Significant Accounting Policies (Notes)

3 Months Ended

Mar. 31, 2012

Significant Accounting Policies [Abstract]

Significant Accounting Policies [Text Block]

SIGNIFICANT ACCOUNTING POLICIES

Intangible Assets

The Company has certain intangible assets relating to emission allowances, renewable energy credits and non-utility contracts. Summary of intangible assets as of March 31, 2012 and December 31, 2011:

	March 31,		December 31,
	2012		2011
	(In millions)
Emission allowances	$	9	$	10
Renewable energy credits	40		39
Contract intangible assets	64		65
	113		114
Less accumulated amortization	28		28
Intangible assets, net	$	85	$	86
Less current intangible assets	$	15	$	13
	$	70	$	73

Emission allowances and renewable energy credits are charged to expense, using average cost, as the allowances and credits are consumed in the operation of the business. The Company amortizes contract intangible assets on a straight-line basis over the expected period of benefit, ranging from 3 to 20 years.

Income Taxes

The Company's effective tax rate from continuing operations for the three months ended March 31, 2012 is 32 percent as compared to 37 percent for the three months ended March 31, 2011. The decrease in the effective tax rate in 2012 is due primarily to the increase in the generation of production tax credits in 2012.

The Company had $4 million of unrecognized tax benefits at March 31, 2012 and at December 31, 2011, that, if recognized, would favorably impact its effective tax rate. During the next twelve months, it is reasonably possible that the Company will settle certain federal tax audits. As a result, the Company believes that it is possible that there will be a decrease in the unrecognized tax benefits of up to $30 million.

Offsetting Amounts Related to Certain Contracts

The Company offsets the fair value of derivative instruments with cash collateral received or paid for those derivative instruments executed with the same counterparty under a master netting agreement, which reduces the Company’s total assets and total liabilities. As of March 31, 2012 , the total cash collateral posted, net of cash collateral received, was $138 million. Derivative assets and derivative liabilities are shown net of collateral of $1 million and $127 million, respectively, as of March 31, 2012. As of March 31, 2012, the Company recorded cash collateral paid of $15 million and cash collateral received of $3 million not related to unrealized derivative positions. These amounts are included in accounts receivable and accounts payable and are recorded net by counterparty.