Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 10, 2015 | |
Entity [Abstract] | ||
Entity Registrant Name | ILLINOIS POWER GENERATING COMPANY | |
Entity Central Index Key | 1,135,361 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 2,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash | $ 116 | $ 126 |
Accounts receivable, affiliates | 43 | 88 |
Accounts receivable | 16 | 14 |
Inventory | 98 | 82 |
Deferred income taxes, current | 5 | 5 |
Prepayments and other current assets | 14 | 11 |
Total Current Assets | 292 | 326 |
Property, Plant and Equipment | 3,044 | 3,016 |
Accumulated depreciation | (1,195) | (1,145) |
Property, Plant and Equipment, Net | 1,849 | 1,871 |
Other Assets | 24 | 24 |
Total Assets | 2,165 | 2,221 |
Current Liabilities | ||
Accounts payable | 28 | 39 |
Accounts payable, affiliates | 17 | 13 |
Taxes accrued | 15 | 11 |
Accrued interest | 10 | 10 |
Accrued liabilities and other current liabilities | 10 | 10 |
Total Current Liabilities | 80 | 83 |
Long-term debt | 824 | 824 |
Other Liabilities | ||
Accumulated deferred income taxes, net | 474 | 498 |
Asset retirement obligations | 95 | 90 |
Other long-term liabilities | 31 | 30 |
Total Liabilities | $ 1,504 | $ 1,525 |
Commitments and Contingencies (Note 8) | ||
Stockholder’s Equity | ||
Common stock, no par value, 10,000 shares authorized – 2,000 shares outstanding | $ 0 | $ 0 |
Additional paid-in capital | 540 | 540 |
Retained earnings | (16) | (16) |
Accumulated other comprehensive loss, net of tax | 134 | 166 |
Total Illinois Power Generating Company Stockholder’s Equity | 658 | 690 |
Noncontrolling interest | 3 | 6 |
Total Equity | 661 | 696 |
Total Liabilities and Equity | $ 2,165 | $ 2,221 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Statement of Financial Position [Abstract] | ||
Common stock, no par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized | 10,000 | 10,000 |
Common stock, shares outstanding | 2,000 | 2,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Revenues | $ 131 | $ 138 | $ 274 | $ 318 |
Cost of sales, excluding depreciation expense | (84) | (105) | (177) | (219) |
Gross margin | 47 | 33 | 97 | 99 |
Operating and maintenance expense | (46) | (44) | (88) | (83) |
Depreciation and amortization expense | (25) | (24) | (50) | (48) |
Operating loss | (24) | (35) | (41) | (32) |
Interest expense | (9) | (10) | (19) | (20) |
Loss before income taxes | (33) | (45) | (60) | (52) |
Income tax benefit | 14 | 18 | 25 | 21 |
Net loss | (19) | (27) | (35) | (31) |
Less: Net income (loss) attributable to noncontrolling interest | (2) | 0 | (3) | 2 |
Net loss attributable to Illinois Power Generating Company | $ (17) | $ (27) | $ (32) | $ (33) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (19) | $ (27) | $ (35) | $ (31) |
Other comprehensive loss before reclassifications: | ||||
Actuarial loss due to pension plan remeasurement (net of tax benefit of zero, zero, zero and $1 million, respectively) | 0 | 0 | 0 | (2) |
Amounts reclassified from accumulated other comprehensive loss: | ||||
Settlement loss on pension plan (net of tax benefit of zero and zero, respectively) | 0 | 1 | 0 | 2 |
Other comprehensive income, net of tax | 0 | 1 | 0 | 0 |
Comprehensive loss | (19) | (26) | (35) | (31) |
Less: Comprehensive income (loss) attributable to noncontrolling interest | (2) | 0 | (3) | 2 |
Total comprehensive loss attributable to Illinois Power Generating Company | $ (17) | $ (26) | $ (32) | $ (33) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Statement of Comprehensive Income [Abstract] | ||||||
Tax on actuarial loss due to pension plan remeasurement | $ 0 | $ 0 | $ 0 | $ 1 | ||
Tax on pension plan settlement loss | $ 0 | $ 0 | $ 0 | [1] | $ 0 | [1] |
[1] | Amount related to the settlement loss on the EEI pension plan and is included in the computation of total benefit cost (gain). Please read Note 11—Pension and Other Post-Employment Benefits for further discussion. |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (35) | $ (31) |
Adjustments to reconcile net loss to net cash flows from operating activities: | ||
Depreciation expense | 50 | 48 |
Deferred income taxes and investment tax credits, net | (24) | (28) |
Other | 5 | 2 |
Changes in working capital: | ||
Accounts receivable, net | 43 | 4 |
Inventory | (16) | 1 |
Prepayments and other current assets | (3) | 7 |
Accounts payable and accrued liabilities | (1) | 15 |
Other | 1 | 0 |
Net cash provided by operating activities | 20 | 18 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures | (30) | (26) |
Net cash used in investing activities | (30) | (26) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net cash provided by financing activities | 0 | 0 |
Net decrease in cash | (10) | (8) |
Cash, beginning of year | 126 | 190 |
Cash, end of period | $ 116 | $ 182 |
Basis of Presentation and Organ
Basis of Presentation and Organization | 6 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and Organization | Note 1—Basis of Presentation and Organization The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to interim financial reporting as prescribed by the U.S. Securities and Exchange Commission (“SEC”). The year-end consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by Generally Accepted Accounting Principles of the United States of America (“GAAP”). The unaudited consolidated financial statements contained in this report include all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods. These interim financial statements should be read together with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 24, 2015, which we refer to as our “Form 10-K.” Unless the context indicates otherwise, throughout this report, the terms “Genco,” “the Company,” “we,” “us,” “our,” and “ours” are used to refer to Illinois Power Generating Company and its direct and indirect subsidiaries. We are an electric generation subsidiary of Illinois Power Resources, LLC (“IPR”), which is an indirect wholly-owned subsidiary of Dynegy Inc. (“Dynegy”). We are headquartered in Houston, Texas and were incorporated in Illinois in March 2000. We own and operate a merchant generation business in Illinois and have an 80 percent ownership interest in Electric Energy, Inc. (“EEI”). EEI operates merchant electric generation facilities and FERC-regulated transmission facilities in Illinois and Kentucky. We also consolidate our wholly-owned subsidiary, Coffeen and Western Railroad Company, for financial reporting purposes. All significant intercompany transactions have been eliminated. We are organized into a ring-fenced group in order to maintain corporate separateness from Dynegy and its other legal entities. We have an independent director, whose consent is required for certain corporate actions, including material transactions with affiliates. We maintain separate books, records and bank accounts and separately appoint officers. Furthermore, we pay liabilities from our own funds, conduct business in our own name and have restrictions on pledging our assets for the benefit of certain other persons. |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 2—Accounting Policies The accounting policies followed by the Company are set forth in Note 2—Summary of Significant Accounting Policies of the Notes to Consolidated Financial Statements in our Form 10-K. There have been no significant changes to these policies during the six months ended June 30, 2015 . The preparation of consolidated financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect our reported financial position and results of operations based on currently available information. Actual results could differ materially from our estimates. The results of operations for the interim periods presented in this Form 10-Q are not necessarily indicative of the results to be expected for the full year or any other interim period due to seasonal fluctuations in demand for our energy products and services, changes in commodity prices, timing of maintenance and other expenditures and other factors. Accounting Standards Adopted During the Current Period Reporting Discontinued Operations and Asset Disposals. