XML 41 R29.htm IDEA: XBRL DOCUMENT
v3.21.2

Risk Management and Derivatives (Tables) | 9 Months Ended
--- | ---
Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Contract or notional amounts and terms of marketing activities and derivative commodity instruments | We had the following net long positions as of:
|  | September 30, 2021 |  | December 31, 2020 |  |
| Units | Notional Amounts |  | Maximum Term (months) (a) |  | Notional Amounts |  | Maximum Term (months) (a) |  |  |  |
Natural gas futures purchased | MMBtus | 1,700,000 |  |  | 6 |  | 620,000 |  |  | 3 |  |  |  |
Natural gas options purchased, net | MMBtus | 8,420,000 |  |  | 6 |  | 3,160,000 |  |  | 3 |  |  |  |
Natural gas basis swaps purchased | MMBtus | 1,500,000 |  |  | 6 |  | 900,000 |  |  | 3 |  |  |  |
Natural gas over-the-counter swaps, net (b) | MMBtus | 5,920,000 |  |  | 35 |  | 3,850,000 |  |  | 17 |  |  |  |
Natural gas physical contracts, net (c) | MMBtus | 18,758,835 |  |  | 7 |  | 17,513,061 |  |  | 22 |  |  |  |
Electric wholesale contracts (c) | MWh | 65,625 |  |  | 3 |  | 219,000 |  |  | 12 |  |  |  |
__________ (a) Term reflects the maximum forward period hedged. (b) As of September 30, 2021, 2,700,000 MMBtus of natural gas over-the-counter swaps purchases were designated as cash flow hedges. (c) Volumes exclude derivative contracts that qualify for the normal purchases and normal sales exception permitted by GAAP.
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | The following table presents the fair value and balance sheet classification of our derivative instruments (in thousands) as of:
| Balance Sheet Location |  | September 30, 2021 | December 31, 2020
Derivatives designated as hedges: |  |  |  |
Asset derivative instruments: |  |  |  |
Current commodity derivatives | Derivative assets, current |  | $ | 6,989 |  | $ | 181 |
Noncurrent commodity derivatives | Other assets, non-current |  | 32 |  | 43 |
Liability derivative instruments: |  |  |  |
Current commodity derivatives | Derivative liabilities, current |  | — |  | (108) |
Total derivatives designated as hedges |  |  | $ | 7,021 |  | $ | 116 |
Derivatives not designated as hedges: |  |  |  |
Asset derivative instruments: |  |  |  |
Current commodity derivatives | Derivative assets, current |  | $ | 5,327 |  | $ | 1,667 |
Noncurrent commodity derivatives | Other assets, non-current |  | 1,580 |  | 151 |
Liability derivative instruments: |  |  |  |
Current commodity derivatives | Derivative liabilities, current |  | (3,471) |  | (1,936) |
Total derivatives not designated as hedges |  |  | $ | 3,436 |  | $ | (118) |
Derivative Instruments, Gain (Loss) | The impacts of cash flow hedges on our Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Income are presented below for the three and nine months ended September 30, 2021 and 2020. Note that this presentation does not reflect gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled.
| Three Months Ended September 30, |  | Three Months Ended September 30,
| 2021 | 2020 |  | 2021 | 2020
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in OCI | Income Statement Location | Amount of Gain/(Loss) Reclassified from AOCI into Income
| (in thousands) |  | (in thousands)
Interest rate swaps | $ | 712 |  | $ | 712 |  | Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | $ | (712) |  | $ | (712) |
Commodity derivatives | 5,536 |  | 691 |  | Fuel, purchased power and cost of natural gas sold | 331 |  | (178) |
Total | $ | 6,248 |  | $ | 1,403 |  |  | $ | (381) |  | $ | (890) |
| Nine Months Ended September 30, |  | Nine Months Ended September 30,
| 2021 | 2020 |  | 2021 | 2020
Derivatives in Cash Flow Hedging Relationships | Amount of Gain/(Loss) Recognized in OCI | Income Statement Location | Amount of Gain/(Loss) Reclassified from AOCI into Income
| (in thousands) |  | (in thousands)
Interest rate swaps | $ | 2,138 |  | $ | 2,138 |  | Interest expense incurred net of amounts capitalized (including amortization of debt issuance costs, premiums and discounts) | $ | (2,138) |  | $ | (2,138) |
Commodity derivatives | 6,896 |  | 959 |  | Fuel, purchased power and cost of natural gas sold | 356 |  | (734) |
Total | $ | 9,034 |  | $ | 3,097 |  |  | $ | (1,782) |  | $ | (2,872) |
The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020. Note that this presentation does not reflect gains or losses arising from the underlying physical transactions; therefore, it is not indicative of the economic profit or loss we realized when the underlying physical and financial transactions were settled.
|  | Three Months Ended September 30,
|  | 2021 | 2020
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) on Derivatives Recognized in Income | Amount of Gain/(Loss) on Derivatives Recognized in Income
|  | (in thousands)
Commodity derivatives - Electric | Fuel, purchased power and cost of natural gas sold | $ | 2,494 |  | $ | (1,386) |
Commodity derivatives - Natural Gas | Fuel, purchased power and cost of natural gas sold | 4,004 |  | 1,777 |
|  | $ | 6,498 |  | $ | 391 |
|  | Nine Months Ended September 30,
|  | 2021 | 2020
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) on Derivatives Recognized in Income | Amount of Gain/(Loss) on Derivatives Recognized in Income
|  | (in thousands)
Commodity derivatives - Electric | Fuel, purchased power and cost of natural gas sold | $ | (2,628) |  | $ | (228) |
Commodity derivatives - Natural Gas | Fuel, purchased power and cost of natural gas sold | 6,186 |  | 2,992 |
|  | $ | 3,558 |  | $ | 2,764 |

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 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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624181-113959 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5618551-113959 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5624163-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the notional amounts of outstanding derivative positions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=125515794&loc=SL5579245-113959 + Details
Name: | us-gaap_ScheduleOfNotionalAmountsOfOutstandingDerivativePositionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration