XML 45 R28.htm IDEA: XBRL DOCUMENT
v3.4.0.3

Derivative Accounting (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Outstanding gross notional amount of derivatives, which represents both purchases and sales (does not reflect net position) | As of March 31, 2016, we had the following outstanding gross notional volume of derivatives, which represent both purchases and sales (does not reflect net position):
Commodity |  | Quantity
Power |  | 2,239 |  |  | GWh
Gas |  | 179 |  |  | Billion cubic feet
Gains and losses from derivative instruments in designated cash flow accounting hedges relationships | The following table provides information about gains and losses from derivative instruments in designated cash flow accounting hedging relationships during the three months ended March 31, 2016 and 2015 (dollars in thousands):
|  | Financial Statement Location |  | Three Months Ended March 31,
Commodity Contracts |  |  | 2016 |  | 2015
Loss recognized in OCI on derivative instruments (effective portion) |  | OCI — derivative instruments |  | $ | (147 | ) |  | $ | (327 | )
Loss reclassified from accumulated OCI into income (effective portion realized) (a) |  | Fuel and purchased power (b) |  | (941 | ) |  | (2,343 | )
(a) | During the three months ended March 31, 2016 and 2015, we had no losses reclassified from accumulated OCI to earnings related to discontinued cash flow hedges.
(b) | Amounts are before the effect of PSA deferrals.
Gains and losses from derivative instruments not designated as accounting hedges instruments | The following table provides information about gains and losses from derivative instruments not designated as accounting hedging instruments during the three months ended March 31, 2016 and 2015 (dollars in thousands):
|  | Financial Statement Location |  | Three Months Ended March 31,
Commodity Contracts |  |  | 2016 |  | 2015
Net loss recognized in income |  | Operating revenues |  | $ | (102 | ) |  | $ | (48 | )
Net loss recognized in income |  | Fuel and purchased power (a) |  | (30,936 | ) |  | (44,803 | )
Total |  |  |  | $ | (31,038 | ) |  | $ | (44,851 | )
(a) | Amounts are before the effect of PSA deferrals.
Schedule of offsetting assets | The following tables provide information about the fair value of our risk management activities reported on a gross basis, and the impacts of offsetting as of March 31, 2016 and December 31, 2015. These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of our Condensed Consolidated Balance Sheets.
As of March 31, 2016: (dollars in thousands) |  | Gross Recognized Derivatives (a) |  | Amounts Offset (b) |  | Net Recognized Derivatives |  | Other (c) |  | Amount Reported on Balance Sheet
Current assets |  | $ | 25,365 |  |  | $ | (9,268 | ) |  | $ | 16,097 |  |  | $ | (8 | ) |  | $ | 16,089 |
Investments and other assets |  | 11,248 |  |  | (2,636 | ) |  | 8,612 |  |  | — |  |  | 8,612 |
Total assets |  | 36,613 |  |  | (11,904 | ) |  | 24,709 |  |  | (8 | ) |  | 24,701 |
Current liabilities |  | (115,822 | ) |  | 26,868 |  |  | (88,954 | ) |  | (4,329 | ) |  | (93,283 | )
Deferred credits and other |  | (88,239 | ) |  | 2,636 |  |  | (85,603 | ) |  | — |  |  | (85,603 | )
Total liabilities |  | (204,061 | ) |  | 29,504 |  |  | (174,557 | ) |  | (4,329 | ) |  | (178,886 | )
Total |  | $ | (167,448 | ) |  | $ | 17,600 |  |  | $ | (149,848 | ) |  | $ | (4,337 | ) |  | $ | (154,185 | )
(a) | All of our gross recognized derivative instruments were subject to master netting arrangements.
(b) | Includes cash collateral provided to counterparties of $17,600.
(c) | Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $4,329, and cash margin provided to counterparties of $(8).
As of December 31, 2015: (dollars in thousands) |  | Gross Recognized Derivatives (a) |  | Amounts Offset (b) |  | Net Recognized Derivatives |  | Other (c) |  | Amount Reported on Balance Sheet
Current assets |  | $ | 37,396 |  |  | $ | (22,163 | ) |  | $ | 15,233 |  |  | $ | 672 |  |  | $ | 15,905 |
Investments and other assets |  | 15,960 |  |  | (3,854 | ) |  | 12,106 |  |  | — |  |  | 12,106 |
Total assets |  | 53,356 |  |  | (26,017 | ) |  | 27,339 |  |  | 672 |  |  | 28,011 |
Current liabilities |  | (113,560 | ) |  | 40,223 |  |  | (73,337 | ) |  | (4,379 | ) |  | (77,716 | )
Deferred credits and other |  | (93,827 | ) |  | 3,854 |  |  | (89,973 | ) |  | — |  |  | (89,973 | )
Total liabilities |  | (207,387 | ) |  | 44,077 |  |  | (163,310 | ) |  | (4,379 | ) |  | (167,689 | )
Total |  | $ | (154,031 | ) |  | $ | 18,060 |  |  | $ | (135,971 | ) |  | $ | (3,707 | ) |  | $ | (139,678 | )
(a) | All of our gross recognized derivative instruments were subject to master netting arrangements.
(b) | Includes cash collateral provided to counterparties of $18,060.
(c) | Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $4,379, and cash margin provided to counterparties of $672.
Schedule of offsetting liabilities | The following tables provide information about the fair value of our risk management activities reported on a gross basis, and the impacts of offsetting as of March 31, 2016 and December 31, 2015. These amounts relate to commodity contracts and are located in the assets and liabilities from risk management activities lines of our Condensed Consolidated Balance Sheets.
As of March 31, 2016: (dollars in thousands) |  | Gross Recognized Derivatives (a) |  | Amounts Offset (b) |  | Net Recognized Derivatives |  | Other (c) |  | Amount Reported on Balance Sheet
Current assets |  | $ | 25,365 |  |  | $ | (9,268 | ) |  | $ | 16,097 |  |  | $ | (8 | ) |  | $ | 16,089 |
Investments and other assets |  | 11,248 |  |  | (2,636 | ) |  | 8,612 |  |  | — |  |  | 8,612 |
Total assets |  | 36,613 |  |  | (11,904 | ) |  | 24,709 |  |  | (8 | ) |  | 24,701 |
Current liabilities |  | (115,822 | ) |  | 26,868 |  |  | (88,954 | ) |  | (4,329 | ) |  | (93,283 | )
Deferred credits and other |  | (88,239 | ) |  | 2,636 |  |  | (85,603 | ) |  | — |  |  | (85,603 | )
Total liabilities |  | (204,061 | ) |  | 29,504 |  |  | (174,557 | ) |  | (4,329 | ) |  | (178,886 | )
Total |  | $ | (167,448 | ) |  | $ | 17,600 |  |  | $ | (149,848 | ) |  | $ | (4,337 | ) |  | $ | (154,185 | )
(a) | All of our gross recognized derivative instruments were subject to master netting arrangements.
(b) | Includes cash collateral provided to counterparties of $17,600.
(c) | Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $4,329, and cash margin provided to counterparties of $(8).
As of December 31, 2015: (dollars in thousands) |  | Gross Recognized Derivatives (a) |  | Amounts Offset (b) |  | Net Recognized Derivatives |  | Other (c) |  | Amount Reported on Balance Sheet
Current assets |  | $ | 37,396 |  |  | $ | (22,163 | ) |  | $ | 15,233 |  |  | $ | 672 |  |  | $ | 15,905 |
Investments and other assets |  | 15,960 |  |  | (3,854 | ) |  | 12,106 |  |  | — |  |  | 12,106 |
Total assets |  | 53,356 |  |  | (26,017 | ) |  | 27,339 |  |  | 672 |  |  | 28,011 |
Current liabilities |  | (113,560 | ) |  | 40,223 |  |  | (73,337 | ) |  | (4,379 | ) |  | (77,716 | )
Deferred credits and other |  | (93,827 | ) |  | 3,854 |  |  | (89,973 | ) |  | — |  |  | (89,973 | )
Total liabilities |  | (207,387 | ) |  | 44,077 |  |  | (163,310 | ) |  | (4,379 | ) |  | (167,689 | )
Total |  | $ | (154,031 | ) |  | $ | 18,060 |  |  | $ | (135,971 | ) |  | $ | (3,707 | ) |  | $ | (139,678 | )
(a) | All of our gross recognized derivative instruments were subject to master netting arrangements.
(b) | Includes cash collateral provided to counterparties of $18,060.
(c) | Represents cash collateral and cash margin that is not subject to offsetting. Amounts relate to non-derivative instruments, derivatives qualifying for scope exceptions, or collateral and margin posted in excess of the recognized derivative instrument. Includes cash collateral received from counterparties of $4,379, and cash margin provided to counterparties of $672.
Information about derivative instruments that have credit-risk-related contingent features | The following table provides information about our derivative instruments that have credit-risk-related contingent features at March 31, 2016 (dollars in thousands):
| March 31, 2016
Aggregate fair value of derivative instruments in a net liability position | $ | 204,061 |
Cash collateral posted | 17,600 |
Additional cash collateral in the event credit-risk-related contingent features were fully triggered (a) | 133,688 |
(a) | This amount is after counterparty netting and includes those contracts which qualify for scope exceptions, which are excluded from the derivative details above.

X
- Definition Tabular disclosure of derivative instruments that have credit-risk-related contingent features. + References No definition available. + Details
Name: | pnw_ScheduleOfDerivativeCreditRiskRelatedContingentFeaturesTableTextBlock
Namespace Prefix: | pnw_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial assets that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 + Details
Name: | us-gaap_OffsettingAssetsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of derivative and other financial liabilities that are subject to offsetting, including master netting arrangements. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225877-175312 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51824906&loc=SL20225862-175312 + Details
Name: | us-gaap_OffsettingLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of derivative instruments and nonderivative instruments designated as hedging instruments reported before netting adjustments, and the amount of gain (loss) on derivative instruments and nonderivative instruments designated and qualified as hedging instruments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for other derivative instruments not designated as hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfOtherDerivativesNotDesignatedAsHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration