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Risk Management Activities | 9 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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:
| September 30, 2022 |  | December 31, 2021
(in millions) | Assets |  | Liabilities |  | Assets |  | Liabilities
Current(1) |  |  |  |  |  |  |
Derivatives designated as hedging instruments | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 136.4 |
Derivatives not designated as hedging instruments | 41.8 |  |  | 1.9 |  |  | 10.6 |  |  | 0.4 |
Total | $ | 41.8 |  |  | $ | 1.9 |  |  | $ | 10.6 |  |  | $ | 136.8 |
Noncurrent(2) |  |  |  |  |  |  |
Derivatives designated as hedging instruments | $ | 12.1 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Derivatives not designated as hedging instruments | 82.3 |  |  | 1.7 |  |  | 13.8 |  |  | 7.4 |
Total | $ | 94.4 |  |  | $ | 1.7 |  |  | $ | 13.8 |  |  | $ | 7.4 |
(1)Current assets and liabilities are presented in "Prepayments and other" and "Other accruals", respectively, on the Condensed Consolidated Balance Sheets (unaudited). (2)Noncurrent assets and liabilities are presented in "Deferred charges and other" and "Other noncurrent liabilities", respectively, on the Condensed Consolidated Balance Sheets (unaudited). Derivatives Not Designated as Hedging Instruments 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 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. At September 30, 2022 and December 31, 2021, we had 108.0 MMDth and 124.5 MMDth, respectively, of net energy derivative volumes outstanding related to our natural gas hedges. NIPSCO has received IURC approval to lock in a fixed price for its natural gas customers using long-term forward purchase instruments and is limited to 20% of NIPSCO's average annual GCA purchase volume. As of September 30, 2022, the remaining terms of these instruments range from one to five years. All 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. The following table summarizes the gains and losses associated with the commodity price risk programs:
(in millions) | September 30, 2022 |  | December 31, 2021
Regulatory Assets |  |  |
Losses on commodity price risk programs | $ | 6.0 |  |  | $ | 9.6 |
Regulatory Liabilities |  |  |
Gains on commodity price risk programs | 150.7 |  |  | 34.2 |
Derivatives Designated as Hedging Instruments Interest rate risk management. As of September 30, 2022, we have one forward-starting interest rate swap with a notional value of $250.0 million to hedge the variability in cash flows attributable to changes in the benchmark interest rate associated with a forecasted debt issuance. This interest rate swap is designated as a cash flow hedge. On June 7, 2022, we settled a $250.0 million forward-starting interest rate swap agreement contemporaneously with the issuance of $350.0 million of 5.00% senior unsecured notes maturing in 2052. The derivative contract was accounted for as a cash flow hedge. As part of the transaction, the associated net unrealized gain position of $10.2 million is being amortized from AOCI loss into interest expense over the life of the associated debt. Refer to Note 12, "Long-Term Debt," for additional information. Cash flow hedges included in "Accumulated other comprehensive loss" on the Condensed Consolidated Balance Sheets (unaudited) were:
(in millions) | AOCI(1) |  | Amounts Expected to be Reclassified to Earnings During the Next 12 Months(1) |  | Maximum Term
Interest Rate | $ | (3.3) |  |  | (0.2) |  |  | 380 months
(1) All amounts are net of tax. The actual amounts reclassified from AOCI to Net Income can differ from the estimate above due to market rate changes. The gains and losses related to these swaps are recorded to AOCI. Upon issuance, we amortize the gains and losses over the life of the debt associated with these swaps as we recognize interest expense. These amounts are immaterial for the three and nine months ended September 30, 2022 and 2021 and are recorded in "Interest expense, net" on the Condensed Statements of Consolidated Income (unaudited). 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 (unaudited). There were no amounts excluded from effectiveness testing for derivatives in cash flow hedging relationships at September 30, 2022 and December 31, 2021. Our derivative instruments measured at fair value as of September 30, 2022 and December 31, 2021 do not contain any credit-risk-related contingent features. Cash flows for derivative financial instruments are generally classified as operating activities.

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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 https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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