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Risk Management Activities | 9 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Risk Management Activities | Risk Management Activities We are exposed to certain risks relating to our ongoing business operations, namely commodity price risk and interest rate risk. We recognize that the prudent and selective use of derivatives may help to lower our cost of debt capital, manage our interest rate exposure and limit volatility in the price of natural gas. Risk management assets and liabilities on our derivatives are presented on the Condensed Consolidated Balance Sheets (unaudited) as shown below:
(in millions) | September 30, 2021 |  | December 31, 2020
Risk Management Assets - Current(1) |  |  |
Interest rate risk programs | $ | — |  |  | $ | — |
Commodity price risk programs | 27.9 |  |  | 10.4 |
Total | $ | 27.9 |  |  | $ | 10.4 |
Risk Management Assets - Noncurrent(2) |  |  |
Interest rate risk programs | $ | — |  |  | $ | — |
Commodity price risk programs | 18.8 |  |  | 2.8 |
Total | $ | 18.8 |  |  | $ | 2.8 |
Risk Management Liabilities - Current(3) |  |  |
Interest rate risk programs | $ | 46.6 |  |  | $ | 70.9 |
Commodity price risk programs | 0.4 |  |  | 7.3 |
Total | $ | 47.0 |  |  | $ | 78.2 |
Risk Management Liabilities - Noncurrent(4) |  |  |
Interest rate risk programs | $ | 68.8 |  |  | $ | 99.5 |
Commodity price risk programs | 6.9 |  |  | 45.1 |
Total | $ | 75.7 |  |  | $ | 144.6 |
(1)Presented in "Prepayments and other" on the Condensed Consolidated Balance Sheets (unaudited). (2)Presented in "Deferred charges and other" on the Condensed Consolidated Balance Sheets (unaudited). (3)Presented in "Other accruals" on the Condensed Consolidated Balance Sheets (unaudited). (4)Presented in "Other noncurrent liabilities" on the Condensed Consolidated Balance Sheets (unaudited). Commodity Price Risk Management We, along with our utility customers, are exposed to variability in cash flows associated with natural gas purchases and volatility in natural gas prices. We purchase natural gas for sale and delivery to our retail, commercial and industrial customers, and for most customers the variability in the market price of gas is passed through in their rates. Some of our utility subsidiaries offer programs to certain customers whereby variability in the market price of gas is assumed by the respective utility. The objective of our commodity price risk programs is to mitigate the gas cost variability, for us or on behalf of our customers, associated with natural gas purchases or sales by economically hedging the various gas cost components using a combination of futures, options, forwards or other derivative contracts. NIPSCO received IURC approval to lock in a fixed price for its natural gas customers using long-term forward purchase instruments. The term of these instruments may range from five to 10 years and is limited to 20% of NIPSCO’s average annual GCA purchase volume. Gains and losses on these derivative contracts are deferred as regulatory liabilities or assets and are remitted to or collected from customers through NIPSCO’s quarterly GCA mechanism. These instruments are not designated as accounting hedges. Interest Rate Risk Management As of September 30, 2021, we have two forward-starting interest rate swaps with an aggregate notional value totaling $500.0 million to hedge the variability in cash flows attributable to changes in the benchmark interest rate during the periods from the effective dates of the swaps to the anticipated dates of forecasted debt issuances, which are expected to take place between 2022 and 2024. These interest rate swaps are designated as cash flow hedges. The gains and losses related to these swaps are recorded to AOCI and will be recognized in "Interest expense, net" concurrently with the recognition of interest expense on the associated debt, once issued. If it becomes probable that a hedged forecasted transaction will no longer occur, the accumulated gains or losses on the derivative will be recognized currently in "Other, net" in the Condensed Statements of Consolidated Income (Loss) (unaudited). There were no amounts excluded from effectiveness testing for derivatives in cash flow hedging relationships at September 30, 2021 and December 31, 2020. Our derivative instruments measured at fair value as of September 30, 2021 and December 31, 2020 do not contain any credit-risk-related contingent features.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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