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Derivative Instruments (Tables)
 3 Months Ended
Mar. 31, 2014
Derivative Instruments [Abstract]  
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following tables present the fair values of our derivative instruments recorded on our Consolidated Condensed Balance Sheets by location and hedge type at March 31, 2014 and December 31, 2013 (in millions):
 
March 31, 2014
  
Commodity
Instruments
 
Interest Rate
Swaps
 
Total
Derivative
Instruments
Balance Sheet Presentation
 
 
 
 
 
Current derivative assets
$
655

 
$
—

 
$
655

Long-term derivative assets
167

 
7

 
174

Total derivative assets
$
822

 
$
7

 
$
829

 
 
 
 
 
 
Current derivative liabilities
$
681

 
$
47

 
$
728

Long-term derivative liabilities
151

 
79

 
230

Total derivative liabilities
$
832

 
$
126

 
$
958

Net derivative liabilities
$
(10
)
 
$
(119
)
 
$
(129
)

 
December 31, 2013
 
Commodity
Instruments
 
Interest Rate
Swaps
 
Total
Derivative
Instruments
Balance Sheet Presentation
 
 
 
 
 
Current derivative assets
$
445

 
$
—

 
$
445

Long-term derivative assets
96

 
9

 
105

Total derivative assets
$
541

 
$
9

 
$
550

 
 
 
 
 
 
Current derivative liabilities
$
404

 
$
47

 
$
451

Long-term derivative liabilities
161

 
82

 
243

Total derivative liabilities
$
565

 
$
129

 
$
694

Net derivative liabilities
$
(24
)
 
$
(120
)
 
$
(144
)
Schedule of Notional Amounts of Outstanding Derivative Positions
As of March 31, 2014 and December 31, 2013, the net forward notional buy (sell) position of our outstanding commodity and interest rate swap contracts that did not qualify or were not designated under the normal purchase normal sale exemption were as follows (in millions):
Derivative Instruments
 
Notional Amounts
 
March 31, 2014
 
December 31, 2013
Power (MWh)
 
(29
)
 
(29
)
Natural gas (MMBtu)
 
541

 
448

Environmental credits (Tonnes)
 
2

 
—

Interest rate swaps
 
$
1,517

 
$
1,527
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value
 
March 31, 2014
 
December 31, 2013
 
Fair Value
of Derivative
Assets
 
Fair Value
of Derivative
Liabilities
 
Fair Value
of Derivative
Assets
 
Fair Value
of Derivative
Liabilities
Derivatives designated as cash flow hedging instruments:
 
 
 
 
 
 
 
Interest rate swaps
$
7

 
$
113

 
$
9

 
$
115

Total derivatives designated as cash flow hedging instruments
$
7

 
$
113

 
$
9

 
$
115

 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
Commodity instruments
$
822

 
$
832

 
$
541

 
$
565

Interest rate swaps
—

 
13

 
—

 
14

Total derivatives not designated as hedging instruments
$
822

 
$
845

 
$
541

 
$
579

Total derivatives
$
829

 
$
958

 
$
550

 
$
694
Derivative Instruments Subject to Master Netting Arrangements [Table Text Block]
The tables below set forth our net exposure to derivative instruments after offsetting amounts subject to a master netting arrangement with the same counterparty at March 31, 2014 and December 31, 2013 (in millions):
 
 
March 31, 2014
 
 
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets
 
 
Gross Amounts Presented on our Consolidated Condensed Balance Sheets
 
Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets
 
Margin/Cash (Received) Posted (1)
 
Net Amount
Derivative assets:
 
 
 
 
 
 
 
 
Commodity exchange traded futures and swaps contracts
 
$
717

 
$
(669
)
 
$
(48
)
 
$
—

Commodity forward contracts
 
105

 
(78
)
 
—

 
27

Interest rate swaps
 
7

 
—

 
—

 
7

Total derivative assets
 
$
829

 
$
(747
)
 
$
(48
)
 
$
34

Derivative (liabilities):
 
 
 
 
 
 
 
 
Commodity exchange traded futures and swaps contracts
 
$
(684
)
 
$
669

 
$
15

 
$
—

Commodity forward contracts
 
(148
)
 
78

 
7

 
(63
)
Interest rate swaps
 
(126
)
 
—

 
—

 
(126
)
Total derivative (liabilities)
 
$
(958
)
 
$
747

 
$
22

 
$
(189
)
Net derivative assets (liabilities)
 
$
(129
)
 
$
—

 
$
(26
)
 
