Derivative Instruments and Hedging (Tables)

3 Months Ended

Mar. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location in Condensed Consolidated Balance Sheet and Amounts

The tables below present Networks' derivative positions as of March 31, 2020 and December 31, 2019, respectively, including those subject to master netting agreements and the location of the net derivative positions on our condensed consolidated balance sheets:

As of March 31, 2020	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	2		$	3		$	2		$	1
Derivative liabilities	(1		)	(1		)	(42		)	(92		)
	1			2			(40		)	(91		)
Designated as hedging instruments
Derivative assets	—			—			—			—
Derivative liabilities	—			—			(5		)	(4		)
	—			—			(5		)	(4		)
Total derivatives before offset of cash collateral	1			2			(45		)	(95		)
Cash collateral receivable	—			—			28			6
Total derivatives as presented in the balance sheet	$	1		$	2		$	(17	)	$	(89	)

As of December 31, 2019	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	1		$	4		$	1		$	2
Derivative liabilities	(1		)	(2		)	(39		)	(86		)
	—			2			(38		)	(84		)
Designated as hedging instruments
Derivative assets	—			—			—			—
Derivative liabilities	—			—			(1		)	(1		)
	—			—			(1		)	(1		)
Total derivatives before offset of cash collateral	—			2			(39		)	(85		)
Cash collateral receivable	—			—			27			1
Total derivatives as presented in the balance sheet	$	—		$	2		$	(12	)	$	(84	)

The tables below present Renewables' derivative positions as of March 31, 2020 and December 31, 2019, respectively, including those subject to master netting agreements and the location of the net derivative position on our condensed consolidated balance sheets:

As of March 31, 2020	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	35		$	108		$	37		$	17
Derivative liabilities	(1		)	(2		)	(43		)	(21		)
	34			106			(6		)	(4		)
Designated as hedging instruments
Derivative assets	—			17			8			8
Derivative liabilities	—			(13		)	(8		)	(7		)
	—			4			—			1
Total derivatives before offset of cash collateral	34			110			(6		)	(3		)
Cash collateral receivable (payable)	(11		)	(27		)	1			1
Total derivatives as presented in the balance sheet	$	23		$	83		$	(5	)	$	(2	)

As of December 31, 2019	Current Assets			Noncurrent Assets			Current Liabilities			Noncurrent Liabilities
(Millions)
Not designated as hedging instruments
Derivative assets	$	23		$	110		$	42		$	13
Derivative liabilities	(1		)	(7		)	(48		)	(18		)
	22			103			(6		)	(5		)
Designated as hedging instruments
Derivative assets	—			18			5			4
Derivative liabilities	—			(9		)	(13		)	(6		)
	—			9			(8		)	(2		)
Total derivatives before offset of cash collateral	22			112			(14		)	(7		)
Cash collateral receivable (payable)	(11		)	(30		)	7			6
Total derivatives as presented in the balance sheet	$	11		$	82		$	(7	)	$	(1	)

Schedule of Notional Volumes of Outstanding Derivative Positions

The net notional volumes of the outstanding derivative instruments associated with Networks activities as of March 31, 2020 and December 31, 2019, respectively, consisted of:

	March 31,	December 31,
As of	2020	2019
(Millions)
Wholesale electricity purchase contracts (MWh)	4.7	5.1
Natural gas purchase contracts (Dth)	7.7	8.5
Fleet fuel purchase contracts (Gallons)	2.3	2.2

The net notional volumes of outstanding derivative instruments associated with Renewables activities as of March 31, 2020 and December 31, 2019, respectively, consisted of:

	March 31,	December 31,
As of	2020	2019
(MWh/Dth in millions)
Wholesale electricity purchase contracts	4	4
Wholesale electricity sales contracts	9	9
Natural gas and other fuel purchase contracts	29	29
Financial power contracts	11	10
Basis swaps – purchases	41	42
Basis swaps – sales	2	1

Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss)

The effect of derivatives in cash flow hedging relationships on Other Comprehensive Income (OCI) and income for the three months ended March 31, 2020 and 2019, respectively, consisted of:

Three Months Ended March 31,	(Loss) Gain Recognized in OCI on Derivatives (a)			Location of Loss Reclassified from Accumulated OCI into Income	Loss (Gain) Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2020
Interest rate contracts	$	—		Interest expense	$	1	$	76
Commodity contracts	(2		)	Purchased power, natural gas and fuel used	—		475
Foreign currency exchange contracts	(6		)		—
Total	$	(8	)		$	1
2019
Interest rate contracts	$	—		Interest expense	$	2	$	78
Commodity contracts	1			Purchased power, natural gas and fuel used	—		563
Total	$	1			$	2

(a) Changes in accumulated OCI are reported on a pre-tax basis.

