Allegheny Power 2010 Annual Report Download - page 102

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87
Rollforward of Level 3 Measurements
The following table provides a reconciliation of changes in the fair value of NUG contracts held by Met-Ed and classified
as Level 3 in the fair value hierarchy for the years ending December 31, 2010 and 2009:
Derivative Asset Derivative Liability Net
NUG Contracts(1) NUG Contracts(1) NUG Contracts(1)
(In millions)
January 1, 2010 Balance $ 176 $ (143) $ 33
Realized gain (loss) - - -
Unrealized gain (loss) (59) (38) (97)
Purchases - - -
Issuances - - -
Sales - - -
Settlements (5) 65 60
Transfers in (out) of Level 3 - - -
December 31, 2010 Balance $ 112 $ (116) $ (4)
January 1, 2009 Balance $ 300 $ (150) $ 150
Realized gain (loss) - - -
Unrealized gain (loss) (124) (81) (205)
Purchases - - -
Issuances - - -
Sales - - -
Settlements - 88 88
Transfers in (out) of Level 3 - - -
December 31, 2009 Balance $ 176 $ (143) $ 33
(1) Changes in the fair value of NUG contracts are subject to regulatory accounting and do not impact earnings.
Pennsylvania Electric Company
The following tables provide the fair value measurement amounts for assets and liabilities recorded on Penelec’s
Consolidated Balance Sheets at fair value as of December 31, 2010 and 2009:
December 31, 2010 Level 1 Level 2 Level 3 Total
Assets (In millions)
Corporate debt securities $ - $ 8 $ - $ 8
Derivative assets - commodity contracts - 2 - 2
Derivative assets - NUG contracts
(1)
- - 4 4
Equity securities
(2)
81 - - 81
U.S. government debt securities - 9 - 9
U.S. state debt securities - 133 - 133
Other - 5 - 5
Total assets $ 81 $ 157 $ 4 $ 242
Liabilities
Derivative liabilities – NUG contracts(1) $ - $ - $ (117) $ (117)
Total liabilities $ - $ - $ (117) $ (117)
Net assets (liabilities)(3) $ 81 $ 157 $ (113) $ 125