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08-Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. The amendments in this ASU change the requirements for reporting discontinued operations in Subtopic 205-20. An entity is required to report within discontinued operations on the statement of operations the results of a component or group of components of an entity if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. Additionally, the associated assets and liabilities are required to be presented separately from other assets and liabilities on the balance sheet for all comparative periods. The ASU includes updated guidance regarding what meets the definition of a component of an entity. The new financial statement presentation provisions relating to this ASU are prospective and effective for interim and annual periods beginning after December 15, 2014, with early adoption permitted. The adoption of this ASU did not have a material impact on our financial statements or disclosures. Accounting Standards Not Yet Adopted Inventory. In July 2015, the FASB issued ASU 2015-011-Inventory (Topic 330). The amendments in this ASU require that inventory is measured at the lower of cost and net realizable value (“NRV”), with the latter defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU eliminates the need to determine market or replacement cost and evaluate whether it is above the ceiling at NRV or below the floor (NRV less a normal profit margin). The guidance in this ASU is effective prospectively for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We do not anticipate the adoption of this ASU will have a material impact on the presentation of our unaudited consolidated financial statements. Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-03-Interest-Imputation of Interest (Subtopic 835-30). The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this ASU should be applied on a retrospective basis, affecting all balance sheet periods presented. We do not anticipate the adoption of this ASU will have a material impact on the presentation of our consolidated balance sheets. Consolidation. In February 2015, the FASB issued ASU 2015-02-Consolidation (Topic 810). The amendments in this ASU respond to concerns about the current accounting for consolidation of certain legal entities, in particular: (i) consolidation of limited partnerships and similar legal entities, (ii) evaluating fees paid to a decision maker or a service provider as a variable interest, (iii) the effect of fee arrangements on the primary beneficiary determination, (iv) the effect of related parties on the primary beneficiary determination, and (v) consolidation of certain investment funds. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. We do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. Extraordinary and Unusual Items. In January 2015, the FASB issued ASU 2015-01-Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). The amendments in this ASU eliminate from GAAP the concept of extraordinary items and will no longer require separate classification of them within the statement of operations. Presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The guidance in this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Reporting entities may elect to apply the amendments prospectively only, or retrospectively for all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. Revenue from Contracts with Customers. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU 2014-09-Revenue from Contracts with Customers (Topic 606). The amendments in this ASU develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (“IFRS”) by removing inconsistencies and weaknesses in revenue requirements, providing a more robust framework for addressing revenue issues, improving comparability of revenue recognition practices, providing more useful information to users of financial statements and simplifying the preparation of financial statements. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are currently assessing this ASU; however, we do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. |
Risk Management, Derivatives an
Risk Management, Derivatives and Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instrument Detail [Abstract] | |
Risk Management, Derivatives and Financial Instruments | Note 3—Risk Management, Derivatives and Financial Instruments We did not have a material amount of derivative instruments as of June 30, 2015 and December 31, 2014. Impact of Derivatives on the Consolidated Statements of Operations The cumulative amount of pretax net losses on interest rate derivative instruments in Accumulated Other Comprehensive Income (“AOCI”) was $5 million as of June 30, 2015 and December 31, 2014, respectively. These interest rate swaps were executed in 2007 as a partial hedge of interest rate risks associated with our April 2008 debt issuance. The loss on the interest rate swaps is being amortized out of AOCI into our consolidated statements of operations over a 10 -year period that began in April 2008, $1.4 million of which will be amortized in 2015. Financial Instruments Not Designated as Hedges. There was no material impact of mark-to-market gains (losses) on our unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 4—Fair Value Measurements Fair Value of Financial Instruments. We have determined the estimated fair value amounts using available market information and selected valuation methodologies. Considerable judgment is required in interpreting market data to develop the estimates of fair value. The use of different market assumptions or valuation methodologies could have a material effect on the estimated fair value amounts. The carrying values of financial assets and liabilities (cash, accounts receivable, restricted cash and accounts payable) not presented in the table below approximate fair values due to the short-term maturities of these instruments. Unless otherwise noted, the fair value of debt as reflected in the table has been calculated based on the average of certain available broker quotes as of June 30, 2015 and December 31, 2014 , respectively. All fair values presented below are classified within Level 2 of the fair value hierarchy. June 30, 2015 December 31, 2014 (amounts in millions) Carrying Amount Fair Value Carrying Amount Fair Value 7.95% Senior Notes Series F, due 2032 (1) $ 274 $ 257 $ 274 $ 241 7.00% Senior Notes Series H, due 2018 $ 300 $ 290 $ 300 $ 264 6.30% Senior Notes Series I, due 2020 $ 250 $ 229 $ 250 $ 208 __________________________________________ (1) Carrying amount includes unamortized discount of $1 million as of June 30, 2015 and December 31, 2014 . Please read Note 7—Debt for further discussion. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 5—Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss), net of tax, by component are as follows: Six Months Ended June 30, (amounts in millions) 2015 2014 Beginning of period $ (16 ) $ (11 ) Other comprehensive loss before reclassifications: Actuarial loss due to pension plan remeasurement (net of tax benefit of zero and $1 million, respectively) — (2 ) Amounts reclassified from accumulated other comprehensive loss: Settlement loss on pension plan (net of tax benefit of zero and zero, respectively) (1) — 2 Net current period other comprehensive loss, net of tax — — End of period $ (16 ) $ (11 ) _______________________________________ (1) Amount related to the settlement loss on the EEI pension plan and is included in the computation of total benefit cost (gain). Please read Note 11—Pension and Other Post-Employment Benefits for further discussion. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 6—Inventory A summary of our inventories is as follows: (amounts in millions) June 30, 2015 December 31, 2014 Materials and supplies $ 30 $ 30 Coal 67 51 Fuel oil 1 1 Total $ 98 $ 82 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 7—Debt A summary of our long-term debt is as follows: (amounts in millions) June 30, 2015 December 31, 2014 Unsecured notes: 7.95% Senior Notes Series F, due 2032 $ 275 $ 275 7.00% Senior Notes Series H, due 2018 300 300 6.30% Senior Notes Series I, due 2020 250 250 825 825 Unamortized discount (1 ) (1 ) Total Long-term debt $ 824 $ 824 Indenture Provisions and Other Covenants Certain of our financial obligations and all of our senior notes include provisions which, if not met, could require early payment, additional collateral support or similar actions. The trigger events include the violation of covenants, defaults on scheduled principal or interest payments, including any indebtedness to the extent linked to it by reason of cross-default or cross-acceleration provisions, insolvency events and acceleration of other financial obligations. At June 30, 2015 , we were in compliance with the provisions and covenants contained within our indenture. Our indenture also includes provisions that require us to maintain certain interest coverage and debt-to-capital ratios in order for us to pay dividends, to make principal or interest payments on subordinated borrowings, to make loans to or investments in affiliates, or to incur additional external, third-party indebtedness. The following table summarizes these required ratios: Required Ratio Restricted payment interest coverage ratio (1) ≥1.75 Additional indebtedness interest coverage ratio (2) ≥2.50 Additional indebtedness debt-to-capital ratio (2) ≤60% _______________________________________ (1) As of the date of a restricted payment, as defined, the minimum ratio must have been achieved for the most recently ended four fiscal quarters and projected by management to be achieved for each of the subsequent four six-month periods. (2) Ratios must be computed on a pro forma basis considering the additional indebtedness to be incurred and the related interest expense. Other borrowings from third-party external sources are included in the definition of indebtedness and are subject to these incurrence tests. Our debt incurrence-related ratio restrictions under the indenture may be disregarded if both Moody’s and S&P reaffirm the ratings in place at the time of the debt incurrence after considering the additional indebtedness. Our indenture provides that dividends cannot be paid unless the actual interest coverage ratio for our most recently ended four fiscal quarters and the interest coverage ratios projected by management for each of the subsequent four six-month periods are greater than a specified minimum level. Based on June 30, 2015 calculations, our interest coverage ratios are less than the minimum ratios required to pay dividends and borrow additional funds from external, third-party sources. As a result, we were restricted from paying dividends as of June 30, 2015 . In order for us to issue securities in the future, we will have to comply with all applicable indenture requirements in effect at the time of any such issuances. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 8—Commitments and Contingencies Contingencies We record accruals for estimated losses from contingencies when available information indicates that a loss is probable and the amount of the loss, or range of loss, can be reasonably estimated. In addition, we disclose matters for which management believes a material loss is reasonably possible. Management assesses matters based on current information and makes judgments concerning their potential outcome, giving consideration to the nature of the claim, the amount, if any, and nature of damages sought and the probability of success. Management regularly reviews any new information with respect to such contingencies and adjusts its assessment and estimates of such contingencies accordingly. Because litigation is subject to inherent uncertainties including unfavorable rulings or developments, it is possible that the ultimate resolution of any legal proceedings could involve amounts that are different from recorded accruals and that such differences could be material. We are party to other routine proceedings arising in the ordinary course of business. Any accruals or estimated losses related to these matters are not material. In management’s judgment, the ultimate resolution of these matters will not have a material effect on our financial condition, results of operations or cash flows. MISO 2015-2016 Planning Resource Auction Complaints. In May of 2015, three complaints were filed at FERC regarding the Zone 4 results for the 2015-2016 Planning Resource Auction (“PRA”) conducted by MISO. The Newton, Coffeen and Joppa facilities were offered into Zone 4 in the 2015-2016 PRA. The complainants, Public Citizen, Inc., the Illinois Attorney General, and Southwestern Electric Cooperative, In c., have challenged the results of the PRA as unjust and unreasonable, requested rate relief/refunds and requested changes to the MISO PRA structure going forward. Complainants have also alleged that Dynegy may have engaged in economic or physical withholding in Zone 4 constituting market manipulation in the 2015-2016 PRA. The Independent Market Monitor for MISO (“MISO IMM”), which was responsible for monitoring the MISO 2015-2016 PRA, determined that all offers were competitive and that no physical or economic withholding occurred. The MISO IMM also stated, in a filing responding to the complaints, that there is no basis for the proposed remedies. Dynegy disputes the allegations and will defend its actions vigorously. Dynegy filed an Answer to these complaints. In addition, the Illinois Industrial Energy Consumers filed a complaint at FERC against MISO on June 30, 2015 requesting prospective changes to the