consolidate three power generating facilities (see note 15(a)), which are under operating leases, or a 50% equity investment in a cogeneration plant. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(c)     Revenues.</h3> Power Generation Revenues.  We record gross revenues from the sales of power and other energy services under the accrual method.  Electric power and other energy services are sold at marketbased prices through existing power exchanges or third party contracts.  Energy sales and services that have been delivered but not billed by period end are estimated.  During 2009, 2008 and 2007, we recorded $922 million, $2.1 billion and $2.1 billion, respectively, in power generation revenues. Capacity Revenues.  We record gross revenues from the sales of capacity under the accrual method.  These sales are sold at marketbased prices primarily through the RPM auction market in PJM.  We also sell in MISO, Cal ISO and other markets where we enter into agreements with counterparties.  Sales that have been delivered but not billed by period end are estimated.  During 2009, 2008 and 2007, we recorded $536 million, $455 million and $268 million, respectively, in capacity revenues. Natural Gas Sales Revenues.  We record gross revenues from the sales of natural gas under the accrual method.  These sales are sold at marketbased prices through third party contracts or related party affiliates.  Sales that have been delivered but not billed by period end are estimated.  During 2009, 2008 and 2007, we recorded $381 million, $948 million and $994 million, respectively, in natural gas sales revenues. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(d)     Fair Value Measurements.</h3> Fair Value Hierarchy and Valuation Techniques.  We apply recurring fair value measurements to our financial assets and liabilities.  In determining fair value, we generally use a market approach and incorporate assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation techniques.  These inputs can be readily observable, market corroborated, or generally unobservable internally developed inputs.  Based on the observability of the inputs used in our valuation techniques, our financial assets and liabilities are classified as follows: <p class="MsoNormal" style="margin: 0in; margin-bottom: 10.0pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; margin-top: 0in; margin-right: 0in; margin-left: .55in; text-indent: -.55in;">Level 1:   Level 1 represents unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date.  This category primarily includes our energy derivative instruments that are exchange-traded or that are cleared and settled through the exchange.  Our cash equivalents and availableforsale and trading securities are also valued using Level 1 inputs. <p class="MsoNormal" style="margin: 0in; margin-bottom: 10.0pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; margin-top: 0in; margin-right: 0in; margin-left: .55in; text-indent: -.55in;">Level 2:   Level 2 represents quoted market prices for similar assets or liabilities in active markets, quoted market prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data.  This category includes emission allowances futures that are exchangetraded and overthecounter (OTC) derivative instruments such as generic swaps, forwards and options. <p class="MsoNormal" style="margin: 0in; margin-bottom: 10.0pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; margin-top: 0in; margin-right: 0in; margin-left: .55in; text-indent: -.55in;">Level 3:   This category includes our energy derivative instruments whose fair value is estimated based on internally developed models and methodologies utilizing significant inputs that are generally less readily observable from objective sources (such as implied volatilities and correlations).  Our OTC, complex or structured derivative instruments that are transacted in less liquid markets with limited pricing information are included in Level 3.  Examples are coal contracts, longer term natural gas contracts and options valued using implied or internally developed inputs. We value some of our OTC, complex or structured derivative instruments using valuation models, which utilize inputs that may not be corroborated by market data, such as market prices for power and fuel, price shapes, volatilities and correlations as well as other relevant factors.  When such inputs are significant to the fair value measurement, the derivative assets or liabilities are classified as Level 3 when we do not have corroborating market evidence to support significant valuation model inputs and cannot verify the model to market transactions.  We believe the transaction price is the best estimate of fair value at inception under the exit price methodology.  Accordingly, when a pricing model is used to value such an instrument, the resulting value is adjusted so the model value at inception equals the transaction price.  Valuation models are typically impacted by Level 1 or Level 2 inputs that can be observed in the market, as well as unobservable Level 3 inputs.  Subsequent to initial recognition, we update Level 1 and Level 2 inputs to reflect observable market changes.  Level 3 inputs are updated when corroborated by available market evidence.  In the absence of such evidence, management’s best estimate is used. See note 4 for discussion of our fair value measurements for some nonfinancial assets. Fair Value of Derivative Instruments and Certain Other Assets.  We apply recurring fair value measurements to our financial assets and liabilities.  Fair value measurements of our financial assets and liabilities are as follows: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .4pt; border-collapse: separate;"> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="9" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> December 31, 2009 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   Level 1 </td> <td width="18" valign="bottom" style="width: 13.5pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;"> Level 2 </td> <td width="18" valign="bottom" style="width: 13.5pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;">  Level 3 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Reclassifications(1) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total Fair Value </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="9" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total derivative assets................ </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         137 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $           46 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             4 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $            (2) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; 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="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         185 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total derivative liabilities........... </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  49 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                134 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  32 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  (2) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                213 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Cash equivalents(2)...................... </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                965 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                965 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="155" valign="bottom" style="width: 116.