XML 42 R31.htm IDEA: XBRL DOCUMENT

Risk Management And Derivatives (Tables)

9 Months Ended

Sep. 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:


	September 30, 2023						December 31, 2022
	Notional Amounts (MMBtus)			Maximum Term (months) (a)			Notional Amounts (MMBtus)			Maximum Term (months) (a)
Natural gas futures purchased		1,730,000			6			630,000			3
Natural gas options purchased, net		7,780,000			6			1,790,000			3
Natural gas basis swaps purchased		1,730,000			6			900,000			3
Natural gas over-the-counter swaps, net (b)		5,610,000			24			4,460,000			24
Natural gas physical contracts, net (c)		21,323,455			7			17,864,412			12

(a)

Term reflects the maximum forward period hedged.

(b)

As of September 30, 2023, 2,979,300 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, 2023			December 31, 2022
Derivatives designated as hedges:
Asset derivative instruments:
Current commodity derivatives	Derivative assets, current	$	-		$	118
Noncurrent commodity derivatives	Other assets, non-current		(18	)		198
Liability derivative instruments:
Current commodity derivatives	Derivative liabilities, current		143			(1,703	)
Noncurrent commodity derivatives	Other assets, non-current		(20	)		-
Total derivatives designated as hedges		$	105		$	(1,387	)

Derivatives not designated as hedges:
Asset derivative instruments:
Current commodity derivatives	Derivative assets, current	$	126		$	464
Noncurrent commodity derivatives	Other assets, non-current		18			337
Liability derivative instruments:
Current commodity derivatives	Derivative liabilities, current		(2,336	)		(4,897	)
Noncurrent commodity derivatives	Other deferred credits and other liabilities		2			(18	)
Total derivatives not designated as hedges		$	(2,190	)	$	(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 nine months ended September 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 September 30,							Three Months Ended September 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	$	712		$	712		Interest expense	$	(712	)	$	(712	)
Commodity derivatives		(219	)		2,292		Fuel, purchased power and cost of natural gas sold		(34	)		43
Total	$	493		$	3,004			$	(746	)	$	(669	)


	Nine Months Ended September 30,							Nine Months Ended September 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	$	2,138		$	2,138		Interest expense	$	(2,138	)	$	(2,138	)
Commodity derivatives		1,244			(2,946	)	Fuel, purchased power and cost of natural gas sold		(2,473	)		3,620
Total	$	3,382		$	(808	)		$	(4,611	)	$	1,482

As of September 30, 2023, $3.2 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 nine months ended September 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 September 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
		(in thousands)
Commodity derivatives	Fuel, purchased power and cost of natural gas sold	$	255		$	1,617
		$	255		$	1,617


		Nine Months Ended September 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
		(in thousands)
Commodity derivatives	Fuel, purchased power and cost of natural gas sold	$	(2,445	)	$	2,779
		$	(2,445	)	$	2,779