MISO tariff. Dynegy also responded to this complaint. New Source Review and Clean Air Litigation. Since 1999, the EPA has been engaged in a nationwide enforcement initiative to determine whether coal-fired power plants failed to comply with the requirements of the New Source Review and New Source Performance Standard provisions under the Clean Air Act (“CAA”) when the plants implemented modifications. The EPA’s initiative focuses on whether projects performed at power plants triggered various permitting requirements, including the need to install pollution control equipment. CAA Section 114 Information Requests. Commencing in 2005, we received a series of information requests from the EPA pursuant to Section 114(a) of the CAA. The requests sought detailed operating and maintenance history data with respect to our Coffeen, Newton and Joppa facilities. In August 2012, the EPA issued a Notice of Violation (“NOV”) alleging that projects performed in 1997, 2006 and 2007 at our Newton facility violated Prevention of Significant Deterioration, Title V permitting and other requirements. We believe our defenses to the allegations described in the NOV are meritorious. A decision by the U.S. Court of Appeals for the Seventh Circuit in 2013 held that similar claims older than five years were barred by the statute of limitations. This decision may provide an additional defense to the allegations in our Newton facility NOV. Ultimate resolution of these matters could have a material adverse impact on our financial condition, results of operations and cash flows. A resolution could result in increased capital expenditures for the installation of pollution control equipment, increased operations and maintenance expenses, and penalties. At this time we are unable to make a reasonable estimate of the possible costs, or range of costs, that might be incurred to resolve these matters. Groundwater. Hydrogeologic investigations of the coal combustion residuals (“CCR”) surface impoundments have been performed at the Newton, Coffeen and Joppa facilities. Groundwater monitoring results indicate that the CCR surface impoundments at each of our facilities potentially impact onsite groundwater. In 2012, the Illinois EPA issued violation notices with respect to groundwater conditions at our Newton and Coffeen facilities’ CCR surface impoundments. In February 2013, the Illinois EPA provided written notice that it may pursue legal action with respect to each of these matters through referral to the Illinois Office of the Attorney General. In addition, in April 2015, we submitted an assessment monitoring report to the Illinois EPA concerning previously reported groundwater quality standard exceedances at the Newton facility’s active CCR landfill. The report identifies the Newton facility’s inactive unlined landfill as the likely source of the contamination and recommends various measures to minimize the effects of that source on the groundwater monitoring results of the active landfill. In April 2013, Ameren Energy Resources Company filed a proposed site-specific rulemaking with the IPCB which, if approved, would provide for the systematic and eventual closure of its CCR surface impoundments that impact groundwater in exceedance of applicable groundwater standards. In October 2013, the Illinois EPA filed a proposed rulemaking with the IPCB that would establish processes governing monitoring, corrective action and closure of CCR surface impoundments at all power generating facilities in Illinois. The site-specific rulemaking proposal, which now covers IPH, including Genco, CCR surface impoundments, has been stayed to allow the Illinois EPA proposed rulemaking to proceed. In May 2015, the IPCB granted the Illinois EPA’s request for a 90-day stay of its proposed rulemaking to consider the implications of the EPA final CCR rule. At this time we cannot reasonably estimate the costs or range of costs of resolving our Newton, Coffeen and Joppa groundwater matters, but resolution of these matters may cause us to incur significant costs that could have a material adverse effect on our financial condition, results of operations and cash flows. Commitments In conducting our operations, we have routinely entered into long-term commodity purchase and sale commitments, as well as agreements that commit future cash flow to the lease or acquisition of assets used in our businesses. These commitments have been typically associated with commodity supply arrangements, capital projects, reservation charges associated with firm transmission, transportation, storage and leases for office space, equipment, design and construction, plant sites and power generation assets. Coal Transportation . During the six months ended June 30, 2015 , we executed one new long-term coal transportation contract with an aggregate commitment of $175 million . Under this contract, we have the ability to terminate our obligation beginning in the year 2021, which would reduce our commitment to $62 million . Indemnifications and Guarantees In the ordinary course of business, we routinely enter into contractual agreements that contain various representations, warranties, indemnifications and guarantees. Examples of such agreements include, but are not limited to, service agreements, equipment purchase agreements, engineering and technical service agreements, asset sales agreements, and procurement and construction contracts. Some agreements contain indemnities that cover the other party’s negligence or limit the other party’s liability with respect to third party claims, in which event we will effectively be indemnifying the other party. Virtually all such agreements contain representations or warranties that are covered by indemnifications against the losses incurred by the other parties in the event such representations and warranties are false. While there is always the possibility of a loss related to such representations, warranties, indemnifications and guarantees in our contractual agreements, and such loss could be significant, in most cases management considers the probability of loss to be remote. Guaranty Guaranty Agreement. Genco has provided an uncapped Guaranty Agreement of certain credit support obligations and tax and environmental indemnification obligations of IPH under a transaction agreement with Ameren Corporation. Certain of the guaranteed obligations under the Guaranty Agreement will survive indefinitely. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9—Related Party Transactions We have engaged in, and may in the future engage in, affiliate transactions in the normal course of business. These transactions primarily consist of power purchases and sales, and services received or rendered. For a discussion of our material related party agreements, please read Note 11 — Related Party Transactions of the Form 10-K. The following table summarizes the affiliate accounts receivable and payable on our unaudited consolidated balance sheets. June 30, 2015 December 31, 2014 (amounts in millions) Accounts Receivable, Affiliates Accounts Payable, Affiliates Accounts Receivable, Affiliates Accounts Payable, Affiliates Power supply agreements $ 43 $ — $ 88 $ — Services agreement — 3 — 1 Tax sharing agreement — 5 — 5 Other (1) — 9 — 7 Total $ 43 $ 17 $ 88 $ 13 __________________________________________ (1) At June 30, 2015 and December 31, 2014 , approximately $7 million and $5 million , respectively, of the accounts payable, affiliate balance is comprised of reimbursable employee benefits paid by a Dynegy subsidiary on behalf of Genco. The following table presents the impact of related party transactions on our unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 . It is based primarily on the agreements discussed below and in Note 11 — Related Party Transactions of the Form 10-K. Three Months Ended June 30, Six Months Ended June 30, (amounts in millions) Income Statement Line Item 2015 2014 2015 2014 Power supply agreements Revenues $ 130 $ 137 $ 273 $ 317 Services agreement Operating and maintenance expense $ 8 $ 11 $ 19 $ 21 Power Supply Agreements Genco has a PSA with Illinois Power Marketing Company (“IPM”), whereby Genco agreed to sell and IPM agreed to purchase all of the capacity and energy available from Genco’s generation fleet. IPM entered into a similar PSA with Illinois Power Resources Generating, LLC (“IPRG”). Under the PSAs, revenues allocated between Genco and IPRG are based on reimbursable expenses and generation of each entity. Each PSA will continue through December 31, 2022, and from year to year thereafter. Either party to the respective PSA may elect to terminate the PSA by providing the other party with no less than six months advance written notice. EEI has a PSA with IPM, whereby EEI agreed to sell and IPM agreed to purchase all of the capacity and energy available from EEI’s generation fleet. The price that IPM pays for capacity is set annually based upon prevailing market prices. IPM pays spot market prices for the associated energy. In addition, EEI will at times purchase energy from IPM to fulfill obligations to a non-affiliated party. The PSA will continue through December 31, 2022. Either party to the PSA may elect to terminate the PSA by providing the other party with no less than six months advance written notice. Collateral Agreement Genco has a collateral agreement with IPM pursuant to which IPM may require Genco to provide collateral to IPM to secure obligations of IPM applicable to Genco’s assets. The initial collateral limit for Genco is $15 million and IPM can demand an additional $7.5 million for a total limit not to exceed $22.5 million . There have been no amounts provided under this agreement to date. Services Agreements Dynegy and certain of its subsidiaries (collectively, the “Providers”) provide certain services (the “Services”) to IPH, and certain of its consolidated subsidiaries (collectively, the “Recipients”), which includes us and EEI. The Providers act as agents for the Recipients for the limited purpose of providing the Services set forth in the service agreements. Prior to the beginning of each fiscal year in which Services are to be provided pursuant to the Service Agreements, the Providers and the Recipients agree on a budget for the Services, outlining, among other items, the contemplated scope of the Services to be provided in the following fiscal year and the cost of providing the Services. The Recipients will pay the Providers an annual management fee as agreed in the budget. We believe this is a reasonable method of allocating the costs of the Services to us and provides an appropriate reflection of the costs we would have incurred if we operated as an unaffiliated entity. Tax Sharing Agreement We are included in the consolidated tax returns of Dynegy. Under U.S. federal income tax law, Dynegy files consolidated income tax returns for itself and its subsidiaries. Dynegy is responsible for the federal tax liabilities of its subsidiaries which include the income and business activities of the ring-fenced entities and Dynegy’s other affiliates. Genco and Dynegy entered into a tax sharing agreement on December 2, 2013 that provides that we recognize taxes based on a separate company income tax return basis, as defined in the agreement. The tax sharing arrangement was amended at December 31, 2014 and provides that accumulated taxes payable to Dynegy, and any associated interest, be settled at the discretion of Dynegy or us. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10—Income Taxes We compute our quarterly taxes under the effective tax rate method based on applying an anticipated annual effective rate to our year-to-date income or loss, except for significant unusual or extraordinary transactions. Income taxes for significant unusual or extraordinary transactions are computed and recorded in the period that the specific transaction occurs. |
Pension and Other Post-Employme
Pension and Other Post-Employment Benefits Pension and Other Post-Employment Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Pension and Other Post-Employment Benefits | Note 11—Pension and Other Post-Employment Benefits We offer defined benefit pension and other post-employment benefit plans covering our employees. Separately, our EEI employees and retirees participate in EEI’s single-employer pension and other post-employment plans. We consolidate EEI; therefore, EEI’s plans are reflected in our pension and other post-employment balances and disclosures. Please read Note 14—Savings and Pension and Other Post-Retirement Benefit Plans in our Form 10-K for further discussion. Components of Net Periodic Benefit Cost (Gain). The following table presents the components of our net periodic benefit cost of the EEI pension and other post-employment benefit plans for the three and six months ended June 30, 2015 and 2014. Also reflected is an allocation of net periodic benefit costs from our participation in Dynegy’s single-employer pension and other post-employment plans for the three and six months ended June 30, 2015 and 2014. Pension Benefits Other Benefits Three Months Ended June 30, (amounts in millions) 2015 2014 2015 2014 Service cost $ — $ — $ 1 $ — Interest cost 1 1 — — Expected return on plan assets (1 ) (1 ) (1 ) (1 ) Amortization of: Prior service credit — — — (1 ) Actuarial loss — — — 1 Net periodic benefit (gain) — — — (1 ) Settlements — 1 — — Total benefit cost (gain) $ — $ 1 $ — $ (1 ) Pension Benefits Other Benefits Six Months Ended June 30, (amounts in millions) 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 1 $ — Interest cost 2 2 1 1 Expected return on plan assets (2 ) (2 ) (2 ) (2 ) Amortization of: Prior service credit — — — (2 ) Actuarial loss — — — 2 Net periodic benefit cost (gain) 1 1 — (1 ) Settlements — 2 — — Total benefit cost (gain) $ 1 $ 3 $ — $ (1 ) |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Note 1—Basis of Presentation and Organization The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to interim financial reporting as prescribed by the U.S. Securities and Exchange Commission (“SEC”). The year-end consolidated balance sheet data was derived from audited consolidated financial statements but does not include all disclosures required by Generally Accepted Accounting Principles of the United States of America (“GAAP”). The unaudited consolidated financial statements contained in this report include all material adjustments of a normal recurring nature that, in the opinion of management, are necessary