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Other assets(3)........................... </td> <td width="6" valign="bottom" style="width: 4.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  34 </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="78" valign="bottom" style="width: 58.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  34 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     Reclassifications are required to reconcile to our consolidated balance sheet presentation. (2)     Represent investments in money market funds and are included in cash and cash equivalents and restricted cash in our consolidated balance sheet.  We had $943 million of cash equivalents included in cash and cash equivalents and $22 million of cash equivalents included in restricted cash. (3)     Include $13 million in available-for-sale securities (shares in a public exchange) and $21 million in trading securities (rabbi trust investments (which are comprised of mutual funds) associated with our nonqualified deferred compensation plans for key and highly compensated employees).   <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .4pt; border-collapse: separate;"> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="9" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> December 31, 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; 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;">   </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;"> Level 2 </td> <td width="16" valign="bottom" style="width: 12.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </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;">  Level 3 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   Reclassifications(1) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> Total Fair Value </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="9" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total derivative assets......... </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         125 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         111 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             7 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $            (3) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         240 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total derivative liabilities.... </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  17 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                208 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                121 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  (3) </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                343 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Cash equivalents (2).............. </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">             1,004 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">             1,004 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="151" valign="bottom" style="width: 113.6pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Other assets(3)....................... </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  29 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="90" valign="bottom" style="width: 67.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">                 — </td> <td width="18" valign="bottom" style="width: 13.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  29 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     Reclassifications are required to reconcile to our consolidated balance sheet presentation. (2)     Represent investments in money market funds and are included in cash and cash equivalents in our consolidated balance sheet.  We had $1.0 billion of cash equivalents included in cash and cash equivalents. (3)     Include $8 million in available-for-sale securities (shares in a public exchange) and $21 million in trading securities (rabbi trust investments (which is comprised of mutual funds) associated with our non-qualified deferred compensation plans for key and highly compensated employees).   The following is a reconciliation of changes in fair value of net derivative assets and liabilities classified as Level 3: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .4pt; border-collapse: separate;"> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> Net Derivatives (Level 3) </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2009 </td> <td width="8" valign="top" style="width: 6.3pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;"> 2008 </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="top" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="top" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Balance, beginning of period (net asset (liability))........................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          (114) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             21 </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total gains (losses) realized/unrealized: </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Included in earnings(1).................................................................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  (79) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  127 </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Purchases, issuances and settlements (net).................................................................. </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  165 </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">                (262) </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Transfers in and/or out of Level 3 (net).......................................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                   — </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                   — </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Balance, end of period (net asset (liability))...................................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $            (28) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          (114) </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Changes in unrealized gains (losses) relating to derivative assets and liabilities still held as of December 31, 2009 and 2008: </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Revenues................................................................................................................................ </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $              (1) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             — </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Cost of sales........................................................................................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  (23) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                      5 </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="370" valign="bottom" style="width: 277.35pt; padding: 0in 0in 0in 0in; border-top: 0px;"> ......... Total............................................................................................................................... </td> <td width="8" valign="top" style="width: 6.05pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $            (24) </td> <td width="8" valign="top" style="width: 6.3pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="126" valign="bottom" style="width: 94.65pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               5 </td> <td width="17" valign="bottom" style="width: 12.6pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     Recorded in revenues and cost of sales.   Nonperformance Risk on Derivative Liabilities.  Fair value measurement of our derivative liabilities reflects the nonperformance risk related to that liability, which is our own credit risk.  We derive our nonperformance risk by applying our credit default swap spread against the respective derivative liability.  As of December 31, 2009 and 2008, we had $1 million and $15 million, respectively, in reserves for nonperformance risk on derivative liabilities.   This change in accounting estimate had an impact during 2008 as follows (income (loss)): <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="368" valign="bottom" style="width: 276.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="368" valign="bottom" style="width: 276.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="120" valign="bottom" style="width: 1.25in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Loss from Continuing Operations before Income Taxes </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Net Loss </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="368" valign="bottom" style="width: 276.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="368" valign="bottom" style="width: 276.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="120" valign="bottom" style="width: 1.25in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="368" valign="bottom" style="width: 276.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Total derivative liabilities............................................................................. </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="120" valign="bottom" style="width: 1.25in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               15 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (1) </td> <td width="112" valign="bottom" style="width: 84.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               10 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (2) </td> </tr> </table> _______________ (1)     This amount represented a decrease in our net derivative liabilities with the corresponding unrealized gains of $7 million and $8 million recorded in revenues and cost of sales, respectively. (2)     This represents an $0.03 impact on loss per share for 2008.   Fair Value of Other Financial Instruments.  The fair values of cash, accounts receivable and payable and margin deposits approximate their carrying amounts.  Values of our debt for continuing operations (see note 6) are: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="7" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> December 31, </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> 2009 </td> <td width="16" valign="bottom" style="width: 12.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;"> 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Carrying Value </td> <td width="8" valign="bottom" style="width: 6.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;"> Fair Value(1) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> Carrying Value </td> <td width="16" valign="bottom" style="width: 12.0pt; border: none; border-top: 0px; padding: 0in 0in 0in 0in;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border-top: 0px; border-left: none; border-bottom: solid windowtext 1.0pt; border-right: none; padding: 0in 0in 0in 0in;"> Fair Value(1) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="7" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; 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="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Fixed rate debt................................................ </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          2,355 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       2,333 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">    $          2,623 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       2,168 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="184" valign="bottom" style="width: 138.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Total debt................................................. </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="112" valign="bottom" style="width: 84.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          2,355 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       2,333 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">    $          2,623 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       2,168 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     We based the fair values of our fixed rate debt on market prices and quotes from an investment bank.   See notes 2(e) and 6. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(e)     Derivatives and Hedging Activities.</h3> Changes in commodity prices prior to the energy delivery period are inherent in our business.  Accordingly, we may enter selective hedges, including originated transactions, to (a) seek potential value greater than what is available in the spot or dayahead markets, (b) address operational requirements or (c) seek a specific financial objective.  For our risk management activities, we use derivative and nonderivative contracts that provide for settlement in cash or by delivery of a commodity.  We use derivative instruments such as futures, forwards, swaps and options to execute our hedge strategy.  We may also enter into derivatives to manage our exposure to changes in prices of emission and exchange allowances.  We account for our derivatives under one of three accounting methods (marktomarket, accrual (under the normal purchase/normal sale exception to fair value accounting) or cash flow hedge accounting) based on facts and circumstances.  