Derivative Accounting (Tables)

9 Months Ended

Sep. 30, 2012

Derivative Accounting

Outstanding gross notional amount of derivatives, which represents both purchases and sales (does not reflect net position)

Commodity	Quantity
Power	8,517	gigawatt hours
Gas	155	Bcfs (a)

(a)“Bcf” is Billion Cubic Feet.

Gains and losses from derivative instruments in designated accounting hedges relationships

The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging relationships during the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

	Financial Statement	Three Months Ended September 30,						Nine Months Ended September 30,
Commodity Contracts	Location	2012			2011			2012			2011
Loss Recognized in OCI on Derivative Instruments (Effective Portion)	Other comprehensive loss - derivative instruments	$	(119	)	$	(25,457	)	$	(37,513	)	$	(40,792	)
Loss Reclassified from Accumulated Other Comprehensive Income into Income (Effective Portion Realized) (a)	Fuel and purchased power	(49,478		)	(59,144		)	(86,993		)	(99,278		)
Gain (Loss) Recognized in Income (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Fuel and purchased power	—			17			117			(147		)

(a)During the nine months ended September 30, 2012, we had $1.8 million of losses reclassified from accumulated other comprehensive income to earnings related to discontinued cash flow hedges.  There were no amounts reclassified in the third quarter of 2012 and in the 2011 periods related to discontinued cash flow hedges.

Gains and losses from derivative instruments not designated as accounting hedges instruments

The following table provides information about gains and losses from derivative instruments not designated as accounting hedging instruments during the three and nine months ended September 30, 2012 and 2011 (dollars in thousands):

	Financial Statement	Three Months Ended September 30,					Nine Months Ended September 30,
Commodity Contracts	Location	2012		2011			2012		2011
Net Gain Recognized in Income	Operating revenues	$	258	$	81		$	19	$	1,085
Net Gain (Loss) Recognized in Income	Fuel and purchased power	12,870		(13,219		)	13,860		(25,138		)
Total		$	13,128	$	(13,138	)	$	13,879	$	(24,053	)

Fair value of derivative instruments, margin account and cash collateral reported on a gross basis

The following table provides information about the fair value of our risk management activities reported on a gross basis.  Transactions with counterparties that have master netting arrangements are reported net on the Condensed Consolidated Balance Sheets.  These amounts are located in the assets and liabilities from risk management activities lines of our Condensed Consolidated Balance Sheets.  Amounts are as of September 30, 2012 (dollars in thousands):

Commodity Contracts	Designated as Hedging Instruments			Not Designated as Hedging Instruments			Margin and Collateral Provided to Counterparties		Collateral Provided from Counterparties			Other (b)			Total
Current Assets	$	—		$	57,165		$	320	$	—		$	(31,228	)	$	26,257
Investments and Other Assets	—			47,868			—		—			(9,419		)	38,449
Total Assets	—			105,033			320		—			(40,647		)	64,706
Current Liabilities	(1,092		)	(117,325		)	43,480		(13,145		)(a)	31,819			(56,263		)
Deferred Credits and Other	(4,523		)	(103,173		)	17,033		—			9,419			(81,244		)
Total Liabilities	(5,615		)	(220,498		)	60,513		(13,145		)	41,238			(137,507		)
Total	$	(5,615	)	$	(115,465	)	$	60,833	$	(13,145	)	$	591		$	(72,801	)

(a)Collateral relates to non-derivative instruments or derivative instruments that qualify for a scope exception.

(b)Other represents derivative instrument netting, option premiums, and other risk management contracts.

The following table provides information about the fair value of our risk management activities reported on a gross basis at December 31, 2011 (dollars in thousands):

Commodity Contracts	Designated as Hedging Instruments			Not Designated as Hedging Instruments			Margin and Collateral Provided to Counterparties		Collateral Provided from Counterparties			Other (b)			Total
Current Assets	$	7,287		$	76,162		$	1,630	$	—		$	(54,815	)	$	30,264
Investments and Other Assets	3,804			58,273			—		—			(12,755		)	49,322
Total Assets	11,091			134,435			1,630		—			(67,570		)	79,586
Current Liabilities	(82,195		)	(124,028		)	107,228		(11,145		)(a)	56,172			(53,968		)
Deferred Credits and Other	(68,137		)	(92,880		)	65,768		—			12,754			(82,495		)
Total Liabilities	(150,332		)	(216,908		)	172,996		(11,145		)	68,926			(136,463		)
Total Derivative Instruments	$	(139,241	)	$	(82,473	)	$	174,626	$	(11,145	)	$	1,356		$	(56,877	)

(a)Collateral relates to non-derivative instruments or derivative instruments that qualify for a scope exception.

(b)Other represents derivative instrument netting, option premiums, and other risk management contracts.

Information about derivative instruments that have credit-risk-related contingent features

The following table provides information about our derivative instruments that have credit-risk-related contingent features at September 30, 2012 (dollars in millions):

	September 30, 2012
Aggregate Fair Value of Derivative Instruments in a Net Liability Position	$	226
Cash Collateral Posted	60
Additional Cash Collateral in the Event Credit-Risk Related Contingent Features were Fully Triggered (a)	104

(a)This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above.