for a fair presentation of the results for the interim periods. These interim financial statements should be read together with the consolidated financial statements and notes thereto included in our annual report on Form 10-K for the year ended December 31, 2014 , filed with the SEC on March 24, 2015, which we refer to as our “Form 10-K.” Unless the context indicates otherwise, throughout this report, the terms “Genco,” “the Company,” “we,” “us,” “our,” and “ours” are used to refer to Illinois Power Generating Company and its direct and indirect subsidiaries. We are an electric generation subsidiary of Illinois Power Resources, LLC (“IPR”), which is an indirect wholly-owned subsidiary of Dynegy Inc. (“Dynegy”). We are headquartered in Houston, Texas and were incorporated in Illinois in March 2000. We own and operate a merchant generation business in Illinois and have an 80 percent ownership interest in Electric Energy, Inc. (“EEI”). EEI operates merchant electric generation facilities and FERC-regulated transmission facilities in Illinois and Kentucky. We also consolidate our wholly-owned subsidiary, Coffeen and Western Railroad Company, for financial reporting purposes. All significant intercompany transactions have been eliminated. We are organized into a ring-fenced group in order to maintain corporate separateness from Dynegy and its other legal entities. We have an independent director, whose consent is required for certain corporate actions, including material transactions with affiliates. We maintain separate books, records and bank accounts and separately appoint officers. Furthermore, we pay liabilities from our own funds, conduct business in our own name and have restrictions on pledging our assets for the benefit of certain other persons. |
Use of Estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make informed estimates and judgments that affect our reported financial position and results of operations based on currently available information. Actual results could differ materially from our estimates. The results of operations for the interim periods presented in this Form 10-Q are not necessarily indicative of the results to be expected for the full year or any other interim period due to seasonal fluctuations in demand for our energy products and services, changes in commodity prices, timing of maintenance and other expenditures and other factors. |
Accounting Standards Adopted During the Current Period | Accounting Standards Adopted During the Current Period Reporting Discontinued Operations and Asset Disposals. In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-08-Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity. The amendments in this ASU change the requirements for reporting discontinued operations in Subtopic 205-20. An entity is required to report within discontinued operations on the statement of operations the results of a component or group of components of an entity if the disposal represents a strategic shift that has, or will have, a major effect on an entity’s operations and financial results. Additionally, the associated assets and liabilities are required to be presented separately from other assets and liabilities on the balance sheet for all comparative periods. The ASU includes updated guidance regarding what meets the definition of a component of an entity. The new financial statement presentation provisions relating to this ASU are prospective and effective for interim and annual periods beginning after December 15, 2014, with early adoption permitted. The adoption of this ASU did not have a material impact on our financial statements or disclosures. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted Inventory. In July 2015, the FASB issued ASU 2015-011-Inventory (Topic 330). The amendments in this ASU require that inventory is measured at the lower of cost and net realizable value (“NRV”), with the latter defined as the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. This ASU eliminates the need to determine market or replacement cost and evaluate whether it is above the ceiling at NRV or below the floor (NRV less a normal profit margin). The guidance in this ASU is effective prospectively for interim and annual periods beginning after December 15, 2016, with early adoption permitted. We do not anticipate the adoption of this ASU will have a material impact on the presentation of our unaudited consolidated financial statements. Debt Issuance Costs. In April 2015, the FASB issued ASU 2015-03-Interest-Imputation of Interest (Subtopic 835-30). The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. The adoption of this ASU should be applied on a retrospective basis, affecting all balance sheet periods presented. We do not anticipate the adoption of this ASU will have a material impact on the presentation of our consolidated balance sheets. Consolidation. In February 2015, the FASB issued ASU 2015-02-Consolidation (Topic 810). The amendments in this ASU respond to concerns about the current accounting for consolidation of certain legal entities, in particular: (i) consolidation of limited partnerships and similar legal entities, (ii) evaluating fees paid to a decision maker or a service provider as a variable interest, (iii) the effect of fee arrangements on the primary beneficiary determination, (iv) the effect of related parties on the primary beneficiary determination, and (v) consolidation of certain investment funds. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2015, with early adoption permitted. We do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. Extraordinary and Unusual Items. In January 2015, the FASB issued ASU 2015-01-Income Statement-Extraordinary and Unusual Items (Subtopic 225-20). The amendments in this ASU eliminate from GAAP the concept of extraordinary items and will no longer require separate classification of them within the statement of operations. Presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and will be expanded to include items that are both unusual in nature and infrequently occurring. The guidance in this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Reporting entities may elect to apply the amendments prospectively only, or retrospectively for all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. We do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. Revenue from Contracts with Customers. In May 2014, the FASB and International Accounting Standards Board (“IASB”) jointly issued ASU 2014-09-Revenue from Contracts with Customers (Topic 606). The amendments in this ASU develop a common revenue standard for U.S. GAAP and International Financial Reporting Standards (“IFRS”) by removing inconsistencies and weaknesses in revenue requirements, providing a more robust framework for addressing revenue issues, improving comparability of revenue recognition practices, providing more useful information to users of financial statements and simplifying the preparation of financial statements. The guidance in this ASU is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted for interim and annual periods beginning after December 15, 2016. We are currently assessing this ASU; however, we do not anticipate the adoption of this ASU will have a material