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Risk Management and Fair Values (Tables)

12 Months Ended

Dec. 31, 2011

Risk Management and Fair Values [Abstract]

Fair values of derivative instruments

The fair values of Entergy’s derivative instruments on the consolidated balance sheets as of December 31, 2011 are as follows:


Instrument		Balance Sheet Location		Fair Value (a)		Offset (a)		Business
Derivatives designated as hedging instruments

Assets:
Electricity forwards, swaps and options		Prepayments and other (current portion)		$197 million		($25) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other deferred debits and other assets (non-current portion)		$112 million		($1) million		Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options		Other current liabilities (current portion)		$—		($—)		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other non-current liabilities (non-current portion)		$1 million		($1) million		Entergy Wholesale Commodities

Derivatives not designated as hedging instruments

Assets:
Electricity forwards, swaps and options		Prepayments and other (current portion)		$37 million		($8) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other deferred debits and other assets (non-current portion)		$—		($—)		Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options		Other current liabilities (current portion)		$33 million		($33) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other non-current liabilities (non-current portion)		$—		($—)		Entergy Wholesale Commodities
Natural gas swaps		Other current liabilities		$30 million		($—)		Utility

The fair values of Entergy’s derivative instruments on the consolidated balance sheets as of December 31, 2010 are as follows:


Instrument		Balance Sheet Location		Fair Value (a)		Offset (a)		Business
Derivatives designated as hedging instruments

Assets:
Electricity forwards, swaps and options		Prepayments and other (current portion)		$160 million		($7) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other deferred debits and other assets (non-current portion)		$82 million		($29) million		Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options		Other current liabilities (current portion)		$5 million		($5) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other non-current liabilities (non-current portion)		$47 million		($30) million		Entergy Wholesale Commodities

Derivatives not designated as hedging instruments

Assets:
Electricity forwards, swaps and options		Prepayments and other (current portion)		$2 million		($—)		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other deferred debits and other assets (non-current portion)		$14 million		($8) million		Entergy Wholesale Commodities

Liabilities:
Electricity forwards, swaps and options		Other current liabilities (current portion)		$2 million		($2) million		Entergy Wholesale Commodities
Electricity forwards, swaps and options		Other non-current liabilities (non-current portion)		$7 million		($7) million		Entergy Wholesale Commodities
Natural gas swaps		Other current liabilities		$2 million		($—)		Utility

(a)

The balances of derivative assets and liabilities in these tables are presented gross. Certain investments, including those not designated as hedging instruments, are subject to master netting agreements and are presented on the Entergy Consolidated Balance Sheets on a net basis in accordance with accounting guidance for Derivatives and Hedging.

Derivative instruments designated as cash flow hedges on consolidated statements of income


Instrument		Amount of gain recognized in AOCI (effective portion)		Income Statement location		Amount of gain reclassified from accumulated OCI into income (effective portion)
2011
Electricity forwards, swaps and options		$296 million		Competitive businesses operating revenues		$168 million

2010
Electricity forwards, swaps and options		$206 million		Competitive businesses operating revenues		$220 million

2009
Electricity forwards, swaps, and options		$315 million		Competitive businesses operating revenues		$322 million

Derivative instruments not designated as hedging instruments on the consolidated statements of income


Instrument		Amount of gain recognized in AOCI		Income Statement location		Amount of gain (loss) recorded in income
2011
Natural gas swaps		$—		Fuel, fuel-related expenses, and gas purchased for resale		($62) million

Electricity forwards, swaps and options de-designated as hedged items		$1 million		Competitive business operating revenues		$11 million

2010
Natural gas swaps		$—		Fuel, fuel-related expenses, and gas purchased for resale		($95) million

Electricity forwards, swaps and options de-designated as hedged items		$15 million		Competitive business operating revenues		$—

2009
Natural gas swaps		$—		Fuel, fuel-related expenses, and gas purchased for resale		($160) million

Assets and liabilities at fair value on a recurring basis


2011		Level 1				Level 2				Level 3				Total
		(In Millions)
Assets:
Temporary cash investments		$	613			$	—			$	—			$	613
Decommissioning trust funds (a):
Equity securities			397				1,732				—				2,129
Debt securities			639				1,020				—				1,659
Power contracts			—				—				312				312
Securitization recovery trust account			50				—				—				50
Storm reserve escrow account			335				—				—				335

		$	2,034			$	2,752			$	312			$	5,098

Liabilities:
Gas hedge contracts		$	30			$	—			$	—			$	30


2010		Level 1				Level 2				Level 3				Total
		(In Millions)
Assets:
Temporary cash investments		$	1,218			$	—			$	—			$	1,218
Decommissioning trust funds (a):
Equity securities			387				1,689				—				2,076
Debt securities			497				1,023				—				1,520
Power contracts			—				—				214				214
Securitization recovery trust account			43				—				—				43
Storm reserve escrow account			329				—				—				329

		$	2,474			$	2,712			$	214			$	5,400

Liabilities:
Power contracts		$	—			$	—			$	17			$	17
Gas hedge contracts			2				—				—				2

		$	2			$	—			$	17			$	19

(a)

The decommissioning trust funds hold equity and fixed income securities. Equity securities are invested to approximate the returns of major market indices. Fixed income securities are held in various governmental and corporate securities. See Note 17 for additional information on the investment portfolios.

Reconciliation of changes in the net assets (liabilities) for the fair value of derivatives classified as Level 3 in the fair value hierarchy


		2011				2010				2009
		(In Millions)
Balance as of January 1,		$	197			$	200			$	207

Unrealized gains from price changes			268				221				310
Unrealized gains/(losses) on originations			15				(4	)			5
Realized gains on settlements			(168	)			(220	)			(322	)

Balance as of December 31,		$	312			$	197			$	200

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

+ References+ Details

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details