Document_and_Entity_Informatio
Document and Entity Information Cover (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 11, 2015 | Jun. 30, 2014 |
Entity Information [Line Items] | |||
Entity Registrant Name | CALPINE CORP | ||
Entity Central Index Key | 916457 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 376,193,256 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $9,891 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating revenues: | |||
Commodity revenue | $7,595 | $6,374 | $5,417 |
Mark to Market Gain Loss on Derivatives included in Operating Revenues | 419 | -86 | 48 |
Other revenue | 16 | 13 | 13 |
Operating revenues | 8,030 | 6,301 | 5,478 |
Operating expenses: | |||
Commodity expense | 4,815 | 3,808 | 2,894 |
Mark to Market Gain Loss on Derivatives Included in Fuel and Purchased Energy Expense | 77 | -72 | 130 |
Fuel and purchased energy expense | 4,892 | 3,736 | 3,024 |
Plant operating expense | 969 | 895 | 922 |
Depreciation and amortization expense | 603 | 593 | 562 |
Sales, general and other administrative expense | 144 | 136 | 140 |
Other operating expenses | 88 | 81 | 78 |
Total operating expenses | 6,696 | 5,441 | 4,726 |
Impairment losses | 123 | 16 | 0 |
(Gain) on sale of assets, net | -753 | 0 | -222 |
(Income) from unconsolidated investments in power plants | -25 | -30 | -28 |
Income from operations | 1,989 | 874 | 1,002 |
Interest expense | 645 | 696 | 736 |
Loss on interest rate derivatives | 0 | 0 | 14 |
Interest (income) | -6 | -6 | -11 |
Debt extinguishment costs | 346 | 144 | 30 |
Other (income) expense, net | 21 | 20 | 15 |
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest | 983 | 20 | 218 |
Income tax expense | 22 | 2 | 19 |
Net income | 961 | 18 | 199 |
Net income attributable to the noncontrolling interest | -15 | -4 | 0 |
Net income attributable to Calpine | $946 | $14 | $199 |
Basic earnings per common share attributable to Calpine: | |||
Weighted average shares of common stock outstanding (in shares) | 404,837 | 440,666 | 467,752 |
Net income (loss) per common share attributable to Calpine — basic (in dollars per share) | $2.34 | $0.03 | $0.43 |
Diluted earnings per common share attributable to Calpine: | |||
Weighted average shares of common stock outstanding (in shares) | 409,360 | 444,773 | 471,343 |
Net income (loss) per common share attributable to Calpine — diluted (in dollars per share) | $2.31 | $0.03 | $0.42 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $961 | $18 | $199 |
Cash flow hedging activities: | |||
Gain (loss) on cash flow hedges before reclassification adjustment for cash flow hedges realized in net income | -48 | 35 | -61 |
Reclassification adjustment for (gain) loss on cash flow hedges realized in net income | 46 | 51 | -20 |
Unrealized actuarial gains (losses) arising during period | -4 | 4 | -1 |
Foreign currency translation gain (loss) | -13 | -10 | 3 |
Income tax (expense) benefit | 0 | -3 | 9 |
Other comprehensive income (loss) | -19 | 77 | -70 |
Comprehensive income | 942 | 95 | 129 |
Comprehensive (income) loss attributable to the noncontrolling interest | -14 | -13 | 6 |
Comprehensive income attributable to Calpine | $928 | $82 | $135 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents ($229 and $242 attributable to VIEs) | $717 | $941 |
Accounts receivable, net of allowance of $4 and $5 | 648 | 552 |
Inventory | 447 | 364 |
Prepaid Expense and Other Assets, Current | 148 | 309 |
Restricted cash, current ($106 and $100 attributable to VIEs) | 195 | 203 |
Derivative Instruments and Hedges, Assets | 2,058 | 445 |
Other current assets | 7 | 42 |
Total current assets | 4,220 | 2,856 |
Property, plant and equipment, net ($4,342 and $4,191 attributable to VIEs) | 13,190 | 12,995 |
Restricted cash, net of current portion ($48 and $68 attributable to VIEs) | 49 | 69 |
Investments in power plants | 95 | 93 |
Long-term derivative assets | 439 | 105 |
Other assets ($164 and $195 attributable to VIEs) | 385 | 441 |
Total assets | 18,378 | 16,559 |
Current liabilities: | ||
Accounts payable | 580 | 462 |
Accrued interest payable | 165 | 162 |
Debt, current portion ($150 and $140 attributable to VIEs) | 199 | 204 |
Derivative liabilities, current | 1,782 | 451 |
Other current liabilities | 473 | 252 |
Total current liabilities | 3,199 | 1,531 |
Debt, net of current portion ($3,242 and $2,923 attributable to VIEs) | 11,083 | 10,908 |
Long-term derivative liabilities | 444 | 243 |
Other long-term liabilities | 221 | 309 |
Total liabilities | 14,947 | 12,991 |
Commitments and contingencies (see Note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value per share; authorized 100,000,000 shares, none issued and outstanding at December 31, 2014 and 2013 | 0 | 0 |
Common stock, $0.001 par value per share; authorized 1,400,000,000 shares, 502,287,022 shares issued and 381,921,264 shares outstanding at December 31, 2014, and 497,841,056 shares issued and 429,038,988 shares outstanding at December 31, 2013 | 1 | 1 |
Treasury stock, at cost, 120,365,758 and 68,802,068 shares, respectively | -2,345 | -1,230 |
Additional paid-in capital | 12,440 | 12,389 |
Accumulated deficit | -6,540 | -7,486 |
Accumulated other comprehensive loss | -178 | -160 |
Total Calpine stockholders’ equity | 3,378 | 3,514 |
Noncontrolling interest | 53 | 54 |
Total stockholders’ equity | 3,431 | 3,568 |
Total liabilities and stockholders’ equity | $18,378 | $16,559 |
Consolidated_Balance_Sheets_Co
Consolidated Balance Sheets Consolidated Balance Sheets Parentheticals (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Cash and cash equivalents ($229 and $242 attributable to VIEs) | $717 | $941 |
Accounts receivable, net of allowance of $4 and $5 | 4 | 5 |
Restricted cash, current ($106 and $100 attributable to VIEs) | 195 | 203 |
Property, plant and equipment, net ($4,342 and $4,191 attributable to VIEs) | 13,190 | 12,995 |
Restricted cash, net of current portion ($48 and $68 attributable to VIEs) | 49 | 69 |
Other assets ($164 and $195 attributable to VIEs) | 385 | 441 |
Debt, current portion ($150 and $140 attributable to VIEs) | 199 | 204 |
Debt, net of current portion ($3,242 and $2,923 attributable to VIEs) | 11,083 | 10,908 |
Preferred Stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred Stock, authorized shares (in shares) | 100,000,000 | 100,000,000 |
Preferred Stock, issued shares (in shares) | 0 | 0 |
Preferred Stock, outstanding shares (in shares) | 0 | 0 |
Common Stock, par value (in dollars per share) | $0.00 | $0.00 |
Common Stock, authorized shares (in shares) | 1,400,000,000 | 1,400,000,000 |
Common Stock, issued shares (in shares) | 502,287,022 | 497,841,056 |
Common Stock, outstanding shares (in shares) | 381,921,264 | 429,038,988 |
Treasury Stock, shares (in shares) | 120,365,758 | 68,802,068 |
Variable Interest Entity, Primary Beneficiary [Member] | ||
Cash and cash equivalents ($229 and $242 attributable to VIEs) | 229 | 242 |
Restricted cash, current ($106 and $100 attributable to VIEs) | 106 | 100 |
Property, plant and equipment, net ($4,342 and $4,191 attributable to VIEs) | 4,342 | 4,191 |
Restricted cash, net of current portion ($48 and $68 attributable to VIEs) | 48 | 68 |
Other assets ($164 and $195 attributable to VIEs) | 164 | 195 |
Debt, current portion ($150 and $140 attributable to VIEs) | 150 | 140 |
Debt, net of current portion ($3,242 and $2,923 attributable to VIEs) | $3,242 | $2,923 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders Equity (USD $) | Total | Common Stock [Member] | Treasury Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings (Accumulated Deficit) [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
In Millions | |||||||
Balance at Dec. 31, 2011 | $4,364 | $1 | ($125) | $12,305 | ($7,699) | ($164) | $46 |
Treasury stock transactions | -469 | 0 | -469 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 25 | 0 | 0 | 25 | 0 | 0 | 0 |
Option exercises | 5 | 0 | 0 | 5 | 0 | 0 | 0 |
Payments to Noncontrolling Interests | 0 | ||||||
Other | 2 | 0 | 0 | 0 | 0 | 0 | 2 |
Net income | 199 | 0 | 0 | 0 | 199 | 0 | 0 |
Other comprehensive income (loss) | -70 | 0 | 0 | 0 | 0 | -64 | -6 |
Balance at Dec. 31, 2012 | 4,056 | 1 | -594 | 12,335 | -7,500 | -228 | 42 |
Treasury stock transactions | -636 | 0 | -636 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 34 | 0 | 0 | 34 | 0 | 0 | 0 |
Option exercises | 20 | 0 | 0 | 20 | 0 | 0 | 0 |
Payments to Noncontrolling Interests | 0 | ||||||
Other | -1 | 0 | 0 | 0 | 0 | 0 | -1 |
Net income | 18 | 0 | 0 | 0 | 14 | 0 | 4 |
Other comprehensive income (loss) | 77 | 0 | 0 | 0 | 0 | 68 | 9 |
Balance at Dec. 31, 2013 | 3,568 | 1 | -1,230 | 12,389 | -7,486 | -160 | 54 |
Treasury stock transactions | -1,115 | 0 | -1,115 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 31 | 0 | 0 | 31 | 0 | 0 | 0 |
Option exercises | 20 | 0 | 0 | 20 | 0 | 0 | 0 |
Payments to Noncontrolling Interests | -15 | 0 | 0 | 0 | 0 | 0 | 15 |
Net income | 961 | 0 | 0 | 0 | 946 | 0 | 15 |
Other comprehensive income (loss) | -19 | 0 | 0 | 0 | 0 | -18 | -1 |
Balance at Dec. 31, 2014 | $3,431 | $1 | ($2,345) | $12,440 | ($6,540) | ($178) | $53 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Cash flows from operating activities: | ||||||
Net income | $961 | $18 | $199 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation and amortization expense(1) | 649 | [1] | 638 | [1] | 605 | [1] |
Debt extinguishment costs | 36 | 43 | 0 | |||
Deferred income taxes | 5 | 14 | 1 | |||
Impairment losses | 123 | 16 | 0 | |||
(Gain) on sale of assets, net | -753 | 0 | -222 | |||
Mark-to-market activity, net | -353 | [2] | 12 | [2] | -72 | [2] |
(Income) from unconsolidated investments in power plants | -25 | -30 | -28 | |||
Return on unconsolidated investments in power plants | 13 | 25 | 24 | |||
Stock-based compensation expense | 36 | 36 | 25 | |||
Other | -4 | 1 | 11 | |||
Change in operating assets and liabilities, net of effects of acquisitions: | ||||||
Accounts receivable | -87 | -113 | 159 | |||
Derivative instruments, net | -63 | -7 | -52 | |||
Other assets | 151 | -148 | -57 | |||
Accounts payable and accrued expenses | 185 | -1 | -86 | |||
Settlement of non-hedging interest rate swaps | 0 | 0 | 156 | |||
Other liabilities | -20 | 45 | -10 | |||
Net cash provided by operating activities | 854 | 549 | 653 | |||
Cash flows from investing activities: | ||||||
Purchases of property, plant and equipment | -492 | -575 | -637 | |||
Proceeds from sale of power plants, interests and other | 1,573 | 1 | 825 | |||
Purchase of Bosque, Fore River and Guadalupe Energy Centers | -1,197 | 0 | -432 | |||
Settlement of non-hedging interest rate swaps | 0 | 0 | -156 | |||
(Increase) decrease in restricted cash | 28 | -18 | -59 | |||
Purchases of deferred transmission credits | 0 | 0 | -12 | |||
Other | 4 | -1 | 1 | |||
Net cash used in investing activities | -84 | -593 | -470 | |||
Cash flows from financing activities: | ||||||
Proceeds from Issuance of Secured Debt | 420 | 1,587 | 835 | |||
Repayments of Secured Debt | -45 | -1,031 | -19 | |||
Proceeds from Issuance of Unsecured Debt | 2,800 | 0 | 0 | |||
Borrowings under First Lien Notes | 0 | 1,234 | 0 | |||
Repayments of First Lien Notes | -2,920 | -1,550 | -590 | |||
Borrowings from project financing, notes payable and other | 79 | 182 | 389 | |||
Repayments of project financing, notes payable and other | -178 | -66 | -289 | |||
Payments to Noncontrolling Interests | -15 | 0 | 0 | |||
Financing costs | -56 | -53 | -20 | |||
Stock repurchases | -1,100 | -623 | -463 | |||
Proceeds from exercises of stock options | 20 | 20 | 5 | |||
Other | 1 | 1 | 1 | |||
Net cash used in financing activities | -994 | -299 | -151 | |||
Net increase (decrease) in cash and cash equivalents | -224 | -343 | 32 | |||
Cash and cash equivalents, beginning of period | 941 | 1,284 | 1,252 | |||
Cash and cash equivalents, end of period | 717 | 941 | 1,284 | |||
Cash paid during the period for: | ||||||
Interest, net of amounts capitalized | 610 | 672 | 719 | |||
Income taxes | 23 | 24 | 16 | |||
Supplemental disclosure of non-cash investing and financing activities: | ||||||
Change in capital expenditures included in accounts payable | 3 | 27 | 19 | |||
Additions to property, plant and equipment through assumption of long-term note payable | 0 | 0 | 8 | |||
Additions to property, plant and equipment through capital leases | $19 | $0 | $5 | |||
[1] | Includes depreciation and amortization included in fuel and purchased energy expense and interest expense on our Consolidated Statements of Operations. | |||||
[2] | In addition to changes in market value on derivatives not designated as hedges, changes in mark-to-market 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. |
Organization_and_Operations
Organization and Operations | 12 Months Ended |
Dec. 31, 2014 | |
Organization and Operations [Abstract] | |
Organization and Operations | Organization and Operations |
We are a wholesale power generation company engaged in the ownership and operation of primarily natural gas-fired and geothermal power plants in North America. We have a significant presence in major competitive wholesale power markets in California (included in our West segment), Texas (included in our Texas segment) and the Northeast region (included in our East segment) of the U.S. We sell wholesale power, steam, capacity, renewable energy credits and ancillary services to our customers, which include utilities, independent electric system operators, industrial and agricultural companies, retail power providers, municipalities, power marketers and others. We purchase primarily natural gas and some fuel oil as fuel for our power plants and engage in related natural gas transportation and storage transactions. We purchase electric transmission rights to deliver power to our customers. Additionally, consistent with our Risk Management Policy, we enter into natural gas, power and other physical and financial contracts to hedge certain business risks and optimize our portfolio of power plants. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies | |||||||||||||||||||||||
Basis of Presentation and Principles of Consolidation | ||||||||||||||||||||||||
Our Consolidated Financial Statements have been prepared in accordance with U.S. GAAP and include the accounts of all majority-owned subsidiaries that are not VIEs and all VIEs where we have determined we are the primary beneficiary. Intercompany transactions have been eliminated in consolidation. | ||||||||||||||||||||||||
Equity Method Investments — We use the equity method of accounting to record our net interests in VIEs where we have determined that we are not the primary beneficiary, which include Greenfield LP, a 50% partnership interest, and Whitby, a 50% partnership interest. Our share of net income (loss) is calculated according to our equity ownership percentage or according to the terms of the applicable partnership agreement. See Note 5 for further discussion of our VIEs and unconsolidated investments. | ||||||||||||||||||||||||
Reclassifications — We have reclassified certain prior year amounts for comparative purposes. These reclassifications did not have a material impact on our financial condition, results of operations or cash flows. | ||||||||||||||||||||||||
Jointly-Owned Plants — Certain of our subsidiaries own undivided interests in jointly-owned plants. These plants are maintained and operated pursuant to their joint ownership participation and operating agreements. We are responsible for our subsidiaries’ share of operating costs and direct expenses and include our proportionate share of the facilities and related revenues and direct expenses in these jointly-owned plants in the corresponding balance sheet and income statement captions of our Consolidated Financial Statements. The following table summarizes our proportionate ownership interest in jointly-owned power plants: | ||||||||||||||||||||||||
As of December 31, 2014 | Ownership Interest | Property, Plant & Equipment | Accumulated Depreciation | Construction in Progress | ||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||
Freestone Energy Center | 75 | % | $ | 389 | $ | (140 | ) | $ | — | |||||||||||||||
Hidalgo Energy Center | 78.5 | % | $ | 257 | $ | (104 | ) | $ | — | |||||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||||||||||||
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures included in our Consolidated Financial Statements. Actual results could differ from those estimates. | ||||||||||||||||||||||||
Fair Value of Financial Instruments and Derivatives | ||||||||||||||||||||||||
The carrying values of accounts receivable, accounts payable and other receivables and payables approximate their respective fair values due to their short-term maturities. See Note 6 for disclosures regarding the fair value of our debt instruments and Note 7 for disclosures regarding the fair values of our derivative instruments and margin deposits and certain of our cash balances. | ||||||||||||||||||||||||
Concentrations of Credit Risk | ||||||||||||||||||||||||
Financial instruments that potentially subject us to credit risk consist of cash and cash equivalents, restricted cash, accounts and notes receivable and derivative financial instruments. Certain of our cash and cash equivalents, as well as our restricted cash balances, are invested in money market accounts with investment banks that are not FDIC insured. We place our cash and cash equivalents and restricted cash in what we believe to be creditworthy financial institutions and certain of our money market accounts invest in U.S. Treasury securities or other obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. Additionally, we actively monitor the credit risk of our counterparties, including our receivable, commodity and derivative transactions. Our accounts and notes receivable are concentrated within entities engaged in the energy industry, mainly within the U.S. We generally have not collected collateral for accounts receivable from utilities and end-user customers; however, we may require collateral in the future. For financial and commodity derivative counterparties, we evaluate the net accounts receivable, accounts payable and fair value of commodity contracts and may require security deposits, cash margin or letters of credit to be posted if our exposure reaches a certain level or their credit rating declines. | ||||||||||||||||||||||||
Our counterparties primarily consist of three categories of entities who participate in the wholesale energy markets: | ||||||||||||||||||||||||
• | financial institutions and trading companies; | |||||||||||||||||||||||
• | regulated utilities, municipalities, cooperatives, ISOs and other retail power suppliers; and | |||||||||||||||||||||||
• | oil, natural gas, chemical and other energy-related industrial companies. | |||||||||||||||||||||||
We have concentrations of credit risk with a few of our customers relating to our sales of power, steam and hedging, optimization and trading activities. We have exposure to trends within the energy industry, including declines in the creditworthiness of our counterparties for our commodity and derivative transactions. Currently, certain of our counterparties within the energy industry have below investment grade credit ratings. Our risk control group manages counterparty credit risk and monitors our net exposure with each counterparty on a daily basis. The analysis is performed on a mark-to-market basis using forward curves. The net exposure is compared against a counterparty credit risk threshold which is determined based on each counterparty’s credit rating and evaluation of their financial statements. We utilize these thresholds to determine the need for additional collateral or restriction of activity with the counterparty. We believe that our credit policies and portfolio of transactions adequately monitor and diversify our credit risk, and currently our counterparties are performing and financially settling timely according to their respective agreements. | ||||||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We have certain project finance facilities and lease agreements that require us to establish and maintain segregated cash accounts, which have been pledged as security in favor of the lenders under such project finance facilities, and the use of certain cash balances on deposit in such accounts is limited, at least temporarily, to the operations of the respective projects. At December 31, 2014 and 2013, we had cash and cash equivalents of $257 million and $292 million, respectively, that were subject to such project finance facilities and lease agreements. | ||||||||||||||||||||||||
Restricted Cash | ||||||||||||||||||||||||
Certain of our debt agreements, lease agreements or other operating agreements require us to establish and maintain segregated cash accounts, the use of which is restricted. These amounts are held by depository banks in order to comply with the contractual provisions requiring reserves for payments such as for debt service, rent, major maintenance and debt repurchases or with applicable regulatory requirements. Funds that can be used to satisfy obligations due during the next 12 months are classified as current restricted cash, with the remainder classified as non-current restricted cash. Restricted cash is generally invested in accounts earning market rates; therefore, the carrying value approximates fair value. Such cash is excluded from cash and cash equivalents on our Consolidated Balance Sheets and Statements of Cash Flows. | ||||||||||||||||||||||||
The table below represents the components of our restricted cash as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | |||||||||||||||||||
Debt service | $ | 10 | $ | 25 | $ | 35 | $ | 11 | $ | 41 | $ | 52 | ||||||||||||
Rent reserve | 4 | — | 4 | 3 | — | 3 | ||||||||||||||||||
Construction/major maintenance | 54 | 17 | 71 | 35 | 20 | 55 | ||||||||||||||||||
Security/project/insurance | 127 | 5 | 132 | 151 | 6 | 157 | ||||||||||||||||||
Other | — | 2 | 2 | 3 | 2 | 5 | ||||||||||||||||||
Total | $ | 195 | $ | 49 | $ | 244 | $ | 203 | $ | 69 | $ | 272 | ||||||||||||
Accounts Receivable and Payable | ||||||||||||||||||||||||
Accounts receivable and payable represent amounts due from customers and owed to vendors, respectively. Accounts receivable are recorded at invoiced amounts, net of reserves and allowances, and do not bear interest. Receivable balances greater than 30 days past due are individually reviewed for collectability, and if deemed uncollectible, are charged off against the allowance account after all means of collection have been exhausted and the potential for recovery is considered remote. We use our best estimate to determine the required allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, economic trends and conditions affecting our customer base, significant one-time events and historical write-off experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We review the adequacy of our reserves and allowances quarterly. | ||||||||||||||||||||||||
The accounts receivable and payable balances also include settled but unpaid amounts relating to our marketing, hedging and optimization activities. Some of these receivables and payables with individual counterparties are subject to master netting arrangements whereby we legally have a right of offset and settle the balances net. However, for balance sheet presentation purposes and to be consistent with the way we present the majority of amounts related to marketing, hedging and optimization activities on our Consolidated Statements of Operations, we present our receivables and payables on a gross basis. We do not have any significant off balance sheet credit exposure related to our customers. | ||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
Inventory primarily consists of spare parts, stored natural gas and fuel oil, environmental products and natural gas exchange imbalances. Inventory, other than spare parts, is stated primarily at the lower of cost or market value under the weighted average cost method. Spare parts inventory is valued at weighted average cost and is expensed to plant operating expense or capitalized to property, plant and equipment as the parts are utilized and consumed. | ||||||||||||||||||||||||
Collateral | ||||||||||||||||||||||||
We use margin deposits, prepayments and letters of credit as credit support with and from our counterparties for commodity procurement and risk management activities. In addition, we have granted additional first priority liens on the assets previously subject to first priority liens under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility as collateral under certain of our power and natural gas agreements. These agreements qualify as “eligible commodity hedge agreements” under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility. The first priority liens have been granted in order to reduce the cash collateral and letters of credit that we would otherwise be required to provide to our counterparties under such agreements. The counterparties under such agreements would share the benefits of the collateral subject to such first priority liens ratably with the lenders under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility. Our interest rate swap agreements relate to hedges of certain of our project financings collateralized by first priority liens on the underlying assets. See Note 9 for a further discussion on our amounts and use of collateral. | ||||||||||||||||||||||||
Deferred Financing Costs | ||||||||||||||||||||||||
Costs incurred related to the issuance of debt instruments are deferred and amortized over the term of the related debt using a method that approximates the effective interest rate method. However, when the timing of debt transactions involve contemporaneous exchanges of cash between us and the same creditor(s) in connection with the issuance of a new debt obligation and satisfaction of an existing debt obligation, deferred financing costs are accounted for depending on whether the transaction qualifies as an extinguishment or modification, which requires us to either write-off the original deferred financing costs and capitalize the new issuance costs, or continue to amortize the original deferred financing costs and immediately expense the new issuance costs. | ||||||||||||||||||||||||
Property, Plant and Equipment, Net | ||||||||||||||||||||||||
Property, plant, and equipment items are recorded at cost. We capitalize costs incurred in connection with the construction of power plants, the development of geothermal properties and the refurbishment of major turbine generator equipment. When capital improvements to leased power plants meet our capitalization criteria they are capitalized as leasehold improvements and amortized over the shorter of the term of the lease or the economic life of the capital improvement. We expense maintenance when the service is performed for work that does not meet our capitalization criteria. Our current capital expenditures at our Geysers Assets are those incurred for proven reserves and reservoir replenishment (primarily water injection), pipeline and power generation assets and drilling of “development wells” as all drilling activity has been performed within the known boundaries of the steam reservoir. We have capitalized costs incurred during ownership consisting of additions, certain replacements or repairs when the repairs appreciably extend the life, increase the capacity or improve the efficiency or safety of the property. Such costs are expensed when they do not meet the above criteria. We purchased our Geysers Assets as a proven steam reservoir and all well costs, except well workovers and routine repairs and maintenance, have been capitalized since our purchase date. | ||||||||||||||||||||||||
We depreciate our assets under the straight-line method over the shorter of their estimated useful lives or lease term. For our natural gas-fired power plants, we assume an estimated salvage value which approximates 10% of the depreciable cost basis where we own the power plant or have a favorable option to purchase the power plant or take ownership of the power plant at conclusion of the lease term and approximately 0.15% of the depreciable costs basis for rotable equipment. For our Geysers Assets, we typically assume no salvage values. We use the component depreciation method for our natural gas-fired power plant rotable parts and our information technology equipment and the composite depreciation method for most of all of the other natural gas-fired power plant asset groups and Geysers Assets. | ||||||||||||||||||||||||
Generally, upon normal retirement of assets under the composite depreciation method, the costs of such assets are retired against accumulated depreciation and no gain or loss is recorded. For the retirement of assets under the component depreciation method, generally, the costs and related accumulated depreciation of such assets are removed from our Consolidated Balance Sheets and a gain or loss is recorded as plant operating expense. | ||||||||||||||||||||||||
Impairment Evaluation of Long-Lived Assets (Including Intangibles and Investments) | ||||||||||||||||||||||||
We evaluate our long-lived assets, such as property, plant and equipment, equity method investments and definite-lived intangible assets for impairment, when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Equipment assigned to each power plant is not evaluated for impairment separately; instead, we evaluate our operating power plants and related equipment as a whole unit. When we believe an impairment condition may have occurred, we are required to estimate the undiscounted future cash flows associated with a long-lived asset or group of long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities for long-lived assets that are expected to be held and used. If we determine that the undiscounted cash flows from an asset or group of assets to be held and used are less than the associated carrying amount, or if we have classified an asset as held for sale, we must estimate fair value to determine the amount of any impairment loss. All construction and development projects are reviewed for impairment whenever there is an indication of potential reduction in fair value. If it is determined that a construction or development project is no longer probable of completion and the capitalized costs will not be recovered through future operations, the carrying value of the project will be written down to its fair value. | ||||||||||||||||||||||||
In order to estimate future cash flows, we consider historical cash flows, existing and future contracts and PPAs, changes in the market environment and other factors that may affect future cash flows. To the extent applicable, the assumptions we use are consistent with forecasts that we are otherwise required to make (for example, in preparing our earnings forecasts). The use of this method involves inherent uncertainty. We use our best estimates in making these evaluations and consider various factors, including forward price curves for power and fuel costs and forecasted operating costs. However, actual future market prices and project costs could vary from the assumptions used in our estimates, and the impact of such variations could be material. | ||||||||||||||||||||||||
When we determine that our assets meet the assets held-for-sale criteria, they are reported at the lower of their carrying amount or fair value less the cost to sell. We are also required to evaluate our equity method investments to determine whether or not they are impaired when the value is considered an “other than a temporary” decline in value. | ||||||||||||||||||||||||
Generally, fair value will be determined using valuation techniques such as the present value of expected future cash flows. We will also discount the estimated future cash flows associated with the asset using a single interest rate representative of the risk involved with such an investment including contract terms, tenor and credit risk of counterparties. We may also consider prices of similar assets, consult with brokers, or employ other valuation techniques. We use our best estimates in making these evaluations and consider various factors, including forward price curves for power and fuel costs and forecasted operating costs. However, actual future market prices and project costs could vary from the assumptions used in our estimates, and the impact of such variations could be material. | ||||||||||||||||||||||||
In August 2014, we executed a term sheet with Duke Energy Florida, Inc. related to our Osprey Energy Center for a new PPA with a term of 27 months, after which Duke Energy Florida, Inc. would purchase our Osprey Energy Center subject to an asset sale agreement that was executed in the fourth quarter of 2014 and remains subject to federal and state regulatory approval. As a result, we conducted an impairment review of our Osprey Energy Center during the third quarter of 2014. We estimated fair value of our Osprey Energy Center under a modified market approach using the discounted cash flows under the PPA and the sale proceeds to be received, which incorporated a market participant's fair value of the power plant. We recorded an impairment loss of approximately $123 million which was recorded as a separate line item on our Consolidated Statements of Operations for the year ended December 31, 2014. We recorded an impairment loss of $16 million during the year ended December 31, 2013 related to a power plant in our West segment. During 2012, we did not record any impairment losses. | ||||||||||||||||||||||||
Asset Retirement Obligation | ||||||||||||||||||||||||
We record all known asset retirement obligations for which the liability’s fair value can be reasonably estimated. Over time, the liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. At December 31, 2014 and 2013, our asset retirement obligation liabilities were $47 million and $44 million, respectively, primarily relating to land leases upon which our power plants are built and the requirement that the property meet specific conditions upon its return. | ||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||
Our operating revenues are comprised of the following: | ||||||||||||||||||||||||
• | power and steam revenue consisting of fixed and variable capacity payments, which are not related to generation including capacity payments received from RTO and ISO capacity auctions, variable payments for power and steam, which are related to generation, host steam and RECs from our Geysers Assets, other revenues such as RMR Contracts, resource adequacy and certain ancillary service revenues and realized settlements from our marketing, hedging, optimization and trading activities; | |||||||||||||||||||||||
• | mark-to-market revenues from derivative instruments as a result of our marketing, hedging, optimization and trading activities; and | |||||||||||||||||||||||
• | other service revenues. | |||||||||||||||||||||||
Power and Steam | ||||||||||||||||||||||||
Physical Commodity Contracts — We recognize revenue primarily from the sale of power and steam thermal energy for sale to our customers for use in industrial or other heating operations upon transmission and delivery to the customer. | ||||||||||||||||||||||||
We routinely enter into physical commodity contracts for sales of our generated power to manage risk and capture the value inherent in our generation. We apply lease accounting to contracts that meet the definition of a lease and accrual accounting treatment to those contracts that are either exempt from derivative accounting or do not meet the definition of a derivative instrument. Additionally, we determine whether the financial statement presentation of revenues should be on a gross or net basis. | ||||||||||||||||||||||||
With respect to our physical executory contracts, where we act as a principal, we take title of the commodities and assume the risks and rewards of ownership by receiving the natural gas and using the natural gas in our operations to generate and deliver the power. Where we act as principal, we record settlement of our physical commodity contracts on a gross basis. Where we do not take title of the commodities but receive a net variable payment to convert natural gas into power and steam in a tolling operation, we record the variable payment as revenue but do not record any fuel and purchased energy expense. | ||||||||||||||||||||||||
Capacity payments, RMR Contracts, RECs, resource adequacy and other ancillary revenues, unless qualified as a lease, are recognized when contractually earned and consist of revenues received from our customers either at the market price or a contract price. | ||||||||||||||||||||||||
Realized and Mark-to-Market Revenues from Commodity Derivative Instruments | ||||||||||||||||||||||||
Realized Settlements of Commodity Derivative Instruments — The realized value of power commodity sales and purchase contracts that are net settled or settled as gross sales and purchases, but could have been net settled, are reflected on a net basis and are included in Commodity revenue on our Consolidated Statements of Operations. | ||||||||||||||||||||||||
Mark-to-Market Gain (Loss) — The changes in the mark-to-market value of power-based commodity derivative instruments are reflected on a net basis as a separate component of operating revenues. | ||||||||||||||||||||||||
Leases — We have contracts, such as certain tolling agreements, which we account for as operating leases under U.S. GAAP. Generally, we levelize certain components of these contract revenues on a straight-line basis over the term of the contract. The total contractual future minimum lease rentals for our contracts accounted for as operating leases at December 31, 2014, are as follows (in millions): | ||||||||||||||||||||||||
2015 | $ | 561 | ||||||||||||||||||||||
2016 | 495 | |||||||||||||||||||||||
2017 | 433 | |||||||||||||||||||||||
2018 | 396 | |||||||||||||||||||||||
2019 | 357 | |||||||||||||||||||||||
Thereafter | 1,380 | |||||||||||||||||||||||
Total | $ | 3,622 | ||||||||||||||||||||||
Accounting for Derivative Instruments | ||||||||||||||||||||||||
We enter into a variety of derivative instruments including both exchange traded and OTC power and natural gas forwards, options as well as instruments that settle on the power price to natural gas price relationships (Heat Rate swaps and options) and interest rate swaps. We recognize all derivative instruments that qualify for derivative accounting treatment as either assets or liabilities and measure those instruments at fair value unless they qualify for and are designated under the normal purchase normal sale exemption. Accounting for derivatives at fair value requires us to make estimates about future prices during periods for which price quotes are not available from sources external to us, in which case we rely on internally developed price estimates. See Note 8 for further discussion on our accounting for derivatives. | ||||||||||||||||||||||||
Fuel and Purchased Energy Expense | ||||||||||||||||||||||||
Fuel and purchased energy expense is comprised of the cost of natural gas and fuel oil purchased from third parties for the purposes of consumption in our power plants as fuel, and the cost of power and natural gas purchased from third parties for our marketing, hedging and optimization activities and realized settlements and mark-to-market gains and losses resulting from general market price movements against certain derivative natural gas contracts including financial natural gas transactions economically hedging anticipated future power sales that either do not qualify as hedges under the hedge accounting guidelines or qualify under the hedge accounting guidelines and the hedge accounting designation has not been elected. | ||||||||||||||||||||||||
Realized and Mark-to-Market Expenses from Commodity Derivative Instruments | ||||||||||||||||||||||||
Realized Settlements of Commodity Derivative Instruments — The realized value of natural gas purchase and sales commodity contracts that are net settled are reflected on a net basis and included in Commodity expense on our Consolidated Statements of Operations. Power purchase commodity contracts that result in the physical delivery of power, and that also supplement our power generation, are reflected on a gross basis and are included in Commodity expense on our Consolidated Statements of Operations. | ||||||||||||||||||||||||
Mark-to-Market (Gain) Loss — The changes in the mark-to-market value of natural gas-based commodity derivative instruments are reflected on a net basis as a separate component of fuel and purchased energy expense. | ||||||||||||||||||||||||
Plant Operating Expense | ||||||||||||||||||||||||
Plant operating expense primarily includes employee expenses, utilities, chemicals, repairs and maintenance (including equipment failure and major maintenance), insurance and property taxes. We recognize these expenses when the service is performed or in the period in which the expense relates. | ||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax basis and tax credit and NOL carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. | ||||||||||||||||||||||||
We recognize the financial statement effects of a tax position when it is more-likely-than-not, based on the technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. We reverse a previously recognized tax position in the first period in which it is no longer more-likely-than-not that the tax position would be sustained upon examination. See Note 10 for a further discussion on our income taxes. | ||||||||||||||||||||||||
Earnings per Share | ||||||||||||||||||||||||
Basic earnings per share is calculated using the weighted average shares outstanding during the period and includes restricted stock units for which no future service is required as a condition to the delivery of the underlying common stock. Diluted earnings per share is calculated by adjusting the weighted average shares outstanding by the dilutive effect of share-based awards using the treasury stock method. See Note 11 for a further discussion of our earnings per share. | ||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||