See note 2(d) for discussion on fair value measurements. A derivative is recognized at fair value in the balance sheet whether or not it is designated as an accounting hedge, except for derivative contracts designated as normal purchase/normal sale exceptions, which are not in our consolidated balance sheet or results of operations prior to settlement resulting in accrual accounting treatment. Realized gains and losses on derivative contracts used for risk management purposes and not held for trading purposes are reported either on a net or gross basis based on the relevant facts and circumstances.  Hedging transactions that do not physically flow are included in the same caption as the items being hedged.  A summary of our derivative activities and classification in our results of operations is: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="72" valign="bottom" style="width: .75in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; text-autospace: none;"><code> Instrument </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Primary Risk Exposure </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="bottom" style="width: 189.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Purpose for Holding or Issuing Instrument (1) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="bottom" style="width: 85.5pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Transactions that Physically Flow/Settle(2) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Transactions that Financially Settle (3) </td> </tr> <tr> <td width="72" valign="bottom" style="width: .75in; border: none; padding: 0in 0in 0in 0in; 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="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="bottom" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="bottom" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Power futures, forward, swap and option contracts </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Price risk </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Power sales to customers </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Power purchases related to operations </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Power purchases/sales related to legacy trading and noncore asset management positions(4) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas and fuel futures, forward, swap and option contracts </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Price risk </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas and fuel sales related to operations </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues/Cost of sales </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas sales related to power generation(5) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> N/A(6) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas and fuel purchases related to operations </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas and fuel purchases/sales related to legacy trading and noncore asset management positions(4) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Cost of sales </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> </tr> <tr> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Emission and exchange allowances futures(7) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="54" valign="top" style="width: 40.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Price risk </td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="252" valign="top" style="width: 189.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Purchases/sales of emission and exchange allowances </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="114" valign="top" style="width: 85.5pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> N/A(6) </code></pre></td> <td width="12" valign="top" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="top" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Revenues/Cost of sales </code></pre></td> </tr> </table> _______________ (1)     The purpose for holding or issuing does not impact the accounting method elected for each instrument. (2)     Includes classification of unrealized gains and losses for derivative transactions reclassified to inventory or intangibles upon settlement. (3)     Includes classification for marktomarket derivatives and amounts reclassified from accumulated other comprehensive income (loss) related to cash flow hedges. (4)     See discussion below regarding trading activities. (5)     Natural gas financial swaps and options transacted to economically hedge generation in the PJM region. (6)     N/A is not applicable. (7)     Includes emission and exchange allowances futures for sulfur dioxide (SO2), nitrogen oxide (NOX) and carbon dioxide (CO2).   In addition to price risk, we are exposed to credit and operational risk.  We have a risk control framework to manage these risks, which include:  (a) measuring and monitoring these risks, (b) review and approval of new transactions relative to these risks, (c) transaction validation and (d) portfolio valuation and reporting.  We use marktomarket valuation, valueatrisk and other metrics in monitoring and measuring risk.  Our risk control framework includes a variety of separate but complementary processes, which involve commercial and senior management and our Board of Directors.  See note 2(f) for further discussion of our credit policy. Earnings Volatility from Derivative Instruments.  We procure power, natural gas, coal, oil, natural gas transportation and storage capacity and other energyrelated commodities to support our business.  We may experience volatility in our earnings resulting from contracts receiving accrual accounting treatment while related derivative instruments are marked to market through earnings.  As discussed in note 2(a), our financial statements include estimates and assumptions made by management throughout the reporting periods and as of the balance sheet dates.  It is reasonable that subsequent to the balance sheet date of December 31, 2009, changes, some of which could be significant, have occurred in the inputs to our various fair value measures, particularly relating to commodity price movements. Unrealized gains and losses on energy derivatives consist of both gains and losses on energy derivatives during the current reporting period for derivative assets or liabilities that have not settled as of the balance sheet date and the reversal of unrealized gains and losses from prior periods for derivative assets or liabilities that settled prior to the balance sheet date during the current reporting period. Cash Flow Hedges.  During the first quarter of 2007, we de-designated our remaining cash flow hedges; therefore, as of December 31, 2009 and 2008, we do not have any designated cash flow hedges.  The fair value of our de-designated cash flow hedges are deferred in accumulated other comprehensive loss, net of tax, to the extent the contracts have been effective as hedges, until the forecasted transactions affect earnings.  At the time the forecasted transactions affect earnings, we reclassify the amounts in accumulated other comprehensive loss into earnings.  Presentation of Derivative Assets and Liabilities.  We present our derivative assets and liabilities on a gross basis (regardless of master netting arrangements with the same counterparty).  