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Risk Management and Derivatives: (Tables)

9 Months Ended

Sep. 30, 2022

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, 2022												December 31, 2021
			Notional Amounts (MMBtus)						Maximum Term (months) (a)						Notional Amounts (MMBtus)						Maximum Term (months) (a)
Natural gas futures purchased			1,780,000						6						590,000						3
Natural gas options purchased, net			5,500,000						6						3,100,000						3
Natural gas basis swaps purchased			1,530,000						6						870,000						3
Natural gas over-the-counter swaps, net (b)			6,050,000						27						4,570,000						34
Natural gas physical contracts, net (c)			29,017,775						15						16,416,677						24

__________

(a)    Term reflects the maximum forward period hedged.

(b)    As of September 30, 2022, 2,292,300 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, 2022			December 31, 2021
Derivatives designated as hedges:
Asset derivative instruments:
Current commodity derivatives			Derivative assets, current			$	21		$	2,017
Noncurrent commodity derivatives			Other assets, non-current			383			18
Liability derivative instruments:
Current commodity derivatives			Derivative liabilities, current			(1,211)			—
Total derivatives designated as hedges						$	(807)		$	2,035
Derivatives not designated as hedges:
Asset derivative instruments:
Current commodity derivatives			Derivative assets, current			$	3,847		$	2,356
Noncurrent commodity derivatives			Other assets, non-current			986			804
Liability derivative instruments:
Current commodity derivatives			Derivative liabilities, current			(4,358)			(1,439)
Noncurrent commodity derivatives			Other deferred credits and other liabilities			(23)			(20)
Total derivatives not designated as hedges						$	452		$	1,701

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, 2022 and 2021. Note that this presentation does not reflect the 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,
			2022			2021						2022			2021
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			$	(712)		$	(712)
Commodity derivatives			2,292			5,536			Fuel, purchased power and cost of natural gas sold			43			331
Total			$	3,004		$	6,248					$	(669)		$	(381)

			Nine Months Ended September 30,									Nine Months Ended September 30,
			2022			2021						2022			2021
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			$	(2,138)		$	(2,138)
Commodity derivatives			(2,946)			6,896			Fuel, purchased power and cost of natural gas sold			3,620			356
Total			$	(808)		$	9,034					$	1,482		$	(1,782)

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, 2022 and 2021. Note that this presentation does not reflect the expected 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,
						2022			2021
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
Commodity derivatives - Natural Gas			Fuel, purchased power and cost of natural gas sold			1,617			4,004
						$	1,617		$	6,498

						Nine Months Ended September 30,
						2022			2021
Derivatives Not Designated as Hedging Instruments			Income Statement Location			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)
Commodity derivatives - Natural Gas			Fuel, purchased power and cost of natural gas sold			2,779			6,186
						$	2,779		$	3,558

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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.

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-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
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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.

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Tabular disclosure of the notional amounts of outstanding derivative positions.

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