We use the Black-Scholes option-pricing model or the Monte Carlo simulation model to estimate the fair value of our employee stock options on the grant date. For our restricted stock and restricted stock units, we use our closing stock price on the date of grant, or the last trading day preceding the grant date for restricted stock granted on non-trading days, as the fair value for measuring compensation expense. Our performance share units are measured at fair value using a Monte Carlo simulation model at each reporting date until settlement. See Note 12 for a further discussion of our stock-based compensation. | ||||||||||||||||||||||||
Treasury Stock | ||||||||||||||||||||||||
Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Upon retirement of treasury stock, the amounts in excess of par value are charged entirely to additional paid-in capital. See Note 14 for a further discussion of treasury stock. | ||||||||||||||||||||||||
New Accounting Standards and Disclosure Requirements | ||||||||||||||||||||||||
Income Taxes — In July 2013, the FASB issued Accounting Standards Update 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The provisions of the standard require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a NOL carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. We adopted Accounting Standards Update 2013-11 in the first quarter of 2014 which did not have a material impact on our financial condition, results of operations or cash flows. | ||||||||||||||||||||||||
Financial Reporting of Discontinued Operations — In April 2014, the FASB issued Accounting Standards Update 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment”. The update limits discontinued operations reporting to disposals that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The standard also requires new disclosures related to components reported as discontinued operations, as well as components of an entity that were sold and do not meet the criteria for discontinued operations reporting. The new financial statement presentation provisions relating to this standard are prospective and effective for interim and annual periods beginning after December 15, 2014, with early adoption permitted. We do not anticipate a material impact on our financial condition, results of operations or cash flows as a result of adopting this standard. | ||||||||||||||||||||||||
Revenue Recognition — In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. The comprehensive new revenue recognition standard will supersede all existing revenue recognition guidance. The core principle of the standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016, including interim periods within that reporting period and allows for either full retrospective or modified retrospective adoption with early adoption being prohibited. We are currently assessing the future impact this standard may have on our financial condition, results of operations or cash flows. | ||||||||||||||||||||||||
Going Concern — In August 2014, the FASB issued Accounting Standards Update 2014-15, “Presentation of Financial Statements — Going Concern”. This standard requires an entity’s management to assess the entity’s ability to continue as a going concern every reporting period including interim periods and requires additional disclosures if conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. The standard is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter with early adoption permitted. We early adopted this standard during the fourth quarter of 2014 which did not have a material impact on our financial condition, results of operations or cash flows. |
Acquisitions_Divestitures_and_
Acquisitions, Divestitures and Discontinued Operations Acquisitions and Divestitures (Notes) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | Acquisitions and Divestitures | ||||||
Acquisition of Fore River Energy Center | |||||||
On November 7, 2014, we, through our indirect, wholly-owned subsidiary Calpine Fore River Energy Center, LLC, completed the purchase of Fore River Energy Center, a power plant with a nameplate capacity of 809 MW, and related plant inventory from a subsidiary of Exelon Corporation, for approximately $530 million, excluding working capital adjustments. The addition of this modern, efficient, natural gas-fired, combined-cycle power plant increased capacity in our East segment, specifically the constrained New England market. Built in 2003, Fore River Energy Center is located in North Weymouth, Massachusetts and features two combustion turbines, two heat recovery steam generators and one steam turbine. One turbine features dual-fuel capability that will enable it to run this winter on either natural gas or fuel oil, depending on market conditions, with the other turbine scheduled to be modified to be dual-fuel capable by winter 2016. The purchase price was funded with cash on hand and primarily allocated to property, plant and equipment. Although the purchase price allocation has not been finalized, we do not expect to record any material adjustments to the preliminary purchase price allocation nor do we expect to recognize any goodwill as a result of this acquisition. The pro forma incremental impact of Fore River Energy Center on our results of operations for each of the years ended December 31, 2014 and 2013 is not material. | |||||||
Acquisition of Guadalupe Energy Center | |||||||
On February 26, 2014, we, through our indirect, wholly-owned subsidiary Calpine Guadalupe GP, LLC, completed the purchase of a power plant owned by MinnTex Power Holdings, LLC with a nameplate capacity of 1,050 MW, for approximately $625 million, excluding working capital adjustments. The addition of this modern, natural gas-fired, combined-cycle power plant increased capacity in our Texas segment, which is one of our core markets. The 110-acre site, located in Guadalupe County, Texas, which is northeast of San Antonio, Texas, includes two 525 MW generation blocks, each consisting of two GE 7FA combustion turbines, two heat recovery steam generators and one GE steam turbine. We also paid $15 million to acquire rights to an advanced development opportunity for an approximately 400 MW quick-start, natural gas-fired peaker. We funded the acquisition with $425 million in incremental CCFC Term Loans and cash on hand. See Note 6 for a further description of the incremental CCFC Term Loans. The purchase price was primarily allocated to property, plant and equipment and was finalized during the third quarter of 2014 which did not result in any material adjustments to the preliminary purchase price allocation nor the recognition of any goodwill. The pro forma incremental impact of Guadalupe Energy Center on our results of operations for each of the years ended December 31, 2014 and 2013 is not material. | |||||||
Acquisition of Bosque Energy Center | |||||||
On November 7, 2012, we, through our indirect, wholly-owned subsidiary Calpine Bosque Energy Center, LLC, completed the purchase of a power plant with a nameplate capacity of 800 MW owned by Bosque Power Co., LLC, for approximately $432 million. The modern, natural gas-fired, combined-cycle power plant increased capacity in our Texas segment and is located in Central Texas near the unincorporated community of Laguna Park in Bosque County. The site includes a 250 MW generation block with one natural-gas turbine, one heat recovery steam generator and one steam turbine that achieved COD in June 2001 and a 550 MW generation block with two natural-gas turbines that went online in June 2000 as well as two heat recovery steam generators and one steam turbine that achieved COD in June 2011. We funded the $432 million purchase price with cash on hand. The purchase price, which was finalized in 2013, was primarily allocated to property, plant and equipment. We did not record any goodwill as a result of this acquisition. | |||||||
Sale of Six Power Plants | |||||||
On July 3, 2014, we completed the sale of six of our power plants in our East segment to NatGen Southeast Power LLC, a wholly-owned subsidiary of LS Power Equity Partners III. The purchase and sale agreement, dated April 17, 2014, stipulates the sale of 100% of the limited liability company interests in (i) Mobile Energy LLC, (ii) Santa Rosa Energy Center, LLC, (iii) Carville Energy, LLC, (iv) Decatur Energy Center, LLC, (v) Columbia Energy LLC and (vi) Calpine Oneta Power, LLC and thereby sell assets comprising 3,498 MW of combined-cycle generation capacity in Oklahoma, Louisiana, Alabama, Florida and South Carolina for a sale price of approximately $1.57 billion in cash, plus approximately $2 million for working capital and other adjustments at closing. In accordance with the purchase and sale agreement, we have paid $12 million for certain maintenance events at December 31, 2014 and may also be required to make up to $4 million in future cash payments for planned maintenance. The divestiture of these power plants has better aligned our asset base with our strategic focus on competitive wholesale markets. | |||||||
We recorded a gain on sale of assets, net of approximately $753 million during the third quarter of 2014 and will use existing federal and state NOLs to almost entirely offset the projected taxable gains from the sale. The sale of the six power plants did not meet the criteria for treatment as discontinued operations. | |||||||
The six power plants included in the transaction are as follows: | |||||||
Plant Name | Plant Capacity | Location | |||||
Oneta Energy Center | 1,134 | MW | Coweta, OK | ||||
Carville Energy Center(1) | 501 | MW | St. Gabriel, LA | ||||
Decatur Energy Center | 795 | MW | Decatur, AL | ||||
Hog Bayou Energy Center | 237 | MW | Mobile, AL | ||||
Santa Rosa Energy Center | 225 | MW | Pace, FL | ||||
Columbia Energy Center(1) | 606 | MW | Calhoun County, SC | ||||
Total | 3,498 | MW | |||||
___________ | |||||||
-1 | Indicates combined-cycle cogeneration power plant. | ||||||
Sale of Riverside Energy Center | |||||||
Our 603 MW Riverside Energy Center had a PPA that provided WP&L an option to purchase the power plant and plant-related assets upon written notice of exercise prior to May 31, 2012. On May 18, 2012, WP&L exercised their option to purchase Riverside Energy Center, LLC, one of our VIEs which owned Riverside Energy Center. The sale closed on December 31, 2012 for approximately $402 million, and we recorded a pre-tax gain of approximately $7 million, which is included in (gain) on sale of assets, net on our Consolidated Statements of Operations. We used the sale proceeds for our capital allocation activities and for general corporate purposes. The sale of Riverside Energy Center did not meet the criteria for treatment as discontinued operations. | |||||||
Sale of Broad River | |||||||
On December 27, 2012, we, through our indirect, wholly-owned subsidiary Calpine Power Company, completed the sale of 100% of our ownership interest in each of the Broad River Entities for approximately $423 million. This transaction resulted in the disposition of our Broad River power plant, an 847 MW natural gas-fired, peaking power plant located in Gaffney, South Carolina, and includes a five-year consulting agreement with the buyer. We recorded a pre-tax gain of approximately $215 million in December 2012, which is included in (gain) on sale of assets, net on our Consolidated Statements of Operations. We used the sale proceeds for our capital allocation activities and for general corporate purposes. The sale of the Broad River Entities did not meet the criteria for treatment as discontinued operations. |
Property_Plant_and_Equipment_N
Property, Plant and Equipment, Net | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||||
Property, Plant and Equipment, Net | Property, Plant and Equipment, Net | |||||||||
As of December 31, 2014 and 2013, the components of property, plant and equipment are stated at cost less accumulated depreciation as follows (in millions): | ||||||||||
2014 | 2013 | Depreciable Lives | ||||||||
Buildings, machinery and equipment | $ | 16,059 | $ | 15,838 | 3 – 47 Years | |||||
Geothermal properties | 1,294 | 1,265 | 13 – 59 Years | |||||||
Other | 203 | 164 | 3 – 47 Years | |||||||
17,556 | 17,267 | |||||||||
Less: Accumulated depreciation | 4,984 | 4,897 | ||||||||
12,572 | 12,370 | |||||||||
Land | 120 | 103 | ||||||||
Construction in progress | 498 | 522 | ||||||||
Property, plant and equipment, net | $ | 13,190 | $ | 12,995 | ||||||
We have various debt instruments that are collateralized by our property, plant and equipment. See Note 6 for a discussion of such instruments. | ||||||||||
Buildings, Machinery and Equipment | ||||||||||
This component primarily includes power plants and related equipment. Included in buildings, machinery and equipment are assets under capital leases. See Note 6 for further information regarding these assets under capital leases. | ||||||||||
Geothermal Properties | ||||||||||
This component primarily includes power plants and related equipment associated with our Geysers Assets. | ||||||||||
Other | ||||||||||
This component primarily includes software and emission reduction credits that are power plant specific and not available to be sold. | ||||||||||
Capitalized Interest | ||||||||||
The total amount of interest capitalized was $19 million, $38 million and $38 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Variable_Interest_Entities_and
Variable Interest Entities and Unconsolidated Investments | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Variable Interest Entities and Unconsolidated Investments [Abstract] | ||||||||||||||||||||||||
Variable Interest Entities and Unconsolidated Investments | Variable Interest Entities and Unconsolidated Investments | |||||||||||||||||||||||
We consolidate all of our VIEs where we have determined that we are the primary beneficiary. There were no changes to our determination of whether we are the primary beneficiary of our VIEs for the year ended December 31, 2014. We have the following types of VIEs consolidated in our financial statements: | ||||||||||||||||||||||||
Subsidiaries with Project Debt — All of our subsidiaries with project debt not guaranteed by Calpine have PPAs that provide financial support and are thus considered VIEs. We retain ownership and absorb the full risk of loss and potential for reward once the project debt is paid in full. Actions by the lender to assume control of collateral can occur only under limited circumstances such as upon the occurrence of an event of default, which we have determined to be unlikely. See Note 6 for further information regarding our project debt and Note 2 for information regarding our restricted cash balances. | ||||||||||||||||||||||||
Subsidiaries with PPAs — Certain of our majority owned subsidiaries have PPAs that limit the risk and reward of our ownership and thus constitute a VIE. | ||||||||||||||||||||||||
VIE with a Purchase Option — OMEC has an agreement that provides a third party a fixed price option to purchase power plant assets exercisable in the year 2019. This purchase option limits the risk and reward of our ownership and, thus, constitutes a VIE. | ||||||||||||||||||||||||
Consolidation of VIEs | ||||||||||||||||||||||||
We consolidate our VIEs where we determine that we have both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or receive benefits from the VIE. We have determined that we hold the obligation to absorb losses and receive benefits in all of our VIEs where we hold the majority equity interest. Therefore, our determination of whether to consolidate is based upon which variable interest holder has the power to direct the most significant activities of the VIE (the primary beneficiary). Our analysis includes consideration of the following primary activities which we believe to have a significant impact on a power plant’s financial performance: operations and maintenance, plant dispatch, and fuel strategy as well as our ability to control or influence contracting and overall plant strategy. Our approach to determining which entity holds the powers and rights is based on powers held as of the balance sheet date. Contractual terms that may change the powers held in future periods, such as a purchase or sale option, are not considered in our analysis. Based on our analysis, we believe that we hold the power and rights to direct the most significant activities of all our majority-owned VIEs. | ||||||||||||||||||||||||
Under our consolidation policy and under U.S. GAAP we also: | ||||||||||||||||||||||||
• | perform an ongoing reassessment each reporting period of whether we are the primary beneficiary of our VIEs; and | |||||||||||||||||||||||
• | evaluate if an entity is a VIE and whether we are the primary beneficiary whenever any changes in facts and circumstances occur such that the holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of a VIE that most significantly impact the VIE’s economic performance or when there are other changes in the powers held by individual variable interest holders. | |||||||||||||||||||||||
Noncontrolling Interest — We own a 75% interest in Russell City Energy Company, LLC, one of our VIEs, which is also 25% owned by a third party. We fully consolidate this entity in our Consolidated Financial Statements and account for the third party ownership interest as a noncontrolling interest. | ||||||||||||||||||||||||
VIE Disclosures | ||||||||||||||||||||||||
Our consolidated VIEs include natural gas-fired power plants with an aggregate capacity of 10,365 MW and 9,427 MW, at December 31, 2014 and 2013, respectively. For these VIEs, we may provide other operational and administrative support through various affiliate contractual arrangements among the VIEs, Calpine Corporation and its other wholly-owned subsidiaries whereby we support the VIE through the reimbursement of costs and/or the purchase and sale of energy. Other than amounts contractually required, we provided support to these VIEs in the form of cash and other contributions of $47 million, nil and $20 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||
U.S. GAAP requires separate disclosure on the face of our Consolidated Balance Sheets of the significant assets of a consolidated VIE that can be used only to settle obligations of the consolidated VIE and the significant liabilities of a consolidated VIE for which creditors (or beneficial interest holders) do not have recourse to the general credit of the primary beneficiary. In determining which assets of our VIEs meet the separate disclosure criteria, we consider that this separate disclosure requirement is met where Calpine Corporation is substantially limited or prohibited from access to assets (primarily cash and cash equivalents, restricted cash and property, plant and equipment), and where our VIEs had project financing that prohibits the VIE from providing guarantees on the debt of others. In determining which liabilities of our VIEs meet the separate disclosure criteria, we consider that this separate disclosure requirement is met where there are agreements that prohibit the debt holders of the VIEs from recourse to the general credit of Calpine Corporation and where the amounts were material to our financial statements. | ||||||||||||||||||||||||
Unconsolidated VIEs and Investments in Power Plants | ||||||||||||||||||||||||
We have a 50% partnership interest in Greenfield LP and in Whitby. Greenfield LP and Whitby are also VIEs; however, we do not have the power to direct the most significant activities of these entities and therefore do not consolidate them. Greenfield LP is a limited partnership between certain subsidiaries of ours and of Mitsui & Co., Ltd., which operates the Greenfield Energy Centre, a 1,038 MW natural gas-fired, combined-cycle power plant located in Ontario, Canada. We and Mitsui & Co., Ltd. each hold a 50% interest in Greenfield LP. Whitby is a limited partnership between certain of our subsidiaries and Atlantic Packaging Ltd., which operates the Whitby facility, a 50 MW natural gas-fired, simple-cycle cogeneration power plant located in Ontario, Canada. We and Atlantic Packaging Ltd. each hold a 50% partnership interest in Whitby. | ||||||||||||||||||||||||
We account for these entities under the equity method of accounting and include our net equity interest in investments in power plants on our Consolidated Balance Sheets. At December 31, 2014 and 2013, our equity method investments included on our Consolidated Balance Sheets were comprised of the following (in millions): | ||||||||||||||||||||||||
Ownership Interest as of December 31, 2014 | 2014 | 2013 | ||||||||||||||||||||||
Greenfield LP | 50% | $ | 78 | $ | 76 | |||||||||||||||||||
Whitby | 50% | 17 | 17 | |||||||||||||||||||||
Total investments in power plants | $ | 95 | $ | 93 | ||||||||||||||||||||
Our risk of loss related to our unconsolidated VIEs is limited to our investment balance. Holders of the debt of our unconsolidated investments do not have recourse to Calpine Corporation and its other subsidiaries; therefore, the debt of our unconsolidated investments is not reflected on our Consolidated Balance Sheets. At December 31, 2014 and 2013, equity method investee debt was approximately $342 million and $395 million, respectively, and based on our pro rata share of each of the investments, our share of such debt would be approximately $171 million and $198 million at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||||
Our equity interest in the net income from Greenfield LP and Whitby for the years ended December 31, 2014, 2013 and 2012, is recorded in (income) from unconsolidated investments in power plants. The following table sets forth details of our (income) from unconsolidated investments in power plants and distributions for the years indicated (in millions): | ||||||||||||||||||||||||
(Income) from Unconsolidated | Distributions | |||||||||||||||||||||||
Investments in Power Plants | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Greenfield LP | $ | (10 | ) | $ | (16 | ) | $ | (17 | ) | $ | — | $ | 18 | $ | 22 | |||||||||
Whitby | (15 | ) | (14 | ) | (11 | ) | 13 | 9 | 7 | |||||||||||||||
Total | $ | (25 | ) | $ | (30 | ) | $ | (28 | ) | $ | 13 | $ | 27 | $ | 29 | |||||||||
Inland Empire Energy Center Put and Call Options — We hold a call option to purchase the Inland Empire Energy Center (a 775 MW natural gas-fired power plant located in California) from GE that may be exercised between years 2017 and 2024. GE holds a put option whereby they can require us to purchase the power plant, if certain plant performance criteria are met by 2025. We determined that we are not the primary beneficiary of the Inland Empire power plant, and we do not consolidate it due to the fact that GE directs the most significant activities of the power plant including operations and maintenance. | ||||||||||||||||||||||||
Significant Unconsolidated Subsidiaries — Greenfield LP and Whitby met the criteria of significant unconsolidated subsidiaries for the years ended December 31, 2013 and 2012, based upon the relationship of our equity income from our investment in these subsidiaries, when combined, to our consolidated net income before taxes. Aggregated summarized financial data for our unconsolidated subsidiaries is set forth below (in millions): | ||||||||||||||||||||||||
Condensed Combined Balance Sheets | ||||||||||||||||||||||||
of Our Unconsolidated Subsidiaries | ||||||||||||||||||||||||
December 31, 2014 and 2013 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 58 | $ | 57 | ||||||||||||||||||||
Current assets | 28 | 25 | ||||||||||||||||||||||
Property, plant and equipment, net | 532 | 588 | ||||||||||||||||||||||
Other assets | 2 | 2 | ||||||||||||||||||||||
Total assets | $ | 620 | $ | 672 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Current maturities of long-term debt | $ | 21 | $ | 23 | ||||||||||||||||||||
Current liabilities | 28 | 44 | ||||||||||||||||||||||
Long-term debt | 321 | 372 | ||||||||||||||||||||||
Long-term derivative liabilities | 51 | 35 | ||||||||||||||||||||||
Total liabilities | 421 | 474 | ||||||||||||||||||||||
Member's interest | 199 | 198 | ||||||||||||||||||||||
Total liabilities and member's interest | $ | 620 | $ | 672 | ||||||||||||||||||||
Condensed Combined Statements of Operations | ||||||||||||||||||||||||
of Our Unconsolidated Subsidiaries | ||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Revenues | $ | 239 | $ | 207 | $ | 247 | ||||||||||||||||||
Operating expenses | 168 | 128 | 171 | |||||||||||||||||||||
Income from operations | 71 | 79 | 76 | |||||||||||||||||||||
Interest expense, net of interest income | 23 | 24 | 27 | |||||||||||||||||||||
Other (income) expense, net | — | (3 | ) | (2 | ) | |||||||||||||||||||
Net income | $ | 48 | $ | 58 | $ | 51 | ||||||||||||||||||
Debt
Debt | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Debt | Debt | |||||||||||||||
Our debt at December 31, 2014 and 2013, was as follows (in millions): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
First Lien Notes | $ | 2,075 | $ | 4,989 | ||||||||||||
Senior Unsecured Notes | 2,800 | — | ||||||||||||||
First Lien Term Loans | 2,799 | 2,828 | ||||||||||||||
Project financing, notes payable and other | 1,810 | 1,901 | ||||||||||||||
CCFC Term Loans | 1,596 | 1,191 | ||||||||||||||
Capital lease obligations | 202 | 203 | ||||||||||||||
Subtotal | 11,282 | 11,112 | ||||||||||||||
Less: Current maturities | 199 | 204 | ||||||||||||||
Total long-term debt | $ | 11,083 | $ | 10,908 | ||||||||||||
Our debt agreements contain covenants which could permit lenders to accelerate the repayment of our debt by providing notice, the lapse of time, or both, if certain events of default remain uncured after any applicable grace period. We were in compliance with all of the covenants in our debt agreements at December 31, 2014. | ||||||||||||||||
Annual Debt Maturities | ||||||||||||||||
Contractual annual principal repayments or maturities of debt instruments as of December 31, 2014, are as follows (in millions): | ||||||||||||||||
2015 | $ | 199 | ||||||||||||||
2016 | 205 | |||||||||||||||
2017 | 562 | |||||||||||||||
2018 | 1,730 | |||||||||||||||
2019 | 1,217 | |||||||||||||||
Thereafter | 7,393 | |||||||||||||||
Subtotal | 11,306 | |||||||||||||||
Less: Discount | 24 | |||||||||||||||
Total debt | $ | 11,282 | ||||||||||||||
First Lien Notes | ||||||||||||||||
Our First Lien Notes are summarized in the table below (in millions, except for interest rates): | ||||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(3) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2019 First Lien Notes(1) | $ | — | $ | 320 | — | % | 8.2 | % | ||||||||
2020 First Lien Notes(1) | — | 875 | — | 8.2 | ||||||||||||
2021 First Lien Notes(1) | — | 1,600 | — | 7.7 | ||||||||||||
2022 First Lien Notes | 745 | 744 | 6.3 | 6.2 | ||||||||||||
2023 First Lien Notes(2) | 840 | 960 | 8 | 8 | ||||||||||||
2024 First Lien Notes | 490 | 490 | 6 | 5.9 | ||||||||||||
Total First Lien Notes | $ | 2,075 | $ | 4,989 | ||||||||||||
____________ | ||||||||||||||||
-1 | The 2019 First Lien Notes, 2020 First Lien Notes and 2021 First Lien Notes were repaid during the third quarter of 2014 with the proceeds from the issuance of our Senior Unsecured Notes, together with cash on hand, which are described in further detail below. | |||||||||||||||
-2 | In December 2014, we used cash on hand to redeem 10% of the original aggregate principal amount of our 2023 First Lien Notes, plus accrued and unpaid interest. On February 3, 2015, we additionally repurchased approximately $150 million of our 2023 First Lien Notes with the proceeds from our 2024 Senior Unsecured Notes, which is described in further detail below. | |||||||||||||||
-3 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
Our First Lien Notes are secured equally and ratably with indebtedness incurred under our First Lien Term Loans and Corporate Revolving Facility, subject to certain exceptions and permitted liens, on substantially all of our and certain of the guarantors’ existing and future assets. Additionally, our First Lien Notes rank equally in right of payment with all of our and the guarantors’ other existing and future senior indebtedness, and will be effectively subordinated in right of payment to all existing and future liabilities of our subsidiaries that do not guarantee our First Lien Notes. | ||||||||||||||||
Subject to certain qualifications and exceptions, our First Lien Notes will, among other things, limit our ability and the ability of the guarantors to: | ||||||||||||||||
• | incur or guarantee additional first lien indebtedness; | |||||||||||||||
• | enter into certain types of commodity hedge agreements that can be secured by first lien collateral; | |||||||||||||||
• | enter into sale and leaseback transactions; | |||||||||||||||
• | create or incur liens; and | |||||||||||||||
• | consolidate, merge or transfer all or substantially all of our assets and the assets of our restricted subsidiaries on a combined basis. | |||||||||||||||
Senior Unsecured Notes | ||||||||||||||||
Our Senior Unsecured Notes are summarized in the table below (in millions, except for interest rates): | ||||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2023 Senior Unsecured Notes | $ | 1,250 | $ | — | 5.6 | % | — | % | ||||||||
2025 Senior Unsecured Notes | 1,550 | — | 5.9 | — | ||||||||||||
Total Senior Unsecured Notes | $ | 2,800 | $ | — | ||||||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
On July 22, 2014, we issued $1.25 billion in aggregate principal amount of 5.375% senior unsecured notes due 2023 and $1.55 billion in aggregate principal amount of 5.75% senior unsecured notes due 2025 in a public offering. The 2023 Senior Unsecured Notes bear interest at 5.375% per annum and the 2025 Senior Unsecured Notes bear interest at 5.75% per annum, in each case payable semi-annually on April 15 and October 15 of each year, beginning on April 15, 2015. The 2023 Senior Unsecured Notes mature on January 15, 2023 and the 2025 Senior Unsecured Notes mature on January 15, 2025. Our Senior Unsecured Notes were issued at par. | ||||||||||||||||
Our Senior Unsecured Notes are: | ||||||||||||||||
• | general unsecured obligations of Calpine; | |||||||||||||||
• | rank equally in right of payment with all of Calpine’s existing and future senior indebtedness; | |||||||||||||||
• | effectively subordinated to Calpine’s secured indebtedness to the extent of the value of the collateral securing such indebtedness; | |||||||||||||||
• | structurally subordinated to any existing and future indebtedness and other liabilities of Calpine’s subsidiaries; and | |||||||||||||||
• | senior in right of payment to any of Calpine’s subordinated indebtedness. | |||||||||||||||
We used the net proceeds received from the issuance of our 2023 Senior Unsecured Notes and 2025 Senior Unsecured Notes, together with cash on hand, to repurchase our outstanding 2019 First Lien Notes, 2020 First Lien Notes and 2021 First Lien Notes during the third quarter of 2014. We recorded approximately $42 million in deferred financing costs and approximately $340 million in debt extinguishment costs during the third quarter of 2014 related to the repayment of our 2019 First Lien Notes, 2020 First Lien Notes and 2021 First Lien Notes. | ||||||||||||||||
In February 2015, we issued $650 million in aggregate principal amount of 5.5% senior unsecured notes due 2024 in a public offering. The 2024 Senior Unsecured Notes bear interest at 5.5% per annum with interest payable semi-annually on February 1 and August 1 of each year, beginning on August 1, 2015. The 2024 Senior Unsecured Notes were issued at par, mature on February 1, 2024 and contain substantially similar covenant, qualifications, exceptions and limitations as our 2023 Senior Unsecured Notes and 2025 Senior Unsecured Notes. We used the net proceeds received from the issuance of our 2024 Senior Unsecured Notes to replenish cash on hand used for the acquisition of Fore River Energy Center in the fourth quarter of 2014 and to repurchase approximately $150 million of our 2023 First Lien Notes. | ||||||||||||||||
First Lien Term Loans | ||||||||||||||||
Our First Lien Term Loans are summarized in the table below (in millions, except for interest rates): | ||||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2018 First Lien Term Loans | $ | 1,597 | $ | 1,614 | 4.3 | % | 4.3 | % | ||||||||
2019 First Lien Term Loan | 816 | 824 | 4.4 | 4.5 | ||||||||||||
2020 First Lien Term Loan | 386 | 390 | 4.3 | 4.3 | ||||||||||||
Total First Lien Term Loans | $ | 2,799 | $ | 2,828 | ||||||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
Our First Lien Term Loans provide for senior secured term loan facilities and bear interest, at our option, at either (i) the base rate, equal to the higher of the Federal Funds effective rate plus 0.5% per annum or the Prime Rate (as such terms are defined in the First Lien Term Loans credit agreements), plus an applicable margin of 2.0%, or (ii) LIBOR plus 3.0% per annum subject to a LIBOR floor of 1.0%. An aggregate amount equal to 0.25% of the aggregate principal amount of the First Lien Term Loans will be payable at the end of each quarter with the remaining balance payable on the maturity date. The First Lien Term Loans are subject to certain qualifications and exceptions, similar to our First Lien Notes. The 2018 First Lien Term Loans have a maturity date of April 1, 2018. The 2019 First Lien Term Loan and 2020 First Lien Term Loan carries substantially the same terms as the 2018 First Lien Term Loans and matures on October 9, 2019 and October 31, 2020, respectively. | ||||||||||||||||
Project Financing, Notes Payable and Other | ||||||||||||||||
The components of our project financing, notes payable and other are (in millions, except for interest rates): | ||||||||||||||||
Outstanding at | Weighted Average | |||||||||||||||
December 31, | Effective Interest Rates(1) | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Russell City due 2023 | $ | 591 | $ | 593 | 6.2 | % | 4.9 | % | ||||||||
Steamboat due 2017 | 407 | 418 | 6.9 | 6.8 | ||||||||||||
OMEC due 2019 | 325 | 335 | 6.9 | 6.9 | ||||||||||||
Los Esteros due 2023 | 275 | 305 | 3.1 | 3.4 | ||||||||||||
Pasadena(2) | 122 | 135 | 8.9 | 8.9 | ||||||||||||
Bethpage Energy Center 3 due 2020-2025(3) | 82 | 88 | 7 | 7 | ||||||||||||
Gilroy note payable due 2014 | — | 15 | — | 11.2 | ||||||||||||
Other | 8 | 12 | — | — | ||||||||||||
Total | $ | 1,810 | $ | 1,901 | ||||||||||||
_____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount or premium. | |||||||||||||||
-2 | Represents a failed sale-leaseback transaction that is accounted for as financing transaction under U.S. GAAP. | |||||||||||||||
-3 | Represents a weighted average of first and second lien loans for the weighted average effective interest rates. | |||||||||||||||
Our project financings are collateralized solely by the capital stock or partnership interests, physical assets, contracts and/or cash flows attributable to the entities that own the power plants. The lenders’ recourse under these project financings is limited to such collateral. | ||||||||||||||||
CCFC Term Loans | ||||||||||||||||
Our CCFC Term Loans are summarized in the table below (in millions, except for interest rates): | ||||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
CCFC Term Loans | $ | 1,596 | $ | 1,191 | 3.4 | % | 3.3 | % | ||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
On May 3, 2013, CCFC entered into a credit agreement providing for a first lien senior secured term loan facility comprised of (i) a $900 million 7-year term loan and (ii) a $300 million 8.5-year term loan. The CCFC Term Loans bear interest, at CCFC’s option, at either (i) the Base Rate, equal to the higher of the Federal Funds Effective Rate plus 0.50% per annum or the Prime Rate (as such terms are defined in the Credit Agreement), plus an applicable margin of (a) 1.25% per annum with respect to the 7-year term loan and (b) 1.50% per annum with respect to the 8.5-year term loan, or (ii) LIBOR plus (a) 2.25% per annum with respect to the 7-year term loan and (b) 2.50% per annum with respect to the 8.5-year term loan (in each case subject to a LIBOR floor of 0.75%). The term loans were offered to investors at an issue price equal to 99.75% of face value. | ||||||||||||||||
An amount equal to 0.25% of the aggregate principal amount of the CCFC Term Loans are payable at the end of each quarter commencing in September 2013, with the remaining balance payable on the relevant maturity date (May 3, 2020 with respect to the 7-year term loan and January 31, 2022 with respect to the 8.5-year term loan). CCFC may elect from time to time to convert all or a portion of the CCFC Term Loans from LIBOR loans to Base Rate loans or vice versa. In addition, CCFC may at any time, and from time to time, prepay the term loans, in whole or in part, without premium or penalty, upon irrevocable notice to the administrative agent. | ||||||||||||||||
In February 2014, we executed an amendment to the credit agreement associated with the CCFC Term Loans, which allowed us to issue $425 million in incremental CCFC Term Loans to fund a portion of the purchase price paid in connection with the closing of our acquisition of Guadalupe Energy Center on February 26, 2014. Guadalupe Energy Center was purchased by Calpine Guadalupe GP, LLC, a wholly-owned subsidiary of CCFC. The incremental term loans carry substantially the same terms and conditions as the $300 million in aggregate principal amount of CCFC Term Loans issued in June 2013. The incremental term loans were offered to investors at an issue price equal to 98.75% of face value. | ||||||||||||||||
The CCFC Term Loans are secured by certain real and personal property of CCFC consisting primarily of seven natural gas-fired power plants. The CCFC Term Loans are not guaranteed by Calpine Corporation and are without recourse to Calpine Corporation or any of our non-CCFC subsidiaries or assets; however, CCFC generates the majority of its cash flows from an intercompany tolling agreement with Calpine Energy Services, L.P. and has various service agreements in place with other subsidiaries of Calpine Corporation. | ||||||||||||||||
Capital Lease Obligations | ||||||||||||||||
The following is a schedule by year of future minimum lease payments under capital leases and a failed sale-leaseback transaction related to our Pasadena Power Plant together with the present value of the net minimum lease payments as of December 31, 2014 (in millions): | ||||||||||||||||
Sale-Leaseback Transactions(1) | Capital Lease | Total | ||||||||||||||
2015 | $ | 25 | $ | 47 | $ | 72 | ||||||||||
2016 | 25 | 41 | 66 | |||||||||||||
2017 | 17 | 39 | 56 | |||||||||||||
2018 | 21 | 38 | 59 | |||||||||||||
2019 | 21 | 20 | 41 | |||||||||||||
Thereafter | 85 | 151 | 236 | |||||||||||||
Total minimum lease payments | 194 | 336 | 530 | |||||||||||||
Less: Amount representing interest | 72 | 134 | 206 | |||||||||||||
Present value of net minimum lease payments | $ | 122 | $ | 202 | $ | 324 | ||||||||||
____________ | ||||||||||||||||
-1 | Amounts are accounted for as financing transactions under U.S. GAAP and are included in our project financing, notes payable and other amounts above. | |||||||||||||||
The primary types of property leased by us are power plants and related equipment. The leases generally provide for the lessee to pay taxes, maintenance, insurance, and certain other operating costs of the leased property. The remaining lease terms range up to 34 years (including lease renewal options). Some of the lease agreements contain customary restrictions on dividends up to Calpine Corporation, additional debt and further encumbrances similar to those typically found in project financing agreements. At December 31, 2014 and 2013, the asset balances for the leased assets totaled approximately $933 million and $862 million with accumulated amortization of $395 million and $343 million, respectively. Amortization of assets under capital leases is recorded in depreciation and amortization expense on our Consolidated Statements of Operations. See Note 15 for discussion of capital leases guaranteed by Calpine Corporation. | ||||||||||||||||
Corporate Revolving Facility and Other Letters of Credit Facilities | ||||||||||||||||
The table below represents amounts issued under our letter of credit facilities at December 31, 2014 and 2013 (in millions): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Corporate Revolving Facility | $ | 223 | $ | 242 | ||||||||||||
CDHI | 214 | 218 | ||||||||||||||
Various project financing facilities | 207 | 170 | ||||||||||||||
Total | $ | 644 | $ | 630 | ||||||||||||
On July 30, 2014, we executed Amendment No. 2 to the Corporate Revolving Facility to increase the capacity by an additional $500 million to $1.5 billion. | ||||||||||||||||
The Corporate Revolving Facility represents our primary revolving facility. Borrowings under the Corporate Revolving Facility bear interest, at our option, at either a base rate or LIBOR rate. Base rate borrowings shall be at the base rate, plus an applicable margin ranging from 1.00% to 1.25% as provided in the Corporate Revolving Facility credit agreement. Base rate is defined as the higher of (i) the Federal Funds Effective Rate, as published by the Federal Reserve Bank of New York, plus 0.50% and (ii) the rate the administrative agent announces from time to time as its prime per annum rate. LIBOR rate borrowings shall be at the British Bankers’ Association Interest Settlement Rates for the interest period as selected by us as a one, two, three, six or, if agreed by all relevant lenders, nine or twelve month interest period, plus an applicable margin ranging from 2.00% to 2.25%. Interest payments are due on the last business day of each calendar quarter for base rate loans and the earlier of (i) the last day of the interest period selected or (ii) each day that is three months (or a whole multiple thereof) after the first day for the interest period selected for LIBOR rate loans. Letter of credit fees for issuances of letters of credit include fronting fees equal to that percentage per annum as may be separately agreed upon between us and the issuing lenders and a participation fee for the lenders equal to the applicable interest margin for LIBOR rate borrowings. Drawings under letters of credit shall be repaid within two business days or be converted into borrowings as provided in the Corporate Revolving Facility credit agreement. We incur an unused commitment fee ranging from 0.25% to 0.50% on the unused amount of commitments under the Corporate Revolving Facility. | ||||||||||||||||
The Corporate Revolving Facility does not contain any requirements for mandatory prepayments, except in the case of certain designated asset sales in excess of $3.0 billion in the aggregate. However, we may voluntarily repay, in whole or in part, the Corporate Revolving Facility, together with any accrued but unpaid interest, with prior notice and without premium or penalty. Amounts repaid may be reborrowed, and we may also voluntarily reduce the commitments under the Corporate Revolving Facility without premium or penalty. The Corporate Revolving Facility matures on June 27, 2018. | ||||||||||||||||
The Corporate Revolving Facility is guaranteed and secured by each of our current domestic subsidiaries that was a guarantor under the First Lien Credit Facility and will also be additionally guaranteed by our future domestic subsidiaries that are required to provide such a guarantee in accordance with the terms of the Corporate Revolving Facility. The Corporate Revolving Facility ranks equally in right of payment with all of our and the guarantors’ other existing and future senior indebtedness and will be effectively subordinated in right of payment to all existing and future liabilities of our subsidiaries that do not guarantee the Corporate Revolving Facility. The Corporate Revolving Facility also requires compliance with financial covenants that include a minimum cash interest coverage ratio and a maximum net leverage ratio. | ||||||||||||||||
CDHI | ||||||||||||||||
We have a $300 million letter of credit facility related to CDHI. During the first quarter of 2014, we amended our CDHI letter of credit facility to lower our fees and extend the maturity to January 2, 2018. | ||||||||||||||||
Fair Value of Debt | ||||||||||||||||
We record our debt instruments based on contractual terms, net of any applicable premium or discount. We did not elect to apply the alternative U.S. GAAP provisions of the fair value option for recording financial assets and financial liabilities. The following table details the fair values and carrying values of our debt instruments at December 31, 2014 and 2013 (in millions): | ||||||||||||||||
2014 | 2013 | |||||||||||||||
Fair Value | Carrying | Fair Value | Carrying | |||||||||||||
Value | Value | |||||||||||||||
First Lien Notes | $ | 2,247 | $ | 2,075 | $ | 5,317 | $ | 4,989 | ||||||||
Senior Unsecured Notes | 2,832 | 2,800 | — | — | ||||||||||||
First Lien Term Loans | 2,769 | 2,799 | 2,845 | 2,828 | ||||||||||||
Project financing, notes payable and other(1) | 1,734 | 1,688 | 1,772 | 1,766 | ||||||||||||
CCFC Term Loans | 1,540 | 1,596 | 1,179 | 1,191 | ||||||||||||
Total | $ | 11,122 | $ | 10,958 | $ | 11,113 | $ | 10,774 | ||||||||
____________ | ||||||||||||||||
-1 | Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP. | |||||||||||||||
We measure the fair value of our First Lien Notes, Senior Unsecured Notes, First Lien Term Loans and CCFC Term Loans using market information, including quoted market prices or dealer quotes for the identical liability when traded as an asset (categorized as level 2). We measure the fair value of our project financing, notes payable and other debt instruments using discounted cash flow analyses based on our current borrowing rates for similar types of borrowing arrangements (categorized as level 3). We do not have any debt instruments with fair value measurements categorized as level 1 within the fair value hierarchy. |
Assets_and_Liabilities_with_Re
Assets and Liabilities with Recurring Fair Value Measurements | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||
Assets and Liabilities with Recurring Fair Value Measurements | Assets and Liabilities with Recurring Fair Value Measurements | |||||||||||||||
Cash Equivalents — Highly liquid investments which meet the definition of cash equivalents, primarily investments in money market accounts, are included in both our cash and cash equivalents and our restricted cash on our Consolidated Balance Sheets. Certain of our money market accounts invest in U.S. Treasury securities or other obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. Our cash equivalents are classified within level 1 of the fair value hierarchy. | ||||||||||||||||
Margin Deposits and Margin Deposits Posted with Us by Our Counterparties — Margin deposits and margin deposits posted with us by our counterparties represent cash collateral paid between our counterparties and us to support our commodity contracts. Our margin deposits and margin deposits posted with us by our counterparties are generally cash and cash equivalents and are classified within level 1 of the fair value hierarchy. | ||||||||||||||||
Derivatives — The primary factors affecting the fair value of our derivative instruments at any point in time are the volume of open derivative positions (MMBtu, MWh and $ notional amounts); changing commodity market prices, primarily for power and natural gas; our credit standing and that of our counterparties for energy commodity derivatives; and prevailing interest rates for our interest rate swaps. Prices for power and natural gas and interest rates are volatile, which can result in material changes in the fair value measurements reported in our financial statements in the future. | ||||||||||||||||
We utilize market data, such as pricing services and broker quotes, and assumptions that we believe market participants would use in pricing our assets or liabilities including assumptions about the risks inherent to the inputs in the valuation technique. These inputs can be either readily observable, market corroborated or generally unobservable. The market data obtained from broker pricing services is evaluated to determine the nature of the quotes obtained and, where accepted as a reliable quote, used to validate our assessment of fair value. We use other qualitative assessments to determine the level of activity in any given market. We primarily apply the market approach and income approach for recurring fair value measurements and utilize what we believe to be the best available information. We utilize valuation techniques that seek to maximize the use of observable inputs and minimize the use of unobservable inputs. We classify fair value balances based on the observability of those inputs. | ||||||||||||||||
The fair value of our derivatives includes consideration of our credit standing, the credit standing of our counterparties and the impact of credit enhancements, if any. We have also recorded credit reserves in the determination of fair value based on our expectation of how market participants would determine fair value. Such valuation adjustments are generally based on market evidence, if available, or our best estimate. | ||||||||||||||||
Our level 1 fair value derivative instruments primarily consist of power and natural gas swaps, futures and options traded on the NYMEX or Intercontinental Exchange. | ||||||||||||||||
Our level 2 fair value derivative instruments primarily consist of interest rate swaps and OTC power and natural gas forwards for which market-based pricing inputs are observable. Generally, we obtain our level 2 pricing inputs from market sources such as the Intercontinental Exchange and Bloomberg. To the extent we obtain prices from brokers in the marketplace, we have procedures in place to ensure that prices represent executable prices for market participants. In certain instances, our level 2 derivative instruments may utilize models to measure fair value. These models are industry-standard models that incorporate various assumptions, including quoted interest rates, correlation, volatility, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace throughout the full term of the instrument, can be derived from observable data or are supported by observable levels at which transactions are executed in the marketplace. | ||||||||||||||||
Our level 3 fair value derivative instruments may consist of OTC power and natural gas forwards and options where pricing inputs are unobservable, as well as other complex and structured transactions. Complex or structured transactions are tailored to our or our customers’ needs and can introduce the need for internally-developed model inputs which might not be observable in or corroborated by the market. When such inputs have a significant impact on the measurement of fair value, the instrument is categorized in level 3. Our valuation models may incorporate historical correlation information and extrapolate available broker and other information to future periods. OTC options are valued using industry-standard models, including the Black-Scholes option-pricing model. At each balance sheet date, we perform an analysis of all instruments subject to fair value measurement and include in level 3 all of those whose fair value is based on significant unobservable inputs. | ||||||||||||||||
Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect our estimate of the fair value of our assets and liabilities and their placement within the fair value hierarchy levels. The following tables present our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013, by level within the fair value hierarchy: | ||||||||||||||||
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 896 | $ | — | $ | — | $ | 896 | ||||||||
Margin deposits | 96 | — | — | 96 | ||||||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 2,134 | — | — | 2,134 | ||||||||||||
Commodity forward contracts(2) | — | 195 | 164 | 359 | ||||||||||||
Interest rate swaps | — | 4 | — | 4 | ||||||||||||
Total assets | $ | 3,126 | $ | 199 | $ | 164 | $ | 3,489 | ||||||||
Liabilities: | ||||||||||||||||
Margin deposits posted with us by our counterparties | $ | 47 | $ | — | $ | — | $ | 47 | ||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,870 | — | — | 1,870 | ||||||||||||
Commodity forward contracts(2) | — | 163 | 79 | 242 | ||||||||||||
Interest rate swaps | — | 114 | — | 114 | ||||||||||||
Total liabilities | $ | 1,917 | $ | 277 | $ | 79 | $ | 2,273 | ||||||||
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 1,134 | $ | — | $ | — | $ | 1,134 | ||||||||
Margin deposits | 261 | — | — | 261 | ||||||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 434 | — | — | 434 | ||||||||||||
Commodity forward contracts(2) | — | 75 | 32 | 107 | ||||||||||||
Interest rate swaps | — | 9 | — | 9 | ||||||||||||
Total assets | $ | 1,829 | $ | 84 | $ | 32 | $ | 1,945 | ||||||||
Liabilities: | ||||||||||||||||
Margin deposits posted with us by our counterparties | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 495 | — | — | 495 | ||||||||||||
Commodity forward contracts(2) | — | 52 | 18 | 70 | ||||||||||||
Interest rate swaps | — | 129 | — | 129 | ||||||||||||
Total liabilities | $ | 500 | $ | 181 | $ | 18 | $ | 699 | ||||||||
___________ | ||||||||||||||||
-1 | As of December 31, 2014 and 2013, we had cash equivalents of $679 million and $889 million included in cash and cash equivalents and $217 million and $245 million included in restricted cash, respectively. | |||||||||||||||
-2 | Includes OTC swaps and options. | |||||||||||||||
At December 31, 2014 and 2013, the derivative instruments classified as level 3 primarily included commodity contracts, which are classified as level 3 because the contract terms relate to a delivery location or tenor for which observable market rate information is not available. The fair value of the net derivative position classified as level 3 is predominantly driven by market commodity prices; however, given the nature of our net derivative position, we do not believe that a significant change in market commodity prices would have a material impact on our level 3 net fair value. The following table presents quantitative information for the unobservable inputs used in our most significant level 3 fair value measurements at December 31, 2014 and 2013: | ||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||||||||
(Liability) | Valuation Technique | Input | Range | |||||||||||||
(in millions) | ||||||||||||||||
Power Contracts | $ | 74 | Discounted cash flow | Market price (per MWh) | $14.00 — $122.79/MWh | |||||||||||
Natural Gas Contracts | $ | 5 | Discounted cash flow | Market price (per MMBtu) | $1.00 — $10.86/MMBtu | |||||||||||
Power Congestion Products | $ | 9 | Discounted cash flow | Market price (per MWh) | $(19.56) — $19.56/MWh | |||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||||||||
(Liability) | Valuation Technique | Input | Range | |||||||||||||
(in millions) | ||||||||||||||||
Power Contracts | $ | 7 | Discounted cash flow | Market price (per MWh) | $28.92 — $53.15/MWh | |||||||||||
Power Congestion Products | $ | 7 | Discounted cash flow | Market price (per MWh) | $(8.79) — $11.53/MWh | |||||||||||
The following table sets forth a reconciliation of changes in the fair value of our net derivative assets (liabilities) classified as level 3 in the fair value hierarchy for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Balance, beginning of period | $ | 14 | $ | 16 | $ | 17 | ||||||||||
Realized and mark-to-market gains: | ||||||||||||||||
Included in net income: | ||||||||||||||||
Included in operating revenues(1) | 70 | 5 | 8 | |||||||||||||
Included in fuel and purchased energy expense(2) | 5 | — | — | |||||||||||||
Purchases, issuances and settlements: | ||||||||||||||||
Purchases | 6 | 6 | 3 | |||||||||||||
Issuances | — | (2 | ) | (1 | ) | |||||||||||
Settlements | (10 | ) | (11 | ) | (11 | ) | ||||||||||
Transfers in and/or out of level 3(3): | ||||||||||||||||
Transfers into level 3(4) | — | — | — | |||||||||||||
Transfers out of level 3(5) | — | — | — | |||||||||||||
Balance, end of period | $ | 85 | $ | 14 | $ | 16 | ||||||||||
Change in unrealized gains relating to instruments still held at end of period | $ | 75 | $ | 5 | $ | 8 | ||||||||||
___________ | ||||||||||||||||
-1 | For power contracts and other power-related products, included on our Consolidated Statements of Operations. | |||||||||||||||
-2 | For natural gas contracts, swaps and options, included on our Consolidated Statements of Operations. | |||||||||||||||
-3 | We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
-4 | There were no transfers out of level 2 into level 3 for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
-5 | There were no transfers out of level 3 for the years ended December 31, 2014, 2013 and 2012. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||||||||||||||
Derivative Instruments | Derivative Instruments | |||||||||||||||||||||||||
Types of Derivative Instruments and Volumetric Information | ||||||||||||||||||||||||||
Commodity Instruments — We are exposed to changes in prices for the purchase and sale of power, natural gas, environmental products and other energy commodities. We use derivatives, which include physical commodity contracts and financial commodity instruments such as OTC and exchange traded swaps, futures, options, forward agreements and instruments that settle on the power price to natural gas price relationships (Heat Rate swaps and options) or instruments that settle on power price relationships between delivery points for the purchase and sale of power and natural gas to attempt to maximize the risk-adjusted returns by economically hedging a portion of the commodity price risk associated with our assets. By entering into these transactions, we are able to economically hedge a portion of our Spark Spread at estimated generation and prevailing price levels. | ||||||||||||||||||||||||||
We also engage in limited trading activities, as authorized by our Board of Directors and monitored by our Chief Risk Officer and Risk Management Committee of senior management, related to our commodity derivative portfolio which exposes us to certain market risks that are segregated from the market risks of our underlying asset portfolio. These transactions are executed primarily for the purpose of providing improved price and price volatility discovery, greater market access, and profiting from our market knowledge, all of which benefit our asset hedging activities. Our trading gains and losses were not material for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||
Interest Rate Swaps — A portion of our debt is indexed to base rates, primarily LIBOR. We have historically used interest rate swaps to adjust the mix between fixed and floating rate debt to hedge our interest rate risk for potential adverse changes in interest rates. As of December 31, 2014, the maximum length of time over which we were hedging using interest rate derivative instruments designated as cash flow hedges was 9 years. | ||||||||||||||||||||||||||
As of December 31, 2014 and 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 | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Power (MWh) | (62 | ) | (29 | ) | ||||||||||||||||||||||
Natural gas (MMBtu) | 291 | 448 | ||||||||||||||||||||||||
Interest rate swaps | $ | 1,431 | $ | 1,527 | ||||||||||||||||||||||
Certain of our derivative instruments contain credit risk-related contingent provisions that require us to maintain collateral balances consistent with our credit ratings. If our credit rating were to be downgraded, it could require us to post additional collateral or could potentially allow our counterparty to request immediate, full settlement on certain derivative instruments in liability positions. Currently, we do not believe that it is probable that any additional collateral posted as a result of a one credit notch downgrade from its current level would be material. The aggregate fair value of our derivative liabilities with credit risk-related contingent provisions as of December 31, 2014, was $19 million for which we have posted collateral of $11 million by posting margin deposits or granting additional first priority liens on the assets currently subject to first priority liens under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility. However, if our credit rating were downgraded by one notch from its current level, we estimate that additional collateral of $5 million would be required and that no counterparty could request immediate, full settlement. | ||||||||||||||||||||||||||
Accounting for Derivative Instruments | ||||||||||||||||||||||||||
We recognize all derivative instruments that qualify for derivative accounting treatment as either assets or liabilities and measure those instruments at fair value unless they qualify for, and we elect, the normal purchase normal sale exemption. For transactions in which we elect the normal purchase normal sale exemption, gains and losses are not reflected on our Consolidated Statements of Operations until the period of delivery. Revenues and expenses derived from instruments that qualified for hedge accounting or represent an economic hedge are recorded in the same financial statement line item as the item being hedged. Hedge accounting requires us to formally document, designate and assess the effectiveness of transactions that receive hedge accounting. We present the cash flows from our derivatives in the same category as the item being hedged (or economically hedged) within operating activities or investing activities (in the case of settlements for our interest rate swaps formerly hedging our First Lien Credit Facility term loans) on our Consolidated Statements of Cash Flows unless they contain an other-than-insignificant financing element in which case their cash flows are classified within financing activities. | ||||||||||||||||||||||||||
Cash Flow Hedges — We report the effective portion of the mark-to-market gain or loss on a derivative instrument designated and qualifying as a cash flow hedging instrument as a component of OCI and reclassify such gains and losses into earnings in the same period during which the hedged forecasted transaction affects earnings. Gains and losses due to ineffectiveness on interest rate hedging instruments are recognized currently in earnings as a component of interest expense (for interest rate swaps except as discussed below). If it is determined that the forecasted transaction is no longer probable of occurring, then hedge accounting will be discontinued prospectively and future changes in fair value are recorded in earnings. If the hedging instrument is terminated or de-designated prior to the occurrence of the hedged forecasted transaction, the net accumulated gain or loss associated with the changes in fair value of the hedge instrument remains deferred in AOCI until such time as the forecasted transaction impacts earnings or until it is determined that the forecasted transaction is probable of not occurring. | ||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments — We enter into power, natural gas, interest rate and environmental product transactions that primarily act as economic hedges to our asset and interest rate portfolio, but either do not qualify as hedges under the hedge accounting guidelines or qualify under the hedge accounting guidelines and the hedge accounting designation has not been elected. Changes in fair value of commodity derivatives not designated as hedging instruments are recognized currently in earnings and are separately stated on our Consolidated Statements of Operations in mark-to-market gain/loss as a component of operating revenues (for power and Heat Rate swaps and options) and fuel and purchased energy expense (for natural gas contracts, environmental product contracts, swaps and options). Changes in fair value of interest rate derivatives not designated as hedging instruments are recognized currently in earnings as interest expense (for interest rate swaps except as discussed below). | ||||||||||||||||||||||||||
Interest Rate Swaps Formerly Hedging our First Lien Credit Facility — On March 26, 2012, we terminated the legacy interest rate swaps formerly hedging our First Lien Credit Facility and recorded the fair value of the swaps totaling approximately $156 million. Approximately $14 million of the settlement amount was recorded as a component of loss on interest rate derivatives on our Consolidated Statement of Operations for the year ended December 31, 2012, and approximately $142 million reflected the realization of losses recorded in prior periods. | ||||||||||||||||||||||||||
Derivatives Included on Our Consolidated Balance Sheet | ||||||||||||||||||||||||||
The following tables present the fair values of our derivative instruments recorded on our Consolidated Balance Sheets by location and hedge type at December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Commodity | Interest Rate | Total | ||||||||||||||||||||||||
Instruments | Swaps | Derivative | ||||||||||||||||||||||||
Instruments | ||||||||||||||||||||||||||
Balance Sheet Presentation | ||||||||||||||||||||||||||
Current derivative assets | $ | 2,058 | $ | — | $ | 2,058 | ||||||||||||||||||||
Long-term derivative assets | 435 | 4 | 439 | |||||||||||||||||||||||
Total derivative assets | $ | 2,493 | $ | 4 | $ | 2,497 | ||||||||||||||||||||
Current derivative liabilities | $ | 1,738 | $ | 44 | $ | 1,782 | ||||||||||||||||||||
Long-term derivative liabilities | 374 | 70 | 444 | |||||||||||||||||||||||
Total derivative liabilities | $ | 2,112 | $ | 114 | $ | 2,226 | ||||||||||||||||||||
Net derivative assets (liabilities) | $ | 381 | $ | (110 | ) | $ | 271 | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Commodity | Interest Rate | Total | ||||||||||||||||||||||||
Instruments | Swaps | 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 assets (liabilities) | $ | (24 | ) | $ | (120 | ) | $ | (144 | ) | |||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
of Derivative | of Derivative | of Derivative | of Derivative | |||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | $ | 4 | $ | 112 | $ | 9 | $ | 115 | ||||||||||||||||||
Total derivatives designated as cash flow hedging instruments | $ | 4 | $ | 112 | $ | 9 | $ | 115 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Commodity instruments | $ | 2,493 | $ | 2,112 | $ | 541 | $ | 565 | ||||||||||||||||||
Interest rate swaps | — | 2 | — | 14 | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 2,493 | $ | 2,114 | $ | 541 | $ | 579 | ||||||||||||||||||
Total derivatives | $ | 2,497 | $ | 2,226 | $ | 550 | $ | 694 | ||||||||||||||||||
We elected not to offset fair value amounts recognized as derivative instruments on our Consolidated Balance Sheets that are executed with the same counterparty under master netting arrangements or other contractual netting provisions negotiated with the counterparty. Our netting arrangements include a right to set off or net together purchases and sales of similar products in the margining or settlement process. In some instances, we have also negotiated cross commodity netting rights which allow for the net presentation of activity with a given counterparty regardless of product purchased or sold. We also post cash collateral in support of our derivative instruments which may also be subject to a master netting arrangement with the same counterparty. 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 December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||
Gross Amounts Presented on our Consolidated Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 2,134 | $ | (1,865 | ) | $ | (269 | ) | $ | — | ||||||||||||||||
Commodity forward contracts | 359 | (222 | ) | — | 137 | |||||||||||||||||||||
Interest rate swaps | 4 | — | — | 4 | ||||||||||||||||||||||
Total derivative assets | $ | 2,497 | $ | (2,087 | ) | $ | (269 | ) | $ | 141 | ||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,870 | ) | $ | 1,865 | $ | 5 | $ | — | |||||||||||||||||
Commodity forward contracts | (242 | ) | 222 | 10 | (10 | ) | ||||||||||||||||||||
Interest rate swaps | (114 | ) | — | — | (114 | ) | ||||||||||||||||||||
Total derivative (liabilities) | $ | (2,226 | ) | $ | 2,087 | $ | 15 | $ | (124 | ) | ||||||||||||||||
Net derivative assets (liabilities) | $ | 271 | $ | — | $ | (254 | ) | $ | 17 | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||
Gross Amounts Presented on our Consolidated Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated 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 and natural gas and power prepayments posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 9 for a further discussion of our collateral. | |||||||||||||||||||||||||
Derivatives Included on Our Consolidated Statements of Operations | ||||||||||||||||||||||||||
Changes in the fair values of our derivative instruments (both assets and liabilities) are reflected either in cash for option premiums paid or collected, in OCI, net of tax, for the effective portion of derivative instruments which qualify for and we have elected cash flow hedge accounting treatment, or on our Consolidated Statements of Operations as a component of mark-to-market activity within our earnings. | ||||||||||||||||||||||||||
The following tables detail the components of our total activity for both the net realized gain (loss) and the net mark-to-market gain (loss) recognized from our derivative instruments in earnings and where these components were recorded on our Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Realized gain (loss)(1) | ||||||||||||||||||||||||||
Commodity derivative instruments | $ | 110 | $ | 86 | $ | 387 | ||||||||||||||||||||
Interest rate swaps | — | — | (157 | ) | ||||||||||||||||||||||
Total realized gain (loss) | $ | 110 | $ | 86 | $ | 230 | ||||||||||||||||||||
Mark-to-market gain (loss)(2) | ||||||||||||||||||||||||||
Commodity derivative instruments | $ | 342 | $ | (14 | ) | $ | (82 | ) | ||||||||||||||||||
Interest rate swaps | 11 | 2 | 154 | |||||||||||||||||||||||
Total mark-to-market gain (loss) | $ | 353 | $ | (12 | ) | $ | 72 | |||||||||||||||||||
Total activity, net | $ | 463 | $ | 74 | $ | 302 | ||||||||||||||||||||
___________ | ||||||||||||||||||||||||||
-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 mark-to-market 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. | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Realized and mark-to-market gain (loss) | ||||||||||||||||||||||||||
Derivatives contracts included in operating revenues | $ | 384 | $ | (119 | ) | $ | 187 | |||||||||||||||||||
Derivatives contracts included in fuel and purchased energy expense | 68 | 191 | 118 | |||||||||||||||||||||||
Interest rate swaps included in interest expense | 11 | 2 | 11 | |||||||||||||||||||||||
Loss on interest rate derivatives | — | — | (14 | ) | ||||||||||||||||||||||
Total activity, net | $ | 463 | $ | 74 | $ | 302 | ||||||||||||||||||||
Derivatives Included in OCI and AOCI | ||||||||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012 (in millions): | ||||||||||||||||||||||||||
Gains (Loss) Recognized in | Gain (Loss) Reclassified from | |||||||||||||||||||||||||
OCI (Effective Portion)(3) | AOCI into Income (Effective | |||||||||||||||||||||||||
Portion)(4) | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Affected Line Item on the Consolidated Statements of Operations | ||||||||||||||||||||
Commodity derivative instruments(1): | ||||||||||||||||||||||||||
Power derivative instruments | $ | — | $ | — | $ | (97 | ) | $ | — | $ | — | $ | 118 | Commodity revenue | ||||||||||||
Natural gas derivative instruments | — | — | 59 | — | — | (66 | ) | Commodity expense | ||||||||||||||||||
Interest rate swaps(2) | (2 | ) | 86 | (43 | ) | (46 | ) | (5) | (51 | ) | (5) | (32 | ) | Interest expense | ||||||||||||
Total(3) | $ | (2 | ) | $ | 86 | $ | (81 | ) | $ | (46 | ) | $ | (51 | ) | $ | 20 | ||||||||||
____________ | ||||||||||||||||||||||||||
-1 | There were no commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2014 and 2013. We recorded a gain on hedge ineffectiveness of $2 million related to our commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2012. | |||||||||||||||||||||||||
-2 | We did not record any gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
-3 | We recorded income tax expense of nil and $3 million for the years ended December 31, 2014 and 2013, respectively, and an income tax benefit of $11 million for the year ended December 31, 2012, in AOCI related to our cash flow hedging activities. | |||||||||||||||||||||||||
-4 | Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $149 million, $148 million and $222 million at December 31, 2014, 2013 and 2012, respectively. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $12 million, $11 million and $20 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-5 | Includes a loss of $10 million and $12 million that was reclassified from AOCI to interest expense for the years ended December 31, 2014 and 2013, respectively, where the hedged transactions are no longer expected to occur. | |||||||||||||||||||||||||
We estimate that pre-tax net losses of $46 million would be reclassified from AOCI into interest expense during the next 12 months as the hedged transactions settle; however, the actual amounts that will be reclassified will likely vary based on changes in interest rates. Therefore, we are unable to predict what the actual reclassification from AOCI into earnings (positive or negative) will be for the next 12 months. |
Use_of_Collateral
Use of Collateral | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Use of Collateral [Abstract] | ||||||||
Use of Collateral | Use of Collateral | |||||||
We use margin deposits, prepayments and letters of credit as credit support with and from our counterparties for commodity procurement and risk management activities. In addition, we have granted additional first priority liens on the assets currently subject to first priority liens under various debt agreements as collateral under certain of our power and natural gas agreements and certain of our interest rate swap agreements in order to reduce the cash collateral and letters of credit that we would otherwise be required to provide to the counterparties under such agreements. The counterparties under such agreements share the benefits of the collateral subject to such first priority liens pro rata with the lenders under our various debt agreements. | ||||||||
The table below summarizes the balances outstanding under margin deposits, natural gas and power prepayments, and exposure under letters of credit and first priority liens for commodity procurement and risk management activities as of December 31, 2014 and 2013 (in millions): | ||||||||
2014 | 2013 | |||||||
Margin deposits(1) | $ | 96 | $ | 261 | ||||
Natural gas and power prepayments | 22 | 28 | ||||||
Total margin deposits and natural gas and power prepayments with our counterparties(2) | $ | 118 | $ | 289 | ||||
Letters of credit issued | $ | 450 | $ | 488 | ||||
First priority liens under power and natural gas agreements | 48 | 31 | ||||||
First priority liens under interest rate swap agreements | 116 | 132 | ||||||
Total letters of credit and first priority liens with our counterparties | $ | 614 | $ | 651 | ||||
Margin deposits posted with us by our counterparties(1)(3) | $ | 47 | $ | 5 | ||||
Letters of credit posted with us by our counterparties | 61 | 2 | ||||||
Total margin deposits and letters of credit posted with us by our counterparties | $ | 108 | $ | 7 | ||||
___________ | ||||||||
-1 | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 8 for further discussion of our derivative instruments subject to master netting arrangements. | |||||||
-2 | At December 31, 2014 and 2013, $109 million and $272 million, respectively, were included in margin deposits and other prepaid expense and $9 million and $17 million, respectively, were included in other assets on our Consolidated Balance Sheets. | |||||||
-3 | Included in other current liabilities on our Consolidated Balance Sheets. | |||||||
Future collateral requirements for cash, first priority liens and letters of credit may increase or decrease based on the extent of our involvement in hedging and optimization contracts, movements in commodity prices, and also based on our credit ratings and general perception of creditworthiness in our market. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income Taxes | Income Taxes | |||||||||||
Income Tax Expense | ||||||||||||
The jurisdictional components of income from continuing operations before income tax expense, attributable to Calpine, for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 942 | $ | (13 | ) | $ | 194 | |||||
International | 26 | 29 | 24 | |||||||||
Total | $ | 968 | $ | 16 | $ | 218 | ||||||
The components of income tax expense from continuing operations for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (1 | ) | $ | (2 | ) | $ | (12 | ) | |||
State | 19 | (9 | ) | 16 | ||||||||
Foreign | (1 | ) | (1 | ) | 14 | |||||||
Total current | 17 | (12 | ) | 18 | ||||||||
Deferred: | ||||||||||||
Federal | — | 1 | 11 | |||||||||
State | (1 | ) | 4 | (5 | ) | |||||||
Foreign | 6 | 9 | (5 | ) | ||||||||
Total deferred | 5 | 14 | 1 | |||||||||
Total income tax expense | $ | 22 | $ | 2 | $ | 19 | ||||||
For the years ended December 31, 2014, 2013 and 2012, our income tax rates did not bear a customary relationship to statutory income tax rates, primarily as a result of the impact of our valuation allowance, state income taxes and changes in unrecognized tax benefits. A reconciliation of the federal statutory rate of 35% to our effective rate from continuing operations for the years ended December 31, 2014, 2013 and 2012, is as follows: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax expense (benefit) rate | 35 | % | 35 | % | 35 | % | ||||||
State tax expense (benefit), net of federal benefit | 1.9 | (69.8 | ) | 3.2 | ||||||||
Depletion in excess of basis | (0.3 | ) | (14.7 | ) | (0.2 | ) | ||||||
Federal refunds | — | — | (4.7 | ) | ||||||||
Valuation allowances against future tax benefits | (35.8 | ) | 89.8 | (30.3 | ) | |||||||
Valuation allowance related to foreign taxes | — | (19.8 | ) | (8.2 | ) | |||||||
Distributions from foreign affiliates and foreign taxes | 1.2 | (10.8 | ) | 3.7 | ||||||||
Intraperiod allocation | — | 4.5 | 4.6 | |||||||||
Change in unrecognized tax benefits | (0.4 | ) | (30.1 | ) | 5.1 | |||||||
Disallowed compensation | 0.1 | 11.7 | 0.4 | |||||||||
Stock-based compensation | 0.1 | 8.6 | 0.2 | |||||||||
Lobbying contributions | 0.1 | 3.3 | 0.3 | |||||||||
Other differences | 0.4 | 4.8 | (0.4 | ) | ||||||||
Effective income tax expense rate | 2.3 | % | 12.5 | % | 8.7 | % | ||||||
Deferred Tax Assets and Liabilities | ||||||||||||
The components of deferred income taxes as of December 31, 2014 and 2013, are as follows (in millions): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
NOL and credit carryforwards | $ | 2,873 | $ | 3,120 | ||||||||
Taxes related to risk management activities and derivatives | 61 | 60 | ||||||||||
Reorganization items and impairments | 216 | 262 | ||||||||||
Foreign capital losses | 16 | 18 | ||||||||||
Other differences | — | 104 | ||||||||||
Deferred tax assets before valuation allowance | 3,166 | 3,564 | ||||||||||
Valuation allowance | (1,836 | ) | (2,246 | ) | ||||||||
Total deferred tax assets | 1,330 | 1,318 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | (1,305 | ) | (1,310 | ) | ||||||||
Other differences | (21 | ) | — | |||||||||
Total deferred tax liabilities | (1,326 | ) | (1,310 | ) | ||||||||
Net deferred tax asset | 4 | 8 | ||||||||||
Less: Current portion deferred tax asset (liability) | (14 | ) | 12 | |||||||||
Less: Non-current deferred tax asset | 19 | 7 | ||||||||||
Deferred income tax liability, non-current | $ | (1 | ) | $ | (11 | ) | ||||||
Intraperiod Tax Allocation — In accordance with U.S. GAAP, intraperiod tax allocation provisions require allocation of a tax expense (benefit) to continuing operations due to current OCI gains (losses) with a partial offsetting amount recognized in OCI. The following table details the effects of our intraperiod tax allocations for the years ended December 31, 2014, 2013 and 2012 (in millions). | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Intraperiod tax allocation expense included in continuing operations | $ | — | $ | 1 | $ | 9 | ||||||
Intraperiod tax allocation benefit included in OCI | $ | — | $ | (1 | ) | $ | (9 | ) | ||||
NOL Carryforwards — As of December 31, 2014, our NOL carryforwards consisted primarily of federal NOL carryforwards of approximately $6.9 billion, which expire between 2023 and 2033, and NOL carryforwards in 22 states and the District of Columbia totaling approximately $4.0 billion, which expire between 2015 and 2034, substantially all of which are offset with a full valuation allowance. We also have approximately $800 million in foreign NOLs, which expire between 2026 and 2034, substantially all of which are offset with a full valuation allowance. The NOL carryforwards available are subject to limitations on their annual usage. Under federal and applicable state income tax laws, a corporation is generally permitted to deduct from taxable income in any year NOLs carried forward from prior years subject to certain time limitations as prescribed by the taxing authorities. | ||||||||||||
Deferred tax assets relating to tax benefits of employee stock-based compensation do not reflect stock options exercised and restricted stock that vested between 2011 and 2014. Some stock option exercises and restricted stock vestings result in tax deductions in excess of previously recorded deferred tax benefits based on the equity award value at the grant date. Although these additional tax benefits or “windfalls” are reflected in NOL carryforwards pursuant to accounting for stock-based compensation under U.S. GAAP, the additional tax benefit associated with the windfall is not recognized until the deduction reduces taxes payable, which will not occur for Calpine until a future period. Accordingly, since the tax benefit does not reduce our current taxes payable for the years ended December 31, 2014 and 2013 due to NOL carryforwards, these windfall tax benefits are not reflected in our NOLs in deferred tax assets at December 31, 2014 and 2013. The cumulative windfall balance included in federal and state NOL carryforwards, but not reflected in gross deferred tax assets as of December 31, 2014 and 2013 were $37 million and $25 million for federal, respectively, and $21 million and $16 million for state, respectively. | ||||||||||||
Income Tax Audits — We remain subject to periodic audits and reviews by taxing authorities; however, we do not expect these audits will have a material effect on our tax provision. Any NOLs we claim in future years to reduce taxable income could be subject to IRS examination regardless of when the NOLs occurred. Any adjustment of state or federal returns would likely result in a reduction of deferred tax assets rather than a cash payment of income taxes in tax jurisdictions where we have NOLs. | ||||||||||||
Canadian Tax Audits — In January 2013, we received an adjusted reassessment on one of two transfer pricing issues that we were disputing with the Canadian Revenue Authority (“CRA”). We proposed a settlement of the adjusted reassessment with the CRA and the CRA accepted our proposal. The adjustment to our transfer pricing increased taxable income and was offset by existing NOLs to which a valuation allowance had been applied and did not have a material impact on our Consolidated Financial Statements. | ||||||||||||
On January 28, 2014, we received a letter from the CRA which informed us that they did not agree with our transfer price on the second issue and proposed an increase to taxable income for tax years 2006 and 2007. On June 6, 2014, we proposed a settlement, and on June 14, 2014, the CRA accepted our proposal. The adjustment to our transfer price increased taxable income for one of our Canadian affiliates and was offset by existing NOLs to which a valuation allowance had been applied. As part of the settlement, we agreed to pay some interest and withholding taxes which did not have a material impact on our Consolidated Financial Statements. | ||||||||||||
Valuation Allowance — U.S. GAAP requires that we consider all available evidence, both positive and negative, and tax planning strategies to determine whether, based on the weight of that evidence, a valuation allowance is needed to reduce the value of deferred tax assets. Future realization of the tax benefit of an existing deductible temporary difference or carryforward ultimately depends on the existence of sufficient taxable income of the appropriate character within the carryback or carryforward periods available under the tax law. Due to our history of losses, we were unable to assume future profits; however, we are able to consider available tax planning strategies. | ||||||||||||
As of December 31, 2014, we have provided a valuation allowance of approximately $1.8 billion on certain federal, state and foreign tax jurisdiction deferred tax assets to reduce the amount of these assets to the extent necessary to result in an amount that is more likely than not to be realized. The net change in our valuation allowance was a decrease of $410 million for the year ended December 31, 2014 and $114 million for the year ended December 31, 2012 and an increase of $24 million for the year ended December 31, 2013, respectively; all primarily related to income generated in these periods. | ||||||||||||
As a result of a recent favorable response to an IRS letter ruling request, during the first quarter of 2014, we made an election which increased the tax basis of certain assets resulting in an increase to our net state deferred tax assets by approximately $18 million with a corresponding decrease in our state income tax expense. | ||||||||||||
Tangible Property Regulations — On September 13, 2013, the United States Treasury Department and the IRS issued final regulations providing comprehensive guidance on the tax treatment of costs incurred to acquire, repair or improve tangible property. The final regulations are generally effective for taxable years beginning on or after January 1, 2014. On January 24, 2014, the IRS issued procedural guidance pursuant to which taxpayers will be granted automatic consent to change their tax accounting methods to comply with the final regulations. These regulations did not have a material impact on our financial condition, results of operations or cash flows. | ||||||||||||
Unrecognized Tax Benefits | ||||||||||||
At December 31, 2014, we had unrecognized tax benefits of $56 million. If recognized, $13 million of our unrecognized tax benefits could impact the annual effective tax rate and $43 million, related to deferred tax assets, could be offset against the recorded valuation allowance resulting in no impact to our effective tax rate. We had accrued interest and penalties of $11 million and $13 million for income tax matters at December 31, 2014 and 2013, respectively. We recognize interest and penalties related to unrecognized tax benefits in income tax expense on our Consolidated Statements of Operations and recorded $(2) million, $(11) million and $4 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
A reconciliation of the beginning and ending amounts of our unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012, is as follows (in millions): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | (68 | ) | $ | (92 | ) | $ | (74 | ) | |||
Increases related to prior year tax positions | (4 | ) | (7 | ) | (19 | ) | ||||||
Decreases related to prior year tax positions | 8 | 8 | 1 | |||||||||
Decreases related to settlements | 8 | 10 | — | |||||||||
Decrease related to lapse of statute of limitations | — | 13 | — | |||||||||
Balance, end of period | $ | (56 | ) | $ | (68 | ) | $ | (92 | ) | |||
U.S. Federal Income Tax Refund | ||||||||||||
In 2004, we deducted a portion of our foreign dividends as allowed by the IRC when we filed our federal income tax return. Upon further review and analysis, we determined our foreign dividends should have been offset against our current 2004 operating loss. In 2009, we filed an amended federal income tax return that reflected this change and would result in a refund of approximately $10 million. This amended federal return has been under audit by the IRS since it was filed. In October 2012, the IRS approved our amended tax return, and we received a refund of approximately $13 million which included approximately $3 million in accrued interest. The benefit of this refund is reflected in our Consolidated Financial Statements in the fourth quarter of 2012. |
Earnings_Loss_per_Share
Earnings (Loss) per Share | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings (Loss) per Share [Abstract] | |||||||||
Earnings (Loss) per Share | Earnings per Share | ||||||||
We include restricted stock units for which no future service is required as a condition to the delivery of the underlying common stock in our calculation of weighted average shares outstanding. Reconciliations of the amounts used in the basic and diluted earnings per common share computations for the years ended December 31, 2014, 2013 and 2012, are as follows (shares in thousands): | |||||||||
2014 | 2013 | 2012 | |||||||
Diluted weighted average shares calculation: | |||||||||
Weighted average shares outstanding (basic) | 404,837 | 440,666 | 467,752 | ||||||
Share-based awards | 4,523 | 4,107 | 3,591 | ||||||
Weighted average shares outstanding (diluted) | 409,360 | 444,773 | 471,343 | ||||||
We excluded the following items from diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012, because they were anti-dilutive (shares in thousands): | |||||||||
2014 | 2013 | 2012 | |||||||
Share-based awards | 2,859 | 5,062 | 10,302 | ||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||
Stock-Based Compensation | Stock-Based Compensation | ||||||||||||
Calpine Equity Incentive Plans | |||||||||||||
The Calpine Equity Incentive Plans provide for the issuance of equity awards to all non-union employees as well as the non-employee members of our Board of Directors. The equity awards may include incentive or non-qualified stock options, restricted stock, restricted stock units, stock appreciation rights, performance compensation awards and other share-based awards. The equity awards granted under the Calpine Equity Incentive Plans include both graded and cliff vesting awards which vest over periods between one and five years, contain contractual terms between approximately five and ten years and are subject to forfeiture provisions under certain circumstances, including termination of employment prior to vesting. At December 31, 2014, there were 567,000 and 40,533,000 shares of our common stock authorized for issuance to participants under the Director Plan and the Equity Plan, respectively. At December 31, 2014, 186,816 shares and 13,077,526 shares remain available for future issuance under the Director Plan and the Equity Plan, respectively. | |||||||||||||
Equity Classified Share-Based Awards | |||||||||||||
We use the Black-Scholes option-pricing model or the Monte Carlo simulation model, as appropriate, to estimate the fair value of our employee stock options on the grant date, which takes into account the exercise price and expected term of the stock option, the current price of the underlying stock and its expected volatility, expected dividends on the stock and the risk-free interest rate for the expected term of the stock option as of the grant date. For our restricted stock and restricted stock units, we use our closing stock price on the date of grant, or the last trading day preceding the grant date for restricted stock granted on non-trading days, as the fair value for measuring compensation expense. Stock-based compensation expense is recognized over the period in which the related employee services are rendered. The service period is generally presumed to begin on the grant date and end when the equity award is fully vested. We use the graded vesting attribution method to recognize fair value of the equity award over the service period. For example, the graded vesting attribution method views one three-year restricted stock grant with annual graded vesting as three separate sub-grants, each representing 33 1/3% of the total number of shares of restricted stock granted. The first sub-grant vests over one year, the second sub-grant vests over two years and the third sub-grant vests over three years. A three-year restricted stock grant with cliff vesting is viewed as one grant vesting over three years. | |||||||||||||
Stock-based compensation expense recognized for our equity classified share-based awards was $31 million, $34 million and $25 million for the years ended December 31, 2014, 2013 and 2012, respectively. We did not record any significant tax benefits related to stock-based compensation expense in any period as we are not benefiting from a significant portion of our deferred tax assets, including deductions related to stock-based compensation expense. In addition, we did not capitalize any stock-based compensation expense as part of the cost of an asset for the years ended December 31, 2014, 2013 and 2012. At December 31, 2014, there was unrecognized compensation cost of $26 million related to restricted stock which is expected to be recognized over a weighted average period of 1.1 years. We issue new shares from our share reserves set aside for the Calpine Equity Incentive Plans and employment inducement options when stock options are exercised and for other share-based awards. | |||||||||||||
A summary of all of our non-qualified stock option activity for the Calpine Equity Incentive Plans for the year ended December 31, 2014, is as follows: | |||||||||||||
Number of | Weighted Average | Weighted | Aggregate | ||||||||||
Shares | Exercise Price | Average | Intrinsic Value | ||||||||||
Remaining | (in millions) | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding — December 31, 2013 | 14,114,289 | $ | 18.25 | 3.1 | $ | 36 | |||||||
Granted | — | $ | — | ||||||||||
Exercised | 2,951,947 | $ | 16.2 | ||||||||||
Forfeited | 69,122 | $ | 15.81 | ||||||||||
Expired | 6,900 | $ | 17.69 | ||||||||||
Outstanding — December 31, 2014 | 11,086,320 | $ | 18.82 | 2 | $ | 43 | |||||||
Exercisable — December 31, 2014 | 10,336,806 | $ | 19.07 | 1.7 | $ | 38 | |||||||
Vested and expected to vest – December 31, 2014 | 11,076,617 | $ | 18.82 | 2 | $ | 43 | |||||||
The total intrinsic value of our employee stock options exercised was $21 million, $22 million and $1 million for the years ended December 31, 2014, 2013 and 2012, respectively. The total cash proceeds received from our employee stock options exercised was $20 million, $20 million and $5 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
There were no stock options granted during the year ended December 31, 2014. The fair value of options granted during the years ended December 31, 2013 and 2012, was determined on the grant date using the Black-Scholes option-pricing model. Certain assumptions were used in order to estimate fair value for options as noted in the following table. | |||||||||||||
2013 | 2012 | ||||||||||||
Expected term (in years)(1) | 6.5 | 6.5 | |||||||||||
Risk-free interest rate(2) | 1.4 | % | 1.2 – 1.6 | % | |||||||||
Expected volatility(3) | 25.6 | % | 27.0 – 30.5 | % | |||||||||
Dividend yield(4) | — | — | |||||||||||
Weighted average grant-date fair value (per option) | $ | 5.31 | $ | 5.18 | |||||||||
___________ | |||||||||||||
-1 | Expected term calculated using the simplified method prescribed by the SEC due to the lack of sufficient historical exercise data to provide a reasonable basis to estimate the expected term. | ||||||||||||
-2 | Zero Coupon U.S. Treasury rate or equivalent based on expected term. | ||||||||||||
-3 | Volatility calculated using the implied volatility of our exchange traded stock options. | ||||||||||||
-4 | We have never paid cash dividends on our common stock, and we do not anticipate any cash dividend payments on our common stock in the near future. | ||||||||||||
A summary of our restricted stock and restricted stock unit activity for the Calpine Equity Incentive Plans for the year ended December 31, 2014, is as follows: | |||||||||||||
Number of | Weighted | ||||||||||||
Restricted | Average | ||||||||||||
Stock Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested — December 31, 2013 | 4,431,841 | $ | 16.45 | ||||||||||
Granted | 1,885,049 | $ | 19.34 | ||||||||||
Forfeited | 430,059 | $ | 17.67 | ||||||||||
Vested | 1,684,963 | $ | 15.51 | ||||||||||
Nonvested — December 31, 2014 | 4,201,868 | $ | 18.01 | ||||||||||
The total fair value of our restricted stock and restricted stock units that vested during the years ended December 31, 2014, 2013 and 2012, was approximately $35 million, $25 million and $20 million, respectively. | |||||||||||||
Liability Classified Share-Based Awards | |||||||||||||
During the first quarter of 2014, our Board of Directors approved the award of performance share units to certain senior management employees. These performance share units will be settled in cash with payouts based on the relative performance of Calpine’s TSR over the three-year performance period of January 1, 2014 through December 31, 2016 compared with the TSR performance of the S&P 500 companies over the same period. The performance share units vest on the last day of the performance period and will be settled in cash; thus, these awards are liability classified and are measured at fair value using a Monte Carlo simulation model at each reporting date until settlement. Stock-based compensation expense recognized related to our liability classified share-based awards was $5 million and $2 million for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||
A summary of our performance share unit activity for the year ended December 31, 2014, is as follows: | |||||||||||||
Number of | Weighted | ||||||||||||
Performance Share Units | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested — December 31, 2013 | 449,798 | $ | 21.25 | ||||||||||
Granted | 461,393 | $ | 22.56 | ||||||||||
Forfeited | 28,400 | $ | 21.87 | ||||||||||
Vested(1) | 15,312 | $ | 21.25 | ||||||||||
Nonvested — December 31, 2014 | 867,479 | $ | 21.93 | ||||||||||
___________ | |||||||||||||
-1 | In accordance with the applicable performance share unit agreements, performance share units granted to employees who meet the retirement eligibility requirements stipulated in the Equity Plan are fully vested upon the later of the date on which the employee becomes eligible to retire or one-year anniversary of the grant date. |
Defined_Contribution_and_Defin
Defined Contribution and Defined Benefit Plans | 12 Months Ended |
Dec. 31, 2014 | |
Defined Contribution and Defined Benefit Plans [Abstract] | |
Defined Contribution and Defined Benefit Plans | Defined Contribution and Defined Benefit Plans |
We maintain two defined contribution savings plans that are intended to be tax exempt under Sections 401(a) and 501(a) of the IRC. Our non-union plan generally covers employees who are not covered by a collective bargaining agreement, and our union plan covers employees who are covered by a collective bargaining agreement. We recorded expenses for these plans of approximately $12 million, $11 million and $12 million for the years ended December 31, 2014, 2013 and 2012, respectively. Employer matching contributions are 100% of the first 5% of compensation a participant defers for the non-union plan. The employee deferral limit is 75% of eligible compensation under both plans. | |
We also maintain a defined benefit pension plan whereby retirement benefits are primarily a function of age attained, years of participation, years of service, vesting and level of compensation. As of December 31, 2014 and 2013, our pension assets, liabilities and related costs were not material to us. As of December 31, 2014 and 2013, there were approximately $15 million and $14 million in plan assets and approximately $24 million and $20 million in pension liabilities, respectively. Our net pension liability recorded on our Consolidated Balance Sheets as of December 31, 2014 and 2013, was approximately $9 million and $6 million, respectively. For the years ended December 31, 2014, 2013 and 2012, we recognized net periodic benefit costs of approximately $1 million, $2 million and $1 million, respectively. Our net periodic benefit cost is included in plant operating expense on our Consolidated Statements of Operations. As of December 31, 2014 and 2013, the total amount recognized in AOCI for actuarial losses related to pension obligation was approximately $5 million and $1 million, respectively. | |
In making our estimates of our pension obligation and related costs, we utilize discount rates, rates of compensation increases and rates of return on our assets that we believe are reasonable. Due to relatively small size of our pension liability (which is not considered material), significant changes in these assumptions would not have a material effect on our pension liability. During 2014 and 2013, we made contributions of approximately $2 million and $1 million, respectively, and estimated contributions to the pension plan are expected to be approximately $1 million in 2015. Estimated future benefit payments to participants in each of the next five years are expected to be approximately $1 million in each year. |
Capital_Structure
Capital Structure | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Capital Structure [Abstract] | |||||||||
Capital Structure | Capital Structure | ||||||||
Common Stock | |||||||||
Our authorized common stock consists of 1.4 billion shares of Calpine Corporation common stock. Common stock issued as of December 31, 2014 and 2013, was 502,287,022 shares and 497,841,056 shares, respectively, at a par value of $0.001 per share. Common stock outstanding as of December 31, 2014 and 2013, was 381,921,264 shares and 429,038,988 shares, respectively. The table below summarizes our common stock activity for the years ended December 31, 2014, 2013 and 2012. | |||||||||
Shares | Shares | Shares | |||||||
Issued | Held in | Outstanding | |||||||
Treasury | |||||||||
Balance, December 31, 2011 | 490,468,815 | (8,725,077 | ) | 481,743,738 | |||||
Shares issued under Calpine Equity Incentive Plans | 2,026,285 | (284,376 | ) | 1,741,909 | |||||
Share repurchase program | — | (26,436,677 | ) | (26,436,677 | ) | ||||
Balance, December 31, 2012 | 492,495,100 | (35,446,130 | ) | 457,048,970 | |||||
Shares issued under Calpine Equity Incentive Plans | 5,345,956 | (2,323,828 | ) | 3,022,128 | |||||
Share repurchase program | — | (31,032,110 | ) | (31,032,110 | ) | ||||
Balance, December 31, 2013 | 497,841,056 | (68,802,068 | ) | 429,038,988 | |||||
Shares issued under Calpine Equity Incentive Plans | 4,445,966 | (1,879,167 | ) | 2,566,799 | |||||
Share repurchase program | — | (49,684,523 | ) | (49,684,523 | ) | ||||
Balance, December 31, 2014 | 502,287,022 | (120,365,758 | ) | 381,921,264 | |||||
Treasury Stock | |||||||||
As of December 31, 2014 and 2013, we had treasury stock of 120,365,758 shares and 68,802,068 shares, respectively, with a cost of $2.3 billion and $1.2 billion, respectively. During 2014, we repurchased a total of 36.5 million shares of our outstanding common stock for approximately $789 million at an average price of $21.62 per share, excluding the shareholder transaction described below. In 2015, through the filing of this Report, we have repurchased a total of 5.8 million shares of our outstanding common stock for approximately $125 million at an average price of $21.68 per share. Our treasury stock also consists of our common stock withheld to satisfy federal, state and local income tax withholding requirements for vested employee restricted stock awards and net share employee stock options exercises under the Equity Plan. All treasury stock is held at cost. | |||||||||
Shareholder Transaction | |||||||||
On July 8, 2014, we entered into a share repurchase agreement, at the prevailing market price, with a shareholder that beneficially owned slightly less than 10% of our outstanding common stock to purchase 13,213,372 shares of our common stock for the aggregate purchase price of $311,464,283 in a private transaction. We used cash on hand to fund the transaction which settled on July 10, 2014, and the repurchased shares have been returned to treasury stock. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies | |||||||||||||||||||||||||||||
Long-Term Service Agreements | ||||||||||||||||||||||||||||||
As of December 31, 2014, the total estimated commitments for LTSAs associated with turbines were approximately $189 million. These commitments are payable over the terms of the respective agreements, which range from 1 to 11 years. LTSA future commitment estimates are based on the stated payment terms in the contracts at the time of execution and are subject to an annual inflationary adjustment. Certain of these agreements have terms that allow us to cancel the contracts for a fee. If we cancel such contracts, the estimated commitments remaining for LTSAs would be reduced. | ||||||||||||||||||||||||||||||
Power Plant, Land and Other Operating Leases | ||||||||||||||||||||||||||||||
We have entered into certain long-term operating leases for power plants, extending through 2020, which include renewal options or purchase options at fair value and contain customary restrictions on dividends up to Calpine Corporation, additional debt and further encumbrances similar to those typically found in project finance agreements. Payments on our operating leases, which may contain escalation clauses or step rent provisions, are recognized on a straight-line basis. Certain capital improvements associated with leased power plants may be deemed to be leasehold improvements and are amortized over the shorter of the term of the lease or the economic life of the capital improvement. We have also entered into various land and other operating leases for ground facilities and operations, which extend through 2069. Future minimum rent payments under these lease agreements, including renewal options and rent escalation clauses, are as follows (in millions): | ||||||||||||||||||||||||||||||
Initial | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Year | ||||||||||||||||||||||||||||||
Land and other operating leases | various | $ | 15 | $ | 16 | $ | 15 | $ | 15 | $ | 15 | $ | 201 | $ | 277 | |||||||||||||||
Power plant operating leases: | ||||||||||||||||||||||||||||||
Greenleaf | 1998 | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||
KIAC | 2000 | 23 | 22 | 22 | 22 | 30 | — | 119 | ||||||||||||||||||||||
Total power plant leases | $ | 27 | $ | 22 | $ | 22 | $ | 22 | $ | 30 | $ | — | $ | 123 | ||||||||||||||||
Total leases | $ | 42 | $ | 38 | $ | 37 | $ | 37 | $ | 45 | $ | 201 | $ | 400 | ||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, rent expense for power plant, land and other operating leases amounted to $46 million, $47 million and $51 million, respectively. | ||||||||||||||||||||||||||||||
Production Royalties and Leases | ||||||||||||||||||||||||||||||
We are obligated under numerous geothermal leases and right-of-way, easement and surface agreements. The geothermal leases generally provide for royalties based on production revenue with reductions for property taxes paid. The right-of-way, easement and surface agreements are based on flat rates or adjusted based on consumer price index changes and are not material. Under the terms of most geothermal leases, the royalties accrue as a percentage of power revenues. Certain properties also have net profits and overriding royalty interests that are in addition to the land base lease royalties. Some lease agreements contain clauses providing for minimum lease payments to lessors if production temporarily ceases or if production falls below a specified level. Production royalties for geothermal power plants for the years ended December 31, 2014, 2013 and 2012, were $28 million, $27 million and $22 million, respectively. | ||||||||||||||||||||||||||||||
Office Leases | ||||||||||||||||||||||||||||||
We lease our corporate and regional offices under noncancelable operating leases extending through 2020. Future minimum lease payments under these leases are as follows (in millions): | ||||||||||||||||||||||||||||||
2015 | $ | 11 | ||||||||||||||||||||||||||||
2016 | 10 | |||||||||||||||||||||||||||||
2017 | 9 | |||||||||||||||||||||||||||||
2018 | 9 | |||||||||||||||||||||||||||||
2019 | 8 | |||||||||||||||||||||||||||||
Thereafter | 8 | |||||||||||||||||||||||||||||
Total | $ | 55 | ||||||||||||||||||||||||||||
Lease payments are subject to adjustments for our pro rata portion of annual increases or decreases in building operating costs. During the years ended December 31, 2014, 2013 and 2012, rent expense for noncancelable operating leases was $11 million, $12 million and $12 million, respectively. | ||||||||||||||||||||||||||||||
Natural Gas Purchases | ||||||||||||||||||||||||||||||
We enter into natural gas purchase contracts of various terms with third parties to supply natural gas to our natural gas-fired power plants. The majority of our purchases are made in the spot market or under index-priced contracts. These contracts are accounted for as executory contracts and therefore not recognized as liabilities on our Consolidated Balance Sheet. At December 31, 2014, we had future commitments for the purchase, transportation, or storage of commodities as detailed below (in millions): | ||||||||||||||||||||||||||||||
2015 | $ | 390 | ||||||||||||||||||||||||||||
2016 | 297 | |||||||||||||||||||||||||||||
2017 | 193 | |||||||||||||||||||||||||||||
2018 | 152 | |||||||||||||||||||||||||||||
2019 | 109 | |||||||||||||||||||||||||||||
Thereafter | 622 | |||||||||||||||||||||||||||||
Total | $ | 1,763 | ||||||||||||||||||||||||||||
Guarantees and Indemnifications | ||||||||||||||||||||||||||||||
As part of our normal business operations, we enter into various agreements providing, or otherwise arranging, financial or performance assurance to third parties on behalf of our subsidiaries in the ordinary course of such subsidiaries’ respective business. Such arrangements include guarantees, standby letters of credit and surety bonds for power and natural gas purchase and sale arrangements and contracts associated with the development, construction, operation and maintenance of our fleet of power plants. These arrangements are entered into primarily to support or enhance the creditworthiness otherwise attributed to a subsidiary on a stand-alone basis, thereby facilitating the extension of sufficient credit to accomplish the subsidiaries’ intended commercial purposes. | ||||||||||||||||||||||||||||||
At December 31, 2014, guarantees of subsidiary debt, standby letters of credit and surety bonds to third parties and guarantees of subsidiary operating lease payments and their respective expiration dates were as follows (in millions): | ||||||||||||||||||||||||||||||
Guarantee Commitments | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Guarantee of subsidiary debt(1) | $ | 37 | $ | 36 | $ | 26 | $ | 31 | $ | 30 | $ | 148 | $ | 308 | ||||||||||||||||
Standby letters of credit(2)(3)(5) | 572 | 14 | 20 | — | — | 38 | 644 | |||||||||||||||||||||||
Surety bonds(4)(5)(6) | — | — | — | — | — | 4 | 4 | |||||||||||||||||||||||
Guarantee of subsidiary operating lease payments(5) | 4 | — | — | — | — | — | 4 | |||||||||||||||||||||||
Total | $ | 613 | $ | 50 | $ | 46 | $ | 31 | $ | 30 | $ | 190 | $ | 960 | ||||||||||||||||
____________ | ||||||||||||||||||||||||||||||
-1 | Represents Calpine Corporation guarantees of certain power plant capital leases and related interest. All guaranteed capital leases are recorded on our Consolidated Balance Sheets. | |||||||||||||||||||||||||||||
-2 | The standby letters of credit disclosed above represent those disclosed in Note 6. | |||||||||||||||||||||||||||||
-3 | Letters of credit are renewed annually and as such all amounts are reflected in the year of letter of credit expiration. The related commercial obligations extend for multiple years, therefore, renewal of the letter of credit will likely follow the term of the associated commercial obligation. | |||||||||||||||||||||||||||||
-4 | The majority of surety bonds do not have expiration or cancellation dates. | |||||||||||||||||||||||||||||
-5 | These are contingent off balance sheet obligations. | |||||||||||||||||||||||||||||
-6 | As of December 31, 2014, $2 million of cash collateral is outstanding related to these bonds. | |||||||||||||||||||||||||||||
We routinely arrange for the issuance of letters of credit and various forms of surety bonds to third parties in support of our subsidiaries’ contractual arrangements of the types described above and may guarantee the operating performance of some of our partially-owned subsidiaries up to our ownership percentage. The letters of credit issued under various credit facilities support risk management and other operational and construction activities. In the event a subsidiary were to fail to perform its obligations under a contract supported by such a letter of credit or surety bond, and the issuing bank or surety were to make payment to the third party, we would be responsible for reimbursing the issuing bank or surety within an agreed timeframe, typically a period of one to ten days. To the extent liabilities are incurred as a result of activities covered by letters of credit or the surety bonds, such liabilities are included on our Consolidated Balance Sheets. | ||||||||||||||||||||||||||||||
Commercial Agreements — In connection with the purchase and sale of power, natural gas and emission allowances to and from third parties with respect to the operation of our power plants, we may be required to guarantee a portion of the obligations of certain of our subsidiaries. These guarantees may include future payment obligations and effectively guarantee our future performance under certain agreements. | ||||||||||||||||||||||||||||||
Asset Acquisition and Disposition Agreements — In connection with our purchase and sale agreements, we have frequently provided for indemnification to the counterparty for liabilities incurred as a result of a breach of a representation, warranty or covenant by the indemnifying party. These indemnification obligations generally have a discrete term and are intended to protect the parties against risks that are difficult to predict or impossible to quantify at the time of the consummation of a particular transaction. | ||||||||||||||||||||||||||||||
Other — Additionally, we and our subsidiaries from time to time assume other guarantee and indemnification obligations in conjunction with other transactions such as parts supply agreements, construction agreements, maintenance and service agreements and equipment lease agreements. These guarantee and indemnification obligations may include indemnification from personal injury or other claims by our employees as well as future payment obligations and effectively guarantee our future performance under certain agreements. | ||||||||||||||||||||||||||||||
Our potential exposure under guarantee and indemnification obligations can range from a specified amount to an unlimited dollar amount, depending on the nature of the claim and the particular transaction. Our total maximum exposure under our guarantee and indemnification obligations is not estimable due to uncertainty as to whether claims will be made or how any potential claim will be resolved. As of December 31, 2014, there are no material outstanding claims related to our guarantee and indemnification obligations and we do not anticipate that we will be required to make any material payments under our guarantee and indemnification obligations. | ||||||||||||||||||||||||||||||
Litigation | ||||||||||||||||||||||||||||||
We are party to various litigation matters, including regulatory and administrative proceedings arising out of the normal course of business. At the present time, we do not expect that the outcome of any of these proceedings will have a material adverse effect on our financial condition, results of operations or cash flows. | ||||||||||||||||||||||||||||||
On a quarterly basis, we review our litigation activities and determine if an unfavorable outcome to us is considered “remote,” “reasonably possible” or “probable” as defined by U.S. GAAP. Where we determine an unfavorable outcome is probable and is reasonably estimable, we accrue for potential litigation losses. The liability we may ultimately incur with respect to such litigation matters, in the event of a negative outcome, may be in excess of amounts currently accrued, if any; however, we do not expect that the reasonably possible outcome of these litigation matters would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows. Where we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for any potential litigation loss. The ultimate outcome of these litigation matters cannot presently be determined, nor can the liability that could potentially result from a negative outcome be reasonably estimated. As a result, we give no assurance that such litigation matters would, individually or in the aggregate, not have a material adverse effect on our financial condition, results of operations or cash flows. | ||||||||||||||||||||||||||||||
Environmental Matters | ||||||||||||||||||||||||||||||
We are subject to complex and stringent environmental laws and regulations related to the operation of our power plants. On occasion, we may incur environmental fees, penalties and fines associated with the operation of our power plants. At the present time, we do not have environmental violations or other matters that would have a material impact on our financial condition, results of operations or cash flows or that would significantly change our operations. | ||||||||||||||||||||||||||||||
Bay Area Air Quality Management District (“BAAQMD”). On March 13, 2014, the Hearing Board of the BAAQMD entered into a stipulated conditional order for abatement agreed to by Russell City Energy Company, LLC (“RCEC”), our indirect, majority-owned subsidiary, and the BAAQMD concerning a violation of the vendor-guaranteed water droplet drift rate for RCEC’s cooling tower discovered during initial performance testing. RCEC installed additional drift eliminators and came into compliance with its water droplet drift rate on April 17, 2014. The BAAQMD reserved its rights to assert any penalty claims associated with this violation and RCEC reserved its rights to assert any defenses to such claims in future proceedings. |
Segment_and_Significant_Custom
Segment and Significant Customer Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment and Significant Customer Information [Abstract] | ||||||||||||||||||||
Segment and Significant Customer Information | ||||||||||||||||||||
Segment and Significant Customer Information | ||||||||||||||||||||
We assess our business on a regional basis due to the impact on our financial performance of the differing characteristics of these regions, particularly with respect to competition, regulation and other factors impacting supply and demand. During the third quarter of 2014, we altered the composition of our geographic segments to combine our former North and Southeast segments into one segment which was renamed the East segment. This change reflects the manner in which our geographic information is presented internally to our chief operating decision maker following the sale of six power plants in July 2014 from what was formerly our Southeast segment. Thus, at December 31, 2014, our reportable segments were West (including geothermal), Texas and East (including Canada). We continue to evaluate the optimal manner in which we assess our performance including our segments and future changes may result. | ||||||||||||||||||||
Commodity Margin is a key operational measure reviewed by our chief operating decision maker to assess the performance of our segments. The tables below show our financial data for our segments for the periods indicated (in millions). | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 2,352 | $ | 3,229 | $ | 2,449 | $ | — | $ | 8,030 | ||||||||||
Intersegment revenues | 6 | 23 | 47 | (76 | ) | — | ||||||||||||||
Total operating revenues | $ | 2,358 | $ | 3,252 | $ | 2,496 | $ | (76 | ) | $ | 8,030 | |||||||||
Commodity Margin(1) | $ | 1,050 | $ | 760 | $ | 949 | $ | — | $ | 2,759 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | 220 | 142 | 48 | (31 | ) | 379 | ||||||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 385 | 313 | 302 | (31 | ) | 969 | ||||||||||||||
Depreciation and amortization expense | 245 | 191 | 168 | (1 | ) | 603 | ||||||||||||||
Sales, general and other administrative expense | 41 | 64 | 39 | — | 144 | |||||||||||||||
Other operating expenses | 50 | 5 | 32 | 1 | 88 | |||||||||||||||
Impairment loss | — | — | 123 | — | 123 | |||||||||||||||
(Gain) on sale of assets, net | — | — | (753 | ) | — | (753 | ) | |||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (25 | ) | — | (25 | ) | |||||||||||||
Income from operations | 549 | 329 | 1,111 | — | 1,989 | |||||||||||||||
Interest expense, net of interest income | 639 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 367 | |||||||||||||||||||
Income before income taxes | $ | 983 | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 1,937 | $ | 2,347 | $ | 2,017 | $ | — | $ | 6,301 | ||||||||||
Intersegment revenues | 5 | (4 | ) | 117 | (118 | ) | — | |||||||||||||
Total operating revenues | $ | 1,942 | $ | 2,343 | $ | 2,134 | $ | (118 | ) | $ | 6,301 | |||||||||
Commodity Margin(1) | $ | 1,020 | $ | 632 | $ | 916 | $ | — | $ | 2,568 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | (50 | ) | 51 | 27 | (31 | ) | (3 | ) | ||||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 365 | 269 | 292 | (31 | ) | 895 | ||||||||||||||
Depreciation and amortization expense | 227 | 165 | 203 | (2 | ) | 593 | ||||||||||||||
Sales, general and other administrative expense | 37 | 56 | 42 | 1 | 136 | |||||||||||||||
Other operating expenses | 45 | 3 | 33 | — | 81 | |||||||||||||||
Impairment loss | 16 | — | — | — | 16 | |||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Income from operations | 280 | 190 | 403 | 1 | 874 | |||||||||||||||
Interest expense, net of interest income | 690 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 164 | |||||||||||||||||||
Income before income taxes | $ | 20 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 1,668 | $ | 1,857 | $ | 1,953 | $ | — | $ | 5,478 | ||||||||||
Intersegment revenues | 10 | 61 | 38 | (109 | ) | — | ||||||||||||||
Total operating revenues | $ | 1,678 | $ | 1,918 | $ | 1,991 | $ | (109 | ) | $ | 5,478 | |||||||||
Commodity Margin(1)(3)(4) | $ | 994 | $ | 570 | $ | 974 | $ | — | $ | 2,538 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | (93 | ) | 87 | (47 | ) | (31 | ) | (84 | ) | |||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 368 | 247 | 337 | (30 | ) | 922 | ||||||||||||||
Depreciation and amortization expense | 203 | 142 | 219 | (2 | ) | 562 | ||||||||||||||
Sales, general and other administrative expense | 36 | 47 | 57 | — | 140 | |||||||||||||||
Other operating expenses | 42 | 5 | 34 | (3 | ) | 78 | ||||||||||||||
(Gain) on sale of assets, net | — | — | (222 | ) | — | (222 | ) | |||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (28 | ) | — | (28 | ) | |||||||||||||
Income from operations | 252 | 216 | 530 | 4 | 1,002 | |||||||||||||||
Interest expense, net of interest income | 725 | |||||||||||||||||||
Loss on interest rate derivatives | 14 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 45 | |||||||||||||||||||
Loss before income taxes | $ | 218 | ||||||||||||||||||
__________ | ||||||||||||||||||||
-1 | Our East segment includes Commodity Margin of $81 million, $152 million and $131 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to the six power plants in our East segment that were sold in July 2014. | |||||||||||||||||||
-2 | Includes $(5) million, $6 million and $1 million of lease levelization and $14 million, $14 million and $14 million of amortization expense for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
-3 | Our East segment includes Commodity Margin of $52 million for the year ended December 31, 2012, related to Broad River, which was sold in December 2012. | |||||||||||||||||||
-4 | Our East segment includes Commodity Margin of $73 million for the year ended December 31, 2012, related to Riverside Energy Center, LLC, which was sold in December 2012. | |||||||||||||||||||
Significant Customers | ||||||||||||||||||||
For the years ended December 31, 2014 and 2012, we had only one significant customer, PJM Settlement, Inc. that individually accounted for more than 10% of our annual consolidated revenues. For the year ended December 31, 2013, we had two significant customers, PJM Settlement, Inc. and PG&E, that individually accounted for more than 10% of our annual consolidated revenues. Our revenues from PJM Settlement, Inc. for the years ended December 31, 2014, 2013 and 2012 were approximately $1.0 billion, $820 million and $713 million respectively, and were attributed to our East segment. Our revenues from PG&E was approximately $694 million for the year ended December 31, 2013, which was attributed to our West segment. |
Quarterly_Consolidated_Financi
Quarterly Consolidated Financial Data (unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Quarterly Consolidated Financial Data (unaudited) | Quarterly Consolidated Financial Data (unaudited) | |||||||||||||||
Our quarterly operating results have fluctuated in the past and may continue to do so in the future as a result of a number of factors, including, but not limited to, our restructuring activities (including asset sales), the completion of development projects, the timing and amount of curtailment of operations under the terms of certain PPAs, the degree of risk management and marketing, hedging, optimization and trading activities, energy commodity market prices and variations in levels of production. Furthermore, the majority of the dollar value of capacity payments under certain of our PPAs are received during the months of May through October. | ||||||||||||||||
Quarter Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Operating revenues | $ | 1,939 | $ | 2,187 | $ | 1,939 | $ | 1,965 | ||||||||
Income from operations | $ | 390 | $ | 1,126 | $ | 329 | $ | 144 | ||||||||
Net income (loss) attributable to Calpine | $ | 210 | $ | 614 | $ | 139 | $ | (17 | ) | |||||||
Net income (loss) per common share attributable to Calpine — Basic | $ | 0.55 | $ | 1.54 | $ | 0.33 | $ | (0.04 | ) | |||||||
Net income (loss) per common share attributable to Calpine — Diluted | $ | 0.54 | $ | 1.52 | $ | 0.33 | $ | (0.04 | ) | |||||||
2013 | ||||||||||||||||
Operating revenues | $ | 1,438 | $ | 2,050 | $ | 1,572 | $ | 1,241 | ||||||||
Income from operations | $ | 151 | $ | 597 | $ | 122 | $ | 4 | ||||||||
Net income (loss) attributable to Calpine | $ | (97 | ) | $ | 306 | $ | (70 | ) | $ | (125 | ) | |||||
Net income (loss) per common share attributable to Calpine — Basic | $ | (0.23 | ) | $ | 0.7 | $ | (0.16 | ) | $ | (0.28 | ) | |||||
Net income (loss) per common share attributable to Calpine — Diluted | $ | (0.23 | ) | $ | 0.7 | $ | (0.16 | ) | $ | (0.28 | ) | |||||
Schedule_of_Valuation_and_Qual
Schedule of Valuation and Qualifying Accounts Disclosure | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | CALPINE CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
SCHEDULE II VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||||||
Description | Balance at | Charged to | Charged to Other Accounts | Deductions(1) | Balance at | |||||||||||||||
Beginning | Expense | End of Year | ||||||||||||||||||
of Year | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 5 | $ | (1 | ) | $ | — | $ | — | $ | 4 | |||||||||
Deferred tax asset valuation allowance | 2,246 | (410 | ) | — | — | 1,836 | ||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 6 | $ | 4 | $ | (5 | ) | $ | — | $ | 5 | |||||||||
Deferred tax asset valuation allowance | 2,222 | 24 | — | — | 2,246 | |||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
Allowance for doubtful accounts | $ | 13 | $ | (1 | ) | $ | (1 | ) | $ | (5 | ) | $ | 6 | |||||||
Deferred tax asset valuation allowance | 2,336 | (114 | ) | — | — | 2,222 | ||||||||||||||
_____________ | ||||||||||||||||||||
-1 | Represents write-offs of accounts considered to be uncollectible and previously reserved. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Summary of Significant Accounting Policies [Abstract] | ||
Consolidation | Our Consolidated Financial Statements have been prepared in accordance with U.S. GAAP and include the accounts of all majority-owned subsidiaries that are not VIEs and all VIEs where we have determined we are the primary beneficiary. Intercompany transactions have been eliminated in consolidation. | |
Equity Method Investments | We use the equity method of accounting to record our net interests in VIEs where we have determined that we are not the primary beneficiary, which include Greenfield LP, a 50% partnership interest, and Whitby, a 50% partnership interest. Our share of net income (loss) is calculated according to our equity ownership percentage or according to the terms of the applicable partnership agreement. See Note 5 for further discussion of our VIEs and unconsolidated investments. | |
We consolidate our VIEs where we determine that we have both the power to direct the activities of a VIE that most significantly impact the VIE’s economic performance and the obligation to absorb losses or receive benefits from the VIE. We have determined that we hold the obligation to absorb losses and receive benefits in all of our VIEs where we hold the majority equity interest. Therefore, our determination of whether to consolidate is based upon which variable interest holder has the power to direct the most significant activities of the VIE (the primary beneficiary). Our analysis includes consideration of the following primary activities which we believe to have a significant impact on a power plant’s financial performance: operations and maintenance, plant dispatch, and fuel strategy as well as our ability to control or influence contracting and overall plant strategy. Our approach to determining which entity holds the powers and rights is based on powers held as of the balance sheet date. Contractual terms that may change the powers held in future periods, such as a purchase or sale option, are not considered in our analysis. Based on our analysis, we believe that we hold the power and rights to direct the most significant activities of all our majority-owned VIEs. | ||
Under our consolidation policy and under U.S. GAAP we also: | ||
• | perform an ongoing reassessment each reporting period of whether we are the primary beneficiary of our VIEs; and | |
• | evaluate if an entity is a VIE and whether we are the primary beneficiary whenever any changes in facts and circumstances occur such that the holders of the equity investment at risk, as a group, lose the power from voting rights or similar rights of those investments to direct the activities of a VIE that most significantly impact the VIE’s economic performance or when there are other changes in the powers held by individual variable interest holders. | |
Reclassification | We have reclassified certain prior year amounts for comparative purposes. These reclassifications did not have a material impact on our financial condition, results of operations or cash flows. | |
Jointly-Owned Plants [Policy Text Block] | Certain of our subsidiaries own undivided interests in jointly-owned plants. These plants are maintained and operated pursuant to their joint ownership participation and operating agreements. We are responsible for our subsidiaries’ share of operating costs and direct expenses and include our proportionate share of the facilities and related revenues and direct expenses in these jointly-owned plants in the corresponding balance sheet and income statement captions of our Consolidated Financial Statements. | |
Use of Estimates in Preparation of Financial Statements | The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures included in our Consolidated Financial Statements. Actual results could differ from those estimates. | |
Fair Value of Financial Instruments and Derivatives | The carrying values of accounts receivable, accounts payable and other receivables and payables approximate their respective fair values due to their short-term maturities. See Note 6 for disclosures regarding the fair value of our debt instruments and Note 7 for disclosures regarding the fair values of our derivative instruments and margin deposits and certain of our cash balances. | |
Concentrations of Credit Risk | Financial instruments that potentially subject us to credit risk consist of cash and cash equivalents, restricted cash, accounts and notes receivable and derivative financial instruments. Certain of our cash and cash equivalents, as well as our restricted cash balances, are invested in money market accounts with investment banks that are not FDIC insured. We place our cash and cash equivalents and restricted cash in what we believe to be creditworthy financial institutions and certain of our money market accounts invest in U.S. Treasury securities or other obligations issued or guaranteed by the U.S. Government, its agencies or instrumentalities. Additionally, we actively monitor the credit risk of our counterparties, including our receivable, commodity and derivative transactions. Our accounts and notes receivable are concentrated within entities engaged in the energy industry, mainly within the U.S. We generally have not collected collateral for accounts receivable from utilities and end-user customers; however, we may require collateral in the future. For financial and commodity derivative counterparties, we evaluate the net accounts receivable, accounts payable and fair value of commodity contracts and may require security deposits, cash margin or letters of credit to be posted if our exposure reaches a certain level or their credit rating declines. | |
Our counterparties primarily consist of three categories of entities who participate in the wholesale energy markets: | ||
• | financial institutions and trading companies; | |
• | regulated utilities, municipalities, cooperatives, ISOs and other retail power suppliers; and | |
• | oil, natural gas, chemical and other energy-related industrial companies. | |
We have concentrations of credit risk with a few of our customers relating to our sales of power, steam and hedging, optimization and trading activities. We have exposure to trends within the energy industry, including declines in the creditworthiness of our counterparties for our commodity and derivative transactions. Currently, certain of our counterparties within the energy industry have below investment grade credit ratings. Our risk control group manages counterparty credit risk and monitors our net exposure with each counterparty on a daily basis. The analysis is performed on a mark-to-market basis using forward curves. The net exposure is compared against a counterparty credit risk threshold which is determined based on each counterparty’s credit rating and evaluation of their financial statements. We utilize these thresholds to determine the need for additional collateral or restriction of activity with the counterparty. We believe that our credit policies and portfolio of transactions adequately monitor and diversify our credit risk, and currently our counterparties are performing and financially settling timely according to their respective agreements. | ||
Cash and Cash Equivalents | We consider all highly liquid investments with an original maturity of three months or less to be cash equivalents. We have certain project finance facilities and lease agreements that require us to establish and maintain segregated cash accounts, which have been pledged as security in favor of the lenders under such project finance facilities, and the use of certain cash balances on deposit in such accounts is limited, at least temporarily, to the operations of the respective projects. At December 31, 2014 and 2013, we had cash and cash equivalents of $257 million and $292 million, respectively, that were subject to such project finance facilities and lease agreements. | |
Restricted Cash | Certain of our debt agreements, lease agreements or other operating agreements require us to establish and maintain segregated cash accounts, the use of which is restricted. These amounts are held by depository banks in order to comply with the contractual provisions requiring reserves for payments such as for debt service, rent, major maintenance and debt repurchases or with applicable regulatory requirements. Funds that can be used to satisfy obligations due during the next 12 months are classified as current restricted cash, with the remainder classified as non-current restricted cash. Restricted cash is generally invested in accounts earning market rates; therefore, the carrying value approximates fair value. Such cash is excluded from cash and cash equivalents on our Consolidated Balance Sheets and Statements of Cash Flows. | |
Accounts Receivable and Payable | Accounts receivable and payable represent amounts due from customers and owed to vendors, respectively. Accounts receivable are recorded at invoiced amounts, net of reserves and allowances, and do not bear interest. Receivable balances greater than 30 days past due are individually reviewed for collectability, and if deemed uncollectible, are charged off against the allowance account after all means of collection have been exhausted and the potential for recovery is considered remote. We use our best estimate to determine the required allowance for doubtful accounts based on a variety of factors, including the length of time receivables are past due, economic trends and conditions affecting our customer base, significant one-time events and historical write-off experience. Specific provisions are recorded for individual receivables when we become aware of a customer’s inability to meet its financial obligations. We review the adequacy of our reserves and allowances quarterly. | |
The accounts receivable and payable balances also include settled but unpaid amounts relating to our marketing, hedging and optimization activities. Some of these receivables and payables with individual counterparties are subject to master netting arrangements whereby we legally have a right of offset and settle the balances net. However, for balance sheet presentation purposes and to be consistent with the way we present the majority of amounts related to marketing, hedging and optimization activities on our Consolidated Statements of Operations, we present our receivables and payables on a gross basis. We do not have any significant off balance sheet credit exposure related to our customers. | ||
Inventory | Inventory primarily consists of spare parts, stored natural gas and fuel oil, environmental products and natural gas exchange imbalances. Inventory, other than spare parts, is stated primarily at the lower of cost or market value under the weighted average cost method. Spare parts inventory is valued at weighted average cost and is expensed to plant operating expense or capitalized to property, plant and equipment as the parts are utilized and consumed. | |
Collateral | We use margin deposits, prepayments and letters of credit as credit support with and from our counterparties for commodity procurement and risk management activities. In addition, we have granted additional first priority liens on the assets previously subject to first priority liens under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility as collateral under certain of our power and natural gas agreements. These agreements qualify as “eligible commodity hedge agreements” under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility. The first priority liens have been granted in order to reduce the cash collateral and letters of credit that we would otherwise be required to provide to our counterparties under such agreements. The counterparties under such agreements would share the benefits of the collateral subject to such first priority liens ratably with the lenders under our First Lien Notes, First Lien Term Loans and Corporate Revolving Facility. Our interest rate swap agreements relate to hedges of certain of our project financings collateralized by first priority liens on the underlying assets. See Note 9 for a further discussion on our amounts and use of collateral. | |
Deferred Financing Costs | Costs incurred related to the issuance of debt instruments are deferred and amortized over the term of the related debt using a method that approximates the effective interest rate method. However, when the timing of debt transactions involve contemporaneous exchanges of cash between us and the same creditor(s) in connection with the issuance of a new debt obligation and satisfaction of an existing debt obligation, deferred financing costs are accounted for depending on whether the transaction qualifies as an extinguishment or modification, which requires us to either write-off the original deferred financing costs and capitalize the new issuance costs, or continue to amortize the original deferred financing costs and immediately expense the new issuance costs. | |
Property, Plant and Equipment, Net | Property, plant, and equipment items are recorded at cost. We capitalize costs incurred in connection with the construction of power plants, the development of geothermal properties and the refurbishment of major turbine generator equipment. When capital improvements to leased power plants meet our capitalization criteria they are capitalized as leasehold improvements and amortized over the shorter of the term of the lease or the economic life of the capital improvement. We expense maintenance when the service is performed for work that does not meet our capitalization criteria. Our current capital expenditures at our Geysers Assets are those incurred for proven reserves and reservoir replenishment (primarily water injection), pipeline and power generation assets and drilling of “development wells” as all drilling activity has been performed within the known boundaries of the steam reservoir. We have capitalized costs incurred during ownership consisting of additions, certain replacements or repairs when the repairs appreciably extend the life, increase the capacity or improve the efficiency or safety of the property. Such costs are expensed when they do not meet the above criteria. We purchased our Geysers Assets as a proven steam reservoir and all well costs, except well workovers and routine repairs and maintenance, have been capitalized since our purchase date. | |
We depreciate our assets under the straight-line method over the shorter of their estimated useful lives or lease term. For our natural gas-fired power plants, we assume an estimated salvage value which approximates 10% of the depreciable cost basis where we own the power plant or have a favorable option to purchase the power plant or take ownership of the power plant at conclusion of the lease term and approximately 0.15% of the depreciable costs basis for rotable equipment. For our Geysers Assets, we typically assume no salvage values. We use the component depreciation method for our natural gas-fired power plant rotable parts and our information technology equipment and the composite depreciation method for most of all of the other natural gas-fired power plant asset groups and Geysers Assets. | ||
Generally, upon normal retirement of assets under the composite depreciation method, the costs of such assets are retired against accumulated depreciation and no gain or loss is recorded. For the retirement of assets under the component depreciation method, generally, the costs and related accumulated depreciation of such assets are removed from our Consolidated Balance Sheets and a gain or loss is recorded as plant operating expense. | ||
Impairment Evaluation of Long-Lived Assets (Including Intangibles and Investments) | We evaluate our long-lived assets, such as property, plant and equipment, equity method investments and definite-lived intangible assets for impairment, when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Equipment assigned to each power plant is not evaluated for impairment separately; instead, we evaluate our operating power plants and related equipment as a whole unit. When we believe an impairment condition may have occurred, we are required to estimate the undiscounted future cash flows associated with a long-lived asset or group of long-lived assets at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities for long-lived assets that are expected to be held and used. If we determine that the undiscounted cash flows from an asset or group of assets to be held and used are less than the associated carrying amount, or if we have classified an asset as held for sale, we must estimate fair value to determine the amount of any impairment loss. All construction and development projects are reviewed for impairment whenever there is an indication of potential reduction in fair value. If it is determined that a construction or development project is no longer probable of completion and the capitalized costs will not be recovered through future operations, the carrying value of the project will be written down to its fair value. | |
In order to estimate future cash flows, we consider historical cash flows, existing and future contracts and PPAs, changes in the market environment and other factors that may affect future cash flows. To the extent applicable, the assumptions we use are consistent with forecasts that we are otherwise required to make (for example, in preparing our earnings forecasts). The use of this method involves inherent uncertainty. We use our best estimates in making these evaluations and consider various factors, including forward price curves for power and fuel costs and forecasted operating costs. However, actual future market prices and project costs could vary from the assumptions used in our estimates, and the impact of such variations could be material. | ||
When we determine that our assets meet the assets held-for-sale criteria, they are reported at the lower of their carrying amount or fair value less the cost to sell. We are also required to evaluate our equity method investments to determine whether or not they are impaired when the value is considered an “other than a temporary” decline in value. | ||
Generally, fair value will be determined using valuation techniques such as the present value of expected future cash flows. We will also discount the estimated future cash flows associated with the asset using a single interest rate representative of the risk involved with such an investment including contract terms, tenor and credit risk of counterparties. We may also consider prices of similar assets, consult with brokers, or employ other valuation techniques. We use our best estimates in making these evaluations and consider various factors, including forward price curves for power and fuel costs and forecasted operating costs. However, actual future market prices and project costs could vary from the assumptions used in our estimates, and the impact of such variations could be material. | ||
In August 2014, we executed a term sheet with Duke Energy Florida, Inc. related to our Osprey Energy Center for a new PPA with a term of 27 months, after which Duke Energy Florida, Inc. would purchase our Osprey Energy Center subject to an asset sale agreement that was executed in the fourth quarter of 2014 and remains subject to federal and state regulatory approval. As a result, we conducted an impairment review of our Osprey Energy Center during the third quarter of 2014. We estimated fair value of our Osprey Energy Center under a modified market approach using the discounted cash flows under the PPA and the sale proceeds to be received, which incorporated a market participant's fair value of the power plant. We recorded an impairment loss of approximately $123 million which was recorded as a separate line item on our Consolidated Statements of Operations for the year ended December 31, 2014. We recorded an impairment loss of $16 million during the year ended December 31, 2013 related to a power plant in our West segment. During 2012, we did not record any impairment losses. | ||
Asset Retirement Obligation | We record all known asset retirement obligations for which the liability’s fair value can be reasonably estimated. Over time, the liability is accreted to its present value each period and the capitalized cost is depreciated over the useful life of the related asset. At December 31, 2014 and 2013, our asset retirement obligation liabilities were $47 million and $44 million, respectively, primarily relating to land leases upon which our power plants are built and the requirement that the property meet specific conditions upon its return. | |
Revenue Recognition | Our operating revenues are comprised of the following: | |
• | power and steam revenue consisting of fixed and variable capacity payments, which are not related to generation including capacity payments received from RTO and ISO capacity auctions, variable payments for power and steam, which are related to generation, host steam and RECs from our Geysers Assets, other revenues such as RMR Contracts, resource adequacy and certain ancillary service revenues and realized settlements from our marketing, hedging, optimization and trading activities; | |
• | mark-to-market revenues from derivative instruments as a result of our marketing, hedging, optimization and trading activities; and | |
• | other service revenues. | |
Power and Steam | ||
Physical Commodity Contracts — We recognize revenue primarily from the sale of power and steam thermal energy for sale to our customers for use in industrial or other heating operations upon transmission and delivery to the customer. | ||
We routinely enter into physical commodity contracts for sales of our generated power to manage risk and capture the value inherent in our generation. We apply lease accounting to contracts that meet the definition of a lease and accrual accounting treatment to those contracts that are either exempt from derivative accounting or do not meet the definition of a derivative instrument. Additionally, we determine whether the financial statement presentation of revenues should be on a gross or net basis. | ||
With respect to our physical executory contracts, where we act as a principal, we take title of the commodities and assume the risks and rewards of ownership by receiving the natural gas and using the natural gas in our operations to generate and deliver the power. Where we act as principal, we record settlement of our physical commodity contracts on a gross basis. Where we do not take title of the commodities but receive a net variable payment to convert natural gas into power and steam in a tolling operation, we record the variable payment as revenue but do not record any fuel and purchased energy expense. | ||
Capacity payments, RMR Contracts, RECs, resource adequacy and other ancillary revenues, unless qualified as a lease, are recognized when contractually earned and consist of revenues received from our customers either at the market price or a contract price. | ||
Realized and Mark-to-Market Revenues from Commodity Derivative Instruments | ||
Realized Settlements of Commodity Derivative Instruments — The realized value of power commodity sales and purchase contracts that are net settled or settled as gross sales and purchases, but could have been net settled, are reflected on a net basis and are included in Commodity revenue on our Consolidated Statements of Operations. | ||
Mark-to-Market Gain (Loss) — The changes in the mark-to-market value of power-based commodity derivative instruments are reflected on a net basis as a separate component of operating revenues. | ||
Lease, Policy [Policy Text Block] | We have contracts, such as certain tolling agreements, which we account for as operating leases under U.S. GAAP. Generally, we levelize certain components of these contract revenues on a straight-line basis over the term of the contract. | |
Accounting for Derivative Instruments | We enter into a variety of derivative instruments including both exchange traded and OTC power and natural gas forwards, options as well as instruments that settle on the power price to natural gas price relationships (Heat Rate swaps and options) and interest rate swaps. We recognize all derivative instruments that qualify for derivative accounting treatment as either assets or liabilities and measure those instruments at fair value unless they qualify for and are designated under the normal purchase normal sale exemption. Accounting for derivatives at fair value requires us to make estimates about future prices during periods for which price quotes are not available from sources external to us, in which case we rely on internally developed price estimates. See Note 8 for further discussion on our accounting for derivatives. | |
Fuel and Purchased Energy Expense | Fuel and purchased energy expense is comprised of the cost of natural gas and fuel oil purchased from third parties for the purposes of consumption in our power plants as fuel, and the cost of power and natural gas purchased from third parties for our marketing, hedging and optimization activities and realized settlements and mark-to-market gains and losses resulting from general market price movements against certain derivative natural gas contracts including financial natural gas transactions economically hedging anticipated future power sales that either do not qualify as hedges under the hedge accounting guidelines or qualify under the hedge accounting guidelines and the hedge accounting designation has not been elected. | |
Realized and Mark-to-Market Expenses from Commodity Derivative Instruments | ||
Realized Settlements of Commodity Derivative Instruments — The realized value of natural gas purchase and sales commodity contracts that are net settled are reflected on a net basis and included in Commodity expense on our Consolidated Statements of Operations. Power purchase commodity contracts that result in the physical delivery of power, and that also supplement our power generation, are reflected on a gross basis and are included in Commodity expense on our Consolidated Statements of Operations. | ||
Mark-to-Market (Gain) Loss — The changes in the mark-to-market value of natural gas-based commodity derivative instruments are reflected on a net basis as a separate component of fuel and purchased energy expense. | ||
Plant Operating Expense | Plant operating expense primarily includes employee expenses, utilities, chemicals, repairs and maintenance (including equipment failure and major maintenance), insurance and property taxes. We recognize these expenses when the service is performed or in the period in which the expense relates. | |
Income Taxes | Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying values of existing assets and liabilities and their respective tax basis and tax credit and NOL carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities due to a change in tax rates is recognized in income in the period that includes the enactment date. | |
We recognize the financial statement effects of a tax position when it is more-likely-than-not, based on the technical merits, that the position will be sustained upon examination. A tax position that meets the more-likely-than-not recognition threshold is measured as the largest amount of tax benefit that is greater than 50% likely of being realized upon ultimate settlement with a taxing authority. We reverse a previously recognized tax position in the first period in which it is no longer more-likely-than-not that the tax position would be sustained upon examination. See Note 10 for a further discussion on our income taxes. | ||
Earnings (Loss) per Share | Basic earnings per share is calculated using the weighted average shares outstanding during the period and includes restricted stock units for which no future service is required as a condition to the delivery of the underlying common stock. Diluted earnings per share is calculated by adjusting the weighted average shares outstanding by the dilutive effect of share-based awards using the treasury stock method. See Note 11 for a further discussion of our earnings per share. | |
Stock-Based Compensation | We use the Black-Scholes option-pricing model or the Monte Carlo simulation model to estimate the fair value of our employee stock options on the grant date. For our restricted stock and restricted stock units, we use our closing stock price on the date of grant, or the last trading day preceding the grant date for restricted stock granted on non-trading days, as the fair value for measuring compensation expense. Our performance share units are measured at fair value using a Monte Carlo simulation model at each reporting date until settlement. See Note 12 for a further discussion of our stock-based compensation. | |
Treasury Stock [Policy Text Block] | Treasury stock purchases are accounted for under the cost method whereby the entire cost of the acquired stock is recorded as treasury stock. Upon retirement of treasury stock, the amounts in excess of par value are charged entirely to additional paid-in capital. | |
Commitments and Contingencies, Policy [Policy Text Block] | On a quarterly basis, we review our litigation activities and determine if an unfavorable outcome to us is considered “remote,” “reasonably possible” or “probable” as defined by U.S. GAAP. Where we determine an unfavorable outcome is probable and is reasonably estimable, we accrue for potential litigation losses. The liability we may ultimately incur with respect to such litigation matters, in the event of a negative outcome, may be in excess of amounts currently accrued, if any; however, we do not expect that the reasonably possible outcome of these litigation matters would, individually or in the aggregate, have a material adverse effect on our financial condition, results of operations or cash flows. Where we determine an unfavorable outcome is not probable or reasonably estimable, we do not accrue for any potential litigation loss. The ultimate outcome of these litigation matters cannot presently be determined, nor can the liability that could potentially result from a negative outcome be reasonably estimated. As a result, we give no assurance that such litigation matters would, individually or in the aggregate, not have a material adverse effect on our financial condition, results of operations or cash flows. | |
New Accounting Pronouncements, Policy [Policy Text Block] | Income Taxes — In July 2013, the FASB issued Accounting Standards Update 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists”. The provisions of the standard require an unrecognized tax benefit to be presented as a reduction to a deferred tax asset in the financial statements for a NOL carryforward, a similar tax loss, or a tax credit carryforward except in circumstances when the carryforward or tax loss is not available at the reporting date under the tax laws of the applicable jurisdiction to settle any additional income taxes or the tax law does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purposes. When those circumstances exist, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. We adopted Accounting Standards Update 2013-11 in the first quarter of 2014 which did not have a material impact on our financial condition, results of operations or cash flows. | |
Financial Reporting of Discontinued Operations — In April 2014, the FASB issued Accounting Standards Update 2014-08, “Presentation of Financial Statements and Property, Plant, and Equipment”. The update limits discontinued operations reporting to disposals that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The standard also requires new disclosures related to components reported as discontinued operations, as well as components of an entity that were sold and do not meet the criteria for discontinued operations reporting. The new financial statement presentation provisions relating to this standard are prospective and effective for interim and annual periods beginning after December 15, 2014, with early adoption permitted. We do not anticipate a material impact on our financial condition, results of operations or cash flows as a result of adopting this standard. | ||
Revenue Recognition — In May 2014, the FASB issued Accounting Standards Update 2014-09, “Revenue from Contracts with Customers”. The comprehensive new revenue recognition standard will supersede all existing revenue recognition guidance. The core principle of the standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard creates a five-step model for revenue recognition that requires companies to exercise judgment when considering contract terms and relevant facts and circumstances. The five-step model includes (1) identifying the contract, (2) identifying the separate performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the separate performance obligations and (5) recognizing revenue when each performance obligation has been satisfied. The standard also requires expanded disclosures surrounding revenue recognition. The standard is effective for fiscal periods beginning after December 15, 2016, including interim periods within that reporting period and allows for either full retrospective or modified retrospective adoption with early adoption being prohibited. We are currently assessing the future impact this standard may have on our financial condition, results of operations or cash flows. | ||
Going Concern — In August 2014, the FASB issued Accounting Standards Update 2014-15, “Presentation of Financial Statements — Going Concern”. This standard requires an entity’s management to assess the entity’s ability to continue as a going concern every reporting period including interim periods and requires additional disclosures if conditions or events raise substantial doubt about an entity’s ability to continue as a going concern. The standard is effective for annual periods ending after December 15, 2016, and for annual and interim periods thereafter with early adoption permitted. We early adopted this standard during the fourth quarter of 2014 which did not have a material impact on our financial condition, results of operations or cash flows. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||
Schedule of Jointly Owned Utility Plants [Table Text Block] | Jointly-Owned Plants — Certain of our subsidiaries own undivided interests in jointly-owned plants. These plants are maintained and operated pursuant to their joint ownership participation and operating agreements. We are responsible for our subsidiaries’ share of operating costs and direct expenses and include our proportionate share of the facilities and related revenues and direct expenses in these jointly-owned plants in the corresponding balance sheet and income statement captions of our Consolidated Financial Statements. The following table summarizes our proportionate ownership interest in jointly-owned power plants: | |||||||||||||||||||||||||||||
As of December 31, 2014 | Ownership Interest | Property, Plant & Equipment | Accumulated Depreciation | Construction in Progress | ||||||||||||||||||||||||||
(in millions, except percentages) | ||||||||||||||||||||||||||||||
Freestone Energy Center | 75 | % | $ | 389 | $ | (140 | ) | $ | — | |||||||||||||||||||||
Hidalgo Energy Center | 78.5 | % | $ | 257 | $ | (104 | ) | $ | — | |||||||||||||||||||||
Schedule of Components of Restricted Cash | Certain of our debt agreements, lease agreements or other operating agreements require us to establish and maintain segregated cash accounts, the use of which is restricted. These amounts are held by depository banks in order to comply with the contractual provisions requiring reserves for payments such as for debt service, rent, major maintenance and debt repurchases or with applicable regulatory requirements. Funds that can be used to satisfy obligations due during the next 12 months are classified as current restricted cash, with the remainder classified as non-current restricted cash. Restricted cash is generally invested in accounts earning market rates; therefore, the carrying value approximates fair value. Such cash is excluded from cash and cash equivalents on our Consolidated Balance Sheets and Statements of Cash Flows. | |||||||||||||||||||||||||||||
The table below represents the components of our restricted cash as of December 31, 2014 and 2013 (in millions): | ||||||||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||||||
Current | Non-Current | Total | Current | Non-Current | Total | |||||||||||||||||||||||||
Debt service | $ | 10 | $ | 25 | $ | 35 | $ | 11 | $ | 41 | $ | 52 | ||||||||||||||||||
Rent reserve | 4 | — | 4 | 3 | — | 3 | ||||||||||||||||||||||||
Construction/major maintenance | 54 | 17 | 71 | 35 | 20 | 55 | ||||||||||||||||||||||||
Security/project/insurance | 127 | 5 | 132 | 151 | 6 | 157 | ||||||||||||||||||||||||
Other | — | 2 | 2 | 3 | 2 | 5 | ||||||||||||||||||||||||
Total | $ | 195 | $ | 49 | $ | 244 | $ | 203 | $ | 69 | $ | 272 | ||||||||||||||||||
Schedule of Total Contractual Future Minimum Lease Receipts | Leases — We have contracts, such as certain tolling agreements, which we account for as operating leases under U.S. GAAP. Generally, we levelize certain components of these contract revenues on a straight-line basis over the term of the contract. The total contractual future minimum lease rentals for our contracts accounted for as operating leases at December 31, 2014, are as follows (in millions): | |||||||||||||||||||||||||||||
2015 | $ | 561 | ||||||||||||||||||||||||||||
2016 | 495 | |||||||||||||||||||||||||||||
2017 | 433 | |||||||||||||||||||||||||||||
2018 | 396 | |||||||||||||||||||||||||||||
2019 | 357 | |||||||||||||||||||||||||||||
Thereafter | 1,380 | |||||||||||||||||||||||||||||
Total | $ | 3,622 | ||||||||||||||||||||||||||||
Future minimum rent payments under these lease agreements, including renewal options and rent escalation clauses, are as follows (in millions): | ||||||||||||||||||||||||||||||
Initial | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Year | ||||||||||||||||||||||||||||||
Land and other operating leases | various | $ | 15 | $ | 16 | $ | 15 | $ | 15 | $ | 15 | $ | 201 | $ | 277 | |||||||||||||||
Power plant operating leases: | ||||||||||||||||||||||||||||||
Greenleaf | 1998 | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||
KIAC | 2000 | 23 | 22 | 22 | 22 | 30 | — | 119 | ||||||||||||||||||||||
Total power plant leases | $ | 27 | $ | 22 | $ | 22 | $ | 22 | $ | 30 | $ | — | $ | 123 | ||||||||||||||||
Total leases | $ | 42 | $ | 38 | $ | 37 | $ | 37 | $ | 45 | $ | 201 | $ | 400 | ||||||||||||||||
Acquisitions_Divestitures_and_1
Acquisitions, Divestitures and Discontinued Operations (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Six Power Plants Disposed [Abstract] | |||||||
Six power plants disposed of [Table Text Block] | The six power plants included in the transaction are as follows: | ||||||
Plant Name | Plant Capacity | Location | |||||
Oneta Energy Center | 1,134 | MW | Coweta, OK | ||||
Carville Energy Center(1) | 501 | MW | St. Gabriel, LA | ||||
Decatur Energy Center | 795 | MW | Decatur, AL | ||||
Hog Bayou Energy Center | 237 | MW | Mobile, AL | ||||
Santa Rosa Energy Center | 225 | MW | Pace, FL | ||||
Columbia Energy Center(1) | 606 | MW | Calhoun County, SC | ||||
Total | 3,498 | MW | |||||
___________ | |||||||
-1 | Indicates combined-cycle cogeneration power plant. |
Property_Plant_and_Equipment_N1
Property, Plant and Equipment, Net (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Property, Plant and Equipment, Net [Abstract] | ||||||||||
Property, Plant and Equipment | As of December 31, 2014 and 2013, the components of property, plant and equipment are stated at cost less accumulated depreciation as follows (in millions): | |||||||||
2014 | 2013 | Depreciable Lives | ||||||||
Buildings, machinery and equipment | $ | 16,059 | $ | 15,838 | 3 – 47 Years | |||||
Geothermal properties | 1,294 | 1,265 | 13 – 59 Years | |||||||
Other | 203 | 164 | 3 – 47 Years | |||||||
17,556 | 17,267 | |||||||||
Less: Accumulated depreciation | 4,984 | 4,897 | ||||||||
12,572 | 12,370 | |||||||||
Land | 120 | 103 | ||||||||
Construction in progress | 498 | 522 | ||||||||
Property, plant and equipment, net | $ | 13,190 | $ | 12,995 | ||||||
Variable_Interest_Entities_and1
Variable Interest Entities and Unconsolidated Investments (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||
Variable Interest Entities and Unconsolidated Investments [Abstract] | ||||||||||||||||||||||||
Schedule of Condensed Financial Statements | Aggregated summarized financial data for our unconsolidated subsidiaries is set forth below (in millions): | |||||||||||||||||||||||
Condensed Combined Balance Sheets | ||||||||||||||||||||||||
of Our Unconsolidated Subsidiaries | ||||||||||||||||||||||||
December 31, 2014 and 2013 | ||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||
Cash and cash equivalents | $ | 58 | $ | 57 | ||||||||||||||||||||
Current assets | 28 | 25 | ||||||||||||||||||||||
Property, plant and equipment, net | 532 | 588 | ||||||||||||||||||||||
Other assets | 2 | 2 | ||||||||||||||||||||||
Total assets | $ | 620 | $ | 672 | ||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||
Current maturities of long-term debt | $ | 21 | $ | 23 | ||||||||||||||||||||
Current liabilities | 28 | 44 | ||||||||||||||||||||||
Long-term debt | 321 | 372 | ||||||||||||||||||||||
Long-term derivative liabilities | 51 | 35 | ||||||||||||||||||||||
Total liabilities | 421 | 474 | ||||||||||||||||||||||
Member's interest | 199 | 198 | ||||||||||||||||||||||
Total liabilities and member's interest | $ | 620 | $ | 672 | ||||||||||||||||||||
Condensed Combined Statements of Operations | ||||||||||||||||||||||||
of Our Unconsolidated Subsidiaries | ||||||||||||||||||||||||
For the Years Ended December 31, 2014, 2013 and 2012 | ||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||
Revenues | $ | 239 | $ | 207 | $ | 247 | ||||||||||||||||||
Operating expenses | 168 | 128 | 171 | |||||||||||||||||||||
Income from operations | 71 | 79 | 76 | |||||||||||||||||||||
Interest expense, net of interest income | 23 | 24 | 27 | |||||||||||||||||||||
Other (income) expense, net | — | (3 | ) | (2 | ) | |||||||||||||||||||
Net income | $ | 48 | $ | 58 | $ | 51 | ||||||||||||||||||
Schedule of Equity Method Investments | At December 31, 2014 and 2013, our equity method investments included on our Consolidated Balance Sheets were comprised of the following (in millions): | |||||||||||||||||||||||
Ownership Interest as of December 31, 2014 | 2014 | 2013 | ||||||||||||||||||||||
Greenfield LP | 50% | $ | 78 | $ | 76 | |||||||||||||||||||
Whitby | 50% | 17 | 17 | |||||||||||||||||||||
Total investments in power plants | $ | 95 | $ | 93 | ||||||||||||||||||||
Income (Loss) From Unconsolidated Investments in Power Plants and Distributions | Our equity interest in the net income from Greenfield LP and Whitby for the years ended December 31, 2014, 2013 and 2012, is recorded in (income) from unconsolidated investments in power plants. The following table sets forth details of our (income) from unconsolidated investments in power plants and distributions for the years indicated (in millions): | |||||||||||||||||||||||
(Income) from Unconsolidated | Distributions | |||||||||||||||||||||||
Investments in Power Plants | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | |||||||||||||||||||
Greenfield LP | $ | (10 | ) | $ | (16 | ) | $ | (17 | ) | $ | — | $ | 18 | $ | 22 | |||||||||
Whitby | (15 | ) | (14 | ) | (11 | ) | 13 | 9 | 7 | |||||||||||||||
Total | $ | (25 | ) | $ | (30 | ) | $ | (28 | ) | $ | 13 | $ | 27 | $ | 29 | |||||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||
Schedule of Long-term Debt Instruments | Our debt at December 31, 2014 and 2013, was as follows (in millions): | |||||||||||||||
2014 | 2013 | |||||||||||||||
First Lien Notes | $ | 2,075 | $ | 4,989 | ||||||||||||
Senior Unsecured Notes | 2,800 | — | ||||||||||||||
First Lien Term Loans | 2,799 | 2,828 | ||||||||||||||
Project financing, notes payable and other | 1,810 | 1,901 | ||||||||||||||
CCFC Term Loans | 1,596 | 1,191 | ||||||||||||||
Capital lease obligations | 202 | 203 | ||||||||||||||
Subtotal | 11,282 | 11,112 | ||||||||||||||
Less: Current maturities | 199 | 204 | ||||||||||||||
Total long-term debt | $ | 11,083 | $ | 10,908 | ||||||||||||
Schedule of Maturities of Long-term Debt | Contractual annual principal repayments or maturities of debt instruments as of December 31, 2014, are as follows (in millions): | |||||||||||||||
2015 | $ | 199 | ||||||||||||||
2016 | 205 | |||||||||||||||
2017 | 562 | |||||||||||||||
2018 | 1,730 | |||||||||||||||
2019 | 1,217 | |||||||||||||||
Thereafter | 7,393 | |||||||||||||||
Subtotal | 11,306 | |||||||||||||||
Less: Discount | 24 | |||||||||||||||
Total debt | $ | 11,282 | ||||||||||||||
First Lien Notes | Our First Lien Notes are summarized in the table below (in millions, except for interest rates): | |||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(3) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2019 First Lien Notes(1) | $ | — | $ | 320 | — | % | 8.2 | % | ||||||||
2020 First Lien Notes(1) | — | 875 | — | 8.2 | ||||||||||||
2021 First Lien Notes(1) | — | 1,600 | — | 7.7 | ||||||||||||
2022 First Lien Notes | 745 | 744 | 6.3 | 6.2 | ||||||||||||
2023 First Lien Notes(2) | 840 | 960 | 8 | 8 | ||||||||||||
2024 First Lien Notes | 490 | 490 | 6 | 5.9 | ||||||||||||
Total First Lien Notes | $ | 2,075 | $ | 4,989 | ||||||||||||
____________ | ||||||||||||||||
-1 | The 2019 First Lien Notes, 2020 First Lien Notes and 2021 First Lien Notes were repaid during the third quarter of 2014 with the proceeds from the issuance of our Senior Unsecured Notes, together with cash on hand, which are described in further detail below. | |||||||||||||||
-2 | In December 2014, we used cash on hand to redeem 10% of the original aggregate principal amount of our 2023 First Lien Notes, plus accrued and unpaid interest. On February 3, 2015, we additionally repurchased approximately $150 million of our 2023 First Lien Notes with the proceeds from our 2024 Senior Unsecured Notes, which is described in further detail below. | |||||||||||||||
-3 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
Senior Unsecured Notes [Table Text Block] | Our Senior Unsecured Notes are summarized in the table below (in millions, except for interest rates): | |||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2023 Senior Unsecured Notes | $ | 1,250 | $ | — | 5.6 | % | — | % | ||||||||
2025 Senior Unsecured Notes | 1,550 | — | 5.9 | — | ||||||||||||
Total Senior Unsecured Notes | $ | 2,800 | $ | — | ||||||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
First Lien Term Loans | Our First Lien Term Loans are summarized in the table below (in millions, except for interest rates): | |||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
2018 First Lien Term Loans | $ | 1,597 | $ | 1,614 | 4.3 | % | 4.3 | % | ||||||||
2019 First Lien Term Loan | 816 | 824 | 4.4 | 4.5 | ||||||||||||
2020 First Lien Term Loan | 386 | 390 | 4.3 | 4.3 | ||||||||||||
Total First Lien Term Loans | $ | 2,799 | $ | 2,828 | ||||||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
Project Financing Notes Payable and Other | The components of our project financing, notes payable and other are (in millions, except for interest rates): | |||||||||||||||
Outstanding at | Weighted Average | |||||||||||||||
December 31, | Effective Interest Rates(1) | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Russell City due 2023 | $ | 591 | $ | 593 | 6.2 | % | 4.9 | % | ||||||||
Steamboat due 2017 | 407 | 418 | 6.9 | 6.8 | ||||||||||||
OMEC due 2019 | 325 | 335 | 6.9 | 6.9 | ||||||||||||
Los Esteros due 2023 | 275 | 305 | 3.1 | 3.4 | ||||||||||||
Pasadena(2) | 122 | 135 | 8.9 | 8.9 | ||||||||||||
Bethpage Energy Center 3 due 2020-2025(3) | 82 | 88 | 7 | 7 | ||||||||||||
Gilroy note payable due 2014 | — | 15 | — | 11.2 | ||||||||||||
Other | 8 | 12 | — | — | ||||||||||||
Total | $ | 1,810 | $ | 1,901 | ||||||||||||
_____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount or premium. | |||||||||||||||
-2 | Represents a failed sale-leaseback transaction that is accounted for as financing transaction under U.S. GAAP. | |||||||||||||||
-3 | Represents a weighted average of first and second lien loans for the weighted average effective interest rates. | |||||||||||||||
CCFC Notes and CCFC Term Loans [Table Text Block] | Our CCFC Term Loans are summarized in the table below (in millions, except for interest rates): | |||||||||||||||
Outstanding at December 31, | Weighted Average | |||||||||||||||
Effective Interest Rates(1) | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
CCFC Term Loans | $ | 1,596 | $ | 1,191 | 3.4 | % | 3.3 | % | ||||||||
____________ | ||||||||||||||||
-1 | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||||||||||||||
Schedule of Future Minimum Lease Payments for Capital Leases | The following is a schedule by year of future minimum lease payments under capital leases and a failed sale-leaseback transaction related to our Pasadena Power Plant together with the present value of the net minimum lease payments as of December 31, 2014 (in millions): | |||||||||||||||
Sale-Leaseback Transactions(1) | Capital Lease | Total | ||||||||||||||
2015 | $ | 25 | $ | 47 | $ | 72 | ||||||||||
2016 | 25 | 41 | 66 | |||||||||||||
2017 | 17 | 39 | 56 | |||||||||||||
2018 | 21 | 38 | 59 | |||||||||||||
2019 | 21 | 20 | 41 | |||||||||||||
Thereafter | 85 | 151 | 236 | |||||||||||||
Total minimum lease payments | 194 | 336 | 530 | |||||||||||||
Less: Amount representing interest | 72 | 134 | 206 | |||||||||||||
Present value of net minimum lease payments | $ | 122 | $ | 202 | $ | 324 | ||||||||||
____________ | ||||||||||||||||
-1 | Amounts are accounted for as financing transactions under U.S. GAAP and are included in our project financing, notes payable and other amounts above. | |||||||||||||||
Schedule of Line of Credit Facilities | The table below represents amounts issued under our letter of credit facilities at December 31, 2014 and 2013 (in millions): | |||||||||||||||
2014 | 2013 | |||||||||||||||
Corporate Revolving Facility | $ | 223 | $ | 242 | ||||||||||||
CDHI | 214 | 218 | ||||||||||||||
Various project financing facilities | 207 | 170 | ||||||||||||||
Total | $ | 644 | $ | 630 | ||||||||||||
Fair Value, by Balance Sheet Grouping | The following table details the fair values and carrying values of our debt instruments at December 31, 2014 and 2013 (in millions): | |||||||||||||||
2014 | 2013 | |||||||||||||||
Fair Value | Carrying | Fair Value | Carrying | |||||||||||||
Value | Value | |||||||||||||||
First Lien Notes | $ | 2,247 | $ | 2,075 | $ | 5,317 | $ | 4,989 | ||||||||
Senior Unsecured Notes | 2,832 | 2,800 | — | — | ||||||||||||
First Lien Term Loans | 2,769 | 2,799 | 2,845 | 2,828 | ||||||||||||
Project financing, notes payable and other(1) | 1,734 | 1,688 | 1,772 | 1,766 | ||||||||||||
CCFC Term Loans | 1,540 | 1,596 | 1,179 | 1,191 | ||||||||||||
Total | $ | 11,122 | $ | 10,958 | $ | 11,113 | $ | 10,774 | ||||||||
____________ | ||||||||||||||||
-1 | Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP. |
Assets_and_Liabilities_with_Re1
Assets and Liabilities with Recurring Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Fair Value, Option, Quantitative Disclosures [Line Items] | ||||||||||||||||
Fair Value, Measurement Inputs, Disclosure | The following tables present our financial assets and liabilities that were accounted for at fair value on a recurring basis as of December 31, 2014 and 2013, by level within the fair value hierarchy: | |||||||||||||||
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2014 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 896 | $ | — | $ | — | $ | 896 | ||||||||
Margin deposits | 96 | — | — | 96 | ||||||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 2,134 | — | — | 2,134 | ||||||||||||
Commodity forward contracts(2) | — | 195 | 164 | 359 | ||||||||||||
Interest rate swaps | — | 4 | — | 4 | ||||||||||||
Total assets | $ | 3,126 | $ | 199 | $ | 164 | $ | 3,489 | ||||||||
Liabilities: | ||||||||||||||||
Margin deposits posted with us by our counterparties | $ | 47 | $ | — | $ | — | $ | 47 | ||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 1,870 | — | — | 1,870 | ||||||||||||
Commodity forward contracts(2) | — | 163 | 79 | 242 | ||||||||||||
Interest rate swaps | — | 114 | — | 114 | ||||||||||||
Total liabilities | $ | 1,917 | $ | 277 | $ | 79 | $ | 2,273 | ||||||||
Assets and Liabilities with Recurring Fair Value Measures as of December 31, 2013 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
(in millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Cash equivalents(1) | $ | 1,134 | $ | — | $ | — | $ | 1,134 | ||||||||
Margin deposits | 261 | — | — | 261 | ||||||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 434 | — | — | 434 | ||||||||||||
Commodity forward contracts(2) | — | 75 | 32 | 107 | ||||||||||||
Interest rate swaps | — | 9 | — | 9 | ||||||||||||
Total assets | $ | 1,829 | $ | 84 | $ | 32 | $ | 1,945 | ||||||||
Liabilities: | ||||||||||||||||
Margin deposits posted with us by our counterparties | $ | 5 | $ | — | $ | — | $ | 5 | ||||||||
Commodity instruments: | ||||||||||||||||
Commodity exchange traded futures and swaps contracts | 495 | — | — | 495 | ||||||||||||
Commodity forward contracts(2) | — | 52 | 18 | 70 | ||||||||||||
Interest rate swaps | — | 129 | — | 129 | ||||||||||||
Total liabilities | $ | 500 | $ | 181 | $ | 18 | $ | 699 | ||||||||
___________ | ||||||||||||||||
-1 | As of December 31, 2014 and 2013, we had cash equivalents of $679 million and $889 million included in cash and cash equivalents and $217 million and $245 million included in restricted cash, respectively. | |||||||||||||||
-2 | Includes OTC swaps and options. | |||||||||||||||
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | The following table presents quantitative information for the unobservable inputs used in our most significant level 3 fair value measurements at December 31, 2014 and 2013: | |||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
31-Dec-14 | ||||||||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||||||||
(Liability) | Valuation Technique | Input | Range | |||||||||||||
(in millions) | ||||||||||||||||
Power Contracts | $ | 74 | Discounted cash flow | Market price (per MWh) | $14.00 — $122.79/MWh | |||||||||||
Natural Gas Contracts | $ | 5 | Discounted cash flow | Market price (per MMBtu) | $1.00 — $10.86/MMBtu | |||||||||||
Power Congestion Products | $ | 9 | Discounted cash flow | Market price (per MWh) | $(19.56) — $19.56/MWh | |||||||||||
Quantitative Information about Level 3 Fair Value Measurements | ||||||||||||||||
31-Dec-13 | ||||||||||||||||
Fair Value, Net Asset | Significant Unobservable | |||||||||||||||
(Liability) | Valuation Technique | Input | Range | |||||||||||||
(in millions) | ||||||||||||||||
Power Contracts | $ | 7 | Discounted cash flow | Market price (per MWh) | $28.92 — $53.15/MWh | |||||||||||
Power Congestion Products | $ | 7 | Discounted cash flow | Market price (per MWh) | $(8.79) — $11.53/MWh | |||||||||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table sets forth a reconciliation of changes in the fair value of our net derivative assets (liabilities) classified as level 3 in the fair value hierarchy for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Balance, beginning of period | $ | 14 | $ | 16 | $ | 17 | ||||||||||
Realized and mark-to-market gains: | ||||||||||||||||
Included in net income: | ||||||||||||||||
Included in operating revenues(1) | 70 | 5 | 8 | |||||||||||||
Included in fuel and purchased energy expense(2) | 5 | — | — | |||||||||||||
Purchases, issuances and settlements: | ||||||||||||||||
Purchases | 6 | 6 | 3 | |||||||||||||
Issuances | — | (2 | ) | (1 | ) | |||||||||||
Settlements | (10 | ) | (11 | ) | (11 | ) | ||||||||||
Transfers in and/or out of level 3(3): | ||||||||||||||||
Transfers into level 3(4) | — | — | — | |||||||||||||
Transfers out of level 3(5) | — | — | — | |||||||||||||
Balance, end of period | $ | 85 | $ | 14 | $ | 16 | ||||||||||
Change in unrealized gains relating to instruments still held at end of period | $ | 75 | $ | 5 | $ | 8 | ||||||||||
___________ | ||||||||||||||||
-1 | For power contracts and other power-related products, included on our Consolidated Statements of Operations. | |||||||||||||||
-2 | For natural gas contracts, swaps and options, included on our Consolidated Statements of Operations. | |||||||||||||||
-3 | We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
-4 | There were no transfers out of level 2 into level 3 for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
-5 | There were no transfers out of level 3 for the years ended December 31, 2014, 2013 and 2012. |
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||
Derivative Instruments [Abstract] | ||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | As of December 31, 2014 and 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 | |||||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||||
Power (MWh) | (62 | ) | (29 | ) | ||||||||||||||||||||||
Natural gas (MMBtu) | 291 | 448 | ||||||||||||||||||||||||
Interest rate swaps | $ | 1,431 | $ | 1,527 | ||||||||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following tables present the fair values of our derivative instruments recorded on our Consolidated Balance Sheets by location and hedge type at December 31, 2014 and 2013 (in millions): | |||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Commodity | Interest Rate | Total | ||||||||||||||||||||||||
Instruments | Swaps | Derivative | ||||||||||||||||||||||||
Instruments | ||||||||||||||||||||||||||
Balance Sheet Presentation | ||||||||||||||||||||||||||
Current derivative assets | $ | 2,058 | $ | — | $ | 2,058 | ||||||||||||||||||||
Long-term derivative assets | 435 | 4 | 439 | |||||||||||||||||||||||
Total derivative assets | $ | 2,493 | $ | 4 | $ | 2,497 | ||||||||||||||||||||
Current derivative liabilities | $ | 1,738 | $ | 44 | $ | 1,782 | ||||||||||||||||||||
Long-term derivative liabilities | 374 | 70 | 444 | |||||||||||||||||||||||
Total derivative liabilities | $ | 2,112 | $ | 114 | $ | 2,226 | ||||||||||||||||||||
Net derivative assets (liabilities) | $ | 381 | $ | (110 | ) | $ | 271 | |||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Commodity | Interest Rate | Total | ||||||||||||||||||||||||
Instruments | Swaps | 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 assets (liabilities) | $ | (24 | ) | $ | (120 | ) | $ | (144 | ) | |||||||||||||||||
Derivative Instrument by Accounting Designation | ||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||
of Derivative | of Derivative | of Derivative | of Derivative | |||||||||||||||||||||||
Assets | Liabilities | Assets | Liabilities | |||||||||||||||||||||||
Derivatives designated as cash flow hedging instruments: | ||||||||||||||||||||||||||
Interest rate swaps | $ | 4 | $ | 112 | $ | 9 | $ | 115 | ||||||||||||||||||
Total derivatives designated as cash flow hedging instruments | $ | 4 | $ | 112 | $ | 9 | $ | 115 | ||||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||||||||
Commodity instruments | $ | 2,493 | $ | 2,112 | $ | 541 | $ | 565 | ||||||||||||||||||
Interest rate swaps | — | 2 | — | 14 | ||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 2,493 | $ | 2,114 | $ | 541 | $ | 579 | ||||||||||||||||||
Total derivatives | $ | 2,497 | $ | 2,226 | $ | 550 | $ | 694 | ||||||||||||||||||
Offsetting Assets [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 December 31, 2014 and 2013 (in millions): | |||||||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||||||
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||
Gross Amounts Presented on our Consolidated Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated Balance Sheets | Margin/Cash (Received) Posted (1) | Net Amount | |||||||||||||||||||||||
Derivative assets: | ||||||||||||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | 2,134 | $ | (1,865 | ) | $ | (269 | ) | $ | — | ||||||||||||||||
Commodity forward contracts | 359 | (222 | ) | — | 137 | |||||||||||||||||||||
Interest rate swaps | 4 | — | — | 4 | ||||||||||||||||||||||
Total derivative assets | $ | 2,497 | $ | (2,087 | ) | $ | (269 | ) | $ | 141 | ||||||||||||||||
Derivative (liabilities): | ||||||||||||||||||||||||||
Commodity exchange traded futures and swaps contracts | $ | (1,870 | ) | $ | 1,865 | $ | 5 | $ | — | |||||||||||||||||
Commodity forward contracts | (242 | ) | 222 | 10 | (10 | ) | ||||||||||||||||||||
Interest rate swaps | (114 | ) | — | — | (114 | ) | ||||||||||||||||||||
Total derivative (liabilities) | $ | (2,226 | ) | $ | 2,087 | $ | 15 | $ | (124 | ) | ||||||||||||||||
Net derivative assets (liabilities) | $ | 271 | $ | — | $ | (254 | ) | $ | 17 | |||||||||||||||||
31-Dec-13 | ||||||||||||||||||||||||||
Gross Amounts Not Offset on the Consolidated Balance Sheets | ||||||||||||||||||||||||||
Gross Amounts Presented on our Consolidated Balance Sheets | Derivative Asset (Liability) not Offset on the Consolidated 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 and natural gas and power prepayments posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 9 for a further discussion of our collateral. | |||||||||||||||||||||||||
Realized Unrealized Gain Loss by Instrument | The following tables detail the components of our total activity for both the net realized gain (loss) and the net mark-to-market gain (loss) recognized from our derivative instruments in earnings and where these components were recorded on our Consolidated Statements of Operations for the years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Realized gain (loss)(1) | ||||||||||||||||||||||||||
Commodity derivative instruments | $ | 110 | $ | 86 | $ | 387 | ||||||||||||||||||||
Interest rate swaps | — | — | (157 | ) | ||||||||||||||||||||||
Total realized gain (loss) | $ | 110 | $ | 86 | $ | 230 | ||||||||||||||||||||
Mark-to-market gain (loss)(2) | ||||||||||||||||||||||||||
Commodity derivative instruments | $ | 342 | $ | (14 | ) | $ | (82 | ) | ||||||||||||||||||
Interest rate swaps | 11 | 2 | 154 | |||||||||||||||||||||||
Total mark-to-market gain (loss) | $ | 353 | $ | (12 | ) | $ | 72 | |||||||||||||||||||
Total activity, net | $ | 463 | $ | 74 | $ | 302 | ||||||||||||||||||||
___________ | ||||||||||||||||||||||||||
-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 mark-to-market 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 [Table Text Block] | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||
Realized and mark-to-market gain (loss) | ||||||||||||||||||||||||||
Derivatives contracts included in operating revenues | $ | 384 | $ | (119 | ) | $ | 187 | |||||||||||||||||||
Derivatives contracts included in fuel and purchased energy expense | 68 | 191 | 118 | |||||||||||||||||||||||
Interest rate swaps included in interest expense | 11 | 2 | 11 | |||||||||||||||||||||||
Loss on interest rate derivatives | — | — | (14 | ) | ||||||||||||||||||||||
Total activity, net | $ | 463 | $ | 74 | $ | 302 | ||||||||||||||||||||
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 years ended December 31, 2014, 2013 and 2012 (in millions): | |||||||||||||||||||||||||
Gains (Loss) Recognized in | Gain (Loss) Reclassified from | |||||||||||||||||||||||||
OCI (Effective Portion)(3) | AOCI into Income (Effective | |||||||||||||||||||||||||
Portion)(4) | ||||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | Affected Line Item on the Consolidated Statements of Operations | ||||||||||||||||||||
Commodity derivative instruments(1): | ||||||||||||||||||||||||||
Power derivative instruments | $ | — | $ | — | $ | (97 | ) | $ | — | $ | — | $ | 118 | Commodity revenue | ||||||||||||
Natural gas derivative instruments | — | — | 59 | — | — | (66 | ) | Commodity expense | ||||||||||||||||||
Interest rate swaps(2) | (2 | ) | 86 | (43 | ) | (46 | ) | (5) | (51 | ) | (5) | (32 | ) | Interest expense | ||||||||||||
Total(3) | $ | (2 | ) | $ | 86 | $ | (81 | ) | $ | (46 | ) | $ | (51 | ) | $ | 20 | ||||||||||
____________ | ||||||||||||||||||||||||||
-1 | There were no commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2014 and 2013. We recorded a gain on hedge ineffectiveness of $2 million related to our commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2012. | |||||||||||||||||||||||||
-2 | We did not record any gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||
-3 | We recorded income tax expense of nil and $3 million for the years ended December 31, 2014 and 2013, respectively, and an income tax benefit of $11 million for the year ended December 31, 2012, in AOCI related to our cash flow hedging activities. | |||||||||||||||||||||||||
-4 | Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $149 million, $148 million and $222 million at December 31, 2014, 2013 and 2012, respectively. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $12 million, $11 million and $20 million at December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
-5 | Includes a loss of $10 million and $12 million that was reclassified from AOCI to interest expense for the years ended December 31, 2014 and 2013, respectively, where the hedged transactions are no longer expected to occur. |
Use_of_Collateral_Tables
Use of Collateral (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Use of Collateral [Abstract] | ||||||||
Schedule of Collateral | The table below summarizes the balances outstanding under margin deposits, natural gas and power prepayments, and exposure under letters of credit and first priority liens for commodity procurement and risk management activities as of December 31, 2014 and 2013 (in millions): | |||||||
2014 | 2013 | |||||||
Margin deposits(1) | $ | 96 | $ | 261 | ||||
Natural gas and power prepayments | 22 | 28 | ||||||
Total margin deposits and natural gas and power prepayments with our counterparties(2) | $ | 118 | $ | 289 | ||||
Letters of credit issued | $ | 450 | $ | 488 | ||||
First priority liens under power and natural gas agreements | 48 | 31 | ||||||
First priority liens under interest rate swap agreements | 116 | 132 | ||||||
Total letters of credit and first priority liens with our counterparties | $ | 614 | $ | 651 | ||||
Margin deposits posted with us by our counterparties(1)(3) | $ | 47 | $ | 5 | ||||
Letters of credit posted with us by our counterparties | 61 | 2 | ||||||
Total margin deposits and letters of credit posted with us by our counterparties | $ | 108 | $ | 7 | ||||
___________ | ||||||||
-1 | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 8 for further discussion of our derivative instruments subject to master netting arrangements. | |||||||
-2 | At December 31, 2014 and 2013, $109 million and $272 million, respectively, were included in margin deposits and other prepaid expense and $9 million and $17 million, respectively, were included in other assets on our Consolidated Balance Sheets. | |||||||
-3 | Included in other current liabilities on our Consolidated Balance Sheets. |
Income_Taxes_Income_Taxes_Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | The jurisdictional components of income from continuing operations before income tax expense, attributable to Calpine, for the years ended December 31, 2014, 2013 and 2012, are as follows (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
U.S. | $ | 942 | $ | (13 | ) | $ | 194 | |||||
International | 26 | 29 | 24 | |||||||||
Total | $ | 968 | $ | 16 | $ | 218 | ||||||
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense from continuing operations for the years ended December 31, 2014, 2013 and 2012, consisted of the following (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current: | ||||||||||||
Federal | $ | (1 | ) | $ | (2 | ) | $ | (12 | ) | |||
State | 19 | (9 | ) | 16 | ||||||||
Foreign | (1 | ) | (1 | ) | 14 | |||||||
Total current | 17 | (12 | ) | 18 | ||||||||
Deferred: | ||||||||||||
Federal | — | 1 | 11 | |||||||||
State | (1 | ) | 4 | (5 | ) | |||||||
Foreign | 6 | 9 | (5 | ) | ||||||||
Total deferred | 5 | 14 | 1 | |||||||||
Total income tax expense | $ | 22 | $ | 2 | $ | 19 | ||||||
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of the federal statutory rate of 35% to our effective rate from continuing operations for the years ended December 31, 2014, 2013 and 2012, is as follows: | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory tax expense (benefit) rate | 35 | % | 35 | % | 35 | % | ||||||
State tax expense (benefit), net of federal benefit | 1.9 | (69.8 | ) | 3.2 | ||||||||
Depletion in excess of basis | (0.3 | ) | (14.7 | ) | (0.2 | ) | ||||||
Federal refunds | — | — | (4.7 | ) | ||||||||
Valuation allowances against future tax benefits | (35.8 | ) | 89.8 | (30.3 | ) | |||||||
Valuation allowance related to foreign taxes | — | (19.8 | ) | (8.2 | ) | |||||||
Distributions from foreign affiliates and foreign taxes | 1.2 | (10.8 | ) | 3.7 | ||||||||
Intraperiod allocation | — | 4.5 | 4.6 | |||||||||
Change in unrecognized tax benefits | (0.4 | ) | (30.1 | ) | 5.1 | |||||||
Disallowed compensation | 0.1 | 11.7 | 0.4 | |||||||||
Stock-based compensation | 0.1 | 8.6 | 0.2 | |||||||||
Lobbying contributions | 0.1 | 3.3 | 0.3 | |||||||||
Other differences | 0.4 | 4.8 | (0.4 | ) | ||||||||
Effective income tax expense rate | 2.3 | % | 12.5 | % | 8.7 | % | ||||||
Schedule of Deferred Tax Assets and Liabilities | The components of deferred income taxes as of December 31, 2014 and 2013, are as follows (in millions): | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
NOL and credit carryforwards | $ | 2,873 | $ | 3,120 | ||||||||
Taxes related to risk management activities and derivatives | 61 | 60 | ||||||||||
Reorganization items and impairments | 216 | 262 | ||||||||||
Foreign capital losses | 16 | 18 | ||||||||||
Other differences | — | 104 | ||||||||||
Deferred tax assets before valuation allowance | 3,166 | 3,564 | ||||||||||
Valuation allowance | (1,836 | ) | (2,246 | ) | ||||||||
Total deferred tax assets | 1,330 | 1,318 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Property, plant and equipment | (1,305 | ) | (1,310 | ) | ||||||||
Other differences | (21 | ) | — | |||||||||
Total deferred tax liabilities | (1,326 | ) | (1,310 | ) | ||||||||
Net deferred tax asset | 4 | 8 | ||||||||||
Less: Current portion deferred tax asset (liability) | (14 | ) | 12 | |||||||||
Less: Non-current deferred tax asset | 19 | 7 | ||||||||||
Deferred income tax liability, non-current | $ | (1 | ) | $ | (11 | ) | ||||||
Schedule of Income Tax Expense (Benefit) Intraperiod Tax Allocation | The following table details the effects of our intraperiod tax allocations for the years ended December 31, 2014, 2013 and 2012 (in millions). | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Intraperiod tax allocation expense included in continuing operations | $ | — | $ | 1 | $ | 9 | ||||||
Intraperiod tax allocation benefit included in OCI | $ | — | $ | (1 | ) | $ | (9 | ) | ||||
Schedule of Income Tax Contingencies | A reconciliation of the beginning and ending amounts of our unrecognized tax benefits for the years ended December 31, 2014, 2013 and 2012, is as follows (in millions): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | (68 | ) | $ | (92 | ) | $ | (74 | ) | |||
Increases related to prior year tax positions | (4 | ) | (7 | ) | (19 | ) | ||||||
Decreases related to prior year tax positions | 8 | 8 | 1 | |||||||||
Decreases related to settlements | 8 | 10 | — | |||||||||
Decrease related to lapse of statute of limitations | — | 13 | — | |||||||||
Balance, end of period | $ | (56 | ) | $ | (68 | ) | $ | (92 | ) |
Earnings_Loss_per_Share_Tables
Earnings (Loss) per Share (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Earnings (Loss) per Share [Abstract] | |||||||||
Schedule of Weighted Average Number of Shares | Reconciliations of the amounts used in the basic and diluted earnings per common share computations for the years ended December 31, 2014, 2013 and 2012, are as follows (shares in thousands): | ||||||||
2014 | 2013 | 2012 | |||||||
Diluted weighted average shares calculation: | |||||||||
Weighted average shares outstanding (basic) | 404,837 | 440,666 | 467,752 | ||||||
Share-based awards | 4,523 | 4,107 | 3,591 | ||||||
Weighted average shares outstanding (diluted) | 409,360 | 444,773 | 471,343 | ||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | We excluded the following items from diluted earnings per common share for the years ended December 31, 2014, 2013 and 2012, because they were anti-dilutive (shares in thousands): | ||||||||
2014 | 2013 | 2012 | |||||||
Share-based awards | 2,859 | 5,062 | 10,302 | ||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Stock-Based Compensation [Abstract] | |||||||||||||
Schedule of Share-based Compensation, Activity [Table Text Block] | A summary of our performance share unit activity for the year ended December 31, 2014, is as follows: | ||||||||||||
Number of | Weighted | ||||||||||||
Performance Share Units | Average | ||||||||||||
Grant-Date | |||||||||||||
Fair Value | |||||||||||||
Nonvested — December 31, 2013 | 449,798 | $ | 21.25 | ||||||||||
Granted | 461,393 | $ | 22.56 | ||||||||||
Forfeited | 28,400 | $ | 21.87 | ||||||||||
Vested(1) | 15,312 | $ | 21.25 | ||||||||||
Nonvested — December 31, 2014 | 867,479 | $ | 21.93 | ||||||||||
___________ | |||||||||||||
-1 | In accordance with the applicable performance share unit agreements, performance share units granted to employees who meet the retirement eligibility requirements stipulated in the Equity Plan are fully vested upon the later of the date on which the employee becomes eligible to retire or one-year anniversary of the grant date. | ||||||||||||
Schedule of Non-Qualified Stock Option Activity | A summary of all of our non-qualified stock option activity for the Calpine Equity Incentive Plans for the year ended December 31, 2014, is as follows: | ||||||||||||
Number of | Weighted Average | Weighted | Aggregate | ||||||||||
Shares | Exercise Price | Average | Intrinsic Value | ||||||||||
Remaining | (in millions) | ||||||||||||
Term | |||||||||||||
(in years) | |||||||||||||
Outstanding — December 31, 2013 | 14,114,289 | $ | 18.25 | 3.1 | $ | 36 | |||||||
Granted | — | $ | — | ||||||||||
Exercised | 2,951,947 | $ | 16.2 | ||||||||||
Forfeited | 69,122 | $ | 15.81 | ||||||||||
Expired | 6,900 | $ | 17.69 | ||||||||||
Outstanding — December 31, 2014 | 11,086,320 | $ | 18.82 | 2 | $ | 43 | |||||||
Exercisable — December 31, 2014 | 10,336,806 | $ | 19.07 | 1.7 | $ | 38 | |||||||
Vested and expected to vest – December 31, 2014 | 11,076,617 | $ | 18.82 | 2 | $ | 43 | |||||||
Schedule of Assumptions Used to Estimate Fair Value for Options | Certain assumptions were used in order to estimate fair value for options as noted in the following table. | ||||||||||||
2013 | 2012 | ||||||||||||
Expected term (in years)(1) | 6.5 | 6.5 | |||||||||||
Risk-free interest rate(2) | 1.4 | % | 1.2 – 1.6 | % | |||||||||
Expected volatility(3) | 25.6 | % | 27.0 – 30.5 | % | |||||||||
Dividend yield(4) | — | — | |||||||||||
Weighted average grant-date fair value (per option) | $ | 5.31 | $ | 5.18 | |||||||||
___________ | |||||||||||||
-1 | Expected term calculated using the simplified method prescribed by the SEC due to the lack of sufficient historical exercise data to provide a reasonable basis to estimate the expected term. | ||||||||||||
-2 | Zero Coupon U.S. Treasury rate or equivalent based on expected term. | ||||||||||||
-3 | Volatility calculated using the implied volatility of our exchange traded stock options. | ||||||||||||
-4 | We have never paid cash dividends on our common stock, and we do not anticipate any cash dividend payments on our common stock in the near future | ||||||||||||
Schedule of Restricted Stock and Restricted Stock Unit Activity | A summary of our restricted stock and restricted stock unit activity for the Calpine Equity Incentive Plans for the year ended December 31, 2014, is as follows: | ||||||||||||
Number of | Weighted | ||||||||||||
Restricted | Average | ||||||||||||
Stock Awards | Grant-Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested — December 31, 2013 | 4,431,841 | $ | 16.45 | ||||||||||
Granted | 1,885,049 | $ | 19.34 | ||||||||||
Forfeited | 430,059 | $ | 17.67 | ||||||||||
Vested | 1,684,963 | $ | 15.51 | ||||||||||
Nonvested — December 31, 2014 | 4,201,868 | $ | 18.01 | ||||||||||
Capital_Structure_Tables
Capital Structure (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Capital Structure [Abstract] | |||||||||
Schedule of Common Stock Activity | The table below summarizes our common stock activity for the years ended December 31, 2014, 2013 and 2012. | ||||||||
Shares | Shares | Shares | |||||||
Issued | Held in | Outstanding | |||||||
Treasury | |||||||||
Balance, December 31, 2011 | 490,468,815 | (8,725,077 | ) | 481,743,738 | |||||
Shares issued under Calpine Equity Incentive Plans | 2,026,285 | (284,376 | ) | 1,741,909 | |||||
Share repurchase program | — | (26,436,677 | ) | (26,436,677 | ) | ||||
Balance, December 31, 2012 | 492,495,100 | (35,446,130 | ) | 457,048,970 | |||||
Shares issued under Calpine Equity Incentive Plans | 5,345,956 | (2,323,828 | ) | 3,022,128 | |||||
Share repurchase program | — | (31,032,110 | ) | (31,032,110 | ) | ||||
Balance, December 31, 2013 | 497,841,056 | (68,802,068 | ) | 429,038,988 | |||||
Shares issued under Calpine Equity Incentive Plans | 4,445,966 | (1,879,167 | ) | 2,566,799 | |||||
Share repurchase program | — | (49,684,523 | ) | (49,684,523 | ) | ||||
Balance, December 31, 2014 | 502,287,022 | (120,365,758 | ) | 381,921,264 | |||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Power Plant and Land and Other Operating Leases | Leases — We have contracts, such as certain tolling agreements, which we account for as operating leases under U.S. GAAP. Generally, we levelize certain components of these contract revenues on a straight-line basis over the term of the contract. The total contractual future minimum lease rentals for our contracts accounted for as operating leases at December 31, 2014, are as follows (in millions): | |||||||||||||||||||||||||||||
2015 | $ | 561 | ||||||||||||||||||||||||||||
2016 | 495 | |||||||||||||||||||||||||||||
2017 | 433 | |||||||||||||||||||||||||||||
2018 | 396 | |||||||||||||||||||||||||||||
2019 | 357 | |||||||||||||||||||||||||||||
Thereafter | 1,380 | |||||||||||||||||||||||||||||
Total | $ | 3,622 | ||||||||||||||||||||||||||||
Future minimum rent payments under these lease agreements, including renewal options and rent escalation clauses, are as follows (in millions): | ||||||||||||||||||||||||||||||
Initial | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Year | ||||||||||||||||||||||||||||||
Land and other operating leases | various | $ | 15 | $ | 16 | $ | 15 | $ | 15 | $ | 15 | $ | 201 | $ | 277 | |||||||||||||||
Power plant operating leases: | ||||||||||||||||||||||||||||||
Greenleaf | 1998 | $ | 4 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 4 | |||||||||||||||
KIAC | 2000 | 23 | 22 | 22 | 22 | 30 | — | 119 | ||||||||||||||||||||||
Total power plant leases | $ | 27 | $ | 22 | $ | 22 | $ | 22 | $ | 30 | $ | — | $ | 123 | ||||||||||||||||
Total leases | $ | 42 | $ | 38 | $ | 37 | $ | 37 | $ | 45 | $ | 201 | $ | 400 | ||||||||||||||||
Schedule of Future Minimum Lease Payments for Office and Equipment Leases | Future minimum lease payments under these leases are as follows (in millions): | |||||||||||||||||||||||||||||
2015 | $ | 11 | ||||||||||||||||||||||||||||
2016 | 10 | |||||||||||||||||||||||||||||
2017 | 9 | |||||||||||||||||||||||||||||
2018 | 9 | |||||||||||||||||||||||||||||
2019 | 8 | |||||||||||||||||||||||||||||
Thereafter | 8 | |||||||||||||||||||||||||||||
Total | $ | 55 | ||||||||||||||||||||||||||||
Schedule Of Future Minimum Payments For Commodities [Table Text Block] | At December 31, 2014, we had future commitments for the purchase, transportation, or storage of commodities as detailed below (in millions): | |||||||||||||||||||||||||||||
2015 | $ | 390 | ||||||||||||||||||||||||||||
2016 | 297 | |||||||||||||||||||||||||||||
2017 | 193 | |||||||||||||||||||||||||||||
2018 | 152 | |||||||||||||||||||||||||||||
2019 | 109 | |||||||||||||||||||||||||||||
Thereafter | 622 | |||||||||||||||||||||||||||||
Total | $ | 1,763 | ||||||||||||||||||||||||||||
Schedule of Guarantor Obligations | At December 31, 2014, guarantees of subsidiary debt, standby letters of credit and surety bonds to third parties and guarantees of subsidiary operating lease payments and their respective expiration dates were as follows (in millions): | |||||||||||||||||||||||||||||
Guarantee Commitments | 2015 | 2016 | 2017 | 2018 | 2019 | Thereafter | Total | |||||||||||||||||||||||
Guarantee of subsidiary debt(1) | $ | 37 | $ | 36 | $ | 26 | $ | 31 | $ | 30 | $ | 148 | $ | 308 | ||||||||||||||||
Standby letters of credit(2)(3)(5) | 572 | 14 | 20 | — | — | 38 | 644 | |||||||||||||||||||||||
Surety bonds(4)(5)(6) | — | — | — | — | — | 4 | 4 | |||||||||||||||||||||||
Guarantee of subsidiary operating lease payments(5) | 4 | — | — | — | — | — | 4 | |||||||||||||||||||||||
Total | $ | 613 | $ | 50 | $ | 46 | $ | 31 | $ | 30 | $ | 190 | $ | 960 | ||||||||||||||||
____________ | ||||||||||||||||||||||||||||||
-1 | Represents Calpine Corporation guarantees of certain power plant capital leases and related interest. All guaranteed capital leases are recorded on our Consolidated Balance Sheets. | |||||||||||||||||||||||||||||
-2 | The standby letters of credit disclosed above represent those disclosed in Note 6. | |||||||||||||||||||||||||||||
-3 | Letters of credit are renewed annually and as such all amounts are reflected in the year of letter of credit expiration. The related commercial obligations extend for multiple years, therefore, renewal of the letter of credit will likely follow the term of the associated commercial obligation. | |||||||||||||||||||||||||||||
-4 | The majority of surety bonds do not have expiration or cancellation dates. | |||||||||||||||||||||||||||||
-5 | These are contingent off balance sheet obligations. | |||||||||||||||||||||||||||||
-6 | As of December 31, 2014, $2 million of cash collateral is outstanding related to these bonds. |
Segment_and_Significant_Custom1
Segment and Significant Customer Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Segment and Significant Customer Information [Abstract] | ||||||||||||||||||||