$
(155
)
 
 
December 31, 2013
 
 
Gross Amounts Not Offset on the Consolidated Condensed Balance Sheets
 
 
Gross Amounts Presented on our Consolidated Condensed Balance Sheets
 
Derivative Asset (Liability) not Offset on the Consolidated Condensed Balance Sheets
 
Margin/Cash (Received) Posted (1)
 
Net Amount
Derivative assets:
 
 
 
 
 
 
 
 
Commodity exchange traded futures and swaps contracts
 
$
434

 
$
(420
)
 
$
(14
)
 
$
—

Commodity forward contracts
 
107

 
(60
)
 
—

 
47

Interest rate swaps
 
9

 
—

 
—

 
9

Total derivative assets
 
$
550

 
$
(480
)
 
$
(14
)
 
$
56

Derivative (liabilities):
 
 
 
 
 
 
 
 
Commodity exchange traded futures and swaps contracts
 
$
(495
)
 
$
420

 
$
75

 
$
—

Commodity forward contracts
 
(70
)
 
60

 
1

 
(9
)
Interest rate swaps
 
(129
)
 
—

 
—

 
(129
)
Total derivative (liabilities)
 
$
(694
)
 
$
480

 
$
76

 
$
(138
)
Net derivative assets (liabilities)
 
$
(144
)
 
$
—

 
$
62

 
$
(82
)
____________
(1)
Negative balances represent margin deposits posted with us by our counterparties related to our derivative activities that are subject to a master netting arrangement. Positive balances reflect margin deposits posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 7 for a further discussion of our collateral.
Realized Unrealized Gain Loss by Instrument
The following tables detail the components of our total mark-to-market activity for both the net realized gain (loss) and the net unrealized gain (loss) recognized from our derivative instruments in earnings and where these components were recorded on our Consolidated Condensed Statements of Operations for the periods indicated (in millions):
 
 
Three Months Ended March 31,
 
2014
 
2013
Realized gain (loss)(1)
 
 
 
Commodity derivative instruments
$
(39
)
 
$
28

Total realized gain (loss)
$
(39
)
 
$
28

 
 
 
 
Unrealized gain (loss)(2)
 
 
 
Commodity derivative instruments
$
(73
)
 
$
(57
)
Interest rate swaps
1

 
2

Total unrealized gain (loss)
$
(72
)
 
$
(55
)
Total mark-to-market activity, net
$
(111
)
 
$
(27
)
___________
(1)
Does not include the realized value associated with derivative instruments that settle through physical delivery.
(2)
In addition to changes in market value on derivatives not designated as hedges, changes in unrealized gain (loss) also includes de-designation of interest rate swap cash flow hedges and related reclassification from AOCI into earnings, hedge ineffectiveness and adjustments to reflect changes in credit default risk exposure.
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location
 
Three Months Ended March 31,
 
2014
 
2013
Realized and unrealized gain (loss)
 
 
 
Derivatives contracts included in operating revenues
$
(237
)
 
$
(74
)
Derivatives contracts included in fuel and purchased energy expense
125

 
45

Interest rate swaps included in interest expense
1

 
2

Total mark-to-market activity, net
$
(111
)
 
$
(27
)
Derivatives Designated as Hedges
The following table details the effect of our net derivative instruments that qualified for hedge accounting treatment and are included in OCI and AOCI for the periods indicated (in millions):
 
Three Months Ended March 31,
 
Three Months Ended March 31,
 
Gain (Loss) Recognized  in
OCI (Effective Portion)
 
Gain (Loss) Reclassified from
AOCI into Income (Effective Portion)(3)
 
2014
 
2013
 
2014
 
2013
 
Affected Line Item on the Consolidated Condensed Statements of Operations
Interest rate swaps(1)
$
—

 
$
13

 
$
(13
)
(4) 
$
(9
)
 
Interest expense
Total(2)
$
—

 
$
13

 
$
(13
)
 
$
(9
)
 
 
____________
(1)
We did not record any gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the three months ended March 31, 2014 and 2013.
(2)
We recorded an income tax benefit of nil and $1 million for the three months ended March 31, 2014 and 2013, respectively, in AOCI related to our cash flow hedging activities.
(3)
Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $148 million at each of March 31, 2014 and December 31, 2013. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $11 million at each of March 31, 2014 and December 31, 2013.
(4)
Includes a loss of $5 million that was reclassified from AOCI to interest expense for the three months ended March 31, 2014 where the hedged transactions are no longer expected to occur.