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Risk Management And Derivatives (Tables) | 6 Months Ended
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Jun. 30, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Contract or notional amounts and terms of marketing activities and derivative commodity instruments | The contract or notional amounts and terms of the electric and natural gas derivative commodity instruments held at our Utilities are composed of both long and short positions. We had the following net long positions as of:
| June 30, 2023 |  | December 31, 2022 |
| Notional Amounts (MMBtus) |  | Maximum Term (months) (a) |  | Notional Amounts (MMBtus) |  | Maximum Term (months) (a) |
Natural gas futures purchased |  | 80,000 |  |  | 8 |  |  | 630,000 |  |  | 3 |
Natural gas options purchased, net |  | 120,000 |  |  | 9 |  |  | 1,790,000 |  |  | 3 |
Natural gas basis swaps purchased |  | 80,000 |  |  | 8 |  |  | 900,000 |  |  | 3 |
Natural gas over-the-counter swaps, net (b) |  | 6,580,000 |  |  | 27 |  |  | 4,460,000 |  |  | 24 |
Natural gas physical contracts, net (c) |  | 1,813,165 |  |  | 9 |  |  | 17,864,412 |  |  | 12 |
(a) Term reflects the maximum forward period hedged. (b) As of June 30, 2023, 3,151,300 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 | June 30, 2023 |  | December 31, 2022 |
Derivatives designated as hedges: |  |  |  |  |
Asset derivative instruments: |  |  |  |  |
Current commodity derivatives | Derivative assets, current | $ | 408 |  | $ | 118 |
Noncurrent commodity derivatives | Other assets, non-current |  | - |  |  | 198 |
Liability derivative instruments: |  |  |  |  |
Current commodity derivatives | Derivative liabilities, current |  | - |  |  | (1,703 | )
Noncurrent commodity derivatives | Other assets, non-current |  | (64 | ) |  | - |
Total derivatives designated as hedges |  | $ | 344 |  | $ | (1,387 | )
Derivatives not designated as hedges: |  |  |  |  |
Asset derivative instruments: |  |  |  |  |
Current commodity derivatives | Derivative assets, current | $ | (105 | ) | $ | 464 |
Noncurrent commodity derivatives | Other assets, non-current |  | - |  |  | 337 |
Liability derivative instruments: |  |  |  |  |
Current commodity derivatives | Derivative liabilities, current |  | (322 | ) |  | (4,897 | )
Noncurrent commodity derivatives | Other deferred credits and other liabilities |  | (84 | ) |  | (18 | )
Total derivatives not designated as hedges |  | $ | (511 | ) | $ | (4,114 | )
Derivative Instruments, Gain (Loss) | The impacts of cash flow hedges on our Consolidated Statements of Comprehensive Income and Consolidated Statements of Income are presented below for the three and six months ended June 30, 2023 and 2022. 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 June 30, |  |  | Three Months Ended June 30, |
| 2023 |  | 2022 |  |  | 2023 |  | 2022 |
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 | $ | 713 |  | $ | 713 |  | Interest expense | $ | (713 | ) | $ | (713 | )
Commodity derivatives |  | 636 |  |  | (4,371 | ) | Fuel, purchased power and cost of natural gas sold |  | (489 | ) |  | 1,323 |
Total | $ | 1,349 |  | $ | (3,658 | ) |  | $ | (1,202 | ) | $ | 610 |
| Six Months Ended June 30, |  |  | Six Months Ended June 30, |
| 2023 |  | 2022 |  |  | 2023 |  | 2022 |
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 | $ | 1,426 |  | $ | 1,426 |  | I nterest expense | $ | (1,426 | ) | $ | (1,426 | )
Commodity derivatives |  | 1,463 |  |  | (5,238 | ) | Fuel, purchased power and cost of natural gas sold |  | (2,439 | ) |  | 3,577 |
Total | $ | 2,889 |  | $ | (3,812 | ) |  | $ | (3,865 | ) | $ | 2,151 |
As of June 30, 2023, $2.9 million of net losses related to our interest rate swaps and commodity derivatives are expected to be reclassified from AOCI into earnings within the next 12 months. As market prices fluctuate, estimated and actual realized gains or losses will change during future periods. Derivatives Not Designated as Hedge Instruments The following table summarizes the impacts of derivative instruments not designated as hedge instruments on our Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022. 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 June 30, |
|  | 2023 |  | 2022 |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) on Derivatives Recognized in Income | Amount of Gain/(Loss) on Derivatives Recognized in Income |
Commodity derivatives | Fuel, purchased power and cost of natural gas sold | $ | 394 |  | $ | (2,332 | )
|  | $ | 394 |  | $ | (2,332 | )
|  | Six Months Ended June 30, |
|  | 2023 |  | 2022 |
Derivatives Not Designated as Hedging Instruments | Location of Gain/(Loss) on Derivatives Recognized in Income | Amount of Gain/(Loss) on Derivatives Recognized in Income |
Commodity derivatives | Fuel, purchased power and cost of natural gas sold | $ | (2,700 | ) | $ | 1,162 |
|  | $ | (2,700 | ) | $ | 1,162 |

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