Schedule of Financial Data for Segments | The tables below show our financial data for our segments for the periods indicated (in millions). | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 2,352 | $ | 3,229 | $ | 2,449 | $ | — | $ | 8,030 | ||||||||||
Intersegment revenues | 6 | 23 | 47 | (76 | ) | — | ||||||||||||||
Total operating revenues | $ | 2,358 | $ | 3,252 | $ | 2,496 | $ | (76 | ) | $ | 8,030 | |||||||||
Commodity Margin(1) | $ | 1,050 | $ | 760 | $ | 949 | $ | — | $ | 2,759 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | 220 | 142 | 48 | (31 | ) | 379 | ||||||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 385 | 313 | 302 | (31 | ) | 969 | ||||||||||||||
Depreciation and amortization expense | 245 | 191 | 168 | (1 | ) | 603 | ||||||||||||||
Sales, general and other administrative expense | 41 | 64 | 39 | — | 144 | |||||||||||||||
Other operating expenses | 50 | 5 | 32 | 1 | 88 | |||||||||||||||
Impairment loss | — | — | 123 | — | 123 | |||||||||||||||
(Gain) on sale of assets, net | — | — | (753 | ) | — | (753 | ) | |||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (25 | ) | — | (25 | ) | |||||||||||||
Income from operations | 549 | 329 | 1,111 | — | 1,989 | |||||||||||||||
Interest expense, net of interest income | 639 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 367 | |||||||||||||||||||
Income before income taxes | $ | 983 | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 1,937 | $ | 2,347 | $ | 2,017 | $ | — | $ | 6,301 | ||||||||||
Intersegment revenues | 5 | (4 | ) | 117 | (118 | ) | — | |||||||||||||
Total operating revenues | $ | 1,942 | $ | 2,343 | $ | 2,134 | $ | (118 | ) | $ | 6,301 | |||||||||
Commodity Margin(1) | $ | 1,020 | $ | 632 | $ | 916 | $ | — | $ | 2,568 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | (50 | ) | 51 | 27 | (31 | ) | (3 | ) | ||||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 365 | 269 | 292 | (31 | ) | 895 | ||||||||||||||
Depreciation and amortization expense | 227 | 165 | 203 | (2 | ) | 593 | ||||||||||||||
Sales, general and other administrative expense | 37 | 56 | 42 | 1 | 136 | |||||||||||||||
Other operating expenses | 45 | 3 | 33 | — | 81 | |||||||||||||||
Impairment loss | 16 | — | — | — | 16 | |||||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (30 | ) | — | (30 | ) | |||||||||||||
Income from operations | 280 | 190 | 403 | 1 | 874 | |||||||||||||||
Interest expense, net of interest income | 690 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 164 | |||||||||||||||||||
Income before income taxes | $ | 20 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||
West | Texas | East | Consolidation | Total | ||||||||||||||||
and | ||||||||||||||||||||
Elimination | ||||||||||||||||||||
Revenues from external customers | $ | 1,668 | $ | 1,857 | $ | 1,953 | $ | — | $ | 5,478 | ||||||||||
Intersegment revenues | 10 | 61 | 38 | (109 | ) | — | ||||||||||||||
Total operating revenues | $ | 1,678 | $ | 1,918 | $ | 1,991 | $ | (109 | ) | $ | 5,478 | |||||||||
Commodity Margin(1)(3)(4) | $ | 994 | $ | 570 | $ | 974 | $ | — | $ | 2,538 | ||||||||||
Add: Mark-to-market commodity activity, net and other(2) | (93 | ) | 87 | (47 | ) | (31 | ) | (84 | ) | |||||||||||
Less: | ||||||||||||||||||||
Plant operating expense | 368 | 247 | 337 | (30 | ) | 922 | ||||||||||||||
Depreciation and amortization expense | 203 | 142 | 219 | (2 | ) | 562 | ||||||||||||||
Sales, general and other administrative expense | 36 | 47 | 57 | — | 140 | |||||||||||||||
Other operating expenses | 42 | 5 | 34 | (3 | ) | 78 | ||||||||||||||
(Gain) on sale of assets, net | — | — | (222 | ) | — | (222 | ) | |||||||||||||
(Income) from unconsolidated investments in power plants | — | — | (28 | ) | — | (28 | ) | |||||||||||||
Income from operations | 252 | 216 | 530 | 4 | 1,002 | |||||||||||||||
Interest expense, net of interest income | 725 | |||||||||||||||||||
Loss on interest rate derivatives | 14 | |||||||||||||||||||
Debt extinguishment costs and other (income) expense, net | 45 | |||||||||||||||||||
Loss before income taxes | $ | 218 | ||||||||||||||||||
__________ | ||||||||||||||||||||
-1 | Our East segment includes Commodity Margin of $81 million, $152 million and $131 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to the six power plants in our East segment that were sold in July 2014. | |||||||||||||||||||
-2 | Includes $(5) million, $6 million and $1 million of lease levelization and $14 million, $14 million and $14 million of amortization expense for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||
-3 | Our East segment includes Commodity Margin of $52 million for the year ended December 31, 2012, related to Broad River, which was sold in December 2012. | |||||||||||||||||||
-4 | Our East segment includes Commodity Margin of $73 million for the year ended December 31, 2012, related to Riverside Energy Center, LLC, which was sold in December 2012. |
Quarterly_Consolidated_Financi1
Quarterly Consolidated Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||
Schedule of Quarterly Consolidated Financial Data (unaudited) | ||||||||||||||||
Quarter Ended | ||||||||||||||||
December 31 | September 30 | June 30 | March 31 | |||||||||||||
(in millions, except per share amounts) | ||||||||||||||||
2014 | ||||||||||||||||
Operating revenues | $ | 1,939 | $ | 2,187 | $ | 1,939 | $ | 1,965 | ||||||||
Income from operations | $ | 390 | $ | 1,126 | $ | 329 | $ | 144 | ||||||||
Net income (loss) attributable to Calpine | $ | 210 | $ | 614 | $ | 139 | $ | (17 | ) | |||||||
Net income (loss) per common share attributable to Calpine — Basic | $ | 0.55 | $ | 1.54 | $ | 0.33 | $ | (0.04 | ) | |||||||
Net income (loss) per common share attributable to Calpine — Diluted | $ | 0.54 | $ | 1.52 | $ | 0.33 | $ | (0.04 | ) | |||||||
2013 | ||||||||||||||||
Operating revenues | $ | 1,438 | $ | 2,050 | $ | 1,572 | $ | 1,241 | ||||||||
Income from operations | $ | 151 | $ | 597 | $ | 122 | $ | 4 | ||||||||
Net income (loss) attributable to Calpine | $ | (97 | ) | $ | 306 | $ | (70 | ) | $ | (125 | ) | |||||
Net income (loss) per common share attributable to Calpine — Basic | $ | (0.23 | ) | $ | 0.7 | $ | (0.16 | ) | $ | (0.28 | ) | |||||
Net income (loss) per common share attributable to Calpine — Diluted | $ | (0.23 | ) | $ | 0.7 | $ | (0.16 | ) | $ | (0.28 | ) | |||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | $195 | $203 | |
Non-current | 49 | 69 | |
Total | 244 | 272 | |
Basis Of Presentation and Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Cash and cash equivalents subject to project finance facilities and lease agreements | 257 | 292 | |
Property, plant and equipment, salvage value (as a percent) | 10.00% | ||
Property, plant and equipment, salvage value of rotables (as a percent) | 0.15% | ||
Osprey Energy Center Agreement Term | 0 years 27 months | ||
Impairment losses | 123 | 16 | 0 |
Asset retirement obligations | 47 | 44 | |
Freestone Energy Center [Member] | |||
Jointly Owned Plants [Abstract] | |||
Jointly Owned Utility Plant, Proportionate Ownership Share | 75.00% | ||
Jointly Owned Utility Plant, Gross Ownership Amount of Plant in Service | 389 | ||
Jointly Owned Utility Plant, Ownership Amount of Plant Accumulated Depreciation | -140 | ||
Jointly Owned Utility Plant, Ownership Amount of Construction Work in Progress | 0 | ||
Hidalgo Energy Center [Member] | |||
Jointly Owned Plants [Abstract] | |||
Jointly Owned Utility Plant, Proportionate Ownership Share | 78.50% | ||
Jointly Owned Utility Plant, Gross Ownership Amount of Plant in Service | 257 | ||
Jointly Owned Utility Plant, Ownership Amount of Plant Accumulated Depreciation | -104 | ||
Jointly Owned Utility Plant, Ownership Amount of Construction Work in Progress | 0 | ||
Debt Service | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 10 | 11 | |
Non-current | 25 | 41 | |
Total | 35 | 52 | |
Rent Reserve [Member] | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 4 | 3 | |
Non-current | 0 | 0 | |
Total | 4 | 3 | |
Construction Major Maintenance | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 54 | 35 | |
Non-current | 17 | 20 | |
Total | 71 | 55 | |
Security Project Insurance | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 127 | 151 | |
Non-current | 5 | 6 | |
Total | 132 | 157 | |
Other | |||
Restricted Cash and Cash Equivalents Items [Line Items] | |||
Current | 0 | 3 | |
Non-current | 2 | 2 | |
Total | $2 | $5 | |
Greenfield [Member] | |||
Basis Of Presentation and Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Ownership percentage in equity method investment | 50.00% | ||
Whitby [Member] | |||
Basis Of Presentation and Summary of Significant Accounting Policies (Textuals) [Abstract] | |||
Ownership percentage in equity method investment | 50.00% |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies Contractual Future Minimum Lease Receipt Table (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Summary of Significant Accounting Policies [Abstract] | |
Operating Leases, Future Minimum Payments Receivable, Current | $561 |
Operating Leases, Future Minimum Payments Receivable, in Two Years | 495 |
Operating Leases, Future Minimum Payments Receivable, in Three Years | 433 |
Operating Leases, Future Minimum Payments Receivable, in Four Years | 396 |
Operating Leases, Future Minimum Payments Receivable, in Five Years | 357 |
Operating Leases, Future Minimum Payments Receivable, Thereafter | 1,380 |
Operating Leases, Future Minimum Payments Receivable | $3,622 |
Acquisitions_Divestitures_and_2
Acquisitions, Divestitures and Discontinued Operations (Textuals) (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 27, 2012 | Jul. 03, 2014 | Sep. 30, 2014 | |
MW | MW | MW | |||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 10,365 | 9,427 | |||||
(Gain) on sale of power plants, net | $753 | $0 | $222 | ||||
Fore River Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 809 | ||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired | 530 | ||||||
Guadalupe Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 1,050 | ||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired | 625 | ||||||
Guadalupe Expansion Capacity [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 400 | ||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired | 15 | ||||||
Bosque Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 800 | ||||||
Business Acquisition, Purchase Price Allocation, Assets Acquired | 432 | ||||||
Block one power generation capacity | 250 | ||||||
Block two power generation capacity | 550 | ||||||
Riverside Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 603 | ||||||
Proceeds from Sale of Productive Assets | 402 | ||||||
Gain (Loss) on Disposition of Assets | 7 | ||||||
Broad River Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 847 | ||||||
Proceeds from Sale of Productive Assets | 423 | ||||||
Gain (Loss) on Disposition of Assets | 215 | ||||||
Ownership percentage before divestiture of business | 100.00% | ||||||
Incremental CCFC Term Loans [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Debt Instrument, Face Amount | 425 | ||||||
Six Power Plants [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from Sale of Productive Assets | 1,570 | ||||||
Number of power plants disposed of | 6 | ||||||
Ownership percentage before divestiture of business | 100.00% | ||||||
Working Capital Adjustment to Sale price | 2 | ||||||
Cost of Property Repairs and Maintenance | 12 | ||||||
Business Combination, Contingent Consideration, Liability | 4 | ||||||
(Gain) on sale of power plants, net | $753 | ||||||
Oneta Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 1,134 | ||||||
Carville Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 501 | [1] | |||||
Decatur Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 795 | ||||||
Hog Bayou Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 237 | ||||||
Santa Rosa Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 225 | ||||||
Columbia Energy Center [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 606 | [1] | |||||
Six Power Plants [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Power generation capacity | 3,498 | ||||||
[1] | Indicates combined-cycle cogeneration power plant. |
Property_Plant_and_Equipment_N2
Property, Plant and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Buildings, machinery and equipment | $16,059 | $15,838 | |
Geothermal properties | 1,294 | 1,265 | |
Other | 203 | 164 | |
Property, Plant and Equipment, Gross | 17,556 | 17,267 | |
Less: Accumulated depreciation | 4,984 | 4,897 | |
Property, Plant and Equipment, Gross, Less Accumulated Depreciation | 12,572 | 12,370 | |
Land | 120 | 103 | |
Construction in progress | 498 | 522 | |
Property, plant and equipment, net | 13,190 | 12,995 | |
Interest Costs, Capitalized During Period | $19 | $38 | $38 |
Building, Machinery and Equipment, Gross [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 years | ||
Building, Machinery and Equipment, Gross [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 47 years | ||
Geothermal Properties, Gross [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 13 years | ||
Geothermal Properties, Gross [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 59 years | ||
Property, Plant and Equipment, Other Types [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 3 years | ||
Property, Plant and Equipment, Other Types [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Estimated Useful Lives | 47 years |
Variable_Interest_Entities_and2
Variable Interest Entities and Unconsolidated Investments (Unconsolidated VIEs) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Equity Method Investments Included on Balance Sheet [Abstract] | ||
Equity Method Investments | $95 | $93 |
Greenfield [Member] | ||
Equity Method Investments Included on Balance Sheet [Abstract] | ||
Equity Method Investments | 78 | 76 |
Equity Method Investment, Ownership Percentage | 50.00% | |
Whitby [Member] | ||
Equity Method Investments Included on Balance Sheet [Abstract] | ||
Equity Method Investments | $17 | $17 |
Equity Method Investment, Ownership Percentage | 50.00% |
Variable_Interest_Entities_and3
Variable Interest Entities and Unconsolidated Investments (Unconsolidated Investements) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Loss from Unconsolidated Investments in Power Plants and Distributions [Line Items] | |||
(Income) from unconsolidated investments in power plants | ($25) | ($30) | ($28) |
Distributions from Equity Method Investments | 13 | 27 | 29 |
Greenfield [Member] | |||
Income Loss from Unconsolidated Investments in Power Plants and Distributions [Line Items] | |||
(Income) from unconsolidated investments in power plants | -10 | -16 | -17 |
Distributions from Equity Method Investments | 0 | 18 | 22 |
Whitby [Member] | |||
Income Loss from Unconsolidated Investments in Power Plants and Distributions [Line Items] | |||
(Income) from unconsolidated investments in power plants | -15 | -14 | -11 |
Distributions from Equity Method Investments | $13 | $9 | $7 |
Variable_Interest_Entities_and4
Variable Interest Entities and Unconsolidated Investments (Equity Method Investment Summarized Financial Information) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||
Equity Method Investment Summarized Financial Information Cash and Cash Equivalents | $58 | $57 | |
Equity Method Investment, Summarized Financial Information, Current Assets | 28 | 25 | |
Equity Method Investment, Summarized Financial Information, Property, Plant and Equipment, net | 532 | 588 | |
Equity Method Investment, Summarized Financial Information, Noncurrent Assets | 2 | 2 | |
Equity Method Investment, Summarized Financial Information, Assets | 620 | 672 | |
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | |||
Equity Method Investment, Summarized Financial Information, Current Maturities of Long-term Debt | 21 | 23 | |
Equity Method Investment, Summarized Financial Information, Current Liabilities | 28 | 44 | |
Equity Method Investment, Summarized Financial Information, Long-Term Debt | 321 | 372 | |
Equity Method Investment, Summarized Financial Information, Long-term Derivative Liabilities | 51 | 35 | |
Equity Method Investment, Summarized Financial Information, Liabilities | 421 | 474 | |
Equity Method Investment Summarized Financial Information, Equity [Abstract] | |||
Equity Method Investment Summarized Financial Information, Equity | 199 | 198 | |
Equity Method Investment, Summarized Financial Information, Liabilities and Equity | 620 | 672 | |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) [Abstract] | |||
Equity Method Investment, Summarized Financial Information, Revenue | 239 | 207 | 247 |
Equity Method Investment, Summarized Financial Information, Cost of Sales | 168 | 128 | 171 |
Equity Method Investment, Summarized Financial Information, Gross Profit (Loss) | 71 | 79 | 76 |
Equity Method Investment Summarized Financial Information Interest (Income) Expense | 23 | 24 | 27 |
Equity Method Investment Summarized Financial Information Other (Income) Expense Net | 0 | -3 | -2 |
Equity Method Investment, Summarized Financial Information, Net Income (Loss) | $48 | $58 | $51 |
Variable_Interest_Entities_and5
Variable Interest Entities and Unconsolidated Investments (VIE Textuals) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
MW | MW | ||
Schedule of Equity Method Investments [Line Items] | |||
Power generation capacity | 10,365 | 9,427 | |
Variable Interest Entity, Financial or Other Support, Amount | $47,000,000 | $0 | $20,000,000 |
Equity Method Investment, Summarized Financial Information, Debt | 342,000,000 | 395,000,000 | |
Prorata Share of Equity Method Investment, Summarized Financial Information, Debt | $171,000,000 | $198,000,000 | |
Russell City Energy [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Minority Interest Ownership Percentage By Noncontrolling Third Party Owners | 25.00% | ||
Equity Method Investment, Ownership Percentage | 75.00% | ||
Inland Empire Energy Center [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Power generation capacity | 775 | ||
Put Option Exercise Period | 2,025 | ||
Minimum [Member] | Inland Empire Energy Center [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Call Option Exercise Period | 2,017 | ||
Maximum [Member] | Inland Empire Energy Center [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Call Option Exercise Period | 2,024 | ||
Greenfield [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Power generation capacity | 1,038 | ||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Whitby [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Power generation capacity | 50 | ||
Equity Method Investment, Ownership Percentage | 50.00% |
Debt_Debt_Details
Debt (Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Debt and Capital Lease Obligations | $11,282 | $11,112 |
Debt, current portion | 199 | 204 |
Debt, net of current portion | 11,083 | 10,908 |
Corporate Debt Securities [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,075 | 4,989 |
Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,800 | 0 |
Loans Payable [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 2,799 | 2,828 |
Notes Payable, Other Payables [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,810 | 1,901 |
Secured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 1,596 | 1,191 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $202 | $203 |
Debt_Annual_Debt_Marturities_D
Debt (Annual Debt Marturities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2015 | $199 | |
2016 | 205 | |
2017 | 562 | |
2018 | 1,730 | |
2019 | 1,217 | |
Thereafter | 7,393 | |
Total debt, gross | 11,306 | |
Less: Discount | 24 | |
Debt and Capital Lease Obligations | $11,282 | $11,112 |
Debt_Debt_First_Lien_Notes_Det
Debt Debt (First Lien Notes) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
First Lien Notes 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $0 | [1] | $320 | [1] |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | [2] | 8.20% | [2] |
First Lien Notes 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | [1] | 875 | [1] |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | [2] | 8.20% | [2] |
First Lien Notes 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | [1] | 1,600 | [1] |
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | [2] | 7.70% | [2] |
2022 First Lien Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 745 | 744 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.30% | [2] | 6.20% | [2] |
First Lien Notes 2023 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 840 | [3] | 960 | [3] |
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 10.00% | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.00% | [2] | 8.00% | [2] |
2024 First Lien Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 490 | 490 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.00% | [2] | 5.90% | [2] |
Corporate Debt Securities [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $2,075 | $4,989 | ||
[1] | The 2019 First Lien Notes, 2020 First Lien Notes and 2021 First Lien Notes were repaid during the third quarter of 2014 with the proceeds from the issuance of our Senior Unsecured Notes, together with cash on hand, which are described in further detail below. | |||
[2] | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | |||
[3] | In December 2014, we used cash on hand to redeem 10% of the original aggregate principal amount of our 2023 First Lien Notes, plus accrued and unpaid interest. On February 3, 2015, we additionally repurchased approximately $150 million of our 2023 First Lien Notes with the proceeds from our 2024 Senior Unsecured Notes, which is described in further detail below. |
Debt_Senior_Unsecured_Notes_De
Debt Senior Unsecured Notes (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Feb. 03, 2015 | |||
Debt Instrument [Line Items] | |||||||
Gains (Losses) on Extinguishment of Debt | ($346,000,000) | ($144,000,000) | ($30,000,000) | ||||
Senior Unsecured Notes 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,250,000,000 | 0 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.60% | [1] | 0.00% | [1] | |||
Debt Instrument, Face Amount | 1,250,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.38% | ||||||
Senior Unsecured Notes 2025 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 1,550,000,000 | 0 | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.90% | [1] | 0.00% | [1] | |||
Debt Instrument, Face Amount | 1,550,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.75% | ||||||
Unsecured Debt [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 2,800,000,000 | 0 | |||||
2019, 2020 and 2021 First Lien Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Deferred Finance Costs, Net | 42,000,000 | ||||||
Gains (Losses) on Extinguishment of Debt | -340,000,000 | ||||||
First Lien Notes 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | 840,000,000 | [2] | 960,000,000 | [2] | |||
Debt Instrument, Interest Rate, Effective Percentage | 8.00% | [1] | 8.00% | [1] | |||
Subsequent Event [Member] | Senior Unsecured Notes 2024 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | 650,000,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | ||||||
Subsequent Event [Member] | First Lien Notes 2023 [Member] | Early Redemption Amount [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term Debt | $150,000,000 | ||||||
[1] | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. | ||||||
[2] | In December 2014, we used cash on hand to redeem 10% of the original aggregate principal amount of our 2023 First Lien Notes, plus accrued and unpaid interest. On February 3, 2015, we additionally repurchased approximately $150 million of our 2023 First Lien Notes with the proceeds from our 2024 Senior Unsecured Notes, which is described in further detail below. |
Debt_Debt_First_Lien_Term_Loan
Debt Debt (First Lien Term Loans) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
First Lien Term Loans 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $1,597 | $1,614 | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | [1] | 4.30% | [1] |
First Lien Term Loan 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 816 | 824 | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.40% | [1] | 4.50% | [1] |
2020 First Lien Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 386 | 390 | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.30% | [1] | 4.30% | [1] |
Loans Payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $2,799 | $2,828 | ||
[1] | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. |
Debt_CCFC_Term_Loans_Details
Debt CCFC Term Loans (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Incremental CCFC Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $425 | |||
Long Term Debt net of Original Issuance Disount | 98.75% | |||
Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 1,596 | 1,191 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.40% | [1] | 3.30% | [1] |
Term loan interest rate spread option Federal Funds effective rate | 0.50% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.75% | |||
Long Term Debt net of Original Issuance Disount | 99.75% | |||
Percentage of the principal amount of the Term Loan to be paid quarterly | 0.25% | |||
CCFC Term Loan B-1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | 900 | |||
Term Loan Period | 7 years | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 2.25% | |||
Term loan interest rate spread option Prime Rate | 1.25% | |||
CCFC Term Loan B-2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $300 | |||
Term Loan Period | 8 years 6 months | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 2.50% | |||
Term loan interest rate spread option Prime Rate | 1.50% | |||
[1] | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount. |
Debt_Project_Financing_Notes_P
Debt (Project Financing, Notes Payable and Others) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Russell City Project [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $591 | $593 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.20% | [1] | 4.90% | [1] |
Steamboat [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 407 | 418 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.90% | [1] | 6.80% | [1] |
OMEC [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 325 | 335 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.90% | [1] | 6.90% | [1] |
Los Esteros Project [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 275 | 305 | ||
Debt Instrument, Interest Rate, Effective Percentage | 3.10% | [1] | 3.40% | [1] |
Pasadena [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 122 | [2] | 135 | [2] |
Debt Instrument, Interest Rate, Effective Percentage | 8.90% | [1],[2] | 8.90% | [1],[2] |
Bethpage [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 82 | [3] | 88 | [3] |
Debt Instrument, Interest Rate, Effective Percentage | 7.00% | [1],[3] | 7.00% | [1],[3] |
Gilroy note payable [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 0 | 15 | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | [1] | 11.20% | [1] |
Other Debt Obligations [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | 8 | 12 | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.00% | [1] | 0.00% | [1] |
Project Financing Total [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $1,810 | $1,901 | ||
[1] | Our weighted average interest rate calculation includes the amortization of deferred financing costs and debt discount or premium. | |||
[2] | Represents a failed sale-leaseback transaction that is accounted for as financing transaction under U.S. GAAP. | |||
[3] | Represents a weighted average of first and second lien loans for the weighted average effective interest rates. |
Debt_Capital_Lease_Obligations
Debt (Capital Lease Obligations) (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Minimum Lease Payments, Sale Leaseback Transactions, Fiscal Year Maturity [Abstract] | ||
Minimum Lease Payments, Sale Leaseback Transactions, within One Year | $25 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions, within Two Years | 25 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions, within Three Years | 17 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions, within Four Years | 21 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions, within Five Years | 21 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions, Thereafter | 85 | [1] |
Minimum Lease Payments, Sale Leaseback Transactions | 194 | [1] |
Interest Portion of Minimum Lease Payments, Sale Leaseback Transactions | 72 | [1] |
Present Value of Future Minimum Lease Payments, Sale Leaseback Transactions | 122 | [1] |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||
Capital Leases, Future Minimum Payments Due, Current | 47 | |
Capital Leases, Future Minimum Payments Due in Two Years | 41 | |
Capital Leases, Future Minimum Payments Due in Three Years | 39 | |
Capital Leases, Future Minimum Payments Due in Four Years | 38 | |
Capital Leases, Future Minimum Payments Due in Five Years | 20 | |
Capital Leases, Future Minimum Payments Due Thereafter | 151 | |
Capital Leases, Future Minimum Payments Due | 336 | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 134 | |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 202 | |
Total Leases Future Minimum Payments [Abstract] | ||
Total Leases, Future Minimum Payments Due, Current | 72 | |
Total Leases, Future Minimum Payments Due in Two Years | 66 | |
Total Leases, Future Minimum Payments Due in Three Years | 56 | |
Total Leases, Future Minimum Payments Due in Four Years | 59 | |
Total Leases, Future Minimum Payments Due in Five Years | 41 | |
Total Leases, Future Minimum Payments Due Thereafter | 236 | |
Total Leases, Future Minimum Payments Due | 530 | |
Total Leases, Future Minimum Payments, Interest Included in Payments | 206 | |
Total Leases, Future Minimum Payments, Present Value of Net Minimum Payments | $324 | |
[1] | Amounts are accounted for as financing transactions under U.S. GAAP and are included in our project financing, notes payable and other amounts above. |
Debt_Corporate_Revolving_Facil
Debt (Corporate Revolving Facility and other Letters of Credit Facilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $644 | $630 |
Corporate Revolving Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 223 | 242 |
CDH [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | 214 | 218 |
Various Project Financing Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Fair Value of Amount Outstanding | $207 | $170 |
Debt_Fair_Value_of_Debt_Detail
Debt (Fair Value of Debt) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | $2,247 | $5,317 | ||
Senior Unsecured Notes, Fair Value Disclosure | 2,832 | 0 | ||
Loans Payable, Fair Value Disclosure | 2,769 | 2,845 | ||
Notes Payable, Other Payables, Disclosure | 1,734 | [1] | 1,772 | [1] |
Subsidiaries Term Loan | 1,540 | 1,179 | ||
Debt Excluding Capital Leases | 11,122 | 11,113 | ||
Reported Value Measurement [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Notes Payable, Fair Value Disclosure | 2,075 | 4,989 | ||
Senior Unsecured Notes, Fair Value Disclosure | 2,800 | 0 | ||
Loans Payable, Fair Value Disclosure | 2,799 | 2,828 | ||
Notes Payable, Other Payables, Disclosure | 1,688 | [1] | 1,766 | [1] |
Subsidiaries Term Loan | 1,596 | 1,191 | ||
Debt Excluding Capital Leases | $10,958 | $10,774 | ||
[1] | Excludes a lease that is accounted for as a failed sale-leaseback transaction under U.S. GAAP. |
Debt_Textuals_Details
Debt (Textuals) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Gains (Losses) on Extinguishment of Debt | ($346,000,000) | ($144,000,000) | ($30,000,000) | |
Maximum Remaining Lease Term | 34 years | |||
Lease Assets, Historical Cost | 933,000,000 | 862,000,000 | ||
Lease Assets, Accumulated Depreciation | 395,000,000 | 343,000,000 | ||
First Lien Term Loans [Member] | ||||
Debt Instrument [Line Items] | ||||
Term loan interest rate spread option Federal Funds effective rate | 0.50% | |||
Term loan interest rate spread option Prime Rate | 2.00% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Maximum | 3.00% | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 1.00% | |||
Percentage of principal amount of Term Loan to be paid quarterly | 0.25% | |||
Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage added to Federal Funds Effective Rate to arrive at base rate | 0.50% | |||
Repayment time for drawings under letters of credit | 2 days | |||
Excess amount of asset sales requiring mandatory prepayments | 3,000,000,000 | |||
Corporate Revolving Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin range percentage above base rate | 1.00% | |||
Applicable Margin Range Percentage Above British Bankers' Association Interest Settlement Rates | 2.00% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Corporate Revolving Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Applicable margin range percentage above base rate | 1.25% | |||
Applicable Margin Range Percentage Above British Bankers' Association Interest Settlement Rates | 2.25% | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.50% | |||
CDHI [Member] | ||||
Debt Instrument [Line Items] | ||||
Letter of Credit Total | 300,000,000 | |||
One Month [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 1 month | |||
Two Months [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 2 months | |||
Three Months [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 3 months | |||
Six Months [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 6 months | |||
Nine Months [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 9 months | |||
Twelve Months [Member] | Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest periods for LIBOR rate borrowings | 12 months | |||
Corporate Revolving Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Increase (Decrease), Net | 500,000,000 | |||
Line of Credit Facility, Maximum Borrowing Capacity | $1,500,000,000 |
Assets_and_Liabilities_with_Re2
Assets and Liabilities with Recurring Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | $896 | [1] | $1,134 | [1] |
Margin Deposit Assets | 96 | [2] | 261 | [2] |
Commodity futures contracts | 2,134 | 434 | ||
Commodity forward contracts | 359 | [3] | 107 | [3] |
Interest rate swaps | 4 | 9 | ||
Total assets | 3,489 | 1,945 | ||
Security Deposit Liability | 47 | [2],[4] | 5 | [2],[4] |
Commodity futures contracts | 1,870 | 495 | ||
Commodity forward contracts | 242 | [3] | 70 | [3] |
Interest rate swaps | 114 | 129 | ||
Total liabilities | 2,273 | 699 | ||
Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 896 | [1] | 1,134 | [1] |
Margin Deposit Assets | 96 | 261 | ||
Commodity futures contracts | 2,134 | 434 | ||
Commodity forward contracts | 0 | [3] | 0 | [3] |
Interest rate swaps | 0 | 0 | ||
Total assets | 3,126 | 1,829 | ||
Security Deposit Liability | 47 | 5 | ||
Commodity futures contracts | 1,870 | 495 | ||
Commodity forward contracts | 0 | [3] | 0 | [3] |
Interest rate swaps | 0 | 0 | ||
Total liabilities | 1,917 | 500 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | [1] | 0 | [1] |
Margin Deposit Assets | 0 | 0 | ||
Commodity futures contracts | 0 | 0 | ||
Commodity forward contracts | 195 | [3] | 75 | [3] |
Interest rate swaps | 4 | 9 | ||
Total assets | 199 | 84 | ||
Security Deposit Liability | 0 | 0 | ||
Commodity futures contracts | 0 | 0 | ||
Commodity forward contracts | 163 | [3] | 52 | [3] |
Interest rate swaps | 114 | 129 | ||
Total liabilities | 277 | 181 | ||
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash equivalents | 0 | [1] | 0 | [1] |
Margin Deposit Assets | 0 | 0 | ||
Commodity futures contracts | 0 | 0 | ||
Commodity forward contracts | 164 | [3] | 32 | [3] |
Interest rate swaps | 0 | 0 | ||
Total assets | 164 | 32 | ||
Security Deposit Liability | 0 | 0 | ||
Commodity futures contracts | 0 | 0 | ||
Commodity forward contracts | 79 | [3] | 18 | [3] |
Interest rate swaps | 0 | 0 | ||
Total liabilities | $79 | $18 | ||
[1] | As of December 31, 2014 and 2013, we had cash equivalents of $679 million and $889 million included in cash and cash equivalents and $217 million and $245 million included in restricted cash, respectively. | |||
[2] | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 8 for further discussion of our derivative instruments subject to master netting arrangements. | |||
[3] | Includes OTC swaps and options. | |||
[4] | Included in other current liabilities on our Consolidated Balance Sheets. |
Assets_and_Liabilities_with_Re3
Assets and Liabilities with Recurring Fair Value Measurements Quantitative Information about Level 3 Fair Value Measurements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Derivative, Fair Value, Net | $271,000,000 | ($144,000,000) |
Physical Power [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Derivative, Fair Value, Net | 74,000,000 | 7,000,000 |
Natural Gas [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Derivative, Fair Value, Net | 5,000,000 | 0 |
Power Congestion Products [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Derivative, Fair Value, Net | 9,000,000 | 7,000,000 |
Minimum [Member] | Physical Power [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | 14 | 28.92 |
Minimum [Member] | Natural Gas [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | 1 | 0 |
Minimum [Member] | Power Congestion Products [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | -19.56 | -8.79 |
Maximum [Member] | Physical Power [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | 122.79 | 53.15 |
Maximum [Member] | Natural Gas [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | 10.86 | 0 |
Maximum [Member] | Power Congestion Products [Member] | ||
Quantitative Information about Level 3 fair Value Measurements [Line Items] | ||
Fair Value Inputs Quantitative Information | $19.56 | $11.53 |
Assets_and_Liabilities_with_Re4
Assets and Liabilities with Recurring Fair Value Measurements (Textuals) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||||
Balance, beginning of period | $14 | $16 | $17 | |||
Included in net income: | ||||||
Included in operating revenues | 70 | [1] | 5 | [1] | 8 | [1] |
Included in fuel and purchased energy expense | 5 | [2] | 0 | [2] | 0 | [2] |
Purchases, issuances and settlements: | ||||||
Purchases | 6 | 6 | 3 | |||
Issuances | 0 | -2 | -1 | |||
Settlements | -10 | -11 | -11 | |||
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount | 0 | 0 | 0 | |||
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount | 0 | 0 | 0 | |||
Transfers into level 3 | 0 | [3],[4] | 0 | [3],[4] | 0 | [3],[4] |
Transfers out of level 3 | 0 | [4],[5] | 0 | [4],[5] | 0 | [4],[5] |
Balance, end of period | 85 | 14 | 16 | |||
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) | 75 | 5 | 8 | |||
Assets and Liabilities with Recurring Fair Value Measurements (Textuals) [Abstract] | ||||||
Cash Equivalents Included In Cash And Cash Equivalents, Fair Value Disclosure | 679 | 889 | ||||
Cash Equivalents Included In Restricted Cash, Fair Value Disclosure | $217 | $245 | ||||
[1] | For power contracts and other power-related products, included on our Consolidated Statements of Operations. | |||||
[2] | For natural gas contracts, swaps and options, included on our Consolidated Statements of Operations. | |||||
[3] | There were no transfers out of level 2 into level 3 for the years ended December 31, 2014, 2013 and 2012. | |||||
[4] | We transfer amounts among levels of the fair value hierarchy as of the end of each period. There were no transfers into or out of level 1 during the years ended December 31, 2014, 2013 and 2012. | |||||
[5] | There were no transfers out of level 3 for the years ended December 31, 2014, 2013 and 2012. |
Derivative_Instruments_Details
Derivative Instruments (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
MWh | MWh | |
Power [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | -62 | -29 |
Natural Gas [Member] | ||
Derivative [Line Items] | ||
Derivative, Nonmonetary Notional Amount, Energy Measure | 291 | 448 |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | 1,431 | 1,527 |
Derivative_Instruments_Details1
Derivative Instruments (Details 2) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments and Hedges, Assets | $2,058 | $445 |
Long-term derivative assets | 439 | 105 |
Total derivative assets | 2,497 | 550 |
Derivative liabilities, current | 1,782 | 451 |
Long-term derivative liabilities | 444 | 243 |
Derivative Liability, Fair Value, Gross Liability | 2,226 | 694 |
Net derivative assets (liabilities) | 271 | -144 |
Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 4 | 9 |
Derivative Liability, Fair Value, Gross Liability | 112 | 115 |
Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 2,493 | 541 |
Derivative Liability, Fair Value, Gross Liability | 2,114 | 579 |
Energy Related Derivative [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 2,058 | 445 |
Derivative Asset, Noncurrent | 435 | 96 |
Total derivative assets | 2,493 | 541 |
Derivative Liability, Current | 1,738 | 404 |
Derivative Liability, Noncurrent | 374 | 161 |
Derivative Liability, Fair Value, Gross Liability | 2,112 | 565 |
Net derivative assets (liabilities) | 381 | -24 |
Energy Related Derivative [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 2,493 | 541 |
Derivative Liability, Fair Value, Gross Liability | 2,112 | 565 |
Interest Rate Swap [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets, current | 0 | 0 |
Derivative Asset, Noncurrent | 4 | 9 |
Total derivative assets | 4 | 9 |
Derivative Liability, Current | 44 | 47 |
Derivative Liability, Noncurrent | 70 | 82 |
Derivative Liability, Fair Value, Gross Liability | 114 | 129 |
Net derivative assets (liabilities) | -110 | -120 |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 4 | 9 |
Derivative Liability, Fair Value, Gross Liability | 112 | 115 |
Interest Rate Swap [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $2 | $14 |
Derivative_Instruments_Details2
Derivative Instruments (Details 3) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Gain (Loss) on Sale of Derivatives | $110 | [1] | $86 | [1] | $230 | [1] | ||||||||
Unrealized Gain (Loss) on Derivatives | 353 | [2] | -12 | [2] | 72 | [2] | ||||||||
Derivatives contracts included in operating revenues | 1,939 | 2,187 | 1,939 | 1,965 | 1,438 | 2,050 | 1,572 | 1,241 | 8,030 | 6,301 | 5,478 | |||