Cash collateral amounts are also presented on a gross basis.  <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(f)      Credit Risk.</h3> We have a credit policy that governs the management of credit risk, including the establishment of counterparty credit limits and specific transaction approvals.  Credit risk is monitored daily and the financial condition of our counterparties is reviewed periodically.  We try to mitigate credit risk by entering into contracts that permit netting and allow us to terminate upon the occurrence of certain events of default.  We measure credit risk as the replacement cost for our derivative positions plus amounts owed for settled transactions. Our credit exposure is based on our derivative assets and accounts receivable from our counterparties, after taking into consideration netting within each contract and any master netting contracts with counterparties.  We believe this represents the maximum potential loss we could incur if our counterparties failed to perform according to their contract terms. As of December 31, 2009, our derivative assets and accounts receivable, after taking into consideration netting within each contract and any master netting contracts with counterparties, are: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="200" valign="bottom" style="width: 150.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Credit Rating Equivalent </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> Exposure Before Collateral(1) (2) </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> Credit Collateral Held(3) </td> <td width="8" valign="top" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Exposure Net of Collateral </td> <td width="8" valign="top" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="top" style="width: 66.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Number of Counterparties >10% </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> Net Exposure of Counterparties >10% </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="10" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (dollars in millions) </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; 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="8" valign="top" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="top" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="top" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="top" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Investment grade....................................... </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       126 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         12 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;">    $       114 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  3 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (4) </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $         91 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Non-investment grade.............................. </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  3 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  3 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;">               — </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> No external ratings: </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .3in; text-indent: -.1in; text-autospace: none;"><code> Internally rated – Investment grade. </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                48 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">               — </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; padding: 0in 0in 0in 0in; border-top: 0px;">                48 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  1 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (5) </td> <td width="80" valign="bottom" style="width: 60.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                42 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .3in; text-indent: -.1in; text-autospace: none;"><code> Internally rated – Non-investment grade.................................................. </code></pre></td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">                17 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">                16 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                  1 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">               — </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="200" valign="bottom" style="width: 150.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .5in; 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; 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; border-top: 0px;">    $       194 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">    $         31 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="72" valign="bottom" style="width: .75in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $       163 </td> <td width="8" valign="bottom" style="width: 6.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">                  4 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">    $       133 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     The table includes amounts related to certain contracts classified as discontinued operations in our consolidated balance sheets.  These contracts settle through the expiration date in 2013. (2)     The table excludes amounts related to contracts classified as normal purchase/normal sale and non-derivative contractual commitments that are not recorded in our consolidated balance sheets, except for any related accounts receivable.  Such contractual commitments contain credit and economic risk if a counterparty does not perform.  Nonperformance could have a material adverse impact on our future results of operations, financial condition and cash flows. (3)     Collateral consists of cash, standby letters of credit and other forms approved by management. (4)     These counterparties are two power grid operators and one financial institution. <p class="MsoNormal" style="margin: 0in; margin-bottom: 6.0pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; margin-top: 0in; margin-right: 0in; margin-left: .25in; text-indent: -.25in; text-autospace: none;">(5)     This counterparty is a financial institution. As of December 31, 2008, three investment grade counterparties (a financial institution and two power grid operators) represented 63% ($156 million) of our credit exposure. Based on our current credit ratings, any additional collateral postings that would be required from us due to a credit downgrade would be immaterial.  As of December 31, 2009 and December 31, 2008, we have posted cash margin deposits of $117 million and $70 million, respectively, as collateral for our derivative liabilities receiving marktomarket accounting treatment and our accounts payable (classified either as continuing or discontinued operations).  Additionally, as of December 31, 2009 and 2008, we have $5 million and $103 million, respectively, in letters of credit issued as collateral for our derivative liabilities receiving marktomarket accounting treatment and our accounts payable (classified either as continuing or discontinued operations).  