SUPPLEMENTARY FINANCIAL INFORMATION

Other Income



	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
Other income:
Consent fee related to novation of hedge positions between counterparties	$	—	$	—	$	—	$	6
Insurance/litigation settlements	—		—		2		2
All other	1		2		5		4
Total other income	$	1	$	2	$	7	$	12
Other deductions:
Impairment of mineral interests	$	—	$	24	$	—	$	24
Other asset impairments	3		—		3		—
Counterparty contract settlement	—		4		—		4
Other	5		2		9		9
Total other deductions	$	8	$	30	$	12	$	37

Interest Expense and Related Charges



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Interest paid/accrued (including net amounts settled/accrued under interest rate swaps)	$	688		$	647		$	2,042		$	1,938
Interest related to pushed down debt	1			19			5			57
Interest payable with additional toggle notes (Note 5)	—			47			—			136
Unrealized mark-to-market net (gain) loss on interest rate swaps	(413		)	20			(899		)	16
Amortization of interest rate swap losses at dedesignation of hedge accounting	2			2			6			7
Amortization of fair value debt discounts resulting from purchase accounting	3			3			8			8
Amortization of debt issuance, amendment and extension costs and discounts	64			45			195			137
Capitalized interest	(5		)	(11		)	(19		)	(31		)
Total interest expense and related charges	$	340		$	772		$	1,338		$	2,268

Restricted Cash

At September 30, 2013 and December 31, 2012, all restricted cash on the balance sheet related to TCEH's Letter of Credit Facility (see Note 5).

Inventories by Major Category



	September 30, 2013		December 31, 2012
Materials and supplies	$	216	$	201
Fuel stock	155		168
Natural gas in storage	29		24
Total inventories	$	400	$	393

Investments



	September 30, 2013		December 31, 2012
Nuclear plant decommissioning trust	$	737	$	654
Assets related to employee benefit plans, including employee savings programs, net of distributions	1		8
Land	40		41
Miscellaneous other	9		7
Total investments	$	787	$	710

Nuclear Decommissioning Trust — Investments in a trust that will be used to fund the costs to decommission the Comanche Peak nuclear generation plant are carried at fair value. Decommissioning costs are being recovered from Oncor's customers as a delivery fee surcharge over the life of the plant and deposited by TCEH in the trust fund. Income and expense associated with the trust fund and the decommissioning liability are offset by a corresponding change in a receivable/payable (currently a payable reported in noncurrent liabilities) that will ultimately be settled through changes in Oncor's delivery fees rates (see Note 11). A summary of investments in the fund follows:



	September 30, 2013
	Cost (a)		Unrealized gain		Unrealized loss			Fair market value
Debt securities (b)	$	261	$	9	$	(4	)	$	266
Equity securities (c)	252		227		(8		)	471
Total	$	513	$	236	$	(12	)	$	737



	December 31, 2012
	Cost (a)		Unrealized gain		Unrealized loss			Fair market value
Debt securities (b)	$	246	$	16	$	(1	)	$	261
Equity securities (c)	245		161		(13		)	393
Total	$	491	$	177	$	(14	)	$	654

____________


(a)	Includes realized gains and losses on securities sold.

(b)

The investment objective for debt securities is to invest in a diversified tax efficient portfolio with an overall portfolio rating of AA or above as graded by S&P or Aa2 by Moody's Investors Services, Inc. The debt securities are heavily weighted with municipal bonds. The debt securities had an average coupon rate of 3.97% and 4.38% at September 30, 2013 and December 31, 2012, respectively, and an average maturity of 6 years at both September 30, 2013 and December 31, 2012.


(c)	The investment objective for equity securities is to invest tax efficiently and to match the performance of the S&P 500 Index.

Debt securities held at September 30, 2013 mature as follows: $103 million in one to five years, $58 million in five to ten years and $105 million after ten years.

The following table summarizes proceeds from sales of available-for-sale securities and the related realized gains and losses from such sales.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2013			2012			2013			2012
Realized gains	$	1		$	—		$	2		$	1
Realized losses	$	(3	)	$	(1	)	$	(3	)	$	(2	)
Proceeds from sales of securities	$	23		$	25		$	128		$	56
Investments in securities	$	(28	)	$	(30	)	$	(140	)	$	(68	)

Property, Plant and Equipment

At September 30, 2013 and December 31, 2012, property, plant and equipment of $18.0 billion and $18.6 billion, respectively, is stated net of accumulated depreciation and amortization of $7.7 billion and $6.8 billion, respectively.

