APS 2011 Annual Report Download - page 98
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74
2011 2010
Mark-to-market of net positions at beginning of year $ (239) $ (169)
Recognized in earnings:
Change in mark-to-market losses for future
period deliveries (4) (7)
Mark-to-market losses realized including
ineffectiveness during the period -- 5
Increase in regulatory asset (1) (36)
Recognized in OCI:
Change in mark-to-market losses for future
period deliveries (a) (95) (155)
Mark-to-market losses realized during the
period 117 123
Change in valuation techniques -- --
Mark-to-market of net positions at end of year $ (222) $ (239)
(a) The changes in mark-to-market recorded in OCI are due primarily to changes in forward
natural gas prices.
The table below shows the fair value of maturities of our derivative contracts (dollars in
millions) at December 31, 2011 by maturities and by the type of valuation that is performed to
calculate the fair values. See Note 1, “Derivative Accounting” and “Fair Value Measurements,” for
more discussion of our valuation methods.
Source of Fair Value 2012
2013
2014
2015 2016
Years
thereafter
Total
fair
value
Prices provided by
other external sources $ (110) $ (44) $ (16) $ (1) $ -- $ -- $ (171)
Prices based on models
and other valuation
methods (13) (8) (8) (9) (6) (7) (51)
Total by maturity $ (123) $ (52) $ (24) $ (10) $ (6) $ (7) $ (222)
The table below shows the impact that hypothetical price movements of 10% would have on
the market value of our risk management assets and liabilities included on Pinnacle West’s
Consolidated Balance Sheets at December 31, 2011 and 2010 (dollars in millions):