See note 7. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(g)     Property, Plant and Equipment and Depreciation Expense.</h3> We compute depreciation using the straightline method based on estimated useful lives.  Depreciation expense was $241 million, $241 million and $283 million during 2009, 2008 and 2007, respectively. <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" rowspan="2" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Estimated Useful Lives (Years) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> December 31, </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-align: center; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2009 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;"> 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; line-height: 8.0pt; text-autospace: none;"><code>   </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; text-align: center; line-height: 8.0pt; white-space: nowrap;">  </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <p class="MsoNormal" align="center" style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; text-align: center; line-height: 8.0pt; white-space: nowrap;">  </td> <td colspan="3" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> <p class="MsoNormal" align="center" style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; layout-grid-mode: line; text-align: center; line-height: 8.0pt; white-space: nowrap;">(in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Electric generation facilities.................................................. </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">            5 – 35 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $          5,378 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (1) </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          5,481 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (2) </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Building and building improvements.................................. </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">            5 – 15 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     13 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     27 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Land improvements................................................................ </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">          20 – 35 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                   191 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                   206 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Other......................................................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">            3 – 10 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                   254 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                   241 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Land.......................................................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                   109 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     82 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Assets under construction................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                   386 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">                   381 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Total......................................................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">                6,331 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="88" valign="bottom" style="width: 66.0pt; border: none; padding: 0in 0in 0in 0in; border-top: 0px;">                6,418 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Accumulated depreciation.................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">               (1,729) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">               (1,598) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Property, plant and equipment, net..................................... </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $          4,602 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">    $          4,820 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     Includes $234 million ($212 million net of accumulated depreciation) relating to leasehold improvements for the Keystone, Shawville and Conemaugh plants.  The original depreciation periods for these leasehold improvements range from primarily 10 to 31 years. (2)     Includes $169 million ($152 million net of accumulated depreciation) relating to leasehold improvements for the Keystone, Shawville and Conemaugh plants.   See note 4 for discussion of our recoverability assessments of longlived assets (property, plant and equipment and related intangible assets) and the impairments recognized during 2009 for our New Castle and Indian River plants. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(h)     Intangible Assets and Amortization Expense.</h3> Goodwill.  We performed our goodwill impairment test annually on April 1 and when events or changes in circumstances indicated that the carrying value may not have been recoverable.  During 2008, we impaired our remaining goodwill of continuing operations.  See note 5. Other Intangibles.  We recognize specifically identifiable intangible assets, including emission allowances, power generation site permits and water rights, when specific rights and contracts are acquired.  We have no intangible assets with indefinite lives recorded as of December 31, 2009 and 2008.  See note 4 for discussion of our recoverability assessments of longlived assets (property, plant and equipment and related intangible assets) and the impairments recognized during 2009 for our New Castle and Indian River plants. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(i)      Capitalization of Interest Expense.</h3> We capitalize interest on capital projects greater than $10 million and under development for one year or more.  During 2009, 2008 and 2007, we capitalized $23 million, $17 million and $4 million of interest expense, respectively, relating primarily to environmental capital expenditures for SO2 emission reductions at the Cheswick and Keystone plants. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(j)      Cash and Cash Equivalents.</h3> We record all highly liquid shortterm investments with maturities of three months or less as cash equivalents. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(k)    Restricted Cash.</h3> Restricted cash includes cash at certain subsidiaries, the distribution or transfer of which is restricted by financing and other agreements. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(l)      Inventory.</h3> We value fuel inventories at the lower of average cost or market.  We reduce these inventories as they are used in the production of electricity or sold.  