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Fair Value Measurements | 9 Months Ended
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Sep. 30, 2025
Fair Value Disclosures [Abstract] |
Fair Value Measurements | (8) Fair Value Measurements We use the following fair value hierarchy for determining inputs for our financial instruments. Our assets and liabilities for financial instruments are classified and disclosed in one of the following fair value categories: Level 1 — Unadjusted quoted prices available in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 1 instruments primarily consist of highly liquid and actively traded financial instruments with quoted pricing information on an ongoing basis. Level 2 — Pricing inputs include quoted prices for identical or similar assets and liabilities in active markets other than quoted prices in Level 1, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived principally from, or corroborated by, observable market data by correlation or other means. Level 3 — Pricing inputs are generally less observable from objective sources. These inputs reflect management’s best estimate of fair value using its own assumptions about the assumptions a market participant would use in pricing the asset or liability. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the placement within the fair value hierarchy levels. We record transfers, if necessary, between levels at the end of the reporting period for all of our financial instruments. Transfers into Level 3, if any, occur when significant inputs used to value the derivative instruments become less observable, such as a significant decrease in the frequency and volume in which the instrument is traded, negatively impacting the availability of observable pricing inputs. Transfers out of Level 3, if any, occur when the significant inputs become more observable, such as when the time between the valuation date and the delivery date of a transaction becomes shorter, positively impacting the availability of observable pricing inputs. Recurring Fair Value Measurements Derivatives The commodity contracts for our Utilities segments are valued using the market approach and include forward strip pricing at liquid delivery points, exchange-traded futures, options, basis swaps, and over-the-counter swaps and options (Level 2) for wholesale electric energy and natural gas contracts. For exchange-traded futures, options, and basis swap assets and liabilities, fair value was derived using broker quotes validated by the exchange settlement pricing for the applicable contract. For over-the-counter instruments, the fair value is obtained by utilizing a nationally recognized service that obtains observable inputs to compute the fair value, which we validate by comparing our valuation with the counterparty. The fair value of these swaps includes a credit valuation adjustment based on the credit spreads of the counterparties when we are in an unrealized gain position or on our own credit spread when we are in an unrealized loss position. For additional information, see Note 1 of our Notes to the Consolidated Financial Statements in our 2024 Annual Report on Form 10-K. The following tables set forth, by level within the fair value hierarchy, our gross assets and gross liabilities and related offsetting as permitted by GAAP that were accounted for at fair value on a recurring basis for derivative instruments.
| As of September 30, 2025 |
| Level 1 |  | Level 2 |  | Level 3 |  | Cash Collateral and Counterparty Netting (a) |  | Total |
| (in millions) |
Assets: |  |  |  |  |  |  |  |  |  |
Commodity derivatives - Gas Utilities | $ | — |  | $ | 5.2 |  | $ | — |  | $ | (5.2 | ) | $ | — |
Total | $ | — |  | $ | 5.2 |  | $ | — |  | $ | (5.2 | ) | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |
Commodity derivatives - Gas Utilities | $ | — |  | $ | 8.0 |  | $ | — |  | $ | (2.8 | ) | $ | 5.2 |
Total | $ | — |  | $ | 8.0 |  | $ | — |  | $ | (2.8 | ) | $ | 5.2 |
(a) As of September 30, 2025, $5.2 million of our commodity derivative assets and $2.8 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements.
| As of December 31, 2024 |
| Level 1 |  | Level 2 |  | Level 3 |  | Cash Collateral and Counterparty Netting (a) |  | Total |
| (in millions) |
Assets: |  |  |  |  |  |  |  |  |  |
Commodity derivatives - Gas Utilities | $ | — |  | $ | 2.2 |  | $ | — |  | $ | (2.2 | ) | $ | — |
Total | $ | — |  | $ | 2.2 |  | $ | — |  | $ | (2.2 | ) | $ | — |
Liabilities: |  |  |  |  |  |  |  |  |  |
Commodity derivatives - Gas Utilities | $ | — |  | $ | 4.8 |  | $ | — |  | $ | (0.6 | ) | $ | 4.2 |
Total | $ | — |  | $ | 4.8 |  | $ | — |  | $ | (0.6 | ) | $ | 4.2 |
(a) As of December 31, 2024, $2.2 million of our commodity derivative assets and $0.6 million of our commodity derivative liabilities, as well as related gross collateral amounts, were subject to master netting agreements. Pension and Postretirement Plan Assets Fair value measurements also apply to the valuation of our pension and postretirement plan assets. Current accounting guidance requires employers to annually disclose information about the fair value measurements of their assets of a defined benefit pension or other postretirement plan. The fair value of these assets is presented in Note 13 to the Consolidated Financial Statements included in our 2024 Annual Report on Form 10-K. Other Fair Value Measures The carrying amount of cash and cash equivalents, restricted cash and equivalents, and short-term borrowings approximates fair value due to their liquid or short-term nature. Cash, cash equivalents, and restricted cash are classified in Level 1 in the fair value hierarchy. Notes payable consist of commercial paper borrowings and are not traded on an exchange; therefore, they are classified as Level 2 in the fair value hierarchy. The following table presents the carrying amounts and fair values of financial instruments not recorded at fair value on the Consolidated Balance Sheets as of:
| September 30, 2025 |  | December 31, 2024 |
| Carrying Amount |  | Fair Value |  | Carrying Amount |  | Fair Value |
| (in millions) |
Long-term debt, including current maturities (a) | $ | 4,252.8 |  | $ | 4,180.9 |  | $ | 4,250.2 |  | $ | 4,059.1 |
(a) Long-term debt is valued based on observable inputs available either directly or indirectly for similar liabilities in active markets and therefore is classified in Level 2 in the fair value hierarchy. Carrying amount of long-term debt is net of deferred financing costs.

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- Definition The entire disclosure for derivatives and fair value of assets and liabilities. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
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