Derivatives contracts included in fuel and purchased energy | 4,892 | 3,736 | 3,024 | |||||||||||
Interest expense | 645 | 696 | 736 | |||||||||||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 0 | 0 | -14 | |||||||||||
Gain (Loss) on Derivative Instruments, Net, Pretax | 463 | 74 | 302 | |||||||||||
Energy Related Derivative [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Gain (Loss) on Sale of Derivatives | 110 | [1] | 86 | [1] | 387 | [1] | ||||||||
Unrealized Gain (Loss) on Derivatives | 342 | [2] | -14 | [2] | -82 | [2] | ||||||||
Interest Rate Swap [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Gain (Loss) on Sale of Derivatives | 0 | [1] | 0 | [1] | -157 | [1] | ||||||||
Unrealized Gain (Loss) on Derivatives | 11 | [2] | 2 | [2] | 154 | [2] | ||||||||
Interest expense | 11 | 2 | 11 | |||||||||||
Power [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Derivatives contracts included in operating revenues | 384 | -119 | 187 | |||||||||||
Natural Gas [Member] | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||||||||
Derivatives contracts included in fuel and purchased energy | $68 | $191 | $118 | |||||||||||
[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 mark-to-market 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. |
Derivative_Instruments_Details3
Derivative Instruments (Details 4) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Loss) Recognized in OCI (Effective Portion) | ($2) | [1] | $86 | [1] | ($81) | [1] |
Gain (Loss) Reclassified from AOCI into Income (EffectivePortion) | -46 | [1] | -51 | [1] | 20 | [1] |
Power Derivative Instruments [Member] | Energy Related Derivative [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Loss) Recognized in OCI (Effective Portion) | 0 | [1],[2] | 0 | [1],[2] | -97 | [1],[2] |
Gain (Loss) Reclassified from AOCI into Income (EffectivePortion) | 0 | [2],[3] | 0 | [2],[3] | 118 | [2],[3] |
Natural Gas Derivative Instruments [Member] | Energy Related Derivative [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Loss) Recognized in OCI (Effective Portion) | 0 | [1],[2] | 0 | [1],[2] | 59 | [1],[2] |
Gain (Loss) Reclassified from AOCI into Income (EffectivePortion) | 0 | [2],[3] | 0 | [2],[3] | -66 | [2],[3] |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gains (Loss) Recognized in OCI (Effective Portion) | -2 | [1],[4] | 86 | [1],[4] | -43 | [1],[4] |
Gain (Loss) Reclassified from AOCI into Income (EffectivePortion) | ($46) | [3],[4],[5] | ($51) | [3],[4],[5] | ($32) | [3],[4] |
[1] | We recorded income tax expense of nil and $3 million for the years ended December 31, 2014 and 2013, respectively, and an income tax benefit of $11 million for the year ended December 31, 2012, in AOCI related to our cash flow hedging activities. | |||||
[2] | There were no commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2014 and 2013. We recorded a gain on hedge ineffectiveness of $2 million related to our commodity derivative instruments designated as cash flow hedges during the year ended December 31, 2012. | |||||
[3] | Cumulative cash flow hedge losses attributable to Calpine, net of tax, remaining in AOCI were $149 million, $148 million and $222 million at December 31, 2014, 2013 and 2012, respectively. Cumulative cash flow hedge losses attributable to the noncontrolling interest, net of tax, remaining in AOCI were $12 million, $11 million and $20 million at December 31, 2014, 2013 and 2012, respectively. | |||||
[4] | We did not record any gain (loss) on hedge ineffectiveness related to our interest rate swaps designated as cash flow hedges during the years ended December 31, 2014, 2013 and 2012. | |||||
[5] | Includes a loss of $10 million and $12 million that was reclassified from AOCI to interest expense for the years ended December 31, 2014 and 2013, respectively, where the hedged transactions are no longer expected to occur. |
Derivative_Instruments_Textual
Derivative Instruments (Textuals) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivatives, Fair Value [Line Items] | |||
Maximum length of time hedging using interest rate derivative instruments | 9 years | ||
Derivative, Net Liability Position, Aggregate Fair Value | $19 | ||
Collateral Already Posted, Aggregate Fair Value | 11 | ||
Additional Collateral, Aggregate Fair Value | 5 | ||
Other Comprehensive Income Loss Derivatives Qualifying As Hedges Tax | 0 | 3 | 11 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 | -2 |
(Gain) Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring, Net | 10 | 12 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | -46 | ||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 0 | 0 | -14 |
Gain Loss On Interest Rate Derivative Instruments Not Designated As Hedging Instruments, Unrealized | 14 | ||
Gain Loss On Interest Rate Derivative Instruments Not Designated As Hedging Instruments, Realized | 142 | ||
Interest Rate Swap [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Gain (Loss) on Interest Rate Derivative Instruments Not Designated as Hedging Instruments | 156 | ||
Parent [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | -149 | -148 | -222 |
Noncontrolling Interest [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | ($12) | ($11) | ($20) |
Derivative_Instruments_Detail_
Derivative Instruments (Detail 5) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | $2,497 | $550 | ||
Derivative Asset, Not Offset, Policy Election Deduction | -2,087 | -480 | ||
Derivative, Collateral, Obligation to Return Cash | -269 | [1] | -14 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 141 | 56 | ||
Derivative Liability, Fair Value, Gross Liability | -2,226 | -694 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 2,087 | 480 | ||
Derivative, Collateral, Right to Reclaim Cash | 15 | [1] | 76 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | -124 | -138 | ||
Net derivative assets (liabilities) | 271 | -144 | ||
Derivative Fair Value, Amount Not Offset Against Collateral, Net | 0 | 0 | ||
Derivative, Collateral, Right to Reclaim Cash, Net | -254 | [1] | 62 | [1] |
Derivative, Fair Value, Amount Offset Against Collateral, Net | 17 | -82 | ||
Commodity Exchange Traded Futures and Swaps Contracts [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 2,134 | 434 | ||
Derivative Asset, Not Offset, Policy Election Deduction | -1,865 | -420 | ||
Derivative, Collateral, Obligation to Return Cash | -269 | [1] | -14 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Derivative Liability, Fair Value, Gross Liability | -1,870 | -495 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 1,865 | 420 | ||
Derivative, Collateral, Right to Reclaim Cash | 5 | [1] | 75 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||
Commodity Forward Contract [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 359 | 107 | ||
Derivative Asset, Not Offset, Policy Election Deduction | -222 | -60 | ||
Derivative, Collateral, Obligation to Return Cash | 0 | [1] | 0 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 137 | 47 | ||
Derivative Liability, Fair Value, Gross Liability | -242 | -70 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 222 | 60 | ||
Derivative, Collateral, Right to Reclaim Cash | 10 | [1] | 1 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | -10 | -9 | ||
Interest Rate Swap [Member] | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 4 | 9 | ||
Derivative Asset, Not Offset, Policy Election Deduction | 0 | 0 | ||
Derivative, Collateral, Obligation to Return Cash | 0 | [1] | 0 | [1] |
Derivative Asset, Fair Value, Amount Offset Against Collateral | 4 | 9 | ||
Derivative Liability, Fair Value, Gross Liability | -114 | -129 | ||
Derivative Liability, Not Offset, Policy Election Deduction | 0 | 0 | ||
Derivative, Collateral, Right to Reclaim Cash | 0 | [1] | 0 | [1] |
Derivative Liability, Fair Value, Amount Offset Against Collateral | -114 | -129 | ||
Net derivative assets (liabilities) | ($110) | ($120) | ||
[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 and natural gas and power prepayments posted by us with our counterparties related to our derivative activities that are subject to a master netting arrangement. See Note 9 for a further discussion of our collateral. |
Use_of_Collateral_Details
Use of Collateral (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | ||||
Use of Collateral [Abstract] | ||||
Margin Deposit Assets | $96 | [1] | $261 | [1] |
Natural gas and power prepayments | 22 | 28 | ||
Total margin deposits and natural gas and power prepayments with our counterparties | 118 | [2] | 289 | [2] |
Letters of credit issued | 450 | 488 | ||
First priority liens under power and natural gas agreements | 48 | 31 | ||
First priority liens under interest rate swap agreements | 116 | 132 | ||
Total letters of credit and first priority liens with our counterparties | 614 | 651 | ||
Security Deposit Liability | 47 | [1],[3] | 5 | [1],[3] |
Letters of credit posted with us by our counterparties | 61 | 2 | ||
Total margin deposits and letters of credit posted with us by our counterparties | 108 | 7 | ||
Use of Collateral (Textuals) [Abstract] | ||||
Margin And Prepayment Amounts Included In Other Assets | 9 | 17 | ||
Margin And Prepayment Amounts Included In Margin Deposits And Other Prepaid Expenses | $109 | $272 | ||
[1] | Balances are subject to master netting arrangements and presented on a gross basis on our Consolidated Balance Sheets. We do not offset fair value amounts recognized for derivative instruments executed with the same counterparty under a master netting arrangement for financial statement presentation, and we do not offset amounts recognized for the right to reclaim, or the obligation to return, cash collateral with corresponding derivative instrument fair values. See Note 8 for further discussion of our derivative instruments subject to master netting arrangements. | |||
[2] | At December 31, 2014 and 2013, $109 million and $272 million, respectively, were included in margin deposits and other prepaid expense and $9 million and $17 million, respectively, were included in other assets on our Consolidated Balance Sheets. | |||
[3] | Included in other current liabilities on our Consolidated Balance Sheets. |
Income_Taxes_Income_Tax_Expens
Income Taxes (Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
U.S. | $942 | ($13) | $194 |
International | 26 | 29 | 24 |
Total | $968 | $16 | $218 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Tax Expense (Benefit)) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal | ($1) | ($2) | ($12) |
State | 19 | -9 | 16 |
Foreign | -1 | -1 | 14 |
Total current | 17 | -12 | 18 |
Federal | 0 | 1 | 11 |
State | -1 | 4 | -5 |
Foreign | 6 | 9 | -5 |
Total deferred | 5 | 14 | 1 |
Total income tax expense (benefit) | $22 | $2 | $19 |
Income_Taxes_Effective_Income_
Income Taxes (Effective Income Tax Expense (Benefit) Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax [Line Items] | |||
Federal statutory tax expense (benefit) rate | 35.00% | 35.00% | 35.00% |
State tax expense (benefit), net of federal benefit | 1.90% | -69.80% | 3.20% |
Depletion in excess of basis | -0.30% | -14.70% | -0.20% |
Effective Income Tax Rate Reconciliation, Tax Settlements, Domestic | 0.00% | 0.00% | -4.70% |
Valuation allowances | -35.80% | 89.80% | -30.30% |
Effective Income Tax Rate Reconciliation Change in Deferred Tax Assets, Valuation Allowance Due to Foreign Taxes | 0.00% | -19.80% | -8.20% |
Foreign taxes | 1.20% | -10.80% | 3.70% |
Intraperiod allocation | 0.00% | 4.50% | 4.60% |
Change in unrecognized tax benefits | -0.40% | -30.10% | 5.10% |
Effective Income Tax Rate Reconciliation Nondeductible Expense Disallowed Compensation | 0.10% | 11.70% | 0.40% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent | 0.10% | 8.60% | 0.20% |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Other, Percent | 0.10% | 3.30% | 0.30% |
Permanent differences and other items | 0.40% | 4.80% | -0.40% |
Effective income tax expense (benefit) rate | 2.30% | 12.50% | 8.70% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
NOL and credit carryforwards | $2,873 | $3,120 |
Taxes related to risk management activities and derivatives | 61 | 60 |
Reorganization items and impairments | 216 | 262 |
Foreign capital losses | 16 | 18 |
Other differences | 0 | 104 |
Deferred tax assets before valuation allowance | 3,166 | 3,564 |
Valuation allowance | -1,836 | -2,246 |
Total deferred tax assets | 1,330 | 1,318 |
Deferred tax liabilities: property, plant and equipment | -1,305 | -1,310 |
Deferred Tax Liabilities, Other | -21 | 0 |
Deferred Tax Liabilities, Gross | -1,326 | -1,310 |
Net deferred tax asset (liability) | 4 | 8 |
Less: Current portion deferred tax asset (liability) | -14 | 12 |
Less: Non-current deferred tax asset | 19 | 7 |
Deferred income tax liability, net of current | ($1) | ($11) |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Tax Expense (Benefit) Intraperiod Tax Allocation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Continuing Operations [Member] | |||
Income Tax [Line Items] | |||
Deferred income tax liability, net of current | $0 | $1 | $9 |
Other Comprehensive Income (Loss) [Member] | |||
Income Tax [Line Items] | |||
Deferred income tax liability, net of current | $0 | ($1) | ($9) |
Income_Taxes_Income_Tax_Contin
Income Taxes (Income Tax Contingencies) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Balance, beginning of period | ($68) | ($92) | ($74) |
Increases related to prior year tax positions | -4 | -7 | -19 |
Decreases related to prior year tax positions | 8 | 8 | 1 |
Settlements | 8 | 10 | 0 |
Decrease related to lapse of statute of limitations | 0 | 13 | 0 |
Balance, end of period | ($56) | ($68) | ($92) |
Income_Taxes_Textuals_Details
Income Taxes (Textuals) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Intraperiod income tax [Line Items] | ||||
Number of States for NOL Carryforwards | 22 | |||
Federal statutory tax expense (benefit) rate | 35.00% | 35.00% | 35.00% | |
Income Tax Disclosure (Textuals) [Abstract] | ||||
Unrecognized Tax Benefits | $56,000,000 | $68,000,000 | $92,000,000 | $74,000,000 |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 13,000,000 | |||
Unrecognized Tax Benefits Resulting in Net Operating Loss Carryforward | 43,000,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 11,000,000 | 13,000,000 | ||
Valuation allowance | 1,836,000,000 | 2,246,000,000 | ||
Valuation Allowance, Deferred Tax Asset, Change in Amount | 410,000,000 | 24,000,000 | 114,000,000 | |
Miscellaneous increase in state, Deferred Tax Assets | 18,000,000 | |||
Tax refund due to foreign dividend income treatment | 10,000,000 | |||
Tax refund plus accrued interest due to foreign dividend income treatment | 13,000,000 | |||
Accrued interest on foreign dividend refund | 3,000,000 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | -2,000,000 | -11,000,000 | 4,000,000 | |
Federal [Domain] | ||||
Income Tax Disclosure (Textuals) [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 37,000,000 | 25,000,000 | ||
State and Local Jurisdiction [Member] | ||||
Income Tax Disclosure (Textuals) [Abstract] | ||||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 21,000,000 | 16,000,000 | ||
Expiration date 2014 through 2034 [Member] | ||||
Income Tax Disclosure (Textuals) [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 4,000,000,000 | |||
Expiration date 2026 and 2034 [Member] | ||||
Income Tax Disclosure (Textuals) [Abstract] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 800,000,000 | |||
Expiration date 2023 through 2034 [Member] | ||||
Intraperiod income tax [Line Items] | ||||
Deferred Tax Assets, Operating Loss Carryforwards, Domestic | $6,900,000,000 |
Earnings_Loss_per_Share_Detail
Earnings (Loss) per Share (Details) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Diluted weighted average shares calculation: | |||
Weighted average shares outstanding (basic) | 404,837 | 440,666 | 467,752 |
Share-based awards | 4,523 | 4,107 | 3,591 |
Weighted average shares outstanding (in shares) | 409,360 | 444,773 | 471,343 |
Items excluded from diluted earnings (loss) per common share | |||
Share-based awards | 2,859 | 5,062 | 10,302 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Total Intrinsic Value | $21,000,000 | $22,000,000 | $1,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options Outstanding, Beginning balance, Number | 14,114,289 | |||||
Options Outstanding, Beginning balance, Weighted Average Exercise Price | $18.25 | |||||
Options Ouststanding, Beginning balance, Weighted Average Remaining Term (in years) | 2 years 0 months 0 days | 3 years 1 month 6 days | ||||
Options Outstanding, Beginning balance, Aggregate Intrinsic Value (in $ millions) | 36,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $0 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 2,951,947 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $16.20 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | 69,122 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $15.81 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 6,900 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $17.69 | |||||
Options Outstanding, Ending balance, Number | 11,086,320 | 14,114,289 | ||||
Options Outstanding, Ending balance, Weighted Average Exercise Price | $18.82 | $18.25 | ||||
Options Ouststanding, Ending balance, Weighted Average Remaining Term (in years) | 2 years 0 months 0 days | 3 years 1 month 6 days | ||||
Options Outstanding, Ending balance, Aggregate Intrinsic Value (in $ millions) | 43,000,000 | 36,000,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 10,336,806 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $19.07 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 8 months 12 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | 38,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Number | 11,076,617 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Exercise Price | $18.82 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Weighted Average Remaining Contractual Term | 2 years 0 months 0 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding, Aggregate Intrinsic Value | 43,000,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years 6 months 0 days | [1] | 6 years 6 months 0 days | [1] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.40% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 25.60% | [3] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | [4] | 0.00% | [4] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $5.31 | $5.18 | ||||
Disclosure of Compensation Related Costs Share-based Payments (Textuals) [Abstract] | ||||||
Vesting period for graded and cliff vesting options - minimum | 1 year | |||||
Vesting period for graded and cliff vesting options - maximum | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Expiration Minimum Range | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Expiration Maximum Range | 10 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized for Directors | 567,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized for Employees | 40,533,000 | |||||
Vest Term of First Sub Grant | 1 year | |||||
Vest Term of the Second Sub-Grant | 2 years | |||||
Vest Term of the Third Sub-Grant | 3 years | |||||
Grants in Option Grants with Three Year Cliff Vesting | 1 year | |||||
Vesting term of option grants with three year cliff vesting | 3 years | |||||
Stock-based compensation expense | 31,000,000 | 34,000,000 | 25,000,000 | |||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 20,000,000 | 20,000,000 | 5,000,000 | |||
Allocated Share Based Compensation Expense Liability Classified Share-Based Awards | 5,000,000 | 2,000,000 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.20% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.00% | [3] | ||||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.60% | [2] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 30.50% | [3] | ||||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 35,000,000 | 25,000,000 | 20,000,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $26,000,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 1 month 6 days | |||||
Restricted Stock and Stock Unit Activity [Abstract] | ||||||
Nonvested Restricted Stock, Beginning balance, Number | 4,431,841 | |||||
Nonvested Restricted Stock, Beginning balance, Weighted Average Grant Date Fair Value | $16.45 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 1,885,049 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $19.34 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 430,059 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Grant Date Fair Value | $17.67 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 1,684,963 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $15.51 | |||||
Nonvested Restricted Stock, Ending balance, Number | 4,201,868 | 4,431,841 | ||||
Nonvested Restricted Stock, Ending balance, Weighted Average Grant Date Fair Value | $18.01 | $16.45 | ||||
Performance Shares [Member] | ||||||
Restricted Stock and Stock Unit Activity [Abstract] | ||||||
Nonvested Restricted Stock, Beginning balance, Number | 449,798 | |||||
Nonvested Restricted Stock, Beginning balance, Weighted Average Grant Date Fair Value | $21.25 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 461,393 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $22.56 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 28,400 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period, Weighted Average Grant Date Fair Value | $21.87 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 15,312 | [5] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $21.25 | |||||
Nonvested Restricted Stock, Ending balance, Number | 867,479 | |||||
Nonvested Restricted Stock, Ending balance, Weighted Average Grant Date Fair Value | $21.93 | |||||
Director Plan [Member] | ||||||
Disclosure of Compensation Related Costs Share-based Payments (Textuals) [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 186,816 | |||||
Equity Plan [Member] | ||||||
Disclosure of Compensation Related Costs Share-based Payments (Textuals) [Abstract] | ||||||
Common Stock, Capital Shares Reserved for Future Issuance | 13,077,526 | |||||
[1] | Expected term calculated using the simplified method prescribed by the SEC due to the lack of sufficient historical exercise data to provide a reasonable basis to estimate the expected term. | |||||
[2] | Zero Coupon U.S. Treasury rate or equivalent based on expected term. | |||||
[3] | Volatility calculated using the implied volatility of our exchange traded stock options. | |||||
[4] | We have never paid cash dividends on our common stock, and we do not anticipate any cash dividend payments on our common stock in the near future | |||||
[5] | (1)In accordance with the applicable performance share unit agreements, performance share units granted to employees who meet the retirement eligibility requirements stipulated in the Equity Plan are fully vested upon the later of the date on which the employee becomes eligible to retire or one-year anniversary of the grant date. |
Defined_Contribution_and_Defin1
Defined Contribution and Defined Benefit Plans (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution and Defined Benefit Plans [Abstract] | |||
Defined Contribution Plan, Cost Recognized | $12 | $11 | $12 |
Employer Matching Contribution Percentage | 100.00% | ||
Deferral Election Percentage For Employer Matching Contribution | 5.00% | ||
Employee Deferral Limit Percentage | 75.00% | ||
Defined Benefit Plan, Assets for Plan Benefits | 15 | 14 | |
Pension and Other Postretirement Defined Benefit Plans, Liabilities | 24 | 20 | |
Defined Benefit Plan, Amounts Recognized in Balance Sheet | 9 | 6 | |
Defined Benefit Plan, Net Periodic Benefit Cost | 1 | 2 | 1 |
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), before Tax | 5 | 1 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 2 | 1 | |
Defined Benefit Plan, Estimated Future Employer Contributions in Next Fiscal Year | 1 | ||
Defined Benefit Plan, Expected Future Benefit Payments in Five Fiscal Years Thereafter | $1 |
Capital_Structure_Details
Capital Structure (Details) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2015 | Dec. 31, 2011 | |
Class of Stock [Line Items] | |||||
Shares issued under Calpine Equity Incentive Plans | 2,566,799 | 3,022,128 | 1,741,909 | ||
Share repurchase program | -49,684,523 | -31,032,110 | 26,436,677 | ||
Total common shares outstanding, ending balance | -381,921,264 | -429,038,988 | -457,048,970 | -481,743,738 | |
Common Stock, authorized shares (in shares) | -1,400,000,000 | -1,400,000,000 | |||
Common Stock, issued shares (in shares) | -502,287,022 | -497,841,056 | |||
Common Stock, par value (in dollars per share) | ($0.00) | ($0.00) | |||
Common Stock, outstanding shares (in shares) | -381,921,264 | -429,038,988 | |||
Treasury Stock, Shares (in shares) | 120,365,758 | 68,802,068 | |||
Treasury Stock, Value | $2,345,000,000 | $1,230,000,000 | |||
Treasury Stock, Value, Acquired, Cost Method | -1,115,000,000 | -636,000,000 | -469,000,000 | ||
Shareholder Transaction | |||||
Shareholder Ownership Percentage | 10.00% | ||||
Common Stock Purchased from Shareholder | 13,213,372 | ||||
Purchase Price of Common Stock Purchased from Shareholder | 311,464,283 | ||||
Shares Issued [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued under Calpine Equity Incentive Plans | 4,445,966 | 5,345,956 | 2,026,285 | ||
Share repurchase program | 0 | 0 | 0 | ||
Total common shares outstanding, ending balance | -502,287,022 | -497,841,056 | -492,495,100 | -490,468,815 | |
Treasury Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Shares issued under Calpine Equity Incentive Plans | 1,879,167 | 2,323,828 | 284,376 | ||
Share repurchase program | -49,684,523 | -31,032,110 | 26,436,677 | ||
Total common shares outstanding, ending balance | -120,365,758 | -68,802,068 | -35,446,130 | -8,725,077 | |
Share Repurchases in 2014 [Member] | |||||
Class of Stock [Line Items] | |||||
Share repurchase program | -36,471,151 | ||||
Treasury Stock, Value, Acquired, Cost Method | -789,000,000 | ||||
Treasury Stock Acquired, Average Cost Per Share | $21.62 | ||||
Subsequent Event [Member] | 2014 Through Filing Date [Member] | |||||
Class of Stock [Line Items] | |||||
Share repurchase program | -5,772,440 | ||||
Treasury Stock, Value, Acquired, Cost Method | ($125,000,000) | ||||
Treasury Stock Acquired, Average Cost Per Share | $21.68 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Commitments and Contingencies [Line Items] | |||
Guarantor Obligations, Current Carrying Value | $2 | ||
Outstanding claims related to guarantees | 0 | ||
Royalty Expense | 28 | 27 | 22 |
LTSA [Member] | |||
Unrecorded Unconditional Purchase Obligation | |||
Unrecorded Unconditional Purchase Obligation | 189 | ||
Term of Unrecorded Unconditional Purchase Obligation Lower Limit | 1 year | ||
Term of Unrecorded Unconditional Purchase Obligation Upper Limit | 11 years | ||
Electric Generation Equipment [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | 46 | 47 | 51 |
Office Equipment [Member] | |||
Commitments and Contingencies [Line Items] | |||
Operating Leases, Rent Expense, Net | $11 | $12 | $12 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Schedules of Future Minimum Rental Payments) (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Land and Other Operating Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | $277 | |
Operating Leases, Future Minimum Payments Due, Current | 15 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 16 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 15 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 15 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 15 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 201 | |
Greenleaf [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 4 | |
KIAC [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 119 | |
Operating Leases, Future Minimum Payments Due, Current | 23 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 30 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 0 | |
Total Power Plant Leases [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 123 | |
Operating Leases, Future Minimum Payments Due, Current | 27 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 22 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 30 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 0 | |
Operting Lease Assets Total [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 400 | |
Operating Leases, Future Minimum Payments Due, Current | 42 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 38 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 37 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 37 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 45 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 201 | |
Office Equipment [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 55 | |
Operating Leases, Future Minimum Payments Due, Current | 11 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 10 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 9 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 9 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 8 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 8 | |
Greenleaf [Member] | ||
Operating Leased Assets [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | 4 | [1] |
Guarantee Obligations Balance On Second Anniversary | 0 | [1] |
Guarantee Obligations Balance On Third Anniversary | 0 | [1] |
Guarantee Obligations Balance On Fourth Anniversary | 0 | [1] |
Guarantee Obligations Balance On Fifth Anniversary | 0 | [1] |
Guarantee Obligations Due After Five Years | 0 | [1] |
Natural Gas [Member] | ||
Operating Leased Assets [Line Items] | ||
Operating Leases, Future Minimum Payments Due | 1,763 | |
Operating Leases, Future Minimum Payments Due, Current | 390 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 297 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 193 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 152 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 109 | |
Operating Leases, Future Minimum Payments, Due Thereafter | $622 | |
[1] | These are contingent off balance sheet obligations. |
Commitments_and_Contingencies_3
Commitments and Contingencies (Schedule of Guarantor Obligations) (Details) (USD $) | Dec. 31, 2014 | |
In Millions, unless otherwise specified | ||
Loans Payable [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | $37 | [1] |
Guarantee Obligations Balance On Second Anniversary | 36 | [1] |
Guarantee Obligations Balance On Third Anniversary | 26 | [1] |
Guarantee Obligations Balance On Fourth Anniversary | 31 | [1] |
Guarantee Obligations Balance On Fifth Anniversary | 30 | [1] |
Guarantee Obligations Due After Five Years | 148 | [1] |
Guarantor Obligations, Maximum Exposure, Undiscounted | 308 | [1] |
Financial Standby Letter of Credit [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | 572 | [2],[3],[4] |
Guarantee Obligations Balance On Second Anniversary | 14 | [2],[3],[4] |
Guarantee Obligations Balance On Third Anniversary | 20 | [2],[3],[4] |
Guarantee Obligations Balance On Fourth Anniversary | 0 | [2],[3],[4] |
Guarantee Obligations Balance On Fifth Anniversary | 0 | [2],[3],[4] |
Guarantee Obligations Due After Five Years | 38 | [2],[3],[4] |
Guarantor Obligations, Maximum Exposure, Undiscounted | 644 | [2],[3],[4] |
Surety Bonds [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | 0 | [2],[5],[6] |
Guarantee Obligations Balance On Second Anniversary | 0 | [2],[5],[6] |
Guarantee Obligations Balance On Third Anniversary | 0 | [2],[5],[6] |
Guarantee Obligations Balance On Fourth Anniversary | 0 | [2],[5],[6] |
Guarantee Obligations Balance On Fifth Anniversary | 0 | [2],[5],[6] |
Guarantee Obligations Due After Five Years | 4 | [2],[5],[6] |
Guarantor Obligations, Maximum Exposure, Undiscounted | 4 | [2],[5],[6] |
Greenleaf [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | 4 | [2] |
Guarantee Obligations Balance On Second Anniversary | 0 | [2] |
Guarantee Obligations Balance On Third Anniversary | 0 | [2] |
Guarantee Obligations Balance On Fourth Anniversary | 0 | [2] |
Guarantee Obligations Balance On Fifth Anniversary | 0 | [2] |
Guarantee Obligations Due After Five Years | 0 | [2] |
Guarantor Obligations, Maximum Exposure, Undiscounted | 4 | [2] |
Gurantee Obligations Total [Member] | ||
Guarantor Obligations [Line Items] | ||
Guarantee Obligations Balance On First Anniversary | 613 | |
Guarantee Obligations Balance On Second Anniversary | 50 | |
Guarantee Obligations Balance On Third Anniversary | 46 | |
Guarantee Obligations Balance On Fourth Anniversary | 31 | |
Guarantee Obligations Balance On Fifth Anniversary | 30 | |
Guarantee Obligations Due After Five Years | 190 | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $960 | |
[1] | Represents Calpine Corporation guarantees of certain power plant capital leases and related interest. All guaranteed capital leases are recorded on our Consolidated Balance Sheets. | |
[2] | These are contingent off balance sheet obligations. | |
[3] | Letters of credit are renewed annually and as such all amounts are reflected in the year of letter of credit expiration. The related commercial obligations extend for multiple years, therefore, renewal of the letter of credit will likely follow the term of the associated commercial obligation. | |
[4] | The standby letters of credit disclosed above represent those disclosed in Note 6. | |
[5] | The majority of surety bonds do not have expiration or cancellation dates. | |
[6] | As of December 31, 2014, $2 million of cash collateral is outstanding related to these bonds. |
Segment_and_Significant_Custom2
Segment and Significant Customer Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | $1,939 | $2,187 | $1,939 | $1,965 | $1,438 | $2,050 | $1,572 | $1,241 | $8,030 | $6,301 | $5,478 | |||
Commodity Margin | 2,759 | [1] | 2,568 | [1] | 2,538 | [1],[2],[3] | ||||||||
Mark-to-Market Commodity Activity, Net and Other Revenue | 379 | [4] | -3 | [4] | -84 | [4] | ||||||||
Plant operating expense | 969 | 895 | 922 | |||||||||||
Depreciation and amortization expense | 603 | 593 | 562 | |||||||||||
Sales, general and other administrative expense | 144 | 136 | 140 | |||||||||||
Other Cost and Expense, Operating | 88 | 81 | 78 | |||||||||||
Impairment losses | 123 | 16 | 0 | |||||||||||
Gain (Loss) on Disposition of Assets | -753 | 0 | -222 | |||||||||||
(Income) from unconsolidated investments in power plants | -25 | -30 | -28 | |||||||||||
Income from operations | 390 | 1,126 | 329 | 144 | 151 | 597 | 122 | 4 | 1,989 | 874 | 1,002 | |||
Interest expense, net of interest income | 639 | 690 | 725 | |||||||||||
Loss on interest rate derivatives | 0 | 0 | 14 | |||||||||||
Debt Extinguishment Costs and Other (Income) Expense, Net | 367 | 164 | 45 | |||||||||||
Income before income taxes | 983 | 20 | 218 | |||||||||||
Commodity Margin for Six Southeast Power Plants Sold | 81 | 152 | 131 | |||||||||||
Lease levelization | -5 | 6 | 1 | |||||||||||
Contract amortization | 14 | 14 | 14 | |||||||||||
Commodity Margin Broad River Energy Center | 52 | |||||||||||||
Commodity Margin Riverside Energy Center | 73 | |||||||||||||
Number of significant customers | one | two | ||||||||||||
West [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 2,358 | 1,942 | 1,678 | |||||||||||
Commodity Margin | 1,050 | [1] | 1,020 | [1] | 994 | [1],[2],[3] | ||||||||
Mark-to-Market Commodity Activity, Net and Other Revenue | 220 | [4] | -50 | [4] | -93 | [4] | ||||||||
Plant operating expense | 385 | 365 | 368 | |||||||||||
Depreciation and amortization expense | 245 | 227 | 203 | |||||||||||
Sales, general and other administrative expense | 41 | 37 | 36 | |||||||||||
Other Cost and Expense, Operating | 50 | 45 | 42 | |||||||||||
Impairment losses | 0 | 16 | ||||||||||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||||||
(Income) from unconsolidated investments in power plants | 0 | 0 | 0 | |||||||||||
Income from operations | 549 | 280 | 252 | |||||||||||
Texas [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 3,252 | 2,343 | 1,918 | |||||||||||
Commodity Margin | 760 | [1] | 632 | [1] | 570 | [1],[2],[3] | ||||||||
Mark-to-Market Commodity Activity, Net and Other Revenue | 142 | [4] | 51 | [4] | 87 | [4] | ||||||||
Plant operating expense | 313 | 269 | 247 | |||||||||||
Depreciation and amortization expense | 191 | 165 | 142 | |||||||||||
Sales, general and other administrative expense | 64 | 56 | 47 | |||||||||||
Other Cost and Expense, Operating | 5 | 3 | 5 | |||||||||||
Impairment losses | 0 | 0 | ||||||||||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||||||
(Income) from unconsolidated investments in power plants | 0 | 0 | 0 | |||||||||||
Income from operations | 329 | 190 | 216 | |||||||||||
East [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 2,496 | 2,134 | 1,991 | |||||||||||
Commodity Margin | 949 | [1] | 916 | [1] | 974 | [1],[2],[3] | ||||||||
Mark-to-Market Commodity Activity, Net and Other Revenue | 48 | [4] | 27 | [4] | -47 | [4] | ||||||||
Plant operating expense | 302 | 292 | 337 | |||||||||||
Depreciation and amortization expense | 168 | 203 | 219 | |||||||||||
Sales, general and other administrative expense | 39 | 42 | 57 | |||||||||||
Other Cost and Expense, Operating | 32 | 33 | 34 | |||||||||||
Impairment losses | 123 | 0 | ||||||||||||
Gain (Loss) on Disposition of Assets | -753 | -222 | ||||||||||||
(Income) from unconsolidated investments in power plants | -25 | -30 | -28 | |||||||||||
Income from operations | 1,111 | 403 | 530 | |||||||||||
Geography Consolidation and Elimination [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | -76 | -118 | -109 | |||||||||||
Commodity Margin | 0 | 0 | 0 | |||||||||||
Mark-to-Market Commodity Activity, Net and Other Revenue | -31 | -31 | -31 | |||||||||||
Plant operating expense | -31 | -31 | -30 | |||||||||||
Depreciation and amortization expense | -1 | -2 | -2 | |||||||||||
Sales, general and other administrative expense | 0 | 1 | 0 | |||||||||||
Other Cost and Expense, Operating | 1 | 0 | -3 | |||||||||||
Impairment losses | 0 | 0 | ||||||||||||
Gain (Loss) on Disposition of Assets | 0 | 0 | ||||||||||||
(Income) from unconsolidated investments in power plants | 0 | 0 | 0 | |||||||||||
Income from operations | 0 | 1 | 4 | |||||||||||
PJM Settlement, Inc. [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 1,024 | 820 | 713 | |||||||||||
Pacific Gas & Electric Company [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 694 | |||||||||||||
Operating Segments [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 8,030 | 6,301 | 5,478 | |||||||||||
Operating Segments [Member] | West [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 2,352 | 1,937 | 1,668 | |||||||||||
Operating Segments [Member] | Texas [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 3,229 | 2,347 | 1,857 | |||||||||||
Operating Segments [Member] | East [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 2,449 | 2,017 | 1,953 | |||||||||||
Operating Segments [Member] | Geography Consolidation and Elimination [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Intersegment Eliminations [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 0 | 0 | 0 | |||||||||||
Intersegment Eliminations [Member] | West [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 6 | 5 | 10 | |||||||||||
Intersegment Eliminations [Member] | Texas [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 23 | -4 | 61 | |||||||||||
Intersegment Eliminations [Member] | East [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | 47 | 117 | 38 | |||||||||||
Intersegment Eliminations [Member] | Geography Consolidation and Elimination [Member] | ||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||||||||||
Operating revenues | ($76) | ($118) | ($109) | |||||||||||
[1] | Our East segment includes Commodity Margin of $81 million, $152 million and $131 million for the years ended December 31, 2014, 2013 and 2012, respectively, related to the six power plants in our East segment that were sold in July 2014. | |||||||||||||
[2] | Our East segment includes Commodity Margin of $73 million for the year ended December 31, 2012, related to Riverside Energy Center, LLC, which was sold in December 2012. | |||||||||||||
[3] | Our East segment includes Commodity Margin of $52 million for the year ended December 31, 2012, related to Broad River, which was sold in December 2012. | |||||||||||||
[4] | Includes $(5) million, $6 million and $1 million of lease levelization and $14 million, $14 million and $14 million of amortization expense for the years ended December 31, 2014, 2013 and 2012, respectively. |
Quarterly_Consolidated_Financi2
Quarterly Consolidated Financial Data (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Operating revenues | $1,939 | $2,187 | $1,939 | $1,965 | $1,438 | $2,050 | $1,572 | $1,241 | $8,030 | $6,301 | $5,478 |
Income (loss) from operations | 390 | 1,126 | 329 | 144 | 151 | 597 | 122 | 4 | 1,989 | 874 | 1,002 |
Net income (loss) attributable to Calpine | $210 | $614 | $139 | ($17) | ($97) | $306 | ($70) | ($125) | $946 | $14 | $199 |
Net income (loss) per common share attributable to Calpine — basic (in dollars per share) | $0.55 | $1.54 | $0.33 | ($0.04) | ($0.23) | $0.70 | ($0.16) | ($0.28) | $2.34 | $0.03 | $0.43 |
Net income (loss) per common share attributable to Calpine — diluted (in dollars per share) | $0.54 | $1.52 | $0.33 | ($0.04) | ($0.23) | $0.70 | ($0.16) | ($0.28) | $2.31 | $0.03 | $0.42 |
Schedule_of_Valuation_and_Qual1
Schedule of Valuation and Qualifying Accounts Disclosure (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Doubtful Accounts [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | $5 | $6 | $13 | |||
Charged to Expense | -1 | 4 | -1 | |||
Deductions | 0 | [1] | 0 | [1] | -5 | [1] |
Charged to Other Accounts | 0 | -5 | -1 | |||
Balance at End of Year | 4 | 5 | 6 | |||
Deferred Tax Asset Valuation Allowance [Member] | ||||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||||
Balance at Beginning of Year | 2,246 | 2,222 | 2,336 | |||
Charged to Expense | -410 | 24 | -114 | |||
Deductions | 0 | [1] | 0 | [1] | 0 | [1] |
Charged to Other Accounts | 0 | 0 | 0 | |||
Balance at End of Year | $1,836 | $2,246 | $2,222 | |||
[1] | Represents write-offs of accounts considered to be uncollectible and previously reserved. |