Asset Retirement and Mining Reclamation Obligations

These liabilities primarily relate to nuclear generation plant decommissioning, land reclamation related to lignite mining, removal of lignite/coal-fueled plant ash treatment facilities and generation plant asbestos removal and disposal costs. There is no earnings impact with respect to changes in the nuclear plant decommissioning liability, as all costs are recoverable through the regulatory process as part of Oncor's delivery fees.

The following table summarizes the changes to these obligations, reported in other current liabilities and other noncurrent liabilities and deferred credits in the balance sheet, for the nine months ended September 30, 2013:



	Nuclear Plant Decommissioning		Mining Land Reclamation			Other			Total
Liability at December 31, 2012	$	368	$	135		$	33		$	536
Additions:
Accretion	17		23			1			41
Reductions:
Payments	—		(72		)	(1		)	(73		)
Liability at September 30, 2013	385		86			33			504
Less amounts due currently	—		(60		)	—			(60		)
Noncurrent liability at September 30, 2013	$	385	$	26		$	33		$	444

Other Noncurrent Liabilities and Deferred Credits

The balance of other noncurrent liabilities and deferred credits consists of the following:



	September 30, 2013		December 31, 2012
Uncertain tax positions (including accrued interest)	$	384	$	1,250
Asset retirement and mining reclamation obligations	444		452
Unfavorable purchase and sales contracts	596		620
Nuclear decommissioning cost over-recovery (Note 11)	352		284
Other, including retirement and other employee benefits	17		37
Total other noncurrent liabilities and deferred credits	$	1,793	$	2,643

Liability for Uncertain Tax Positions — In May 2013, EFH Corp. received approval from the Joint Committee on Taxation of the IRS appeals settlement of all issues arising from the 1997 through 2002 IRS audit. The settlement also affected federal and state returns for periods subsequent to 2002. In the second quarter 2013, we reduced the liability for uncertain tax positions to reflect the effects of the settlement, resulting in a $411 million reclassification to the accumulated deferred income tax liability and the recording of a $20 million income tax expense. Other effects included the recording of current federal income tax and state income tax liabilities to EFH Corp. of $78 million and $14 million, respectively, and a reduction of $392 million of the noncurrent federal income tax liability to EFH Corp., all under the tax sharing agreement (see Note 11). In the third quarter 2013, we recorded an additional $38 million tax benefit, with an offset to accumulated deferred income tax liability, related to the settlement.

In March 2013, EFH Corp. and the IRS agreed on terms to resolve disputed adjustments related to the IRS audit for the years 2003 through 2006, which was concluded in June 2011. The IRS proposed a significant number of adjustments to the originally filed returns for such years. The adjustments relate to one significant accounting method issue and other less significant issues. In the first quarter 2013, we reduced the liability for uncertain tax positions to reflect the terms of the agreement, resulting in a net reduction of the liability for uncertain tax positions totaling $794 million. This reduction consisted of a $685 million reclassification to a noncurrent affiliate tax sharing liability and a net adjustment of $109 million ($62 million after tax), largely representing a reversal of accrued interest and reported as an increase in income tax benefit. In addition, in accordance with the provisions of the tax sharing agreement with EFH Corp., amounts previously recorded as accumulated deferred income taxes totaling $430 million were reclassified to the affiliate tax sharing liability, the total amount of which is not expected to be settled within the next twelve months.

Unfavorable Purchase and Sales Contracts – The amortization of unfavorable purchase and sales contracts totaled $6 million for both the three months ended September 30, 2013 and 2012 and $19 million and $20 million for the nine months ended September 30, 2013 and 2012, respectively. See Note 3 for intangible assets related to favorable purchase and sales contracts.

The estimated amortization of unfavorable purchase and sales contracts for each of the next five fiscal years is as follows:



Year	Amount
2013	$	25
2014	$	24
2015	$	23
2016	$	23
2017	$	23

Supplemental Cash Flow Information



	Nine Months Ended September 30,
	2013			2012
Cash payments (receipts) related to:
Interest paid (a)	$	1,901		$	1,788
Capitalized interest	(19		)	(31		)
Interest paid (net of capitalized interest) (a)	$	1,882		$	1,757
Income taxes	$	134		$	83
Noncash investing and financing activities:
Effect of Parent's payment of interest, net of tax, on pushed down debt	$	21		$	30
Principal amount of TCEH Toggle Notes issued in lieu of cash interest	$	—		$	88
Construction expenditures (b)	$	62		$	52
Contribution related to EFH Corp. stock-based compensation	$	1		$	6
Debt assumed related to acquisition of combustion turbine trust interest	$	(45	)	$	—
Effect of push down of debt from parent	$	(420	)	$	—
Debt extension transactions	$	(340	)	$	—

____________


(a)	Net of amounts received under interest rate swap agreements.


(b)	Represents end-of-period accruals.