impact on our consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Liabilities | The carrying values of financial assets and liabilities (cash, accounts receivable, restricted cash and accounts payable) not presented in the table below approximate fair values due to the short-term maturities of these instruments. Unless otherwise noted, the fair value of debt as reflected in the table has been calculated based on the average of certain available broker quotes as of June 30, 2015 and December 31, 2014 , respectively. All fair values presented below are classified within Level 2 of the fair value hierarchy. June 30, 2015 December 31, 2014 (amounts in millions) Carrying Amount Fair Value Carrying Amount Fair Value 7.95% Senior Notes Series F, due 2032 (1) $ 274 $ 257 $ 274 $ 241 7.00% Senior Notes Series H, due 2018 $ 300 $ 290 $ 300 $ 264 6.30% Senior Notes Series I, due 2020 $ 250 $ 229 $ 250 $ 208 __________________________________________ (1) Carrying amount includes unamortized discount of $1 million as of June 30, 2015 and December 31, 2014 . Please read Note 7—Debt for further discussion. |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of tax, by component are as follows: Six Months Ended June 30, (amounts in millions) 2015 2014 Beginning of period $ (16 ) $ (11 ) Other comprehensive loss before reclassifications: Actuarial loss due to pension plan remeasurement (net of tax benefit of zero and $1 million, respectively) — (2 ) Amounts reclassified from accumulated other comprehensive loss: Settlement loss on pension plan (net of tax benefit of zero and zero, respectively) (1) — 2 Net current period other comprehensive loss, net of tax — — End of period $ (16 ) $ (11 ) _______________________________________ (1) Amount related to the settlement loss on the EEI pension plan and is included in the computation of total benefit cost (gain). Please read Note 11—Pension and Other Post-Employment Benefits for further discussion. |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | A summary of our inventories is as follows: (amounts in millions) June 30, 2015 December 31, 2014 Materials and supplies $ 30 $ 30 Coal 67 51 Fuel oil 1 1 Total $ 98 $ 82 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | A summary of our long-term debt is as follows: (amounts in millions) June 30, 2015 December 31, 2014 Unsecured notes: 7.95% Senior Notes Series F, due 2032 $ 275 $ 275 7.00% Senior Notes Series H, due 2018 300 300 6.30% Senior Notes Series I, due 2020 250 250 825 825 Unamortized discount (1 ) (1 ) Total Long-term debt $ 824 $ 824 |
Schedule of Required Ratios | The following table summarizes these required ratios: Required Ratio Restricted payment interest coverage ratio (1) ≥1.75 Additional indebtedness interest coverage ratio (2) ≥2.50 Additional indebtedness debt-to-capital ratio (2) ≤60% _______________________________________ (1) As of the date of a restricted payment, as defined, the minimum ratio must have been achieved for the most recently ended four fiscal quarters and projected by management to be achieved for each of the subsequent four six-month periods. (2) Ratios must be computed on a pro forma basis considering the additional indebtedness to be incurred and the related interest expense. Other borrowings from third-party external sources are included in the definition of indebtedness and are subject to these incurrence tests. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The following table summarizes the affiliate accounts receivable and payable on our unaudited consolidated balance sheets. June 30, 2015 December 31, 2014 (amounts in millions) Accounts Receivable, Affiliates Accounts Payable, Affiliates Accounts Receivable, Affiliates Accounts Payable, Affiliates Power supply agreements $ 43 $ — $ 88 $ — Services agreement — 3 — 1 Tax sharing agreement — 5 — 5 Other (1) — 9 — 7 Total $ 43 $ 17 $ 88 $ 13 __________________________________________ (1) At June 30, 2015 and December 31, 2014 , approximately $7 million and $5 million , respectively, of the accounts payable, affiliate balance is comprised of reimbursable employee benefits paid by a Dynegy subsidiary on behalf of Genco. The following table presents the impact of related party transactions on our unaudited consolidated statements of operations for the three and six months ended June 30, 2015 and 2014 . It is based primarily on the agreements discussed below and in Note 11 — Related Party Transactions of the Form 10-K. Three Months Ended June 30, Six Months Ended June 30, (amounts in millions) Income Statement Line Item 2015 2014 2015 2014 Power supply agreements Revenues $ 130 $ 137 $ 273 $ 317 Services agreement Operating and maintenance expense $ 8 $ 11 $ 19 $ 21 |
Pension and Other Post-Employ25
Pension and Other Post-Employment Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Postemployment Benefits [Abstract] | |
Schedule of Net Periodic Benefit Costs | The following table presents the components of our net periodic benefit cost of the EEI pension and other post-employment benefit plans for the three and six months ended June 30, 2015 and 2014. Also reflected is an allocation of net periodic benefit costs from our participation in Dynegy’s single-employer pension and other post-employment plans for the three and six months ended June 30, 2015 and 2014. Pension Benefits Other Benefits Three Months Ended June 30, (amounts in millions) 2015 2014 2015 2014 Service cost $ — $ — $ 1 $ — Interest cost 1 1 — — Expected return on plan assets (1 ) (1 ) (1 ) (1 ) Amortization of: Prior service credit — — — (1 ) Actuarial loss — — — 1 Net periodic benefit (gain) — — — (1 ) Settlements — 1 — — Total benefit cost (gain) $ — $ 1 $ — $ (1 ) Pension Benefits Other Benefits Six Months Ended June 30, (amounts in millions) 2015 2014 2015 2014 Service cost $ 1 $ 1 $ 1 $ — Interest cost 2 2 1 1 Expected return on plan assets (2 ) (2 ) (2 ) (2 ) Amortization of: Prior service credit — — — (2 ) Actuarial loss — — — 2 Net periodic benefit cost (gain) 1 1 — (1 ) Settlements — 2 — — Total benefit cost (gain) $ 1 $ 3 $ — $ (1 ) |
Basis of Presentation and Org26
Basis of Presentation and Organization (Details) | Jun. 30, 2015 |
Electric Energy, Inc | |
Schedule of Equity Method Investments [Line Items] | |
Ownership percentage | 80.00% |
Risk Management, Derivatives 27
Risk Management, Derivatives and Financial Instruments (Narrative) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | |
Not Designated as Hedging Instrument | ||||
Derivative [Line Items] | ||||
Market-to-market gain (losses) | $ 0 | $ 0 | $ 0 | |
Interest Rate Derivatives | ||||
Derivative [Line Items] | ||||
Amortization period of loss | 10 years | |||
Net loss to be reclassified during the next 12 months | $ 1,400,000 | $ 1,400,000 | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | Interest Rate Derivatives | ||||
Derivative [Line Items] | ||||
Cumulative deferred pretax losses | $ 5,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Of Carrying Amounts And Estimated Fair Values Of Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | |
7.95% Senior Notes Series F, due 2032 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Unamortized discount | $ 1 | $ 1 | |