During 2009, 2008 and 2007, we recorded $101 million, $40 million and $5 million, respectively, for lower of average cost or market valuation adjustments in cost of sales.  We value materials and supplies at average cost.  We remove these inventories when they are used for repairs, maintenance or capital projects.  Sales of fuel inventory are classified as operating activities in the consolidated statement of cash flows. <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in;"> December 31, </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2009 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; 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; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Materials and supplies, including spare parts.................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             187 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $             159 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Coal......................................................................................................................... </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     97 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     90 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Natural gas............................................................................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     14 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     25 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Heating oil.............................................................................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     34 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     41 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .2in; text-indent: -.1in; text-autospace: none;"><code> Total inventory.................................................................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             332 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $             315 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table>   <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(m)    Environmental Costs.</h3> We expense environmental expenditures related to existing conditions that do not have future economic benefit.  We capitalize environmental expenditures for which there is a future economic benefit.  We record liabilities for expected future costs, on an undiscounted basis, related to environmental assessments and/or remediation when they are probable and can be reasonably estimated.  See note 16(b). <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(n)     Asset Retirement Obligations.</h3> Our asset retirement obligations relate to future costs primarily associated with dismantling power plants and coal ash disposal site closures.  Changes in asset retirement obligations, classified in other longterm liabilities, are: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2009 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2008 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="3" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code>   </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .1in; text-indent: -.1in; text-autospace: none;"><code> Balance, beginning of period.............................................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               19 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $               21 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .25in; text-indent: -.1in; text-autospace: none;"><code> Revisions in estimated cash flows................................................................. </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                       8 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> (1) </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (1) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .25in; text-indent: -.1in; text-autospace: none;"><code> Payments........................................................................................................... </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                      (4) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (1) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .25in; text-indent: -.1in; text-autospace: none;"><code> Accretion expense............................................................................................ </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                       2 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                       2 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; margin-left: .25in; text-indent: -.1in; text-autospace: none;"><code> Other, net........................................................................................................... </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                       1 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                      (2) </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="392" valign="bottom" style="width: 294.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Balance, end of period.......................................................................................... </code></pre></td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="104" valign="bottom" style="width: 78.0pt; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               26 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               19 </td> <td width="16" valign="bottom" style="width: 12.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> _______________ (1)     Primarily relates to changes in timing of expected closures and higher estimated costs.   As of December 31, 2009 and 2008, we have $20 million and $18 million, respectively (classified in other longterm assets) on deposit with the state of Pennsylvania to guarantee our obligation related to future closures of coal ash disposal landfill sites.  See note 16(b). <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(o)     Repair and Maintenance Costs for Power Generation Assets.</h3> We expense repair and maintenance costs as incurred. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(p)     Deferred Financing Costs.</h3> We incur costs, which are deferred and amortized over the life of the debt, in connection with obtaining financings.  See note 7.  Changes in deferred financing costs, classified in other longterm assets, are: <table class="MsoNormalTable" border="0" cellspacing="0" cellpadding="0" style="font-size: 10.0pt; font-family: 'Times New Roman'; border-collapse: separate;"> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2009 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2008 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> 2007 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td colspan="5" valign="bottom" style="border-top: 0px; padding: 0in 0in 0in 0in;"> (in millions) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> <pre style="margin: 0in; margin-bottom: .0001pt; font-size: 10.0pt; font-family: 'Times New Roman'; text-autospace: none;"><code> Balance, beginning of period................................................ </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $               54 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $               62 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">    $               86 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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-autospace: none;"><code> Capitalized......................................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                     31 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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-autospace: none;"><code> Amortized.......................................................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (7) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (7) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (9) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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-autospace: none;"><code> Accelerated amortization/write-offs(1).......................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (5) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                      (1) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; padding: 0in 0in 0in 0in; border-top: 0px;">                    (41) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; 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-autospace: none;"><code> Channelview deconsolidation....................................... </code></pre></td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                     — </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: solid windowtext 1.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">                      (5) </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> <tr> <td width="300" valign="bottom" style="width: 225.0pt; padding: 0in 0in 0in 0in; border-top: 0px;"> Balance, end of period........................................................... </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               42 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               54 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> <td width="96" valign="bottom" style="width: 1.0in; border: none; border-bottom: double windowtext 1.5pt; padding: 0in 0in 0in 0in; border-top: 0px;">    $               62 </td> <td width="12" valign="bottom" style="width: 9.0pt; padding: 0in 0in 0in 0in; border-top: 0px;">   </td> </tr> </table> ______________ (1)     Amounts are considered a portion of the net carrying value of the related debt and are expensed when accelerated as a component of debt extinguishments.   <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(q)     New Accounting Pronouncements Adopted.</h3> FASB Codification.  The Financial Accounting Standards Board’s Accounting Standards Codification became effective for us in the third quarter of 2009.  The Codification brings together in one place all authoritative GAAP except for rules, regulations and interpretative releases of the Securities and Exchange Commission which are also authoritative GAAP for us.  This change did not materially affect our consolidated financial statements. Measuring Liabilities at Fair Value.  This guidance provides clarification for measuring liabilities at fair value when there may be a lack of observable market information and requires an entity under those circumstances to employ techniques that use (a) the quoted price of the identical liability when traded as an asset, (b) quoted prices for similar liabilities or similar liabilities when traded as assets or (c) another valuation technique consistent with the fair value measurement principles such as an income approach or a market approach.  This change did not impact our consolidated financial statements.  See note 2(d). Disclosures about Plan Assets.  This guidance requires enhanced disclosures regarding investment policies and strategies for our benefit plan assets as well as information about fair value measurements of plan assets.  See note 11. Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.  This guidance provides direction on how to determine the fair value of certain assets and liabilities when there has been a significant decrease in the volume and level of activity for an asset or liability compared with normal market activity for the asset or liability.  This guidance did not have a significant impact on our consolidated financial statements since the markets in which we purchase and sell commodities and derivative instruments are not distressed.  See notes 2(d) and 6. <h3 style="margin-top: 0in; margin-right: 0in; margin-bottom: 8.0pt; margin-left: .3in; text-indent: -.3in; font-size: 10.0pt; font-family: 'Times New Roman Bold'; layout-grid-mode: line; font-weight: normal; font-style: italic;">(r)     New Accounting Pronouncements Not Yet Adopted.</h3> Improving Financial Reporting Around Variable Interest Entities.  For 2007, 2008 and 2009, we do not have any offbalance sheet arrangements to report under requirements effective prior to 2010.  In connection with related amended accounting guidance for variable interest entities, which is effective as of January 1, 2010, we are assessing (a) our REMA leases for our interests in the Conemaugh, Keystone and Shawville plants (see note 15(a)) and (b) the tolling agreement at the Vandolah plant whereby we provide our own fuel for operations and take all the power generated (see note 15(a)).  If (a) the single power plant legal entities, which own the plants or our interests in the plants are determined to be variable interest entities, (b) our contracts are determined to be or contain variable interests in those entities and (c) we have the power to direct the activities of the entities that most significantly impact the entities’ economic performance and the obligation to absorb losses of or the right to receive benefits from the entities that could be significant to the entities, we would be required to consolidate the entities, which could materially change our future financial statements. Improving Disclosures about Fair Value Measurements.  Effective for our first quarter 2010 Form 10-Q, this guidance provides for disclosures of significant transfers in and out of Levels 1 and 2.  In addition, it clarifies existing disclosure requirements regarding inputs and valuation techniques as well as the appropriate level of disaggregation for fair value measurements disclosures.  Effective for the 2011 financial statements, this guidance provides for disclosures of activity on a gross basis within the Level 3 reconciliation.  These changes will only affect our disclosures.  </div></div> (2)     Summary of Significant Accounting Policies (a)     Use of Estimates and Market Risk and Uncertainties. false false No definition available. No authoritative reference available. false false 1 2 false UnKnown UnKnown UnKnown false true