The effect of derivatives in cash flow hedging relationships on accumulated OCI for the three months ended March 31, 2020 and 2019, respectively, consisted of:

Three Months Ended March 31,	(Loss) Recognized in OCI on Derivatives (a)			Location of Loss Reclassified from Accumulated OCI into Income	Loss Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2020
Interest rate contracts	$	(31	)	Interest expense	$	1	$	76
2019
Interest rate contracts	$	(20	)	Interest expense	$	—	$	78

(a) Changes in OCI are reported on a pre-tax basis. The amount in accumulated OCI is being reclassified into earnings over the underlying debt maturity period which ends in 2029.

The effect of derivatives in cash flow hedging relationships on accumulated OCI and income for the three months ended March 31, 2020 and 2019, respectively, consisted of:

Three Months Ended March 31,	Gain (Loss) Recognized in OCI on Derivatives (a)			Location of Loss (Gain) Reclassified from Accumulated OCI into Income	Loss (Gain) Reclassified from Accumulated OCI into Income		Total amount per Income Statement
(Millions)
2020
Commodity contracts	$	7		Operating revenues	$	—	$	1,789
2019
Commodity contracts	$	(20	)	Operating revenues	$	—	$	1,842

(a) Changes in OCI are reported on a pre-tax basis.

Summary of Unrealized Gains and Losses from Fair Value Adjustments

The unrealized gains and losses from fair value adjustments to these derivatives, which are recorded in regulatory assets, for the three months ended March 31, 2020 and 2019, respectively, were as follows:

	Three Months Ended March 31,
	2020			2019
(Millions)
Derivative assets	$	—		$	(1	)
Derivative liabilities	$	(3	)	$	(1	)

The amounts for electricity hedge contracts and natural gas hedge contracts recognized in regulatory liabilities and assets as of March 31, 2020 and December 31, 2019 and amounts reclassified from regulatory assets and liabilities into income for the three months ended March 31, 2020 and 2019 are as follows:

(Millions)	Loss or Gain Recognized in Regulatory Assets/Liabilities				Location of Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income	Loss (Gain) Reclassified from Regulatory Assets/Liabilities into Income
As of						Three Months Ended March 31,
March 31, 2020	Electricity		Natural Gas		2020	Electricity		Natural Gas
Regulatory assets	$	34	$	—	Purchased power, natural gas and fuel used	$	21	$	5
December 31, 2019					2019
Regulatory assets	$	24	$	4	Purchased power, natural gas and fuel used	$	4	$	—

Schedule of Fair Value, Net Derivative Contracts

The fair values of derivative contracts associated with Renewables activities as of March 31, 2020 and December 31, 2019, respectively, consisted of:

	March 31,			December 31,
As of	2020			2019
(Millions)
Wholesale electricity purchase contracts	$	(2	)	$	10
Wholesale electricity sales contracts	22			4
Natural gas and other fuel purchase contracts	—			(2		)
Financial power contracts	79			73
Total	$	99		$	85

Effect of Derivatives Associated with Renewables and Gas Activities

The effects of trading and non-trading derivatives associated with Renewables activities for the three months ended March 31, 2020, consisted of:

	Three Months Ended
	March 31, 2020
	Trading			Non-trading			Total amount per income statement
(Millions)
Operating Revenues
Wholesale electricity purchase contracts	$	(1	)	$	—
Wholesale electricity sales contracts	4			11
Financial power contracts	—			22
Total gain included in operating revenues	$	3		$	33		$	1,789
Purchased power, natural gas and fuel used
Wholesale electricity purchase contracts	$	—		$	(11	)
Financial power contracts	—			(6		)
Financial and natural gas contracts	—			(2		)
Total loss included in purchased power, natural gas and fuel used	$	—		$	(19	)	$	475
Total Gain	$	3		$	14

The effects of trading and non-trading derivatives associated with Renewables activities for the three months ended March 31, 2019, consisted of:

	Three Months Ended
	March 31, 2019
	Trading			Non-trading			Total amount per income statement
(Millions)
Operating Revenues
Wholesale electricity purchase contracts	$	1		$	—
Wholesale electricity sales contracts	—			(9		)
Financial power contracts	(1		)	(13		)
Financial and natural gas contracts	(1		)	(2		)
Total loss included in operating revenues	$	(1	)	$	(24	)	$	1,842
Purchased power, natural gas and fuel used
Wholesale electricity purchase contracts	$	—		$	20
Financial power contracts	—			1
Financial and natural gas contracts	—			7
Total gain included in purchased power, natural gas and fuel used	$	—		$	28		$	563
Total (Loss) Gain	$	(1	)	$	4

Derivative Liabilities

The table below presents our interest rate swap derivative positions as of March 31, 2020 and December 31, 2019, respectively, including the location of the net derivative positions on our condensed consolidated balance sheets:

As of March 31, 2020	Current Liabilities
(Millions)
Designated as hedging instruments
Derivative liabilities	$	(31	)
As of December 31, 2019
Designated as hedging instruments
Derivative liabilities	$	—