Unsecured Debt | 7.95% Senior Notes Series F, due 2032 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | [1] | 274 | 274 |
Unsecured Debt | 7.95% Senior Notes Series F, due 2032 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | [1] | 257 | 241 |
Unsecured Debt | 7.00% Senior Notes Series H, due 2018 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | 300 | 300 | |
Unsecured Debt | 7.00% Senior Notes Series H, due 2018 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | 290 | 264 | |
Unsecured Debt | 6.30% Senior Notes Series I, due 2020 | Carrying Amount | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | 250 | 250 | |
Unsecured Debt | 6.30% Senior Notes Series I, due 2020 | Fair Value | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt instrument fair value | $ 229 | $ 208 | |
[1] | Carrying amount includes unamortized discount of $1 million as of June 30, 2015 and December 31, 2014. Please read Note 7—Debt for further discussion. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | ||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning of period | $ (16) | $ (11) | |||
Other comprehensive loss before reclassifications: | |||||
Actuarial loss due to pension plan remeasurement (net of tax benefit of zero, zero, zero and $1 million, respectively) | $ 0 | $ 0 | 0 | (2) | |
Amounts reclassified from accumulated other comprehensive loss: | |||||
Settlement loss on pension plan (net of tax benefit of zero and zero, respectively) | [1] | 0 | 2 | ||
Net current period other comprehensive loss, net of tax | 0 | 0 | |||
End of period | $ (16) | $ (11) | $ (16) | $ (11) | |
[1] | Amount related to the settlement loss on the EEI pension plan and is included in the computation of total benefit cost (gain). Please read Note 11—Pension and Other Post-Employment Benefits for further discussion. |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Loss) (Changes in Accumulated Other Comprehensive Income (Loss), Net of Tax - Phantom) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Tax on actuarial loss due to pension plan remeasurement | $ 0 | $ 1 | ||||
Tax on pension plan settlement loss | $ 0 | $ 0 | $ 0 | [1] | $ 0 | [1] |
[1] | Amount related to the settlement loss on the EEI pension plan and is included in the computation of total benefit cost (gain). Please read Note 11—Pension and Other Post-Employment Benefits for further discussion. |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Materials and supplies | $ 30 | $ 30 |
Coal | 67 | 51 |
Fuel oil | 1 | 1 |
Total | $ 98 | $ 82 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2014 | ||
Debt Instrument [Line Items] | |||
Total long-term debt, gross | $ 825 | $ 825 | |
Unamortized discount | (1) | (1) | |
Total Long-term Debt | $ 824 | 824 | |
Genco restricted payment interest coverage ratio minimum | [1] | 1.75% | |
Genco additional indebtedness interest coverage ratio minimum | [2] | 2.50% | |
Genco additional indebtedness debt-to-capital ratio maximum | [2] | 60.00% | |
Dividend restrictions, interest coverage ratio determination period | 1 year | ||
Dividend restrictions, projected interest coverage ratio determination period | 2 years | ||
Unsecured Debt | 7.95% Senior Notes Series F, due 2032 | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 275 | 275 | |
Stated rate | 7.95% | ||
Unsecured Debt | 7.00% Senior Notes Series H, due 2018 | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 300 | 300 | |
Stated rate | 7.00% | ||
Unsecured Debt | 6.30% Senior Notes Series I, due 2020 | |||
Debt Instrument [Line Items] | |||
Face Amount | $ 250 | $ 250 | |
Stated rate | 6.30% | ||
[1] | As of the date of a restricted payment, as defined, the minimum ratio must have been achieved for the most recently ended four fiscal quarters and projected by management to be achieved for each of the subsequent four six-month periods. | ||
[2] | Ratios must be computed on a pro forma basis considering the additional indebtedness to be incurred and the related interest expense. Other borrowings from third-party external sources are included in the definition of indebtedness and are subject to these incurrence tests. |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Jun. 30, 2015 - Coal Transportation $ in Millions | USD ($)Contract |
Long-term Purchase Commitment [Line Items] | |
Number of new contracts | Contract | 1 |
Purchase obligation | $ 175 |
Purchase obligation, early termination option, minimum obligation | $ 62 |
Related Party Transactions (Sch
Related Party Transactions (Schedule of Related Party Transactions) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Related Party Transaction [Line Items] | ||||||
Accounts receivable, affiliates | $ 43 | $ 43 | $ 88 | |||
Accounts payable, affiliates | 17 | 17 | 13 | |||
Power Supply Agreements | Revenues | ||||||
Related Party Transaction [Line Items] | ||||||
Revenues | 130 | $ 137 | 273 | $ 317 | ||
Services Agreement | Operating and Maintenance Expense | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses | 8 | $ 11 | 19 | $ 21 | ||
Collateral Agreement with IPM | ||||||
Related Party Transaction [Line Items] | ||||||
Collateral amount, if any | 15 | 15 | ||||
Collateral amount, additional demand | 7.5 | 7.5 | ||||
Collateral amount outstanding to date | 0 | 0 | ||||
Collateral Agreement with IPM | Maximum | ||||||
Related Party Transaction [Line Items] | ||||||
Collateral amount, if any | 22.5 | 22.5 | ||||
Power Supply Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts receivable, affiliates | 43 | 43 | 88 | |||
Accounts payable, affiliates | 0 | 0 | 0 | |||
Service Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts receivable, affiliates | 0 | 0 | 0 | |||
Accounts payable, affiliates | 3 | 3 | 1 | |||
Tax Sharing Agreement | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts receivable, affiliates | 0 | 0 | 0 | |||
Accounts payable, affiliates | 5 | 5 | 5 | |||
Other Agreements | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts receivable, affiliates | [1] | 0 | 0 | 0 | ||
Accounts payable, affiliates | [1] | 9 | 9 | 7 | ||
Other Agreements | Dynegy Subsidiary | ||||||
Related Party Transaction [Line Items] | ||||||
Accounts payable, affiliates | $ 7 | $ 7 | $ 5 | |||
[1] | At June 30, 2015 and December 31, 2014, approximately $7 million and $5 million, respectively, of the accounts payable, affiliate balance is comprised of reimbursable employee benefits paid by a Dynegy subsidiary on behalf of Genco |
Pension and Other Post-Employ35
Pension and Other Post-Employment Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 0 | $ 0 | $ 1 | $ 1 |
Interest cost | 1 | 1 | 2 | 2 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of: | ||||
Prior service credit | 0 | 0 | 0 | 0 |
Actuarial loss | 0 | 0 | 0 | 0 |
Net periodic benefit cost (gain) | 0 | 0 | 1 | 1 |
Settlements | 0 | 1 | 0 | 2 |
Total benefit cost (gain) | 0 | 1 | 1 | 3 |
Other post-employment Benefits | ||||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | 1 | 0 | 1 | 0 |
Interest cost | 0 | 0 | 1 | 1 |
Expected return on plan assets | (1) | (1) | (2) | (2) |
Amortization of: | ||||
Prior service credit | 0 | (1) | 0 | (2) |
Actuarial loss | 0 | 1 | 0 | 2 |
Net periodic benefit cost (gain) | 0 | (1) | 0 | (1) |
Settlements | 0 | 0 | 0 | 0 |
Total benefit cost (gain) | $ 0 | $ (1) | $ 0 | $ (1) |